NBN - RFPQ
NBN - RFPQ
NBN - RFPQ
OF SRI LANKA
Introduction
1.
2.
3.
4.
Eligible applicants for prequalification may be single legal entities, including companies, or
several legal entities applying together as joint ventures or consortiums.
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Background Information
5.
TRCSL initiated an island wide fibre backbone network project to cater for the broadband
needs such as projects under the e-Sri Lanka initiative of ICTA or the deployment of Next
Generation Networks (NGN) in Sri Lanka. Especially, access to reliable high-speed
Internet connectivity not only in the urban areas but in the more rural underserved areas
of Sri Lanka is becoming increasingly important with the rapid growth in ICT literacy
among all sections of the population.
6.
In addition, the lack of a national backbone network has impacted the mobile operators of
Sri Lanka who up to now have to rely on point-to-point microwave links, thus increasing
the level of required investments considerably.
7.
The TRCSL, as regulator of telecommunications services in Sri Lanka, has the responsibility
to promote and ensure nation-wide penetration and equitable distribution of
communication services. One of its specific emphasis is making ICT services available in
rural underserved areas to help education, health and poverty alleviation.
8.
The main goal of the NBN Licence is to provide broadband connectivity in all electorates
of all 25 districts of Sri Lanka. TRCSL has commissioned a feasibility study on this NBN,
which revealed that 5 fibre optical rings as shown in Annex A will be most appropriate to
connect all 25 districts of Sri Lanka.
9.
Connectivity services on electorate level can most efficiently be achieved by the use of
WiMAX or other comparable technologies. The overall timeframe for a complete three
phased network roll-out has been estimated as 3 to 4 years. Annex B shows an initial rollout table for the full electorate coverage in this three phased approach.
10.
In order to facilitate the roll-out of this infrastructure project, the Government of Sri
Lanka will grant a one-time initial capital subsidy of up to US$ 12,500,000 (in words:
twelve million five hundred thousand United States Dollars) towards Phase 1 of the
network roll-out.
11.
In the main bidding process to be launched after the prequalification stage, only prequalified entities will be invited to bid for a least-cost capital subsidy to build out the NBN.
12.
The winning bidder will be selected in accordance with the evaluation process to be
specified in the Bidding Document, in accordance with the World Banks Guidelines:
Procurement under IBRD Loans and IDA Credits, May 2004 revised in October 2006.
13.
The winning bidder will be decided on the basis of the lowest required subsidy and whose
bid has been determined to be substantially responsive to the requirements of the Bidding
Document.
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The winning bidder will have the right to offer wholesale broadband and connectivity
services in all districts and electorates of Sri Lanka. TRCSL wishes to inform potential
bidders that this right to offer wholesale services is not on an exclusive basis.
15.
It will therefore be important for potential bidders to assess for themselves the existing
infrastructure, the competitive opportunity, as well as the potential for leasing or sharing
backbone and other existing infrastructure facilities to reach each electorate.
16.
17.
Should the lowest subsidy for the NBN network be proposed by a new entrant1 (i.e. an
operator other than the existing licensed national operators in Sri Lanka), the winning
bidder shall be offered a 10 year, non-exclusive licence to provide broadband services in all
of the districts and electorates of Sri Lanka. The licence will be renewed for an additional
10 years if the licensee has successfully fulfilled the licence obligations in the first 10-year
term.
18.
The licensee may negotiate interconnection with all other operators and service providers.
In case those operators are not able to enter into an interconnection agreement, TRCSL is
empowered by the law to make a determination on interconnection terms and conditions.
19.
The licensee will have to provide non-discriminatory access to all market parties wishing
to use its services. Maximum tariffs will be regulated by TRCSL, with more details
provided in the main bidding documents.
20.
The licensee will also be allowed to access the international landing point located in Sri
Lanka and offer international connectivity services from the beginning of its operations.
21.
The technical and operational requirements set out in the bidding Document will be
technology neutral. However, the TRCSL has established that broadband backbone
services in Sri Lanka are likely to be commercially viable, if they are based on a fibre-optic
network using infrastructure sharing with electricity lines, railroads and/or roads. In this
scenario, all potential bidders are advised to negotiate letters of intent or similar
agreements to enter into partnership with Ceylon Electricity Board (CEB) and Sri Lanka
Railway (SLR) if and when they are awarded the NBN licence.
22.
Furthermore, the Bidding Document will specify that all offers must include the capability
to meet a specified level of private demand based on a minimum bandwidth provision of
2 Mbps per end-user. The network design should accommodate an easy expansion to
8Mbps per end-user over a time period of 5 years.
If an existing licence holder is awarded the NBN Licence, its existing licence will be amended, or, if applicable a new licence will
be issued to include the terms and conditions relevant to the bid to fulfill its obligations.
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23.
The allocation and assignment of any spectrum or other resources required by the
licensee to provide the backbone services will be discussed in the Bidding Document.
However, due to capacity limitations, the licensee will not be encouraged to use point-topoint microwave links for the backbone network.
24.
Applicants are advised to review carefully and comply with the procedures and
requirements for submitting an APQ.
Prequalification Procedures
25.
Only parties that have submitted an APQ, including the fully completed forms, to the
TRCSL together with the non-refundable APQ fee of LKR 100,000 (in words: one hundred
thousand Sri Lankan Rupees) by the deadline set in this RFPQ document will be taken into
further consideration to be pre-qualified to apply subsequently on the NBN Licence.
26.
The method of payment of the APQ fee will be by bank draft payable to
Telecommunications Regulatory Commission of Sri Lanka. Any APQ received without
payment will be rejected.
27.
28.
The TRCSL will review the APQs received. Information relating to the evaluation of
applications and recommendation for prequalification will not be disclosed to applicants or
any other person not officially concerned with such process until the notification of
prequalification is made to all applicants. From the deadline for submission of applications
to the time of notification of the results of the prequalification, any applicant that wishes to
contact TRCSL on any matter related to the prequalification process, may do so only in
writing. To assist in the evaluation of applications, TRCSL may, at its discretion, ask any
applicant for a clarification of its application which shall be submitted within a reasonable
period of time. Any request for clarification and all clarifications provided upon such
request shall be in writing only. If an applicant does not provide clarifications by the date
and time set by TRCSL in its written request, its application will be rejected. Based on the
evaluation of the APQs, the TRCSL will arrive at a list of pre-qualified applicants. All
applicants who meet or exceed the specified criteria will be pre-qualified. All applicants will
be notified in writing and provided with the list of applicants who have been prequalified.
TRCSL will reject any application which is not responsive to the requirements of this
RFPQ.
29.
Only pre-qualified parties will then be eligible to obtain the Bidding Document and draft
versions of the NBN Licence. The Bidding Document and draft NBN Licence will provide
detailed information on the subsidy bidding and rollout obligations.
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The cover letter must provide a description of the applicant and the
completed Form 1.1 (Applicant General Information) which is attached to
this RFPQ.
(ii)
Where the applicant is a joint venture, the letter must describe each
member of the joint venture and provide further details on Form 1.2
(Applicant s Party Information) for each partner of the j.v., subcontractor,
supplier, other parties, as applicable. Evidence by a copy of the certificate of
incorporation (or equivalent constating documents) must be provided. At
the prequalification stage, a joint venture applicant is obligated to submit a
letter of intent to form a JV.
(b)
Documentation that demonstrates full compliance with each of the prequalification criteria set out in section 31 of this RFPQ. The APQ should clearly
identify which specific person or persons satisfy each relevant criterion.
(c)
The name, address, telephone number, fax number and e-mail address of two
(2) persons who may be contacted as authorized representatives of the
applicant.
The information and documentation submitted by the applicant must prove that the
applicant is substantially responsive to the criteria for prequalification, including the
requirements set out below:
Company Registered in Sri Lanka
(a)
(ii)
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(b)
1.
2.
all members of the joint venture shall be jointly and severally liable for the
execution of the agreement with TRCSL in the event of a partners
withdrawal; and
(ii)
(c)
All existing and new entrants to the Sri Lankan telecommunications sector,
including all Sri Lankan and foreign entities, may apply to pre-qualify in
accordance with sections 31(a) and (b).
Operational Experience
(d)
(ii)
(iii)
(iv)
the network has been operated by the applicant for a minimum of five
years.
(e)
In complying with section 31(d) above, the applicant may rely on:
(i)
(ii)
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2.
(iii)
where the applicant is a joint venture, the experience of any single joint
venture member, provided that:
1.
2.
the Significant Joint Venture Member also states in the letter that it
will provide an undertaking to guarantee performance by providing
the company to be formed if the joint venture is pre-qualified with
the technical and managerial expertise required to operate the
network for the life of the Service Agreement.
All information presented as evidence of similar
Operational Experience as spelled out in the above Section
31, shall be submitted on Form 1.5 (Similar Experience in
Building and Operating Backbone Networks) for the
applicant, each partner of a joint venture and
subcontractors.
(g)
Where the applicant is a joint venture all members of the joint venture must
demonstrate the current soundness of their financial position and their
prospective long term profitability by submitting their most recent available
audited annual financial statements (within the last two fiscal years), including at
least an income statement and a balance sheet, or if not required by the law of
the applicants country, equivalent financial statements which will be subject to
review by TRCSL.
(h)
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(i)
(ii)
(iii)
2.
(i)
Net worth for the purposes of this RFPQ means total assets minus total
liabilities (including accumulated losses) as demonstrated by the most recent
available audited annual financial statements (within the last two fiscal years),
including at least an income statement and a balance sheet, or other evidence
that clearly demonstrates such net worth.
(j)
The net worth of any shareholder in the applicant may be included in the
calculation of the net worth of the applicant for the purposes of this RFPQ if
the shareholder is a Significant Shareholder.
(k)
Where the applicant is a Joint Venture, the net worth of any Joint Venture
member may be included in the calculation of the net worth of the applicant for
the purposes of this RFP, pro-rated by the share of ownership, if the Joint
Venture member is a Significant Joint Venture Member.
All information presented as evidence of Financial Soundness and
Availability of Financing, as spelled out in the above Section 31,
shall be submitted on Form 1.4 (Financial Situation) for the
applicant, each partner of a joint venture and subcontractors.
Compliance with Licence(s)
(l)
(m)
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(i)
(ii)
(n)
(o)
(p)
(q)
Where the applicant is a joint venture, the applicant shall confirm in writing to
TRCSL that each joint venture member is eligible to receive the capital subsidy
pursuant to the World Bank Procurement Guidelines: Procurement under
IBRD Loans and IDA Credits, May 2004 revised in October 2006, if warded the
NBN license.
(r)
An extract from the World Banks website regarding eligibility under the
World Bank Procurement Guidelines is provided at Annex C to this RFPQ
(also
available
online
at
the
following
URL:
www.worldbank.org/html/pic/PROCURE.ht ml ).
Other Provisions
32.
Fraud and Corruption: It is the World Banks policy to require that Borrowers
(including beneficiaries of Bank loans), as well as bidders, suppliers, and Contractors and
their subContractors under Bank-financed contracts, observe the highest standard of
ethics during the procurement and execution of such contracts.2
In pursuance of this policy, the Bank:
(a) defines, for the purposes of this provision, the terms set forth below as follows:
In this context, any action taken by a bidder, supplier, Contractor, or a sub-Contractor to influence the procurement
process or contract execution for undue advantage is improper.
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(i)
(bb) acts intended to materially impede the exercise of the Banks inspection and audit
rights provided for under (e) below;
(b) will reject a proposal for award if it determines that the bidder recommended for award
has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or
obstructive practices in competing for the contract in question;
(c) will cancel the portion of the loan allocated to a contract if it determines at any time that
representatives of the Borrower or of a beneficiary of the loan engaged in corrupt,
fraudulent, collusive, or coercive practices during the procurement or the execution of
that contract, without the Borrower having taken timely and appropriate action
satisfactory to the Bank to address such practices when they occur;
(d) will sanction a firm or individual, including declaring ineligible, either indefinitely or for a
stated period of time, to be awarded a Bank-financed contract if it at any time determines
that the firm has, directly or through an agent, engaged in corrupt, fraudulent, collusive,
coercive or obstructive practices in competing for, or in executing, a Bank-financed
contract; and
(e) will have the right to require that a provision be included in bidding documents and in
contracts financed by a Bank loan, requiring bidders, suppliers and contractors to permit
3
Another party refers to a public official acting in relation to the procurement process or contract execution]. In this
context, public official includes World Bank staff and employees of other organizations taking or reviewing procurement
decisions.
4
Party refers to a public official; the terms benefit and obligation relate to the procurement process or contract
execution; and the act or omission is intended to influence the procurement process or contract execution.
5
Parties refers to participants in the procurement process (including public officials) attempting to establish bid prices
at artificial, non competitive levels.
6
Party refers to a participant in the procurement process or contract execution.
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the Bank to inspect their accounts and records and other documents relating to the bid
submission and contract performance and to have them audited by auditors appointed by
the Bank
33.
Information Provided by TRCSL - The information contained in this RFPQ and any
other information provided to applicants and other parties during the application process,
in writing, is intended to assist applicants in the preparation of their APQs. The TRCSL
will ensure that all applicants are provided with the same information during the prequalification and subsequent bidding process.
34.
Reservation of TRCSL Rights The TRCSL reserves the right to accept or reject any
application, and to annul the pre-qualification process and reject all applicants at any time,
without thereby incurring any liability to applicants.
35.
TRCSL Licence Guidelines: The Guidelines and Procedures for issuing, renewal and
modification of licences under the Sri Lanka Telecommunications Act, No. 25 of 1991 as
amended will be applicable.
Deadline for Submission of APQ - APQs and payment of the APQ fee must be
delivered to the TRCSL, at the address indicated below, at or before 1500 hrs on July 16,
2009. Only companies that have submitted an APQ and paid the APQ fee by 1500 hrs on
July 16, 2009 will be considered for further review for pre-qualification. Late applications
will be returned unopened to the applicants. The APQ and attachments must be submitted
in the English language.
37.
3 (three) hardcopies of the APQ, one marked as original and the other
two marked as copy, whereby the original and each copy contains the
completed forms that are part of this RFPQ;
(ii)
(iii)
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38.
(b)
The exterior of the APQ Container must be clearly marked SRI LANKA:
Application for prequalification to Build and Operate a National Backbone
Network.
(c)
For the delivery of the APQ Container by hand or by courier the following
address shall be used:
Director General
Telecommunications Regulatory Commission of Sri Lanka
(TRCSL)
276 Elvitigala Mawatha, Colombo 8,
Sri Lanka
Tel. No: +94-11-2689345
Fax No: +94-11-2689341
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Annex A
Roll-out Map: Proposed Ring-Structure of Backbone Network
Jaffna
Kilinocchi
Mullativ
Mannar
Vavuniya
Anuradhapura
Points of interconnection
Polonnaruwa
Matale
Badulla
Puttalam
Batticaloa
Karunegala
Kandy
Negombo
Ampara
Kegalle
Gampaha
Colombo
Nuwara -Eliya
Kaluthara
Monaragala
Rathanapura
Hambantota
Galle
Matara
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Annex B
Roll-out Schedule for Districts and Electorates
The following table shows the roll-out schedule for all districts and electorates:
Phase 1: Blue
Phase 2: Red
Phase 3: Black
GALLE
BENTARA-ELPITIYA
ANURADAPURA ANURADHAPURA-E
GALLE
GALLE
ANURADAPURA
HOROWUPOTANA
GALLE
HABARADUWA
MIHINTALE
GALLE
HINIDUMA
ANURADHAPURA
ANURADHAPURA-W
GALLE
KARANDENIYA
ANURADHAPURA
KALAWEWA
GALLE
RATGAM A
ANURADHAPURA
KEKIRAWA
GAMPAHA
ATTANAGALLA
ANURADHAPURA
MEDAWACHCHIYA
GAMPAHA
BIYAGAMA
BADULLA
BADULLA
GAMPAHA
DIVULAPITIYA
BADULLA
BANDARAWELA
GAMPAHA
DOMPE
BADULLA
HALI-ELA
GAMPAHA
GAMPAHA
BADULLA
HAPUTALE
GAMPAHA
JA-ELA
BADULLA
MAHIYAN GANA
GAMPAHA
KATANA
BADULLA
PASSARA
GAMPAHA
KELANIYA
UVA-PARANAGAMA
GAMPAHA
MAHARA
WELIMADA
GAMPAHA
MINUWANGODA
WIYALUWA
GAMPAHA
MIRIGAMA
BATTICALOA
GAMPAHA
NEGOMBO
KALKUDAH
GAMPAHA
WATTALA
BATTICALOA
PADIRUPPU
HAMBANTOTA
BELIATTA
COLOMBO
AVISSAWELLA
HAMBANTOTA
MULKIRIGALA
COLOMBO
BORELLA
HAMBANTOTA
TANGALLE
COLOMBO
COLOMBO-CENTRAL
HAMBANTOTA
TISSAMAHARAM A
COLOMBO
COLOMBO-EAST
JAFFNA
CHAVAK ACHCHERI
COLOMBO
COLOMBO-NORTH
JAFFNA
JAFFNA
COLOMBO
COLOMBO-WEST
JAFFNA
KANKASANTURAI
COLOMBO
DEHIWELA
JAFFNA
KAYTS
COLOMBO
HOMAGAMA
JAFFNA
KOPAY
COLOMBO
KESBEWA
JAFFNA
MANIPAY
KOLONNAWA
JAFFNA
NALLUR
KOTTE
JAFFNA
POINT PEDRO
Kuduwela
JAFFNA
UDUPIDDY
MAHARAGAMA
JAFFNA
VADDUKODDAI
COLOMBO
MORATUWA
JAFNA
KILINOCHCHI
COLOMBO
RATMALANA
KALUTARA
AGALAWATTA
DIGAMADULLA
AMPARA
KALUTARA
BANDARAGAMA
DIGAMADULLA
KALMUNAI
KALUTARA
BERUWALA
DIGAMADULLA
POTUVIL
KALUTARA
BULATHSINHALA
DIGAMADULLA
SAMMANTURAI
KALUTARA
HORANA
GALLE
AKMEEMANA
KALUTARA
KALUTARA
GALLE
AMBALANGODA
KALUTARA
MATUGAMA
GALLE
BADDEGAMA
KALUTARA
Panadura
GALLE
BALAPITIYA
KANDY
GALAGEDARA
District
ANURADAPURA
BADULLA
BADULLA
BADULLA
BATTICALOA
BATTICALOA
COLOMBO
COLOMBO
COLOMBO
COLOMBO
Electorate
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KANDY
GAMPOLA
MATARA
KAMBURUPITIYA
KANDY
HARISPATTUWA
MATARA
MATARA
KANDY
HEWAHETA
MATARA
WELIGAMA
KANDY
KUNDASALE
MONER AGALE
BIBILE
KANDY
MAHANUWARA
MONERAGALE
MONERAGALA
KANDY
NAWALAPITIYA
MONERAGALE
WELLAWAYA
KANDY
PATHA-DUMBARA
NUWARA-ELIYA HANGURANKETA
KANDY
SENKADAGALA
NUWARA-ELIYA
KOTAMALE
KANDY
TELDENIYA
NUWARA-ELIYA
MASKELIYA
KANDY
UDA-DUMBARA
NUWARA-ELIYA
WALAPANE
KANDY
UDUNUWARA
KANDY
YATINUWARA
POLONNARUWA
MINNERIYA
KEGALLE
ARANAYAKE
POLONNARUWA
POLONNARUWA
KEGALLE
DEDIGAMA
PUTTALAM
ANAMADUWA
KEGALLE
DERANIYAGALA
PUTTALAM
CHILAW
KEGALLE
GALIGAMUWA
PUTTALAM
NATTANDIYA
KEGALLE
KEGALLE
PUTTALAM
PUTTALAM
KEGALLE
MAWANELLA
PUTTALAM
WENNAPPUWA
KEGALLE
RAMBUKKANA
RATNAPURA
BALANGODA
KEGALLE
RUWANWELLA
RATNAPURA
EHELIYAGODA
KEGALLE
YATIYANTOTA
RATNAPURA
KALAWANA
KURUNAGALA
DODANGASLANDA
RATNAPURA
KOLONNA
KURUNEGALA
BINGIRIYA
KURUNEGALA
DAMBADENIYA
RATNAPURA
NIVITIGALA
KURUNEGALA
GALGAMUWA
RATNAPURA
PELMADULLA
HIRIYALA
RATNAPURA
RAKWANA
KATUGAMPOLA
RATNAPURA
RATNAPURA
KULIYAPITIYA
TRINCOMALEE
MUTUR
KURUNEGALA
TRINCOMALEE
SERUWILA
MAWATHAGAMA
TRINCOMALEE
TRINCOMALEE
NIKAWERATIYA
VAVUNIYA
VAVUNIYA
PANDUWASNUWARA
VAVUNIYA
CHETTIKULAM
KURUNEGALA
POLGAHAWELA
VAVUNIYA
VAVUNIYA- NORTH
KURUNEGALA
WARIYAPOLA
VAVUNIYA
VAVUNIYA -SOUTH
KURUNEGALA
YAPAHUWA
MANNAR
MUSELI
MATALE
DAMBULLA
MANNAR
NANATAN
MATALE
LAGGALA
MANNAR
MANDEI-WEST
MATALE
MATALE
MULLATIV
MARATIANPATTU
MATALE
RATTOTA
MULLATIV
PUDUKUDURUPPU
MATARA
AKURESSA
MULLATIV
OTTUSUTAN
MATARA
DENIYAYA
MULLATIV
MANDEI -WEST
KILLINOCHCHI
MATARA
DEVINUWARA
KILLINOCHCHI
MATARA
HAKMANA
KURUNEGALA
KURUNEGALA
KURUNEGALA
KURUNEGALA
KURUNEGALA
KURUNEGALA
KURUNEGALA
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Annex C
Eligibility for the Provision of Goods, Works and Services in World Bank-Financed
Procurement
1. In accordance with Para 1.8 of the Guidelines: Procurement under IBRD Loans and IDA
Credits, dated May 2004, the Bank permits firms and individuals from all countries
to offer goods, works and services for Bank-financed projects. As an exception,
firms of a Country or goods manufactured in a Country may be excluded if:
Para 1.8 (a) (i): as a matter of law or official regulation, the Borrowers Country prohibits
commercial relations with that Country, provided that the Bank is satisfied that
such exclusion does not preclude effective competition for the supply of the Goods
or Works required, or
Para 1.8 (a) (ii): by an Act of Compliance with a Decision of the United Nations Security
Council taken under Chapter VII of the Charter of the United Nations, the
Borrowers Country prohibits any import of goods from that Country or any
payments to persons or entities in that Country.
2.
For the information of borrowers and bidders, at the present time firms, goods and
services from the following countries are excluded from this bidding:
(a)
(b)
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Annex D
Form of Letter Regarding Compliance with Licence(s)
[Month] [Day], 2009Director General
Telecommunications Regulatory Commission of Sri Lanka (TRCSL)
276 Elvitigala Mawatha, Colombo 8,
Sri Lanka
Dear Sir:
Re:
[Insert name of proposed NBN Service Provider or Person falling within one
of
the
categories
listed
in
section
31(e)
of
the
RFPQ]
Compliance with conditions of telecommunications licence
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Form 1.1
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Form 1.2
Articles of Incorporation or Documents of Constitution, and Registration Documents of the legal entity
named above.
In case of a Government owned entity, documents establishing legal and financial autonomy and
compliance with commercial law.
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Form 1.3
Non-Performing Contracts
Year
[insert
year]
Non
performed
portion of
contract
Contract Identification
Pending Litigation:
Matter in Dispute:
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Total Contract
Amount (current
value, US$
equivalent)
[insert amount]
Form 1.4
Financial Situation
[The following table shall be filled in for the Applicant and for each partner of
a Joint Venture]
Year 2
Year 3
Year
Year n
Financial documents
The Applicant and its parties shall provide copies of the balance sheets and/or financial statements for
[number] years. The financial statements shall:
(a) reflect the financial situation of the Applicant or partner to a JV, and not sister or parent
companies.
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-8-
Form 1.5
Information
License Identification
Award date
Completion date
Role in License
[check the appropriate box]
[insert a
If partner in a JV, or subcontractor,
percentage of total
specify financial participation in
investment amount]
total amount
Client's Name: [country where
license issued and licensing
authority]
Address:
Telephone/fax number
E-mail:
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Information
Details of the Similarity between
this License and the proposed
TRCSL NBN license
1.General Scope
2. Key Activities
3. Complexity
4. Methods/Technology
5. Other Characteristics
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