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COMMERCE BUSINESS DAILY ISSUE OF MAY 4,1998 PSA#2087

Contact: General Director, Birlik Cimento A.S., Denizli Organize Sanayi Bolgesi, Mudurlugu; Denizli, Turkey. Tel: (90 258) 269-1002, Fax: (90 258) 269-1001.

B -- TURKEY: SOUTHWESTERN ANATOLIA CEMENT PROJECT POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009 Southwestern Anatolia Cement Project. 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 construction of a cement manufacturing facility in the southwestern Anatolian region of Turkey. The Southwestern part of Anatolia has grown rapidly during the last ten years. Textiles and other light manufacturing industries have led the growth, along with the tourism industry in coastal areas. Turkey's primary Mediterranean resorts, including Antalya and Alanya, are located in the area. This growth has created shortages in the locally available supply of cement for construction. With a planned production capacity of 1 million tons per year (TPY), the plant will produce standard Portland cement, rapid hardening Portland cement, and Sulfate resisting Portland cement. A site has been selected near a coal-fired power plant, which will provide waste fly ash to the project. The bagged cement product is intended to meet the internal demand in the southern and western coastal areas. Additionally, some output of the plant could be exported to nearby countries, including Lebanon, Jordan and Israel. The feasibility study will be performed in two phases and will include the following tasks: PHASE 1 -- 1. Perform a market study to determine if there is a need for another cement plant in the region and, if so, to determine market size, growth potential, probable sales, appropriate pricing structure, advantages and disadvantages of the proposed plant and products with respect to the competition. Determine the market demand for different types of cement. Determine demand for bulk vs. packaged cement. 2. Evaluate the plant location and resources. Specifically verify the quantity and quality of raw materials. Conduct field surveys and collect material samples and test. Verify size of stockpiled material and probable reserves. 3. Evaluate land costs for the plant and the costs of furnishing and supplying of raw material. Evaluate and verify the cost and mode of transport of raw materials, including flyash from the power plant. Evaluate and determine the cost of and means of transport of coal to the site. Verify the power supply and other utilities, and necessary cost to bring them on site. 4. Perform a conceptual design of the plant. Prepare conceptual level estimate of the cost of the plant. 5. Prepare an initial pro-forma and Phase 1 report. PHASE 2 -- 1. Determine basic system of production. Devise process design and flow sheets to determine equipment requirements and capacity.This should be done to a level necessary to obtain budget prices for inclusion in the feasibility study only. Detailed engineering designs and specifications are not appropriate at this particular level. 2. Determine: Needed infrastructure such as roads, rail, etc.; Needed utilities such as water, compressed air and water treatment facilities; Raw materials pre-blend and storage; Raw grinding; Blending, kiln feed and storage; Preheater tower; Kiln systems; Coal storage and handling; Clinker conveying and storage; Cement grinding; Bulk and packaged handling and shipping; Electrical power supply and distribution; Instrumentation and control systems. 3. Determine necessary design to allow for future plant growth if warranted. 4. Perform a complete environmental study and impact assessment of the new plant. Determine appropriate measures to eliminate or minimize environmental impact. Establish environmental systems and controls to be incorporated into the plant. 5. Prepare process flow sheets and plans and elevations of major equipment and plant components. 6. Prepare major process equipment and system component specifications to a level necessary to obtain budget prices for the feasibility study. Electrical equipment, quality control systems and electrical equipment specifications should be included. 7. Obtain budget prices for installation, check out and commissioning plant components. 8. Obtain cost estimates for civil and site works. 9. Prepare ancillary equipment specifications and obtain budget prices. 10. Estimate the cost of cement production and verify with the Consortium. 11. Determination of capital costs and a financial analysis including economic justifications, sources of financing and pro-formas are required. Prepare pro-forma based on realistic sales projections. Allow for start up mode of plant and competing in new area in projections. 12. Determine potential sources of financing, both international and local. Determine possible equity participation. Determine other credits available. Investigate interest of US investors in project equity participation. 13. Finalize and prepare the report. The U.S. firm selected will be paid in U.S. dollars from a $430,000 grant to the Grantee from the U.S. Trade and Development Agency (TDA). A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background desk study report are available from TDA, at 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131. 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 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. 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 directly to the Grantee by 4:00 PM, June 4, 1998 at the above address. 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. (0120)

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