ContourGlobal Hydro Cascade CJSC. Rehabilitation of Vorotan Cascade Hydropower Plants. PROCUREMENT DOCUMENT Prequalification of Bidders

Transcription

1 Rehabilitation of Vorotan Cascade Hydropower Plants PROCUREMENT DOCUMENT Prequalification of Bidders 23 June 2016

2 PROCUREMENT DOCUMENT Prequalification of Bidders for the Procurement of Rehabilitation of Vorotan Cascade Hydropower Plants Lot 1A: Generator, Turbines & Auxiliary Systems & Lot 1B: HV-Equipment, Control, Protection & Electrical Auxiliaries Issued on: 30 June 2016 Invitation for Prequalification No.: Vorotan/Rehabilitation/PQ/Lot1A&1B ICB No.: KfW/Vorotan/Rehabilitation/ICB/Lot1A&1B Client:, Yerevan, Republic of Armenia Co-Financing Agency: KfW (German Development Bank) BMZ ID: and Country: Armenia

3 INVITATION FOR PREQUALIFICATION Date: 30 June 2016 Funds No.: BMZ ID & Contract No. KfW/ Vorotan ICB 1. This invitation for Prequalification follows the General Procurement Notice for this project that appeared in Armenian Times (Haykakan Zhamanak) newspaper, and tender.am as well as in Germany Trade and Invest (GTAI) on 01 July The eligibility rules and procedures of KfW will govern the prequalification and the bidding process. 2. is in a process of securing a loan from KfW German Development Bank on behalf of the German Government towards the cost of the Project: Rehabilitation of Vorotan Cascade Hydropower Plants. 3. The Project is subdivided into two main lots: Lot 1A: Lot 1B: Generators, Turbines & Mechanical Auxiliary Systems HV, MV & LV-Equipment, Control, Protection & Electrical Auxiliaries 4. This Invitation for Prequalification is for Selection of EPC Contractor(s) for Lots 1A and 1B for the Rehabilitation of Vorotan Cascade Hydropower Plants, a series of three individual power plants with a total electrical capacity of 405 MW on the Vorotan River in southern Armenia. The Closed Joint Stock Company ContourGlobal Hydro Cascade, (hereinafter referred as the Client") intends to prequalify applicants interested in bidding for the Project. The main items forming the scope of these two Lots are as follows: a) Lot 1A: Replacement/Refurbishment of Generators, Turbines & Mechanical Auxiliary Systems. Refurbishment of five (3 +2) generators in Tatev and Shamb including new excitation systems and AVR; Two (2) new Brushless Excitation systems needed for Spandaryan; Refurbishment of two (2) Francis turbines in Shamb, including design and supply of new runners, complete new wicket gates with regulating mechanism and turbine head covers; Replacement of three (3) Pelton turbine injector sets in Tatev, including design and supply of new power nozzles, needles and jet deflectors; Refurbishment of the servomotors, replacement of all controls, supervisory instrumentation and hydraulic piping of seven (3+2+2) spherical valves in Tatev, Shamb and Spandaryan; Design and supply of four (2 + 2) new turbine governor systems in Shamb and Spandaryan and refurbishment of turbine servomotors, accumulators and drain tanks; Refurbishment of four (2+2) pressure relief valves in Tatev and Spandaryan and replacement of all associated valves and supervisory instrumentation; New Cooling Water Systems in Tatev, Shamb and Spandaryan; New Compressed Air Systems in Shamb; New Drainage System in Shamb and Spandaryan; Overhaul of four (4) intake gates and gantry crane at headrace tunnel in Tatev; New Fire Detection and Fire Fighting system for Tatev, SHAMB and Spandaryan HPPs including Generator Fire Fighting and Main Transformer Deluge systems. b) Lot 1B: Replacement of HV, MV & LV-Equipment, Control, Protection & Electrical Auxiliaries

4 Complete replacement of the plant control systems for the units, for the plant auxiliaries and for the 110 kv and 220 kv switchyards of Tatev, Shamb and Spandaryan; Complete replacement of protection, Telecommunication and Commercial Metering systems in Tatev, Shamb and Spandaryan; New Control & Protection System for Units and Auxiliary Systems in Spandaryan; One (1) new 3-phase, core type, oil immersed generator step-up transformers in Tatev; Delivery of three (2+1) Auxiliary power Transformers for Tatev, four (2+2) Auxiliary Transformers for SHAMB and two (2) Auxiliary transformers for Spandaryan; Replacement of all 110 kv Switchyard equipment in Tatev; Replacement of all 220 kv Switchyard equipment in Shamb, including new design (plus one HV CB as per the s of the Grid operator); Replacement of all 220 kv Switchyard equipment in Spandaryan; Supply of three (3) 12 kv generator switchgears for Tatev and four (2 for Shamb +2 for Spandaryan) 17,5 kv generator Switchgears for SHAMB and Spandaryan including the VTs needed for synchronization; Supply of two (2) new 17.5 kv Generator Circuit Breakers for Shamb including associated CTs and VTs; Replacement of all main 400 VAC Distribution and Power Supply Boards in Tatev, Shamb and Spandaryan; 230 VAC UPS Systems in Tatev, Shamb and Spandaryan; 110 VDC Battery System in Shamb and Tatev; Three (1+1+1) New Emergency Diesel Generator for Tatev, Shamb and Spandaryan; New Video Surveillance System for Tatev, SHAMB and Spandaryan; New On-line Vibration system for Tatev, SHAMB, and Spandaryan; Complete replace all power and control cabling for Tatev, SHAMB and Spandaryan; New HVAC system for Tatev, SHAMB and Spandaryan; Civil refurbishment work of Control Rooms of Tatev, SHAMB and Spandaryan, 220 kv Switchyard equipment foundations in of SHAMB and Spandaryan, area of the Drainage system in SHAMB and Spandaryan, Battery Rooms of Tatev, SHAMB and Spandaryan, etc.; Internal and External Lighting systems in Tatev, SHAMB and Spandaryan; New grounding System in the area of the 220 kv Switchyard in SHAMB and Spandaryan; New mobile Oil Treatment facility for oil processing in Tatev, SHAMB and Spandaryan including two (2) new 80m3 tanks for clean and dirty oil. Applicants interested in bidding for the works described in Section V, Scope of Contract, can choose to submit prequalification application for both Lots 1A and 1B together or for either one of the Lots separately. 5. It is expected that the Invitation for Bids will be issued in August Interested eligible applicants may obtain further information from, and inspect the Prequalification Document at the address given below:, 2/2 Melik - Adamyan street, Yerevan, 0010, Republic of Armenia bilyana.aleksieva@contourglobal.com The Prequalification Document, in the English language, in electronic version may be obtained from the following web address: 6. Applications must be delivered to the address given above on or before August 1, 2016, 11:00h local time in Yerevan. 7. The Client will not be responsible for any costs or expenses incurred by applicants in connection with the preparation or delivery of their pre-qualification applications.

5 8. The Client will notify all applicants in writing of the names of those applicants who have been prequalified. 9. The preparation and the submission of the prequalification document is the responsibility of the applicant and no relief or consideration can be given for errors and omissions.

6 Preface This Prequalification Document (PQD) has been prepared by Fichtner (Project implementation Consultant) and and will follow exclusively KfW s»guidelines for Procurement of Goods, Works and associated Services in Financial Cooperation with Partner Countries«, which can be downloaded at E.pdf.

7 Abbreviations Abbreviations KfW FC ILO BOT ADS APF LIT PEA ELI EXP FIN ICB IFP ITA VC JV PQ PQD QLC SBD SOC DEC KfW German Development Bank Financial Cooperation International Labour Organization Built, Operate and Transfer Section II. Application Data Sheet Section IV. Application Forms Pending Litigation Form Project Executing Agency Eligibility Form Experience Form Financial Data Form International Competitive Bidding Invitation for Prequalification Section I. Instructions to Applicants Vorotan Complex of HPPs CJSC Joint Venture or Consortium Prequalification Prequalification Document Section III. Qualification Criteria Standard Bidding Document Section V. Scope of Contract Declaration of Undertaking Form

8 Glossary Anti-Bribery Laws any applicable Armenian, European Union, UK, and U.S. anticorruption, anti-bribery, anti-terrorism and anti-money laundering and similar laws, including without limitation the U.S. Foreign Corrupt Practices Act, the UK Bribery Act 2010, and the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Applicable Law the laws and any other instruments having the force of law in the Republic of Armenia. Client. Contractor The legal entity that is party to and performs a works contract Corporate Group Joint Venture (or Consortium) Management Contractor A number of legal entities (sister companies) within a Holding Company applying as Contractor. An ad hoc association of firms that pool their resources and skills to undertake a large or complex contract in the role of Contractor, with all firms (partners in the JV or consortium) being legally liable, jointly and severally, for the execution of the contract in the event of a partner s withdrawal. A firm, acting in the role of Contractor, that manages the work of other (sub)contractors, while bearing full responsibility and risk for price, quality, and timely performance of the works contract. Nominated Subcontractor An enterprise selected and retained by the Client to provide a prespecified item in the Bill of Quantities and nominated as subcontractor to the main Contractor for such purpose. Specialist Subcontractors A specialist enterprise engaged for highly specialized processes such as chemical grouting or underwater repair work which cannot be provided by the main Contractor. Prequalification An assessment made by the Client of the appropriate level of experience and capacity of firms expressing interest in undertaking a particular contract before inviting them to bid. Post-qualification An assessment of the appropriate level of experience and capacity of firms made by the Client during the evaluation of bids to ensure that the lowest-evaluated, responsive, eligible bidder is qualified to perform the contract. Works The total work involvement in a construction contract, including the Permanent Works or finished product as specified, and the Temporary Works required by the Contractor for the execution and completion of the contract.

9 Writing For the purpose of this document, any authenticated handwritten, typed, or printed communication, including telex, cable, electronic mail, and facsimile transmission, with proof of receipt when, and in the form, requested by the sender.

10 Summary Description Page No. PART 1. APPLICATION PROCEDURES Section I. Instructions to Applicants (ITA) This section specifies the procedures to be followed by Applicants in the preparation and submission of their Applications for Prequalification (AFP). Information is also provided on opening and evaluation of AFPs. Section I. contains provisions that are to be used without modification. Section II. Application Data Sheet (ADS) This section consists of provisions that are specific to each prequalification and supplement the information or s included in Section I. Instructions to Applicants. Section III. Qualification Criteria (QLC) This section contains the criteria and methods to be used to evaluate applications. Section IV. Application Forms (APF) This section contains the Application Submission Sheet and all the forms required to be submitted with the Application. PART 2. REQUIREMENTS Section V. Scope of Contract (SOC) This section includes a summary description of the scope of contract and additional information on major contract components, major quantities, required construction methods, and the contract implementation period of the Contract subject of this prequalification exercise. Section VI. Client s Anti-Corruption Policy and Anti- Corruption Compliance Guide

11 PART 1 Application Procedures

12 Section I. Instructions to Applicants 1-1 Section I Instructions to Applicants

13 Section I. Instructions to Applicants 1-2 Table of Clauses A General 4 1. Scope of Application 4 2. Source of Funds 4 3. Corrupt Practices 4 4. Eligible Applicants 4 5. Eligible Materials, Equipment and Services 5 B Contents of Prequalification Document 6 6. Sections of the Prequalification Document 6 7. Clarification of Prequalification Document 6 8. Amendment of Prequalification Document 6 C Preparation of Applications 6 9. Cost of Applications Language of Application Documents Comprising the Application Application Submission Sheet Documents Establishing the Eligibility of the Applicant Documents Establishing the Qualifications of the Applicant Signing of the Application and Number of Copies 7 D Submission of Applications Sealing and Marking of Applications Deadline for Submission of Applications Late Applications Opening of Applications 8 E Evaluation of Applications Confidentiality Clarification of Applications Responsive-ness of Applications Margin of Preference Subcontractors 9 F Prequalification of Applicants Evaluation of Applications Client s Right to Accept or Reject Applications Prequalification of Applicants Notification of Prequalification 10

14 Section I. Instructions to Applicants Invitation to Bid Changes in Qualifications of Applicants 11

15 Section I. Instructions to Applicants 1-4 A General 1. Scope of Application 2. Source of Funds 1.1 In connection with the Invitation for Prequalification indicated in Section II, Application Data Sheet (ADS), the Client, as defined in the ADS, issues this Prequalification Document to applicants interested in bidding for the works described in Section V, Scope of Contract. The International Competitive Bidding (ICB) number corresponding to this prequalification, are provided in the ADS. 2.1 The Borrower or Recipient (hereinafter called Borrower ) indicated in the ADS has applied for or received funds from KfW German Development Bank (hereinafter called the "KfW ) towards the cost of the project named in the ADS. The Borrower intends to apply a portion of the funds to eligible payments under the contract resulting from the bidding for which this prequalification is conducted (hereinafter called the Contract ). 2.2 Payments by the KfW will be made only at the request of the Borrower and upon approval by the KfW in accordance with the terms and conditions of the financing agreement between the Borrower and the KfW (hereinafter called the Financing and Loan Agreement), and will be subject in all respects to the terms and conditions of that Loan Agreement. No party other than the Borrower shall derive any rights from the Financing and Loan Agreement or have any claim to the funds. 3. Corrupt Practices 3.1 All parties involved in a procurement process financed under FC must ensure a fair and transparent competition and at least observe those ILO Core Labour Standards that have been ratified by the developing country. This must be documented by a corresponding declaration of undertaking (Form DEC 5) of all parties involved in the bidding process. The declaration of undertaking must be signed in a legally binding manner by duly authorized representatives of the Applicant. Failure to submit this declaration and non-compliance with the s will lead to exclusion from the tender. 3.2 Applicants, their principals, employees, affiliates, agents or representatives (collectively, Associates ) must acknowledge to have read and agree to adhere to the Client s Anti-Corruption Policy and Anti-Corruption Compliance Guide as set forth in Section VI. 3.3 Neither the Applicants nor any of their Associates will, directly or indirectly, make, promise or authorize the making of any Prohibited Payment. 3.4 The Applicants and their Associates shall comply fully with all applicable Anti-Bribery Laws. 3.5 In further pursuance of these policies, the Consultant shall permit and shall cause its agents, Experts, Sub-consultants, sub-contractors, services providers, or suppliers to permit the Client (or its designee) to inspect all accounts, records, and other documents relating to the submission of the Proposal and contract performance (in case of an award), and to have them audited by auditors appointed by the Client. 4. Eligible Applicants 4.1 Applicants may submit applications if none of the following reasons for exclusion apply: participation of an applicant is ruled out by sanctions issued by the UN Security Council (

16 Section I. Instructions to Applicants the EU ( or the German Government (htpp:// The applicant is or was involved as a consultant in the preparation or implementation of the project. The same applies to an enterprise or an individual that is closely connected to the applicant under a company group or a similar business link, or to several enterprises or individuals associated correspondingly. (exception: In BOT projects or turnkey projects a participation of future suppliers or manufacturers may even be desirable); The present project is in conflict with applicant s prior or current obligations to other clients, or other commitments that may place them in a position of being unable to carry out the assignment in the best interest of the Client. failure to submit a declaration of undertaking. The applicant is legally barred from the procurement process in the country of the contracting agency on the grounds of previous violations of regulations on fraud and corruption. The applicant or sub-contractors to be contracted for considerable portions of the contract are enterprises economically intertwined with the contracting agency in the host country and/or statecontrolled enterprises that are not legally or financially independent. Its staff (including Experts and Sub-contractors) has a close business or family relationship with a professional staff of the Client, who are directly or indirectly involved in any part of (i) the preparation of the Terms of Reference for the assignment, (ii) the selection process for the Contract, or (iii) the supervision of the Contract, unless the conflict stemming from this relationship has been resolved in a manner acceptable to the Client throughout the selection process and the execution of the Contract. 4.2 A firm that is under a declaration of ineligibility by the KfW in accordance with ITA Clause 3.1, on the date of submission of the application or thereafter, shall not be considered. 4.3 Government-owned enterprises in the Client s country shall be eligible only if they can establish that they are legally and financially autonomous, and operate under commercial law, and that they are not in any way dependent agencies of the Client. 4.4 Applicants shall acknowledge compliance in accordance with ITA Clause 3.2, 3.3, 3.4, Applicants shall provide such evidence of their continued eligibility satisfactory to the Client, as the Client shall reasonably request. 5. Eligible Materials, Equipment and Services 5.1 The materials, equipment and services to be supplied under the Contract and financed by KfW shall have as their country of origin an eligible country of KfW.

17 Section I. Instructions to Applicants 1-6 B Contents of Prequalification Document 6. Sections of the Prequalification Document 6.1 The Prequalification Document consists of Parts 1 and 2 which include all the sections indicated below, and should be read in conjunction with any Addenda issued in accordance with ITA Clause 8. PART 1 Prequalification Procedures Section I. Instructions to Applicants (ITA) Section II. Application Data Sheet (ADS) Section III. Qualification Criteria (QLC) Section IV. Application Forms (APF) PART 2 Requirements Section V. Scope of Contract Section VI. Anti-Corruption Policy and Anti-Corruption Compliance Guide 6.2 The Invitation for Prequalification issued by the Client is not part of the Prequalification Document. 6.3 The Client accepts no responsibility for the completeness of the Prequalification Document and its addenda unless they were obtained directly from the Client. 6.4 The Applicant is expected to examine all instructions, forms, and terms in the Prequalification Document and to furnish all information or documentation required by the Prequalification Document. 7. Clarification of Prequalification Document 8. Amendment of Prequalification Document 7.1 A prospective Applicant requiring any clarification of the Prequalification Document shall contact the Client in writing at the Client s address indicated in the ADS. The Client will respond in writing to any request for clarification provided that such request is received no later than ten (10) days prior to the deadline for submission of Applications. The Client shall forward copies of his response to all Applicants who have acquired the Prequalification Document directly from the Client including a description of the inquiry but without identifying its source. Should the Client deem it necessary to amend the Prequalification Document as a result of a request for clarification, he shall do so following the procedure under ITA Clause 8 and in accordance with the provisions of Sub-Clause At any time prior to the deadline for submission of Applications, the Client may amend the Prequalification Document by issuing addenda. 8.2 Any addendum issued shall be part of the Prequalification Document and shall be communicated in writing to all who have obtained the Prequalification Document directly from the Client. 8.3 To give prospective Applicants reasonable time in which to take an addendum into account in preparing their Applications, the Client may, at his discretion, extend the deadline for the submission of applications. C Preparation of Applications

18 Section I. Instructions to Applicants Cost of Applications 10. Language of Application 11. Documents Comprising the Application 9.1 The Applicant shall bear all costs associated with the preparation and submission of its application, and the Client shall in no case be responsible or liable for those costs, regardless of the conduct or outcome of the prequalification process The application, as well as all correspondence and documents relating to the prequalification exchanged by the Applicant and the Client, shall be prepared in the English language The Application shall comprise the following: (a) Application Submission Sheet, in accordance with ITA Clause 12; (b) written confirmation authorizing the signatory of the application to commit the Applicant, in accordance with ITA Sub-Clause 15.3; (c) documentary evidence establishing the Applicant s eligibility to prequalify, in accordance with ITA Clause 13; (d) documentary evidence establishing the Applicant s qualifications, in accordance with ITA Clause 14; and (e) any other document required as specified in the ADS. 12. Application Submission Sheet 13. Documents Establishing the Eligibility of the Applicant 14. Documents Establishing the Qualifications of the Applicant 12.1 The Applicant shall prepare an Application Submission Sheet using the form furnished in Section IV, Application Forms. This form must be completed without any alteration to its format To establish his eligibility in accordance with ITA Clause 4, the Applicant shall complete the eligibility declarations in the Application Submission Sheet and Forms ELI 1.1 and 1.2, included in Section IV, Application Forms To establish his qualifications to perform the contract in accordance with Section III, Qualification Criteria, the Applicant shall provide the information requested in the corresponding Information Sheets included in Section IV, Application Forms. 15. Signing of the Application and Number of Copies 15.1 The Applicant shall prepare one original and one electronic copy of the documents comprising the application as described in ITA Clause 11. The original of the application shall be typed and shall be signed by a person duly authorized to sign on behalf of the Applicant as specified in the ADS The Applicant shall not submit paper copies of the signed original application. In the event of any discrepancy between the original and the electronic copy, the original shall prevail.

19 Section I. Instructions to Applicants The s regarding the legal instrument evidencing the authorization to represent and sign on behalf of the Applicant shall be as specified in the ADS. Applications submitted by an existing or intended JV shall include an undertaking signed by all partners (a) stating that all partners shall be jointly and severally liable, and (b) nominating a Representative who shall have the authority to conduct all business for and on behalf of any and all the partners of the JV during the prequalification process and, in the event the JV is prequalified, during the bidding process, and in the event the JV is awarded the Contract, during contract execution. D Submission of Applications 16. Sealing and Marking of Applications 16.1 The Applicant shall enclose the original and the electronic copy of the application in a sealed envelope which shall (a) bear the name and address of the Applicant; (b) be addressed to the Client, in accordance with ITA 17.1; and (c) bear the specific identification of this prequalification process indicated in the ADS 1.1 and ADS 2.1 (the name of the Project) If the envelope is not sealed and marked as required, the Client will assume no responsibility for the misplacement of the application. 17. Deadline for Submission of Applications 17.1 Applications shall be received by the Client at the address and no later than the deadline indicated in the ADS The Client may, at his discretion, extend the deadline for the submission of Applications by amending the Prequalification Document in accordance with ITA Clause 8, in which case all rights and obligations of the Client and the Applicants subject to the previous deadline shall thereafter be subject to the deadline as extended. 18. Late Applications 19. Opening of Applications 18.1 Applications will be generally rejected if they are received after the closing date The Client shall prepare a record of the opening of Applications that shall include, as a minimum, the name of the Applicant. A copy of the record shall be distributed to all Applicants. E Evaluation of Applications 20. Confidentiality 20.1 Information relating to the evaluation of Applications, and recommendation for prequalification, shall not be disclosed to Applicants or any other persons not officially concerned with such process until the notification of prequalification is made to all Applicants.

20 Section I. Instructions to Applicants After opening the prequalification documents until preparation of the short-list of the qualified bidders, no communication of any type shall be entertained unless called for by PEA. 21. Clarification of Applications 21.1 To assist in the evaluation of Applications, the Client may, at his discretion, ask any Applicant for a clarification of his application which shall be submitted within a stated reasonable period of time. Any request for clarification and all clarifications shall be in writing If an Applicant does not provide clarifications of the information requested by the date and time set in the Client s request for clarification, his Application may be rejected. 22. Responsiveness of Applications 22.1 The Client may reject any Application which is not responsive to the s of the Prequalification Document. 23. Margin of Preference 23.1 If so indicated in the ADS, a margin of preference shall apply in the bidding process resulting from this prequalification. 24. Subcontractors 24.1 Applicants shall state in the Application Submission Sheet whether they intend to subcontract parts or elements of the Works If an Applicant intends to subcontract any of the key activities listed in Section III, Qualification Criteria, Criteria 4.2(b), then such key activities and the proposed subcontractors (Specialist Subcontractors) shall be clearly identified in Section IV, Application Forms, Forms ELI- 1.2 and EXP-4.2(b). Such Specialist Subcontractor(s) shall meet the corresponding qualification s specified in Section III, Qualification Criteria. At the time of bidding, the Bidder shall use in his bid only Specialist Subcontractor(s) prequalified during the prequalification exercise Unless otherwise specified in the ADS, the Client does not intend to execute certain specific parts of the Works by subcontractors selected in advance by the Client (Nominated Subcontractors).

21 Section I. Instructions to Applicants 1-10 F Prequalification of Applicants 25. Evaluation of Applications 25.1 The Client shall use the criteria and methods defined in Section III, Qualification Criteria to evaluate the qualifications of the Applicants and proposed subcontractors Only the qualifications of proposed subcontractors that have been identified in the Application pursuant to ITA 24.2 will be considered in the evaluation of an Applicant. However, the general experience and financial resources of subcontractors may not be added to those of the Applicant for purposes of prequalification of the Applicant Unless otherwise indicated in the ADS, this prequalification shall be for a single contract. 26. Client s Right to Accept or Reject Applications 27. Prequalification of Applicants 28. Notification of Prequalification 26.1 The Client reserves the right to accept or reject any Application, and to annul the prequalification process and reject all applications at any time, without thereby incurring any liability to Applicants 27.1 All Applicants, including their proposed subcontractors, whose applications have been determined to be substantially responsive to the s of the Prequalification Document and who have met or exceeded the specified criteria shall be prequalified by the Client Once the Client has completed the evaluation of the Applications and received KfW s non-objection, he shall notify all Applicants in writing of the names of those applicants who have been prequalified. 29. Invitation to Bid 29.1 Promptly after the notification of the results of the prequalification, the Client shall invite bids (technical and financial proposals) from all the Applicants that have been prequalified. If more than eight (8) applicants have been qualified, five (5) applicants for each lot and (5) applicants for both lots shall be selected among those by the scoring point method as stated in Section III Bidders are required to provide bid security in the form of a demand guarantee or other security acceptable to the Client for an amount as specified in the bidding document A qualified firm or a member of a qualified joint venture may participate in only one bid for the contract. If a firm submits more than one bid, singly or in joint venture, all bids including that firm will be rejected. However, this does not limit the inclusion of the same subcontractor, not otherwise participating as a Bidder, in more than one bid A firm and any of its affiliates (that directly or indirectly control, are controlled by or are under common control with that firm) may be prequalified either individually, as joint venture or as a sub-contractor among them for the same contract. However, only one prequalified applicant will be allowed to bid for the same contract. All bids submitted in violation of this procedure will be rejected.

22 Section I. Instructions to Applicants Changes in Qualifications of Applicants 30.1 Any change in the qualification status of an Applicant after being prequalified in accordance with ITA Clause 27 shall be subject to the written approval of the Client and the KfW. Any such change shall be submitted to the Client not later than fourteen (14) days after the date of the Invitation to Bid. Such approval shall be denied if, as a consequence of any change, (a) the prequalified Applicant, after the change, no longer substantially meets the qualification criteria set forth in Section III, Qualification Criteria; or (b) a new partner that had not been prequalified as an Applicant or a Specialist Subcontractor as per ITA 24.2 is added to a prequalified Applicant.

23 Section II. Application Data Sheet 2-1 Section II Application Data Sheet

24 Section II. Application Data Sheet 2-2 General ITA 1.1 The identification of the Invitation for Prequalification is: Vorotan/Rehabilitation/PQ/Lot1A&1B ITA 1.1 The name of the Project Executing Agency (PEA) and Employer for this Contract is: ContourGlobal Hydro Cascade CJSC 2/2 Melik Adamyan street, Yerevan, 0010, Republic of Armenia ITA 1.1 ITA 1.1 The names and Identification of the contracts are: Lot 1A: Generators, Turbines & Mechanical Auxiliary Systems Lot 1B: HV, MV, LV-Equipment, Control, Protection & Electrical Auxiliaries The name and identification number of the ICB is: KfW / Vorotan /Rehabilitation/ICB/Lot1A&1B ITA 2.1 The source of the funds (Financier) is: KfW German Development Bank, Frankfurt, Germany ITA 2.1 The name of the Project is: Rehabilitation of Vorotan Cascade HPPs Lot 1A: Generator, Turbines & Auxiliary Systems & Lot 1B: HV-Equipment, Control, Protection & Electrical Auxiliaries

25 Section II. Application Data Sheet 2-3 Contents of the Prequalification Document ITA 7.1 For clarification purposes only, the Client s address is: 2/2 Melik Adamyan str. Yerevan, 0010 Republic of Armenia Request for clarification in writing shall be communicated to: Attention: Mrs. Bilyana Aleksieva Number and Street: 2/2 Melik Adamyan str. City: Yerevan, 0010 Country: Republic of Armenia Electronic mail address: bilyana.aleksieva@contourglobal.com with copy to: bruno.gigliotti@contourglobal.com and and copy to: Harald.von-Bueren@fichtner.de FICHTNER GmbH & Co. KG Sarweystrasse 3, Stuttgart Germany HARALD VON BUEREN RENEWABLE ENERGIES & ENVIRONMENT Preparation of Applications ITA 11.1 (e) The Applicant shall submit with his application the following additional documents: Declaration of intent in the application submission sheet for which lot(s) the firm intends to prequalify for the Selection of EPC Contractor(s) for Lots 1A and 1B for the Rehabilitation of Vorotan Cascade Hydropower Plants. At least three (3) user certificates as EPC turnkey contractor during last ten (10) years, with certificate proving that the electro-mechanical and electrotechnical equipment installed is in satisfactory operation. Summary reference list showing number and size of scope of supply, similar to the project, as manufacturer of the above equipment and/or as turnkey contractor during the last ten (10) years. Company s profile and organization. Draft of the intended JV agreement in case JV is applicable. In case JV is applicable, the Declaration of Undertaking (Section IV) has to be filled in and signed by each of the JV partners. Acknowledgment of acceptance and compliance with CG Anti-corruption policy and Anti-corruption policy compliance guide

26 Section II. Application Data Sheet 2-4 ITA 15.2 ITA 15.3 In addition to the original, one (1) electronic copy to be submitted with the application, whereas all tables and forms to be filled in shall be in an editable form (MS Office) for evaluation and reporting purposes. The s regarding the legal instrument evidencing the authorization to represent and sign on behalf of the Applicant shall be: Power of Attorney. Submission of Applications ITA 17.1 For application submission purposes only, the Client s address is as below. The Prequalification Application Documents have to be submitted as follows: Attention: Ara Hovsepyan Number and Street: 2/2 Melik Adamyan Street City: 0010 Yerevan Country: Republic of Armenia The deadline for application submission is: Date: August 1, 2016 Time: 11:00 am local time; (Yerevan, Republic of Armenia) Evaluation of Applications ITA 23.1 ITA 24.3 Not applicable. Not applicable. Prequalification of Applicants ITA 25.3 As stipulated in ITA 1.1, this prequalification shall be for the Contracts: Lot 1A: Generators, Turbines & Mechanical Auxiliary Systems Lot 1B: HV, MV, LV-Equipment, Control, Protection & Electrical Auxiliaries

27 Section III. Qualification Criteria 3-1 Section III Qualification Criteria

28 Section III. Qualification Criteria 3-2 Table of Contents 1 Eligibility Conflict of Interest KfW Eligibility Anti-Corruption Government-owned Entity 3 2 Pending Litigation Litigation Historical Contract Non-Performance 4 3 Financial Situation Historical Financial Performance Average Annual Turnover 6 4 Experience General Construction/Manufacturing Experience 7 Specific Construction Experience Contracts of Similar Size and Nature Error! Bookmark not defined. 4.3 Specific Construction Experience 10 5 Evaluation Method Evaluation Procedure Stage 1: Preliminary Screening Stage 2: Detailed Evaluation 12

29 Section III. Qualification Criteria Eligibility Criteria Compliance Requirements Documents Requirement Single Entity Joint Venture or Corporate Group All Partners Combined Each Partner or Contracting Entity One Partner Submission Requirements No conflicts of interest in accordance with ITA Sub- Clause Conflict of Interest existing or intended JV not applicable Application Submission Sheet 1.2 KfW Eligibility Not having been declared ineligible by KFW, as described in ITA Sub-Clause 4.2. existing or intended JV not applicable Application Submission Sheet Acknowledgment and acceptance of Client s Anti- Corruption Policy and Anti- Corruption Compliance Guide as described in ITA Sub-Clause Anti-Corruption existing or intended JV not applicable Application Submission Sheet Applicant required to meet conditions of ITA Sub-Clause Government-owned Entity not applicable Forms ELI -1.1, ELI -1.2 with attachments

30 Section III. Qualification Criteria Pending Litigation Criteria Compliance Requirements Documents Requirement Single Entity Joint Venture or Corporate Group All Partners Combined Each Partner or Contracting Entity One Partner Submission Requirements 2.1 Litigation All pending litigation shall be treated as resolved against the Applicant and so shall in total not represent more than fifty (40) percent of the Applicant s net worth. by itself or as partner to past or existing JV not applicable by itself or as partner to past or existing JV not applicable Form LIT - 1 No consistent history of contract non-performance against the Applicant since 1 st January The Applicant shall provide accurate information on the related Form LIT-2 about any non-performance of completed or ongoing contracts under its execution over the last ten years. A consistent history of contract non-performance by the Applicant or any member of a joint venture may result in failure of the application. 2.2 Historical Contract Non-Performance by itself or as partner to past or existing JV not applicable by itself or as partner to past or existing JV not applicable Form LIT Failure to provide full disclose on any past or ongoing contract non-performance over the last 10-years may result in failure of the application.

31 Section III. Qualification Criteria Financial Situation Criteria Compliance Requirements Documents Requirement Single Entity Joint Venture or Corporate Group Each Partner All Partners or One Combined Contracting Partner Entity Submission Requirements Submission of consolidated balance sheets and income statements or, if not required by the law of the applicant s country, other financial statements acceptable to the Client, for the last three (3) years to demonstrate the current soundness of the applicants financial position and its prospective long-term profitability. As a minimum, an Applicant s net worth calculated as the difference between total assets and total liabilities should be positive. The applicant should demonstrate to have a ratio of current assets/current liabilities equal or better 0.9. The Applicant should demonstrate that he has access to, or has available liquid assets, unencumbered real assets, lines of credit and other financial means sufficient to meet the cash flow, at least EUR 20 million to be met by the single applicant or a joint venture from working capital net of current contract commitments based on submitted audited financial statements or by confirmed letter of credit from reputable bank, or by a combination of both. 3.1 Historical Financial Performance not applicable not applicable Form FIN with attachments The financial information provided by an Applicant should be reviewed in its entirety to allow a truly informed judgment, and the pass fail decision on the financial position of the Applicant should be given on this basis. Any abnormal features which may lead to financial problems should alert the Client to seek expert professional advice for further review and interpretation.

32 Section III. Qualification Criteria 3-6 Criteria Compliance Requirements Documents Requirement Single Entity Joint Venture or Corporate Group Each Partner All Partners or One Combined Contracting Partner Entity Submission Requirements Minimum average annual turnover of EUR 75 million based on total certified payments received for contracts completed, within the last three (3) years. 3.2 Average Annual Turnover 25 % of the 40 % of the Form FIN - 3.2

33 Section III. Qualification Criteria Experience Criteria Compliance Requirements Documents Requirement Single Entity Joint Venture or Corporate Group All Partners Combined Each Partner or Contracting Entity One Partner Submission Requirements 4.1 General Construction/Manufacturing Experience Experience under construction and manufacturing contracts (at least 5) outside the country where the applicant is based, of which at least 1 shall be in the region (Caucasus and/or Eastern Europe), in the role of contractor, subcontractor, or management contractor in the last ten (10) years prior to the applications submission deadline. not applicable not applicable Form EXP-4.1

34 Section III. Qualification Criteria 3-8 Criteria Compliance Requirements Documents Requirement Single Entity Joint Venture or Corporate Group All Partners Combined Each Partner or Contracting Entity One Partner Submission Requirements 4.2 Specific Construction Experience (a1) Contracts of similar Size and Nature as Lot 1A Participation as contractor, management contractor, or subcontractor, in at least five (5) contracts within the last ten (10) years each with a value of at least EUR fifteen (15) million that have been successfully or are substantially completed outside that country where the applicant is based and at least 1 shall be in the region (Caucasus and/or Eastern Europe), and that are similar to the proposed works. The similarity shall be based on the physical size, complexity, climate conditions, methods, technology, and other characteristics as described in Section V, Scope of Contract. not applicable Must meet 40% of the >= 2 contracts Form EXP 4.2 (a2) Contracts of similar Size and Nature as Lot 1B Participation as contractor, management contractor, or subcontractor, in at least five (5) contracts within the last ten (10) years each with a value of at least EUR ten (10) million that have been successfully or are substantially completed outside that country where the applicant is based and at least 1 shall be in the region (Caucasus and/or Eastern Europe), and that are similar to the proposed works. The similarity shall be based on the physical size, complexity, climate conditions, methods, technology, and other characteristics as described in Section V, Scope of Contract. not applicable Must meet 40% of the >= 2 contracts Form EXP 4.2

35 Section III. Qualification Criteria 3-9 (a3) Contracts of Similar Size and Nature as Lot 1A & 1B Combined Participation as contractor, management contractor, or subcontractor, in at least five (5) contracts within the last ten (10) years each with a value of at least EUR twenty five (25) million that have been successfully or are substantially completed outside that country where the applicant is based and at least 1 shall be in the region (Caucasus and/or Eastern Europe), and that are similar to the proposed works. The similarity shall be based on the physical size, complexity, climate conditions, methods, technology, and other characteristics as described in Section V, Scope of Contract. not applicable Must meet 40% of the >= 2 contracts Form EXP 4.2

36 Section III. Qualification Criteria 3-10 Criteria Compliance Requirements Documents Requirement Single Entity Joint Venture or Corporate Group All Partners Combined Each Partner or Contracting Entity One Partner Submission Requirements 4.3 Specific Construction Experience (b1) Construction Experience in Key Activities similar to Lot 1A For the above or other contracts executed during the period stipulated in 4.2 (a1) above, a minimum construction experience in the following key activities: Design, manufacturing and workshop-testing at a factory for at least 10 years and for at least 7 projects. Turnkey Projects in the last 10 years and for at least 5 projects. At least 1 of them shall be outside that country where the applicant is based and at least 1 shall be in the region (Caucasus and/or Eastern Europe). Site Management of installation and commissioning in the last 10 years and for at least 5 projects. At least 1 of them shall be outside that country where the applicant is based and at least 1 shall be in the region (Caucasus and/or Eastern Europe). all s all s not applicable Must meet 40% of the Form EXP-4.3 (b2) Construction Experience in Key Activities similar to Lot 1B For the above or other contracts executed during the period stipulated in 4.2 (a2) above, a minimum construction experience in the following key activities: Design, manufacturing and workshop-testing at a factory for at least 10 years and for at least 7 projects. Turnkey Projects in the last 10 years and for at least 5 projects. all s all s not applicable Must meet 40% of the Form EXP-4.3

37 Section III. Qualification Criteria 3-11 At least 1 of them shall be outside that country where the applicant is based and at least 1 shall be in the region (Caucasus and/or Eastern Europe). Site Management of installation and commissioning in the last 10 years and for at least 5 projects. At least 1 of them shall be outside that country where the applicant is based and at least 1 shall be in the region (Caucasus and/or Eastern Europe). (b3) Construction Experience in Key Activities similar to Lot 1A & 1B For the above or other contracts executed during the period stipulated in 4.2 (a3) above, a minimum construction experience in the following key activities: Design, manufacturing and workshop-testing at a factory for at least 10 years and for at least 7 projects. Turnkey Projects in the last 10 years and for at least 5 projects. At least 1 of them shall be outside that country where the applicant is based and at least 1 shall be in the region (Caucasus and/or Eastern Europe). Site Management of installation and commissioning in the last 10 years and for at least 5 projects. At least 1 of them shall be outside that country where the applicant is based and at least 1 shall be in the region (Caucasus and/or Eastern Europe). all s all s not applicable Must meet 40% of the Form EXP-4.2

38 Section III. Qualification Criteria Evaluation Method 5.1 Evaluation Procedure Prequalification evaluation will be carried out in the following two (2) stages: Stage 1: Preliminary Screening Stage 2: Detailed Evaluation Prequalification evaluation will be based on the Applicant's financial position and experience as Contractor for the specified scope of works for which the Applicant intends to prequalify, demonstrated by the Applicant's responses in Section IV ''Application Forms" and other documents requested to be submitted in Pre-Qualification Document. The prequalification evaluation will be done lot-wise. Applicant which intends to prequalify for the combination of lots 1A and 1B will receive an extra bonus in the detailed evaluation if more than 5 applicants for both lots have passed the general qualification see Stage 1: Preliminary Screening In Stage 1, the pass-or-fail criteria method shall be applied whether the submitted documents and its format are in conformity with the in Prequalification Document. In case of no submission or missing of any of required documents deemed as important, the Client reserves the right to request additional clarifications/proofs. The Adequate Financial Capacity to be demonstrated under clause 3.1 forms fail/pass criteria. 5.3 Stage 2: Detailed Evaluation The submitted documents are examined in order to decide whether the Applicants are capable to deliver the required goods (lot-wise or combined lots) and works properly. The minimum criteria defined in the documents (In Section III, number of comparable project, experience, annual turnover i.e.) are preconditions for being invited to submit the bids following the qualification. If more than fivecandidates (the maximum number: five (5) applicants for each lot and (5) applicants for both lots) fulfil the s, the candidates should be selected according to the number of points scored whereby the following criteria shall be examined. 1. Adequate Financial Capacity 20 points 2. Experience in the Execution of Comparable Project 40 points experience in handing similar projects (planning, manufacturing, constructing including training measures). 80% experience under difficult working conditions similar to those in Armenia, experiences in developing and transition countries 20% 3. Suitability for this specific project 40 points assessment of available technical knowledge or expertise within the company and specific to this project. 50% appropriate facility and equipment in sufficient qualities 50% 4. Bonus for a combined prequalification for lots 1A and 1B 10 points