Rv3/Rv25 Løten-Elverum
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1 Rv3/Rv25 Løten-Elverum The Procurement Process Information Meeting Bettina Sandvin Head of Contracting Management
2 Qualification requirements for contractors Dialogue and negotiation Award criteria Questions and answers 2
3 The PPP contractor assumes a single-point responsibility for planning, building and financing - as well as for operating and maintaining the road section for 20 years The PPP contractor receives a cash grant and an annual compensation in the operational period when the road is ready for traffic Based on the PPP model from the E39 Klett-Bårdshaug, E39 Lyngdal-Flekkefjord and E18 Grimstad-Kristiansand Tender documents are revised based on experience and developments within the field of contracting Optimal cost-effective risk distribution - risk carried by the contracting party best able to manage it 3
4 Equity Investor A The NPRA - procurer PPP contractor Loan financing Bank/Financial institutions Investor B Construction of Inspection Centre and Driver and Vehicle Licensing Office (trafikkstasjon) Road construction Road operation Advisers Advisers Sub-contractor - operation Contractors Contractors Sub-contractor - maintenance 4
5 Contract Awarding Negotiation Qualification Tender schedule Scheduled milestones Tentative dates Information meeting Call for tender 15 March Information meeting, going through the tender documents 27 March Deadline for submission of application for qualification 3 May Qualification/results of qualification process and selection of tender participants 3 meetings with each tenderer, going through their preliminary choice of concept/solution 18 May June - August Deadline for submission of first tenders 26 September Negotiations, presentation meeting. Submission of final tenders. October to January 2018 Selection of preferred tender January/February 2018 Signing the contract/financial close February - May 2018 Startup contract work March - May 2018 Opening of road section 2020/2021 5
6 Qualification (1/8) Qualification requirements for contractors The PPP company will be party to a contract with the NPRA The PPP company and all parties to be involved in performing the contract work must document qualifications The PPP company Equity investors, owners etc. Advisers - financing, technical issues Contractors - construction Contractors - operation and maintenance It is important that the PPP company can document that it has sub-contractors /partners resources at its disposal - e.g. through declarations of commitment 6
7 Qualification (2/8) Qualification requirements for contractors Requirements/conditions within fields such as 1. Economy 2. Experience from similar work 3. Experience from financing of PPP projects 4. Organisational capacity and expertise 5. Health, safety and environment (HSE) 6. Social responsibility 7
8 All requirements apply to each of the three previous fiscal years Qualification (3/8) Qualifcation requirements for contractors 1. Economy: Economic and financial capacity to secure a solid basis for performing the contract Minimum requirements for the contractor(s) to have the main responsibility for performance during the construction phase: Annual turnover of minimum NOK 3.5 billion (in total, for all contractors). Current ratio > 1 (for each individual contractor). Gearing net of cash, max. 1.5 Gearing net of cash here means long-term debt minus cash, divided by total assets (for each individual contractor). Interest cover ratio (EBITDA/Interest payable) must be minimum 2 (for each individual contractor). Minimum requirements for those taking part in the PPP company as co-owners Accumulated net worth (combined value of assets net of all liabilities) must be minimum NOK 600 million (in total, for all co-owners). 8
9 Qualification (4/8) Qualification requirements for contractors 2. Experience from similar work: Substantial experience required from transport projects with work of similar type and level of difficulty, incl engineering, construction, operation and maintenance - experience from all project implementation phases Experience from model-based engineering Experience from implementation of transport projects with a contract value above MNOK 700 excl. VAT Must have carried out transport projects in a manner that demonstrates ability to perform, effective contract management, and ability to cooperate with the client. 9
10 Qualification (5/8) Qualifcation requirements for contractors 3. Experience from financing of PPP projects The contractor must have experience from financing of at least one similar PPP project that has reached the operational phase Contractors must either have such experience themselves or contract it externally 10
11 Qualification (6/8) Qualifcation requirements for contractors 4. Organisational capacity and expertise Adequate staffing and necessary competence to implement all project phases 5. Health, safety and environment (HSE) Safety, health and working environment (Norw.:SHA)» System requirements» Accident frequency rate H1 must be lower than 10 External environment» System requirements 11
12 Qualification (7/8) Qualifcation requirements for contractors 6. Social responsibility System requirements» Compliance with regulations relating to work and pay» prevention of corruption, financial crime and work-related crime 7. There must be no grounds for dismissal ESPD self-declaration form for qualification in procurement procedures - contractor s declaration that there are no grounds for dismissal, e.g. conviction of corruption etc.» Police certificate of good conduct (criminal record)» Printout from Register of Bankruptcies 12
13 Qualification (8/8) Selection of qualified contractors The 3 best qualified contractors will be selected and invited to participation in the competitive tender Selection of the top three, if more than three are qualified, will be based on the following criteria: HSE Social responsibility Experience from similar work and financing of PPP projects Organisational capacity and required expertise Economic and financial capacity 13
14 Contra ct Awardi ng Negotiation Qualification Tender schedule Scheduled milestones Tentative dates Information meeting Call for tender 15 March Information meeting, going through the tender documents 27 March Deadline for submission of application for qualification 3 May Qualification/results of qualification process and selection of tender participants 3 meetings with each tenderer, going through their preliminary choice of concept/solution 18 May June - August Deadline for submission of first tenders 26 September Negotiations, presentation meeting. Submission of final tenders October to January 2018 Selection of preferred tender January/February 2018 Signing the contract/financial close February - May 2018 Startup contract work March - May 2018 Opening of road section 2020/
15 Negotiation (1/1) Dialogue and negotiations Dialogue phase with each contractor 1st Meeting - the Contracting Client presents the project (???) and guidelines for solutions 2nd Meeting - the Contractor presents his preliminary choice of solution and plan for implementation. Discussion and clarifications 3rd Meeting - the Contractor presents a revised solution and plan for implementation. Discussion and clarifications The contractor submits his first tender Presentation meeting Negotiations with each contractor 3 meetings All issues may be discussed but tender conditions cannot be substantially changed The contractor submits his final tender 15
16 Contra ct Awardi ng Negotiation Qualification Tender schedule Scheduled milestones Tentative dates Information meeting Call for tender 15 March Information meeting, going through the tender documents 27 March Deadline for submission of application for qualification 3 May Qualification/results of qualification process and selection of tender participants 3 meetings with each tenderer, going through their preliminary choice of concept/solution 18 May June - August Deadline for submission of first tenders 26 September Negotiations, presentation meeting. Submission of final tenders October to January 2018 Selection of preferred tender January/February 2018 Signing the contract/financial close February - May 2018 Startup contract work March - May 2018 Opening of road section 2020/
17 Awarding (1/1) Award criteria Selection of tender will be based on the best cost/quality ratio Planned award criteria: Price/cost Plan for implementation and organisation, expertise of key personnel Technical quality Health, safety and environment (HSE) 17
18 Contra ct Awardi ng Negotiation Qualification Tender schedule Scheduled milestones Tentative dates Information meeting Call for tender 15 March Information meeting, going through the tender documents 27 March Deadline for submission of application for qualification 3 May Qualification/results of qualification process and selection of tender participants 3 meetings with each tenderer, going through their preliminary choice of concept/solution 18 May June - August Deadline for submission of first tenders 26 September Negotiations, presentation meeting Submission of final tenders October to January 2018 Selection of preferred tenderer January/February 2018 Signing the contract/financial close February - May 2018 Startup contract work March - May 2018 Opening of road section 2020/
19 Questions and answers
KENYA INFRASTRUCTURE AND PPP PROJECT SOUTH EASTERN KENYA UNIVERSITY HOSTELS PPP PROJECT
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