CRR (Central Ring Road), Startup Facility No. 1 : Bid Final Results

At the meeting held on April 29, 2014 the Bid Committee evaluated the results of the Open One-Stage Bidding Process for the Right to Enter into a Long-Term Investment Agreement for the Construction, Maintenance, Repair and Overhaul of Central Ring Road of Moscow Region, Startup Facility (Construction Stage) No. 1, Construction Section 1 (the First Construction Phase).

Three Expressions of Interest for participation in the Bidding Process were submitted:

1.       CJSC CROCUS INTERNATIONAL

In its Bid Proposal CJSC Crocus International proposed the following project implementation conditions under the Bid criteria (sub-criteria):

Cost of the Agreement Object Construction: 47,206,831,711.88, inclusive of VAT.

The Sum of Base Annual Operation Payments in the Operation Stage: RUB 6,125,884,700, excluding VAT.

Base Inflation Premium: 4,15%.

         Bidder’s Qualification: Work performance experience: RUB 3,999,871,710, excluding VAT, Soundness: RUB 6,244,582,000.

2.       Investment and Financial Construction Corporation ARKS LLC

In its Bid Proposal Investment and Financial Construction Corporation ARKS LLC proposed the following project implementation conditions under the Bid criteria (sub-criteria):

Cost of the Agreement Object Construction: RUB 51,073,495,619, inclusive of VAT.

The Sum of Base Annual Operation Payments  in the Operation Stage: RUB 5,991,412,000, excluding VAT.

Base Inflation Premium: 4,52%.

                        Bidder’s Qualification:  work performance experience: RUB 122,677,945,153.58, excluding VAT, Soundness: RUB 2,881,200,000.

3.       OOO Stroygazconsulting

In its Bid Proposal OOO Stroygazconsulting proposed the following project implementation conditions under the Bid criteria (sub-criteria):

Cost of the Agreement Object Construction: RUB 48,883,433,948.04, inclusive of VAT.

The Sum of Base Annual Operation Payments  in the Operation Stage: RUB 5,838,518,740, excluding VAT.

Base Inflation Premium: 1,5%.

          Bidder’s Qualification:  work performance experience: RUB 38,010,779,021.55, excluding VAT, Soundness: RUB 65,974,488,000.

CJSC CROCUS INTERNATIONAL Expression of Interest was declared non-compliant with the Bid Documentation in terms of company qualification. This criterion takes into account experience in Class 1 motorways construction. Its minimum value shall be RUB 16 bln.

The Expressions of Interest of Investment and Financial Construction Corporation ARKS LLC and OOO Stroygazconsulting were declared compliant with the Bid Documentation.

The Bid Committee declared OOO Stroygazconsulting the Winner by the results of evaluation and comparison of the Expressions of Interest.

Sergey Kelbakh, Chairman of the Bid Committee, Head of "RHW" SC invited all those present to give to the Bid Committee their comments on the procedure for taking decision on issues on the agenda. No comments were made.

The Bid Committee members made proposals to improve the bid procedures for "RHW" SC major investment projects. In particular, taking into account the reduced term for the Bid results evaluation (the Expressions of Interest shall be received until April 10, 2014, the results shall be evaluated not later than on April 30, 2014 in accordance with Instruction No. AD-P9-8937 dated December 12, 2013 issued by A.D. Dvorkovich, Deputy Prime Minister of the Russian Federation), when further procedures are carried out such time limits shall be provided for consideration and evaluation of the Expressions of Interest and Proposals that enable the Bid Committee and engaged experts to review the respective materials thoroughly, in detail and to the fullest extent possible.