STANDARD TENDER DOCUMENTS

Prequalification Documents

Procurement of

Works, Major Equipment and

Industrial Installations

2007

European Bank

for Reconstruction and Development

This edition includes a number of amendments as summarised in the following table.

Amendment No. / Date / Nature of Amendments
1 / 18 May 1998 / Volume Ii Instructions to Applicants, Eligibility and qualification criteria - new sub para.2.6 added
“ / “ / Volume Ii Instructions to Applicants, Prequalification and tendering - new sub-para.4.9 added
2 / 17 February 1999 /

PREQUALIFICATION DATA

“ / General Experience, sub-para.1(a) modified
“ / Financial Position, sub-para.4 modified
“ / Tender Security, sub-para.4.8 modified
“ / APPLICATION FORMS
“ / General Experience Record, form modified
“ / Joint Venture Summary, form modified
“ / Particular Experience Record, form modified
“ / Details of Contracts of Similar Nature and Complexity, form modified
“ / Current Contract Commitments/ Works in Progress, form modified
“ / Financial Capability, form modified
“ / Financial Capability, form modified
“ / Litigation History, form modified
3 / 19 October 2007 / Preface
“ / Contact details updated
“ / Instruction to Applicants
“ / Sub-para 2.6 amended
“ / Sub-para 4.9 amended

1

STD: Prequalification Documents (10/07)

Preface

Procurement under projects financed by the European Bank for Reconstruction and Development (the Bank), is carried out in accordance with procedures laid down in the Bank’s Procurement Policies and Rules (the Rules).

The standard prequalification documents in this publication have been prepared for use by Bank’s public sector Clients in the procurement of works, industrial plant and heavy equipment in projects financed by the Bank. These documents are derived from standard prequalification documents, developed and in use by the World Bank. They reflect procedures and practices which have been developed through broad international experience, and comply with the above Rules.

Complementing this document is a Procurement Guidance Note - Prequalification for Works, Major Equipment and Industrial Installations, which explains the reasons for this procedure and its advantages, and provides general guidance to clients and their consultants. The Guidance Note does not constitute part of the prequalification documents and must not be included in the documents circulated to applicants.

Additional information on procurement for projects financed by the Bank can be obtained from:

Procurement & Purchasing Department (PPD)

European Bank for Reconstruction and Development

One Exchange Square

London EC2A 2JN

United Kingdom

Telephone: +44 207338 6000

Facsimile: +44 207338 7472

How to use these Documents

1.These standard prequalification documents are intended to assist Clients in the process of prequalifying applicants who wish to tender for large building, civil engineering, large plant, heavy equipment, and certain types of supply and installation contracts.

These documents include five main sections:

  • Invitation for Prequalification
  • Instructions to Applicants
  • Prequalification Data
  • Letter of Application
  • Application Forms

2.To simplify presentation, the text of the Prequalification Data has been written primarily for construction contracts (the most common application of prequalification procedures). Care should be taken when preparing prequalification documents to ensure that the prequalification criteria are clear and explicit, and that they reflect the needs and characteristics of the specific contract being tendered. The following directions should be observed when using these standard prequalification documents:

  • The Instructions to Applicants should be used without change.
  • The Prequalification Data should follow the general format of this document but data and criteria specific to the proposed tender must be prepared.
  • The forms will require adaptation to a greater or lesser degree to suit the requirements of each proposed tender.
  • The italicised notes in boxes are not part of the text; they contain guidance and instructions for the drafter of the specific prequalification documents. They should not be incorporated in prequalification documents.
  • Where alternative clauses or texts are shown, the drafter should select those that best suit the particular contract, and should discard the alternative text that is not used or draft a new text and discard all the alternatives.

1

STD: Prequalification Documents (10/07)

Table of Contents

VOLUME IInvitation for Prequalification2

Instructions to Applicants3

(1).General 3

(2)eligibility and qualification criteria3

(3)preparation and submission of 4applications

(4)prequalification and tendering4

PREQUALIFICATION DATA8

Letter of Application16

APPLICATION FORMS:20

(1)General Information20

(2)General Experience Record21

(2a)Joint Venture Summary22

(3)Particular Experience Record23

(3a)Details of Contracts of Similar Nature 24

and Complexity

(4)Summary Sheet: Current Contract25

COmmitments / Works in Progress

(5)Personnel Capabilities26

(5a)Candidate Summary27

(6)Equipment Capabilities28

(7)Financial Capability29

(8)Litigation History31

VOLUME II / Volume II includes general information on the location, scope and duration of the contract(s) and other relevant data as appropriate on the project, the works, the tender, the contract etc. 32

VOLUME I

[ country ]

[ project title ]

INVITATION FOR PREQUALIFICATION

[ title of contract ]

This Invitation for Prequalification follows the General Procurement Notice for this project which was published in Procurement Opportunities, [ state issue and date ].

[ name of Employer ] (the Employer) intends applying the proceeds of a loan from the European Bank for Reconstruction and Development [theBank] towards the cost of [ specify project ].

The Employer intends prequalifying firms and joint ventures to tender for the following contract(s) to be funded from part of the proceeds of the loan:

[ Include brief description covering type and size of each contract. Provide locations and estimated schedule. ]

Prequalification and tendering for contracts to be financed with the proceeds of a loan from the Bank is open to firms and joint ventures of firms from any country.

Prequalification documents may be obtained from the address below upon payment of a non-refundable fee of[ state currency and value ] or equivalent in a convertible currency. [ Give instructions for payment by bank transfer or the like ]. If requested, the documents will be promptly despatched by courier, but no liability can be accepted for loss or late delivery.

The prequalification documents must be duly completed and delivered to the address below, on or before [ specify time and date of deadline for submission ]. Documents which are received late may be rejected and returned unopened.

Interested firms may obtain further information from, and inspect and acquire the prequalification documents at the following office:

[Contact name]

[Executing agency]

[Address]

[Tel:]

[Fax:]

Date: ______

INSTRUCTIONS TO APPLICANTS

1.General

1.1The Employer, as defined in the Prequalification Data, intends using the proceeds of a loan from the European Bank for Reconstruction and Development (the Bank), to finance contract(s) for which this Invitation for Prequalification is issued. Payments by the Bank will be made only at the request of the Employer and upon approval by the Bank and will be subject in all respects to the terms and conditions of the Loan Agreement. The proceeds of the Bank’s loan will not be used for payments to persons or entities, or for any import of goods, if such payment or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations.

1.2The Employer intends prequalifying firms and joint ventures to tender for the contract(s) outlined in the Prequalification Data.

1.3The tendering schedule is outlined in the Prequalification Data.

1.4 General information on the location, scope and duration of the contract and other relevant data is attached as Volume II. The tender documents will be modelled on the Bank's Standard Tender Documents. The type of contract to be used is specified in the Prequalification Data.

2.Eligibility and qualification criteria

2.1Subject to paragraph 1.1, prequalification is open to firms and joint ventures from any country or countries, unless specified otherwise in the Prequalification Data.

2.2Prequalification will be based on the applicant meeting the minimum pass/fail criteria regarding the applicant's general and particular experience, personnel and equipment capabilities, and financial position, specified in the Prequalification Data, as demonstrated by the applicant's responses in the forms attached to the Letter of Application and other requested documentation. Specific requirements for joint ventures are also set forth in the Prequalification Data. The Employer reserves the right to waive minor deviations from the criteria, if they do not materially affect the capability of an applicant to perform the contract.

2.3When the applicant intends obtaining highly specialised inputs (essential for execution of the contract) from specialised subcontractors, application forms shall be completed for such subcontractors and their inputs.

2.4No affiliate of the Employer shall be eligible to tender or participate in a tender in any capacity whatsoever, unless it can be demonstrated that there is not a significant degree of common ownership, influence or control between the Employer and the affiliate.

2.5Where a firm, its affiliates or parent company, in addition to consulting, also has the capability to manufacture or supply goods or to construct works, that firm, its affiliates or parent company normally cannot be a supplier of goods or works on a project for which it provides consulting services, unless it can be demonstrated that there is not a significant degree of common ownership, influence or control.

2.6 An applicant shall not be eligible to participate where it has been determined to have engaged in corrupt, fraudulent,coercive or collusivepractices in accordance with sub-paragraph 4.9(c).[1]

3.Preparation and submission of applications

3.1If specified in the Prequalification Data, a clarification meeting and/or site visit will be held at the time, date and place specified. Prospective applicants may request in writing clarification of the project requirements and the criteria for qualification at any time up to 21 days prior to the deadline set for the submission of applications. The written responses will be sent to all prospective applicants that have received the prequalification documents (including the query but without identifying the source).

3.2All information requested for prequalification shall be provided in the language specified in the Prequalification Data. Where information is provided in another language it shall be accompanied by a translation into the language of the prequalification documents. This translation will govern and be used for interpreting the information. Information should be submitted in the formats specified in the application forms in these prequalification documents.

3.3The application for prequalification shall consist of the following:

(a)the Letter of Application

(b)the forms and documentation specified in the Prequalification Data.

3.4Failure to provide information which is essential to evaluate the applicant's qualifications or to provide timely clarification or substantiation of the information supplied may result in disqualification of the applicant.

3.5Submission of applications for prequalification must be received in sealed envelopes, which shall be delivered either by hand or by registered mail, to the address specified in the Prequalification Data no later than the date specified in thePrequalification Data, and shall bear the identification specified in the Prequalification Data. The Employer reserves the right to accept or reject late applications.

3.6The name and mailing address of the applicant shall be clearly marked on the envelope.

4.Prequalification and tendering

4.1The Employer reserves the right to:

(a)amend the scope and value of any contract(s) to be tendered, in which event only those prequalified applicants who meet the amended requirements will be invited to tender for the contract(s).

(b)reject or accept any application; and

(c)cancel the prequalification process and reject all applications.

The Employer shall neither be liable nor be under any obligation to inform the applicant of the grounds for such action.

4.2Applicants will be advised in writing by fax or telex, within the period specified in the Prequalification Data, of the result of their application and of the names of the prequalified applicants, without giving any reason for the Employer's decision.

4.3Only firms and joint ventures that have been prequalified under this procedure will be invited to tender. A firm may apply for prequalification both individually and as part of a joint venture. However, a prequalified firm or a member of a prequalified joint venture may participate as a tenderer in only one tender, either individually or as a partner in a joint venture, for the contract. Submission or participation by a tenderer in more than one tender for a contract (other than alternatives which have been permitted or requested) will result in the disqualification of all tenders for that contract in which the party is involved. However, this does not limit the inclusion of the same subcontractor in more than one tender.

4.4An applicant may be “conditionally prequalified” by the Employer, that is, prequalified subject to certain specified requirements being met by the applicant prior to a prescribed deadline, such as: the issuance of the Invitation to Tender. Requirements for “conditional prequalification” include such factors as:

-revision to a preliminary joint venture agreement;

-substitution of a specialised subcontractor or collaborator which is determined to be unqualified;

-improving critical project management;

-access to special equipment;

-recruiting experts in specialised fields;

-the applicant’s questionable ability to undertake the proposed contract due to the pending award of other significant contracts;

-submitting bank reference(s) or evidence of line of credit.

4.5At the time of submitting their tenders, prequalified tenderers shall update the relevant information used for prequalification to confirm that they continue to comply with the qualification criteria and verify that the information previously provided is still valid and correct. A tenderer shall be disqualified if it no longer meets the qualification requirements at the time of contract award.

4.6Joint ventures must comply with the following requirements:

(a)The formation of a joint venture after prequalification, and any change in a prequalified joint venture, will be subject to the written approval of the Employer prior to the deadline for submission of tenders. Such approval may be denied if (i) partners withdraw from a joint venture and the remaining partners do not meet the qualifying requirements; (ii) the level of participation by partners or the structure of the joint venture is substantially changed; (iii) the new joint venture is not qualified; or (iv) in the opinion of theEmployer, a substantial reduction in competition may result.

(b)Any tender shall be signed so as to legally bind all joint venture partners, jointly and severally, and any tender shall be submitted with a copy of the joint venture agreement providing for joint and several liability with respect to the contract.

4.7The prequalification of a joint venture does not necessarily prequalify any of its partners individually or as a partner in any other joint venture or association. In case of dissolution of a joint venture, each of the constituent firms may prequalify if they meet all the prequalification requirements, subject to the written approval of the Employer prior to the deadline for submission of tenders.

4.8Prequalified tenderers will be required to provide a tender security as outlined in the Prequalification Data. The successful tenderer will be required to provide a performance security. Details of these securities will be specified in the tender documents.

4.9The Bank requires that clients (including beneficiaries of Bank loans), as well as tenderers, suppliers, contractors, concessionaires and consultants under Bank-financed contracts, observe the highest standard of ethics during the procurement and execution of such contracts. In pursuance of this policy, the Bank[2]:

(a) defines, for the purposes of this provision, the terms set forth below as follows:

(i) "corrupt practice" means the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party;

(ii) "fraudulent practice" means any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation;

(iii) “coercive practice” means impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party;

(iv) “collusive practice” means an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party;

(b) will reject a proposal for prequalification if it determines that an applicant recommended for prequalification has engaged in corrupt, fraudulent,coercive or collusive practices in competing for the contract in question;

(c) will declare a firm ineligible indefinitely or for a stated period of time, to be prequalified under a Bank-financed contract if it at any time determines that:

(i) the firm has engaged in corrupt, fraudulent,coercive or collusive practices in competing for, or in executing, a Bank-financed contract; or

(ii) the firm has been found by a judicial process or other official inquiry to have engaged in corrupt, fraudulent,coercive or collusive practices.

PREQUALIFICATION DATA

This attachment contains information specific to the prequalification in question, which is needed for the paragraphs indicated. It should be completed by the Employer. These provisions are only illustrative and for guidance in drafting.

Instructions to Applicants:

para. 1.1Name of the Employer[specify the name of the Employer]

para. 1.2Contract(s) for Prequalification[specify contract(s) for which prequalification is invited]

Describe the Project in sufficient detail to identify the location, nature and complexity of the works or contracts. The information should be prepared for each specific contract; if more than one contract is to be let concurrently as a package of contracts, based upon the scope and duration of each specific contract in the package.
The estimated cost should not be disclosed in these Instructions or in the Invitation for Prequalification Documents.

para. 1.3Tendering Schedule[specify the tendering schedule]

EXAMPLE:

The planned tendering schedule is as follows:

Invitation to Prequalify[specifydate]

Results of Prequalification[specifydate]

Invitation to tender[specifydate]

Submission of tenders[specifydate]

Contract Award[specify date]

para. 1.4Type of Contract[specify the Form of Contract to be

used]

EXAMPLE:

The contract will be a [ unit price/lump sum/turn key/fixed price or other. The FIDIC Conditions of Contract for Civil Works - fourth edition - 1987, will be used ]. The Tender Documents will be the Bank’s Standard Tender Document for [ goods/supply and installation/civil works ].

para 2.1Eligibility[specify any restriction on eligibility consistent with the Bank’s Policies and Rules]