Peter G.M. Smith, Senior Operations Officer, Finance and Basic Infrastructure Division 1, Inter-American Development Bank, 1300 New York Avenue N.W., Washington, D.C. 20577, (202) 623-3819 Phone, (202) 623-1428 Fax

C -- ARGENTINA ANDEAN HIGHWAY PASSES PROJECT POC Peter G.M. Smith, Senior Operations Officer, Finance and Basic Infrastructure Division 1, Inter-American Development Bank, 1300 New York Avenue N.W., Washington, D.C. 20577, (202) 623-3819 Phone, (202) 623-1428 Fax The Inter-American Development Bank invites submission of qualifications and proposal data (collectively referred to as the "Proposal") from interested U.S. firms which are qualified on the basis of experience and capability to conduct the economic, financial, engineering and environmental studies to determine the priorities and optimum level of improvements in road connections between Argentina and Chile. Trade between Chile and the members of MERCOSUR (Argentina, Brazil, Paraguay, and Uruguay) has been increasing at a rate of over 20% per year since 1992. Chile officially became a member of MERCOSUR in October 1996. According to the Additional Protocol on the Integration of Chile into the MERCOSUR, the Governments of Argentina and Chile committed to invest at least $330 million in improvements to highway passes across the Andes. Most of the existing road connections between Argentina and Chile are not paved and several passes are closed for part of the year due to snow. Reliable, all-weather roads crossing the Andes will enhance existing trade by reducing transportation costs and may generate increased traffic by facilitating access to ports on the Atlantic and the Pacific. At present, sixty percent of the value of freight between Argentina and Chile is transported by road. The Government of Argentina has requested the Inter-American Development Bank (IDB) provide technical cooperation to study the feasibility of improving road connections and to determine optimal levels of improvements to be carried out at the highest priority passes. The study will include the following passes and their access roads in Argentina: Jama, Sico, San Francisco, Pircas Negras, Agua Negra, Cristo Redentor, Pehuenche, Pino Hachado, Cardenal Samori, Coihaique, Huemules, Integracisn Austral, and San Sebastian. This list might be increased by the addition of no more than two additional passes. TDA is providing funding through the TDA Evergreen Fund at the Inter-American Development Bank (IDB) for studies on the Argentina Andean Highway Passes Project. The Government of Argentina, through the Direccisn Nacional de Vialidad (DNV), will provide about $115,000 to fund a complementary study to be conducted by an Argentine consulting firm. The feasibility study will define priority investments and propose a viable program for implementation. The four key components of the scope of work are: Road Transport Demand, Preliminary Engineering, Preliminary Environmental Assessment, Socio-Economic Feasibility. Several areas in these studies will require special attention by the U.S. Consultants in order to meet the objectives. The demand study, in addition to analyzing the potential normal and diverted traffic, will study in depth production and market prospects on either side of the Andes, including countries other than Argentina and Chile, to determine the potential for generated traffic. Moreover, the engineering studies should take advantage of aerial photographs and new developments in satellite imagery and geographical information systems (GIS) to facilitate the development of alternatives and obtain, in a timely manner, the information required at the prefeasibility level of detail. The integrated financial-economic-fiscal-distributional and risk analysis should follow recent methodological refinements that allow appreciation of different effects of changes in variables and assumptions. The U.S. firm selected will be paid in U.S. dollars with funding in the amount of $695,400 provided by the U.S. Trade and Development Agency (TDA) to the IDB through TDA's Evergreen Fund at the IDB. A detailed Request for Proposals (RFP), which includes requirements for the Proposal and the Terms of Reference, is available from the IDB, Finance and Basic Infrastructure Division 1 as of June 2, 1997. Requests for the RFP should be faxed to the IDB (202) 623-1428, attention Peter Smith. In the fax, please include your firm's name, contact person, address, and telephone number. To avoid delays, it is recommended that firms make arrangements to collect the RFP from the IDB. 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 Argentina. The U.S. firm may use subcontractors from the host country for up to 20 percent of the TDA grant amount. Interested U.S. firms should submit their Proposal in English and Spanish directly to the IDB in Washington by July 15, 1997. Evaluation criteria for the Proposal are included in the RFP. Price will not be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The IDB reserves the right to reject any and/or all Proposals. The IDB will not pay for any costs associated with the preparation and submission of Proposals. A bidders briefing will be held at the IDB, 1300 New York Avenue N.W., Washington, D.C. on June 25, 1997 at 10:00am. (0150)

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