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Nuclear Safety Cooperation

U4.01/03 - Procurement Support for TACIS Financed Decommissioning Facilities in Chernobyl NPP (Ukraine)

Status
Closed
Ukraine
Benefitting Zone
Eastern Europe
€ 3,101,278.60
EU Contribution
Contracted in 2005
TACIS
Programme
Technical Assistance to the Commonwealth of Independent States

Details

Type of activity

Mitigation of Chernobyl accident

Nature

Services

Contracting authority

European Commission

Method of Procurement

Direct Agreement & AV DA

Duration

13/07/2005 - 30/06/2009

Contractor

DEUTSCHE GESELLSCHAFT FUR INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH

Project / Budget year

TACIS 2003 - Nuclear Safety Action Programme / 2003

Background

In the framework of the preparation for the decommissioning of the Chernobyl Nuclear Power Plant (ChNPP) several facilities for radioactive waste treatment were to be built under the EC TACIS Programme in the vicinity of the Nuclear Power Plant, in particular:

  • A Retrieval Facility for Low Level and Intermediate Level Solid Waste,
  • A Sorting and Processing Facility for Low and Intermediate Level Solid Waste,
  • A Low and Intermediate Level (short-lived) Solid Waste Engineered Near Surface Disposal Facility.

These three facilities were to be procured as Lots 1, 2 and 3, respectively, of a single turnkey contract (see contract 1L10/99). The three facilities were collectively known as the 'Industrial Complex for Solid Radioactive-waste Management' (ICSRM). Later, a Lot 0 (Solid and Liquid Waste Storage (SLWS) building) was added to the scope of the turnkey contract.

The preparatory work required for the tendering and contracting of these facilities, which included studies, preparation of Technical Specifications, preparation of licensing documents, assistance to ChNPP, supervision of the contracting work, etc. would be done by the Beneficiary with support of an EU On-Site Assistance Team (OSAT, later called Project Management Unit - PMU), which was established and maintained through separate TACIS contracts (see contracts 24790, 24791 and 26400).

Some other related facilities at ChNPP, such as Liquid Waste Retrieval Plant, Liquid Waste Transfer Facility, Liquid Waste Cementation Plant and Interim Spent Fuel Store, as well as safety upgrades for Unit 3 were financed through a grant from the Nuclear Safety Account (NSA) managed by the European Bank for Reconstruction and Development (EBRD).

Objectives

The main objective of the present contract was to perform Procurement Agent (PA) services for the tendering and contracting of the ICSRM facilities, which were to be contracted on a turn-key basis with the following envisaged indicative budgets:

  • Solid Waste Retrieval Plant (7.5 MEURO),
  • Solid Waste Processing Plant (25.5 MEURO),
  • Near surface disposal facility (5.5 MEURO)
  • Solid and Liquid Waste Storage (SLWS) building (3 MEURO)
  • Other costs (5.5 MEURO).
  • Total indicative budget = 47 MEURO.

The main responsibilities of the PA were to:

  • Collect all information and documentation necessary for the tender file and prepare a procurement plan,
  • Check completeness of files and endorsements and prepare the tendering procedure in accordance with EC regulations and rules,
  • Organise tendering,
  • Organise the evaluation of bids and negotiate the contract,
  • Control and manage payments and administrative and contractual matters till the project is implemented and completed,
  • Ensure accounting and reporting to TACIS Contracting and to Beneficiary.
  • A close cooperation with the TACIS Project Management Unit (PMU) had to be established and maintained during the entire period of the project.

A Procurement Agent (PA) was responsible for managing the entire procurement procedure and carrying out the activities described below to ensure the necessary transparency of the procurement process.

  1. Collect information and prepare documentation necessary for tendering (Operational plan; draft Technical Specifications; proposals for a short-list of suppliers; statement of endorsement by the Ukrainian authorities).
  2. Procurement plan for the TACIS financed facilities:
    • establish and update the plan based on the planning prepared by the PMU,
    • timely informing of the EC and the parties involved on any changes of the plan, decisions to be taken,
    • ensuring that the procurement deadlines are being met.
  3. Verification of the Technical Specifications:
    • check the completeness of the Technical Specifications prepared by the PMU/Beneficiary,
    • check commercial neutrality of the Technical Specifications (establish the check-lists for verification and a list of eligible suppliers with information about their produced equipment, capabilities and restrictions).
  4. Preparation of the tender and tender dossier:
    • check and comment on the evaluation criteria, evaluation process and nominations for the tender evaluation committee proposed by PMU,
    • provide specific justification for all purchases for which a derogation from the open tender procedure is proposed by PMU,
    • prepare a short-list of the potential suppliers,
    • prepare tender and contract dossiers,
    • publicise invitations to tender,
    • distribute tender documents to the interested tenderers,
    • ensure further information/clarification to all the tenderers in consultation with the EC,
    • receive, register and store the tenders.
  5. Evaluation of bids:
    • organise and manage the tender opening session,
    • distribute documents to evaluators,
    • set up instructions for evaluators,
    • organise the evaluation session,
    • verify and comment on the evaluation report,
    • submit the report to the EC for approval,
    • present the tender results to the Beneficiaries.
  6. Preparation of the contract:
    • negotiate technical and financial issues of the contract based on the recommendations of the evaluation committee,
    • submit draft contract dossier to the EC,
    • ensure the correct and timely signature of the contract documents by the contracting parties (Ukrainian Beneficiary and Supplier) and their endorsement by the EC (for payment) and by the End User (for acceptance),
    • distribute the contract copies to the relevant parties.
  7. Contract monitoring:
    • agree with PMU and Ukrainian partners procedures for clarification of issues related to the contract implementation (responsibility for technical supervision of the manufacture and delivery of the equipment and systems of the facilities remains with the PMU),
    • issue specimens for payment statements, acceptance certificates, etc.
  8. Management and control of the contract implementation:
    • Maintain control over the correct and timely compliance with contract terms and conditions,
    • ensuring the appropriate coordination of delivery of the facilities/equipment,
    • keeping the contractual parties informed about any events that might affect the implementation of the Contract, including contractual disputes,
    • providing public relations assistance.
  9. Management of payments:
    • acting as a paying agent for the EC,
    • establishing, maintaining and administration of a special accounting system,
    • checking the statements of conformity issued by the Ukrainian Beneficiary/End User and Contractor,
    • checking invoices and supporting documents,
    • ensuring compliance with the contractual obligations and proper accounting,
    • effecting payment to the suppliers,
    • financial reporting to the EC,
    • informing the parties on the status of payments.

Results

The work was originally to be implemented through two contracts (25058 and 25062) due to the financing being shared between two annual programme budgets. An additional contract (contract 30350) was signed in November 2002 due to the need to finance agreed additional works of the ICSRM contract and to extend the duration of the PA services. A further contract (contract 102331) was signed in July 2005 to finance further agreed additional works and costs.

The present contract (102331) was signed on 13 July 2005. The contract was extended several times, due to delays in the completion of the ICSRM supply contract and was completed by 30 June 2009.

The PA discharged its duties in accordance with the contract. The contract expired on 30 June 2009, prior to the finalisation of the ICSRM turnkey contract.