M. Obradovic, Gen. Mgr., E. BiH, V. Setaliste 20, 71000 Sarajevo, Bosnia and Herzegovina; Tel: (387-71) 47-24-81 or 65-63-47, Fax: (387-71) 65-42-66

B -- MODEL POWER PURCHASE AGREEMENT PROJECT IN BOSNIA AND HERZEGOVINA POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 200, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009 EPBiH 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 provide technical assistance in order to develop a model power purchase agreement and offer training to utility officials. EPBiH is a Bosnian power company that has requested technical assistance in developing a model power purchase agreement and training utility officials. Due to the reputation of the U.S. as a leader in IPP development, EPBiH has strongly sought assistance from the U.S. EPBiH realizes that the power sector in Bosnia needs to be restructured in order to encourage foreign investors and more BOT power generation schemes. The main strategy for EPBiH is to further develop the power sector in accordance with international standards, and to increase future options for power development. The selected Consultant for this assistance would develop a general model of the clauses incorporating the terms of the PPA, its adjustment mechanisms, and buy-out provisions, which would be of the utmost importance. The consultant would also provide examples of specific provisions that may be required to meet particular requirements of the EPBiH or the typical project's sponsors. Once the model PPA is developed, the Consultant would discuss the PPA with key BiH utility officials and incorporate their specific concerns to the extent they meet international standards. It is doubtful that a single PPA would satisfy the needs of all potential investors or even the BiH utilities/buyers. Therefore, each BOT scheme might require a customized PPA to the unique conditions of the project. However, there are certain standard provisions and clauses that virtually all PPAs would contain, subject to modification due to the particulars of each proposed transaction. Once the model PPA has been developed and discussed with key EPBiH officials, the Consultant would conduct a one-week training course in Sarajevo for the utility officials. The Consultant would coordinate with BiH utility officials to develop a participant list well in advance of the training delivery. During the training, the Consultant would provide examples of the general and specific clauses and discuss with the participants ways in which these clauses can be implemented and modified for specific transactions. In addition, and perhaps of equal importance, the Consultant's trainers would discuss how previous PPAs in other countries may or may not have successfully negotiated the transition to a restructured electricity market. The contract provisions that are problematic would be identified and solutions proposed. The U.S. firm selected will be paid in U.S. dollars from a $70,000 grant to EPBiH from the U.S. Trade and Development Agency (TDA). A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background definitional mission 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 firm's 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 EPBiH by 4:00 p.m., June 28, 1999 at the above address. Evaluation criteria for the Proposal are included in the RFP. The Proposal shall consist of a technical proposal. Although price will not be a factor in contractor selection, a cost proposal is required to demonstrate allocation of resources and expenditures for EPBiH's review. EPBiH reserves the right to reject any and/or all Proposals. EPBiH also reserves the right to contract with the selected firm for subsequent work related to the project. EPBiH is not bound to pay for any costs associated with the preparation and submission of Proposals. Posted 05/17/99 (I-SN332310). (0137)

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