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TSFP INSTRUCTION TO BIDDERS (ITB) Section-II

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A. General

1. Scope of Bid

1.1 In connection with the Invitation for Bids indicated in the Bid Data Sheet (BDS), the
Employer, as indicated in the BDS, issues these Bidding Documents for the
procurement of Works as specified in Section IX, Works Requirements. The name,
identification, and number of parts (contracts) of the Competitive Bidding are
provided in the BDS.

1.2 Throughout these Bidding Documents:

1.1.1. the term in writing means communicated in written form and delivered
against receipt;

1.1.2. except where the context requires otherwise, words indicating the singular
also include the plural and words indicating the plural also include the
singular; and

1.1.3. day means calendar day.

2. Source of Funds

2.1 The funding will be from the Government of India issued as a long term loan to the
Government of Federal Democratic Republic of Ethiopia and from other local
financial institutions.

3. Fraud and Corruption

3.1 The Government of Federal Democratic Republic of Ethiopia requires that all the
bidders, suppliers, contractors, and consultants under the government financed
contract, observe the highest standard of ethics during the procurement and
execution of such contracts. In pursuit of this policy, it is defined that for the purposes
of this provision, the terms set forth below as follows:

(i) Corrupt practice means the offering, giving, receiving, or soliciting, directly
or indirectly, of anything of value to influence the action of a public official in
the procurement process or in contract execution;

(ii) Fraudulent practice means a misrepresentation or omission of facts in order
to influence a procurement process or the execution of a contract;

(iii) Collusive practice means a scheme or arrangement between two or more
bidders, with or without the knowledge of the Borrower, designed to establish
bid prices at artificial, non-competitive levels; and

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(iv) Coercive practice means harming or threatening to harm, directly or
indirectly, persons or their property to influence their participation in the
procurement process or affect the execution of a contract;

4. Eligible Bidders

4.1 The bid is open to eligible bidders of Indian origin.

A Bidder may be a natural person, private entity, government-owned entity or any
combination of such entities supported by a letter of intent to enter into an agreement
or under an existing agreement in the form of a joint venture or association (JVA). In
the case of a joint venture or association,

4.1.1 unless otherwise specified in the BDS, all partners shall be jointly and
severally liable, and

4.1.2 the JVA shall nominate a Representative who shall have the authority
to conduct all business for and on behalf of any and all the partners of
the JVA during the bidding process and, in the event the JVA is
awarded the Contract, during contract execution.

4.2 A Bidder, and all parties constituting the Bidder, shall be of Indian nationality. A
Bidder shall be deemed to have the nationality of a country if the Bidder is a citizen or
is constituted, incorporated, or registered and operates in conformity with the
provisions of the laws of that country. This criterion shall also apply to the
determination of the nationality of proposed subcontractors or suppliers for any part
of the Contract including related Services.

4.3 A Bidder shall not have a conflict of interest. All Bidders found to have a conflict of
interest shall be disqualified. A Bidder may be considered to have a conflict of
interest with one or more parties in this bidding process, if:

4.3.1 they have controlling partners in common; or
4.3.2 they receive or have received any direct or indirect subsidy from any of them;
or
4.3.3 they have the same legal representative for purposes of this bid; or
4.3.4 they have a relationship with each other, directly or through common third
parties, that puts them in a position to have access to information about or
influence on the bid of another Bidder, or influence the decisions of the
Purchaser regarding this bidding process; or
4.3.5 a Bidder participates in more than one bid in this bidding process.
Participation by a Bidder in more than one Bid will result in the disqualification
of all Bids in which the party is involved. However, this does not limit the
inclusion of the same subcontractor in more than one bid; or
4.3.6 a Bidder participated as a consultant in the preparation of the design or
technical specifications of the works that are the subject of the bid;
4.3.7 a Bidder was affiliated with a firm or entity that has been hired (or is proposed
to be hired) by the Employer as Engineer for the contract.
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4.4 Bidders shall provide such evidence of their continued eligibility satisfactory to the
Employer, as the Employer shall reasonably request.

5. Eligible Materials, Equipment, and Services

5.1 The materials, equipment and services to be supplied under the Contract may have
their origin as stated in BDS except the countries covered by the sub clause below;

5.1.1 Countries prohibited by the Government of Federal Democratic Republic of
Ethiopia for commercial relations with that country;
5.1.2 by an Act of Compliance with a Decision of the United Nations Security
Council taken under Chapter VII of the Charter of the United Nations, the
Employers Country prohibits any import of goods from that Country or any
payments to persons or entities in that Country.

At the Employers request, Bidders may be required to provide evidence of the origin
of materials, equipment and services.

5.2 For purposes of ITB 5.1 above, origin means the place where the materials and
equipment are mined, grown, produced or manufactured, and from which the
services are provided. Materials and equipment are produced when, through
manufacturing, processing, or substantial or major assembling of components, a
commercially recognized product results that is substantially in its basic
characteristics or in purpose or utility from its components.

B. The Bidding Documents

6. Content of Bidding Documents

6.1 The Bidding Documents consist of Volumes 1 and 2, which include all the Sections
indicated below, and should be read in conjunction with any Addenda issued in
accordance with ITB 8.

VOLUME 1 Bidding Procedures, Conditions of Contract and Contract Forms

The facilities required, bidding procedures, contract terms and technical requirements
are prescribed in the bidding documents. The bidding documents include the
following sections:

Section - I Invitation for Bids (IFB)
Section - II Instructions to Bidders (ITB)
Section - III Bid Data Sheet (BDS)
Section - IV Qualification Criteria
Section - V Bidding Forms
V.1 Form of Bid
V.2 Appendix to Bid
V.3 Bill of Quantities
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V.4 Technical Proposals
V.5 Form of Bid Security

Section - VI Conditions of Contract Part-I- General Conditions
Section - VII Conditions of Contract Part-II- Conditions of
Particular Applications
Section - VIII Contract Forms

Volume II Works Requirements

Section -IX. Works Requirements
Sub-Section - IX.1 Scope of Works
Sub-Section - IX.2 Technical Specification
Sub-Section - IX.3 Drawings
Sub-Section - IX.4 Supplementary Information

6.2 The Invitation for Bids issued by the Employer is not part of the Bidding Document.

6.3 The Employer is not responsible for the completeness of the Bidding Documents and
their addenda, if they were not obtained directly from the source stated by the
Employer in the Invitation for Bids.

6.4 The Bidder is expected to examine all instructions, forms, terms, and specifications in
the Bidding Document. Failure to furnish all information or documentation required
by the Bidding Documents may result in the rejection of the bid.

7. Clarification of Bidding Document, Site Visit, Pre-Bid Meeting

7.1 A prospective Bidder requiring any clarification of the Bidding Document shall contact
the Employer in writing at the Employers address indicated in the BDS or raise his
enquiries during the pre-bid meeting if provided for in accordance with ITB 7.4. The
Employer will respond in writing to any request for clarification, provided that such
request is received no later than twenty-one (21) days prior to the deadline for
submission of bids. The Employer shall forward copies of its response to all Bidders
who have acquired the Bidding Document in accordance with ITB 6.3, including a
description of the inquiry but without identifying its source. Should the Employer
deem it necessary to amend the Bidding Document as a result of a request for
clarification, it shall do so following the procedure under ITB 8 and ITB 22.2.

7.2 The Bidder is advised to visit and examine the Site of Works and its surroundings
and obtain for itself on its own responsibility all information that may be necessary for
preparing the bid and entering into a contract for construction of the Works. The
costs of visiting the Site shall be at the Bidders own expense.

7.3 The Bidder and any of its personnel or agents will be granted permission by the
Employer to enter upon its premises and lands for the purpose of such visit, but only
upon the express condition that the Bidder, its personnel, and agents will release and
indemnify the Employer and its personnel and agents from and against all liability in
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respect thereof, and will be responsible for death or personal injury, loss of or
damage to property, and any other loss, damage, costs, and expenses incurred as a
result of the inspection.

7.4 The Bidders designated representative is invited to attend a pre-bid meeting, if
provided for in the BDS. The purpose of the meeting will be to clarify issues and to
answer questions on any matter that may be raised at that stage.

7.5 The Bidder is requested, as far as possible, to submit any questions in writing, to
reach the Employer not later than one week before the meeting.

7.6 Minutes of the pre-bid meeting, including the text of the questions raised, without
identifying the source, and the responses given, together with any responses
prepared after the meeting, will be transmitted promptly to all Bidders who have
acquired the Bidding Documents in accordance with ITB 6.3. Any modification to the
Bidding Documents that may become necessary as a result of the pre-bid meeting
shall be made by the Employer exclusively through the issue of an Addendum
pursuant to ITB 8 and not through the minutes of the pre-bid meeting.

7.7 Non attendance at the pre-bid meeting will not be a cause for disqualification of a
Bidder.

8. Amendment of Bidding Document

8.1 At any time prior to the deadline for submission of bids, the Employer may amend the
Bidding Documents by issuing addenda.

8.2 Any addendum issued shall be part of the Bidding Documents and shall be
communicated in writing to all who have obtained the Bidding Document from the
Employer in accordance with ITB 6.3.

8.3 To give prospective Bidders reasonable time in which to take an addendum into
account in preparing their bids, the Employer may, at its discretion, extend the
deadline for the submission of bids, pursuant to ITB 22.2

C. Preparation of Bids

9. Cost of Bidding

9.1 The Bidder shall bear all costs associated with the preparation and submission of its
Bid, and the Employer shall not be responsible or liable for those costs, regardless of
the conduct or outcome of the bidding process.

10. Language of Bid

10.1 The Bid, as well as all correspondence and documents relating to the bid exchanged
by the Bidder and the Employer, shall be written in the language specified in the
BDS. Supporting documents and printed literature that are part of the Bid may be in
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another language provided they are accompanied by an accurate translation of the
relevant passages in the language specified in the BDS, in which case, for
purposes of interpretation of the Bid, such translation shall govern.

11. Documents Comprising the Bid

11.1 The Bid shall comprise the following:

11.1.1 Bid Form
11.1.2 Completed schedules as required, including priced Bill of Quantities,
in accordance with ITB 12 and 14;
11.1.3 Bid Security, in accordance with ITB 19;
11.1.4 Alternative bids, if permissible, in accordance with ITB 13;
11.1.5 Written confirmation authorizing the signatory of the Bid to commit the
Bidder, in accordance with ITB 20.2;
11.1.6 Documentary evidence in accordance with ITB 17 establishing the
Bidders qualifications to perform the contract if its Bid is accepted;
11.1.7 Technical Proposal in accordance with ITB 16; and
11.1.8 Any other document required in the BDS.

11.2 In addition to the requirements under ITB 11.1, bids submitted by a JVA shall include
a copy of the Joint Venture Agreement entered into by all partners. Alternatively, a
Letter of Intent to execute a Joint Venture Agreement in the event of a successful bid
shall be signed by all partners and submitted with the bid, together with a copy of the
proposed agreement.

12. Bid Form and Schedules

12.1 The Bid Form and Schedules, including the Bill of Quantities, shall be prepared using
the relevant forms furnished in Section V, Bidding Forms. The forms must be
completed without any alterations to the text, and no substitutes shall be accepted.
All blank spaces shall be filled in with the information requested.

13. Alternative Bids

13.1 Unless otherwise indicated in the BDS, alternative bids shall not be considered.

13.2 When alternative times for completion are explicitly invited, a statement to that effect
will be included in the BDS, as will the method of evaluating different times for
completion.

13.3 Except as provided under ITB 13.4 below, Bidders wishing to offer technical
alternatives to the requirements of the bidding document must first price the
Employers design as described in the bidding document and shall further provide all
information necessary for a complete evaluation of the alternative by the Employer,
including drawings, design calculations, technical specifications, breakdown of
prices, and proposed construction methodology and other relevant details. Only the
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technical alternatives, if any, of the lowest evaluated Bidder conforming to the basic
technical requirements shall be considered by the Employer.

13.4 When specified in the BDS, Bidders are permitted to submit alternative technical
solutions for specified parts of the Works, and such parts will be identified in the
BDS, as will the method for their evaluating, and described in Section VI, Works
Requirements.

14. Bid Prices and Discounts

14.1 The prices and discounts quoted by the Bidder in the Bid Form and in the Bill of
Quantities shall conform to the requirements specified below.

14.2 The Bidder shall fill in rates and prices for all items of the Works described in the Bill
of Quantities. Items against which no rate or price is entered by the Bidder will not
be paid for by the Employer when executed and shall be deemed covered by the
rates for other items and prices in the Bill of Quantities.

14.3 The price to be quoted in the Bid Form, in accordance with ITB 12.1, shall be the
total price of the Bid, excluding any discounts offered.

14.4 The Bidder shall quote any unconditional discounts and the methodology for their
application in the Bid Form, in accordance with ITB 12.1.

14.5 Unless otherwise provided in the BDS and the Contract, the rates and prices
quoted by the Bidder are subject to adjustment during the performance of the
Contract in accordance with the provisions of the Conditions of Contract. In such a
case, the Bidder shall furnish the indices and weightings for the price adjustment
formulae in the Schedule of Adjustment Data and the Employer may require the
Bidder to justify its proposed indices and weightings.

14.6 If so indicated in ITB 1.1, bids are being invited for individual lots/ parts (contracts) or
for any combination of lots/ parts (packages). Bidders wishing to offer any price
reduction for the award of more than one Contract shall specify in their bid the price
reductions applicable to each package, or alternatively, to individual Contracts within
the package. Price reductions or discounts shall be submitted in accordance with
ITB 14.4, provided the bids for all lots (contracts) are submitted and opened at the
same time.

14.7 All duties, taxes, and other levies payable by the Contractor under the Contract, or
for any other cause, as of the date 28 days prior to the deadline for submission of
bids, shall be included in the rates and prices and the total Bid Price submitted by the
Bidder.

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15. Currencies of Bid and Payment

15.1 The currency(ies) of the bid shall be, as specified in the BDS.

15.2 Bidder shall specify the amount that he wishes to receive in Ethiopian Birr and
maximum of two other convertible currencies on percentage basis.

15.3 Bidders may be required by the Employer to justify, to the Employers satisfaction,
their local and foreign currency requirements, and to substantiate that the amounts
included in the unit rates and prices and shown in the Summary of Payment
Currency Schedule, in which case a detailed breakdown of the foreign currency
requirements shall be provided by Bidders.

16. Documents Comprising the Technical Proposal

16.1 The Bidder shall furnish a Technical Proposal including a statement of work methods,
equipment, personnel, schedule and any other information as stipulated in Section V,
in sufficient detail to demonstrate the adequacy of the Bidders proposal to meet the
work requirements and the completion time.

17. Documents Establishing the Qualifications of the Bidder

17.1 To establish its qualifications to perform the Contract in accordance with Section IV,
Qualification Criteria, the Bidder shall provide the information requested in the
corresponding information sheets included in Section V, Bidding Forms.

18. Period of Validity of Bids

18.1 Bids shall remain valid for the period specified in the BDS after the bid submission
deadline date prescribed by the Employer. A bid valid for a shorter period shall be
rejected by the Employer as non responsive.

18.2 In exceptional circumstances, prior to the expiration of the bid validity period, the
Employer may request Bidders to extend the period of validity of their bids. The
request and the responses shall be made in writing. If a bid security is requested in
accordance with ITB 19, it shall also be extended for twenty-eight (28) days beyond
the deadline of the extended validity period. A Bidder may refuse the request without
forfeiting its bid security. A Bidder granting the request shall not be required or
permitted to modify its bid, except as provided in ITB 18.3.

18.3 In the case of fixed price contracts, if the award is delayed by a period exceeding
fifty-six (56) days beyond the expiry of the initial bid validity, the Contract price shall
be adjusted by a factor specified in the request for extension. Bid evaluation shall be
based on the Contract Price without taking into consideration the above correction.

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19. Bid Security

19.1 Unless otherwise specified in the BDS, the Bidder shall furnish as part of its bid, a
bid security in original form and in the amount and currency specified in the BDS.

19.2 The bid security shall be a demand guarantee at the Bidders option, in any of the
following forms:

a. an unconditional bank guarantee;
b. an irrevocable letter of credit;
c. a cashiers or certified check; or
d. any other security indicated in the BDS,

from a reputable source from an eligible country. The bid security shall be submitted
either using the Bid Security Form included in Section V, Bidding Forms, in the case
of a bank guarantee, or in another substantially similar format approved by the
Employer prior to bid submission. In either case, the form must include the complete
name of the Bidder. The bid security shall be valid for twenty-eight (28) days beyond
the original validity period of the bid, or beyond any period of extension if requested
under ITB 18.2.

19.3 Any bid not accompanied by an enforceable and compliant bid security, if one is
required in accordance with ITB 19.1, shall be rejected by the Employer as non
responsive.

19.4 The bid security of unsuccessful Bidders shall be returned as promptly as possible
upon the successful Bidders furnishing of the performance security pursuant to ITB
41.

19.5 The bid security of the successful Bidder shall be returned as promptly as possible
once the successful Bidder has signed the Contract and furnished the required
performance security.

19.6 The bid security may be forfeited:

19.6.1 if a Bidder withdraws its bid during the period of bid validity specified by the
Bidder on the Bid Form, except as provided in ITB 18.2 or

19.6.2 if the successful Bidder fails to:

19.6.2.1 sign the Contract in accordance with ITB 40; or
19.6.2.2 furnish a performance security in accordance with ITB 41.

19.7 The bid security of a JVA shall be in the name of the JVA that submits the bid. If the
JVA has not been legally constituted at the time of bidding, the Bid Security shall be
in the names of all future partners as named in the letter of intent referred to in ITB
4.1.

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19.8 If a bid security is not required in the BDS, and

19.8.1 if a Bidder withdraws its bid during the period of bid validity specified by the
Bidder on the Bid Form, except as provided in ITB 18.2, or

19.8.2 if the successful Bidder fails to:

19.8.2.1 sign the Contract in accordance with ITB 40; or
19.8.2.2 furnish a performance security in accordance with ITB 41;

the Employer may, if provided for in the BDS, declare the Bidder ineligible to be
awarded a contract by the Employer for a period of time as stated in the BDS.

20. Format and Signing of Bid

20.1 The Bidder shall prepare one original of the documents comprising the bid as
described in ITB 11 and clearly mark it ORIGINAL. Alternative bids, if permitted in
accordance with ITB 13, shall be clearly marked ALTERNATIVE. In addition, the
Bidder shall submit copies of the bid, in the number specified in the BDS and clearly
mark them COPY. In the event of any discrepancy between the original and the
copies, the original shall prevail.

20.2 The original and all copies of the bid shall be typed or written in indelible ink and shall be
signed by a person duly authorized to sign on behalf of the Bidder. This authorization
shall consist of a written confirmation as specified in the BDS and shall be attached to
the bid. The name and position held by each person signing the authorization must be
typed or printed below the signature. All pages of the bid where entries or amendments
have been made shall be signed or initialled by the person signing the bid.

20.3 Any inter-lineation, erasures, or overwriting shall be valid only if they are signed or
initialled by the person signing the bid.

D. Submission and Opening of Bids

21. Sealing and Marking of Bids

21.1 The Bidder shall enclose the original and all copies of the bid, including alternative
bids, if permitted in accordance with ITB 13, in separate sealed envelopes, duly
marking the envelopes as ORIGINAL, ALTERNATIVE and COPY. These envelopes
containing the original and the copies shall then be enclosed in one single envelope.

21.2 The inner and outer envelopes shall:

21.2.1 bear the name and address of the Bidder;

21.2.2 be addressed to the Employer in accordance with ITB 22.1;

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21.2.3 bear the specific identification of this bidding process indicated in the BDS
1.1; and

21.2.4 bear a warning not to open before the time and date for bid opening.

21.3 If all envelopes are not sealed and marked as required, the Employer will assume no
responsibility for the misplacement or premature opening of the bid.

22. Deadline for Submission of Bids

22.1 Bids must be received by the Employer at the address and no later than the date and
time indicated in the BDS. When so specified in the BDS, bidders shall have the
option of submitting their bids electronically. Bidders submitting bids electronically
shall follow the electronic bid submission procedures specified in the BDS.

22.2 The Employer may, at its discretion, extend the deadline for the submission of bids
by amending the Bidding Document in accordance with ITB 8, in which case all rights
and obligations of the Employer and Bidders previously subject to the deadline shall
thereafter be subject to the deadline as extended.

23. Late Bids

23.1 The Employer shall not consider any bid that arrives after the deadline for submission
of bids, in accordance with ITB 22. Any bid received by the Employer after the
deadline for submission of bids shall be declared late, rejected, and returned
unopened to the Bidder.

24. Withdrawal, Substitution and Modification of Bids

24.1 A Bidder may withdraw, substitute, or modify its bid after it has been submitted by
sending a written notice, duly signed by an authorized representative, and shall include a
copy of the authorization in accordance with ITB 20.2, (except that withdrawal notices do
not require copies). The corresponding substitution or modification of the bid must
accompany the respective written notice. All notices must be:

24.1.1 prepared and submitted in accordance with ITB 20 and ITB 21 (except that
withdrawals notices do not require copies), and in addition, the respective
envelopes shall be clearly marked WITHDRAWAL, SUBSTITUTION,
MODIFICATION; and

24.1.2 received by the Employer prior to the deadline prescribed for submission of
bids, in accordance with ITB 22.

24.2 Bids requested to be withdrawn in accordance with ITB 24.1 shall be returned
unopened to the Bidders.

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24.2 No bid may be withdrawn, substituted, or modified in the interval between the
deadline for submission of bids and the expiration of the period of bid validity
specified by the Bidder on the Bid Form or any extension thereof.

25. Bid Opening

25.1 The Employer shall open the bids in public, in the presence of Bidders` designated
representatives and anyone who choose to attend, and at the address, date and time
specified in the BDS. Any specific electronic bid opening procedures required if
electronic bidding is permitted in accordance with ITB 22.1, shall be as specified in
the BDS.

25.2 First, envelopes marked WITHDRAWAL shall be opened and read out and the
envelope with the corresponding bid shall not be opened, but returned to the Bidder.
No bid withdrawal shall be permitted unless the corresponding withdrawal notice
contains a valid authorization to request the withdrawal and is read out at bid
opening. Next, envelopes marked SUBSTITUTION shall be opened and read out and
exchanged with the corresponding bid being substituted, and the substituted bid shall
not be opened, but returned to the Bidder. No bid substitution shall be permitted
unless the corresponding substitution notice contains a valid authorization to request
the substitution and is read out at bid opening. Envelopes marked MODIFICATION
shall be opened and read out with the corresponding bid. No bid modification shall be
permitted unless the corresponding modification notice contains a valid authorization
to request the modification and is read out at bid opening. Only envelopes that are
opened and read out at bid opening shall be considered further.

25.3 All other envelopes shall be opened one at a time, reading out: the name of the
Bidder and whether there is a modification; the Bid Price(s), including any discounts
and alternative offers; the presence of a bid security, if required; and any other
details as the Employer may consider appropriate. Only discounts and alternative
offers read out at bid opening shall be considered for evaluation. If so requested by
the Employer in the BDS, the Bid Form and the Bill of Quantities are to be initialled
by representatives of the Employer attending bid opening in the manner indicated in
the BDS. No bid shall be rejected at bid opening except for late bids, in accordance
with ITB 23.1.

25.4 The Employer shall prepare a record of the bid opening that shall include, as a
minimum: the name of the Bidder and whether there is a withdrawal, substitution, or
modification; the Bid Price, per lot if applicable, including any discounts and
alternative offers; and the presence or absence of a bid security, if one was required.
The Bidders representatives who are present shall be requested to sign the record.
The omission of a Bidders signature on the record shall not invalidate the contents
and effect of the record. A copy of the record shall be distributed to all Bidders.

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E. Evaluation and Comparison of Bids

26. Confidentiality

26.1 Information relating to the evaluation of bids and recommendation of contract award
shall not be disclosed to Bidders or any other persons not officially concerned with
such process until information on Contract award is communicated to all Bidders.

26.2 Any attempt by a Bidder to influence the Employer in the evaluation of the bids or
Contract award decisions may result in the rejection of its bid.

26.3 Notwithstanding ITB 26.2, from the time of bid opening to the time of Contract award,
if any Bidder wishes to contact the Employer on any matter related to the bidding
process, it may do so in writing.

27. Clarification of Bids

27.1 To assist in the examination, evaluation, and comparison of the bids, and
qualification of the Bidders, the Employer may, at its discretion, ask any Bidder for a
clarification of its bid. Any clarification submitted by a Bidder that is not in response
to a request by the Employer shall not be considered. The Employers request for
clarification and the response shall be in writing. No change in the prices or
substance of the bid shall be sought, offered, or permitted, except to confirm the
correction of arithmetic errors discovered by the Employer in the evaluation of the
bids, in accordance with ITB 31.

27.2 If a Bidder does not provide clarifications of its bid by the date and time set in the
Contracting Agencys request for clarification, its bid may be rejected.

28. Deviations, Reservations, and Omissions

28.1 During the evaluation of bids, the following definitions apply:

28.1.1 Deviation is a departure from the requirements specified in the Bidding
Document;

28.1.2 Reservation is the setting of limiting conditions or withholding from complete
acceptance of the requirements specified in the Bidding Document; and

28.1.3 Omission is the failure to submit part or all of the information or
documentation required in the Bidding Document.

29. Determination of Responsiveness

29.1 The Employers determination of a bids responsiveness is to be based on the
contents of the bid itself, as defined in ITB11.

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29.2 A substantially responsive bid is one that meets the requirements of the Bidding
Document without material deviation, reservation, or omission. A material deviation,
reservation, or omission is one that,

29.2.1 if accepted, would

29.2.1.1 affect in any substantial way the scope, quality, or
performance of the Works specified in the Contract; or
29.2.1.2 limit in any substantial way, inconsistent with the Bidding
Document, the Employers rights or the Bidders obligations
under the proposed Contract; or

29.2.2 if rectified, would unfairly affect the competitive position of other Bidders
presenting substantially responsive bids.

29.3 The Employer shall examine the technical aspects of the bid submitted in accordance
with ITB 16, Technical Proposal, in particular, to confirm that all requirements of
Section VI, Works Requirements have been met without any material deviation or
reservation.

29.3 If a bid is not substantially responsive to the requirements of the Bidding Document, it
shall be rejected by the Employer and may not subsequently be made responsive by
correction of the material deviation, reservation, or omission.

30. Non-material Non-conformities

30.1 Provided that a bid is substantially responsive, the Employer may waive any non-
conformities in the bid that do not constitute a material deviation, reservation or
omission.

30.2 Provided that a bid is substantially responsive, the Employer may request that the
Bidder submit the necessary information or documentation, within a reasonable
period of time, to rectify nonmaterial nonconformities in the bid related to
documentation requirements. Requesting information or documentation on such
nonconformities shall not be related to any aspect of the price of the bid. Failure of
the Bidder to comply with the request may result in the rejection of its bid.

30.3 Provided that a bid is substantially responsive, the Employer shall rectify nonmaterial
nonconformities related to the Bid Price. To this effect, the Bid Price shall be
adjusted, for comparison purposes only, to reflect the price of a missing or non-
conforming item or component. The adjustment shall be made using the method
indicated in Section IV, Qualification Criteria.

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31. Correction of Arithmetical Errors

31.1 Provided that the bid is substantially responsive, the Employer shall correct
arithmetical errors on the following basis:

(a) if there is a discrepancy between the unit price and the total price that is
obtained by multiplying the unit price and quantity, the unit price shall prevail
and the total price shall be corrected, unless in the opinion of the Employer
there is an obvious misplacement of the decimal point in the unit price, in
which case the total price as quoted shall govern and the unit price shall be
corrected;

(b) if there is an error in a total corresponding to the addition or subtraction of
subtotals, the subtotals shall prevail and the total shall be corrected; and

(c) if there is a discrepancy between words and figures, the amount in words
shall prevail, unless the amount expressed in words is related to an arithmetic
error, in which case the amount in figures shall prevail subject to (a) and (b)
above.

31.2 If the Bidder that submitted the lowest evaluated bid does not accept the correction of
errors, its bid shall be disqualified.

32. Conversion to Single Currency

32.1 For evaluation and comparison purposes, the currency(ies) of the bid shall be
converted into a single currency as specified in the BDS.

33. Margin of Preference

33.1 Unless otherwise specified in the BDS, a margin of preference shall not apply.

34. Evaluation of Bids

34.1 The Employer shall use the criteria and methodologies listed in this Clause. No other
evaluation criteria or methodologies shall be permitted.

34.2 To evaluate qualification of the bidder and bid, the Employer shall adopt following
marking system :

A total of 100 marks have been kept for completeness of bid document and
qualification of bidder. Merit points shall be allotted for different items under
consideration are given below:

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The evaluation shall be carried out in following categories.

Sl. No Description Max Marks
1 Completeness of the bid document
(Understanding of requirement, Document
presentation)
10
2 No of years the firm is in existence 10
3 Average annual turnover during last three years 10
4 Nature and type of projects executed including similar
type of jobs
10
5 Construction Equipment 15
6 Personnel Strength 15
7 History of Non Performance/litigations of main bidder /
joint venture partners
10
8 Local representative / partner qualifications 5
9 Financial strength of bidder / Joint Venture partners 15
Total Evaluation Score 100

A minimum 60 % marks shall be secured by the bidder to become qualified for
financial evaluation.

Financial Evaluation

To evaluate a bid, the Employer shall consider the following:

(a) the bid price, excluding Provisional Sums and the provision, if any, for
contingencies in the Summary Bill of Quantities, but including Daywork items,
where priced competitively;

(b) price adjustment for correction of arithmetic errors in accordance with ITB
31.1;

(c) price adjustment due to discounts offered in accordance with ITB 14.4;

(d) adjustment for nonconformities in accordance with ITB 30.3;

34.3 The estimated effect of the price adjustment provisions of the Conditions of Contract,
applied over the period of execution of the Contract, shall not be taken into account
in bid evaluation.

34.4 If these Bidding Documents allows Bidders to quote separate prices for different
parts (contracts), and the award to a single Bidder of multiple parts (contracts), the
methodology to determine the lowest evaluated price of the part (contract)
combinations, including any discounts offered in the Bid Form, is specified in BDS

34.5 If the bid, which results in the lowest Evaluated Bid Price, is seriously unbalanced or
front loaded in the opinion of the Employer, the Employer may require the Bidder to
produce detailed price analyses for any or all items of the Bill of Quantities, to
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demonstrate the internal consistency of those prices with the construction methods
and schedule proposed. After evaluation of the price analyses, taking into
consideration the schedule of estimated Contract payments, the Employer may
require that the amount of the performance security be increased at the expense of
the Bidder to a level sufficient to protect the Employer against financial loss in the
event of default of the successful Bidder under the Contract.

35. Comparison of Bids

35.1 The Employer shall compare all substantially responsive bids to determine the lowest
evaluated bid, in accordance with ITB 34.2.

36. Qualification of the Bidder

36.1 The Employer shall determine to its satisfaction whether the Bidder that is selected
as having submitted the lowest evaluated and substantially responsive bid meets the
qualifying criteria specified in Section IV, Qualification Criteria.

36.2 The determination shall be based upon an examination of the documentary evidence
of the Bidders qualifications submitted by the Bidder, pursuant to ITB 17.1.

36.3 An affirmative determination shall be a prerequisite for award of the Contract to the
Bidder. A negative determination shall result in disqualification of the bid, in which
event the Employer shall proceed to the next lowest evaluated bid to make a similar
determination of that Bidders qualifications to perform satisfactorily.

37. Employers Right to Accept Any Bid, and to Reject Any or All Bids

37.1 The Employer reserves the right to accept or reject any bid, and to annul the bidding
process and reject all bids at any time prior to contract award, without thereby
incurring any liability to Bidders. In case of annulment, all bids submitted and
specifically, bid securities, shall be promptly returned to the Bidders.

F. Award of Contract

38. Award Criteria

38.1 The Employer shall award the Contract to the qualified Bidder whose offer has been
determined to be the lowest evaluated bid and is substantially responsive to the
Bidding Document, provided further that the Bidder is determined to be qualified to
perform the Contract satisfactorily.

39. Notification of Award

39.1 Prior to the expiration of the period of bid validity, the Employer shall notify the
successful Bidder, in writing, that its bid has been accepted. The notification letter
(hereinafter and in the Conditions of Contract and Contract Forms called the Letter
of Acceptance) shall specify the sum that the Employer will pay the Contractor in
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consideration of the execution and completion of the Works (hereinafter and in the
Conditions of Contract and Contract Forms called the Contract Price) and the
requirement for the Contractor to remedy any defects therein as prescribed by the
Contract.

39.2 Until a formal contract is prepared and executed, the notification of award shall
constitute a binding Contract.

39.3 The Employer shall promptly respond in writing to any unsuccessful Bidder who, after
notification of award in accordance with ITB 39.1, requests in writing the grounds on
which its tender was not selected.

40. Signing of Contract

40.1 Promptly after notification, the Employer shall send the successful Bidder the
Contract Agreement.

40.2 Within twenty-eight (28) days of receipt of the Contract Agreement, the successful
Bidder shall sign, date, and return it to the Employer.

41. Performance Security

41.1 Within twenty-eight (28) days of the receipt of notification of award from the
Employer, the successful Bidder shall furnish the performance security in accordance
with the conditions of contract, subject to ITB 34.5, using for that purpose the
Performance Security Form included in Section IX, - Contract Forms, or another form
acceptable to the Employer. If the performance security furnished by the successful
Bidder is in the form of a bond, it shall be issued by a bonding or insurance company
that has been determined by the successful Bidder to be acceptable to the Employer.
A foreign institution providing a bond shall have a correspondent financial institution
located in the Employers Country.

41.2 Failure of the successful Bidder to submit the above-mentioned Performance
Security or sign the Contract shall constitute sufficient grounds for the annulment of
the award and forfeiture of the bid security. In that event the Employer may award
the Contract to the next lowest evaluated Bidder whose offer is substantially
responsive and is determined by the Employer to be qualified to perform the Contract
satisfactorily