Contact: Mr. Aissa Abdelkrim Benghanem, Director-General, Sonelgaz, 2, boulevard Krim Belkacem, Algiers, ALGERIA, Phone: 011-213-2-74-82-60, Fax: 011-213-2-64-85-46

B -- ALGERIAN HADJRET EN NOUSS 2X600MW IPP PROJECT POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009. ALGERIAN HADJRET EN NOUSS 2X600MW IPP PROJECT. The Grantee, Sonelgaz, 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 Algerian-sponsored Hadjret En Nouss 2x600MW IPP. In order to meet projected increases in electrical demand (from 5447MW in 1996 to 9300MW in 2010), Algeria is planning to build three new 2x600MW gas-fired power plants in Northern Algeria. Sonelgaz, the state-owned utility company for electricity and gas, has declared that each of the plants will be an IPP. The first of these major projects will be the IPP at Hadjret En Nouss. Only 80 kilometers west of Algiers, along the Mediterranean Sea, the plant will serve the growing population in the countrys North. Electricite de France recently completed the pre-feasibility study, but Sonelgaz, wishing to get a U.S. perspective on the project, has requested assistance from TDA with the development of the feasibility study and the projects design. A start-up date of 2003 is anticipated. The feasibility study will focus on a number of areas: 1. Review Existing Information (including the preliminary work done in the pre-feasibility study); 2. Evaluate Siting And Land Use Issues; 3. Evaluate Fuel Procurement, Supply, And Pricing; 4. Evaluate Power Plant Technology; 5. Evaluate Transmission Facilities Requirements; 6. Evaluate Environmental Impacts; 7. Project Permit Requirements; 8. Estimate Project Capital Costs; 9. Estimate Project Operations And Maintenance Costs; 10. Power Sales Agreement; 11. Project Financing Options; 12. Project Construction Schedule; 13. Revise Existing Power Plant Procurement Documentation; 14. Final Report; and 15. Preparation Of The RFP For IPP Developers. Wherever appropriate, the consultant will make recommendations for the procurement of the best goods and services to suit the findings of the study. Also, Sonelgaz uses the European Architectural/Engineering approach for procurement of power plant-related engineering services and equipment, and its bid document boilerplates were written by the French with a clear bias towards French manufacturers and service providers. Sonelgaz has requested that TDA assist in the development of procurement documentation which will allow Algeria to have options in addition to those offered by European companies. To ensure that American companies will have the opportunity to compete for the implementation of this project, the selected feasibility study consultant will write the IPPs implementation tender documents. Task 13, Revise Existing Power Plant Procurement Documentation, will assist Sonelgaz with this need and will focus on what changes need to be accomplished in order for the IPP bid to be released to truly international competition. The study Terms of Reference will be performed by an independent firm which will not be eligible to compete as a potential contractor for the installation and operation of the project. The use of an independent U.S. firm to perform the Study will provide Sonelgaz with a broader perspective and more options for implementation. This method will also allow the selected U.S. firm to prepare the bidding documents and procedures on behalf of Sonelgaz. The U.S. firm selected will be paid in U.S. dollars from a $562,000 grant to the Grantee from the U.S. Trade and Development Agency (TDA). Sonelgaz will provide all security necessary to ensure the safety of the U.S. Contractor while in Algeria. Details of the security provided are incorporated into the TDA grant (Annex 3) which is included in the Request for Proposals (RFP). A detailed RFP, which includes requirements for the Proposal, the Terms of Reference, and a background definitional mission 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 firms 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 and in French directly to the Grantee by Noon, Local Algerian Time, Monday, November 2, 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. Posted 09/11/98 (I-SN248843). (0254)

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