WORKS PROCUREMENT NOTICE

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1 Public document to be completed by the Contracting Authority Compulsory use for works tender procedures of EUR 5,000,000 or more WORKS PROCUREMENT NOTICE Contract title: Rehabilitation of the Water Supply System in Maramures County <Location North West Development Region, Romania > 1. Publication reference EuropeAid/121431/D/W/RO 2. Procedure International Open Tender 3. Programme Phare Financing Phare 2003 Investment in Economic and Social Cohesion RO 2003/ Contracting authority The Ministry of European Integration of Romania CONTRACT SPECIFICATIONS 6. Description of the contract The project s aim is the improvement in water quality and capacity assurance of the drinking water distribution and transport system in Baia Sprie, Borsa, Seini, Sighetu Marmatiei, Somcuta Mare, Targul Lapus, Tautii Magherus and Viseu de Sus towns. The scope of proposed work is summarised below: installation of approximately 100 km of distribution and transmission pipework incorporating 567 valve chambers and 743 fire hydrants; construct approximately 5,887 new consumer service connections and installation of approximately 7,238 consumer meters; rehabilitation 3 wells at one wellfield in Viseu de Sus town; rehabilitation of two pumping stations in Sighetu Marmatiei (1 No.) and Viseu de Sus (1 No.) and construction of one new pumping station in Tautii Magheraus (1No.);

2 construction of new chlorination station in Somcuta Mare (1 No.) and rehabilitation of chlorination station in Sighetu Marmatiei (1 No.); construction of one new reservoir in Tautii Magheraus. The project will be tendered based on FIDIC Conditions of Contract for Construction Red Book, Number and titles of Lots NA TERMS OF PARTICIPATION 8. Eligibility and rule of origin Participation is open on equal terms to all natural and legal persons [participating either individually or in a grouping (consortium) of tenderers] of the Member States of the European Union and the countries and territories of the regions covered and/or authorised by the Regulation or other specific instruments applicable to the programme under which the contract is financed (see also heading 21 below). All goods supplied under this contract must originate in these countries. 9. Grounds for exclusion Tenderers must submit a statement to the effect that they are not in any of the situations listed in point of the Practical guide to contract procedures financed by the general budget of the European Communities in the context of external actions. In addition Tenderers (either sole tenderer or partner in a Jointventure/Consortium) are not eligible to participate in the tender if they have been declared to be in serious breach of the contract by the Contracting Authority for failure to comply with their contractual obligations, in connection with an earlier procurement procedure or other grant award procedure financed by the community budget. 10. Number of tenders Tenderers (including firms within the same legal group, other members of the same consortium, and sub-contractors) may submit only one tender. Tenderers may not submit a tender for a variant solution in addition to their tender for the works required in the tender dossier. Any tenderer may state in its tender that it would offer a discount in the event that its tender is accepted.

3 11. Tender guarantee Tenders must provide a tender guarantee of EURO 110,000 when submitting their tender. This guarantee will be released to unsuccessful tenders once the tender procedure has been completed and to the successful tenderer(s) upon signature of the contract by all parties. 12. Performance guarantee The successful tender will be asked to provide a performance guarantee of 10% of the amount of the contract in Euro at the signing of the contract. This guarantee must be provided no later than 30 days after the tenderer receives the contract signed by the Contracting Authority. If the selected tenderer fails to provide such a guarantee within this period, the contract will be void and a new contract may be drawn up and sent to the tenderer which has submitted the second best admissible tender. 13. Information meeting and/or site visit One information meeting will be held on 12 August, 2005, 10:00 hours local time at: Maramures County Council Address: Baia Mare, 46, Str. Gh. Sincai Tel: Fax: According with clause 7 from Instruction to Tenderers, tenderers are strongly advised to inspect the site of works during period 02 August 12 August, For confirming the participation, an information fax shall be sent to MEI at Tender validity Tenders must remain valid for a period of 90 days after the deadline for submission of tenders. 15. Period of execution Time for Completion of the Works shall be 18 months after the signature of the Contract by all parties. The defects Notification Period shall be 365 days. SELECTION AND AWARD CRITERIA

4 16. Selection criteria The minimum selection criteria for each Tenderer are as follows: 1. He must be a registered firm or natural person legally capable of carrying out the specified works. 2. The Tenderer or, in case of a joint-venture, the leading partner of the joint venture must satisfy the minimum qualifications required below: 3. The average annual turnovers in the past 3 years must be of at least equivalent to 14.0 million euro. 4. If he is a sole Tenderer (i.e. he may have subcontractors, but he is not a partner in a Joint Venture/ Consortium for the purposes of the Tender) he must carry out at least 70 % of the Contract Works by his own means, defined as meaning that he must have the equipment, materials, human and financial resources necessary to enable him to carry out this percentage of the Contract. 5. If he is a sole Tenderer, or, in case of a joint-venture, if he is the leading partner of the joint venture, he also must have access to credit adequate to assure the required cash flow for the duration of the Contract. In any case the credit amount should exceed 2.8 million euro or the equivalent in local currency, must be provided by a recognized bank and must be designated specifically for the project. 6. If he is the lead partner in a joint venture/consortium, he must have the ability to carry out at least 50% of the contract works by his own means, as defined in Subclause If he is another partner in a joint venture/consortium (i.e. not the lead partner) he must have the ability to carry out at least 10% of the contract works by his own means, as defined in Subclause The Tenderer (Sole Tenderer or Join Venture/ Consortium) must have completed at least 2 projects as prime contractor in the past 5 years (starting with year 2000) that are of the same nature and complexity to the proposed works concerned. One of these projects must have been of a value of not less that 8 million euro. Copies of the taking over of final acceptance certificates signed by the contracting authority / supervisors / employer of the projects concerned or notarised sworn statements by contracting authorities must be included in the tender. 9. All his key personnel must have at least 8 years' appropriate experience and proven qualifications relevant to works of a similar nature to this project. An economic

5 operator / tenderer may, where appropriate and for a particular contract, rely on the capacities of other entities = resource companies, regardless of the legal nature of the links which it has with them. It must in that case prove to the Contracting Authority that it will have at its disposal the resources necessary for performance of the contract, for example by producing an undertaking of the part of those entities = resource companies to place those resources at its disposal. Tenders submitted by companies in partnerships forming a joint venture/consortium must also fulfil the following requirements: The tender must include all the information required above for each partner of the joint venture/consortium and the summary data for execution of works by the tenderer. One partner must be appointed lead partner and that appointment confirmed by submission of powers of attorney signed by legally empowered signatories representing all the individual partners. The tender must include a preliminary agreement or letter of intent stating that all partners assume joint and several liability for the execution of the contract, that the lead partner is authorised to bind, and receive instructions for and on behalf of, all partners, individually and collectively, and that the lead partner is responsible for execution of the contract, including payments. All partners in the joint venture/consortium are bound to remain in the joint venture/consortium for the whole performance period of the contract. 17. Award criteria The evaluation Committee shall select the Tenderer whose Tender has been determined to meet the administrative and technical criteria, and has offered the lowest price TENDERING 18. How to obtain the tender dossier The tender dossier is available from Ministry of European Integration, 12 Libertatii Blvd., 4th floor, room 409a, tel , fax , in 5 days from the receipt of Euro 1000, which excludes courier delivery. Payment for the Tender Documents should be transferred in the bank account specified below:

6 Bank account: RO 35 ABNA Account Holder: Ministry of European Integration Bank name: ABN AMRO Bank Bucuresti Bank address: 2 Expozitiei Blvd, Sector 1, Bucharest, Romania, PoBox SWIFT: ABNAROBU The Tender Dossier is also available for inspection at the premises of the Contracting Authority (Ministry of European Integration). Tenders must be submitted using the standard tender form included in the tender dossier, whose format and instructions must be strictly observed. Tenderers with questions regarding this tender should send them in writing to Ministry of European Integration, 12 Libertatii Blvd, Sector 5, Bucharest, Fax (mentioning the publication reference shown in item 1) at least 21 days before the deadline for submission of tenders given in item 19. The Contracting Authority must reply to all tenderers' questions at least 11 days before the deadline for submission of tenders. 19. Deadline for submission of tenders Tenders must be received at the latest on 12 October 2005 at 12:00 hours local time and at the following address: Ministry of European Integration, 12 Libertatii Blvd., 4th floor, room 409a, tel by registered letter with acknowledgment of receipt or hand-delivered against receipt signed by an authorise representative. Any tender received after this deadline will not be considered. 20. Tender opening session The public opening session will take place on 12 October 2005 at 14:00 local time at the Ministry of European Integration on the address specified under point Legal basis Council Regulation no 3906/89 of 18 December 1989 on economic aid to certain countries of Central and Eastern Europe, as amended on 17 December 2001 through the Council Regulation (EC) no. 2500/2001 concerning pre-accession assistance for Turkey and as amended on 21 April 2004 through the Council Regulation (EC) no. 769/ Suspension Clause Contract s signature will be subject of prior conclusion of Co-

7 financing Agreement between Government of Romania and International Financing Institutions. In no circumstances will the Contracting Authority be liable for damages whatever their nature or relationship to the cancellation of a tender.