TO WHOM IT MAY CONCERN. Dear Sirs:

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1 TO WHOM IT MAY CONCERN Project Monitoring Unit Leningrad Oblast Environmental Investment Programme Project Office: 10 th Line Street, 3 (in the premises of JSC LOCS, 1 st floor) St. Petersburg Russian Federation Tel/Fax: Re: Leningrad Oblast Environmental Investment Programme Invitation for Tender: Supply of Equipment and Materials for Water/Wastewater System Rehabilitation to Pikalevo Vodokanal Date 16 November Dear Sirs: The Leningrad Oblast Environmental Investment Programme is to improve the water supply and environmental services in the selected cities of the Leningrad Oblast through implementation of carefully selected investment projects aimed at halting the deterioration of facilities and the building of the administrative and organisational capacities with the local administrations and the Vodokanals. The Programme is co-funded by the Nordic Investment Bank (NIB) through a loan facility extended to the four selected Vodokanals, by the Leningrad Oblast Government and the selected city administration and Vodokanals, and by bilateral donors, such as Danish Environmental Protection Agency (DEPA), Finish Ministry of the Environment (FMoE), Swedish International Cooperation and Development (SIDA), and the Nordic Environmental Dimension Partnership (NDEP). The Programme financiers have established the Programme Monitoring Unit (PMU), which is to monitor the Programme implementation and to coordinate the activities of the stakeholders involved. The PMU is also charged with the review and verification of the tender documents prepared by the Project Implementation Units (PIUs) in each of the participating cities (Gatchina, Kirovsk, Pikalevo and Tikhvin). Presently, the Pikalevo PIU is conducting a tender for the supply of equipment and materials for water/wastewater system rehabilitation to the Pikalevo Vodokanal, that will be funded from the NDEPprovided grant. Please see the Invitation for Tenders attached to this letter for your information. By means of this letter, we would like to draw your attention to this tender as we hope that your firm would be interested to offer its services for the completion of this supply. Sincerely, Ulian Bilotkach PMU Team Leader

2 INVITATION FOR TENDERS Page 1 of 5 RUSSIAN FEDERATION Leningrad Oblast Environmental Investment programme Water and Wastewater Services in Pikalevo INVITATION FOR TENDERS II/S/NDEP The Nordic Investment Bank (NIB), Nordic Dimension Environmental Partnership (NDEP), the Nordic Environment Finance Corporation (NEFCO), and the Finnish Ministry of the Environment (FMoE) are providing financing for the implementation of environmental projects in the town of Pikalevo in Leningrad Oblast, Russian Federation. The proposed projects have been developed within the framework of the so-called Nordic Initiative, aiming at development of an affordable priority enhancement and investment programme. Municipal Unitary Enterprise (MUE) Vodokanal of Pikalevo hereinafter referred to as the Purchaser, intends using part of the proceeds of a grant from NDEP towards the cost of supply of equipment and materials for rehabilitation of water distribution and sewer system. The Purchaser now invites sealed tenders from suppliers for the following contract to be funded from part of the proceeds of the grant: Lot 1 Supply of mechanical and electrical equipment for rehabilitation of the water intake: - water pumps with frequency converters (3); - valves (21); - power and distribution board (1); - internal piping of the piping station (~50 m) Incidental Services, including: - Review of the Purchaser s detail design of the 2 nd lift pumping station rehabilitation and making adjustments, if necessary, to ensure its compliance with the supplied equipment 1 - Supervision of on-site installation and start-up of the supplied Goods - Operators training Lot 2 Supply of mechanical equipment for reconstruction of house connections and valves in distribution system 1 The adjustments of the detail design shall be done by the Supplier, agreed with the design company which has worked out the detail design documents (Rost-Yarvi, St. Petersburg), and approved by the Purchaser. The Purchaser will provide the Supplier with detail design documents in the appropriate format (AutoCAD 2004).

3 INVITATION FOR TENDERS Page 2 of 5 - valves with fittings and accessories (248) - pipes (~4250 m) - manholes (228) and heavy covers (263) - water meter units (213) Lot 3 Supply of pipes and valves for rehabilitation of the water distribution system - pipes, valves, fitting and accessories, manholes for rehabilitation of the water distribution system (~4600 m) Lot 4 Supply of pipes and manholes for rehabilitation of the sewer system - pipes, fitting and accessories, manholes for rehabilitation of the sewer system (~950 m) Tenders are invited for one or more lots. Each lot must be priced separately. Tenders for more than one lot may offer discounts and such discounts will be considered in the comparison of tenders. Tendering for contracts to be funded from part of the proceeds of the NDEP grant is open on equal terms to the firms registered in the NDEP member countries (EU member countries, countries of EBRD operation 2, Russian Federation, Canada and Norway). To be qualified for the award of a contract, tenderers must satisfy the following minimum criteria: (a) the tenderer has the financial, technical and production capability and capacity necessary to perform the Contract. The tenderer s annual turnover in each of the previous three years was at least three (3) times more that the tender price proposed by the tenderer, and the annual profit was positive in these years; (b) the tenderer is not bankrupt or under bankruptcy procedures according to the national legislation or regulations; (c) the tenderer has satisfactorily supplied similar goods and services to other purchasers in the countries of Central and Eastern Europe and completed at least five (5) similar contracts in the recent five years; (d) in the case of a tenderer offering to supply goods under the Contract which the tenderer does not manufacture or otherwise produce, the tenderer has been duly authorised by the goods manufacturer or producer to supply the goods in the Purchaser s country; (e) the tenderer or its agent will be able to carry out the supplier s maintenance, repair and spare parts stocking obligations prescribed in these tender documents; and 2 Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Former Yugoslav Republic of Macedonia, Georgia, Hungary, Kazakhstan, Latvia, Lithuania, Moldova, Poland, Republic of Kyrgyz, Romania, Russian Federation, Serbia & Montenegro, Slovak Republic, Slovenia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan

4 INVITATION FOR TENDERS Page 3 of 5 (f) the tenderer is able to provide all necessary certificates, permits and licences required by the authorities of the Russian Federation related to the scope of supply. Tender documents, upon payment of a non-refundable fee of EUR 200 or equivalent in Russian roubles, will be sent in digital format (.pdf file) and/or may be obtained from the office at the address below. The payment is to be deposited at the Purchaser s bank account: Rouble bank account Recipient: INN/KPP / Recipient account No.: Recipient bank: Savings Bank of the Russian Federation Tikhvin office No.1882 /1074 Correspondence bank account: Savings Bank of Russian Federation Severo-Zapadny Office, St.Petersburg BIC of the bank Euro bank account Recipient: INN/KPP / SWIFT code: SABRRU2PXXX Recipient bank: Savings Bank of Russian Federation Severo-Zapadny Office, St.Petersburg Transit account No.: If requested, the documents will be promptly despatched by courier, but no liability can be accepted for loss or late delivery. All tenders must be accompanied by a tender security in the amount of one per cent (1%) of the tender amount written in the Tender Form. The Purchaser will arrange a pre-bid meeting on 13 December at o clock Moscow time in the Purchaser s office at the address below. Prospective tenderers are requested to notify the Purchaser if they intend to participate in the pre-bid meeting. The notifications shall be sent before 10 December by at the following address: mkkppik@lens.spb.ru. Tenders must be delivered to the office at the address below on or before 30 January 2008, o clock Moscow time, at which time they will be opened in the presence of those tenderers representatives who choose to attend. A register of potential tenderers who have purchased the tender documents may be inspected at the address below.

5 INVITATION FOR TENDERS Page 4 of 5 Prospective tenderers may obtain further information from, and inspect and acquire the tender documents at, the following office: Zavodskaya Street 16, Pikalevo, Leningrad Oblast, Boksitogorsky Rayon, Russian Federation Contact person: Shevalskaya Irina Vyatcheslavovna Tel: Fax: mkkppik@lens.spb.ru Date: