Mr. M. Salkic, Mining and Industry,41 Alipasina St.,71000 Sarajevo,Bosnia/Herzegovina;Tel:387-71-444-715,Fax:387-71-642-064

B -- BOSNIA AND HERZEGOVINA -- MIDDLE BOSNIA AND TUZLA COAL MINES FEASIBILITY STUDY POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 200, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009 The Federal Minister of Energy, Mining and Industry (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 rehabilitation, restructuring and modernization of BiH's Middle Bosnia and Tuzla Coal Mines. The Federal Government of BiH is actively seeking to rehabilitate war-damaged industries and frequently cites its coal mining industry as an area desperate for rehabilitation. The on-going struggle to reemploy citizens in this sector is an issue that the Government of BiH is addressing, and restructuring the coal mines is particularly important to each of Bosnia's entities, since the supply of electric power is a critical component to social and economic infrastructure. If implemented, the rehabilitation of these mines could create a potential for $110 million in U.S. exports. Therefore, the purpose of this feasibility study is to produce a technical and economic analysis of the Middle Bosnia and Tuzla Coal Mines. The feasibility study would identify opportunities for rehabilitation of selected mines based on prudent investments. The investments in selected mines should stimulate sustainable development for the remaining economic life of the mine. Recommendations for rehabilitation should focus on mine technology, and mining techniques and operations that will improve efficiency and reduce costs at selected mines. This project would consist of thirteen tasks: 1. Project Initiation 2. Review of Existing Mine Operations, including Environmental Impacts 3. Analysis of Local Coal Markets 4. Analysis of Mining Methods and Mine Plan Optimization 5. Coal Resource Estimation 6. Equipment Definition and Tender Document Preparation 7. Coal Processing Studies 8. Infrastructure and Environmental Improvements 9. Proposed Restructuring for Coal Mining Companies 10. Capital and Mine Operating Cost Requirements 11. Economic Evaluation 12. Recommendations for Mine Closure, including Safety and Environmental Issues 13. Final Report Preparation The selected Consultant must sufficiently address each task. The U.S. firm selected will be paid in U.S. dollars from a $351,400 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 4:00p.m., September 2, 1999 at the above address. Evaluation criteria for the Proposal are included in the RFP. Although price will not be a factor in contractor selection, cost proposals must be submitted for the purpose of evaluating proposed allotments of resources. 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 07/22/99 (I-SN357910). (0203)

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