Shalkiya Zinc: Pre-Privatization Loan

Procurement ref: 9141-EOI-48347

Location: Kazakhstan

Business sector: Natural resources

Project number: 48347

Funding source: EBRD loan proceeds and own funds of the Client

Contract type: Consultancy Services

Notice type: Invitation for expressions of interest (loan or grant funded)

Issue date: 13 Jun 2018

Closing date: 03 Jul 2018   at  12:15   Local time

Invitation for Expressions of Interest

Project Management and FIDIC Engineer

This Invitation for Expressions of Interest follows the General Procurement Notice for this project which was published on European Bank for Reconstruction and Development (the Bank) website, Procurement Notices (www.ebrd.com) in 2017.

ShalkiyaZinc LTD JSC (the «Borrower» or the “Client”), a 100% subsidiary of JSC Tau-Ken Samruk («the Sponsor»), National Mining Company of Kazakhstan, has received a USD 295 million pre-privatization loan from the Bank to finance expansion of the Shalkiya zinc-lead mining operation.

The main goal of the Shalkiya deposit development (hereinafter – the “Project”) is to provide a long-term, reliable production of zinc and lead concentrates by expansion of the mine capacity, and construction of the Processing plant (Concentrator) and other infrastructure facilities to meet the Project key objectives.

The Project comprises of development of an underground mine facilities and construction zinc-lead concentrator adjacent to the mine which is intended to be executed on Construction and Plant and Design-Build Contracts (accordingly) based on FIDIC Conditions of Contracts. The planned parameters are: mill-feed output of 4 Mtpa and with high-grade zinc concentrates output between 190 000 to 230 000 tpa (wet mass), lead concentrates – 35 000 to 65 000 tpa.

The Design-Build Contract implicates construction of concentrator and related facilities will cover the works, including design, construction and installation of the ore processing plant along with all necessary interconnections to existing facilities and infrastructure, certification, training, commissioning (incl. individual and complex tests, process guarantee tests and trial run) and supply and supervision of installation of ore crushing and lifting equipment to be installed in the mine.

The Mining Works Contract involves construction of underground works (all types: vertical/shafting, lateral, inclined and room-workings) and surface mine facilities, as well as all necessary interconnections and infrastructure based on detailed design, provided by the Client, which is in turn has been developed based on the Main Mine Design (stage “Project/Design” in accordance with the national construction standards, approx. close to FEED stage).

The Client now intends to engage Consultants (also referred to as “Project Management and FIDIC Engineer”), who shall exercise all duties in assisting the Employer in the overall project management, design review, supervising and coordinating of all works under two contracts described above to ensure successful implementation, of the Project. All activities shall be performed fully in accordance with the relevant local laws of the Republic of Kazakhstan.

The Consultants’ duties will include inter alia acting as the FIDIC Engineer and carrying out all normal duties required under conditions of construction and design and build contracts and the terms of references. In addition, the Consultants shall also perform monitoring of the works and reporting pursuant to the relevant Loan Agreement(s).

It is expected that the Consultants shall perform the following main tasks (in relation to both above mentioned contracts):

  • Ensure, through the review and revision of main design (basic design documentation intended for licensing and permitting) and detailed design, the compliance of project documentation with the Employer’s requirements and Specification, standards and local legislation;
  • Ensure that Works are being carried out in compliance with the Design and Build Contract and Mining Contract, relevant technical documentation, applicable standards and norms, as well as environmental and social requirements of EBRD;
  • Provide continuous monitoring of contractors schedules and its modifications, quality of equipment/goods, compliance with environmental requirements, etc.;
  • Supervise the Works, assure technical assistance during works execution;
  • Measure the Works, agreeing and certifying interim and final payment certificates for submission to the Employer;
  • Issue site instructions, variation orders and day works orders, as appropriate;
  • Maintain regular estimates of the cost to completion and time to completion for the Construction Contracts;
  • Review and agree with the Employer, the Contractors’ work programs and subsequently monitoring the construction progress in accordance with contract requirements;
  • Organize the necessary meetings at the construction site and to prepare the minutes of meetings and to monitor and supervise the implementation of the final decisions taken in the meetings;
  • Establish the list of defects or damages or review the list of defects or damages prepared by the Borrower and provide recommendation on the measures for its elimination;
  • Approve the tests and correction measures, which are needed for defects elimination, if they appeared during warranty period;
  • Carry out the role proactively to identify circumstances that might lead to delays in the progress of the Works and delays under the Design and Build Contract and propose to the Employer measures that can be taken to avoid or minimize any such delays;
  • Prepare consolidated monthly progress reports for both contracts (report form will be agreed);
  • Technical supervision of construction of technically and technologically complex facilities in accordance with the laws and regulations of the Republic of Kazakhstan;
  • Monitor and manage overall project implementation;
  • Prepare regular progress reports on the project.

Status of Selection Process: interested parties or groups of firms are hereby invited to submit expressions of interest.

Assignment expected Start Date and Duration: the assignment is expected to start in second half of 2018 and has an estimated overall duration of about 38 months to cover the completion of both the Design and Build and Mining contracts (full time). The Client also plans to engage the Consultants for follow up 24 months during Defects Notification Period (part time).

The Contract may be extended depending on the needs of the Project and as agreed between the Client and the Consultants subject to approval by EBRD.

Estimated Consultants’ inputs: about 500 man-months

Funding Source: through EBRD loan proceeds and own funds of the Client

Eligibility Restrictions: the consultancy contract will be open to firms from any country. The proceeds of the Bank’s loan will not be used for the purpose of any payment to persons or entities, of for any import of goods, if such payment or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations or under a law of official regulation of the Purchaser’s country.

Consultant Profile:

the shortlist criteria for a firm or a group of firms are as follow:

  1. firm’s previous project experience in project management of mine development and construction of processing industrial facilities on deposits of non-ferrous metals or precious metals – 60%;
  2. firm’s previous experience of provision of works supervision engineering services for technically and technologically complex facilities under FIDIC based contracts – 20%;
  3. experience of the proposed key experts possesses – 10%
  4. experience of the works supervision engineering services in FSU countries — 10%;

Since performance of technical supervision services imply possession of corresponding accreditation in accordance with requirements of the laws of the Client’s country, Consultants shall possess (or, in case they do not possess, obtain by the time of the submission of the proposals) the required accreditation. Alternatively, they may consider partnering with a firm possessing such accreditation for the assignment. In this regard, Consultants may associate form a consortium/joint venture to enhance their qualifications and submit their preliminary consortium agreement clearly indicating the leading partner.

Key Experts:

The following experts are considered as Key Experts and are expected to be presented within the Engineer’s team:

  • Project manager;
  • Construction group manager;
  • Technical supervision group manager;
  • Engineering group manager;
  • Supply group manager;
  • Mining engineer;
  • Processing engineer;
  • HSES engineer;
  • Planning engineer.

Please note that in accordance with the requirements of laws of the Republic of Kazakhstan, the technical supervision staff should possess all necessary certificates to be allowed to perform technical supervision of construction of the facilities of the required category. Therefore, the respective staff, who will be named in the proposal shall possess (or, in case they do not possess, obtain by the time of the submission of the proposals) the required certificates.

Submission Requirements: In order to determine the capability and experience of Consultants seeking to be shortlisted, the information submitted should include the following:

In order to determine the capability and experience of consulting firms seeking to be short listed, the information submitted should include the following:

Company Profile:

The determination of the brief description of past history and current organization and management will provide an assessment whether the consultant will be able to cover the needs of the project and would the ownership structure – preferably completely independent with clear communication lines – give any potential conflicts of interest that could influence the project.

Experience in Similar Projects:

Recent experience – last 10 years – from similar projects will be determined to assess the qualification of the consultant in the field of the assignment. The consultant must show experience in handling similar projects and that the knowledge in all technical fields required is available inside his organization. In assessing the technical competence of consultants the number of projects on which the consultants have been engaged is important, as well as the level of responsibility commensurate with the requirements of the assignment.

Regional Experience:

The extent of local and regional experience on similar projects is a measure of how closely the consultants’ experience matches the proposed consultancy services. A good match of regional experience enables the consultant to confidently execute the services with dispatch, since the initial familiarization period can be reduced. Therefore, cooperation with regional consultants is encouraged. Past experience in co-operation with regional consultants or implementing tasks similar to the assignment in the country is an asset.

Relevant staff CVs:

The personnel proposed at the professional level will illustrate the key staff capability of the consultant for handling the Project.

Quality Assurance:

To demonstrate the consultant’s capability to fulfil his obligations on the highest level of standard, he should give a short approach for his quality assurance measures for this project, which adequacy will be assessed.

The above information should not exceed 30 pages including CVs of key personnel.

Completed Consultant Declaration Form and Contact Sheet, the template for which is available from the following web-link:

http://www.ebrd.com/pages/workingwithus/procurement/notices/csu/contact_sheet.doc

One original, one hard copy and one electronic copy of the expression of interest, in English language, shall be submitted to the Client in an envelope marked “EXPRESSION OF INTEREST for “Owner’s Engineer for Shalkiya mine construction project”, to reach Clients Contact person, not later than July 3, 2018 at 12:00 hours (Almaty time)

Following this Invitation for Expression of Interest, short listed qualified firms will be formally invited to submit proposals.

Interested parties may obtain further information using the contacts below.

 

Contact Details:

Mr Anatoliy Ligay – Project Management Coordinator

ShalkiyaZinc LTD JSC,

Nurly Tau Business Center, Block 2a, office 903, Almaty, Kazakhstan, 050000,

Email: tender@zinc.kz

Phone: +7 727 311 14 15