Tender specification Procurement of maritime transport services on the Bergen-Kirkenes-Bergen route 29 June 2010

Transcription

1 THE ROYAL MINISTRY OF TRANSPORT AND COMMUNICATIONS Tender specification Procurement of maritime transport services on the Bergen-Kirkenes-Bergen route 29 June 2010

2 2 Contents 1. Information about the invitation to tender Competition Legal basis Design and content of the tender Deviations from the tender specification Revoking and amending the tender Timely submission of the tender Rejection Rejection due to conditions relating to the tender Rejection due to conditions relating to the licence applicant Supplementary deadline for submission of documents Negotiations and clarifications Principles for communication Freedom of information Duty of confidentiality Provisions concerning transfer of ownership Cancellation of the competition etc Choice of tender Requirements regarding licence applicants' qualifications General considerations Organisational conditions Experience of the carriage of passengers Financial and accounting conditions Status of tax payments and VAT payments Accounting separation Information about the assignment and requirements specification General Key information about the procurement Ports, sea routes and navigational certificates Vessels Information about the vessels Safety Management Certificates Insurance... 16

3 Transport capacity and passenger certificate Passenger facilities Accessibility Flag state Crew Route schedule Services and information for travellers Provision of security Reporting Statistics Accounting reporting and control measures Draft contract for the procurement of services on the Bergen-Kirkenes coastal route Annex A Document list... 30

4 4 1. INFORMATION ABOUT THE INVITATION TO TENDER The Ministry of Transport and Communications (the "contracting authority") invites open competitive bidding for operation of the Bergen-Kirkenes coastal route for a period of 8 years (with an option of a one-year extension). Commencement is 1 January 2013 at the latest. The commencement date must be specified in the tender. The public procurement of services for the Bergen-Kirkenes coastal route comprises a transport service for passengers travelling locally, within the region or between regions between specified ports of call ("port-to-port passengers") and a freight transport service for the Tromsø-Kirkenes, Kirkenes-Tromsø stretch of the route. The capacity requirements for the procurement are described in detail in chap. 4. The procurement is announced as three alternatives; see chap As long as it is consistent with fulfilment of the public procurement, the supplier may offer other travel products and freight transport services that fall outside of the public procurement. The definition of the term "port-to-port passengers" is provided in chap. 5. Draft contract, 2. If travel products and/or port calls are offered that fall outside of the public procurement, this must be specified in the tender. There are then special requirements imposed for the formulation of the bid; see chap. 2, for establishing accounting systems; see chap. 3 and for reporting; see chap. 4. Reference is also made to the draft contract in chap. 5. The Ministry of Transport and Communications is the licensing and subsidisation authority for the route. The award of licences is regulated by the Professional Transport Act No. 45 of 21 June 2002; see 7. The licence will be awarded following a tendering process; see the Professional Transport Act 8, and the Regulation on Tendering for Local Public Transport of 26 March 2003, No A received tender is also considered to be an application for a licence to operate the coastal route, and is awarded for the same period for which the contract applies. For the duration of the contract term, the contracting authority undertakes not to sign contracts for the procurement of similar services on the Bergen-Kirkenes route with parties other than the operator(s) selected through this competition, as long as the coastal route is in ordinary operation. The contract and the licence will be awarded for a period of 8 years. The deadline for submitting tenders is 30 September The tender deadline is also specified in the announcement, which is published at doffin.no. The invitation to tender is also advertised on Lloyd s List and on the website of the Ministry of Transport and Communications. The competition presupposes that a net contract will be signed, i.e. that the licensee will be responsible for both revenues and costs during the contract term. The licensee will received fixed contractual remuneration. The contracting authority has the option of extending the contract by up to one year based on the same conditions as specified in the contract. The contracting authority shall notify the licensee at least one year before expiry of the contract if this option is to be utilised.

5 5 The competition rules are described in chap. 2. Requirements for the licence applicant's qualifications are stated in chap. 3. A description of the assignment with associated requirements specification is given in chap. 4. A draft contract between the parties appears in chap. 5. For information about the tender deadline, opening of tenders and bid acceptance deadline, see the announcement in DOFFIN and TED.

6 6 2. COMPETITION 2.1 Legal basis The most important provisions governing the competition are: The Act concerning professional transport by motor vehicles and vessels of 21 June 2002 No. 45 Regulation on Professional Transport by Motor Vehicle and Vessel of 26 March 2003 No Regulation on Tendering for Local Public Transport of 26 March 2003 No. 400 If, after expiry of the tender deadline, there proves to be only one licence applicant to have submitted a tender or there is otherwise insufficient competition, the contracting authority reserves the right to make use of subsequent negotiations; see Regulation of 26 March 2003 No. 400, 5, 2nd para. In connection with such negotiations, no significant changes may be made to the original tender conditions. It is presupposed that licence applicants familiarise themselves with the general acts and regulations that may affect the contractual relationship between the contracting authority and the licensee. 2.2 Design and content of the tender (1) The tender shall be made using annex B Tender form, combined with a binding offer letter. The tender shall be dated and signed. (2) The tender shall be sent/delivered in a sealed, neutral envelope to the Norwegian Ministry of Transport and Communications, Akersgata 59, Postboks 8010 Dep, 0030 OSLO, Norway. The envelope shall be marked "Åpnes kun av adressat, saksnummer: 10/218. Tilbud: Kystruta Bergen Kirkenes". (3) The tender shall be in Norwegian. One copy of the tender shall be on paper. (4) The same tender shall also be submitted electronically in PDF format. Annex D Budget shall be supplied as a spreadsheet. In the event of any discrepancy, the tender submitted on paper shall prevail. (5) Documents to be enclosed with the tender are shown in annex A. (6) The contracting authority shall assess three different alternatives for the assignment; see item 4.1. Licence applicants shall submit tenders for the advertised alternatives such that a tender for alternative 1) also requires submission of a tender for alternatives 2) and 3), and a tender for alternative 2) requires a tender for alternative 3). A tender may be submitted for alternative 3) alone. (7) If the licence applicant plans to operate other activities using the same vessels as for public procurement for the Bergen-Kirkenes coastal route, in addition to annex D1 "Consolidated budget for the Bergen-Kirkenes coastal route", a separate annex D2 "Budget for contract for public procurement for the Bergen-Kirkenes coastal route" shall also be submitted.

7 7 The principles for accounting separation for the allocation of revenues and costs between public procurement and other activities are shown in annex C. 2.3 Deviations from the tender specification (1) If the tender is intended to deviate from the tender specification, including if provisos are made, this shall be specified in annex B Tender form. Deviations shall be specified in a separate annex, or alternatively reference shall be made to where in the tender the deviations are described. They shall be precise and unambiguous, and described such that the contracting authority can evaluate the deviations without contacting the licence applicant (2) Provisos shall, as far as possible, be priced. Provisos which are not priced will be costed (or estimated) by the contracting authority when selecting a tender (3) Alternative tenders will not be accepted. 2.4 Revoking and amending the tender (1) The tender may be revoked or amended before the tender deadline expires. (2) Revocation must be in writing. (3) An amended tender is to be considered as a new tender and shall be formulated in accordance with item Timely submission of the tender The tender is submitted on time if it arrives at the Ministry of Transport and Communications' address before expiry of the tender deadline. Tenders which arrive late will be processed in accordance with 9 of the Regulation on Tendering for Local Public Transport. 2.6 Rejection Rejection due to conditions relating to the tender (1) A tender shall be rejected if: a) it is not submitted in time; see item 2.5 b) it is not submitted in compliance with items 2.2 (1),(2),(3),(6) and (7) (2) A tender may be rejected if: a) due to provisos or errors, ambiguities, incompleteness or similar, there may be doubt as to how the tender is to be assessed relative to the others b) it does not include all the necessary information and obligations

8 8 c) it does not state a requirement for an annual contract sum; see annex D Budget d) the licence applicant is unable to commence operations by the defined date as specified in the announcement e) it is abnormally low b) it is not submitted in compliance with items 2.2 (4) and (5) Rejection due to conditions relating to the licence applicant (1) The contracting authority shall reject licence applicants who do not fulfil the requirements defined for licence applicants' participation in the competition described in chap. 3. If a supplementary deadline is granted in accordance with item 2.7, the rejection obligation presupposes that such a supplementary deadline has expired. (2) The contracting authority may reject licence applicants who: a) have not submitted the documentation as defined in chap. 3. If a supplementary deadline is granted in accordance with item 2.7, the option to reject presupposes that such a supplementary deadline has expired. b) in their profession, have been guilty of serious failings in professional and ethical requirements in their sector c) have given grossly misleading or erroneous information, or have omitted to provide information for which a requirement is made; see chap Supplementary deadline for submission of documents If a licence applicant has not submitted documentation as presupposed in chap. 3 of the tender specification, the contracting authority may grant a short supplementary deadline for submission of these documents. 2.8 Negotiations and clarifications (1) It is not permitted to amend the tenders or attempt to amend them through negotiations. (2) The following clarifications of the tenders are permitted: The contracting authority may obtain further details from licence applicants in order to have ambiguities in the tenders clarified, as long as the ambiguities are not of such a nature that the tenders should be rejected in accordance with item 2.6. (3) If the contracting authority becomes aware of obvious errors in the tender, these will be corrected if there is no doubt as to how the errors should be corrected. Other obvious errors are to be assessed in accordance with item Principles for communication All communication concerning the competition shall be in writing in Norwegian and addressed to the contracting authority's contacts as specified in the announcement. In order to ensure equal treatment of all licence applicants, all questions and answers between licence applicants and the contracting authority will be numbered and distributed to everyone who has registered an interest in the competition.

9 9 In its answers, the contracting authority will not reveal who has posed the question. The contracting authority will not normally respond to enquiries that arrive fewer than 10 days before the tender deadline. If the contracting authority distributes replies to a question which has arrived fewer than 10 days before the tender deadline, the tender deadline will generally be extended correspondingly Freedom of information In respect of public access to tenders and procurement protocols, Act No. 16 of 19 May 2006 relating to the right of access to documents held by public authorities and public undertakings applies. Confidential information will be exempt from public disclosure. Access may also be restricted pursuant to the Freedom of Information Act chap Duty of confidentiality The contracting authority and its employees are obliged to prevent others gaining access to or knowledge of information about technical facilities and procedures or operational and commercial matters that will be important for competitive reasons to keep secret in respect of what the information concerns. The Public Administration Act's other rules concerning confidentiality also apply Provisions concerning transfer of ownership Pursuant to the Professional Transport Act 8, 2nd para., the competition is subject to the rules in the Working Environment Act 16-2 to 16-7, concerning the rights of employees in the event of transfer of ownership. The contracting authority shall inform those wishing to participate in the competition about how many employees the present licensee has linked to the root production that the competition relates to, along with their ages, seniority and pay and working conditions. Information about the above may be obtained by contacting the contracting authority no fewer than 10 days before the tender deadline. The order worded thus: "Viser til konkurranseutsetting av kystruta Bergen-Kirkenes. Jeg ber om oversikt over ansatte hos nåværende løyvehaver." is to be sent by to: postmottak@sd.dep.no Cancellation of the competition etc. The contracting authority may cancel the competition with immediate effect in the case of a justifiable reason.

10 10 The contracting authority may reject all the tenders if the outcome of the competition reasonably justifies this Choice of tender The contracting authority reserves the right to choose freely between the tendered alternatives. The choice will be made on the basis of an assessment of the price level of the different alternatives compared with the differences in frequency the various alternatives represent. Once an alternative has been selected, the contracting authority will choose the tender that offers the lowest price for the entire contract term (at 2011 prices). The agreed remuneration will be stated exclusive of value-added tax.

11 11 3. REQUIREMENTS REGARDING LICENCE APPLICANTS' QUALIFICATIONS 3.1 General considerations Below are set out requirements for the suppliers in order to ensure fulfilment of the legal requirements for licences, and that the suppliers are suitable for fulfilling the contract. How the requirements are to be documented is described in the provisions below and in annexes B, F and L. If two or more suppliers wish to submit a tender jointly, the contracting authority assumes that the suppliers personally satisfy themselves that this is not contrary to the rules in the Competition Act No. 12 of 5 March Organisational conditions Requirement: The licence applicant shall be a legally established enterprise. Documentation requirement: Norwegian enterprises shall attach a certification of registration. The contracting authority reserves the right to obtain details from the Brønnøysund registers. For licence applicants applying on behalf of companies in the process of being founded, a memorandum of incorporation shall be attached. Foreign enterprises shall attach evidence that the enterprise is registered in a sectoral register or register of enterprises as prescribed in the legislation of the country where the supplier is established. Requirement: The licence applicant shall have a functioning HSE system. Documentation requirement: The licence applicant shall provide self-certification of the company's HSE activities. Requirement: The licence applicant shall be of good repute. This requirement is not considered to be fulfilled if the applicant: a) has been deprived of the right to engage in business, or b) has been sentenced for a serious offence, including in the commercial domain, or c) has been sentenced for serious violations of applicable provisions concerning drivers, driving and rest periods, commercial vehicles' weight and dimensions, traffic and vehicle safety, pay and working conditions within the transport profession and environmental regulations.

12 12 For further information, see the Regulation on Professional Transport by Motor Vehicle and Vessel 6 and 10, and the Regulation on Tendering for Local Public Transport 16 c). Documentation requirement: The licence applicant shall attach a police certificate not older than three months. The police certificate shall be issued for the managing director if the applicant is a legal person. Requirement: The licence applicant shall be approved for safety management. Documentation requirement: In annex B, the licence applicant shall provide a declaration that the applicant has a valid Document of Compliance (DOC) for safety management. 3.3 Experience of the carriage of passengers Requirement: Key persons employed by the licence applicant shall have adequate experience of the carriage of passengers at sea. Documentation requirement: The licence applicant shall complete a list of relevant experience as specified in annex F. 3.4 Financial and accounting conditions Requirement: The licence applicant shall have the satisfactory financial capability to undertake the assignment. Documentation requirement: The licence applicant shall attach a warranty statement (a declaration of acceptance from a bank/insurance company is sufficient until signing of the contract) in accordance with the Regulation on Professional Transport by Motor Vehicle and Vessel 7. This means that a warranty statement for NOK must be provided for the first vessel in Norway. A warranty of NOK shall be provided for each individual vessel in service beyond this. The licence applicant shall produce a declaration of acceptance from a bank/insurance company concerning security for its contract obligations. The security shall be provided without undue delay after signing of the contract, and within one month at most; see item 4.8 in the tender specification. The security shall constitute 15% of the state's annual procurement at any time. A credit assessment/rating which is not older than one year based on the last known accounting figures. A rating shall be performed by an accredited rating institution.

13 13 If the supplier has valid reasons for being unable to produce a credit assessment, he may declare his economic and financial situation using any other document acceptable to the contracting authority. The licence applicant shall attach a certificate from the register of bankruptcies that the company is not in bankruptcy proceedings etc.; see annex B. 3.5 Status of tax payments and VAT payments Requirement: The licence applicant shall not have significant overdue, unpaid, fee, duty or tax arrears. Documentation requirement: Tax certificate and VAT certificate not older than three months. A tax certificate and certificate of VAT paid is to be issued either by the local tax office or the tax collection office where the supplier has his head office. See: ( Licence applicants with company addresses in other countries shall produce equivalent certificates. If the licence applicant's home country does not issue such certificates, they can be substituted with a declaration from a judicial or administrative authority in the country of domicile or present country of establishment. The certificates or declarations must be in Norwegian or English. Any certificates in another language shall be accompanied by an authorised translation into Norwegian. 3.6 Accounting separation Requirement: For licence applicants who plan to perform other activities using the same vessels as are used in connection with the public procurement, accounting separation is required. The requirement for accounting separation will also apply if other activities are performed by the shipping company without using the same vessels as for the public procurement. Documentation requirement: The licence applicant shall certify the above by issuing a declaration; see annex L.

14 14 4. INFORMATION ABOUT THE ASSIGNMENT AND REQUIREMENTS SPECIFICATION 4.1 General The assignment applies to the procurement of maritime transport services for the Bergen- Kirkenes route. The present operator informs that, based on the existing schedule (excluding sailing to Geiranger), the distance Bergen-Kirkenes-Bergen totals 4900 km; see annex K Sailing distances. The assignment is advertised for a period of eight years, as three alternatives: Alternative 1: Daily sailing throughout the year to 34 ports Alternative 2: Sailings 7 days a week in summer (8 months), 5 days a week in winter (4 months), to 34 ports Alternative 3: Sailings 5 days a week throughout the year to 34 ports The competition is announced with a commencement date no later than 1 January Tenderers are requested to advise the earliest possible commencement date.

15 Key information about the procurement The state shall procure maritime transport services for the Bergen-Kirkenes, Kirkenes- Bergen route and to 32 intermediate ports for a period of 8 years, commencing no later than 1 January The state currently procures maritime transport services from Hurtigruten ASA for an equivalent route. Annexes H, I, J and K contain statistics for the existing production. Annex H Schedule shows the schedule for the existing production. The public procurement does not include sailings to and from Geiranger. Fares for port-to-port passengers shall be approved by the contracting authority. An approved tariff is taken to be the normal fares tariff that applied on signing the contract for the period for the Bergen-Kirkenes coastal route, i.e. the tariff as at 1 October 2004, adjusted in line with the Retail Price Index for the period May 2004 May 2010 (13.7%); see also chap 5 Draft contract, 4-3 for fare adjustments, discount schemes etc. The tariff is the maximum fares tariff. Under the existing contract, this has not been fully utilised by the supplier. Welfare discounts apply to travel tickets for port-to-port passengers. For cabins, freight transport and any other products, there is full freedom to set fares. The normal fares tariff as at 1 October 2004 is attached (annex I). Statistics for production in the present contract period (for ) appear in annexes J1, J2 and J3. Annex J1 shows the total number of passengers from and to the individual ports, while annex J2 shows the total number of passengers broken down as port-to-port passengers and other passengers (package tours). The public procurement applies to port-to-port passengers. For definitions of "port-to-port passengers" and "other passengers", see chap. 5. Draft contract, 2. Statistics for freight are shown in annex J3. Hurtigruten ASA informs that in the attached statistics a round trip is always a journey that goes into both Bergen and Kirkenes (typical examples: Bergen-Kirkenes, Kirkenes-Bergen and Bergen-Kirkenes-Bergen). This probably means that port-to-port passengers are overreported in the attached statistics in that some "other passengers" appear to have been reported as "port-to-port passengers". It is further noted that any extra sailings, such as for example the current sailings to/from Geiranger, are not part of the public procurement, and that such extra sailings are therefore counted in their entirety as other activities performed using the same vessels as for the public procurement. 4.3 Ports, sea routes and navigational certificates The licence applicants must familiarise themselves with port conditions and sea routes, and produce certificates for the waters and vessels in question. The minimum requirements are that the vessels meet the requirements for "small coasting".

16 Vessels Information about the vessels The contracting authority does not require more detailed identification of vessels in the tender. Licence applicants shall however confirm that the tendered vessels will meet requirements defined in the tender specification. This shall be confirmed in the tender form. In good time before commencement, the licensee shall produce documentation of which vessels shall be used, and confirm that they correspond with the tender. Technical data for vessels in the tender shall then be provided in annex G Safety Management Certificates The vessels shall have valid Safety Management Certificates (SMCs). The safety management systems for the vessels shall at least comply with the ISM code adopted by the UN's International Maritime Organization (IMO) and the latest accompanying guidelines on implementation of the ISM code Insurance By operational commencement, the licensee shall have taken out P&I insurance from a club associated with The International Group of P&I Clubs, as well as hull insurance. The combination of P&I insurance and hull insurance shall cover the licensee's liability to third parties, including passengers Transport capacity and passenger certificate The following minimum transport capacity requirements per vessel are defined: Passenger certificate: 320 Berth capacity: 120 Freight capacity Tromsø-Kirkenes: 150 euro pallets in a cargo hold with a normal load height Passenger facilities Facilities for passengers shall as a minimum comply with the Regulations of 2 October 1972 No. 4 concerning calculation of number of passengers and concerning passenger accommodation etc. The ships shall have satisfactory dining facilities for port-to-port passengers. This means as a minimum a cafeteria serving hot and cold dishes.

17 4.4.6 Accessibility The vessels shall satisfy the requirements for accessibility and adaptation for persons with reduced mobility in Directive 2003/24/EC, Annex III or in the Regulations concerning surveys, construction and equipment of passenger ships engaged on domestic voyages of 28 March 2000, No Vessels constructed before 1 October 2004 shall satisfy the recommendations as far as is reasonably and practicably achievable in financial terms. Otherwise, for new vessels, the requirements concerning universal design in the Regulations concerning the construction of passenger ships, cargo ships and lighters of 15 September 1992 No. 695 shall be followed. In addition the following requirements apply to new vessels: The use of contrasting colours shall be implemented in all parts of the vessel to which passengers have access. Control buttons within and outside lifts shall be identified using Braille. Lifts shall be equipped with voice announcements. The size of the lifts shall be at least 140 x 160 centimetres, and they shall have automatic doors with a passage width of at least 110 centimetres. The vessel shall have toilets adapted for disabled persons. For these toilets, the following amplifications apply beyond MSC/Circ.735: a. Height of the toilet bowl: 50 cm. b. The front of the toilet must be at least 85 cm from the back wall. c. Folding armrests on both sides must extend as far as the front of the toilet bowl. A toilet paper holder must be fitted to one armrest. d. The turning space in front of the toilet must have a minimum diameter of at least 150 centimetres. e. In the case of outward opening doors for these toilets, an extra closing handle must be fitted to the inside of the door, on the hinge side, 0.85 m above the deck. The vessel shall be equipped with facilities on board for communicating messages visually and verbally, for example concerning delays, route changes and services on board. Information concerning schedules and fares on board must have a minimum type size of 14 points. Induction loops must be fitted in all lounge areas and counter induction loops must be fitted at all service counters. Doors connecting to passenger areas must as a minimum have an interior frame width of 0.8 metres. The doors must be equipped with automatic door openers, including push buttons. There must be stepless access to all the ship's passenger areas within each deck. In addition to what is stated in MSC/Circ. 735, contrast marking shall also include contrasting colours between floors and walls in passenger areas. Stairs shall have handrails at two heights: 0.7 m and 0.9 m above the step's front edge on each side of the stairway. For existing vessels, the same requirements apply as for new vessels, with the exception of the requirement concerning lift sizes and amplifications beyond MSC/Circ. 735 for disabled toilets. When fitting new disabled toilets on existing vessels, the same amplifications to MSC/Circ. 735 apply as for new vessels as far as is practicably achievable in financial terms. 17

18 Flag state For vessels not flying the Norwegian flag, a declaration must be issued well before commencement that the Norwegian Maritime Directorate's requirements for the trade area in question are satisfied. The declaration shall be issued by a classification society recognised by the Norwegian Maritime Directorate and included with the ship's certificates. The declaration shall be kept up to date throughout the entire contract term and is to be considered as a supplement to the flag state's certification. 4.5 Crew For passenger ships on regular service between Norwegian ports, the personnel who shall instruct passengers in emergencies must have good command of English and a Scandinavian language. Personnel who shall assist passengers in emergencies must be able to be readily identifiable; see Regulation of 9 May 2003 No. 687 concerning qualification requirements and certificate rights for personnel on board Norwegian ships, fishing vessels and mobile offshore units. 4.6 Route schedule A route schedule (timetable) is required to be prepared for all submitted tenders, with starts and stops in Bergen and Kirkenes, and port calls at the 32 intermediate ports both northbound and southbound, with the exception of Vadsø where a port call is only required northbound (as in the existing timetable). For the alternatives with five-day schedules, departures are required on fixed days of the week. The present timetable for the coastal route is annexed to the tender specification for information purposes (annex H). It is specified that the public procurement does not include sailing to/from Geiranger; see chap Services and information for travellers The licensee shall provide travellers with satisfactory information about schedules, fares, statutes etc. In the event of cancellations and operations disruptions, the supplier shall appropriately provide affected parties with necessary information as early as possible, see 4-1, item 4 in the draft contract. The contracting authority presupposes that the licensee attaches importance to service and excellent customer care. The crew should be readily identifiable. Extra services shall be provided to persons with special needs.

19 Provision of security The licensee shall at his own expense furnish combined security for his contractual obligations, interest on arrears and recovery costs in the event of a breach. The security shall be provided without undue delay after signing of the contract, and within one month at most. The security shall be provided as a surety by a bank, insurance company or other credit institution. Security may also be provided by a warranty sum placed in an escrow account for the benefit of the contracting authority. The warranty shall not be terminated within six months of expiry of the contract unless otherwise agreed by the contracting authority. The guarantor's warranty shall be directly for the benefit of the other party, and shall be unrestricted except as ensues from the present provisions. The security shall constitute 15% of the state's annual procurement at any time. 4.9 Reporting Statistics Statistics shall be submitted electronically in accordance with rules laid down by the contracting authority. As a minimum, the licensee shall report travel statistics, freight statistics and production statistics for each quarter and each year; see annex E. If the licensee operates other activities using the same vessels as for public procurement of maritime transport services for the Bergen-Kirkenes coastal route, as a minimum systematic solutions shall be established for ongoing registration of statistics for the different passenger segments, classified as passengers within the public procurement (port-to-port passengers) and passengers outside of the public procurement (other passengers). It shall be possible to report relevant and objectively verifiable journey information and turnover (tickets) per passenger segment. Extra sailings, such as for example the present sailing to and from Geiranger in the summer season, shall be reported in their entirety as outside of the public procurement. Traffic data shall be reported for freight traffic respectively north and south of Tromsø. Deviations in productions shall be reported to the contracting authority by the 15th of the following month. The contracting authority and licensee shall jointly prepare routines for such reporting Accounting reporting and control measures The accounts shall be submitted in an approved format and within deadlines pursuant to rules set out by the contracting authority.

20 20 As a minimum, the licensee shall submit accounts for each quarter and each year; see annex E. Accounting separation An overall account for the shipping company and an overall account for activities on the Bergen-Kirkenes coastal route shall be submitted. If the licensee operates other activities using the same vessels as for public procurement of maritime transport services for the Bergen-Kirkenes coastal route, as a minimum accounting separation shall be established, preferably in combination with administrative separation between them. A separate account shall then be submitted for the public procurement contract for the Bergen-Kirkenes coastal route. In this context, the licensee is required to have a system for the ongoing registration and reporting of accounting data and other statistics which make it possible to report in accordance with the accounting separation and to verify reports and accounting entries. The purpose of a requirement for accounting separation is to ensure predictability of which cost additions/savings/extra revenues/shortfalls form the basis of any renegotiations in line with 6 or 7 of the contract during the contract term, and to be able to document that the public procurement does not entail unlawful cross-subsidisation or unlawful public support. Accounting separation for the coastal route is taken to mean that, as a minimum, it shall be possible to produce a statement of profit and loss for the public procurement in which the principles set out in annex C are followed in respect of the allocation of revenues and costs. The proportion of shared costs which are allocated to the public procurement, and the principles for this allocation shall be explicitly set out and the same allocation keys shall be applied consistently for the duration of the contract term. The allocation keys must be verifiable, objective and robust. Control measures The licensee's annual report shall be subject to an audit. In those cases where there are not separate normally-audited accounts, the accounts shall be audited to a standard determined by the contracting authority. The auditor shall also confirm the level of crosssubsidisation, any changes in principles and their effect, and the accuracy of underlying information, including passenger statistics. The licensee's annual report for accounting separation shall include: a) A statement by management confirming that the reporting is consistent with the requirements for accounting separation. b) A statement from management concerning the principles applied in preparing accounting separation, any changes to accounting principles and/or other changes that affect comparability with previous years. c) A statement from management concerning the completeness and validity of the data that are not already evident from the audited financial accounts used in preparation of the report for the accounting separation, including passenger statistics.

21 21 d) A report by the auditor in accordance with standards set out by the contracting authority. The licensee shall provide the contracting authority on demand with any relevant information of an accounting or operational nature for verifying the licensee's contractual performances. The same applies if this is demanded by the Office of the Auditor General or the ESA. The contracting authority may initiate a tax audit or other control measures at its discretion at the licensee's premises or on vessels.

22 22 5. DRAFT CONTRACT FOR THE PROCUREMENT OF SERVICES ON THE BERGEN- KIRKENES COASTAL ROUTE 1 Introduction Based on open competitive bidding performed for the procurement of maritime transport services for the Bergen-Kirkenes route, on the basis of a tender submitted on xxx, a contract has been signed with xxx (company). The following documents form part of the contract: a) the contract (this document) b) any amendments, clarifications or addenda by the contracting authority before expiry of the tender deadline c) the tender specification, including annexes d) minutes and other written material from explanatory discussions, or negotiations where permitted and which have been approved by both parties e) the licensee's tender In the event of any discrepancy between the documents, they apply in the abovementioned order. 2 Definitions The "contracting authority" The "supplier" The "tender specification" The "normal tariff" "Port-to-port passengers" is the Ministry of Transport and Communications is XX is the tender specification announced on Doffin on XXX with clarifications dated xx.xx.xx. is the tariff for passenger fares for port-to-port sailings that applied on 1 October 2004, adjusted in line with the Retail Price Index. are passengers who buy tickets for travelling on a chosen route in accordance with the normal tariff with any supplement for cabins and/or meals at their option. Prices for supplementary services must correspond to published prices for the selected standard of cabin and meal. The overall price must in such cases equal the sum of the ticket price and individual prices of the selected supplementary services.

23 23 Other passengers are those other than port-to-port passengers, i.e. passengers who purchase travel products for specific routes, defined by the supplier, and which include at least one overnight cabin stay and at least one meal on board, where the supplier has published a combined price for the items included and which cannot be broken down into the individual published prices for the same items, including that the passengers will not be entitled to defined discounts on the travel component of the product. Other passengers also includes those purchasing a travel product, defined by the supplier, with at least the above-mentioned supplementary services at a combined price, specified per day but where the passengers themselves select the route where these conditions apply. 3 Contract term/licence This contract is valid for a period of eight years from xxxx, expiring on xxxx. The term of the contract is contingent on the Norwegian parliament's annual allocation to cover the state's payment (see 5-1). The Ministry is entitled to extend the contract by up to 1 year. Any extension must be notified in writing to the supplier no later than 1 year before expiry of the contract term in accordance with the first para. The contracting authority undertakes not to sign contracts with other parties for the purchase of similar services on the Bergen-Kirkenes route during the contract term, as long as the coastal route is in ordinary operation. In accordance with the tender specification, the supplier is awarded a licence for maritime transport for the Bergen-Kirkenes route, valid for the contract term. In the case of an extension, the duration of the licence will be correspondingly extended. For the duration of the contract term, the supplier shall fulfil the requirements for holding a licence. Any revocation of the licence under 29 of the Professional Transport Act renders the contract void. 4 The supplier's obligations 4-1 Route production requirements 1. Description of the selected alternative. 2. On the Bergen-Kirkenes-Bergen route with intermediate stops, ordinary carriage of passengers port-to-port shall be provided, with calls northbound and southbound. For the Tromsø-Kirkenes-Tromsø route, freight transport shall also be provided.

24 3. Omission of up to 10 days of operation in agreed production per ship per annum due to planned maintenance and unforeseen operational disruption linked to the agreed production (off-hire) is considered to be proper fulfilment and shall not entail a deduction in the agreed remuneration in accordance with 9-2. Unused off-hire may not be carried over from one year to the next. 4. Schedules must at all times be approved by the contracting authority; see 28 of the Professional Transport Regulation. Schedules and fares shall be published; see 28 and 29 of the Professional Transport Regulation. In the event of cancellations and operational disruptions, the supplier shall appropriately provide affected parties with necessary information as early as possible. 4-2 Capacity and vessel requirements, employees' rights etc. 1. Vessels used on the coastal route shall as a minimum have passenger capacity for 320 passengers, berth capacity in cabins for 120 passengers, and freight capacity for 150 euro pallets (in a cargo hold with a normal load height). The vessel must have passenger facilities which include refreshment facilities for passengers. 2. Back-up vessels may only be used when a main vessel (see annex G of the tender specification) is not operational. Any back-up vessel must fulfil at least 80% of the capacity requirements. In addition to the capacity requirements, back-up vessels must fulfil the vessel requirements. 3. Vessels used must have valid certificates for the trade areas in question, and must be classified by a specified classification society; see the tender specification, item 4.4 Vessels. 4. Vessels must have a valid Safety Management Certificate, and be operated by a shipping company with a valid certificate of approval for safety management; see tender specifications and The vessels must satisfy the accessibility requirements; see item of the tender specification. 6. There is a requirement for P&I insurance and hull insurance; see of the tender specification. 7. A flag state declaration is required for vessels with non-norwegian flags; see item of the tender specification. 8. The crew must have competence and safety training in accordance with the Norwegian Maritime Directorate's rules for the trade area and the requirements defined in the tender specification; see items 4.5 and 4.7 of the tender specification. 9. The supplier undertakes to ensure that the employees directly working to fulfil the contract have pay and working conditions that are not less favourable than ensues from applicable national tariff agreements or which are otherwise normal for the location and profession in question. A corresponding obligation also applies to subcontractors. 4-3 Fare and discount requirements Maximum fares for port-to-port passengers must be approved by the contracting authority. Approval is taken to have been granted for the normal fares tariff that applied on the Bergen-Kirkenes coastal route on 1 October 2004, adjusted in line with the Retail Price Index. Subsequent fare changes to the normal tariff must be approved by the Ministry. 24

25 25 The supplier has full freedom to accept lower fares. Fare changes to the normal tariff within recent adjustments in the Retail Price Index may be taken to be approved. Similarly, acceptance may be anticipated for increasing fares on a seasonal basis (seasonal surcharge) by up to 10% relative to the normal fares level for the current year. For other passengers, the shipping companies have full freedom to set fares. The same applies to cabin and meal prices and freight transport. For port-to-port passengers, discount schemes shall be offered, calculated as percentages of the normal fares tariff (including any seasonal surcharge) as follows: - Children between 4 and 15 years of age are entitled to 50%. Children under 4 travel free if they do not occupy their own berth. - Seniors' discount of 50% is granted to persons aged 67 and above, and the same discount to blind and disabled persons. The same discount is granted to spouses/cohabitants travelling together and registered partners, regardless of age. - Companion discount: Companions travel free when the person whom he/she is accompanying is able to produce a companion card issued by their local authority. - People on military service are granted a 50% discount for journeys undertaken during their period of service. The discount does not apply to officers or to journeys made to attend the initial service. The above-mentioned discount schemes may not be combined, except that the companion discount applies even if a person with a companion certificate is entitled to a discount on their own account. 4-4 Accounting and other reporting requirements 1. The supplier shall supply statistics and accounting reports in accordance with forms laid down by the contracting authority; see item 4.9 in the tender specification. 2. If the supplier operates other business outside of this contract: a) separate accounts and production statistics shall be submitted in accordance with the tender specification, chap b) a management report shall be submitted in accordance with the requirements in the tender specification, chap c) an audit verification shall be submitted in accordance with specifications laid down by the contracting authority. 3. Reporting shall be made in accordance with deadlines determined by the contracting authority. 4. Before commencement, the supplier shall produce a description of the systems for ensuring that the requirements in items 1 and 2 are fulfilled. The Ministry shall approve this documentation. In the absence of such approval, the Ministry may require the commencement to be deferred until adequate documentation can be produced.

26 26 5. The supplier shall provide the contracting authority on demand with any relevant information of an accounting or operational nature for verifying the execution of the contract. The same applies if this is demanded by the Office of the Auditor General or the ESA. 6. The contracting authority may initiate a tax audit or other control measures at its discretion at the supplier's premises or on vessels. 7. The supplier undertakes on his own initiative to inform the contracting authority of material changes in organisation, management and ownership. 4-5 Requirement for provision of security The supplier shall provide combined security for his fulfilment of this contract. The security shall cover any remedies for breach and recovery costs associated with the contract. The security shall constitute 15% of the state's annual procurement at any time. The security is to be provided as an unconditional guarantee from a bank or insurance company, or placed in an escrow account. The security or deposit shall be for the benefit of the contracting authority, and shall not be terminated during six months after expiry of the contract unless otherwise agreed by the contracting authority. 5 The contracting authority's obligations 5-1 The contracting authority's remuneration The contracting authority shall pay for the service for each individual year as follows: Xxx The figures stated are in 2011 prices. The agreed compensation for the individual years is made subject to the Norwegian parliament making available the necessary amounts through the annual budget decisions; see 3. Agreed remuneration excludes value-added tax. 5-2 Price adjustments Agreed remuneration stated in 2011 prices shall be price-adjusted in accordance with Statistics Norway's cost index for domestic sea transport - sub-index for ferries, with a fixed component. Projected calculations shall be based on average changes in the index for the last 12 months up to 5 February of the year prior to the adjustment date. Accordingly, the price adjustment for 2012 will be based on changes measured in the period 2010 to 2011 etc. If the above-mentioned cost index is not available, Statistics Norway's Retail Price Index will be used.