Ministry of National Integration and Reconciliation

Transcription

1 Ministry of National Integration and Reconciliation Request for Proposal (RFP) 50,000 Brick and Mortar Type Housing Programme for North and East Financing and Construction of 50,000 Permanent Brick and Mortar Type Houses for the Conflict Affected Families in the Northern and Eastern Provinces of Sri Lanka 1. The Government of the Democratic Socialist Republic of Sri Lanka intends to construct 50,000 brick and mortar type housing units under contractor-driven modality for the persons affected by conflict in Northern and Eastern Provinces of Sri Lanka by using funds arranged by the bidder on a competitive soft term from reputed Donors or Financing Institutions. 2. The Chairman, Cabinet Appointed Negotiation Committee (CANC), on behalf of Ministry of National Integration and Reconciliation invites sealed Request for Proposals (RFP) from the eligible bidders (national or international or Joint Ventures) for the Construction of 50,000 permanent houses under various packages. This is organized and sliced into number of packages and each package will have 500 housing units. The total number of packages will be 100. A bidder may apply for one or more packages. 3. These houses will be individual housing units with the plinth area of 550 Sq.ft extent per house and should have two bed rooms, living room, verandah, kitchen and toilet facilities. 4. The bidder shall establish a firm commitment of funding from the reputed donors or Funding Agency or Agencies for 100% financing of the relevant package or packages of the project on competitive soft financing arrangements. The Government of the Democratic Socialist Republic of Sri Lanka or its authorized agency will enter into a financing agreement (national / international) with the reputed donor or Funding Agency/Agencies proposed by the successful bidder. The contractor to be employed will be selected in accordance with the criteria set out in the RFP. 5. RFP will be considered through competitive bidding procedure and is open to all eligible bidder who fulfilled the minimum criteria described in the RFP document. 6. The bidder should submit confirmed financing arrangement with soft terms with a firm commitment letter from internationally or locally recognized and credibility rated bank, financial institution or donor acceptable to the Central Bank of Sri Lanka and Ministry of Finance of Sri Lanka. Financing facility for packages for which bids are submitted should be clearly confirmed without any ambiguity by the financing bank, institution or donor and should be supported with detailed Term Sheet. The financing arrangements with soft terms should be in the form of interest, grace period and repayment period.

2 7. Interested eligible Bidders may obtain further information from Secretary/ Programme Coordinator, Ministry of National Integration and Reconciliation and inspect the RFP documents at the address given below from 9.00 hours to hours on working days from 2 nd October 2017 to 12 th November 2017 Ministry of National Integration and Reconciliation (2 nd Floor) No.34, Narahenpita Road, Nawala, Sri Lanka. address: ministrysec.nir@gmail.com Telephone /Facsimile: Telephone : ; Fax : A complete set of RFP documents in English language may be purchased by eligible bidders on submission of a written application on a business letterhead to the address above and upon payment of non- refundable fee of SL Rs. 60, in cash or Bank draft (acceptable by the Central Bank of Sri Lanka) in favour of Secretary, Ministry of National Integration and Reconciliation from 2 nd October 2017 to 12 th November 2017 from 9.00 a.m to 3.00 p.m on any working day. The bidder who wishes to receive the RFP by couriers shall authorize the Ministry to do so. The Ministry will promptly dispatch the hard copy of the documents by courier service on payment of a non-refundable fee but under no circumstances will be held responsible for late delivery or loss of the documents so mailed. An additional non-refundable fee of SL Rs. 20, should be paid for dispatching the documents by courier. 9. All bids must be accompanied by a bid security as set out in the RFP. Proposals shall be submitted in one (01) original and two (02) copies delivered to the address below on or before 2.00 p.m on 13 th November Secretary, Ministry of National Integration and Reconciliation, No.34, Narahenpita Road, Nawala, Sri Lanka The proposals should be submitted under two envelops system as set out in the RFP document. Bids shall be marked on the top left hand corner of the envelop RFP for 50,000 Housing Programme. Bids will be opened immediately after closing of bids. 10. Proposals which are received late will be rejected and returned unopened. The Ministry of National Integration and Reconciliation will not be responsible for any costs or expenses incurred by Bidders in connection with the preparation or delivery of RFP. 11. RFP Documents will be issued from 2 nd October 2017 Chairman, CANC Ministry of National Integration and Reconciliation No. 34, Narahenpita Road, Nawala, Sri Lanka.

3 DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA MINISTRY OF NATIONAL INTEGRATION AND RECONCILIATION Bid No: MNIR/Houses / N&E / 2017 / 01 Request for Proposal (RFP) For Financing and Construction of 50,000 Permanent Brick and Mortar Type Houses for Conflict Affected Displaced Families in the Northern and the Eastern Provinces in Sri Lanka This RFP is exclusively for inspection and cannot be used for submission. Any RFP document will only be accepted after payment of Rs.60,000 non-refundable deposit and should be collected from Ministry of National Integration and Reconciliation No. 34, Narahenpita Road, Nawala Ministry of National Integration and Reconciliation No.34, Narahenpita Road, Nawala, Sri Lanka 02 nd October 2017

4 Abbreviations CANC CIDA N&E MNIR RFP SL Rs SBD NPV DNP DPC ICTAD NHDA IESL Cabinet Appointed Negotiation Committee Construction Industry Development Authority Northern and Eastern Ministry of National Integration and Reconciliation Request for Proposal Sri Lankan Rupee Standard Bidding Documents Net Present Value Defects Notification Period Damp Proof Course Institute for Construction, Training and Development National Housing Development Authority Institute of Engineering in Sri Lanka UNCITRAL United Nations Commission on International Trade Law ITB DPM Instructions to Bidders Damp Proof Membrane

5 Table of Contents Letter of Invitation for Request for Proposals 1-5 Check List of Submission Section 1 Instruction to Bidders 11 (Please refer CIDA SBD/04 : Pages from 7-33) Page Section 2 Bidding Data Section 3 Conditions of Contract. 21 (Please refer CIDA SBD / 04 : Pages from ) Section 4 Contract Data Section 5 Assessment of Qualification Requirements Section 6 Standard Forms (Contract Forms) Form of Bid Security Form of Letter of Acceptance 34 Form of Contract Agreement Form of Performance Guarantee 37 Form of Guarantee for Mobilization Advance Payment Form of Retention Money Guarantee 40 Section 7 Employer s Requirement Section 8 Bidding Forms Form of Bid Form of Design / Technical Proposal.. 51 Form of Price Proposal Form of Financing Proposal. 54

6 Page Section 9 Schedules Qualification Documents Technical Proposals Commercial Submittals Section 10 Pricing Pricing Preamble 81 Price Schedule Price Proposal. 85 Financing Arrangement with Soft Terms 86 Section 11 Schedule of Payment Section 12 Model Sketch / Drawings Appendix Appendix 1 Evaluation Flowchart 91 Appendix 2 Evaluation Criteria 92 Appendix 3 Drawings MINR Houses N & E 2017 ER1. 93 Appendix 4 Drawings MINR Houses N & E 2017 A Appendix 5 Drawings MINR Houses N & E 2017 A Appendix 6 Drawings MINR Houses N & E 2017 A Appendix 7 Drawings MINR Houses N & E 2017 SW1 97 Appendix 8 Drawings MINR Houses N & E 2017 SW2 98 Appendix 9 Drawings MINR Houses N & E 2017 WD1 99 Appendix 10 Drawings MINR Houses N & E 2017 E1. 100

7 LETTER OF INVITATION FOR THE REQUEST FOR PROPOSAL (RFP) Page 1 of 100

8 MINISTRY OF NATIONAL INTEGRATION AND RECONCILIATION CONSTRUCTION OF 50,000 PERMANENT BRICK AND MORTAR TYPE HOUSES WITH FINANCING ARRANGEMENTS FOR THE CONFLICT AFFECTED DISPLACED FAMILIES IN THE NORTHERN AND EASTERN PROVINCES IN SRI LANKA BID No: MNIR / Houses / N&E / 2017 / 01 LETTER OF INVITATION FOR THE REQUEST FOR PROPOSAL (RFP) 1. The Government of the Democratic Socialist Republic of Sri Lanka intends to construct 50,000 brick and mortar type housing units under contractor-driven modality, for the persons affected by conflict in Northern and Eastern Provinces of Sri Lanka by using funds arranged by the bidder on a competitive soft term from reputed Donors or Financing Institutions. 2. The Chairman, Cabinet Appointed Negotiation Committee (CANC), on behalf of Ministry of National Integration and Reconciliation invites sealed Request for Proposals (RFP) from the eligible bidders (national, international or Joint Ventures) for the Construction of 50,000 permanent houses under various packages on a competitive soft financing arrangements for the conflict affected displaced families in the Northern and Eastern Provinces of Sri Lanka. The proposed 50,000 housing programme is organized and sliced into number of packages and each package will have 500 housing units. Accordingly, the total number of packages will be 100. A bidder may apply for one or more packages. 3. These houses will be individual housing units with a minimum plinth area of 550 Sq. ft extent per house and should have two (2) bed rooms, living room, verandah, kitchen and toilet facilities. 4. The bidder will establish a firm commitment of funding from the reputed donors or Funding Agency or Agencies for 100% financing of the relevant package or packages of the project applied for on competitive soft financing arrangements. The Government of the Democratic Socialist Republic of Sri Lanka or its authorized agency will enter into a financing agreement with the reputed donor or Funding Agency/Agencies proposed by the successful bidder for 100% financing of the relevant package or packages. The funds available under financing arrangement with soft terms by the Funding Agency or agencies will be applied towards the construction of proposed permanent houses for the conflict affected displaced families in the Northern and Eastern Provinces by utilizing the proceeds of this loan/ financing arrangement to make eligible payments under the contract for which this invitation of RFP is issued. The financing arrangement should Page 2 of 100

9 cover all components, activities and scope of the programme of the relevant package or packages. The bidder to be employed will be selected in accordance with the criteria as set out in RFP. 5. RFP will be considered through competitive bidding procedure and is open to all eligible Bidders who fulfilled the minimum criteria described in the RFP document and also as described below: 5.1. The Bidder should have undertaken project or projects in construction to the monetary value of Sri Lankan Rupees 2 billion or above (or equivalent to US $ as set out in the Bidding Data) during the last five (05) years period in case of RFP submitted for one package (A lot of 500 housing Units). Accordingly, the annual construction turnover over the last five (05) years period should be equal to or more than Rs.400 million per annum in case of bidder who apply for one package. This should be confirmed with audited financial statements of five (05) years. The turnover requirement set out above is in relation to one package of 500 housing units and will increase proportionately depending on the number of packages for which bids will be submitted The bidder should have sufficient working capital of at least Rs. 75 million or above during the last three (3) years in case of bidding for one package of 500 housing units. The working capital requirement will proportionately increase depending on the number of packages for which bids are submitted The bidder should submit confirmed financing arrangement with soft terms with a firm commitment letter from prime internationally or locally recognized and credibility rated bank, financial institution or donor acceptable to the Central Bank of Sri Lanka and the Ministry of Finance and Mass Media of Sri Lanka. Financing facility with package of assistance (Term sheet) should be clearly confirmed without any ambiguity by the financing bank, institution or donor. The financing arrangements with soft terms should be in the form of interest, grace period and repayment period. The repayment period preferably may be fifteen (15) years or above including the grace period. The grace period shall be not less than two (02) years. Preference will be given to extended grace period and repayment period and interest from a national perspective The terms of repayment period and grace period shall be considered by the CANC and the financing arrangement with soft terms shall be given suitable consideration. The bidder should demonstrate his/her construction capability through evidences on past experience, staff cadres and equipment availability Experience under building construction contracts with the dual role of designer & constructor preferably for the last five (05) years handling over Sri Lankan Rupees 2 billion or equivalent to US $. Prior to the date of submission of proposal is necessary. This turnover requirement will be increased proportionately according to the number of packages for which bids will be submitted. Page 3 of 100

10 The Government of Sri Lanka or Cabinet Appointed Negotiation Committee (CANC)has the full right to decide on the number of packages to be awarded. As a general principle, the selection of type of materials, technologies and modalities of construction options shall be acceptable to the local social, cultural, climatic, environmental and technical considerations. Disaster Resilient Features shall be incorporated wherever appropriate. Therefore, the design has to factor the context specific needs and requirements. However, the bidder has no rights whatsoever to challenge the relevant options. The Government in order to encourage competition and ensure efficient and timely delivery may place a ceiling on the number of packages to be awarded depending on the bids received. 6. Interested eligible Bidders may obtain further information from Secretary/ Programme Coordinator, and inspect the RFP documents at the address given below from 9.00 hours to hours on working days from 2nd October to 12 th November Ministry of National Integration and Reconciliation (Second Floor) No.34, Narahenpita Road, Nawala, Sri Lanka. address: ministrysec.nir@gmail.com Telephone /Facsimile: Telephone: ; Fax : A complete set of RFP documents in English language may be purchased by eligible Bidders on submission of a written application on a business letterhead to the address above and upon payment of non- refundable fee of SL Rs.60, in cash or Bank draft (acceptable by the Central Bank of Sri Lanka) in favour of Secretary, Ministry of National Integration and Reconciliation from 2nd October 2017 to 12 th November 2017 between 9.00 a.m to 3.00 p.m on any working day. The bidder who wishes to receive the RFP by couriers shall authorize the Ministry to do so. The Ministry will promptly dispatch the hard copy of the documents by courier service on payment of a non-refundable fee, but under no circumstances will be held responsible for late delivery or loss of the documents so mailed. An additional non-refundable fee of SL Rs. 20, should be paid for dispatching the documents by courier. 7. The bid shall be valid up to 7 th May All bids must be accompanied by a bid security in favour of Secretary, Ministry of National Integration and Reconciliation from a commercial bank acceptable to the Central Bank of Sri Lanka to the value of Rs. 3 Million per package as set out in the RFP (CIDA/SBD/04 - Instructions to Bidders Clause 16 and RFP section 6.1 Form of Bid Security). The bid security shall be valid up to 4th June The 50,000 housing programme shall be constructed and completed within a period of 3 years. However, any given package or packages should be completed within a period of 365 Days from the date of commencement set out in the letter of award. 9. Proposals shall be submitted in one (01) original and two (02) copies delivered to the address below in the prescribed forms/rfp on or before 2.00 p.m on 13 th November 2017 Page 4 of 100

11 and will be opened soon after the closing. The bidders representatives who are present shall confirm their attendance by signing the attendance sheet. Secretary, Ministry of National Integration and Reconciliation, No.34, Narahenpita Road, Nawala, Sri Lanka Bidders or their authorized representatives are requested to be present at the opening of the bid. The RFPs should be submitted under two envelops system. The first envelop should include the technical proposals along with Information related to the Financial Institutions (including TEC Form No.6) and second envelop will contain Banks / Financial Institutions / Donor confirmed financing arrangements (arrangement with soft terms including bank / donor / financial institutions endorsed term sheet) and financial proposal (Pricing). At the first stage, only the technical proposals will be opened in the presence of bidder or representatives, who choose to be present, immediately after the closing of the bids i.e. 13 th November 2017 at 2.00 p.m. Bids shall be marked on the top left-hand corner of the envelop RFP Documents for 50,000 Housing Programme. The Financial Institution or donor or funding agency should be nationally or internationally recognized and accredited. Such financial institutions or donor or funding agencies should be acceptable to the Central Bank and the Ministry of Finance and Mass Media of the Government of Sri Lanka. In case of financial institutions, current Fitch rating acquired by the financing institution also to be mentioned and submitted with the technical proposals (in Form TEC -6 Information on Financial Institutions) 10. Proposals which are received late will be rejected and returned unopened. 11. The Ministry of National Integration and Reconciliation will not be responsible for any costs or expenses incurred by Bidders in connection with the preparation or delivery of RFP. Chairman Cabinet Appointed Negotiation Committee Ministry of National Integration and Reconciliation No. 34, Narahenpita Road Nawala Sri Lanka. Page 5 of 100

12 CHECKLIST OF SUBMISSIONS Page 6 of 100

13 CHECK LIST FOR SUBMISSION OF BID DOCUMENT The following table titled Documentation to be attached by the Bidder to the Bid is provided as a guide to bidders. In the event of any discrepancies between the contents in these tables and requirements of the Bid Documents, the latter shall govern. The Bidders shall submit one original and two copies each of the Technical Proposal and Financial proposal including all accompanying documents, covering the processes set out in the Request for Proposal. It is the responsibility of the bidder to ensure the submissions for the Technical Proposal (along with information related to Financial Institution/Institutions) and Financing Proposal (100% confirmed financing arrangements with Term sheet) with Pricing are identified clearly as per instructions to Bidders and no mix up of documents take place. Page 7 of 100

14 Check List of Bid Submission Project Name: CONSTRUCTION OF 50,000 PERMANENT BRICK AND MORTAR TYPE HOUSES WITH FINANCING ARRANGEMENTS FOR THE CONFLICT AFFECTED DISPLACED FAMILIES IN THE NORTHERN AND EASTERN PROVINCES IN SRI LANKA Document Requirement Who must complete Technical Proposal Form of Bid Volume 1 RFP Section 8 (8.1) pg Joint Venture Information Volume 1 RFP Section 9 (9.1) pg. 58 Form ELI 2 Form of Design and Technical Proposal Volume 2 RFP Section (8.2) Technical Proposal pg. 51 Schedule/ Technical information Volume 2 RFP Section 9 (9.2) Form TEC 1 TEC 6 pg Bid Security Volume 1 RFP Section 6 (6.1) pg Schedule of major items of construction plant, machinery or workshop Volume 2 RFP Section 9 (9.2) Form TEC 2e pg. 67 Schedule of Key personnel Volume 2 RFP Section 9 (9.2) Form TEC 2a pg. 63 Schedule of suggestions on specification (if any) Volume 2 RFP Section 9 (9.2) Form TEC 4b pg. 70 Completed and Signed All Bidders A statement to be added to the bid form that all partners of the Joint Venture shall be liable jointly and severally for the execution of the Contract in accordance with the Contract terms Completed and Initialed Completed Complied Completed Completed Completed Bidder or person or persons duly authorized to sign on behalf of the bidder All Bidders In case of Joint Venture, all parties All Bidders In case of Joint Venture (JV), all parties Bidder Bidder / Bidder s Bank Bidder Bidder Bidder Checked & Signed by the Bidders Page 8 of 100

15 Document Requirement Who must complete Checked & Signed by the Bidders All pages of Technical Proposal -Volume 2 Section 9 (9.2) RFP Form TEC 1 - TEC 6 pg Written power of attorney for authorizing the signatory of the bid to commit the bidder Initialed Bidders who does not sign the bid and authorizes the bid on behalf of the bidder Bidder Bidder Proposals regarding work methods, scheduling and resources Volume 2 RFP Section 9 (9.2) Form TEC 3 pg. 68 Written regarding work methods scheduling and resource Volume 2 Section 9 (9.2) Form TEC -2b, 2c, 2d, and 2e pg Written power of attorney authorizing one of the partners in JV to be the partner in charge and stating that all partners of the JV shall be jointly and severally liable for the execution of the Contract in accordance with the Contract terms Copy of Joint venture agreement or Letter of Intent. Detailed Technical Proposal. Volume 2 RFP Section 8 (8.2) & Section 9 (9.2) Form TEC 1 TEC 6 pg Evidence of bidder s authority to supply or use plant, equipment or process, the supply or use of which is protected by partners or other proprietary rights. Information of Financial Institution/ Institutions proposed by the Bidder Volume 2 RFP Section 9 (9.2) Form TEC 6 pg. 72 Prepared and submitted Completed Complied Completed Complied and Completed Complied and Compiled Complied and Completed Bidders Legally authorized signatories of all partners where the bidder is a JV. Legally authorized signatories of all partners where the bidder is a (JV). JV partners Bidder Person or persons giving authority to bidder Financial Institution/ Institutions of the bidder Page 9 of 100

16 Price Proposal Price Schedule Document Requirement Who must complete Checked & Signed by the Bidders Volume 3 RFP Section 10 (10.2, 10.3 and 10.4) pg Price Proposal Completed and Signed Completed and Signed Bidder Bidder Volume 3 RFP Section 10 (10.5) pg. 85 All pages of Price Proposal Initialed Bidder All RFP forms Complied Bidder Form of Proposals Complied Bidder Financing proposal Comprehensive firm written commitment from the Financial Institution/ Institutions or donor RFP Section 8 (8.4) pg. 54 Form CFA 1 section 10 (10.6) pg. 86 Milestone Payment Section 11 pg.88 Complied Completed and Signed Financial Institution/ Institutions of the bidder Bidder Page 10 of 100

17 Project Name: CONSTRUCTION OF 50,000 PERMANENT BRICK AND MORTAR TYPE HOUSES WITH FINANCING ARRANGEMENTS FOR THE CONFLICT AFFECTED DISPLACED FAMILIES IN THE NORTHERN AND EASTERN PROVINCES IN SRI LANKA SECTION -1 INSTRUCTIONS TO BIDDERS Instructions to bidders applicable for RFP document is Section I of Standard Bidding Document Procurement of Works Design & Build Contracts First Edition Reprinted May 2003 published by the Construction Industry Development Authority (CIDA) 123, Wijerama Mawatha, Colombo 03. Sri Lanka. CIDA Publication No. CIDA/SBD/04 Note: Please refer the CIDA Publication No. CIDA/SBD/04 for the purpose to comply with the Instruction to Bidders as set out in the Standard Bidding Document Procurement of Works - Design and Build Contracts. The bidder will be given with CIDA/SDB / 04 along with the RFP and read in conjunction with this document where appropriate as set out in the RFP. Instructions to Bidders shall be read conjunction with Bidding Data. Page 11 of 100

18 SECTION -2 BIDDING DATA If there are any discrepancies between bidding data and instructions to Bidders, bidding data shall supersede the Instructions to Bidders This section shall be read in conjunction with the Section 1 Instructions to Bidders and is intended to provide specific information in relation to the corresponding clauses in section 1 Page 12 of 100

19 Section 2 - Bidding Data Instructions to Bidders Clause Reference Item Employer s name and address Sub- Clause 1.1 & 9.1 The Employer is Entry Name: The Secretary, Ministry of Integration and Reconciliation No.34, Narahenpita Road, Nawala BID No: MNIR/Houses/N&E/2017/01 Scope of Works 1.1 Cabinet Appointed Negotiating Committee (CANC) on behalf of the Secretary, Ministry of National Integration and Reconciliation (hereinafter referred to as the Employer ), No 34, Narahenpita Road, Nawala. Sri Lanka wishes to receive RFPs for design-build and completion of 50,000 permanent houses as defined in these RFP documents (herein after referred to as the Works ). These single storied individual houses- each with a minimum plinth area of 550 sq.ft will be constructed in packages of 500 housing units in Jaffna Kilinochchi, Mannar, Mullaithivu, Vavuniya, Trincomalee, Batticaloa and Ampara Districts as set out below: Districts Number of Houses No.of packages Jaffna 14,500 JAF1 JAF29 (29 Packages) Kilinochchi 7,000 KIL1 KIL14 (14 Packages) Mullaitivu 9,000 MUL1 MUL18 (18 Packages) Mannar 4,500 MAN1- MAN9 (9 Packages) Vavuniya 3,500 VAV1 VAV7 (7 Packages) Trincomalee 4,000 TRI1 TRI8 (8 Packages) Batticaloa 6,500 BAT1 BAT13 (13 Packages) Ampara AMP1 AMP2 (2 Packages) Total 50, The number of houses may where necessary under exception circumstances be amended in consultation with the successful bidders, however for submission of RFP the above schedule be considered as confirmed. These houses will be individual houses and should have 2 bed rooms, living room, verandah, kitchen and toilet facilities (Ceramic squatting pan with foot rest). Electricity internal wiring and fixtures and Internal pipe laying and taps are to be completed by the bidder. Roof covering should be Calicut tiles. (A model type plan is also attached for easy reference) The bidder shall submit his/ her offer for the construction of any package or packages of houses units with 100%financing arrangements with soft terms covering grace period, repayment period, interest rate, Page 13 of 100

20 minimum transaction cost with uniformity to avoid product differentiation. Given the urgency, the construction of package/ packages should be completed within 365 Days after the commencement of work stipulated in the letter award/acceptance. However, the total project period will be three years. The above housing units distribution plan is an indicative plan and may vary depending on the real requirements. A firm commitment letter of offer from an international or local recognized and credibility rated bank, financial institution or donor acceptable to the Central Bank of Sri Lanka, Department of External Resources, and the Ministry of Finance and Mass Media shall be submitted as part of the RFP for the number of packages applied. Time for Completion 1.2 Any given package or packages should be completed within a period of 365 days from the date of commencement set out in the letter of acceptance. (RFP Section 4, sub clause 8.1 and 8.2 on-page number 24) Delay Damages for the Works Defect Notification Period (DNP) Product Warranty 1.2 Please refer the Contract Data (RFP Section 4, sub clause 8.7-page number 24) 1.2 Please refer the Contract Data (RFP Section 4, sub clause 11.1-page number 24) For housing programme should be climatically, socially, technically and environmentally appropriate. The basic house and its core construction materials shall have a minimum life span of 50 years. Source of Funds 2.1 The bidder will establish the firm commitment of funding from reputed Funding Agency or Agencies for 100% financing of the package or packages applied on soft term. The Government of the Democratic Socialist Republic of Sri Lanka will establish a firm commitment for funding from reputed Funding Agency/Agencies [hereinafter referred to as Financing Institution] proposed by the successful bidder towards the cost of investigation, design, construction and completion of the number of houses mentioned in RFP Section 2 (sub clause 1.1) above and will apply the proceeds of the loan to eligible payments under this contract. Payment by the Financing Institution will be made only at the request of the Government of Democratic Socialist Republic of Sri Lanka or its authorized representatives. For this purpose, a financing agreement will be signed by the Government of Sri Lanka or its authorized agency with the Financing Institutions setting out the terms and conditions including the modality of fund disbursement. No party other than the Government of Democratic Socialist Republic of Sri Lanka shall have the exclusive rights on the Financing Agreement. A firm commitment letter of offer from an international or local recognized and credibility rated bank, financial institution or donor should be submitted as part of the RFP for the number of package or packages applied. The financing facility and package of assistance should clearly state the full details of the package of assistance offered with all terms and conditions including interest rates, basis of calculation, grace period, repayment period and repayment modalities Page 14 of 100

21 (Please refer RFP Section 10 (10.3) Form CFA-1). The CANC has the right to disqualify any vague and ambiguous letter of financing arrangements. The financing arrangement should cover all components, activities and scope of the programme. Preference may be given for repayment period of 15 years or above including the grace period. The grace period shall be not less than two (02) years. Preference will be given to extended grace period and repayment period and interest rate from a national perspective considering other criteria. Parallelly, a commercial agreement will be signed between the successful bidder and the Government of Sri Lanka or its authorized agency/agencies. The Financing Agreement has to be endorsed by the Department of External Resources or Ministry of Finance and Mass Media. The Government of Sri Lanka or its authorized agency will be the signatory of the same. The Commercial Agreement will come into operation only once the financing agreement is approved and operational. If the financing agreement is not executed the commercial agreement becomes null and void and unenforceable. Appropriate Guarantee will be made available by the Government of Sri Lanka for the financing institutions. Eligible Bidders 3.4 This Letter of Invitation for RFP is open for national and international bidders those who have fulfilled the qualification criteria given in Instructions to Bidders (CIDA/SBD/04). All members of a Joint Venture of a bidder shall be from eligible source countries acceptable and aligned to the Financing Institutions. Qualification Information 3.1, 3.2 & (a) To be qualified for award of Contract, bidders shall submit a written power of attorney authorizing the signatory of the bid to commit the bidder; (b) Company Registration and (c) have adequate financial capacity and technical capability to undertake the Contract. This will include an assessment of bidder s proposals regarding design, criteria and philosophy, outline design, work methods, scheduling and resourcing which shall be provided in sufficient detail to confirm the bidder s capability to design and complete the works in accordance with the Employer s Requirements and the time for completion. 2. Bids submitted by a Joint Venture (JV) of two or more firms as partners shall comply with the following requirements: (a) the bid, and in case of a successful bid, the Form of Contract Agreement, shall be signed so as to be legally binding on all partners; (b) Representatives of each company in the Joint Venture should give power of attorney for their nominated partner for the Joint Venture. (c) one of the partners shall be authorized to be in charge as the lead partner; and this authorization shall be evidenced by submitting a power of attorney signed by legally authorized signatories of all the JV partners; Page 15 of 100

22 (d) the partner in charge shall be authorized to receive payments and receive instructions for and on behalf of all partners of the joint venture and the entire execution of the Contract; (e) all partners of the Joint Venture shall be jointly and severally liable for the execution of the Contract in accordance with the Contract terms, and a relevant statement to this effect shall be included in the authorization mentioned under (c) above as well as in the Bid Form and the Form of Contract Agreement (in case of a successful bid); and (f) letter of Intent to form a Joint Venture before signing the Joint Venture agreement (the agreement entered into by the Joint Venture partners) shall be submitted with the RFP. This should be signed by all Joint Venture partners and attested by Attorney 3. Bidders shall also submit proposals of design criteria and philosophy, outline design, work methods and schedule, in sufficient detail to demonstrate the adequacy of the bidders proposals to meet the Employer s Requirements and the completion time referred to in this document. The Bidders are required to undertake appropriate investigations/tests and/or surveys adequate enough to draw up a realistic design in line with the specifications and requirements of the Employer. Preference will be given in the bid evaluation to the most realistic designs which is capable of being implemented with least future modifications and/or least possible delay and with least overall cost including operation and maintenance. Bidders should fulfil the qualification criteria given below. i) The Bidders who are Individual Firm or Joint Venture should have been designed and completed construction contracts to the value of SL Rs. 2billion or more over the period of five (05) years in case of RFP submitted for one package with an overall annual turnover of SL Rs. 400 million or above in case one package. In the case of foreign bidders construction projects should have been undertaken outside the home country. Acceptable certificate of completion from the client is required for most recent projects - implemented during last three (03) years. In the case of Joint Venture initiatives, the percentage of work done is taken based on the percentage of work mentioned in the Joint Venture agreements. ii) The scope of work of at least one (01) housing project undertaken by the bidder should be supported as documentary evidence (with pictorial proof) of the work done and should include, inter alia, the following requirements: - a) Design of buildings, houses and residential blocks. b) Construction of buildings, houses and residential blocks. c) Design of small scale sanitation facilities. d) Construction of sanitation facilities. e) Supply and installation of electrical appliances and equipment for residential buildings. Page 16 of 100

23 iii) Bidders who do not possess design experience in similar projects specified as above in (a) to (e) in required capacities may enter into a Joint Venture with a Design consultancy firm with experience in building construction and other related works. iv) Financial The Bidder shall have minimum average annual construction turnover SL Rs.400 million calculated as total certified payments received for Contracts in progress or completed, within last Five (05) years including SL Rs.75 million preferably in liquid cash or alternatively working capital for a single package and will increase proportionately depending on the number of packages for which bids will be submitted. Bidder shall submit (a) Audited Financial Statement of the Company / Firm for last five (5) years (un audited Annual Reports are not accepted) (b) Letter from the Financial Institution/ Institutions for Credit Facility to cover financial Capacity Mentioned in the RFP document for the exclusive use of this contract. Bidder should utilize the credit facilities provided with the RFP during implementation of the project. Otherwise employer may consider him as a defaulted. (c) Letter addressed to the Financial Institution/ Institutions authorizing the Employer to seek reference from the Financial Institution/ Institutions for the financial capacity of the bidder. (d) In case International bidder, the company registration should be duly certified by the relevant official authorities of the respective country. (e) The facilitator or mediator should have experience in community mobilization, training and orientation, coordination and facilitation of material requirements, facilitating bulk buying, monitoring and supervision to ensure efficient, effective and timely delivery with quality assurance. Average annual volume of construction work performed in last five years 4.3 (a) Average annual volume of construction work performed in last five years shall be at least SL Rs.400 million per package in case where Bidder has applied for one package. if the number of packages applied increases the turnover, working capital will increase proportionately. Bid Price 13.3 Value Added Tax (VAT) Component shall not be included in the rates. The amount written in the Form of Bid shall be without VAT. However, VAT component shall be shown separately at the end of the price schedule summary. Contract is subject to Price Adjustment for fluctuation of prices 13.4 The Contract is subject to Price Adjustment in accordance with RFP Section 4 sub clause 13.7 of the Contract Data-page number 25. Currency of Bid 14.1 Bidders shall bid in Sri Lanka Rupees (SL Rs) or equivalent to US $. Foreign currency will be converted to Sri Lankan rupees using middle exchange rate published by Central Bank of Sri Lanka, on the date 28 days prior to date of closing of bids. Page 17 of 100

24 Bid Validity Period 15.1 The Bid Shall be Valid up to 7 th May Amount of Bid Security Validity of Bid Security 16.1 The Bid Security Shall be Sri Lankan Rupees 3 million per package and will vary proportionately according to the number of packages The Bid Security shall be valid up to 4 th June Pre-Bid Meeting 17.1 A Pre-Bid meeting will be held on 25 th October 2017 at 02:00 P.M. at the Auditorium of the Ministry of National Integration and Reconciliation, No.34, Narahenpita Road, Nawala. Sealing and marking of Bids 19.2 The bidder shall seal the ORIGINAL Technical Proposal and ORIGINAL Financial Proposal and other documents specified in the same clause above, in separate inner envelopes and place these in one outer envelope, duly marking the inner envelopes as ORIGINAL Technical Proposal and ORIGINAL Financial Proposal including soft financing arrangement. Clearly marked Two (02) envelopes, containing two (2) copies of (a) the Technical Proposal and two (2) copies of (b) the Financial proposal shall be included in the outer envelope. Envelopes containing copies shall be duly marked as COPY Technical Proposal and COPY Financial Proposal including soft financing arrangement. (Envelope 1 should contain Volume 1 and Volume 2 and Envelope 2 should contain Volume 3). The inner and outer envelopes shall be addressed to: Chairman, Cabinet Appointed Negotiating Committee (CANC) Ministry of National Integration and Reconciliation No 34, Narahenpita Road, Nawala Colombo 03. Sri Lanka. And bear the name of the contract as follows (On the top left-hand corner of the envelope): RFP Document for 50,000 Housing Programme and Package Number: (c) Provide the following warning statement Do not open before the official bid opening In addition to the identification, the inner envelope shall indicate the name and address of the bidder to enable the bid to be returned unopened in case it is declared late pursuant. If the outer envelope is not sealed and marked as above, the Employer will assume no responsibility for the misplacement or premature opening of the bid. Deadline for submission of Bids 20.1 The deadline for submission of Bids shall be (13 th November 2017) on or before 2:00 pm. Page 18 of 100

25 Address for submission of Bids is Chairman, CANC Ministry of National Integration and Reconciliation No. 34, Narahenpita Road, Nawala Sri Lanka. Evaluation and comparison of Bids 27.0 All technical proposals need to be evaluated against the employer s requirements, including context specific requirements to ensure proposals meet the technical criteria and employer s requirements. The technical evaluation will examine philosophy, outline design, features, design criteria, employer s requirements, nature and the scope of the housing programme, the modality, the materials used, specifications, work method, quality assurance, and delivery plan. Only technically acceptable and viable proposals will be further taken forward and examined in terms of availability of confirmed financing. With regards to financing the repayment period, grace period, interest rates, commitment charges, and other financing costs will be examined with the unit price. For this purpose, the repayment schedule will be an important element which will be discounted using a discount factor of 8% and the Net Present Value (NPV) will be considered for evaluating the bidding proposals. Accordingly, successful bidders will be ranked using an appropriate cut-off point. The successful bidders will be awarded with the number of housing packages based on the number applied, capacity, and delivery risk reduction strategy and other ceilings given the urgency of this housing programme. The flowchart illustrates the step by step evaluation process to be followed. (appendix 1 pg. 91 and refer attached evaluation criteria in appendix 2 in pg. 92). Further the evaluation will take the consideration of the technical, financial (pricing), financing, and economic, national perspectives including social cultural and environmental considerations. Local familiarity ability to repair locally, extendibility, multi-generational nature of the housing, use of hazard-free materials, health aspects, opportunities for local employment, and local value addition and other Corporate Social Responsibility (CSR) elements will be taken into consideration. Construction of number of model houses, site visits of contractor s product delivery in the vicinity will also be factored in the evaluation process. The lifetime of the asset, heat and level of comfort stability, durability, inter-generational nature of the asset, compliance to local regulation on the use of materials, quality assurance mechanism in place will also be considered in the evaluation process. All materials including the mix should be tested in accredited laboratories and clearance should be sought from the relevant authorities to ensure quality assurance. Any other factors set out in the RFP document as requirement and preference will also be factored in the evaluation process. Community Contracting to provide local employment opportunities are preferred. Prior to the selection, the contractor will be requested to make a comprehensive presentation on outline design, materials to be used, quality assurance in place, implementation plan including technical specifications and other aspects such as resource scheduling, and delivery plan. The Financial Institution should be a nationally or internationally recognized and accredited. Such financial institution should be acceptable by the Central Bank and the Ministry of Finance and Mass Media. Current Fitch rating Page 19 of 100

26 acquired by the financing institution also to be mentioned and submitted with the technical proposals. Correction of Errors 28.1 (c) If the bid price decreases, the amount stated in the Bid will be adjusted by the Employer with concurrence of the bidder, and it shall be considered binding upon the bidder. If the bidder does not accept the corrected amount of the Bid, his bid will be rejected, and the Bid Security may be forfeited in accordance with CIDA/SBD/04 sub clause Refer Instructions to Bidders clause 28. Sub Clause 28.1 (d) is deleted. Award 29.1 Delete this Sub-Clause and replace as follows: The Employer will issue a Letter of Intention for Award the contract to the successful bidder with the copy to the financing institution notifying them above the status of their bid. The successful bidder shall cause the relevant financing institution to reconfirm their financial commitment for the project and to sign a loan agreement with the Government of Sri Lanka. Under no circumstances the successful bidder or the relevant financing institution will be permitted to change the substance of their offer in disadvantageous manner to the Government of Sri Lanka. An award letter will be issued only after reconfirming the financing commitment by the bank and acceptable to the Government of Sri Lanka i.e. The Department of External Resources, and the Ministry of Finance and Mass Media. The Financing Agreement has to be endorsed by the Department of External Resources or Ministry of Finance and Mass Media. The Government of Sri Lanka or its authorized agency will be the signatory of the same. The Commercial Agreement will come into operation only once the financing agreement is approved and operational. If the financing agreement is not executed the commercial agreement becomes null and void and unenforceable. Amount of Performance Security Percentage of Retention Minimum amount of Interim Payment Certificates Adjudicator proposed by the Employer 32.1 Please refer the Contract Data (RFP Section 4, Sub clause 4.2-page number 24) 34.1 Please refer the Contract Data (RFP Section 4, sub clause 14.3-page number 25) 34.2 Please refer the Contract Data (RFP Section 4, sub clause 14.3-page number 25) 35.1 Please refer the Contract Data (RFP Section 4, sub clause 19.2, 19.4 and page number 26) Page 20 of 100

27 SECTION 3 CONDITIONS OF CONTRACT Condition of Contract applicable for RFP document is Section III of Standard Bidding Document Procurement of Works Design & Build Contracts First Edition Reprinted May 2003published by the Construction Industry Development Authority (CIDA) 123, Wijerama Mawatha, Colombo 03. Sri Lanka. CIDA Publication No. CIDA/SBD/04 Note: Please refer the CIDA Publication No. CIDA/SBD/04 for the purpose to comply with the Conditions of Contract as set out in the Standard Bidding Document Procurement of Works - Design and Build Contracts. CIDA/SBD/04 will be given to the Bidders. Conditions of Contract shall be read conjunction with contract data. Page 21 of 100

28 SECTION -4 CONTRACT DATA If there is any discrepancies between Contract Data and Conditions of Contract, Contract Data shall supersede Conditions of Contract This section shall be read in conjunction with the Section 3 Conditions of Contract and is intended to provide specific information in relation to the corresponding clauses in section 3 Page 22 of 100

29 Section 4 - Contract Data Contract Sub the Sub Clause number (Refers to CIDA Section 3 Conditions of Contract -Clause Number) Sub-Clause Sub-Clause Sub-Clause : Contract Name is: CONSTRUCTION OF 50,000 PERMANENT BRICK AND MORTAR TYPE HOUSES WITH FINANCING ARRANGEMENTS FOR THE CONFLICT AFFECTED DISPLACED FAMILIES IN THE NORTHERN AND EASTERN PROVINCES IN SRI LANKA. : Employers is: The Secretary, Ministry of National Integration and Reconciliation Address: No. 34, Narahenpita Road, Nawala, Sri Lanka : Engineer is: General Manager, National Housing Development Authority (NHDA) Engineer s Representative: District Manager National Housing Development Authority (NHDA) in each District. Address: Sir Chittampalam A Gardiner Mawatha, Colombo-2 Sub-Clause 2.1 Sub-Clause 3.1 : The right to access to, and possession is amended and shall be as follows: Twenty-eight (28) Days from the date from Letter of Acceptance : Engineer s Duties and Authority The Engineer shall obtain the specific approval of the Employer before taking action under the following Sub-Clauses of these Conditions: (a) Consenting to the subletting of any part of the Works under CIDA/SBD/04 Section 3 Sub Clause 4.4(b); (b) Approving an extension of the Time for completion, and/ or any additional payment under CIDA/SBD/04 Section 3 Sub-Clause 19.1 issuing variation under CIDA/SBD/04 Section 3 Sub-Clause 13.1, except in an emergency situation, as reasonably determined by the Engineer. (c) Approving additional payment under CIDA/SBD/04 Section 3 sub-clause 13.3 Notwithstanding the obligation, as set out above, to obtain approval, if, in the opinion of the Engineer, an emergency occurs affecting the safety of life or the Works or of adjoining property, he may, without relieving the Contractor of any of his duties and responsibilities under the Contract, instruct the Contractor to execute all such work or to do all such things as may, in the opinion of the Engineer, be necessary to abate or reduce the risk. The Contractor shall forthwith comply, despite the absence of approval of the Employer, with any such instruction of the Engineer. The Engineer shall determine an addition to the Contract Price, in respect of such instruction, in accordance with CIDA/SBD/04 Section 3 Clause 13.3 and shall notify the Contractor accordingly, with a copy to the Employer. Sub-Clause 4.1 : Key Personnel Schedule of Key Personnel Names with qualifications and experience to be written: 1. One (01) Project Manager (Minimum 10 years of experience as set out in RFP Section 5 Assessment of Qualification Requirements). 2. To deliver the project in an efficient and effective manner, the number of Senior Managers/Engineers/Technical Officials and Designers required. One (1) qualified Engineer with 5 years of experience for 250 housing units. Minimum recommended is one (1) Technical Officer with HND (Higher Page 23 of 100