REPUBLIC OF KENYA MINISTRY OF ENVIRONMENT WATER AND NATURAL RESOURCES KERIO VALLEY DEVELOPMENT AUTHORITY REQUEST FOR PROPOSALS FOR

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1 REPUBLIC OF KENYA MINISTRY OF ENVIRONMENT WATER AND NATURAL RESOURCES KERIO VALLEY DEVELOPMENT AUTHORITY REQUEST FOR PROPOSALS FOR DEVELOPMENT OF LOWER TURKWEL IRRIGATION PROJECT TENDER NO. KVDA/RFP/29/ TENDER CLOSING DATE: 19 TH MAY, 2016 AT NOON THE MANAGING DIRECTOR KERIO VALLEY DEVELOPMENT AUTHORITY P.O. BOX ELDORET, KENYA THE PRINCIPAL SECRETARY MINISTRY OF ENVIRONMENT WATER AND NATURAL RESOURCES P.O. BOX NAIROBI, KENYA

2 REPUBLIC OF KENYA DEVELOPMENT OF LOWER TURKWEL IRRIGATION PROJECT

3 REQUEST FOR PROPOSALS RFP No. KVDA/RFP/29/ Country: KENYA Project Name: DEVELOPMENT OF LOWER TURKWEL IRRIGATION PROJECT Title of Concession Services: DEVELOPMENT OF LOWER TURKWEL IRRIGATION PROJECT ON BUILD AND TRANSFER (BT) The Development of Lower Turkwel Irrigation Project KVDA/RFP/37/ Page i

4 KERIO VALLEY DEVELOPMENT AUTHORITY Qualification for the Concession Contract For: The Development of Lower Turkwel Irrigation Project; Kenya. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page ii

5 DISCLAIMER The information contained in this Qualification document or subsequently provided to Tenderers whether verbally or in documentary or any other form by or on behalf of the Authority or any of his Employees or advisors is provided to Tenderers on the terms and condition subject to which such information is provided. The Qualification document is not an agreement and is neither an offer nor an invitation by the Authority to the prospective Tenderers or any other persons. The purpose of this QUALIFICATION document is to check that interested parties have the finances, capability and capacity to Build and Transfer [BT] the facilities back to the Owner at the end of the Concession Period. This Qualification Document includes statements which reflect various assumptions and assessments arrived at by the Authority in relation to the project. Such assumptions, assessments and statements do not purport to contain all the information that each tenderer may require. This Qualification Document might not be appropriate for all persons, and it is not possible for the Authority, its employees or advisers to consider the investment objectives, financial situation and particular needs of each party who reads or uses this Qualification Document. The assumption, statements and information contained therewith, especially the feasibility study may not be complete, accurate, adequate or correct. Each investor should therefore conduct his own investigations, analysis and check the accuracy, adequacy, correctness reliability, and completeness of the assumption, assessments, statements and information contained in the Qualification Document so as to obtain independent advice from appropriate sources. Some information provided is on a wide range of matters, some of which depends on the interpretation of the law. The information given is not an exhaustive account of statutory requirements and should not be regarded as a complete or authoritative statement of law. The Authority accepts no responsibility for the accuracy or otherwise for an interpretation or opinion on law expressed therein. The Authority make no representation or warranty and shall have no liability to any persons, including any applicant or tenderer under any law, statute, rules or regulations or tort, principle of restitution or unjust enrichment or otherwise for any loss, damage, cost or expense which may arise from or incurred or suffered on account of anything contained in the Qualification Document or otherwise, including the accuracy, adequacy, correctness, completeness, or reliability of the Qualification Document and any assessment, assumption, statement or information contained therein or deemed to form part of this Qualification Document or arising in this Qualification stage. The Authority accepts no liability of any nature whether resulting from negligence or otherwise howsoever caused, arising from reliance from any Tenderer upon statements contained in this Qualification N Document. The Authority may at its absolute discretion, but without being under obligation to do so, update, amend or supplement the information, assessments or assumptions contained in the Qualification Document. The issue of this Qualification Document does not imply that the Authority is bound to select Tenderers or appoint the selected Tenderer for the project and the Authority reserves the right to reject all or any of the Tenders or Tender without assigning any reason whatsoever. The Tenderer is associated with or relating to the preparation and submission of his Tender including but not limited to preparations, copying, postage, delivery fee, expenses associated with any demonstration or presentation which may be required by the Authority or any other costs incurred in connection with or relating to his Tender. All such costs and estimates will remain with the Tenderer and the Authority shall not be liable with any manner whatsoever for the same or for The Development of Lower Turkwel Irrigation Project KVDA/RFP/37/ Page iii

6 any other cost or other expenses incurred by the Tenderer in preparation for submission of the Tender, regardless of the outcome of the Tendering process. THE QUALIFICATION DOCUMENT This standard document for qualifying Tenderers for the Concession Agreement Contract for the Development of Lower Turkwel Irrigation Project has been prepared for use by Public entities in Kenya. This standard document may be used for Qualification of all types of Turnkey projects. With necessary modifications. The document may also be used for Projects involving Financing, Construction, Operation and Maintenance of infrastructure (e.g. Build and Transfer (BT), Build- Lease and Transfer (BLT), Build, Operate and Transfer.(BOT), Build-Own and Operate (BOO), Build Transfer and Operate (BTO) Rehabilitate Operate and Transfer (ROT) Rehabilitate Own and Operate (ROO), subject to other necessary Government approvals. BRIEF DESCRIPTION OF THE TENDERING PROCESS Kerio Valley Development Authority has adopted a two stage process for selection of Tenderers for negotiations of the Concession Contract for the Development of Arror Multipurpose Dam on River Arror. The first stage of the process involves Qualification of interested Tenderer/Consortia for Lower Turkwel Irrigation Project. This shall involve the Tenderer/ Consortia obtaining a copy of the Feasibility Study and examining it meticulously to ensure that the Party/Consortia understand the requirements. The Party/Consortia shall then prepare all the documentation called for in the Instructions to Tenderers and submit same by the date and time stated therein. The Employer shall then apply a points scoring system to each submittal to determine a ranking. The second stage of the process shall be the highest ranking Tenderer/Consortia being called by Kerio Valley Development Authority for discussions to enter into the Concession Contract for the Development of Lower Turkwel Irrigation Project. If negotiations are not successful the next ranking Tenderer/ Consortia shall be called and so forth. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page iv

7 TABLE OF CONTENTS INVITATION TO TENDER FOR QUALIFICATION CHAPTER I - GENERAL CHAPTER II - BACKGROUND AND PRELIMINARY INFORMATION Brief Description of the Proposed Project including its Objectives Scope of the Project and/ or Expected Project Outputs Sovereign Guarantees CHAPTER III - TERMS OF REFERENCE Concession Agreement The Investor Selection Criteria Scope of Work of the Concessionaire CHAPTER IV - REPORTS AND FEASIBILITY STUDIES CHAPTER V - ENVIRONMENTAL AND SOCIAL IMPACT Environmental Protection Resettlement... 5 QUALIFICATION PROCEDURES SECTION I - INSTRUCTIONS TO TENDERERS General Scope of Application Source of Funds Fraud and Corruption Eligible Tenderers Contents of the Qualification Document Sections of Qualification Document Clarification of Qualification Document Amendment of Qualification Document Preparation of Tenders Cost of Tenders Language of Application Documents Comprising the Application Application Submission Form Documents Establishing the Eligibility of the Tenderer Documents Establishing the Qualifications of the Tenderer Signing of the Application and Number of Copies Submission of Tenders The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page v

8 6.4.1 Sealing and Identification of Tenders Deadline for Submission of Tenders Late Tenders Opening of Tenders Procedures for Evaluation of Tenders Confidentiality Clarification of Tenders Responsiveness of Tenders Subcontractors Evaluation of Tenders and Qualification of Tenderers Evaluation of Tenders Employer s Right to accept or reject Tenders Qualification of Tenderers Notification of Prequalification Invitation to Negotiate Changes in Qualifications of Tenderers Disqualification SECTION II - QUALIFICATION DATA SHEET General Contents of the Qualification Document Preparation of Tenders Submission of Tenders Procedures for Evaluation of Tenders SECTION III - QUALIFICATION CRITERIA AND REQUIREMENTS Summary of Evaluation Criteria Eligibility Technical Qualifications: [A Maximum of Sixty (60) Marks] Financial Qualifications: (a maximum of Forty (40) Marks) Negotiations Detailed Narrative of Evaluation Criteria Eligibility Technical Qualification (Sixty-60 Marks) Financial Qualifications (Forty-40 Marks) SECTION IV. APPLICATION FORMS Tender Submission Form Date: Tenderer Information Form ELI Date: 23 The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page vi

9 9.3 Tenderer's Party Information Form ELI Form Business Structure BS Form Business Structure BS Form Business Structure BS Performance of Tenderer PER Disputes, Arbitration and Litigation PER General Construction and Management Experience - EXP Specific/Similar Construction Experience EXP Specific/Similar Management Experience of BOT Projects EXP Specific/Similar Design Experience EXP Financial Qualifications Fin Financial Documents Evidence of Equity Requirements [30% of the Project Cost] Average Annual Turnover Fin Letter of Intent FIN SECTION V. SCOPE OF WORKS The Development of Lower Turkwel Irrigation Project KVDA/RFP/37/ Page vii

10 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project INVITATION TO TENDER FOR QUALIFICATION 1 CHAPTER I - GENERAL Tender Number KVDA/RFP/29/ Invitation Date: - 19 th February 2015 Tender Name Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project Kerio Valley Development Authority invites Tenders from interested candidates to qualify for the Concession Contract for the Development of Lower Turkwel Irrigation Project. Interested candidates may obtain further information and inspect the Qualification Document and the Feasibility Studies at the Managing Director s office, 14 th Floor, KVDA Plaza, Eldoret at the address below:- Managing Director, Kerio Valley Development Authority, PO Box , Eldoret, Kenya. A complete set of documents consisting of the Qualification Document and the Feasibility Studies may be obtained by interested candidates on submission of a written application and upon payment of a non-refundable fee of KES1000 [One thousand Kenya Shillings] OR Down loaded free of charge from KVDA website; OR Kenya supplier IFMIS website Completed Qualification Documents should be submitted on or before Thursday 19 th May 2016 at 12.00Noon Completed Qualification documents shall be submitted in plain sealed envelopes clearly marked with the Tender number and name and marked "DO NOT OPEN BEFORE Thursday 19 th May 2016 at 12.00Noon and addressed to: Kerio Valley Development Authority, PO Box , Eldoret, Kenya. Tenders will be opened immediately after the closing time in the presence of tenderers representatives who choose to attend the opening at the Authority's boardroom KVDA plaza 14th floor Eldoret. SUPPLIES AND PROCUREMENT MANAGER KERIO VALLEY DEVELOPMENT AUTHORITY The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 1

11 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project 2 CHAPTER II - BACKGROUND AND PRELIMINARY INFORMATION. 2.1 Brief Description of the Proposed Project including its Objectives The Kerio Valley Development Authority [KVDA] was established by an Act of Parliament Cap 441 of 1979 of the Laws of Kenya. The mandate of the Authority is to promote integrated development in the North Western Kenya through implementation of integrated programmes and projects such as provision of hydropower, flood control, water supply for irrigation, domestic, livestock, fisheries and industrial as well as environmental conservation. The area of jurisdiction covers the greater districts of Keiyo, Marakwet, Baringo, Koibatek, Turkana, West Pokot and parts of Samburu. The Authority plans to develop irrigation downstream of Turkwel River. The proposed irrigation project lies on the lower Turkwel region. The area lies at about 1000 a.s.l generally flat with slopes of 0 2%. The soils range from sandy-clay-loam to alluvial soils. The alluvial deposits are deep and well drained. The area receives mean annual rainfall of about 400 mm with bimodal rainfall patterns. Short rains come in the months of September December and long rains in March May in each calendar year. The local temperatures range from 25 ºC to 37 ºC. The area is characterized by a semi-arid climate, fragile environment with soils prone to erosion. There exist over 20,000 ha of land on the lower Turkwel which can be irrigated and used for food production that will enhance food security in the region. The development of the available 20,000 ha of land would give the 2,000 local families the opportunity to improve tremendously their condition of life, providing food security and income for all through sale of cash crop such as sugar, and in consequence improve insecurity among the two ethnic groups living in the two sides of the river. 2.2 Scope of the Project and/ or Expected Project Outputs Under this project, Kerio Valley Development Authority in collaboration with the Ministry of Environment Water and Natural Sources undertook Feasibility Studies which included detailed design, resource management, reservoir management, watershed conservation, community mobilization and overall coordination of all project activities. The Authority has undertaken a feasibility study for the development of Lower Turkwel Irrigation project and wishes to engage a reputable construction company to undertake the following project components:- i. Construction of water intake at River Turkwel ii. Expansion and improvement of the current water canal. iii. Construction of irrigation infrastructure in the field. iv. Construction of access roads, and v. Provision of infield drainage network. vi. Construction of sugar factory and facility to convert by product of sugar (bagasse) into paper. vii. Capacity building for farmers. 2.3 Sovereign Guarantees The Government of Kenya will provide sovereign guarantees relating to this Concession. However the Government of Kenya will guarantee the terms of the Concession Agreement. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 2

12 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project 3 CHAPTER III - TERMS OF REFERENCE 3.1 Concession Agreement Kerio Valley Development Authority [KVDA] intends to engage an investor on a Concession Agreement Contract to develop the water Intake and related works, expansion of canals, construction off irrigation infrastructure and access roads, drainage works sugar processing factory and other related works on Build and Transfer (BT) basis. 3.2 The Investor The Investor shall finance, design review, construct, and transfer the irrigation system and related infrastructure. He shall also finance monitoring and evaluation and project related training of counterpart staff overseas. Social infrastructure such as schools, health facilities, resettlement and compensation shall be undertaken by the Government of Kenya. 3.3 Selection Criteria Tenderers shall complete the Qualification Document for the Concession Contract. The Tenderer who scores the most points on the scoring system shall be called for discussions for entering into a Concession Agreement Contract. If discussions are unsuccessful, the next highest Tenderer shall be called and so forth. 3.4 Scope of Work of the Concessionaire The Concessionaire shall perform all work as called for in these Terms of Reference including all technical investigations and related services. In carrying out his work, the investor shall cooperate fully with the concerned agencies of the Government of Kenya, the Ministry of Environment Water and Natural Resources / Kerio Valley Development Authority, Provincial Administration, Ministry of Lands, amongst others. The investor shall provide the support services related to and necessary for the completion of the assignment. The work shall cover but not limited to the aspects outlined in these Terms of Reference. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 3

13 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project 4 CHAPTER IV - REPORTS AND FEASIBILITY STUDIES 4.1 Review of previous reports, interim and feasibility study reports The Tenderer shall study previous reports on the project and the National Water Master Plan, July 1992 [JICA] and shall satisfy himself as to the magnitude of the works involved. These reports may be viewed at the offices of Kerio Valley Development Authority. 4.2 Designs Feasibility Studies have been prepared by WAPCOS for the overall Lower Turkwel irrigation Project including the water intake and downstream water resources based sub-projects including: irrigation schemes, urban/ rural water supplies, fisheries, inter-basin transfers. So that there is no misunderstanding the scope the work shall be limited to the construction of the intake and all appurtenances necessary for the operation of the irrigation Concession Agreement The Tenderer shall check and confirm that the design calculations prepared by WAPCOS are correct and that the objectives of the project will be met. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 4

14 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project 5 CHAPTER V - ENVIRONMENTAL AND SOCIAL IMPACT 5.1 Environmental Protection. Tenderers shall note that Environmental criteria will be part of the Concession Contract. The Concessionaire shall; Acquire an EIA license from NEMA Ensure implementation of project is in line with EIA rules and regulations Follow up potential adverse consequences of project related activities positively through designed and universally accepted evaluation methods. Ensure adherence and provide alternatives / options of mitigation measures on the basis of the technical plans and designs. Come up with an environmental monitoring framework for the state of the environment prior, during and after implementation of the project with all fundamental parameters considered. Ensure adequate consultation and public participation throughout the EIA implementation process 5.2 Resettlement Tenderers shall note that Social criteria will not be part of the Concession Contract. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 5

15 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 6

16 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project QUALIFICATION PROCEDURES 6 SECTION I - INSTRUCTIONS TO TENDERERS 6.1 General Scope of Application The Employer, as defined in the Qualification Data Sheet (QDS), issues this Qualification Document to tenderers interested in tendering for the concession contract for the project. The name of the project, corresponding to this Qualification is provided in the QDS The employer shall evaluate the capabilities of the tenderers through this Qualification exercise. The Qualification document will assist the employer to summarize relevant information to enable the employer to determine if they are qualified to undertake and successfully complete the project and whether they possess the necessary professional and technical qualifications, competence, financial resources, equipment and other physical facilities, managerial capability, reliability, experience and reputation and personnel to finance, develop and operate the project Source of Funds The funds for the project shall be arranged by the prospective tenderer himself Fraud and Corruption The employer requires that tenderers, suppliers, contractors and consultants under these contracts, observe the highest standard of ethics during the procurement and execution of such contracts. In pursuit of this policy, the employer: Defines, for the purposes of this provision, the terms set forth below corrupt practice means the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence the action of a public official in the procurement process or in contract execution; fraudulent practice means a misrepresentation or omission of facts in order to influence a procurement process or the execution of a contract collusive practice means a scheme or arrangement between two or more Tenderers, with or without the knowledge of the Employer, designed to establish bid prices at artificial, non-competitive levels; and coercive practice means harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in the procurement process or affect the execution of a contract Will reject a proposal for award if it determines that the Tenderer recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive or coercive practices in competing for the Contract in question. Accordingly, the Employer shall Sanction that firm and declare it ineligible. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 7

17 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project Eligible Tenderers A Tenderer shall be Domestic (Private, Public or Government) or International Contractor including Joint Venture (JV) and / or Consortia with the Formal Intent, as evidenced by a Letter of Intent, to enter into an Agreement or Under an existing Agreement. In the case of a JV, (ii) All Parties shall be jointly and severally liable and (ii) there shall be no Limit on the number of Partners The Eligibility Criteria listed in this Clause 4 shall apply to the Tenderer, including the Parties constituting the Tenderer, i.e., his Proposed Partners, Design Consultant or Financial Institution for any part of the Contract including related services A tenderer and all parties [including contractors and consultants] constituting the tenderer shall provide evidence of registration with their engineering regulatory institutions in their respective countries. In case of the financial institution or any other firm in the capacity of sponsor being the JV partner shall be required to provide evidence of registration equivalent to that of the Security and Exchange Commission of Kenya A tenderer (the single entity) or the lead firm [contractor or sponsor] can submit only one application in the same pre- qualification process, either individually as a tenderer or as a partner of a joint venture. No lead partner can be a JV partner while submitting an application individually or as a partner of another joint venture in the same Qualification process. However, the consultant partner in any application may participate in more than one application, but only in that capacity. A tenderer who submits or participates in, more than one application will cause all the tenders in which the tenderer has participated to be disqualified Tenderers shall not be under execution of a bid securing declaration Tenderers and all parties constituting the Tenderer shall provide such evidence of their continued eligibility satisfactory to the Employer, as the Employer shall reasonably request including legal and financial autonomy and compliance with Commercial Law in case of Government owned entities of Kenya. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 8

18 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project 6.2 Contents of the Qualification Document Sections of Qualification Document The document for the Qualification of Tenderers (hereinafter - Qualification document ) consists of all the sections indicated below, and should be read in conjunction with any Addendum issued in accordance with ITT Qualification Procedures Section I Section II Section III Section IV Section V Instructions to Tenderers (ITT) Qualification Data Sheet (QDS) Qualification Criteria and Requirements Application Forms Scope of Works The Invitation for Qualification Tenders issued by the Employer is not part of the Qualification document The Employer accepts no responsibility for the completeness of the Qualification document and his addenda unless they were obtained directly from the Employer The Tenderer is expected to examine all instructions, forms, and terms in the Qualification Document and to furnish all information or documentation required by the Qualification Document Clarification of Qualification Document A Tenderer requiring any clarification of the Qualification Document shall contact the Employer in writing at the Employer s address indicated in the QDS. The Employer will respond in writing to any request for clarification provided that such request is received no later than five (05) days prior to the deadline for submission of tenders Amendment of Qualification Document At any time prior to the deadline for submission of tenders, the Employer may amend the Qualification Document by issuing addenda Any addendum issued shall be part of the Qualification Document and shall be communicated in writing to all who have obtained the Qualification document from the Employer. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 9

19 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project 6.3 Preparation of Tenders Cost of Tenders The Tenderer shall bear all costs associated with the preparation and submission of his application. The Employer will in no case be responsible or liable for those costs Language of Application The application as well as all correspondence and documents relating to the Qualification exchanged by the Tenderer and the Employer, shall be written in the language specified in the QDS. Supporting documents and printed literature that are part of the application shall also be in same language Documents Comprising the Application The application shall comprise the following: Application Submission Form, in accordance with ITT 6.3.4; Documentary evidence establishing the Tenderer s eligibility to pre-qualify, in accordance with ITT 6.3.5; Documentary evidence establishing the Tenderer s qualifications, in accordance with ITT 6.3.6; and Any other document required as specified in the QDS Application Submission Form The Tenderer shall prepare an Application Submission Sheet using the form furnished in Section IV, Application Forms. This Form must be completed without any alteration to its format Documents Establishing the Eligibility of the Tenderer To establish his eligibility in accordance with ITT 6.1.4, the Tenderer shall complete the eligibility declarations in the Application Submission Form and Forms ELI 1.1 and 1.2, included in Section IV, Application Forms. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 10

20 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project Documents Establishing the Qualifications of the Tenderer To establish his qualifications to perform the contract(s) in accordance with Section III, Qualification Criteria and Requirements, the Tenderer shall provide the information requested in the corresponding Information Sheets included in Section IV, Application Forms Signing of the Application and Number of Copies The Tenderer shall prepare one original of the documents comprising the application as described in ITT and clearly mark it ORIGINAL. The original of the application shall be typed or written in indelible ink and shall be signed by a person duly authorised to sign on behalf of the Tenderer The Tenderer shall submit two copies of the signed original application, in the number specified in the QDS, and clearly mark them COPY. In the event of any discrepancy between the original and the copies, the origin shall prevail. 6.4 Submission of Tenders Sealing and Identification of Tenders The Tenderer shall enclose the original and the copies of the application in a sealed envelope that shall: bear the name and address of the Tenderer; be addressed to the Employer, in accordance with ITT 6.4.2; and bear the specific identification of this Qualification process indicated in the QDS The Employer will accept no responsibility for not processing any envelope that was not identified as required Deadline for Submission of Tenders Tenders shall be received by the Employer at the address and no later than the deadline indicated in the QDS. A receipt will be given for all tenders submitted. Tenderers may also submit their tenders by mail or by hand when so specified in the QDS. Tenderers shall also submit an electronic copy of their tenders as specified in QDS The Employer may, at his discretion, extend the deadline for the submission of tenders by amending the Qualification Document in accordance with ITT 6.2.3, in which case all rights and obligations of the Employer and the Tenderers subject to the previous deadline shall thereafter be subject to the deadline as extended. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 11

21 6.4.3 Late Tenders The Employer may at his discretion, accept the application after the deadline for submission of tenders prescribed in ITT Opening of Tenders Employer shall open the tenders as per his standard procedures and shall prepare a record of the opening of tenders that shall include, as a minimum, the name of the Tenderer. A copy of the record may be distributed to all Tenderers. 6.5 Procedures for Evaluation of Tenders Confidentiality Information relating to the evaluation of tenders, and recommendation for Qualification, shall not be disclosed to Tenderers or any other persons not officially concerned with such process until the notification of results of Qualification is made to all Tenderers Clarification of Tenders To assist in the evaluation of tenders, the Employer may, at his discretion, ask any tenderer for a clarification of his application which shall be submitted within a stated reasonable period of time If a Tenderer does not provide clarifications of the information requested by the date and time set in the Employer s request for clarification, his application may be rejected Responsiveness of Tenders The Employer may reject any application which is not responsive to the requirements of the Qualification document Subcontractors At this time, the Employer does not intend to execute certain specific parts of t h e Works by subcontractors s e l e c t e d in advance by the Employer [Nominated Subcontractors] unless otherwise stated in the QDS. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 12

22 6.6 Evaluation of Tenders and Qualification of Tenderers Evaluation of Tenders The Employer shall use the factors, methods, criteria, and requirements defined in Section III, (Qualification Criteria and Requirements) to evaluate the qualifications of the Tenderers. The Employer reserves the right to waive minor deviations in the qualification criteria if they do not materially affect the capability of a Tenderer to perform the contract Only the qualifications of subcontractors that have been identified in the application may be considered in the evaluation of a Tenderer In case of multiple contracts, the Employer shall pre-qualify each Tenderer for the maximum number and types of contracts for which the Tenderer meets the appropriate aggregate requirements of such contracts, as specified in Section III, Qualification Criteria and Requirements Employer s Right to accept or reject Tenders The Employer reserves the right to accept or reject any tender, and to annul the Qualification process and reject all tenders at any time, without thereby incurring any liability to Tenderers Qualification of Tenderers All Tenderers whose tenders have met or exceeded the specified t h r e s h o l d requirements will, to the exclusion of all others, be pre-qualified by the Employer Notification of Prequalification Once the Employer has completed the evaluation of the tenders he shall notify all Tenderers in writing of the names of those Tenderers who have been pre-qualified Invitation to Negotiate Promptly after the notification of the results of the Qualification the Employer shall invite the Tenderer with the highest ranking total of points to negotiations for the Concession Contract. If the discussions are unsuccessful the next ranking Tenderer shall be called and so forth Changes in Qualifications of Tenderers Any change in the structure or formation of a Tenderer after being pre-qualified in accordance with ITT shall be subject to a written approval of the Employer prior to the deadline for submission of tenders. Such approval shall be denied if as a consequence of the change the Tenderer no longer substantially meets the qualification criteria set forth in Section III, Qualification Criteria and Requirements, or if in the opinion of the Employer, a substantial reduction in competition may result. Any such changes shall be submitted to the Employer not later than seven (07) days after the date of the Invitation for Tenders. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 13

23 6.6.7 Disqualification The Executing Agency shall disqualify a Tenderer if he finds at any time that the information submitted concerning his Qualification Application was false or misleading; The Executing Agency may disqualify a Tenderer if he finds at any time that the information submitted concerning his Qualification Application was materially inaccurate or materially incomplete; materiality being defined as a substantial misrepresentation of his technical or financial capabilities or qualifications, as well as an omission which substantially misrepresents his technical or financial capabilities or qualifications; The Executing Agency will not disqualify a Tenderer on the grounds that information submitted concerning his qualifications was inaccurate or incomplete in a non-material respect; i.e., an inaccuracy or omission that a reasonable person would not find to be a misrepresentation of the Tenderer s technical or financial capabilities or Qualifications. However, the Tenderer may be disqualified if he fails to remedy such deficiencies promptly upon request by the Executing Agency. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 14

24 Qualification for the Concession Contract for the Development of the Lower Turkwel Irrigation Project 7 SECTION II - QUALIFICATION DATA SHEET 7.1 General ITT 6.1.1: The Employer is; Kerio Valley Development Authority KVDA Plaza,Oloo Street PO Box Eldoret, Kenya Tel ITT 6.1.1: The name of the project is: Development of Lower Turkwel Irrigation Project ITT Under a BT (EPC) arrangement the Investor shall finance, design, construct and transfer the irrigation infrastructure and related infrastructure. The Investor shall also finance monitoring and evaluation and project related training of counterpart staff overseas. Social infrastructure such as schools [for primary and secondary education] and health facilities [dispensary] will also be funded and developed by the Government of Kenya. The Government of Kenya will provide sovereign guarantees relating to this project. The estimated / tentative cost of the project (for the purpose of the Qualification) may be considered as US$ xxxx Million (from feasibility report). ITT The Tenderers are encouraged to have Consortium/ Joint Venture arrangements with a financial institution or a sponsor to meet the financial and equity requirements of the Project. The Tenderer must have design capabilities either in-house or through Consortium / JV arrangements with Design Consultants to meet the State of the Art Design requirements of the Project. The parties in JV shall be jointly and severally liable. Maximum number of partners in the JV shall be no limit ITT The Construction Company must have successfully completed several projects of a similar nature over the previous 10 years The Design Consultants must have successfully completed several projects of a similar nature over the previous 10 years Whereas in case of any other firm being the JV Partner in the capacity of sponsor engaged for equity requirements shall be required to be registered with Registrar of Companies Kenya. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 15

25 Qualification for the Concession Contract for the Development of the Lower Turkwel Irrigation Project 7.2 Contents of the Qualification Document ITT The Managing Director Kerio Valley Development Authority KVDA Plaza,Oloo Street PO Box Eldoret, Kenya Tel Preparation of Tenders ITT 6.3.2: ITT 6.3.7: The language of the application as well as of all correspondence is English. 2 No copies 7.4 Submission of Tenders ITT 16.1: The last date for submission of Tender is Thursday 19 th May 2016 at 12.00Noon at the address mentioned above. [ITT 6.4.2] Submission of Tenders shall be to: The Managing Director Kerio Valley Development Authority KVDA Plaza, Oloo Street PO Box Eldoret, Kenya Tel Number of copies shall be: One (1) original and two (02) copies. Tenderers shall also submit one electronic copy in PDF Format with the Application in CD. 7.5 Procedures for Evaluation of Tenders ITT At this time the Employer does not intend to execute certain specific parts of the Works by subcontractors selected in advance. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 16

26 8 SECTION III - QUALIFICATION CRITERIA AND REQUIREMENTS This Section contains all the methods, criteria, and requirements that the Employer shall use to evaluate tenders. The information to be provided in relation to each requirement and the definitions of the corresponding terms are included in the respective Tender Forms. 8.1 Summary of Evaluation Criteria Eligibility: All Tenderers are obliged to meet these conditions to qualify Registration Certificate from the Registrar of Companies in the tenderer s Country [as applicable] One Tenderer [single or lead firm / one application] Not having been declared ineligible / blacklisted by any Employer (Affidavit) Technical Qualifications: [A Maximum of Sixty (60) Marks] Business Structure:.10 Marks Bio Data Professional Personnel Physical resources Performance of the Tenderer:.10 Marks Performance of the Firm or any of his JV Partner on his past or on-going works Resolved/Pending litigation Experience:.40 Marks General Construction & Management Experience Specific Construction experience Specific Management experience of BT (EPC) projects Specific Design experience 05 Marks 10 Marks 15 Marks 10 Marks The Tenderer is encouraged to have Consortium arrangements with a Design Consultant to meet State of the Art Design requirements of the Project Financial Qualifications: (a maximum of Forty (40) Marks) Financial Qualifications: 40 Marks Audited Balance Sheet is required to be submitted for the last 3 years. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 17

27 Ability to Secure 100% Loan Average Annual Turnover Letter of Intent from a financial institution to secure loan 15 Marks 5 Marks 20 Marks The Tenderers are encouraged to have Consortium arrangements with other financial organization/ Institution, to meet the 100% loan requirements Negotiations The total marks for Technical and Financial Qualifications is 100 Marks. The Tenderer/Tenderers who shall score a combined technical and financial score of 60% and above shall be invited to the second stage of tendering where after evaluation the tenderer with the highest marks shall be called for negotiations for entering into a Concession Contract. If the negotiations are unsuccessful the next ranked Tenderer shall be called and so forth. The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 18

28 Qualification for the Concession Contract for the Development of Lower Turkwel Irrigation Project 8.2 Detailed Narrative of Evaluation Criteria: Eligibility: 1. Eligibility No. Subject Requirement 1.1 Legal Status of Company Registration Certificate from Registrar of Companies in the tenderer s country in accordance with ITT Clause or Valid registration of company with Registrar of Companies in the tenderer s Country along with submitted Annual Reports of the last three years. 1.2 A Tenderer (single entity) or lead Partner [contractor or sponsor] shall submit only one application in the same Qualification process, either individually or as a JV partner. Refer to Clause for details. 1.3 Ineligibility Not having been declared ineligible / b l a c k l i s t e d by any Employer (Affidavit). Compliance Requirements Single Entity JV Maximum Marks Yes/No The eligibility of single entity or all the JV partners shall be evaluated separately. [Each partner must meet the eligibility otherwise his application shall not be considered for further evaluation] Forms to Be Filled Form- ELI-1.1 ELI-1.2 Tender submission form Tender submission form The Development of Lower Turkwel Irrigation Project KVDA/RFP/37/ Page 18

29 8.2.2 Technical Qualification (Sixty-60 Marks) -Business Structure -Performance -Experience (10 Marks) (10 Marks) (40 Marks) 2. Business Structure No. Subject Requirement 2.1 Bio Data o Legal Name of the Firm(s) o Detailed address(es) o Description of the firms organisations and activities o Company Brochures or any other similar information 2.2 Professional Personnel o o Number and classification of full time and part time Employees expected to be assigned on the project if awarded. The personnel, for all the following activities shall be evaluated considering their qualifications and experience: Design Construction Finance Management (BT) Compliance Requirements Single Entity Must meet Must meet JV Each partner must provide the information Each partner must meet Maximum Marks 10 Marks Forms to Be Filled Along with attachments Tenderer information Form- BS Marks Form- BS Physical Resources o o In addition to the above the Tenderer must l i s t h i s physical resources [including equipment and availability] to execute the said project. The equipment required for the project and available with the firm must be listed down or any proposed arrangement, if required. Must meet Each partner must meet Form- BS-2.3 The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 19

30 3. Performance of the Tenderer No. Subject Requirement 3.1 Performance of the Tenderer 3.2 Disputes, Arbitration and Litigation The performance of the Tenderer on all completed and ongoing projects shall also be checked. If poor performances are undeclared but are found, then not only zero (0) mark shall be awarded but the Tenderer may also be declared as ineligible or disqualified. A Tenderer involved in DAB, DRB, Arbitration or Litigation with his employer on his past projects shall provide full details and their outcome, or a certificate of no DAB, DRB, Arbitration or Litigation in past. Compliance Maximum Forms to Requirements Marks Be Filled Single JV Along with Entity 10 Marks attachments Each partner Form- Must Must meet PER 3.1 meet Each partner Form- Must Must meet PER 3.2 meet + an fidavit af The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 20

31 4. Experience No. Subject Requirement 4.1 General Construction and Management Experience Experience under construction contracts in the role of Contractor, or Management Contractor for at least the last Ten (10) years prior the application submission deadline. Note: Letter of Award / Acceptance and Completion Certificate must be Provided with the Documents. Compliance Requirements Single Entity Must meet JV Each partner Must meet Maximum Marks 10 Marks Forms to Be Filled Along with attachments 05 Marks Form- EXP Specific Construction Experience The Tenderer [Contractor for the Construction Works] must have successfully executed and completed at least three (03) contracts within the last Ten (10) years. The contracts must be similar to the proposed works. The similarity shall be based on the physical size, complexity, methods / technology or other characteristics i.e. Dam size and type, tunnel construction > 5km, underground power house cavern, installation of HEPP plant and so forth. Note: Letter of Award/ Acceptance and Completion Certificate must be provided with the Documents. Must meet Any one partner (each Contractor partner) must meet 15 Marks Form- EXP Specific Experience of Management of BT Projects The Tenderer or any of the parties must have successfully and substantially completed at least three (03) Contracts within the last Ten (10) years, in the capacity of BT Management party. Must meet Any one partner must meet 10 Marks Form- EXP Specific Design Experience The Tenderer or any of the parties must have the experience of designing similar projects. The Design skills shall be evaluated in detail. In this aspect the Tenderer is encouraged to have a design consultant to meet the state of the art design requirements of the project. Must meet Any one partner must meet 10 Marks Form- EXP-4.4 The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 21

32 8.2.3 Financial Qualifications (Forty-40 Marks) -100% Loan Requirements [15 Marks] -Average Annual Turnover [5 Marks] -Letter of Intent form a Financial Institution [20 Marks] Compliance 5. Financial Qualifications Requirements Single No. Subject Requirement JV Entity Submission of audited balance sheets, for the last five (5) years to demonstrate: The current soundness of the Tenderer s financial position and his prospective long term profitability, to evaluate; Maximum Marks 40 Marks Forms to Be Filled Along with attachments 5.1 Financial Requirements [100%] The Tenderer is required to provide the evidence of finance available amounting to 100% estimated cost of the project. For this purpose the Tenderer can evidence it either by producing an insurance bond of the same amount or by establishing that the Net Worth / Working Capital/ Running Capital is of same amount. Must meet Contractor partners Must meet in combined 15 Marks Form- FIN Average Annual Turnover The Average annual Turnover for the last five (5) years of the Tenderers shall also be analysed to evaluate the financial soundness of the firm. Must meet Any one partner (each Contractor partner) Must meet 5 Marks Form- FIN Letter of Intent from a Financial institution to secure loan (for 100% of project cost) The Tenderer is required to produce a Letter of Intent from a Financial Institution as evidence to secure loan from the Financial Institution for the 100% of the project cost. This Letter of Intent must be Project and Party specific and must be designed to evidence the success of the future Financial Close to be submitted by the Tenderer for the project if awarded. Must meet Any one partner must meet 20 Marks Form- FIN-5.3 The Development of Lower Turkwel Irrigation Project KVDA/RFP/29/ Page 22