Ms. Stephanie de Villiers, Executive Manager The Lebowa Minerals Trust, P.O.Box 1070, Lebowakgomo 0737 Northern Province, South Africa. Phone Number: (015) 633-5465/6/7, Fax Number: (015) 633-5215

B -- TDA 96-020B FEASIBILITY STUDY FOR COALBED METHANE PRODUCTION AND UTILIZATION POC Carol Stillwell, USTDA, Room 309, SA-16, Washington, D.C. 20523-1602, Tel: (703) 875-4357, Fax No.: (703) 875-4009 POC Carol Stillwell, USTDA, Room 309, SA-16, Washington, D.C. 20523-1602, Tel: (703) 875-4357, Fax: (703) 875-4009. Feasibility study for coalbed methane production and utilization. The Grantee 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 the production and use of Coalbed Methane (CBM) in the Zebediela area in the Northern Province of South Africa. The project, as part of the "Reconstruction and Development Program" initiated by the Government of South Africa, seeks to promote social, commercial, and industrial development through the provision of competitive and environmentally responsible energy in the region. The Lebowa Minerals Trust was established as a non-profit organization to which the mineral rights of the former independent homeland of Lebowa were granted under trusteeship. These rights are to be managed and administered for the maximum benefit of the people of the Lebowa area. The Lebowa Minerals Trust is looking at the development of CBM production from the coalfields under its jurisdiction as a means of advancing the local economy and to combat local environmental degradation. The feasibility study includes: the assessment of the CBM resources; the economics of recovery; a detailed assessment of potential gas markets; an environmental impact assessment; and an evaluation of overall project economics. It is proposed that this feasibility study be carried out in two phases. Phase I will be directed at establishing the extent of gas resources in the Zebedielia area. Specifically, the Phase I effort would include the review of pre-feasibility study results and the integration of additional geological and geophysical data; the drilling of 4 core-holes to predict coal zone depths and the recovery of NQ or BQ cores; monitoring drilling operations and the analysis of representative cores; running downhole geophysical logs; the analysis of geological data; construction of representative well models and performing reservoir simulation; and performing an economic scoping study. Phase 2 will be contingent on positive results from Phase 1 as to the existence of worthwhile quantities of CBM which can be realistically extracted for production at Zebedielia. The Phase 2 effort would include acquisition and interpretation of satellite imagery data for the selection of sites for drilling wells for determining permeability and insitu stress; drilling 3 PQ percussion holes; performing injection/falloff well testing to determine permeability and insitu stress; the preparation of a detailed market study of the potential gas produced under different scenarios; the preparation of an environmental impact analysis; and the preparation of a final report. Proposals will cover both Phase I and Phase II, thought TDA has at this point granted funding for Phase I only. Proposals will be evaluated based on the following evaluation criteria: 1. Corporateexperience in the design of coalbed methane projects 30%, 2. Experience in working with Southern African coal/shale deposits with specific emphasis on CBM development 30%, 3. Key personnel 20%, 4. Resources to carry out the project 20%. The U.S. firm selected will be paid in U.S. dollars from a $137,000 grant to the Grantee from the U.S. Trade and Development Agency (TDA) for Phase I of this study. The selected firm will agree to cost sharing for Phase I of the study in the amount of $20,000. Subject to the availability of funds and successful results from Phase I, TDA will consider a grant to fund Phase II of the study at $ 161,000, with the contractor again required to contribute $20,000 in cost-sharing. The Grantee is providing $60,000 of in-kind contributions for the entire study. The cost of the entire study if $398,000. A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background definitional mission report are available from TDA, at Room 309, SA-16, Washington, D.C. 20523-1602. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. In the fax, please include your firm's name, contact person, address, and telephone number. Some firms have found that RFP materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want TDA to use an overnight delivery service should include the name of the delivery service and your firm's account number in the request for the RFP. Firms that want to send a courier to TDA to retrieve the RFP should allow one hour after faxing the request to TDA before scheduling a pick-up. Please note that no telephone requests for the RFP 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 RFP's 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. All goods and services to be provided by the selected firm shall have their nationality, source and origin in the U.S. or host country. The U.S. firm may use subcontractors from the host country for up to 20 percent of the TDA grant amount. Details of TDA's nationality requirements and mandatory contract clauses are also included in the RFP. Interested U.S. firms should submit their Proposal in English by Monday, March 10, 1997, directly to the Grantee in South Africa. Evaluation criteria for the Proposal are included in the RFP. 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. (0023)

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