A PUBLIC INVITATION

Based on the Article 6, paragraph 2 of the Decree on methods and terms for granting of concessions for use of agricultural land in property of the state (Official Journal RCG No. 18/04) and the Decree on methods and terms for granting of concessions for use of water for drinking, agriculture, industry, public utility and similar purposes (Official Journal RCG No. 32/03) the Ministry of Agriculture, Forestry and Water Management announces

A PUBLIC INVITATION

For international prequalification of investors interested in granting of concessions on use of the complex of agricultural land “Grahovo Polje” and accumulation lake “Grahovo” for irrigation of that land, in the Municipality of Niksic

I. The subject of the concession is:

1. Use of the complex of agricultural land “Grahovo Polje” KO Grahovo Polje – Municipality of Niksic, of the total area of 627,161 square meters, cadastre parcels No. 1, 2, 3, 4, 5, 6, and 7, detailed description presented in the Study – sketch of peg-marking, coordinates, boundary points of the boundary lines of the complex in the Directorate of the Real Estate, for production of agricultural products of organic agriculture in primary and processed forms;

2. Use of a part of the water for irrigation of the land in question from the accumulation lake “Grahovo” – Municipality of Niksic, in the basin of the Grahovska River, to the estimated quantity of up to 400,000 cubic meters of water per annum (irrigation period of 120 days – summer) yielding the precedence in use of water in compliance with the Law (for drinking and hygiene needs, etc.).

II. Prequalification documents

The information required, terms for granting of the concession as well as related rights and obligations of the concessionaire are defined by prequalification documents that include:

- Laws and regulations in force that lay down the subject in question;
- Proposal of the solution on establishing of water management conditions;
- Sketch of the “Grahovo Polje” complex;
- Form of the Notice on acceptance of terms as well as rights and obligations laid down by the prequalification documents.

III. Participators of the public invitation

The public invitation is open for all legal and natural, national and foreign persons.



IV. Contents of the Bid of interested investors

In addition to information and evidence stated under the Article 54 of the Law on participation of private sector in carrying out public services (Official Journal RCG No. 30/02), the Bid of interested investors includes the following data:

- Program on methods and terms for rational use of agricultural land stated as the concession subject (goals and purpose of the concession) with concession study on use of water for these purposes;
- Duration of the concession;
- Methods and terms for use of agricultural land;
- Fee for use of agricultural land (amount, payment dates and payment terms) and a special fee for use of water for the purposes stated;
- Total amount and sources of funds earmarked for financing of concession activities with dates these funds can be provided on and disbursement rate;
- Expected incomes and expenditures related to concession for the whole duration of the concession;
- Bank guarantee as a security of the bid at the amount of €4,000 with validity period until conclusion of the contract on concession;
- Proof that the registered capital of the investor is not lower than 25 per cent of the total investment;
- A signed Notice on acceptance of terms as well as rights and obligations laid down by the prequalification documents, bearing of expenses of connecting to and maintenance of the accumulation lake “Grahovo”, in compliance with the Law and on submitting of the bank guarantee for valid fulfilment of the contract on concession to the amount of €10,000 prior to conclusion of the contract;
- Names of persons in charge of submitting the bids and communication with the Ministry of Agriculture.

V. Public announcement of the invitation

The public invitation has been published in the Official Journal of RCG, daily newspaper “Pobjeda”, international newspapers and on the web site of this Ministry www.minpolj.vlada.cg.yu;

VI. Submitting of bids

Bids are to be submitted directly (in person) to the registry office of this Ministry in a closed envelope, with a full name of the interested investors written on it and with a note “for public invitation – do not open”, by January 15, 2005, 12:00 at the latest.

VII. Receipt of bids

The person in charge of receiving the bids is Julija Jaukovic, and in case of her absence Senka Raicevic, employees of this Ministry.

VIII. Opening of bids

The public opening of bids shall take place on January 15, 2005, at the premises of this Ministry, at 14:00.

IX. Criteria for selection and evaluation of bids

Criteria for selection and evaluation of bids are:

CRITERIA POINTS
Rate of rationality of use of the land (crop, specie, production volume, processing, etc.) and water 10 – 25
Amount of financial investment in the project 10 – 15
The extent to which the production is oriented to exports 5 – 15
Establishing of cooperation relations (number of cooperating members within the complex and the region) 0 – 10
Employment on the project (number of persons and qualification) 0 – 10
Amount of the special fee for use of water per cubic meter 0 – 10
Amount of the fee for use of land per hectare 0 - 15

The location shall be toured in presence of a representative of this Ministry, as agreed with interested representatives of the investor

X. Use of the official language

All the documents of the Ministry that relate to this public invitation are printed in the official language of Montenegro. In case the bids are presented in other languages, the investor is obliged to enclose the authorized translation in the official language in Montenegro. That translation shall be the main and shall be used for interpretation of information and evidence.

XI. Persons authorized to provide information

Persons in this Ministry in charge of providing further information relevant to the procedure of this public invitation are: Zorica Djuranovic, BSc Civil Eng., Phone number +381 81 482261 and Milan Markovic, PhD, Agronomist, Phone number +381 81 482107, and for providing information in English Zarko Vucinic, BSc Forestry Eng., Phone number +381 81 482383.

REPUBLIC OF MONTENEGRO
GOVERNMENT OF THE REPUBLIC OF MONTENEGRO
MINISTRY OF AGRICULTURE, FORESTRY AND WATER MANAGEMENT
Business Center Vektra - Podgorica