procurement notice

Ref. 5487-R1-GPN-22163

This notice is an update to the General Procurement Notice for this project published on the EBRD website dated 5 February 2007.

Municipal Unitary Enterprise “Syktyvkarskiy Vodokanal” (the “Vodokanal”), the municipal water utility owned by the City of Syktyvkar (the “City”) has signed a loan from the European Bank for Reconstruction and Development (the “Bank”) and intends using the proceeds of the loan for a project to enhance the municipal water supply and sewerage infrastructure and services as well as to improve the quality of drinking water and sewerage systems in order to achieve positive environmental benefits and improved living conditions. The project has been included on the priority list under the Northern Dimension Environmental Partnership (“NDEP”) and is co-financed from the NDEP support funds. Total estimated project cost is EUR 25.91 million equivalent.

EBRD and the Vodokanal intend to sign an additional loan equivalent to EUR 5 million in October 2007 to cover increased project costs. The project includes the following components:

• Water Disinfection System Update

• Construction of Sludge Pressure Sewer

• Construction of Wastewater Sludge Pumping Station

• Refurbishment of Water Pumping Stations (8 pumping stations)

• Refurbishment of Waste-Water Pumping Stations. SCADA (7 pumping stations)

• Upgrade of Water Treatment Station Functioning, including

• Intensification and Refurbishment

• Refurbishment for Wash -Water Treatment

Tendering for these contracts is expected to be finalised by the end of 2007.

Contracts to be financed with the proceeds of a loan from the Bank will be subject to the Bank's Procurement Policies and Rules and will be open to firms from any country. The proceeds of the Bank's loan will not be used for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations or under a law of official regulation of the Purchaser's country.

Contracts to be financed with the proceeds of a grant from the NDEP will be subject to the Bank's Procurement Policies and Rules and will be open to firms from the countries of the Contributors of NDEP or the Countries of the EBRD operations. Upon proposal by the Fund Manager, the Assembly may determine whether there are special circumstances that would make it appropriate to authorise procurement from sources other than those referred to above. Current contributors include the EU countries, Canada, Norway and Russia.

Interested suppliers, contractors and consultants should contact:

Mr Nikolai Kursakov

Director

MUE "Syktyvkarskiy Vodocanal"

Kommunisticheskaya st., 51

167 001 Syktyvkar

Russian Federation

Tel: +7 8212 31 19 69

+7 8212 24 68 12

Fax: +7 8212 31 19 69

+7 8212 24 68 12

E-mail: vodokanal@parma.ru