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COMMERCE BUSINESS DAILY ISSUE OF MAY 9,1996 PSA#1591

Deputy Minister Andrzej Ksiezny Ministry of Post and Telecommunications Pl. Malachowskiego 2 00-940 Warsaw, Poland Tel: (48-22) 27 98 62 Fax: (48-22)26 71 33

C -- PRIVATIZATION STRATEGY FOR TPSA DUE 060796 POC Carol Stillwell, USTDA, Room 309, SA-16, Washington, D.C. 20523-1602, Tel: (703) 875-4357, Fax No.: (703) 875-4009 The Ministry of Posts and Telecommunications of Poland invites submission of Prequalification Statements from interested U.S. firms which are qualified on the basis of experience and capability to develop a feasibility study for the Ministry of Posts and Telecommunications to advise and recommend a strategy for the privatization of the national telephone company TPSA. Submission deadline for prequalification statements will be June 7, 1996. Based upon the Prequalification Statements, the Ministry of Posts and Telecommunications will develop a short list of qualified firms which will be invited in writing to submit a formal Technical Proposal to carry out the study. The Government of Poland has announced that there will be a privatization of TPSA (likely in the year 1998). However, the timing, scope and nature of the privatization has yet to be determined. The Ministry of Posts and Telecommunications is responsible for developing the plan for the restructuring of TPSA, the privatization, and the changes in telecommunications policy, laws and regulations. The Ministry has asked USTDA to finance a study and advisory services of a U.S. firm or consortium on the development of a strategy for the privatization of TPSA. A similar study is underway by the British firm Shroeders, as well as an internal study being performed by TPSA. This project will be directed by Deputy Minister Andrzej Ksiezny, who will Chair a Steering Committee for the study. He will be assisted by the Ministry of Post and Telecommunications' Miroslaw Fereniec, Director of the Department of Economic Policy and Miroslaw Zurawski, Director of the Department of Technology and Development, and Professor Marian Dabrowski, Adviser to the Minister. The firm selected to do this study will serve as advisers to this Steering Committee, and to Deputy Minister Ksiezny. They will also regularly inform the U.S. Embassy Warsaw and USTDA of the progress and status of the project. Two major areas to be addressed are options and the consultants recommendations for the actual privatization process, and the changes that should be made to the telecommunications policy, laws, and regulations. The policy issues are critical to achieving sector reform, a competitive market, and to provide assurances to potential investors in TPSA's privatization that there are well defined, transparent policies and regulations in the telecommunications sector. The preliminary report for this assistance is to be submitted to the Ministry in September, 1996 and the final report not later than October 30, 1996. The four Tasks are defined in the RFP and are summarized here: Task 1.Review different privatization strategies with respect to aims, methods, and effects. Task 2. Review privatizations of telecom operators in the European Union and in countries from various regions, including Europe, Latin America, and Asia, with emphasis on comparable telecommunication sectors. Task 3.Analyze the telecommunications sector in Poland and the position of TPSA on the market, with particular regard to the benefits of privatization to the state and to the sector, the timing of privatization, and changes required in Polish regulation. Task 4.Presentation of alternative strategies and the advisors recommendations prioritized and supported. The U.S. firm selected will be paid in U.S. dollars from a $422,000 grant to the Ministry of Post and Telecommunications from the U.S. Trade and Development Agency (TDA). This grant is expected to be signed in early May. A detailed Request for Proposals (RFP), which includes the requirements for submission of the Prequalification Statements and the Technical Proposal, the Terms of Reference, and a background definitional mission/desk study report are available from TDA, at Room 309, SA-16, Washington, D.C. 20523-1621. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. Please include your firms name, contact person, address, and telephone number. Some firms have found that RFP materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want TDA to use a courier delivery service should include the name of the courier company and your firm's account number in the request for the RFP. No telephone requests for the RFP will be honored. Only U.S. firms and individuals may bid on this TDA financed activity. Interested firms, their subcontractors and employees of all participants must qualify under TDA's nationality requirements as of the due date for submission of qualifications and proposals and, if selected to carry out the TDA-financed activity, must continue to meet such requirements throughout the duration of the TDA-financed activity. All goods and services to be provided by the selected firm shall have their nationality, source and origin in the U.S. or Poland. The U.S. firm may use subcontractors from Poland for up to 20 percent of the TDA grant amount. Details of TDA's nationality requirements and mandatory contract clauses are also included in the RFP. Interested U.S. firms should submit their Prequalification Statements as outlined in the RFP in English directly to the Ministry of Posts and Telecommunications at the above address. Evaluation criteria for the Prequalification Statements and the Technical Proposals are included in the RFP. Price will NOT be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The Ministry of Posts and Telecommunications reserves the right to reject any and/or all Prequalification Statements or Technical Proposals. The Ministry of Posts and Telecommunications also reserves the right to contract with the selected firm for subsequent work related to the project. The Ministry of Posts and Telecommunications is not bound to pay for any costs associated with the preparation and submission of Proposals. (0128)

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