Anaklia Deep Water Port

Request for Proposal

Removal of Tetrapod’s from Sea Bed in Anaklia

ADC-001-PR-RFP-010

April 20, 2018

6 Marjanishvili Street 0102,

[email protected]

Anaklia Deep Sea Port Request for Proposal Removal of Tetrapod’s from Sea Bed in Anaklia Page | 1

Table of Contents SUMMARY INFORMATION ...... 3 1. INTRODUCTION ...... 4 1.1 Closing Date and Time ...... 4 1.2 List of Acronyms & Definitions...... 4 2. PROJECT DESCRIPTION ...... 4 3. GENERAL CONDITIONS ...... 7 4. SCOPE OF WORKS ...... 8 5. INSTRUCTION TO RESPONDENTS ...... 9 6. EVALUATION ...... 9 SCHEDULE A – SCOPE & SPECIFICATIONS ...... 11 SCHEDULE B – FORM OF PROPOSAL ...... 12 SCHEDULE B‐1 – STATEMENT OF PROPOSED CHANGES TO CONTRACT...... 14 SCHEDULE B‐2 – RESPONDENT’S TECHNICAL PROPOSAL...... 15 SCHEDULE B‐3 – RESPONDENT’S PRO FORMA FINANCIAL PROPOSAL ...... 16 SCHEDULE C – APPENDICES ...... 17 SCHEDULE D – PROJECT MILESTONE SCHEDULE ...... 18

Anaklia Deep Sea Port Request for Proposal Removal of Tetrapod’s from Sea Bed in Anaklia Page | 2 SUMMARY INFORMATION

Description Date

RFP issued, sent to prospective respondents 20 April 2018

Services requested Removal of Tetrapod’s from Sea Bed in Anaklia

RFP questions due 26 April 2018, 19:00, Georgia Standard Time (GET)

Addenda or clarifications posted (if necessary) 2 May 2018, 19:00 Georgia Standard Time (GET)

Project Program Manager Mr. Giorgi Mirtskhulava

Inquiries contact information

Closing date and time to submit Proposals 10 May 2017 19:00, Georgia Standard Time (GET)

Proposal submittal Via www.Etenders.ge ‐ platform

Proposed interviews, Tbilisi, Georgia 14-18 May 2018 (if required)

Form of Proposal See Schedule B

Form of Contract See Appendix 1 of Schedule C

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1. INTRODUCTION Anaklia Development Consortium LLC (“ADC”) invites pre‐qualified interested parties (the “Respondents”) with relevant experience in Removal of Tetrapod’s from Sea Bed in Anaklia to submit a Proposal under this Request for Proposal (the “RFP”).

1.1 Closing Date and Time To participate, a Respondent must deliver its Proposal in accordance with the instructions set forth in this RFP before the Closing Date and Time specified in the Summary Information.

1.2 List of Acronyms & Definitions The table below has been compiled to provide a list of the key consolidated abbreviations and technical terminology for this project. It is not meant to be inclusive of all acronyms/terminology.

Abbreviation Description

Anaklia Development Consortium LLC, who engages the Respondent/Contractor, and legal successors ADC to ADC and permitted assignees Client ADC Respondent Contractor Means a formal written contract between ADC and a Selected Respondent to undertake the Contract Services/Works, the preferred form of which is attached as Appendix 1 of Schedule C EBRD European Bank for Reconstruction and Development Employer ADC EoI Expression of Interest EU European Union FIZ Free Industrial Zone Grantor Government of Georgia IA 3 October 2016 Investment Agreement between ADC and the Grantor relating to the build, operation and transfer of the Anaklia Deep Water Black Sea Port IFC International Finance Corporation ILO International Labor Organization MRDI Ministry of Regional Development and Infrastructure of Georgia Who is engaged by ADC to perform the Services/Works, and legal successors to the Respondent Respondent and permitted assignees RFP Request for Proposal SOW Scope of Work TEU Twenty Foot Equivalent Container

2. PROJECT DESCRIPTION ADC has been awarded the right to develop, construct and operate the Anaklia Deep Water Black Sea Port on a design, finance, build, operate and transfer basis under the Investment Agreement executed with the Grantor (the “IA”, as amended from time to time). The Anaklia Port is a greenfield port project located on the Black Sea at a focal point on the historic Silk Road between China and Europe. The Anaklia Port site is located just south of the River and the village of Anaklia on the Black Sea, and just north of the Kolkheti National Park in the Samegrelo‐Zemo Svaneti Region of Georgia. The multi-commodity

Anaklia Deep Sea Port Request for Proposal Removal of Tetrapod’s from Sea Bed in Anaklia Page | 4 terminal will be developed in phases on approximately 340 hectares. Phase 1 will include a container terminal capable of accommodating a 10,000 TEU vessel and a dry bulk terminal capable of handling Panamax vessels with subsequent phases to expand container and dry bulk capacity in addition to constructing an unspecified liquid bulk terminal in future phases. ADC has prepared a concept design Master Plan for the Anaklia Port as per the guidelines of the IA, completed the project’s environmental assessment, undertaken a wide range of feasibility, technical, and engineering studies, in addition to obtaining regulatory approvals and project permitting for the facility development. Additional information on the Anaklia Port project can be found at www.anakliadevelopment.com

The Master Plan for the Anaklia Port has been prepared by ADC and comprises the planned development of Phases 1‐9. The site earmarked for port development is located near Anaklia, Georgia (42°23´ N, 41°43´ E). Refer to Figure 1 for the on‐shore boundary of the proposed development. The marine part of the project covers 225 ha.

Figure 1: Anaklia Port Boundaries

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Figure 2: Concept Layout

Anaklia Deep Sea Port Request for Proposal Removal of Tetrapod’s from Sea Bed in Anaklia Page | 6 3. GENERAL CONDITIONS

Not an offer This RFP does not constitute an offer. No agreement shall result upon the submission of Proposals. ADC shall not be under obligation to enter into any agreement with anyone in connection with this RFP and responses received. ADC will not have a ny obligation to anyone in connection with this RFP unless ADC executes and delivers an agreement in writing approved by ADC’s authorized signing authorities.

Reservation of Rights ADC reserves the right to accept the Proposal that it deems most advantageous, and the right to reject any or all Proposals for any reason, in each case without giving notice. ADC reserves the right to contract only for selected services, products, or compensation. ADC reserves the right to negotiate with any Respondent as it sees fit, or with another Respondent or Respondents concurrently. In no event will ADC be required to offer any modified terms to any other Respondent. ADC also reserves the right not to accept any Proposal submitted, and may seek additional or further Proposals from any other party or parties. ADC shall incur no liability to any other Respondent as a result of such negotiations or modifications.

Respondent's Responsibility Respondents shall thoroughly examine all RFP documents and make independent judgement as to the circumstances and conditions affecting their Proposal. Failure on the part of Respondents to examine and investigate thoroughly shall not be grounds for any claim that Respondent did not understand the conditions of the Proposal. Each Respondent shall, before submitting its Proposal, thoroughly examine and assess the requirements and specifications set out in the RFP, the financial resources, management and labor, equipment and materials needed, all relevant laws, rules, notices, directives, standards, orders and regulations, licensing and permit requirements and other circumstances that may affect its Proposal. Submission of a Proposal constitutes a representation by the Respondent that it is familiar with and accepts all the foregoing.

Respondent’s Expenses All Proposals shall be prepared and submitted at the expense of the Respondent. No Respondent shall have any claim for any compensation of any kind whatsoever, as a result of participating in this RFP, and by submitting a Proposal each Respondent shall be deemed to have agreed that it has no claim. ADC shall not be under any obligation to return or save either the original or any copies of any Respondent’s Proposal, and all documents submitted, whether original or copies, shall be kept or disposed of by ADC.

Confidentiality All submissions become the property of ADC and will not be returned to the Respondent. ADC will hold all submissions in confidence unless otherwise required by law.

Release Each party submitting a Proposal, by submitting a Proposal, accepts all of the conditions and stipulations set out herein, and acknowledges and agrees that ADC will have no liability or obligation to any Respondent except only the party, or parties, if any, awarded an agreement by ADC in its sole discretion, and agrees that, if not awarded an agreement, then, whether or not any express or implied obligation has been discharged by ADC, ADC shall be fully and forever released and discharged of all liability and obligation in connection with the RFP and all related matters, and all procedures which preceded.

Anaklia Water Deep Sea Port Request for Proposal Page | 7 Removal of Tetrapod’s from Sea Bed in Anaklia Health & Safety Requirements (H&S) Personnel operating under the direction of the Contractor shall always comply with International Health and Safety industry best practices, ILO, EU, Grantor and Client requirements. Risk assessments of all operations shall be carried out prior to mobilization, and when circumstances changes, shall be updated and amended to reflect any variation during mobilization on-site. All risk assessments shall be submitted for approval to the Client prior to work commencement.

The Contractor shall assign as minimum one full time dedicated Health and Safety competent person (Each for Onshore and Offshore operations) with sufficient knowledge and experience acceptable to the Client. The Contractor’s H&S representatives will be full time physically located at the jobsite, will have authority to stop work because of unsafe conditions, and for correcting unsafe acts or conditions by the Contractor or its suppliers or subcontractors of any tier, and will participate in periodic safety meetings with the Client.

Law This RFP shall be governed by and construed in accordance with the laws of Georgia, which shall be deemed the proper law thereof.

4. SCOPE OF WORKS

The scope of works is to: 1. Lift the existing Tetrapod’s from sea bad from the locations indicated in Appendix 3 of this document, transport and offload onshore at location indicated in Appendix 6 of this RFP. 2. Any lifting, transportation, offloading, storage or any other means for the handling to be conducted by contractor. 3. Sea bad clearance, meaning removal of all tetrapod’s or it’s parts to be confirmed by contractor providing full and complete scan of the sea bad where tetrapod’s were placed plus 50 m radius around the tetrapod placement area at all directions. For the specific scope of works please refer to Schedule A of this RFP

Anaklia Water Deep Sea Port Request for Proposal Page | 8 Removal of Tetrapod’s from Sea Bed in Anaklia 5. INSTRUCTION TO RESPONDENTS

Form of Proposal and submission instructions Proposals must be submitted in the Form of Proposal set out below as Schedule B. Proposals shall be submitted electronically to ADC via etenders.ge and wherever applicable deliver hard copy package to the ADC office, 6 Marjanishvili Street, Tbilisi 0102, Georgia, latest Friday May 10, 2018 ‐ 19:00 p.m. Tbilisi Time.

Language Official language is English.

Signature Proposals shall be submitted under the signature of individuals authorized to sign such Proposals and commit the Respondent’s firm to provide the services contemplated in the RFP. In the case of a joint submission, Proposals shall be clear and signed by an authorized signatory for the Respondents or Respondent group.

Schedule for Selection Proposals will be reviewed on receipt and ranked based on thoroughness, quality of the proposed team, experience, project approach and proposed cost. The selection team will then determine if the selection can be made based on the submittals or if in‐person interviews will be required to ask questions or confirm qualifications.

Examination of RFP Respondents will be deemed to have carefully examined the RFP, including all Attachments, prior to preparing and submitting a Proposal with respect to any and all facts that may influence a Proposal.

Inquiries All questions related to this RFP must be directed in writing on etenders.ge, before the final date for questions set out above in the Summary of Information. Respondents finding discrepancies or omissions in the RFP, or having doubts as to the meaning or intent of any provision, should immediately notify ADC via etenders.ge platform. No oral conversation will affect or modify the terms of this RFP or may be relied upon by any Respondent.

Addenda Process If an amendment is required to this RFP, a written addendum that will form part of this RFP will be issued. Any changes relating to this RFP will be provided to Respondents by means of written addenda via etenders.ge platform. The Respondent shall be deemed to have acknowledged such addenda; and by submitting a Proposal each Respondent shall be deemed to have agreed with this process related to the addenda. Information given orally will not be binding.

6. EVALUATION Qualifications and Evaluation Criteria All submitted proposals that meet the proposal format and requirements outlined in this RFP will be reviewed and ranked by ADC. Evaluation criteria will include: 1. Extent, relevant experience and qualifications for the proposed project manager and key project personnel. 2. HSE risk mitigation and management Procedures

Anaklia Water Deep Sea Port Request for Proposal Page | 9 Removal of Tetrapod’s from Sea Bed in Anaklia 3. Quality of the narrative describing the process, timeline and resource requirements necessary to complete the Scope of Work described in Schedule A of this RFP. 4. The respondents will be competitively evaluated on the basis of their proposed unit rates, proposed price, 5. Assurance and control of quality the processes and product 6. Payment terms (including respondent’s expectations in respect to advance payment) 7. Ability to meet project milestones proposed in Schedule D or best alternative schedule.

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The Scope is divided in two lots:

Lot # 1 - Removal and Transportation

1. Locate and lift the existing Tetrapod’s from sea bed from the locations indicated in Appendix 3 of this document, transport and offload onshore at location indicated in Appendix 4 of this RFP. 2. Any lifting, transportation, offloading, storage or any other means for the handling to be conducted by contractor. 3. Construction or remediation of roads for transportation of the removed Tetrapods to final destination Lot# 2 – Confirmaition of works completed

4. Demonstrate removal of all tetrapod’s and it’s parts providing full and complete scan of the sea bad where tetrapod’s were placed plus 50 m radius around the tetrapod placement area at all directions.

During preparation of commercial and technical proposals, other than Scope of work, responder to consider requirements set out in appendix and corresponding contract. Respondents are authorized to submit proposals for in each Lot as well as for both.

• All required equipment and technologies (e.g. scanner, video, diving etc.) should be included in the proposal.

• All required permits necessary to achieve this scope of work within the scheduled duration.

• Respondent’s proposal price for this work shall remain in effect for a period of no less than 12 months from the date of the proposal.

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SCHEDULE B – FORM OF PROPOSAL

TO: Anaklia Development Consortium LLC RE: REQUEST FOR PROPOSALS ANAKLIA DEEP WATER BLACK SEA PORT Removal of Tetrapod’s from Sea Bed in Anaklia

1.0 Proposal

We, _, (Name of Respondent) of (Address of Respondent)

Pursuant to and in compliance with the Request for Proposals and any issued addenda, and being familiar with the requirements for performance under the Request for Proposals, and familiar with the Site and all relevant laws, rules, regulations, zoning, licensing and permit requirements, and the intent, difficulties, facilities and local conditions attendant to performing the Services/Works that may affect our Proposal, hereby submit this Proposal.

2.0 SCHEDULES

We confirm that the following schedules are attached to and form part of this Proposal: (1) Schedule B‐1 – Statement of Proposed Changes to Contract (2) Schedule B‐2 – Respondent’s Technical Proposal for Services (3) Schedule B‐3 – Respondent’s Pro Forma Financial Proposal

3.0 ACKNOWLEDGEMENT

Respondent hereby acknowledges: (a) ADC will rely on the Respondent’s submitted information and the representation that the Respondent has the capability to undertake and complete the responsibilities and obligations contained in this Proposal and the Agreement to be executed by ADC and the Respondent, if the Respondent is awarded the Contract, and the Respondent understands ADC will so rely.

(b) ADC has the right to make any further inquiry it deems appropriate to substantiate or supplement information supplied by the Respondent.

(c) ADC has the right to reject any and all Proposals, to withdraw the RFP, to reissue the RFP, to enter into negotiations with any and all Respondents, and to accept any Proposal or proposal that, in ADC’s judgement, will provide the level of service to the public.

(d) Respondent solely will bear all costs incurred by Respondent in connection with the preparation and submission of this Proposal and with Respondent’s costs associated with any negotiations with ADC. Under no circumstances will ADC be responsible for any such costs.

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4.0 DECLARATION

Respondent hereby declares: (a) that it has complied with the requirements of the Instructions; (b) that, in submitting this Proposal, it is not relying on any information or documents provided on by or on behalf of ADC other than the RFP Documents;

(c) that this Proposal is genuine and not collusive or made in the interest of or on behalf of any person not named herein;

(d) that it has not, directly or indirectly, induced, or solicited any other Respondent to submit a sham Proposal or any other person to refrain from submitting a Proposal, and that it has not in any manner sought by collusion to secure for itself or for any other person any advantage over any other Respondent.

(e) that if awarded the Contract, I/we will at all times be the “prime contractor”. I/we further confirm that if I/we become aware that another Contractor at the place of the Services/Works has been designated as the “prime contractor”, we will notify ADC immediately, and I /we will indemnify and hold ADC harmless against any claims, demands, losses, damages, costs, liabilities or expenses suffered by ADC in connection with any failure to so notify ADC.

IN WITNESS WHEREOF, this Proposal has been executed this day of , 2018.

EXECUTION BY RESPONDENT:

(Name of Respondent)

Authorized Signatory

Name and Title

Authorized Signatory

Name and Title

Anaklia Water Deep Sea Port Request for Proposal Page | 13 Removal of Tetrapod’s from Sea Bed in Anaklia SCHEDULE B‐1 – STATEMENT OF PROPOSED CHANGES TO CONTRACT 1. We have reviewed the proposed Contract attached to the RFP as Appendix 1 of Schedule C. If requested by ADC we would be willing to enter into that Contract, amended by the following (list, if any):

Section Requested Amendment(s)/Alternatives

2. ADC requires the Selected Respondent have the following in place before commencing the Services: a) Name: Insurance coverage required in the proposed Contract as a minimum, naming ADC as an additional insured.

As of the date of this Proposal, we advise that we have the ability to meet all of the above requirements except as follows (list, if any)

3. We offer the following alternatives to improve the Services described in the RFP (list, if any):

Section Requested Amendment(s)/Alternatives

4. We acknowledge that the requested amendments requested in Sections 1, 2, and 3 of this Schedule B‐1 will not form part of the Contract unless and until ADC agrees to them in writing.

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Respondent should attach the following:

(a) Contact Information: The legal name of the firm/independent Respondent, street address, telephone number and email address of the person to whom correspondence should be directed.

(b) Overview/Background (single page): A general description of the firm/independent Respondent, including (where appropriate) the structure (e.g., individual, partnership, corporation, joint venture), history (including year firm was established), and primary business area/area of expertise. (c) A brief narrative (single page) that illustrates an understanding of ADC’s requirements and Services described in Schedule A;

(d) A description of the Respondent’s general approach and methodology in performing the Services, including the specifications and requirements.

(e) A narrative that illustrates how the Respondent will complete the scope of Services, manage the Services, and accomplish the required objectives within ADC’s schedule.

(f) Describe how the Respondent would undertake the tasks defined in this RFP and satisfy its obligations, duties and responsibilities for the project.

(g) Describe the Respondent’s organizational structure for the project and the relationships between all functions in the organization, including interface with the project team. Identify the professionals who will be directly signing‐off and accepting relevant liabilities for each part of the project.

(h) Resumes & Organization Chart (limit resumes to two pages for each): Resume for the proposed project manager and key project personnel who will be responsible for completing the Services; include project team organization chart.

(i) Provide a description of the work to be performed by the Respondent’s own resources, and provide the names of sub‐contractors and the work that will be performed by sub‐contractors.

(j) Provide program schedule and duration of activities. The schedule to be presented in MS project program

(k) Provide HSE management plan

(l) KPI’s for last two years period

(m) Proposed H&S competent persons resumes.

(n) Provide the list of ongoing works

(o) Provide Environmental Management plan

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SCHEDULE B‐3 – RESPONDENT’S PRO FORMA FINANCIAL PROPOSAL Respondent to provide a Pro Forma proposal including all taxes but excluding VAT, and the basis of calculation.

• All amounts in US Dollars. • Schedule of Fees for all team members, including subcontractors. Include all fees, mark‐ups, and multipliers added for prime and subcontractors. • Estimate for all project expenses including travel. • Financial statements (balance sheet, Profit & Loss statement and Cash flow statement for last two years. • Verification of Contractor insurance policies that it will maintain throughout the term of the Contract and add ADC as additionally insured per Appendix 1 of Schedule C Draft Contract. • Irrevocable performance bank guarantee (draft must be accepted by ADC) 10% of total contract amount. • Personal accident insurance • Vehicle and equipment insurance • Health Insurance

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SCHEDULE C – APPENDICES

Below listed Appendices 1 through 4 are uploaded on www.etenders.ge platform.

Appendix 1: -- Draft Contract Appendix 2: -- Bill of Quantities Appendix 3: -- Existing Tetrapod’s location Appendix 4: -- Tetrapod delivery and storage location Appendix 5: -- Health and Safety Requirements Appendix 6: -- Employers Requirements Appendix 7: -- Project controls and reporting requirements Appendix 8: -- EIA Appendix 9: -- Marine mammal management plan

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SCHEDULE D – PROJECT MILESTONE SCHEDULE

Milestone Deadline Contract Signed 21 - May-18 Pre- Mob Deliverables / Mobilization completed 5-JUN-18 Tetrapod’s removal completed 15-JUL-18 Survey Report / Demobilization completed 20-JUL-18

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