REPUBLIC OF CROATIA CROATIAN HYDROCARBON AGENCY KLASA: 310-34/20-01/03 URBROJ: 405-04/01-20-3 Zagreb, 1 June 2020 BIDDING ROUND DOCUMENTATION for granting licences for the exploration of geothermal waters in the Legrad-1 exploration block Zagreb, June 2020 CONTENT 1. INTRODUCTION ......................................................................................................................... 1 1.1 Description of the single procedure for issuing a licence for the exploration of geothermal waters and a production licence for geothermal waters ...................................................................... 1 2. GENERAL INFORMATION....................................................................................................... 1 2.1 Information on the Ministry authorized to issue the licence for exploration of geothermal waters and the production licence for geothermal waters ................................................................... 1 2.2 Contact person information ..................................................................................................... 2 2.3 List of economic entities with which the Ministry would be in conflict of interest ................ 2 3. INFORMATION ON THE BIDDING ROUND SUBJECT ...................................................... 2 3.1 Description of the bidding round subject ................................................................................ 2 3.2 Technical specifications of the bid .......................................................................................... 3 3.2.1 Geographical location of the bidding round subject ........................................................ 3 3.3 Summary of geological settings and geothermal potential of the Legrad area ........................ 5 3.3.1 Geological settings of the Drava Depression .................................................................. 5 3.3.2 Geothermal potential of the Legrad area ......................................................................... 7 3.4 Available geological, geochemical and geophysical data ....................................................... 8 3.5 Conditions for conducting exploration activities ................................................................... 10 3.6 Type and scope of exploration activities ............................................................................... 11 3.7 Period and validity of the licence for exploration of geothermal waters ............................... 11 4. GROUNDS FOR BIDDER EXCLUSION AND CONDITIONS FOR THE LEGAL AND BUSINESS, FINANCIAL, TECHNICAL AND PROFESSIONAL CAPACITIES OF THE BIDDER ............................................................................................................................................... 11 4.1 Grounds for exclusion of bidders .......................................................................................... 11 4.2 Conditions for the legal and business, financial, technical, and professional capacity of the bidder 13 4.2.1 Conditions of the legal and business capacity ............................................................... 13 4.2.2 Conditions for the bidder's financial capacity ............................................................... 13 4.2.3 Conditions of bidder's technical and professional capacity ........................................... 15 5. BID INFORMATION ................................................................................................................. 15 5.1 Content and form of the bid................................................................................................... 15 5.1.1 Content of the bid .......................................................................................................... 15 5.2 Form of the bid ...................................................................................................................... 17 5.3 Bid submission manner and the end date for submission ...................................................... 18 Legrad-1 Geothermal waters exploration block 5.4 Calculation of the royalty ...................................................................................................... 18 5.5 Criteria for the selection of the most favourable bid ............................................................. 18 5.6 Bid validity period ................................................................................................................. 21 6. OTHER INFORMATION REGARDING BIDDING ROUND .............................................. 22 6.1 Bid fee ................................................................................................................................... 22 6.2 Requests regarding clarification and amendments related to Bidding Round Documentation 22 7. BID GUARANTEE ..................................................................................................................... 22 7.1 Type and instrument of bid guarantee ................................................................................... 22 7.2 Proceedings regarding bid guarantee ..................................................................................... 23 7.3 Guarantee for execution of work obligations in the exploration period ................................ 23 7.4 Guarantee for decommissioning ............................................................................................ 23 8. PROCEEDINGS WITH PERSONAL DATA .......................................................................... 24 SCHEDULE I - SPECIAL CONDITIONS AND LIMITATIONS THAT SHALL BE OBSERVED DURING THE PERFORMANCE OF EXLORATION WORKS ........................... 25 SCHEDULE II - DATA COLLECTION CONSENT ...................................................................... 62 2 Legrad-1 Geothermal waters exploration block 1. INTRODUCTION 1.1 Description of the single procedure for issuing a licence for the exploration of geothermal waters and a production licence for geothermal waters For the purposes of this Bidding Round Documents, geothermal waters are considered geothermal waters from which accumulated heat can be used for energy purposes (hereinafter: geothermal waters), in accordance with the Act on the Exploration and Production of Hydrocarbons (Official Gazette, No. 52/18 and 52 / 19) (hereinafter: the Act). Pursuant to the provisions of Article 54 of the Act, the issuance of a production licence for geothermal waters shall be conducted on the basis of a single procedure, which begins with the selection of the most favourable bidder for the issuing of a licence for the exploration of geothermal waters and ends with the conclusion of a contract for the production of geothermal waters. Accordingly, the subject-matter of the bidding round includes the entire above mentioned single procedure and all its stages. In the process of selecting the most favourable bidder for issuing the licence for exploration of geothermal waters in the Legrad-1 exploration block, a single procedure is conducted for the said exploration block. For the exploration block for which bids are submitted that satisfy meet the conditions set out in this Bidding Round Documentation for the selection of the most favourable bidder for the exploration of geothermal waters in the Legrad-1 exploration block for the issuing of a production licence for geothermal waters for energy purposes (hereinafter: Bidding Round Documentation), the Ministry of Environment and Energy (hereinafter: Ministry), based on the proposal of the Commission for the selection of the most favourable bidder in the bidding round for the selection of the most favourable bidder for the exploration of geothermal waters in the Legrad-1 exploration block, for the issuing of a licence for the exploration of geothermal waters (hereinafter: Commission), renders a decision on issuing of a licence for the exploration of geothermal waters. Accordingly, the bidders shall submit their bids for the exploration block in question where they intend to conduct the exploration of geothermal waters. 2. GENERAL INFORMATION 2.1 Information on the Ministry authorized to issue the licence for exploration of geothermal waters and the production licence for geothermal waters Name: Ministry of Environment and Energy Headquarters: Radnička cesta 80, 10 000 ZAGREB Personal Identification Number (OIB): 19370100881 Telephone number: 01/3717 111 Web site: www.mzoe.hr 1 Legrad-1 Geothermal waters exploration block 2.2 Contact person information Name: Croatian Hydrocarbon Agency Contact person: Marija Baketarić Telephone number: 01 / 6431-941 Web site: www.azu.hr E-mail address: [email protected] 2.3 List of economic entities with which the Ministry would be in conflict of interest Pursuant to Article 80 of the Public Procurement Act (Official Gazette, No. 120/16), the issuer of the exploration licence for exploration of geothermal waters and the production licence for geothermal waters shall not enter into agreements on the production of geothermal waters with the following economic entities: - ADECO d.o.o. Gorjanovićeva 54, 10 000 Zagreb, OIB: 97978600847 The aforementioned economic entities shall not participate as a bidder or a consortium member and shall not be a subcontractor for the selected bidders in the bidding round procedure for the purpose of selecting the most favourable bidder for the exploration of geothermal waters in the Legrad-1 exploration block. 3. INFORMATION ON THE BIDDING ROUND SUBJECT 3.1 Description of the bidding round subject