1. How much is the amount of investment and grant?
The amount of investment is 524,434 USD, and that of grant is 150,000 USD. In addition, there is an allowance of 5,500 USD at max for the detailed design drawing and structural calculations of a water treatment plant and a storage tank.
2. Does 3i have any requirement for the winning bidder to select a construction company?
The winning bidder has the absolute right to select a construction company. However, there are some requirements which must be ensured: child labor, working and safety measures, for example.
3. Can the bidder propose sizes of the pipes different from what are suggested in the feasibility study? Can the bidder use PVC?
The winning bidder could propose different things from the feasibility study based on his/her own assessment. Larger pipes are always accepted, but payment will not increase. 3i would evaluate if infrastructure proposed by the bidder could provide proper clean water to the people in line with MIH requirements. For PVC, MIH always encourages and requires the piped water service provider to use HDPE since the latter is more resilient and especially when there is road construction, the pipe could be removed.
4. During the pipe installation, there may be some disruptions to the households especially the front yard. Does MIH and/or 3i have any facilitation role? Is there any support from the local authority?
The winning bidder is the owner of the business and thus responsible for all kinds of the operation of its. In addition, to get the commune tendered, there must be an endorsement from the local authority such as the commune hall, provincial hall, and the department of MIH.
5. Is there any different water source from Tonle Sap?
The bidder can propose another source of water, but it needs to be available year round with limited negative impact on other users and the environment.
6. How does 3i disburse its grant?
The grant is based on an output based contract. For example, there are three milestones in the contract. When the company finishes everything in milestone one, 3i will check if the actual output complies with what is put in the contract. If thing complies, 3i will disburse the fund as agreed in milestone one.
7. What is the percentage of grant for milestone one?
There is no predetermined percentage of grant for each milestone. The amount of grant for each milestone really depends on how much the company invests in each milestone. That is, the more the company invests in milestone one, the bigger the grant it will be.
8. I want to build a bigger water treatment plant and install solar system to run the pump. Does 3i give any more grant?
The scope of infrastructure proposed by 3i is good enough to provide clean water to the people in the commune with enough pressure. If the company would like to do better than that, it can do so. However, 3i will not co-share more.
Regarding solar however, 3i may consider a small additional contribution.
9. How long is the duration of the contract?
In principle it will be valid for 18 months.
10. How can I prove that I could meet the minimum amount of capital which is 35%?
You can prove by provide evidences on your bank statement of your saving account or fixed account. You can also use other types of assets such as real estate with proper certificate of ownership.
11. I have a business of selling motorbikes and also a business of water. Can I use some assets to claim against the requirement: motorbikes, water treatment plant, for example?
No, you cannot.
12. I have a house, and it has been collateralized with a bank. Can I use asset?
No, you cannot.
13. Has 3i conducted the feasibility study of the site?
Yes, it has. You can find the feasibility study in the bidding package where you can buy from MIH, or you can find it on our website.
14. When can I withdraw 5,000 USD of the bank guarantee?
If you lose the bidding, you can withdraw 5,000 USD.
15. When I win the bidding, do I automatically get the permit?
The representatives of the committee and the committee of the MIH will select the winner from the bid. When MIH officially announce a winner, that one will be awarded the permit.
16. What happens if I select the smaller pipe size?
The bidder could propose pipe size and other parts of the infrastructure different from what are suggested in the feasibility study. 3i would check if that could comply with MIH requirement and provide a reliable water supply. If it is the case and the bidder wins, 3i may reduce the amount of grant to reflect the reduction in the investment cost.
17. If two bidders have the same proposed tariff, how is the winner selected?
If more than two bidders have the same proposed tariff, the representatives of the committee will evaluate based on connection fee. If the bidders even have the same connection fee, the representatives will decide based on, in the rank of, water maintenance fee, deposit, and re-connection fee.
18. The proposed tariff could fall from year 1 to year 5, how does one know who has the lowest tariff?
It is based on a simple average tariff for 5 years.
19. Which bank can issue a bank guarantee of 5,000 USD?
You can get that service from any commercial bank. In the previous rounds, we saw the bank guarantee from ACLEDA bank; however, please go to check any bank at your convenience and present the sample form.
20. For this site, the raw water pipe runs through the commune under the permit of another person. Is that feasible?
MIH staff explains that there shall be no problem as long as you do not distribute water in the permit area of others.
21. There is a requirement of the minimum capital which is 35% of the total investment. If one does not comply with this, can he/she bid?
No, he/she cannot. The reason behind 35% as the minimum capital is to ensure an investor has enough capital to finish building infrastructure for the whole service area within 5 years as required by MIH.
22. Can a bidder propose a tariff below the range?
No, he/she cannot. He/she will be disqualified.
23. Does the cost of infrastructure suggested in the feasibility study already cover VAT?
The infrastructure cost suggested in the feasibility study is an estimated cost based on the market price of products. Thus, VAT is already included. This is just an estimation of the cost. The bidder is encouraged to verify and validate the cost.
24. If a winning bidder does not accept the result, can the second bidder on the ranking list become the winning bidder?
MIH staffs explains that in principle there will be a new launch of bidding to avoid any collusion between the first and second bidders.
25. How does 3i calculate the cost of chemicals?
It is based on the standard assumption of a typical water company. To come up with this assumption, 3i has conducted a market research and interviewed a number of companies. This is just an estimation of the cost. The bidder is encouraged to verify and validate the cost.
26. Can a winning bidder transfer a permit to someone else?
MIH is the one to decide if the permit could be transferred. However, the contract with 3i could not be transferred nor sold.
27. Within 5 years, if the winning bidder could not cover all the villages in the service area, will MIH withdraw the permit?
MIH explains that by law the MIH can withdraw the permit; however, in practice MIH will investigate the case, check the progress, and ask the operator to explain difficulties.
28. Based on MIH, the winning bidder needs to finish the infrastructure within 5 years. However, the contract with 3i is for only 1.5 years. Why is there an inconsistency?
3i does not require the whole infrastructure to be finalized before it makes its final payment. With the company, 3i will agree on a realistic payment schedule and achievable payment triggers.
29. For water Tariff of previous bidding projects, do you disclose the result of bidding? If so, we want to know the final water tariff of your previous projects.
The Ministry of Industry and Handicraft is the one who decides the winning bidder and officially announce the result which also discloses water tariff, connection fee, and other fees. Please contact General Department of Potable Water, Ministry of Industry and Handicraft.
30. What is the valid date for the bank guarantee letter?
The bank guarantee shall be valid at least until 1 February 2018.
31. There is a Kraing Punley stream in Tomnub Thom Commune. Can it be used as a water source?
The stream dried out last year, and it does not seem to be a sustainable water source. The commune is located in the lowest downstream and there are many gates of dams in the upstream part.
32. Can Tomnub Thom commune and any other commune be combined as one site?
The other commune is Makak Commune which can be combined.
33. Why is the capacity of a raw water pump bigger than that of a booster pump?
There are two reasons. First, the length of raw water pipe connecting the water treatment plant to the water source is long. Second, there are high elevation areas located along the way from the water source to the water treatment plant.
34. If the bid winner would like to the expand service area to the commune nearby Tomnub Thom commune, will 3i provide addition grant?
Yes, 3i will consider additional grant for the bid winner who would like to expand their service area. 3i will use the same method to calculate grant and will submit grant proposal to its Oversight Committee for approval if the amount of grant varies a lot. However, 3i cannot guarantee that the bid winner will definitely get additional grant.