Public Joint Stock Company Odessa Port Plant (hereinafter as PJSC OPP) announces Selection Process of the Company to conclude Tolling Contract on natural gas processing into ammonia and urea.
We propose to Interest Companies to send their Offers, including submission of compliance with compulsory requirements concerning toll NG processing, to PJSC OPP e-mail: email@example.com no later than 2:00 p.m. (GMT+3) on September 21, 2018. In case there is necessity to hold preliminary negotiations, working meetings can be organized at PJSC OPP during working days from 10:00 a.m. till 3:00 p.m. (GMT+3) before September, 21, 2018. If you have questions concerning negotiation timing and other organizational issues, we kindly ask you to contact us in advance at: firstname.lastname@example.org; email@example.com.
Our compulsory requirements in order to be selected are as follows:
1. Interest Companies Offer shall include all requested information, otherwise explanation of its absence, and also shall be in compliance with the following requirements:
1.1 Validity period of Tolling Contract on NG processing shall be 6 months with an option to Contract prolongation.
1.2 Toll NG Supplier shall provide confirmation of ability to supply the natural gas in the volume of up to 60 mln. cubic meters (but not less than 48 mln. cubic meters) per month (on the basis of the whole operation month) beginning from October, 2018, with indication of monthly natural gas volumes for the whole period of Contract validity. At the same time Supplier shall act as Customer of transportation services and provide the valid Agreement with PJSC UKRTRANSGAZ for transportation of natural gas (toll) to PJSC OPP (Gas distribution station OPP Vizirka). Besides, toll NG Supplier shall confirm availability and/or possibility to supply gas with indication of its origin (underground gas storage facilities, own gas production, import contract and so on). Every month, before the month of delivery, toll NG Supplier shall make nomination and provide entering on balance sheet of PJSC UKRTRANSGAZ in the volume planned to be delivered in the delivery month.
1.3 Toll NG Supplier shall reimburse in full transportation of toll natural gas by main and distributing pipelines (PJSC UKRTRANSGAZ, PJSC Odessagaz) up to PJSC OPP gate valve. Herewith, payment of an advance for transportation of toll natural gas from NG delivery point to PJSC OPP gate valve shall be a key term of Tolling Contract; the amount of the advance payment shall be not less than 80% of monthly service cost on transportation of toll natural gas.
1.4 Interest Company Offer shall include ammonia and urea processing service rates as well as sea vessel and vehicle shipment (in bulk) service rates without taking into account transportation cost of toll natural gas to PJSC OPP. Natural gas processing rates suggested by Interest Companies shall exceed toll processing service rates as well as sea vessel and vehicle shipment (in bulk) service rates of Produced Goods (in bulk), namely ammonia – 32.0 USD/t (excluding VAT), urea – 44.0 USD/t (excluding VAT).
1.5 When selecting winner, submission of performance security by toll NG Supplier under submitted Offer in the form of Bank Guarantee or standby L/C valid for the whole period of Contract validity including compensation for toll NG transportation costs in case, if PJSC OPP performs service payment of toll NG transportation, shall be considered as an additional advantage.
1.6. Along with the Offer, a potential Supplier shall provide the following documents and information:- copy of Company Charter;
- copy of VAT payer certificate (if any);
- extract from Unified State Register (for the resident) or adequate extract from the register for nonresident as of the date of the Offer;
- documents confirming authority to sign the Contract;
- financial accountability (form No 1 «Balance (Statement of financial position)», form No 2 « Financial results report (Statement of comprehensive income)» and other similar forms of financial reports for nonresidents;
- following information in free form: а) Evidence of having experience of operating at ammonia and urea markets (sales for the last three years) duly signed by the head of the Company or authorized person (copies of documents confirming such authority to be provided), b) Evidence of having experience in natural gas supply (scope of supply for the last three years) duly signed by the head of the Company or authorized person (copies of documents confirming such authority to be provided) c) Evidence of having experience of operating the toll stock duly signed by the head of the Company or authorized person (copies of documents confirming such authority to be provided).
2. By submitting the Offer the interest Company confirms its consent to the following key terms of the Contract on natural gas processing (given list of compulsory terms is not limiting):- Supplier of toll natural gas shall provide financing and delivery of natural gas for the startup on the basis of approximately 3 mln. m3 for the startup of one ammonia unit. Supplier of toll natural gas shall also provide financing of other expenditures for the startup of production facilities in the amount of not less than USD 0.6 mln, and the payment should be effected within three working days from the signing date of Tolling Contract on natural gas processing into ammonia and urea.
In case the ammonia production is stopped during tolling contract execution, and OPP is not liable for the shutdown, the toll NG Supplier shall provide at his own expense natural gas required for the startup operation on the basis of approximately 3 mln. m3 for the startup of one ammonia unit, as well as financing of other expenditures for the startup of production facilities in the amount not less than USD 0.6 mln.
- Toll NG Supplier shall ensure the pickup of produced goods from PJSC OPP storages in the minimum amount of 80% of monthly ammonia and urea production. In case the supplier fails to pick up the produced goods in time the storage fee shall be charged in the following amount: USD 0.42 (incl. VAT) for 1 ton of ammonia per day, USD 0.06 (incl. VAT) for 1 ton of urea per day, as well as penalty in the amount of 5% of hypothecation value of the goods not picked up in time.
- Advance payment for toll processing service in the minimum amount of 70% of monthly total service cost including processing rates proposed by NG Supplier shall be compulsory term of the Tolling Contract.
- Supplying of natural gas to load OPP production facilities for at least six months period shall be compulsory term of the Tolling Contract.
- Submission by participating Company of information regarding the monthly planned volumes of produced goods shipment till the Contract completion shall be compulsory term of the Tolling Contract.
2.1. Draft Contract on NG processing and produced goods shipment shall be provided to the interest Companies on their request.
3. In accordance with Anticorruption Program of PJSC OPP”, and with a view to reveal the possible external corruption risks in the activities of potential counterparties (Suppliers of toll natural gas), the authorized representatives of PJSC OPP shall check the Companies which have submitted their Offers according to given terms with respect to the conformity of information submitted. The inspection results shall be taken into account when deciding on the Selection Process winner.
4. The Selection Process participant Offers subject to compliance with the a.m. terms shall be assessed on the basis of the following criteria:- processing service rates;
- submission of performance security under submitted Offer according to p. 1.5 of the present requirements.
Score of each Offer shall be defined in total. All Offers assessed according to the assessment criteria shall be listed in ascending total score order.
4.1. Assessment procedure.
4.1.1. The score according to the criterion "Processing service rates" shall be calculated by the following formula:Б=(ТАcalc/ТАmin *0,3+ ТКcalc/ТКmin *0,7)*85, where:
Б – calculated score;
ТАcalc – rates of the Offer on ammonia;
ТАmin – minimal rates on ammonia as per Selection Process requirements;
0,3 – index of ammonia price factor;
ТКcalc - rates of the Offer on urea;
ТКmin – minimal rates on urea as per Selection Process requirements;
0,7 – index of urea price factor;
85 – criterion weight
4.1.2 The score according to the criterion “Submission of performance security under the submitted Offer” shall be calculated on the basis of availability of confirming documents; and when such documents are available, the Selection Process participant shall be awarded 15 points.
5. The win shall be awarded to the participant who has confirmed the fulfillment of compulsory requirements, submitted the required information, and got the maximum score.
In case final scores are equal, PJSC OPP Members of Board shall hold a vote. In case votes on each side are equal, the casting vote shall be given to the Chairman of the Board – Director of PJSC OPP or to the person who exercises his functions.
6. PJSC OPP reserves the right to cancel the Selection Process and undertakes to inform about such cancellation in the same way as the Selection Process was announced.
7. Offers are accepted until 2 p.m. (GMT +3) on September 21, 2018. The best Offer and the Selection Process winner shall be elected at 6 p.m. (GMT +3) on September 21, 2018 at PJSC OPP.14.09.2018