Ivano-Frankivsk District Heating Project



Business sector:

Municipal and environmental infrastructure

Funding source:


Contract type:

Project goods, works and services

Notice type:

Invitation for tenders

Issue date:

21 Feb 2020

Closing date:

07 Apr 2020   at  10:00   Ivano-Frankivsk


Reconstruction of Boiler House at 28a Doroshenko Street with the installation of new 12MW gas boiler

This Invitation for Tenders follows the General Procurement Notice for Ivano-Frankivsk District Heating Project number 39004 “Reconstruction and modernization of the district heating system of Ivano-Frankivsk” (hereinafter “the Project”) originally published in the Procurement Opportunities on 18 May 2010 No. 6130-GPN-39004 with subsequent updates.

State Municipal Enterprise Ivano-Frankivsk Teplokomunergo (hereinafter “the Employer”), has received a loan from the European Bank for Reconstruction and Development (hereinafter the Bank) towards the cost of implementation of the Ivano-Frankivsk District Heating Project No. 39004 “Reconstruction and Modernization of the District Heating System of Ivano-Frankivsk”.

The Employer now invites sealed tenders from contractors for the following contract to be funded from the proceeds of the loan:

  • Reconstruction of Boiler House at 28a Doroshenko Street with the installation of new 12MW gas boiler

Contractor shall prepare design and estimate documentation, carry out supply, installation, pre-commission and commission of the new gas boiler (one boiler with the capacity 12 MW for operation on temperature graph of 115° С and higher with automatic ignition, draft equipment and safety automation, efficiency not less 92%) and other auxiliary equipment in the existing boiler house, five network pumps, including all necessary pipes, valves, sensors, switching, cabling and wiring products, etc.), carry out the training of Employer’s staff as it is stated in the tender documents, as well as to supply the calorimeter to determine the biofuel combustion heat, biofuel moisture content analyser, truck scales and tractor semitrailer with moving floor .

The Contract is expected to be completed within 10 (ten) months from the effective date.

Tendering for contracts to be financed with the proceeds of a loan from the Bank is open to firms from all countries. 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 of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations.

The Tenderers including the joint venture or consortia partners shall meet the following minimal qualification requirements:

  1. Historical Contract Non-performance. The Tenderer shall provide accurate information on any current or past litigation or arbitration resulting from contracts completed or under execution by him over the last five (5) years. A consistent history of awards, namely, more than 2 (two) decisions awarded against the Tenderer or any partner of a joint venture may result in rejection of the tender.

     2Financial Situation

2.1. Historical financial performance. The audited balance sheets for the last 5 (five) years starting with 2014 and financial statements for 9 months of 2019 shall be submitted and must demonstrate the soundness of the Tenderer's financial position. Persistent losses or risk of bankruptcy indicated in reporting shall result in disqualification of the tenderer. The tenderer will also be asked to provide important information or explanation as to his ability to perform the proposed work, which may be questionable in view of the substantial current liabilities or other ongoing tenders on significant contracts. Where necessary, the Employer will make inquiries with the Tenderer's bankers.

2.2. Average annual turnover. Average annual turnover (revenue) as prime contractor over the last five (5) years of EUR 2, 200,000 (two million two hundred thousand) equivalent. If the tender is submitted by JVCA, the prime tenderer shall have not less than 60 percent of qualification criteria.

2.3. Financial resources. The Tenderer shall demonstrate that it has available financial resources, such as liquid assets, unencumbered real assets, lines of credit, and other financial means sufficient to meet the contract cash flow for the contract execution for a period of 6 (six) months, estimated as not less than EUR 800,000 (eight hundred thousand) equivalent, taking into account tenderer’s commitments for other contracts.

  1. Experience. The Tenderer shall meet the following minimum criteria:
  1. The Tenderer shall demonstrate that it has successful experience as prime contractor in the execution of at least 3 (three) completed contracts within the last 5 (five) years in scope, nature and complexity (installation of gas boiler 12 MW or above) comparable to the proposed contract and implemented in Ukraine and/or other countries with similar climate conditions (installation of the new gas boiler).

All the projects shall have been successfully and entirely completed within the last five (5) years. The similarity shall be based on the physical size, complexity, methods/technology or other characteristics as described in Volume III, The Requirements.

The tenderer or a leading partner of the joint venture, Consortium or Association (hereinafter JVCA) acted as the prime contractor in execution of at least two (2) contracts of comparable scope as explained above. At least one of three contracts should include the following:

  • design, supply, installation and commissioning of a new gas boiler with the capacity from 12 MW or above during the period of 10 months.
  1. The Tenderer, shall demonstrate that as prime contractor (with the relevant equipment manufacturers) it has a gas boiler with the capacity from 12 MW or above installed in Ukraine and/or other countries with similar climate conditions that has been successfully operated for 2 (two) years upon the boiler commissioning. All the relevant references shall be provided.
  2. All partners of JVCA shall provide details of the similar contracts proportional to their individual share in consortium. Values of these contracts shall be converted to Euro on the date of their full completion or on the date of their awarding for the contracts that are ongoing.
  1. Equipment capabilities. The Tenderer shall own, or have assured access to (through hire, lease, purchase agreement, availability of manufacturing equipment, or other means), the following key items of equipment in full working order, and must demonstrate that, based on known commitments, they will be available for use in the proposed contract.
  1. Personnel capabilities. The Tenderer shall provide suitably qualified personnel to fill the following positions:
  • Contractor’s Main Representative – Project Manager, shall have not less than 15 years of total work experience, including 10 years of experience of implementation of work of similar nature and not less than 5 years of management of similar contracts (works) in heat supply.
  • Chief Designer of the Project shall have not less than 15 year of total work experience, including 10 years of experience of design works and not less than 5 years of management and/or technical supervision of similar works in heat supply.
  • Site Manager shall have high education in civil engineering (or related areas), not less than 15 years of general experience, including 10 years of experience in similar civil works and commissioning supervision and 5 years of experience in civil work and commissioning management in heat supply;

For each position the Tenderer shall provide information in a form given in Attachment 1 to Qulification Form (6) Personnel Capabilities, Volume I.vi of the Tender Documents.

  1. Joint Ventures, Consortia or Associations (JVCA). Participation of JVCA is allowed. At least one member of JVCA nominated to be the JVCA lead member shall have not less than 60 percent of all qualifying criteria. The other members shall have not less than their individual percentage share in the JVCA applied to the qualification criteria. The JVCA shall satisfy collectively the criteria specified above. The relevant figures for each of the partners shall be added to arrive at the JVCA total capacity. Individual members of the consortium must each satisfy the requirements for financial reports and litigation.
  1. Subcontractors. If the Tenderer proposes to use named subcontractors or suppliers for some components of the works or supplies under the Contract in excess of 10 percent of the total value of the Contract, the Tenderer shall provide the information in the forms provided in Attachment 2 to Qualification Form (1) Letter of Application, Volume I.vi of the Tender Documents for each proposed subcontractor or supplier. The Tenderer cannot use the references of such subcontractors or sub-suppliers.

The Tenderer shall demonstrate that the proposed supplier or subcontractor adequately meets the requirements regarding special experience, namely the successful experience of implementation during the last five (5) years of the obligations of the contractor (prime one or subcontractor) under at least 3 (three) contracts with comparable scope and/or nature and complexity compared to works / supply proposed to be transferred to subcontractor. The Employer reserves the right to require the replacement of the proposed sub-contractors in case of disqualification of the latter.

The Tenderer shall provide information on the design company that is expected to develop design and estimate documentation. Such design company shall have experience in designing gas boilers.

  1. Ability to perform after-sales service. The Tenderer or its local service agent shall be able to carry out the maintenance, warranty, repair and spare parts stocking obligations prescribed in these Tender Documents for three (3) years, as well as maintain all equipment included to the scope of supply. The Tenderer shall inform if in the country of the Employer he has service centres working and/or storages to secure technical maintenance and repair of gas boilers with the capacity 12 MW.
  1. Licenses. The tenderers shall have relevant licenses in accordance with the Ukrainian regulations, including but not limited to construction license, design license, availability of certified designers, etc. If the tenderer does not have a license for some type(s) of the required activities, the tenderers are permitted to involve a specialised subcontractor that possesses appropriate licences. The lack of licences at the time of the submission of the First Stage Tender shall not constitute reasons for rejection of the tender. The licences shall be obtained and copies submitted to the Employer prior to Contract entering into force, twenty-eight (28) days upon receiving the Letter of Acceptance.
  1. Environmental, Social, Health and Safety (ESHS). The Tenderer shall meet the criteria for ESHS records and experience:

Availability of a valid ISO certification or internationally recognized equivalent, such as Environmental management certificate ISO 14001; and Health and safety certificate OHSAS 18001. In absence of the above certificates, availability of in-house policies and procedures for ESHS management.

Experience as a contractor (in any role), in the execution of at least 2 contracts, where key ESHS measures were carried out, or are on progress, satisfactorily and in compliance with international standards.

Tender documents may be obtained from the address below upon payment of non-refundable fee of EUR 200:

  • for Ukrainian tenderers, upon payment of the mentioned amount in UAH (Hryvnja of Ukraine) at inter-bank exchange rate of the payment day on the account:

Beneficiary’s name:  State Municipal Enterprise “Ivano- FrankivskTeplokomunenergo”

Beneficiary’s account:   UA563365030000026034307015772

Beneficiary’s bank: Public Joint Stock Company  State Savings bank of Ukraine

MFO 336503

Identification number:  03346058

Individual tax number: 033460509156

Certification for VAT:  No 12847708

  • For foreign Tenderers, upon payment of the mentioned amount to the account:

Beneficiary’s name: State Municipal Enterprise “Ivano-        FrankivskTeplokomunenergo”

Beneficiary’s account: UA613365030000026035306015772

Beneficiary’s bank:  in city Ivano-Frankivsk Public Joint Stock Company State Savings bank of Ukraine


Bank’s address: Ivano-Frankivsk, Ukraine

Intermediary: DEUTSCHE BANK AG


Intermediary’s address: Frankfurt am Main

Account number: 947057610

The Tenderer shall specify the purpose of the payment “Payment for obtaining of the tender documents for Project 39004 “Reconstruction and modernization of the district heating system of Ivano-Frankivsk” – for the Contract “Reconstruction of the Boiler House at 28a Doroshenko Str. with the installation of the new gas boiler with the total capacity 12 MW”.

The EUR 200 (two hundred) fee includes expenses for copying, delivery via registered express courier and communication services (VAT inclusive, and exclusive of Bank commission and other fees, which shall be paid by the tenderer).

A two stage tender procedure will be adopted and will proceed as follows:

The First Stage tender will consist of a technical proposal only, without any reference to prices, and a list of any deviations to the technical and qualification requirements set forth in the tender documents or any alternative technical solutions a Tenderer wishes to offer, and a justification therefore, provided always that such deviations or alternative solutions do not change the basic objectives of the Project.

Following evaluation by the Employer of the First Stage Tenders, the Employer will invite each Tenderer who meets the qualification criteria and who has submitted a technically responsive tender to a clarification meeting. The proposals of all such tenderers will be reviewed at the meeting and all required amendments, additions, deletions and other adjustments will be noted and recorded in a Memorandum.

Only qualified tenderers submitting a technically responsive and acceptable First Stage tender will be invited to submit a Second Stage tender.

The Second Stage Tender will consist of an updated technical tender incorporating all changes required by the Employer as recorded in the Memorandum to the clarification meeting or as necessary to reflect any amendments to the tender documents issued subsequent to submission of the First Stage tender and the commercial tender.  

First Stage tenders must be delivered to the address below to the Strategic Development Office on or before April 07, 2020 at 10.00 local time. The First Stage tender proposals will be opened at the address specified below in the Chief Engineer’s Office on April 07, 2020 at 10.10 local time in the presence of all tenderers or their authorised representatives who wish to attend.

All Second Stage tenders must be accompanied by a Tender Security of EUR 20,000 (twenty thousand) or its equivalent in another convertible currency or Ukrainian Hryvnia at the exchange rate established by the National Bank of Ukraine as of the date of issuance of tender security, and must be delivered to the address below on or before the time and date of the submission deadline specified in the Letter of Invitation to submit Second Stage tenders, where they will be opened in the presence of the tenderers’ representatives who wish to attend.

Prospective tenderers may obtain tender documents and whole other additional information by submitting a written request to the address indicated below:

State municipal enterprise "Ivano-Frankivskteplokomunenergo"

To attention of: Elena Warren, PIU Director,

59a Bogdana Khmelnytskogo Str., Ukraine, 76007, Ivano-Frankivsk,

Tel: +380 95 317 5664 fax:  (+380 342) 56-35-55

Email: ivaniv.olena03@gmail.com; strateg@tke.if.ua