Mr. Manuel Ruas; Department of Energy; Ministry of Mineral Resources and Energy; Av. 25 de Setembro, 1218, 3rd Floor; Maputo, Mozambique; Telephone/Fax: (258-1) 42-02-45

C -- FEASIBILITY STUDY FOR ALUMINUM SMELTER PROJECT IN MOZAMBIQUE DUE 021996 POC Carol Stillwell, USTDA, Room 309, SA-16, Washington, D.C. 20523-1602, Tel: (703) 875-4357, Fax No.: (703) 875-4009 The Ministry of Mineral Resources and Energy 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 develop a feasibility study for an Aluminum Smelter Project in Mozambique. The smelter would convert available hydroelectric energy to a value added export commodity. The preliminary capital cost of the smelter and port facilities is estimated at $724 million. The Government of Mozambique anticipates that the smelter complex would be located in the less developed central or northern regions of Mozambique. The objective of the feasibility study is to structure a bankable project, for an international lending authority or a combination of loans from international sources, for an aluminum smelter complex with a capacity of 120,000/240,000 MTA, complete with all infrastructure needs for the import of raw materials and export of aluminum products, including the high voltage transmission system necessary to deliver electrical power from Cahora Bassa Dam to a switching station adjacent to the smelter complex. The study shall assess the technical, economic and financial viability of the smelter/port/power transmission project and shall determine a project financing strategy. The study also shall determine the location of the plant. It is assumed that the study will address, at a minimum, the following issues: Process technology for the smelter shall be selected and the most economic production capacity decided so as to establish a plant that will utilize the best available aluminum reduction technology for the location and the environment in which it will be operating. Determine the minimum economic initial plant capacity that can be expanded to a final capacity of about 240,000 MTA with the purpose of minimum initial capital cost. Prepare proposed layout and schematic drawings for the smelter. Additional layout drawings will include: electrical substations for incoming power rectifiers, green carbon plant, baking furnaces, metal casting facilities, metal storage, fume treatment facilities, raw materials handling and storage, and necessary infrastructure for the import of raw materials and the export of aluminum products. Determine site location for the smelter complex, taking into account the port facilities existing at locations such as Maputo, Beira, and Nacala; the availability of land at these locations; and the cost of delivering electrical power to these locations. Evaluate the economic feasibility of the project, taking into account the minimum and maximum economic capacity of the plant. Determine smelter power, utility requirements, and works power requirements for the facility. Conduct market analysis with expected local and international demand for the range of metal production proposed. Develop an operating cost estimate with detailed costs of power, raw materials, ancillary materials, utilities, manpower, maintenance, and administrative services. Prepare capital cost estimates for the project based on the schematic and layout drawings. Prepare financial analysis of the project, including cash flow forecast, return on investment, and ability to meet the project debt service obligations. Prepare final report. The budget for the Study terms of reference has been established at $1.3 million. Of this amount, TDA will provide partial funding of $675,000. The U.S. firm selected to perform the assignment will be paid in U.S. dollars from a $675,000 grant to the Ministry of Planning and Finance in Mozambique, from the U.S. Trade and Development Agency (TDA). In addition, the U.S. firm selected to perform the study shall provide the remaining costs ($625,000) to cover expenses and/or in-house costs incurred to complete the terms of reference. It is possible that the African Development Bank may provide a grant up to $425,000 toward the cost of the study. However, the African Development Bank funding should not be assumed at this time. A detailed Request for Proposals (RFP), which includes requirements for the Proposal, and a background definitional mission report are available from TDA, at Room 309, SA-16, Washington, D.C. 20523-1621. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. Please include your company name, contact person, address, and telephone number. Some companies have found that materials sent via U.S. Mail do not reah them in time for preparation of an adequate response. If you would like the RFP sent to you via courier delivery service, include the name of the courier company and your firm's account number. No telephone requests for the RFP will be honored. In accordance with the grant agreement and TDA nationality requirements, only U.S. firms and individuals may bid on this TDA financed activity. Furthermore, all goods and services necessary to complete the feasibility study, whether or not financed by TDA, shall have their nationality, source and origin in the U.S. or Mozambique. In no case shall goods and services having their nationality, source, or origin in Mozambique exceed 20 percent of the amount of the Grant Agreement provided by TDA. 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. Details of TDA's nationality requirements and mandatory contract clauses are also included in the RFP. Interested U.S. firms should submit five (5) copies of their Proposal in English directly to the Grantee in Mozambique. Evaluation criteria for the Proposal follow: Firm's prior overseas experience in implementing comparable projects with emphasis in the design, operation, management, efficient layout, and choice of location for an aluminum smelter complex with all infrastructure for the import of raw materials and the export of aluminum products. The extra high voltage transmission system necessary to deliver electrical power from Cahora Bassa, or other power source, to the smelter complex will be included in the overall scope of work. (20%) Firm's expertise in developing costs and investment programs for major private sector aluminum smelter complex projects, including a current list of completed projects. (10%) Feasibility Study Proposal that includes: proposed technical approach, milestones, and workplan for conducting the study. A proposed implementation plan for the aluminum smelter complex, necessary infrastructure, and power transmission system also should be included. (50%) International finance experience working with commercial banks, international financing institutions, and donor agencies on the packaging of pivate sector aluminum smelter complex projects. (10%) Professional staff qualifications and experience in comparable work, including: years with the firm, years in present position, years of overseas experience. Team qualifications should focus specifically on aluminum smelter complex and power transmission system projects, including facility design and operations. (10%) Price will not be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The Grantee reserves the right to reject any and/or all Proposals. The Grantee also reserves the right to contract with the selected firm for subsequent work related to the project. The Grantee is not bound to pay for any costs associated with the preparation and submission of Proposals. (0348)

Loren Data Corp. http://www.ld.com (SYN# 0022 19951215\C-0004.SOL)