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 Queries Regarding EOI / PQD

Question Number 1.

We would like to seek some clarification on maximum number of consortium members under article 4 (iii) which states; 

"If the FA’s are a Consortium, there must be a Lead Advisor appointed through a Power of Attorney executed by all other Consortium members but such Consortium is limited to maximum of 4 members only. One member of the Consortium may submit only one bid and if one member submits more than one bid, PPB shall reject all such bids”

For this project, we are forming a consortium where we would like to come as “Financial Evaluation Expert” while other members of our consortium would comprise of a leading financial institution, financial accounting firm, legal firm and a technical firm in accordance with article 6 of the PQD. This makes total number of firms to be five. 

I really appreciate your call in this regard on yesterday where you explained that the consortium can comprise of "one lead bidder and four experts”, therefore our proposed consortium of 5 members seems to be in accordance with PQD. In this regard, we understand that your legal advisor would also get in touch with us as per your instructions to provide a formal clarification so as we can communicate the same to our other consortium members.

 

Answer

In this regard you are advised to refer to Clause 3.3 of the PQD, whereby it is stated that a prospective bidder should be a Financial Institution or a Consortium to be led by a Financial Institution. It follows that Advisory Firms / Companies are not eligible to submit applications independent of a Financial Institution.

Kindly note that the terms “Consortium”, “Financial Institution” and “Lead Financial Advisor| are the defined terms in PQDs and should be construed accordingly.

As regard the limit of Consortium Member to 4, it is clarified that four Financial Institutions / Firms / Companies can form a Consortium in a combination of either; however, Financial Institution has to lead all the Firms / Companies.

The Evaluation Criteria given at Clause 6 of the PQD is collectively relevant to the experience of the Financial Institution / Advisory Firms / Companies and education of the Personnel (being natural persons).

It is reiterated that the PQD, can only be submitted by a Financial Institution or a Consortium, which must be led by a Financial Institution.

 


Question Number 2.

I am writing with reference to your EOI for the Financial Advisory Services for the Privatization of Quaid-e-Azam Solar Power. In this regard, can you please provide clarification on the following queries?

  • Can a consortium only include 4 firms (1 Financial , 1 Technical, 1 Accounting and 1 Legal firm) or can there be more than 4 firms, for example, 2 firms as Financial Experts, 1 Technical, 1 Accounting and 1 Legal Firm.
  • Can legal and accounting firms bid on non-exclusive basis i.e. can they bid with more than one consortium.

Answer.

Kindly note that the limit of Consortium Member is four and a Consortium cannot be formed of more than four persons. These four Financial Institutions / Firms / Companies can form a Consortium in a combination of either; however, Financial Institution has to lead all the Firms / Companies.

Under the PQD Clause 3.3, prospective bidder should be a Financial Institution or a Consortium to be led by a Financial Institution. It follows that Advisory Firms / Companies are not eligible to submit applications independent of a Financial Institution.

Kindly note that the terms “Consortium”,” Financial Institution” and “Lead Financial Advisor| are the defined terms in PQDs and should be construed accordingly.

 


Question Number 3.

Are Legal and Accounting firms allowed to bid/to be part of more than one consortium i.e. they are allowed to bid on non-exclusive basis?

Answer.

The advisory firms and companies are allowed to bid and form part of only with one Financial Institution. Even if a firm bids on non-exclusive basis then such firm and company cannot bid with any other bidder under the PPRA rule (36-A).

 


Question Number 4.

 XYZ has more than 220,000 professionals at member firms delivering services in audit, tax, consulting, financial advisory, risk management, and related services in more than 150 countries and territories. 

Specifically, XYZ Corporate Finance Limited (incorporated outside Pakistan) offers lead project finance transaction advice (associated or ancillary business). 

Please confirm that XYZ would be defined as a Financial Institution for purposes of this prequalification. 

Answer.

If XYZ transacts the business of banking or ancillary business in Pakistan through its branches within or outside the Pakistan under a license from relevant authority then XYZ may consider itself as a Financial Institution within the meaning of Financial Institution as defined in PQD.

 


Question Number 5.

XYZ has acted as lead adviser on a number of project finance transactions, having been awarded Financial Adviser of the Year 2015 by Partnership Awards.

In the event that a bank is required to form part of the Consortium, please confirm that XYZ can be designated as the Lead Financial Adviser.

Answer.

Refer to clause 3.3 of PQD which clearly states that only Financial Institution or Consortium led by a Financial Institution can submit the PQD. Only a Financial Institution can be designated as lead Financial Advisor

 


Question Number 6.

Typically, as lead adviser, we would appoint technical and legal advisers as sub-consultants rather than as a joint venture when forming a consortium. In this scenario please confirm that the contract would be between the Board and XYZ.

Answer.

If XYZ is a Financial Institution, then it can submit PQD along with other sub-consultants as required under the PQD, however the sub-consultants shall not be allowed to bid with any other Financial Institution. In case a financial institution submits the PQD individually, the contract shall be signed with the Financial Institution only.

 


Question Number 7.

What is meant by “Cost of the Assignment”? Does this refer to the capital value of the project?

Answer.

The cost of the assignment in the PQD means the capital value or volume of the project.

 


Question Number 8.

Please confirm the anticipated timeline for the assignment/transaction. 

Answer.

The timeline for the assignment/ transaction is 19-05-2016.  

 

 

 

 
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