A PUBLIC INVITATION for international pre-qualification of investors interested in granting of concessions under the BOT arrangement for use of water for bottling for commercial purposes

Based on the Article 6, paragraph 2 of the Decree on methods and terms for granting of concessions for use of water for drinking, agriculture, industry, public utility and similar purposes (Official Journal RCG No. 32/03) the Ministry of Agriculture, Forestry and Water Management announces

A PUBLIC INVITATION

for international pre-qualification of investors interested in granting of concessions under the BOT arrangement for use of water for bottling for commercial purposes


I. The subject of the concession

The subject of concession is use of a part of waters for bottling from the following springs:

1) Drijenak (in the valley of the right bank of the river Plasnice) - Municipality of Kolasin (938 m above sea level), approximately 5 l/s;
2) Zmajevac (in the region of Donja Bukovica) Municipality of Savnik (1308 m above sea level), approximately 2 l/s;
3) Sanik (in the area of the village Nudo) Municipality of Niksic (380 m above sea level), approximately 5 l/s;
4) Bukovik (in north-western slope of the mountain Miljevac in Gornje Morakovo), Municipality of Niksic (924 m above sea level), approximately 2 l/s;
5) Alipasini izvori (in the valley of the river Vruja, south from Gusinje), Municipality of Plav (940 m above sea level), approximately 15 l/s:

II. Prequalification documents

The information required, terms for granting of the concession as well as related rights and obligations of the concessionaire are defined by pre-qualification documents that include:

- Concession study (together with the opinion of the Ministry of Health, Republic Hydro-Meteorology Institute and the Municipal organ in charge of planning and physical planning);
- Laws and regulations in force that lay down the subject in question;
- Proposal of the solution on establishing of water management conditions;
- Proposal of the Contract on Concession;
- Forms of statements for participation at the Public Invitation

III. Participators of the public invitation

Public Invitation is open for all legal and natural, local and international persons.

IV. Contents of the Bid of interested investors

The bid of interested investors should include, in particular, the following:

- Statement of eligibility of the investor for participation in the Public invitation in compliance with the Article 54 of the Law on participation of private sector in carrying out public services;
- Certificate issued by the competent Court of Law that the bankruptcy procedure has not been instigated against the investor;
- Balance sheet for the previous business year;
- Data on investor in compliance with the Article 10 of the Decree stated in the introduction of this Public Invitation;
- Objectives and the purpose of the concession;
- Name of the spring that the investor is interested in and the method and terms for using of water together with the rate of its use (on daily, monthly and yearly bases);
- Duration of concession;
- Timescale for acquiring water management approval, water management license and beginning of works;
- Amount of the special fee for use of water (the initial amount of this fee is 0.5 per cent of the selling price of bottled water);
- Total amount and source of funding for realization of the investment in question;
- Deadlines for providing the funds for the investment in question and their pace;
- Income and cost estimate related to the concession for the period of duration of the concession;
- Statement on acceptance of transfer of premises with facilities and related land under the project to this Ministry (transfer of property) without entitlement to damages following the expiration of the period that the concession was granted for;
- Proof of payment of 2,000 to the giro account of this Ministry as nonrecurring fee for taking the pre-qualification documents (the amount of this fee for investor that financed production of the concession study is 300);
- A signed Notice on acceptance of terms as well as rights and obligations laid down by the pre-qualification documents;
- Bank guarantee as a security of the bid at the amount of 4,000 with validity period until conclusion of the contract on concession;
- Proof that the registered capital of the investor is not lower than 25 per cent of the total investment;
- A statement that at the moment of conclusion of the Contract on Concession the investor would submit a bank guarantee of 10,000 as a security for valid fulfillment of the Contract (works);
- A statement that necessary expenditures for producing of the concession study would be paid to the investor who financed its producing (it is not to be given by the investor who financed formulation of concession study himself);
- Name of person in charge of data for submitting of bids and of communication with this Ministry.

Note: Amounts stated in euros apply to one spring only.

V. Public announcement of the invitation

The public invitation has been published in the Official Journal of RCG, daily newspaper Pobjeda, The Finance, and on the Internet - on the web site of this Ministry www.minpolj.vlada.cg.yu (link 'vodoprivreda').

VI. Submitting of bids

Bids are to be submitted directly (in person) to the registry office of this Ministry in a closed envelope, with a full name of the interested investors written on it and with a note for public invitation do not open, by March 5 , 2007, 12:00 at the latest.

VII. Receipt of bids

The person in charge of receiving the bids is Djordjije Milacic, the employee of this Ministry.

VIII. Opening of bids

The public opening of bids shall take place on March 5 , 2007 at the premises of this Ministry, at 13:00 .

IX. Criteria for selection and evaluation of bids

Criteria for selection and evaluation of bids are:

Criteria: Points:
Amount of the special fee for use of water to the percentage in relation to the selling price of 1 liter of bottled water 0 - 30
Quantity of the water use (daily, monthly, yearly) in l/s 0 - 20
Duration of concession, in years 0 - 20
Costs and the extent of the investment offered (in euros),
Number of employees, The extent to which the production is oriented to exports, etc. 0 - 15
Terms of transferring of all the premises with facilities and accompanying land under the project from the concessionaire to the concendent 0 - 10
Timescale for acquiring water management approval, water management license and beginning of works, stated in months 0 - 5

Note: More points are acquired by: higher amount of the special fee; larger quantity of water to be used; shorter period of concession; higher costs and extent of the investment with a bigger number of employees and higher extent to which the production is oriented to exports; unconditional transfer of premises, facilities and land under the project; shorter timescale for acquiring water management approval, water management license and beginning of works.

The location shall be toured in presence of a representative of this Ministry, as agreed with interested representatives of the investor.

X. Use of the official language

All the documents of this Ministry that relate to this public invitation are printed in the official language of Montenegro.
In case the bids are presented in other languages, the investor is obliged to enclose the authorized translation in the official language in Montenegro. That translation shall be the main and shall be used for interpretation of information and evidence.

XI. Persons authorized to provide information

Persons in this Ministry in charge of providing further information relevant to the procedure of this public invitation are: Zorica Djuranovic, BSc Civil Eng., phone No. ++318 81 482 261, Miodrag Radunovic, BCL, phone No. ++318 81 482 264, and for providing information in English, Ljiljana Simovic ++318 81 482 271.

REPUBLIC OF MONTENEGRO
GOVERNMENT OF THE REPUBLIC OF MONTENEGRO
MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT
Business Center Vektra - Podgorica