BISNIS Trades & Tenders, December 14, 1998

BISNIS Trades & Tenders, December 14, 1998 - Part 1

International Copyright, U.S. & Foreign Commercial Service and U.S. Department of State, 1997. All rights reserved outside of the United States. The Business Information Service for the Newly Independent States (BISNIS) is the U.S. Department of Commerce's information clearinghouse on trade and investment in the emerging markets of the newly independent states of the former Soviet Union. BISNIS has created the "BISNIS Trades & Tenders" electronic newsletter to help U.S.. companies find business opportunities in these expanding markets.

These opportunities are provided solely as an informational service and do not represent an endorsement by the U.S. Department of Commerce. Verification of leads is the responsibility of the reader. BISNIS may consider other private sector-generated trade leads and tenders, in electronic form only, and publish on a space-available basis. Please send your leads to bisnis@ita.doc.gov. A full selection of BISNIS leads and other market intelligence is available via BISNIS OnLine at: www.mac.doc.gov/BISNIS
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INDEX OF LEADS:
LEAD #1: TENDER - GEORGIA - MAGANESE FACTORY
LEAD #2: TENDER - MOLDOVA- CHEMICAL PLANT
LEAD #3: TENDER - MOLDOVA- WATER REHABILITATION
LEAD #4: TENDER - MOLDOVA- COSMETICS ENTERPRISE
LEAD #5: TENDER - MOLODVA - FOOTWEAR ENTERPRISE
LEAD #6: TENDER - TURKMENISTAN- TURKMENBASHI SEAPORT REHABILITATION
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TENDER ANNOUNCEMENT
The Ministry of State Property Management announces Commercial Tender in order to sell the controlling block of shares (83,250,000 shares, 75% of the charter capital) of the Joint Stock Company "CHIATURMANGANUMI (Manganese Producing Factory) with the symbolic initial price of USD 20,000 equivalent in the national currency (USD1=1.45 Lari).

In this Tender can participate:
All local and foreign natural persons or legal entities which have less
than 25% of the Georgian state or municipal participation in the charter
capital.
Information on the JSC:
Address of the JSC "CHIATURMANGANUMI" is Town of Chiatura, Georgia.
Charter Capital of the JSC amounts USD 111,000,000. Nominal price for 1
share amounts USD 1equivalent in Lari.
Terms of Tender:
The winner, after obtaining ownership rights must:
1. Invest USD 30 million (including reinvestment) equivalent in Lari in
first ten years, including investments no less then USD 6 (3+3) million
equivalent in Lari in the first and second year and no less than USD 15
million equivalent in Lari in the first five years.
2. Regulate all issues regarding bad debts of the enterprise (up to
Jan10,1998 it amounted 15,065 thousand Lari).
3. Produce and sell Manganese Concentrates annually no less than 50,000
tons in the first year, no less than 100,000 tons from the second year
and no less than 150,000 tons from the fifth year.
4. Participate in the development of the social-economic situation of
the region.
5. Fulfill all requirements outlined in the license on the usage of the
natural resources.
* It is prohibited for the buyer to sell the whole package or part of
the shares also to use a physical plant of the enterprise as a
collateral, before carrying out of the investment program without the
approval of the Ministry of State Property Management.
* Minimum 70% of the enterprise personal must be employed for 5 years.

The Potential winner must propose the maximal price.
The winner must provide payment of the final selling price during the
first 30 days after the signing of the purchase contract.
Interested legal entities and natural persons can obtain all other
information directly in the joint stock company, free of charge.
The tender commission will receive bids and other documentation from
November 24, 1998 until March 25, 1999 (including), 5 p.m. The tender
will be held and the sealed envelopes will be opened on the next working
day from the closing day at 12 p.m. on the following address: 64
Chavchavadze Ave. Tbilisi, Georgia, Ministry of the State Property
Management.
An advance deposit payment is defined by the 100% of the symbolic
initial price - USD 20,000 equivalent in Lari.
The buyer must carry out all the tender terms and provide information on
its' fulfillment the Ministry of State Property management every 6
month.
In case of non-fulfillment of the terms of tender, the buyer will
receive warning in written form and will be liable to pay 10% of the
final price (set by tender) in favor of the State budget.
If the buyer fails a second time to take corrective action required to
fulfill the terms of the tender he/she will lose ownership rights on the
package of shares and also already paid money.
For the tender participation the bidder must present the following to
the commission:
Proposals on the fulfillment of the terms of tender offered by the
commission;
Legal entity supported by the regulatory documents, natural person
supported by the passport (ID)
A document confirming advance deposit payment of USD 20,000 equivalent
in Lari , which must be transferred on the Ministry of State Property
Management account in the National Bank of Georgia. Account #
141144212, code 220101107.
The tender application will be placed into a special envelop and sealed
by the bidder or in his presence. The bidder will be nominated as the
tender participant after receiving the tender certificate.
For the additional information please contact the Ministry of State
Property Management:
Tel.: (995 32) 29 28 33
Fax: (995 32) 29 30 65
**************************************************************

SUBJECT: IMI: INVESTMENT TENDER ON FAPROCHIM
I. SUMMARY
THE DEPARTMENT OF PRIVATIZATION AND STATE PROPERTY
ADMINISTRATION OF THE REPUBLIC OF MOLDOVA
ANNOUNCES THE INVESTMENT TENDER FOR CASH SALE OF
PUBLIC PROPERTY. THE DEPARTMENT OFFERS ITS
CONTROLLING PORTFOLIO IN THE ENTERPRISE. BELOW IS
INFORMATION ON FAPROCHIM, A MOLDOVAN JOINT-STOCK
COMPANY TO BE TENDERED.
II. GENERAL INFORMATION
FAPROCHIM S.A. WAS ESTABLISHED IN EARLY 90-S AFTER
THE REORGANIZATION PROCESS OF THE SOVIET CHISINAU
CHEMISTRY PLANT, A PROMINENT ENTERPRISE SAID TO BE
OF ALL-USSR IMPORTANCE.' IT USED TO BE ONE OF
THE BIGGEST PRODUCERS OF DETERGENTS, PAINTS, AND
VARNISHES IN MOLDOVA AND IN THE FORMER USSR. THE
ANNUAL PRODUCTION CAPACITY OF FAPROCHIM IS 10
THOUSAND TONS OF DETERGENTS AND 2 THOUSAND TONS OF
PAINTS AND VARNISHES. HOWEVER, AT PRESENT THE
FACTORY IS FUNCTIONING AT ONLY 15-20 PERCENT OF
ITS CAPACITY. THE COMPANY'S ADMINISTRATION
INTENDS TO NEGOTIATE WITH THE GOVERNMENT TO SUPPLY
ITS PRODUCTS FOR THE ARMY, AND TO MEDICAL
ESTABLISHMENTS, KINDERGARTENS, AND SCHOOLS. THE
FACTORY HAS WAREHOUSES TO STORE RAW MATERIALS AND
AT PRESENT, FAPROCHIM HAS RAW MATERIALS TO
MANUFACTURE PRODUCTS WORTH 1 MILLION LEI. THE
FACTORY EMPLOYS SOME 200 PEOPLE.
FAPROCHIM EXPORTED ITS PRODUCTION MAINLY TO RUSSIA
AND BELARUS, BUT DUE TO HIGH RISK THE COMPANY
SUSPENDED ITS EXPORTS TO THESE COUNTRIES AND
INTENDS TO REDIRECT ITS EXPORTS TO THE WEST.
FAPROCHIM WORKS MAINLY FROM RAW MATERIALS IMPORTED
FROM RUSSIA, ROMANIA, ISRAEL, AUSTRIA, FRANCE,
BULGARIA, AND UKRAINE. THE MAJOR BUYER OF ITS
PRODUCTS IS THE LOCAL POPULATION. THE COMPANY HAS
ITS DISTRIBUTION NETWORKS THROUGHOUT MOLDOVA.
FAPROCHIM IS A JOINT STOCK COMPANY: 61.7 PERCENT
OF THE SHARES ARE HELD BY THE STATE, 14.6 PERCENT
BELONG TO THE FACTORY'S LABOR COLLECTIVE, 20.7
PERCENT TO VARIOUS MOLDOVAN INVESTMENT FUNDS, AND
3 PERCENT TO INDIVIDUALS.
THE GOVERNMENT OFFERS FOR SALE ITS 61.7 PERCENT OF
THE ENTERPRISE'S STATUTORY FUND, WHICH IS ABOUT
5.1 MILLION LEI (US$ 1.28 MILLION). FAPROCHIM'S
MAJOR GOALS ARE TO REDUCE THE PRODUCTION COST,
RAISE THE WORKING CAPITAL, TO RESCHEDULE DEBTS
TOWARDS THE MOLDOVAN CREDITING COMMITTEE, AND TO
MODERNIZE THE EQUIPMENT. THE GOVERNMENT AGENCY
FOR RESTRUCTURING OF ENTERPRISES AND ASSISTANCE
(AREA) HAS DEVELOPED A REORGANIZATION PROJECT TO
HELP THE COMPANY TO FULFILL THE GOALS. THE
PROJECT IMPLEMENTATION WILL RESULT IN BETTER
CONTROL OVER THE COMPANY'S EXPENDITURES AND
COLLECTIONS. TO RAISE THE WORKING CAPITAL,
FAPROCHIM INTENDS TO SELL A PART OF ITS PRODUCTION
PREMISES AND WAREHOUSES.
III. CONTACT INFORMATION:
FOR FURTHER INFORMATION PLEASE CONTACT:
VASILII VASILIEV
GENERAL DIRECTOR
FAPROCHIM
STR. TRANSNISTRIA, #6
CHISINAU, MOLDOVA
TEL: [3732] 372188, 372164
FAX: [3732] 372331
******************************************************************
SUBJECT: INTERNATIONAL MARKET INSIGHT (IMI): PROCUREMENT
OPPORTUNITIES, DECEMBER 1998, MOLDOVA, CHISINAU WATER SERVICES
REHABILITATION PROJECT.
SUMMARY: THIS CABLE ANNOUNCES A TENDER FOR AN APPROVED EBRD
FUNDED PUBLIC SECTOR AND TECHNICAL ASSISTANCE PROJECT IN
MOLDOVA, CHISINAU WATER SERVICES REHABILITATION PROJECT -
CONTRACT 5 - MAINS METERING AND PUMPING CONTROL (COUNTRY
HERE). END SUMMARY.
NOTE: COMPLETE CONTACT INFORMATION PROVIDED AT END OF REPORT.

MOLDOVA
CHISINAU WATER SERVICES REHABILITATION PROJECT
CONTRACT 5 - MAINS METERING AND PUMPING CONTROL
INVITATION FOR TENDERS
THIS INVITATION FOR TENDERS FOLLOWS THE GENERAL PROCUREMENT
NOTICE FOR THIS PROJECT WHICH WAS PUBLISHED IN PROCUREMENT
OPPORTUNITIES NUMBER 77 DATED SEPTEMBER 1998.
S. A. APA CANAL CHISINAU (FORMERLY KNOWN AS THE REGIA APA-
CANAL, CHISINAU), HEREINAFTER REFERRED TO AS "THE EMPLOYER",
INTENDS USING PART OF THE PROCEEDS OF A LOAN FROM THE EUROPEAN
BANK FOR RECONSTRUCTION AND DEVELOPMENT (THE BANK) TOWARDS THE
COST OF THE MAINS METERING AND PUMPING CONTROL EQUIPMENT.
THE EMPLOYER NOW INVITES SEALED TENDERS FROM CONTRACTORS FOR
THE FOLLOWING CONTRACT TO BE FUNDED FROM PART OF THE PROCEEDS
OF THE LOAN:
SUPPLY AND INSTALLATION OF 112 WATER METERS AND 238 PRESSURE
METERS AT 12 PUMPING STATIONS IN CHISINAU AS WELL 47 LEVEL
METERS FOR SERVICE RESERVOIRS. ALL METERS ARE TO BE SUPPLIED
WITH LOCAL CONTROL PANELS.
TENDERING FOR CONTRACTS TO BE FINANCED WITH THE PROCEEDS OF A
LOAN FROM THE BANK IS OPEN TO FIRMS FROM ANY COUNTRY.
TENDER DOCUMENTS MAY BE OBTAINED FROM THE OFFICE AT THE
ADDRESS BELOW UPON PAYMENT OF A NON-REFUNDABLE FEE OF US$ 100
OR EQUIVALENT IN A CONVERTIBLE CURRENCY. PAYMENTS CAN BE MADE
EITHER DIRECTLY TO THE EMPLOYER OR BY BANK TRANSFER TO:
BCA BANCA SOCIALA VIA:
CHISINAU, MOLDOVA THE BANK OF NEW YORK
SWIFT: BSOCMD2X NEW YORK, USA SWIFT: IRVTUS3N
ACCOUNT: 890-0068-027 IN FAVOUR OF APA CANAL CHISINAU
ACCOUNT NO. 840070920
WITH ADVICE TO THE EMPLOYER QUOTING CONTRACT 5 - MAINS
METERING AND PUMPING CONTROL. IF REQUESTED, THE DOCUMENTS
WILL BE PROMPTLY DESPATCHED BY COURIER, BUT NO LIABILITY CAN
BE ACCEPTED FOR LOSS OR LATE DELIVERY.
ONLY PARTIES THAT PURCHASE THE TENDER DOCUMENTS WILL BE
CONSIDERED ELIGIBLE TO SUBMIT TENDERS.
TENDERS.
ALL TENDERS MUST BE ACCOMPANIED BY A TENDER SECURITY OF USD
35,000 OR ITS EQUIVALENT IN A CONVERTIBLE CURRENCY.
TENDERS MUST BE DELIVERED TO THE OFFICE AT THE ADDRESS BELOW
ON OR BEFORE 12 NOON ON
1 FEBRUARY 1999 AT WHICH TIME THEY WILL BE OPENED IN THE
PRESENCE OF THOSE TENDERERS' REPRESENTATIVES WHO CHOOSE TO
ATTEND.
A REGISTER OF POTENTIAL TENDERERS WHO HAVE PURCHASED THE
TENDER DOCUMENTS MAY BE INSPECTED AT THE ADDRESS BELOW.
PROSPECTIVE TENDERERS MAY OBTAIN FURTHER INFORMATION FROM, AND
INSPECT AND ACQUIRE THE TENDER DOCUMENTS AT THE FOLLOWING
OFFICE:

MS. RAISA CECAN
ALBISOARA 38
CHISINAU
MD- 2005 MOLDOVA
TEL: + 373 2 24 17 19
FAX: + 373 2 24 36 93
-------------------------------------------------------------
NOTE: SUBSCRIPTION INFORMATION FOR EUROPEAN BANK FOR
RECONSTRUCTION AND DEVELOPMENT BANK (EBRD) PROCUREMENT
OPPORTUNITIES AND AN UPDATED LIST OF EBRD PUBLICATIONS (AND
ORDER INFORMATION) MAY BE OBTAINED BY CONTACTING THE
FOLLOWING: EBRD SUBSCRIPTION DEPARTMENT, 82-84 PECKHAM RYE,
LONDON SE15 4HB UNITED KINGDOM, TEL: 44 171 639 0333, FAX: 44
171 358 9568. EMAIL ADDRESS: PROCOPPORSUB@COMPUSERVE.COM.
(EBRD WEBSITE: HTTP://WWW.EBRD.COM)
EBRD CONTACT IS GENE R. HARRIS, SENIOR COMMERCIAL OFFICER,
OFFICE OF THE U.S. EXECUTIVE DIRECTOR, EBRD, ONE EXCHANGE
SQUARE, LONDON, EC2A 2EH, UNITED KINGDOM.
TEL: 44-171-588-4027/28 OR 338-7490, FAX: 44-171-588-4026 OR
338-6487. EMAIL: MCKAINN@EBRD.COM.
*****************************************************************

I. SUMMARY
THE DEPARTMENT OF PRIVATIZATION AND STATE PROPERTY
ADMINISTRATION OF THE REPUBLIC OF MOLDOVA
ANNOUNCES THE INVESTMENT TENDER FOR CASH SALE OF
PUBLIC PROPERTY. THE DEPARTMENT OFFERS ITS
CONTROLLING PORTFOLIO IN THE VIORICA-COSMETICS
ENTERPRISE. BELOW IS INFORMATION ON VIORICA-COSMETICS, A MOLDOVAN
JOINT-STOCK COMPANY TO BE TENDERED.
II. GENERAL INFORMATION
VIORICA-COSMETICS, ESTABLISHED IN 1989, IS
INVOLVED IN THE PRODUCTION OF BEAUTY CARE
PRODUCTS, PERFUMES, DEODORANT, AND AROMATIC
SUBSTANCES. AFTER THE REORGANIZATION PROCESS, THE
COMPANY BECAME A JOINT VENTURE WHERE 96.216
PERCENT OF THE SHARES ARE HELD BY THE STATE AND
THE REMAINING BELONG TO INDIVIDUALS AND INVESTMENT
FUNDS. THE COMPANY IS LOCATED IN THE CAPITAL OF
MOLDOVA AND HAS A SIX-STORE MODERN BUILDING. THE
COMPANY HAS MODERN GERMAN PRODUCTION EQUIPMENT.
THE COMPANY USES ITS "VIORICA" TRADEMARK WHICH IS
VERY POPULAR IN THE NIS REGION AND IS KNOWN IN
SOME CENTRAL EUROPEAN COUNTRIES.
THE COMPANY HAS VERY EXPERIENCED PERSONNEL AND
TRAINED EXPERTS INVOLVED IN DEVELOPING NEW TYPES
OF PRODUCTS. IT HAS RESEARCH AND DEVELOPMENT,
QUALITY CONTROL, PERFUME, AND MICROBIOLOGICAL
LABORATORIES WELL-EQUIPPED AND WITH MODERN
TECHNOLOGY. VIORICA-COSMETICS ALSO PRODUCES
PACKAGING FOR ITS PRODUCTS.
THE COMPANY HAS MODERN STORAGE FOR RAW MATERIALS
AND READY PRODUCTS WHICH IS EQUIPPED WITH
AUTOMATIC LOADING AND COMPUTERIZED CONTROL
SYSTEMS. VIORICA-COSMETICS HAS ITS OWN FLEET
OF TRUCKS AND USES IT TO DISTRIBUTE ITS PRODUCTS
THROUGHOUT MOLDOVA. THE COMPANY HAS A
DISTRIBUTION NETWORK THROUGHOUT MOLDOVA.
IN 1997, THE COMPANY EMPLOYED 221 PEOPLE, DOWN
FROM 342 IN 1995. AFTER THE BREAK UP OF THE USSR
IN 1992, VIORICA-COSMETICS WAS IN A DIFFICULT
SITUATION SINCE A MAJOR PART OF ITS PRODUCTION WAS
EXPORTED TO THE USSR REPUBLICS. AS A RESULT OF A
NUMBER OF MEASURES TAKEN BY THE COMPANY'S
ADMINISTRATION, THE COMPANY HAS RESTORED ITS
PRODUCTION VOLUME. IN 1998, THE COMPANY'S
EXPERTS DEVELOPED 13 NEW TYPES OF PRODUCTS AND
INCREASED SALES BY 28 PERCENT.
THE COMPANY IS LOOKING FOR AN INVESTOR TO ASSIST
THE COMPANY'S MANAGEMENT TO RAISE PRODUCTION, TO
MARKET ITS PRODUCTS OUTSIDE MOLDOVA, TO DEVELOP
NEW TYPES OF PRODUCTS, AND TO EXPLORE NEW EXPORT
MARKETS.
III. TENDER INFORMATION:
1. THE TENDER BIDDERS CAN BE ANY LEGAL OR
PHYSICAL PERSON, MOLDOVAN OR FOREIGN. BIDDERS
HAVE THE RIGHT TO EXAMINE THE TENDER OBJECT AND TO
REQUIRE FROM THE TENDER COMMISSION ADDITIONAL
INFORMATION ON THE TENDERED COMPANY.
2. THE FOLLOWING DOCUMENTS ARE REQUIRED FROM THE
BIDDER TO TAKE PART IN THE TENDER:
- A TENDER BID;
- A COPY OF THE REGISTRATION CERTIFICATE ISSUED
NOT EARLIER THAN 3 MONTHS PRIOR TO THE TENDER
DOCUMENTS' SUBMISSION;
- A COPY OF THE BIDDER'S BY-LAWS;
- THE MOST RECENT FINANCIAL STATEMENT;
- A BANK CERTIFICATE ON THE TENDER FEE PAYMENT.
THE ORIGINALS OR THEIR CERTIFIED COPIES SHOULD BE
TRANSLATED INTO THE MOLDOVAN LANGUAGE, THE STATE
LANGUAGE OF MOLDOVA.
3. THE TENDER PARTICIPATION FEE IS 50,000 LEI
(US$ 6,850) TO BE PAID TO A BANK ACCOUNT OF THE
BANCA SOCIALA, A MOLDOVAN COMMERCIAL BANK LOCATED
IN MOLDOVA. THE FEE WILL BE REIMBURSED TO THE
BIDDERS NOT QUALIFIED FOR THE SECOND STAGE OF THE
TENDER OR DEDUCTED FROM THE TOTAL AMOUNT PAYABLE
FOR THE COMPANY'S SHARES FOR THE TENDER WINNER.
3. THE TENDER COMMISSION HAS THE FOLLOWING
CRITERIA FOR SELECTING THE TENDER WINNER:
- INVESTMENT COMMITMENTS AND THEIR SCHEDULE;
- COMMITMENTS TO THE ENTERPRISE DEVELOPMENT;
- PROPER ENVIRONMENT PROTECTION;
- COMMITMENT FOR PAYMENT OF THE COMPANY'S DEBTS;
- BIDDER'S BUSINESS EXPERIENCE.
IV. CONTACT INFORMATION:
FOR FURTHER INFORMATION PLEASE CONTACT:
VLADIMIR FILAT
GENERAL DIRECTOR
DEPARTMENT OF PRIVATIZATION AND
ADMINISTRATION OF STATE PROPERTY
#26 PUSHKIN STR.
CHISINAU, 2012, MOLDOVA
TEL: [3732] 234350
FAX: [3732] 234336
OR:
VIORICA-COSMETICS S.A.
STR. MESAGER, #1
CHISINAU, 2069, MOLDOVA
PLEASE SEND A COPY OF YOUR REQUEST TO:
COMMERCIAL ASSISTANT
U.S. EMBASSY IN MOLDOVA
103 MATEEVICI STR.
CHISINAU, 2009, MOLDOVA
FAX: [3732] 233044
****************************************************************************

SUBJECT: IMI: INVESTMENT TENDER ON ZORILE
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL
SERVICE AND U.S. DEPARTMENT OF STATE, 1997. ALL
RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

II. GENERAL INFORMATION
ZORILE WAS ESTABLISHED IN 1945. AFTER THE
REORGANIZATION PROCESS WHICH TOOK PLACE IN 1995,
THE COMPANY BECAME A JOINT STOCK COMPANY. THE
ANNUAL PRODUCTION OF THE FACTORY IS ABOUT SEVEN
MILLION PAIRS OF FOOTWEAR. OVER 60 PERCENT OF ITS
PRODUCTS WERE EXPORTED TO THE REPUBLICS OF THE
FORMER SOVIET UNION AND, AFTER THE USSR'S
COLLAPSE, TO CENTRAL AND WESTERN EUROPEAN
COUNTRIES.

THE COMPANY'S STATUTORY CAPITAL AMOUNTS TO 19.2
MILLION LEI (US$ 2.67 MILLION). AT PRESENT, 60
PERCENT OF THE SHARES ARE HELD BY THE STATE, THE
COMPANY'S EMPLOYEES HAVE 20 PERCENT, AND THE
REMAINING SHARES BELONG TO INDIVIDUALS AND VARIOUS
MOLDOVAN INVESTMENT FUNDS.

IN 1992, THE BREAKUP OF THE FORMER USSR LEFT
ZORILE IN A VERY DIFFICULT SITUATION. THE
COMPANY'S ADMINISTRATION AND EXPERTS WORKED OUT A
DEVELOPMENT PLAN TO OVERCOME THE CRISIS. IN 1996
THE ENTERPRISE BECAME PART OF THE STATE PILOT
PROGRAM FOR ASSISTANCE. AS A RESULT, BY 1997 THE
ENTERPRISE MANAGED TO RESTORE ITS PRODUCTION
VOLUME AND INCREASE THE SALES. THE SAME YEAR, THE
FACTORY PRODUCED A QUANTITY OF FOOTWEAR FOR THE
U.S. ARMY.

IN 1998, THE COMPANY HAS BEEN FACING A DECREASE IN
SALES DUE TO AN UNFAVORABLE STATE TAX POLICY. THE
COMPANY WAS MOSTLY AFFECTED BY INTRODUCTION OF THE
VALUE ADDED TAX FOR CHILDREN'S FOOTWEAR, WHICH IS
40 PERCENT OF THE COMPANY'S PRODUCTION VOLUME. IN
1997, ZORILE PRODUCED FOOTWEAR WORTH 13.3 MILLION
LEI, WHILE DURING NINE MONTHS OF 1998, IT HAS
PRODUCED FOOTWEAR WORTH 8.6 MILLION LEI.
CURRENTLY, ZORILE WORKS WITH AN ITALIAN PARTNER
AND ANNUALLY EXPORTS OVE> 800,000 PAIRS OF ITS
FOOTWEAR TO ITALY.

THE ENTERPRISE HAS A LARGE VARIETY OF FOOTWEAR FOR
VARIOUS AGES AND SEASONS. THE COMPANY PRODUCES
OVER 120 MODELS OF FOOTWEAR AND ANOTHER 150 MODELS
ARE JOINTLY PRODUCED WITH ITS ITALIAN PARTNERS AND
EXPORTED TO ITALY.

THE COMPANY IS LOOKING FOR AN INVESTOR TO ASSIST
THE COMPANY'S MANAGEMENT TO INCREASE PRODUCTION,
TO EXPLORE NEW MARKETS FOR EXPORTS, TO PARTIALLY
UPGRADE THE EXISTING EQUIPMENT, AND TO INCREASE
THE WORKING CAPITAL. TO PURSUE THE LAST GOAL, THE
COMPANY INTENDS ALSO TO SELL SOME OF ITS
PRODUCTION FACILITIES AND WAREHOUSES.

DESPITE OF THE DIFFICULTIES, THE COMPANY'S
ADMINISTRATION IS VERY OPTIMISTIC ABOUT THE ACTUAL
SITUATION AND IS CONVINCED THAT WITH ASSISTANCE OF
AN INVESTOR ZORILE WILL BE ABLE TO DOMINATE THE
FOOTWEAR MARKET IN MOLDOVA AS DID BEFORE 1992.

III. CONTACT INFORMATION:
FOR FURTHER INFORMATION PLEASE CONTACT:
FEDOR IACOVLENCO
GENERAL DIRECTOR
ZORILE S.A.
STR. CALEA IESILOR #8
CHISINAU, MOLDOVA
TEL: [3732] 758633
FAX: [3732] 740842
**************************************************************

SUBJECT: IMI: TURKMENISTAN: INVITATION FOR
PREQUALIFICATION FOR REHABILITATION AND IMPROVEMENTS TO
TURKMENBASHI SEAPORT
-------
SUMMARY
-------
1. THE TURKMENBASHI SEAPORT ADMINISTRATION, A STATE-
OWNED ENTITY, RECENTLY ANNOUNCED PREQUALIFICATION OF
CONTRACTORS FOR TWO PROJECTS: TURKMENBASHI SEAPORT
DEVELOPMENT AND REHABILITATION AND IMPROVEMENT OF THE
FERRY TERMINAL AND MAIN PORT. GOTX CONSIDERS THESE TWO
INVITES FOREIGN CONTRACTORS. THE TURKMENBASHI SEAPORT
IS OF VITAL IMPORTANCE TO TURKMENISTAN'S OVERALL
ECONOMIC DEVELOPMENT AND, IN PARTICULAR, TO EXPORTS OF
ITS HYDROCARBON RESOURCES. CONTACT INFORMATION IS
CONTAINED IN PARAGRAPH 5 OF THE PREQUALIFICATION
INVITATION TEXT BELOW. END SUMMARY.

TURKMENISTAN
TURKMENBASHI SEA PORT DEVELOPMENT PROJECT
REHABILITATION AND IMPROVEMENT TO THE FERRY.TERMINAL
AND MAIN PORT

INVITATION FOR PREQUALIFICATION
CIVIL CONSTRUCTION WORKS CONTRACTS

THIS INVITATION FOR PREQUALIFICATION FOLLOWS THE
GENERAL PROCUREMENT NOTICE FOR THIS PROJECT WHICH WAS
PUBLISHED IN PROCUREMENT OPPORTUNITIES SUPPLEMENT DATED
APRIL 1998.

TURKMEN SEA ADMINISTRATION (THE EMPLOYER) INTENDS USING
THE PROCEEDS OF A LOAN FROM THE EUROPEAN BANK FOR
RECONSTRUCTION AND DEVELOPMENT (THE BANK) TOWARDS THE
COST OF THE PROJECT FOR REHABILITATION AND IMPROVEMENTS
TO THE FERRY TERMINAL AND MAIN PORT AT TURKMENBASHI
PORT.

THE EMPLOYER INTENDS PREQUALIFYING FIRMS AND JOINT
VENTURES TO TENDER FOR THE FOLLOWING CONTRACTS TO BE
FUNDED FROM PART OF THE PROCEEDS OF THE LOAN:

(1) FERRY TERMINAL CIVIL CONSTRUCTION WORKS CONTRACT A
FOR THE REHABILITATION OF ONE OF THE TWO FERRY BERTHS
AND THE INITIAL PRESERVATION OF THE SECOND BERTH AS AN
EMERGENCY FACILITY, TOGETHER WITH LANDSIDE WORKS TO
PROVIDE IMPROVED TERMINAL FACILITIES FOR VEHICLES,
PASSENGERS AND RAILWAY WAGONS.

THE ABOVE WORKS ARE LOCATED AT THE EXISTING FERRY
COMPLETED WITHIN 20 MONTHS AND ARRANGED SO THAT FERRY
OPERATIONS MAY CONTINUE DURING THE CONSTRUCTION.

(2) MAIN PORT CIVIL CONSTRUCTION WORKS CONTRACT B FOR
THE REHABILITATION OF THREE BERTHS AND BACKUP
FACILITIES AT THE GENERAL CARGO TERMINAL AND ONE BERTH
AT THE DRY BULK TERMINAL.

THE ABOVE WORKS ARE LOCATED IN THE MAIN PORT AREA OF
TURKMENBASHI PORT AND WORKS ARE TO BE COMPLETED WITHIN
30 MONTHS AND ARRANGED SO THAT PORT OPERATIONS MAY
CONTINUE DURING THE CONSTRUCTION.

(3) FIRMS ARE INVITED TO PREQUALIFY FOR: CONTRACT A; OR
CONTRACT B; OR BOTH CONTRACTS A AND B. THE CRITERIA
FOR EACH OF THESE OPTIONS ARE DIFFERENT (SEE PARA. 2.2
BELOW IN THIS DOCUMENT). IT IS EXPECTED THAT THE
PERIODS FOR CONTRACT A AND CONTRACT B WILL OVERLAP SO
THAT WORK ON BOTH WILL PROCEED SIMULTANEOUSLY FOR A
PART OF THE PERIOD.

A FIRM THAT HAD PREQUALIFIED FOR BOTH CONTRACTS AND HAS
BEEN AWARDED ONE OF THEM WILL NOT AUTOMATICALLY BE
AWARDED THE SECOND AND THIS SHOULD NOT BE ASSURED.

PREQUALIFICATION AND TENDERING FOR CONTRACTS TO BE
FINANCED WITH THE PROCEEDS OF A LOAN FROM THE BANK IS
OPEN TO FIRMS AND JOINT VENTURES OF FIRMS FROM ANY
COUNTRY.
(4) PREQUALIFICATION DOCUMENTS MAY BE OBTAINED FROM THE
ADDRESS AS GIVEN BELOW UPON PAYMENT OF A NON-REFUNDABLE
FEE OF USD 150 OR EQUIVALENT IN A CONVERTIBLE CURRENCY.
IF REQUESTED, THE DOCUMENTS WILL BE PR
OMPTLY DISPATCHED
BY COURIER, BUT NO LIABILITY CAN BE ACCEPTED FOR LOSS
OR LATE DELIVERY. ONLY PARTIES WHO PURCHASE THE
PREQUALIFICATION DOCUMENTS WILL BE CONSIDERED FOR
PREQUALIFICATION. THE PREQUALIFICATION DOCUMENTS MUST
BE DULY COMPLETED AND DELIVERED TO THE EMPLOYER AT THE
ADDRESS BELOW, ON OR BEFORE JANUARY 18, 1999. DOCUMENTS
WHICH ARE RECEIVED LATE MAY BE REJECTED AND RETURNED
UNOPENED.
(5) INTERESTED FIRMS MAY OBTAIN FURTHER INFORMATION
FROM, AND INSPECT AND ACQUIRE THE PREQUALIFICATION
DOCUMENTS AT THE FOLLOWING OFFICE:
POSFORD DUVIVIER
MR. T.J. FAY
MARLBOROUGH HOUSE
MARLBOROUGH CRESCENT
NEWCASTLE UPON TYNE
UNITED KINGDOM
NEL 4EE
FAX:(44-0)191-211-1313

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