Carlos Roberto Silvestrin, Dir Exec, Agjncia de Desenvolvimento Tieti Parana (ADTP), R. Jertnimo da Veiga, 164 -- 120 andar -- Itaim -- Sco Paulo, 04536-900, BR. Tel: 55-11-282-2100, Fax: 55-11-282-2464

B -- ADTP GAS-FIRED COGENERATION PROJECTS IN SCO PAULO, BRAZIL POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009 Gas-Fired Cogeneration Projects in Sco Paulo, Brazil. The Grantee invites submission of qualifications and proposal data (collectively referred to as the "Proposal") from interested U.S. firms which are qualified on the basis of experience and capability to develop Phase 1 of a two-phased feasibility study for three gas-fired cogeneration projects in Sco Paulo, Brazil. Upon completion of the Phase 1 study, TDA will consider providing funding for Phase 2 of the feasibility study, subject to the availability of TDA funds and TDA's review of the Phase 1 Final Report. TDA is under no obligation to cover expenses incurred by the Contractor or any other entity for a Phase 2 study if TDA does not provide such written authorization to proceed. It is possible that the Phase 1 study contractor may be selected to carry out the Phase 2 study, if funded. It is anticipated that, if TDA decides to provide grant funds for such Phase 2 study, the Phase 2 contractor would be required to cost-share at least 50% of the cost of such Phase 2 study. The Agjncia de Desenvolvimento Tiet Parana (ADTP) is a Brazilian economic development organization that seeks to stimulate growth and investment in the state of Sco Paulo. ADTP has identified three potential projects in the Tietj-Parana region, each of which could support a 450 MW gas-fired cogeneration facility. 1) Anhang|era -- This project is located approximately 110 km northwest of the Sco Paulo metropolitan region, near the citygate of the Bolivia-Sco Paulo leg of the Boliva-Brazil gas pipeline and close to an interconnected 440 kV transmission system and 138 kV regional systems. 2) Citrus -A gas-fired combined-cycle cogeneration facility of 450 MW is proposed to serve an area approximately 300 km northwest of the Sco Paulo metropolitan region. This site is also near a citygate of the Bolivia-Sco Paulo leg of the Bolivia-Brazil gas pipeline, an interconnection 440kV transmission line, and a regional 138 kV transmission line. 3) Sorocaba -- The third site proposed by ADTP is at an existing industrial park at Sorocaba, about 90 km west of Sco Paulo. This site is beside the Sco Paulo-Porto Alegre leg of the Bolivia-Brazil gas pipeline, at the site of a main compressor station. Transmission lines of 440 kV, 230 kV, 138 kV, and 88 kV are in the immediate area. The power facility will sell energy principally to the electric grid, but will also sell directly to major industrial consumers and supply steam to manufacturers in the industrial park. The scope of work for the Phase 1 study would be the same for each of the three projects and includes: Organizational efforts. The Feasibility Study Contractor (FSC) would assist ADTP in making presentations to industry groups in the proposed areas; provide written materials about the technical and economic benefits associated with cogeneration, the structures of those benefits, and the requirements for rate design analyses to allocate the costs of project generation among participants; and prepare and distribute model joint venture agreements and energy purchase agreements, as well as budgetary estimates of project costs and revenue requirements. 2. Site evaluations. The FSC would review alternative sites for the projects, which will include evaluating consumption centers, access to transmission facilities, pipeline access, availability of cooling and process water, transportation logistics, and land use. The FSC would also develop preliminary budgetary costs associated with each location over the life of the project. 3. Negotiation of JVA and Letters of Intent for EPAs. The execution of the following agreements and commitments will be a precondition for Phase Two funding: a. joint venture agreements describing the rights and obligations of participants; b. electric energy sale agreements; c. thermal energy sale agreements; and d. reciprocal easements to provide access for common facilities. Executed JVA agreements and EPAs among the participants for an aggregate of not less than 70% of the full rated electrical and thermal outputs of the 450 MWfacility, along with the written commitment of an experienced, well capitalized IPP developer to participate in the project, would constitute sufficient grounds for the release of Phase Two funding. The tasks for Phase Two would include the following for one of the three sites evaluated in Phase One: a. developing the final commercial structure and risk assessment; b. developing the legal structure; c. evaluating the fuel supply and obtaining LOIs; d. assessing project configurations and economic evaluations; e. providing detailed cost estimates; f. assessing equipment configurations; g. conducting an environmental impact study; h. preparing project financing; and i. delivering a final report. The U.S. firm selected will be paid in U.S. dollars from a $129,200 grant to the Grantee from the U.S. Trade and Development Agency (TDA). A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background definitional mission report are available from TDA, at1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. In the fax, please include your firm's name, contact person, address, and telephone number. Some firms have found that RFP materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want TDA to use an overnight delivery service should include the name of the delivery service and your firm's account number in the request for the RFP. Firms that want to send a courier to TDA to retrieve the RFP should allow one hour after faxing the request to TDA before scheduling a pick-up. Please note that no telephone requests for the RFP will be honored. Please check your internal fax verification receipt. Because of the large number of RFP requests, TDA cannot respond to requests for fax verification. Requests for RFPs received before 4:00 PM will be mailed the same day. Requests received after 4:00 PM will be mailed the following day. Please check with your courier and/or mail room before calling TDA. Only U.S. firms and individuals may bid on this TDA financed activity. Interested firms, their subcontractors and employees of all participants must qualify under TDA's nationality requirements as of the due date for submission of qualifications and proposals and, if selected to carry out the TDA-financed activity, must continue to meet such requirements throughout the duration of the TDA-financed activity. All goods and services to be provided by the selected firm shall have their nationality, source and origin in the U.S. or host country. The U.S. firm may use subcontractors from the host country for up to 20 percent of the TDA grant amount. Details of TDA's nationality requirements and mandatory contract clauses are also included in the RFP. Interested U.S. firms should submit their Proposal in English and Portuguese directly to the Grantee by 5:00pm, October 12, 1999 at the above address. Evaluation criteria for the Proposal are included in the RFP. Price will not be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The Grantee reserves the right to reject any and/or all Proposals. The Grantee also reserves the right to contract with the selected firm for subsequent work related to the project. The Grantee is not bound to pay for any costs associated with the preparation and submission of Proposals.* Posted 08/24/99 (I-SN371333). (0236)

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