His Excellency Elias J. Hobeika, Minister, Ministry of Hydraulic and Electric Resources, Cornishe de Fleuve, Beirut, LEBANON, Phone: 011-961-1-565-041, Fax: 011-961-1-449-639

B -- LEBANON -- MHER NATIONAL LNG SUPPLY FEASIBILITY STUDY POC POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009 The Grantee 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 develop a feasibility study for the assessment of an LNG gas supply project in Lebanon. The LNG Supply project is particularly important at this time because as Lebanon undertakes its extensive post-war reconstruction, it is forced to import all of its diesel oil and refined products to meet its growing power generation needs. In accordance with United Nations recommendations to reduce environmental hazards, Lebanon is considering the substitution of natural gas as the primary fuel. To address these requirements, the Ministry of Hydraulic and Electric Resources (MHER) and the Electricite du Liban, the Lebanese electric utility company, are studying two alternative gas supply options: 1) Pipeline Gas from Syria: A 100 to 120 km pipeline could connect newly discovered Syrian gas fields to a Lebanese gas distribution grid in the North; or 2) Importation of LNG (from Yemen, Qatar, or Nigeria) and its revaporization. With either choice, the LNG terminal at Batroun, the primary national terminal, requires harbor facilities with LNG unloading lines, vapor return lines, LNG storage tanks sized to meet the needs of varying tanker arrival patterns, LNG vaporization facilities, and a pier for docking LNG tankers. The vaporized LNG will then be transported north and south from the terminal by either on-shore or off-shore pipelines to five electric generating plants. The MHER has solicited statements of interest in a BOT arrangement for the LNG import terminal from U.S. and international engineering and construction firms. It has also had ENEL, the Italian engineering and construction firm, prepare a feasibility study for the coastal pipeline grid stretching across the coast from Beddawi in the North to El Zahrani in the South, a distance of roughly 150 kilometers. The pipeline network could be built on a BOT basis as well or directly financed by EDL. Since the study on the coastal pipeline has already been completed, the only remaining question is what is the best option for the import and distribution of the LNG. A detailed feasibility study will be conducted by a U.S. consultant to determine the technical, economic, and financial parameters of the project and to prepare an "order of magnitude" capital cost estimate in sufficient detail to meet established standards of the major international lending institutions. Included in the study will be preliminary designs of the harbor facilities, the LNG Tanker unloading facilities, the LNG storage tanks, the vaporization facilities, and the utilities and civil works associated with the project. The consultant will also prepare an environmental assessment of the LNG import terminal, LNG storage, and other project components. The U.S. firm selected will be paid in U.S. dollars from a $500,000 grant to the Grantee from the U.S. Trade and Development Agency (TDA). The amount for the negotiated contract has been established by a TDA grant of U.S. $500,000 dollars. The remaining $227,100 of the $727,100 estimated to be the cost of the complete Feasibility Study will be borne by the selected U.S. firm. The company selected to completed the Feasibility Study will be eligible to compete for the implementation of the pipeline project. A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background desk study report are available from TDA, at 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. In the fax, 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 an overnight delivery service should include the name of the delivery service and your firm's account number in the request for the RFP. Firms that want to send a courier to TDA to retrieve the RFP should allow one hour after faxing the request to TDA before scheduling a pick-up. Please note that no telephone requests for the RFP will be honored. Please check your internal fax verification receipt. Because of the large number of RFP requests, TDA cannot respond to requests for fax verification. Requests for RFPs received before 4:00 PM will be mailed the same day. Requests received after 4:00 PM will be mailed the following day. Please check with your courier and/or mail room before calling TDA. 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 host country. The U.S. firm may use subcontractors from the host country 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 Proposal in English directly to the Grantee by 4:00 p.m, Monday, September 21, 1998, at the above address. 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 Grantee reserves the right to reject any and/or all Proposals. The Grantee also reserves the right to contract with the selected firm for subsequent work related to the project. The Grantee is not bound to pay for any costs associated with the preparation and submission of Proposals. Posted 07/31/98 (I-SN231274). (0212)

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