Hon. Stan Webster, Dep. Min., Ministry of Agriculture, Water, and Rural Development, Agricultural Bldg. Cnr. Robert Mugabe Ave. & Peter Muller St. Private Bag 13184 Windhoek, Namibia Tel: 011-264-61-202-9111 Fax: 011-264-61-229-961

C -- CAPRIVI SUGAR SECTOR PROJECT FEASIBILITY STUDY 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 Agriculture, Water, and Rural Development, Namibia invites submission of qualification documents from interested U.S. firms which are qualified on the basis of experience and capability to conduct a detailed feasibility study for the development of an integrated sugar project at the Caprivi site. The Ministry's objective is to develop a viable sugar industry in Namibia not only for the domestic market but also for the export of sugar to regional and international markets. Specific tasks of the feasibility study include the following:1. Collect available data and information on all parameters needed for the development of a sugar project and conduct a desk review of all data and information. 2. Conduct site visits to the Caprivi region and collect data on the availability of land, climate, soil condition, including soil samples for laboratory analysis, local infrastructure, water availability, etc. 3. Conduct an assessment of the present and future market demand for sugar in the country, regionally and internationally, including the competition from other regional producers. 4. Based on the immediate and medium-term (10 years) demand for sugar and selected byproducts, conduct an analysis of the proposed site in the Caprivi region in terms of soil condition, climate, water availability, labor availability, transportation and infrastructure requirements, electricity needs and other factors. 5. Based on the above factors and environmental requirements, define an initial sugar project in terms of cane plantation (hectares), sugar production, estimated byproducts such as alcohol and on-site electric power generation, technology deployed for cultivation, irrigation, sugar milling and refining, and power generation utilizing excess bagasse, etc. Prepare a conceptual layout of the facility identifying all equipment and systems. 6. Identify all environmental factors and conduct an environmental assessment of the proposed sugar project. 7. Based on the conceptual design of the project developed in 5 above, develop engineering cost estimates for both capital and O&M costs for the project based on standard industry costs for both the foreign and local components of the project. 8. Based on the cost estimates developed in 7 above, and the time frame for the construction and operation of the project, develop an investment schedule for the project.9.Based on existing tariff and wages, interest rates, tax schedules, develop a revenue stream for the project and conduct economic and financial analyses for the project, including the economic and financial internal rates of return (EIRR and FIRR) under different assumptions for schedules based on the prevailing tariffs and fiscal and financial incentives. 10. If the project is found to be economically and financially viable, develop a financing plan for the project. Also, develop a project implementation plan including any training requirements.Because of the sensitivity to environmental issues relating to this project, the Grantee has requested that this announcement stress the importance of a full, comprehensive environmental impact analysis as part of the proposal. The Grantee notes that land and water availability are key issues which must be addressed, and that the Grantee expects public hearings in both Windhoek and the closest urban center to the proposed site Katima Mulilo. The issue of water availability highlights the need to include input from Zambezi basin countries (Angola, Zambia, Botswana, and Zimbabwe) over the impact to the basin of the proposed project. The proposal should also consider the project's likely impact on ongoing U.S. Government support for conservancy efforts in the Caprivi area in terms of habitat and biodiversity impacts, as well as opportunity costs to local communities. The Contractor should consult closely with concerned NGO's, community groups, and Grantee officials on these issues.The U.S. firm selected will be paid in U.S. dollars from a $350,000 grant to the Grantee from the U.S. Trade and Development Agency (TDA). The total cost of the study is estimated at $500,000. The selected firm will agree to cost share the study in the amount of $100,000. Also the Ministry will contribute manpower to the study estimated at $50,000. A detailed scope of work and definitional mission (DM) report on the project which includes background information are available from TDA, at Room 309, SA-16, Washington, D.C. 20523-1621. Requests for the background information should be faxed to the IRC, TDA at 703-875-4009. Please include your firm's name, contact person, address, and telephone number. Some firms have found that the materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want TDA to use a courier delivery service should include the name of the courier company and their account number in the request for the DM report. No telephone requests for the DM report will be honored. Please check your internal fax verification receipt. Because of the large number of RFP requests, TDA cannot respond to requests for fax verification. Requests for RFPs received before 4:00 PM will be mailed the same day. Requests received after 4:00 PM will be mailed the following day. Please check with your courier and/or mail room before calling TDA. Only U.S. firms and individuals may bid on this TDA financed activity. 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. The U.S. firm may use subcontractors from the host country for up to 20 percent of the TDA grant amount. Interested U.S. firms should submit their proposal directly to the Grantee in Windhoek, Namibia by November 15, 1996. Evaluation criteria for the proposal are as follows: 1. Experience in Developing Cane Sugar Projects, 40%. 2. Experience in Sugar Cane Cogeneration Power Projects, 15%. 3. General Project Engineering Experience including Water Resources and Environmental Impact Assessment, 20%. 4. General Overseas Projects Experience, 10%. 5. Overseas Experience in Cane Sugar Projects, 15%. Price will not be a factor in contractor selection, and therefore, cost proposals should not be submitted. The Grantee 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 qualifications documents and proposals. (0289)

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