Invitation for bids

07 November 2018

Country: Republic of Armenia

Project Name: Irrigation System Modernization Project (ISMP)

EDB Credit: Date of signing 16.10.2015

Contract Title: “Rehabilitation of Main and Secondary Canals under the Irrigation System Modernization Project” (comprising of 3 lots)

Package Ref No.: ISMP/ICB/CW-17/001

1. The Republic of Armenia has received financing from the Eurasian Fund for Stabilization and Development (Anti-Crisis Fund) toward the cost of the Irrigation System Modernization Project (ISMP), and intends to apply part of the proceeds toward payments under the contracts for

  • Lot 1: “Rehabilitation of the Gogt canal; left and right branches of the Kassakh irrigation system; Dvin canal; Artashat canal N49; Voskevaz main canal; left branch canal of Zeytun-Haktanak Stage 2 pumping station; left branch canal of Zeytun-Haktanak Stage 3 pumping station” (Ref#ISMP/ICB/CW-17/001-1);
  • Lot 2: “Rehabilitation of the end-tail section of Mrgashat canal; Margara canal; Lower Hrazdan canal 2nd stage 5th branch; Hatsik 10 distributor; R-6 and R-4 distributors; MKH-3 and MKH-7 distributors of Talin main canal”, (Ref#ISMP/ICB/CW-17/001-2); and
  • Lot 3: “Rehabilitation of the Sayat-Nova, Arbat and Shah -Arkh canals; outlet canals of Araks-Jrarat pump station and Aratashen pump station; Areg canal”, (Ref#ISMP/ICB/CW-17/001-3).

These contracts will be jointly financed by the Eurasian Development Bank and Government of the Republic of Armenia. Bidding process will be governed by the Eurasian Development Bank according to World Bank’s rules and procedures (Guidelines for “Procurement of goods, works, and non-consulting services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers”, January 2011, revised as of July, 2014).

2. The “Water Sector Projects Implementation Unit” SA (WSPIU SA) now invites sealed bids from eligible bidders for the following works: earth works; concrete works, pipes; pipe fittings; metal constructions; insulation works etc (as per BOQs).

The construction sites are located at

Lot#1:

  • Dvin canal (at a distance of 40 km from Yerevan, and 13 km from Artashat railway station; nearest settlements – Upper Dvin and Lower Dvin)
  • Goght canal (at a distance of 55km from Yerevan and Yerevan railway station; nearest settlement– Goght)
  • N49 divider of Artashat canal (at a distance of 20km from Yerevan, and 6km from Masis railway station; nearest settlement – Deghdzut)
  • Voskevaz main canal (at a distance of 30 km from Yerevan and Yerevan railway station; nearest settlements – Voskeevaz and Parpi)
  • Right branch of Kasakh irrigation system (at a distance of 30 km from Yerevan and Yerevan railway station; nearest settlement – Ushi)
  • Left branch of Kasakh irrigation system (at a distance of 35 km from Yerevan and Yerevan railway station; nearest settlement – Yeghvard)
  • Left branch of the canal of Zeytun-Haghtanak II-stage pump station (at a distance of 220 km from Yerevan, and 15km from Ayrum railway station; nearest settlements – Haghtanak, Lktchadzor and Ptghavan)
  • Left branch of the canal of Zeytun-Haghtanak III-stage pump station (at a distance of 230 km from Yerevan, and 15km from Ayrum railway station; nearest settlements – Artchis and Deghdzavan)

Lot#2:

  • The end-tail section of Mrgashat canal (at a distance of 54 km from Yerevan, and 6 km from Armavir railway station; nearest settlements – suburbs of Mrgashat and at the distance of 1km)
  • Margara Canal (at a distance of 48 km from Yerevan, and 24 km from Armavir railway station; nearest settlements – Margara, Pshatavan, Janfida suburb and the area of Arazap village)
  • Lower Hrazdan, II stage, 5th branch (at a distance of 32 km from Yerevan, and 21 km from Armavir railway station; nearest settlements – Aknalich and Arshaluis up to 3km)
  • R-4 and R-6 Distributors of Talin Main Canal (at a distance of 70 km from Yerevan, and 27 km from Armavir railway station; nearest settlements – Baghramyan and Shenik up to 3km)
  • MKH-3 Distributor of Talin Main Canal (at a distance of 75 km from Yerevan, and 36 km from Armavir railway station; nearest settlement – Arteni up to 2km)
  • MKH-7 Distributor of Talin Main Canal (at a distance of 62 km from Yerevan, and 20 km from Armavir railway station; nearest settlement – Dalarik up to 2km)
  • 10th distributor of the Hatsik Canal (at a distance of 52 km from Yerevan, and 9 km from Armavir railway station; nearest settlement – Hatsik suburb up to 2km) 

Lot#3:

  • Sayat Nova canal (at a distance of 17 km from Yerevan, and 6.5 km from Masis railway station; nearest settlements – Dashtavan, Darakert, Ghukasavan – at the distance up to 2 km)Arbat Canal (at a distance of 12 km from Yerevan and Yerevan railway station; nearest settlement – Azatashen at the distance up to 1 km)
  • Outlet canal of Araks-Jrarat pump station (at a distance of 32 km from Yerevan, and 18 km from Masis railway station; nearest settlements – Jrarat, Araks at the distance up to 1.5-2.5 km)
  • Outlet canal of Aratashen pump station (at a distance of 32 km from Yerevan, and 23 km from Armavir railway station; nearest settlements – Griboyedov, Khoronk)
  • Shah -Arkh canals (at a distance of 25 km from Yerevan and Yerevan railway station; nearest settlement – Mrgastan, Tsaghkunk at the distance up to 1.5 km)
  • Areg Canal (at a distance of 80 km from Yerevan; nearest settlement – Tatul up to 5 km) 

The duration of construction works for each lot: 18 (eighteen) months including vegetation period (note: during vegetation season when civil works are impossible, a Technological Break will be arranged with the Contractor(s). Usually the irrigation season starts in April and ends in October. Therefore, construction works on most of the canals will be ceased from the beginning of May until the end of October and may be restarted in the beginning of November).     

Qualifications requirements include (but not limited to*): 

Minimum average annual construction turnover, calculated as total certified payments received for contracts in progress and/or completed within the last 5 (five) years (2013-2017), divided by 5 (three) is:

  • Lot#1: AMD 750,000,000 (or its equivalent in freely convertible currency);
  • Lot#2: AMD 1,350,000,000 (or its equivalent in freely convertible currency); and
  • Lot#3: AMD 1,300,000,000 (or its equivalent in freely convertible currency). 

The Bidder shall demonstrate that it has access to, or has available, liquid assets, unencumbered real assets, lines of credit, and other financial means (independent of any contractual advance payment) sufficient to meet the construction cash flow requirements estimated as:

  • Lot#1: AMD 165,000,000 (or its equivalent in freely convertible currency) net of the Bidders other commitments;
  • Lot#2: AMD 297,000,000 (or its equivalent in freely convertible currency) net of the Bidders other commitments; and
  • Lot#3: AMD 290,000,000 (or its equivalent in freely convertible currency) net of the Bidders other commitments 

Participation in at least 1 (one) contract for each lot as a prime contractor, joint venture member, management contractor or sub-contractor between 1st January 2013 and application submission deadline, that have been satisfactorily and substantially completed in construction of irrigation systems (such as water intakes, main and secondary canals, diversion canals, irrigation pipeline):

  • Lot#1: with a value of at least AMD 600,000,000 (or its equivalent in freely convertible currency);
  • Lot#2: with a value of at least AMD 1,000,000,000 (or its equivalent in freely convertible currency); and
  • Lot#3: with a value of at least AMD 1,000,000,000 (or its equivalent in freely convertible currency). 

Participation in the above and in any other contracts completed and/or under implementation as prime contractor, joint venture member, management contractor or sub-contractor during the period stipulated between 1st January 2013 and application submission deadline, with a minimum construction experience in the following key activity successfully completed: 

Lot#1:

  • Earthworks: at least 12,800m3 (in any year within the period stated above);
  • Hydrotechnical concrete -1,000m3 (in any year within the period stated above); and
  • Pipelines – at least 3,300m with minimum pipe diameter D=400mm (in any year within the period stated above)

Lot#2:

  • Earthworks: at least 6,000m3 (in any year within the period stated above);and
  • Hydrotechnical concrete: at least 7,500m3 (in any year within the period stated above).

Lot#3:

  • Earthworks: at least 16,000m3 (in any year within the period stated above);and
  • Hydrotechnical concrete: at least 5,000m3 (in any year within the period stated above). 

The required key activity for each type of works (earth, concrete and pipe works) may be demonstrated in one or more contracts (no more than three) combined if executed during same time period. 

To be qualified for two or three lots (contracts), Bidders must meet the sum of requisites of two or three lots (contracts). 

A margin of preference for eligible national contractors/joint ventures shall not be applied. 

*More details for qualification requirements are provided in the Bidding Document (Section III. Qualification Criteria and Requirements). 

Bidders may bid for one or several lots (contracts), as further defined in the bidding document. Bidders wishing to offer discounts in case they are awarded more than one contract will be allowed to do so, provided those discounts are included in the “Letter of Bid”. 

3. Bidding will be conducted through the International Competitive Bidding procedures as specified in the World Bank’s Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers [January 2011,revised as of July 2014] (“Procurement Guidelines”), and is open to all eligible bidders as defined in the Procurement Guidelines. In addition, please refer to paragraphs 1.6 and 1.7 setting forth the World Bank’s policy on conflict of interest. 

4. Interested eligible bidders may obtain further information from WSPIU SA office (Mr.Samvel Karapetyan – Planning and Design Engineer. Tel:(+37441) 111-402; email: skarapetyan@wsdp.am) and inspect the bidding documents during office hours 10:00 to 17:00 at the address given below. 

5. A complete set of bidding documents (only in electronic format) in English may be obtained by interested eligible bidders free of charge upon the submission of a written application* to the address below (the bidding documents will be delivered to the interested bidders via file transfer system. 

6. Bids must be delivered to the address below on or before December 20, 2018; 15:00 (Yerevan time). Electronic bidding will not be permitted. Late bids will be rejected. Bids will be publicly opened in the presence of the bidders’ designated representatives and anyone who choose to attend at the address below on December 20, 2018; 15:10 (Yerevan time). 

7. All bids must be accompanied by a Bid Security (Bank Guarantee) in amount of:

  • Lot#1: AMD 22,000,000.00 or its equivalent in freely convertible currency at the exchange rate of the Central Bank of RA as of Bid Security issuance date;
  • Lot#2: AMD 40,000,000.00 or its equivalent in freely convertible currency at the exchange rate of the Central Bank of RA as of Bid Security issuance date; and
  • Lot#3: AMD 39,000,000.00 or its equivalent in freely convertible currency at the exchange rate of the Central Bank of RA as of Bid Security issuance date. 

8. The address referred to above is: 

“Water Sector Projects Implementation Unit” State Agency

Attn.: Mr. Tigran Kalantaryan – Acting Director

Mr. Martin Charyan - Procurement Coordinator

Vardanants Blind Alley 8 (5th floor), Yerevan 0010, Republic of Armenia

Tel: (+37410) 52-25-50 (reception); (+37410) 56-03-62 (procurement department)

*E-mail (for written application): tkalantaryan@wsdp.am; copy to: mcharyan@wsdp.am

Web site: www.piu.am

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