Mr. Abu Bakkar, Longulf Trading (UK) Ltd., Prince Albert House, Kingsmill Terr., London NW8 6AA, Tel: 44 (0171) 722 7733, Fax: 44 (0171) 722 2989, Email: projdev@longulf.com.

B -- YEMEN: THE YEMENI CEMENT PLANT FEASIBILITY STUDY -- PROMOTED BY THE HAYEL SAEED ANAM GROUP OF THE REPUBLIC OF YEMEN POC Ms. Evangela Kunene, USTDA, Room 300, 1621 N. Kent Street, Arlington, VA 22209-2131, Telephone: (703) 875-4357, FAX: (703) 875-4009 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 new cement manufacturing plant at the Hayel Saeed Anam facility in Yemen. Although the Government of Yemen is currently the only domestic producer of cement, it is encouraging private sector investment activities to strengthen the Yemeni economy. With the discovery and production of oil and gas in Yemen, the construction industry in the country is growing more rapidly than can be fully served by the existing facilities. Additionally, due to inefficient or obsolete technology, the three state-owned plants are currently operating below their production capacities. The low rate of domestic production has resulted in the importation of a substantial volume of cement from China, Romania, Saudi Arabia, Jordan, and other countries. It is anticipated that the demand for cement by Yemeni companies will increase from 3 to 3.6 million TPY by 2005. Accordingly, the need for a new, modern, and efficient manufacturing facility is recognized by the government as a high priority. Hayel Saeed Anam Group (HSA) of Yemen, is the single largest, private company in Yemen. The company is active in manufacturing (e.g., edible oil processing plant, dairy products; processed foods; packaging plants in paper, plastic, and metal; detergents; cigarettes; lube oil; textile yarn, etc.) and trading and distribution (e.g., bulk commodity in food, edible oil, construction materials, chemicals, and automobiles). HSA has offices and plants around the world including facilities in Yemen, Saudi Arabia, the United Kingdom, Egypt, Malaysia, Indonesia, Dubai, Jordan, etc. The proposed Cement Factory Project has a planned production capacity of 650,000 TPY, with expansion to 1.3 million TPY within two years, or 1.3 million TPY to start with itself depending upon the outcome of the market and financial Feasibility Study. HSA has completed a marketing study, and the results suggest that such a plant will be viable on a long-term basis due to cost competitiveness and the growth of housing construction as well as infrastructure development in the country. Because the cement to be produced at the proposed plant will replace much of the expensive imported cement, the Government of Yemen has declared the construction of a private plant to be a high government priority. The objective of the Feasibility Study is to conduct a detailed technical and economic feasibility for the 650,000 TPY -- 1,300,000 TPY cement plant to be located in Bajil, Yemen, or other appropriate Yemeni location depending as per the logistical advantages on raw material supply and cement marketing. The tasks for the U.S. contractor to complete include a market study, raw materials investigation, plant site investigation, preliminary plant design, preliminary estimates of operating and capital costs, environmental impact, an implementation schedule, and financial and economic analysis. The project cost analysis should be done by preparing a tender document that will be forwarded to the major suppliers to cement plants. Upon the receipt of techno-commercial offers from these international suppliers, the information (e.g., various aspects of technology, cost, etc.) should be reflected in the determinations of the Feasibility Study. Recommendations for U.S. procurement will be made wherever appropriate. The study has been estimated by TDA to cost US$446,000. In addition to the TDA grant funding of US$400,000, the Contractor and/or its subcontractors must cover the remaining costs required to complete the full Terms of Reference. 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. (The address in London will accept all proposals and inquiries on behalf of the office in Yemen: Mr. Abdul Gabbar Hayel Saeed, President, Hayel Saeed Anam & Company, Ltd., Anam Building, Al-Mugama Street, P.O. Box 5302, Taiz, Republic of Yemen, Telephone: 011-967-4-215-171/221-558, Fax: 011-967-4-212-334.) Interested U.S. firms should submit their Proposal in English directly to the Grantee by 4:00 p.m., Wednesday, June 16, 1999, 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 04/29/99 (I-SN325972). (0119)

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