The ‘Tender announcement” states the ‘scope of work’ of the Private Partners and it also states that this bidding is for 1st stage and there will be a 2nd stage. For the 1st stage bidding which is due on November. 2018, does bidder have to complete de

Answer: According to the III.3.1 of the announcement: “The participant must submit a technical proposal, in accordance with the requirements specified in the Terms of Reference, which is an annex to this announcement.” The Contracting authority does not require submission of detailed or basic design on stage 1 of the tender.

Is there any possibility of extension of bidding period?

Answer: The Law of the Republic of Kazakhstan "On PPP" does not limit the terms for holding the 1st stage of the competition, the organizer has determined 90 days, but with the case of unforeseen circumstances, the period of the first stage can be extended.

Is there any kind of alternative way or documents to supplant or reinforce PQ financial requirement?(In case of one of our participant company is not fulfilling the financial requirement)

Answer: In the event that the consortium as one whole participant does not meet the qualification requirements, the consortium is deprived of the right to participate in the 2nd stage.

If we are participating in form of consortium, does every participating companies have to meet the financial capability requirement of pre-qualification individually? Or do you consider consortium as a one whole participant?

Answer: in the case of a company's participation as a consortium, we consider consortium as a one whole participant and evaluate total assets and other indicators. But information should be presented in respect of each participating company. 

Is there any possibility of increase of the total cost? Or total investment?

Answer: We consider that after submission of technical proposals by potential private partner, this issue will be resolved by the organizer through a competitive dialogue.

Do you have basis of calculation for the estimated cost of infrastructure part suggested In the tender announcement information?

Answer: The total amount of the project is based on the feasibility study of the project and the project's investment proposal. Amounts are set taking into account 2017 year cost data.

Will private partner take any demand/revenue risk or not?

Answer: Public partner will take passenger transportation demand risks. Based on the revenues, public partner will pay management fee. For example, predicted demand is 1000 passengers per day, but actual demand is less, so public partner will pay management fee as difference between revenues and costs, in order to cover real operating costs.

So, Traffic revenue is received by Akimat and used as compensation for the Private partner. Availability payment is calculated including traffic revenue and in amount sufficient to cover operating costs of the Private partner (after Year 10 of the project) given the projected passenger flow, inflation and exchange rate.

Can you explain Tender dialogue?

Answer: Tender dialogue (in other words competitive dialogue) is fully described in Order 725 of the MNE RK "On some issues of planning and implementation of public-private partnership projects", Paragraph 7, 122 (5). It is part of the first stage of the tender. The duration of the 1 stage  includes the submission of the technical proposal, then akimat takes 5 days to check compliance with the qualification requirements, and then starts tender dialogue (where also we accept comments for further tender documentations based on the technical proposals). After all, akimat announces short list of potential private partners that allowed to participate in the 2 stage of tender.

"Параграф 7. Особенности проведения конкурса по определению частного партнера с использованием двухэтапных процедур

122. Первый этап конкурса по определению частного партнера с использованием двухэтапных процедур является предварительным этапом двухэтапных конкурсных процедур для сбора технических предложений потенциальных частных партнеров, который предусматривает:

      5) рассмотрение организатором конкурса технических предложений и обсуждение с потенциальными частными партнерами вопросов, касающихся технико-экономических и эксплуатационных характеристик объекта ГЧП и условий проекта договора ГЧП.

На данном этапе организатором конкурса в случае необходимости формирования оптимальных решений по финансовым, юридическим и иным параметрам проекта ГЧП, с учетом потребностей и возможностей каждого из заинтересованных потенциальных частных партнеров организуется конкурентный диалог.

Результаты конкурентного диалога оформляются протоколом.

Все участники конкурентного диалога соблюдают конфиденциальность информации, полученной в ходе его проведения"

Depreciation Period and Tax Treatment. If all or major compensation by availability payments allocated within 10 years, what will be the deprecation period for asset and period of deductible tax depreciation?

Answer: Current scenario forecast assumes 20 years of use for financial accounting depreciation and standard depreciation rates for tax depreciation.

Transfer of Asset. If all or major compensation by availability payments allocated within 10 years, what will be the timing of asset transfer from private partner to public partner? Is it still by the end of concession period?

Answer: The forecast assumes no change of the Private partner’s property value after the 10th year.

Availability Payment Composition. For the NPV calculation, a figure of 7.61% is used which we assume as discount rate. Could you advise us what is the source of this discount rate? Which method is used to calculate it?

Answer: The figure is an average yield of Kazakhstan government bonds in June 2018.

Availability Payment Composition. Are FX risk and inflation risk for management fee shall be taken by private investor?

Page 15 of Doc “Information about the project “Construction of the LRT in Almaty” also refers that management fee is 38.8 bl Tenge “with the minus of fare”. What does it mean? What is the link between management fee and fare?

Note: Tender announcement states that “The project will be purely based on availability. Traffic revenue will be collected by the Public Partner...”

Answer: The fare / traffic revenue is received by Akimat, hence its net costs amount to gross costs minus traffic revenue. However, gross costs include full management fee for the Private partner.

Evaluation Mechanism. What will be the methodology of evaluation? Does bidder have to submit its compensation expectation for each of 3 items of the availability payment separately?

First stage consists of acceptance of technical proposals and evaluation of bidder based on qualification requirements. Second stage consists of evaluation of technical and financial proposals. Bidder has to submit all financial aspects (including compensation expectations) at the second stage of the tender. 

Compensation of OPEX and Management Fee shall be after 10th year until the end of concession period. However, all compensation shall be completed within 10th year. (although Management Fee shall be paid to private partner after 10 years) Could you ple

Answer: Management fee will decrease after the 10th year to the amount of traffic revenue.

Availability Payment Composition. What will be the ratio of Euro and Tenge base payments in the sum of availability payments?

Answer: Total euro payments for operating and investment costs amount to approximately 40% of the availability payment under the current scenario.

Availability Payment Composition. EY had mentioned that management fee will be based on Tenge and CAPEX and OPEX compensation will be combination of Euro and Tenge. As there is nothing mentioned about this issue in tender documents, could you please cl

Answer: Linkage to another hard currency will be resolved during the tender dialog. For now payments are predicted using projected FX rates.

What is the total length of the LRT line and on what streets will it pass?

Answer: Route with a total length of 22.72 km has two lines. The first line will pass from Depot in the south direction along Momyshuly street, then in the east direction along Tole Bi street, in north along Panfilov street, in the east direction along Makatayev street, and finally in the north direction along Zhetysuskaya street until the turn ring; and the second line runs from Depot in a southerly direction along Momyshuly street, then in the west direction along Tole Bi street, in the northern direction along Yassaui street, and again in the western direction along Raiymbek avenue to the intersection with Ashimov street.

How will the project be implemented?

Answer: The project will be implemented through public-private partnership, life cycle contract. Detailed information on PPP structure is presented in the tab “About project”.

Term of the project?

Answer: 1 year - design and estimate documentation, 3 years - construction and installation work (parallel work is meant for a faster construction period).

How many stops? Interval between trains?

Answer: 37 stops with interval between trams for 4 minutes maximum.

Why did they take it for the tram service?

Answer: LRT has advantages that distinguish it among other types of public transport:

• Modern ecological urban public transport

• An exclusive line, excluding the movement of other transports along the line and takes precedence at intersections

• Movable compositions are low-floor, characterized by high speed and increased comfort. Low planting is carried out by transferring all electrical equipment to the roof.

Considering the projected route of LRT, we can give substantial arguments to the fact that LRT will be the optimal solution in the following circumstances:

• Demand is estimated at 50-100 thousand passengers daily, which is not enough to create a metro, but it is suitable for LRT (According to the requirements of SN RK 3.03-04-2011 from 10,000 to 25,000 passengers per hour)

• The route runs through a fairly wide highway so that one lane for cars / buses is allocated for LRT.

• The street will be newly landscaped.

• In many cases, LRT provides a faster solution to traffic management due to easy access / exit and easy connection to other modes of transport (driving bus routes, bike paths, access roads, pedestrian paths).

Do you have plans to develop (expand) the tram network?

Answer: The project does not include any plans to expand the LRT line, however, the possibility for the expansion is considered in the feasibility study.