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PRE-QUALIFICATION DOCUMENT (PQD)

INSTRUCTIONS TO PROSPECTIVE APPLICANTS

FOR PREQULIFICATION OF FIRMS / COMPANIES / CONSORTIA

FOR THE PROJECT TITLED “DEVELOPMENT & OPERATIONS OF QUARRY(IES) AND CRUSHING OF STONE/CONSTRUCTION RAW MATERIAL ON RAISING & LIFTING

SYSTEM AT SHAHEENABAD AND CHAK 113 SB (SIKHANWALI), DISTRICT SARGODHA”

PUNJAB MINERAL DEVELOPMENT CORPORATION

GENERAL MANAGER (TECHNICAL), PUNJAB MINERAL DEVELOPMENT CORPORATION

2ND FLOOR, ALFALAH BUILDING, SHAHRAH-E-QUAID-E-AZAM (THE MALL), LAHORE, PUNJAB, PAKISTAN

PH: +92-042-99205195 Email: punjmin.gmt@gmail.com

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Disclaimer

This Prequalification Document ("PQD") has been prepared by Punjab Mineral Development Corporation ("PUNJMIN" or the "Client") and it constitutes no commitment on the part of PUNJMIN to enter into any arrangements with any person / entity. PUNJMIN reserves the right to withdraw from or cancel the process or any part thereof or to vary any of its terms at any time without giving any reason whatsoever. No financial or other obligation whatsoever shall accrue to PUNJMIN in such an event. The information contained in this PQD or subsequently provided to Applicants, whether verbally or in documentary or any other form by or on behalf of PUNJMIN or any of its authorized employees or advisors, is provided to them on the terms and conditions set out in this PQD and such other terms and conditions subject to which such information is provided.

This PQD does not constitute an agreement; its sole purpose is to provide interested parties with information that may be useful to them in submitting their Expressions of Interest ("EOIs") pursuant to issuance of this PQD. Any document and information submitted in response to this PQD becomes the property of PUNJMIN and PUNJMIN does not accept any responsibility for maintaining the confidentiality of the material including any trade secrets or proprietary data submitted to PUNJMIN.

PUNJMIN shall not be responsible for non-receipt of correspondence sent by post/courier/email/fax. No decision should be based solely on the basis of the information provided in this PQD. PUNJMIN has no liability for any statements, opinions or information provided in this PQD.

In submitting an EOI in response to this PQD, each Applicant certifies that it understands, accepts and agrees to the disclaimers set forth above. Nothing contained in any other provision of this PQD nor any statements made orally or in writing by any person or party shall have the effect of negating or suspending any of the disclaimers set forth in this disclaimer.

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TABLE OF CONTENTS

DEFINITIONS AND INTERPRETATIONS ....................................................................................................5

SUBMISSION LETTER ......................................................................................................................................7

SECTION - A: INFORMATION TO APPLICANTS .......................................................................................9

SECTION - B: TERMS OF REFERENCE .......................................................................................................14

SECTION - C: INSTRUCTIONS TO APPLICANTS .....................................................................................17

SECTION - D: SUBMISSION AND EVALUATION OF EOIs .....................................................................20

SECTION - E: FORMATS .................................................................................................................................27

SECTION - F: ANNEXURES ............................................................................................................................33

ANNEXURE – 1 POWER OF ATTORNEY FROM APPLICANT IN FAVOUR OF ITS AUTHORIZED

SIGNATORY ......................................................................................................................................................34

ANNEXURE – 2 POWER OF ATTORNEY BY APPLICANT MEMBERS IN FAVOUR OF LEAD

APPLICANT MEMBER ...................................................................................................................................35

ANNEXURE – 3 AFFIDAVIT …....................................................................................................................36

ANNEXURE – 4 PARENT COMPANY LETTER OF COMFORT ...........................................................37

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DEFINITIONS AND INTERPRETATIONS

In this PQD, unless the context otherwise requires, the following terms shall have the meanings set forth below:

1. Definitions

1.1. “Applicable Laws” means all laws and orders promulgated or brought into force and effect by a Government Authority, including regulations and rules made there under, and judgments, decrees, injunctions, writs and orders of any court of law, as may be in force and effect during the subsistence of the Project Agreement.

1.2. "Applicant" means a Firm, Company, Consortium, participating in the Prequalification Process for the Project. The term Applicant has been interchangeably used with the term "Firm / Company / Consortium" in this PQD.

1.3. “Client” or "PUNJMIN" means Punjab Mineral Development Corporation. 1.4. "Consortium" means a group of entities submitting a joint EOI for participating in the

Prequalification Process for the Project. 1.5. “Contractor(s)” means the selected bidder(s) with whom the Project Agreement(s)

shall be signed for the Project. 1.6. "EOI" means an Expression of Interest submitted by an Applicant, in accordance with

the guidelines provided in the PQD, for participating in the Prequalification Process for the Project.

1.7. "EOI Submission Date" is defined in paragraph 1.3 of Section - D of this PQD. 1.8. "Firm, Company, Consortium" means an entity participating in the Prequalification

Process for the Project. 1.9. “Government” means the Federal Government of Pakistan, the Government of Punjab,

and the relevant local, provincial & Federal Government authorities and public sector corporations therein.

1.10. “Government Agency” means a department, attached department, body corporate, autonomous body of the Government, local government or any organization or corporation owned or controlled by the Government;

1.11. “Government Authority(ies)” means any person or entity exercising executive, legislative, regulatory, administrative or judicial functions of any Government.

1.12. “PPRA Rules” means the Punjab Procurement Rules, 2014, as may be amended from time to time.

1.13. "Project" means the “Development & operations of quarry(ies) and crushing of stone/construction raw material on Raising & Lifting System at Shaheenabad and Chak 113 SB (Sikhanwali), District Sargodha”.

1.14. “Project Agreement” means the legally binding written agreement to be signed between the Client and the Contractor(s).

1.15. “Raising & Lifting System” means a system in which a Contractor is appointed through competitive bidding process for development of quarry(ies) in a particular area/block at its own cost and risk and after completion of the development, excavates the mineral / stone / construction raw material from the quarry(ies) at its own cost and risk. The excavated and then crushed mineral / stone / construction raw material in this system is lifted by the Contractor for per ton sale price of mineral / stone / construction raw material (inclusive of all grades and qualities of excavated and crushed raw material) through an agreement with PUNJMIN which will include relevant royalty and agency charges. The quantum of activities of quarrying & crushing will be verified preferably by third party, to the settlement of commercial relationship between the Contractor and the PUNJMIN. The Contractor will perform all the activities of value chain including quarrying and crushing and at the end of the value chain (after product comes out of crusher and loaded on truck), the sale purchase settlement will be done between the

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Contractor and PUNJMIN, preferably involving third party validation. The detailed features will be available in RFP which will be issued to Pre-qualified Applicants.

1.16. “Terms of Reference” (TOR) means the document included in this PQD as Section - B which explains the Scope of Work of the Contractor(s), including activities and tasks to be performed by the Contractor(s).

2. Interpretations

In this PQD, unless the context otherwise requires:

2.1 any reference to a statutory provision shall include such provision as is from time to time modified or re-enacted or consolidated so far as such modification or re-enactment or consolidation applies or is capable of applying to any transactions entered into hereunder;

2.2 the words importing singular shall include plural and vice versa, and words denoting natural persons shall include partnerships, firms, companies, consortium, corporations, joint ventures, trusts, associations, organizations or other entities (whether or not having a separate legal entity);

2.3 the headings are for convenience of reference only and shall not be used in, and shall not affect, the construction or interpretation of this PQD;

2.4 the words "include" and "including" are to be construed without limitation;

2.5 any reference to any period of time shall mean a reference to that according to Pakistan Standard Time;

2.6 any reference to day shall mean a reference to a calendar day;

2.7 any reference to month shall mean a reference to a calendar month;

2.8 any reference to GoPb shall mean Government of the Punjab;

2.9 the Annexure to this PQD or any Addenda issued later on to clarify matters, if any, form an integral part of this PQD and will be in full force and effect as though they were expressly set out in the body of this PQD;

2.10 unless otherwise stated, any reference to any period commencing "from" a specified day or date and "till" or "until" a specified day or date shall include both such days or dates;

2.11 any reference to "Prequalification Process" shall mean the entire process commencing from the invitation of EOIs until prequalification of Applicants;

2.12 any reference to "Bidding Process" shall mean the entire process for selection of Contractor(s) commencing from issuance of Request for Proposals (RFP) to prequalified Applicants until signing of Project Agreements;

2.13 any reference to "Contractor(s)" shall mean the selected bidders(s) with whom Project Agreement will be signed;

2.14 Net Worth means the value of total assets less total liabilities of the entity concerned at the end of a financial year.

2.15 Gross Annual Revenues / Turnover / Sales means the value of gross revenues / turnover / sales of the entity concerned for a given financial year as mentioned in its financial statement for that year.

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SUBMISSION LETTER

(This letter shall be submitted by the Applicant or Lead Member, in case of a Consortium, on its letter head)

Date: Month, Day, Year

General Manager (Technical),

Punjab Mineral Development Corporation,

2nd Floor, Alfalah Building, Shahrah-e-Quaid-e-Azam (The Mall),

Lahore.

Dear Sir,

SUBJECT: PREQUALIFICATION OF APPLICANT FOR THE PROJECT TITLED “DEVELOPMENT & OPERATIONS OF QUARRY(IES) AND CRUSHING OF STONE/CONSTRUCTION RAW MATERIAL ON RAISING & LIFTING SYSTEM AT SHAHEENABAD AND CHAK 113 SB (SIKHANWALI), DISTRICT SARGODHA”

The undersigned, being duly authorized to represent and act on behalf of (Applicant), applying to be prequalified for the Project cited above, is pleased to enclose one (1) original (together with two printed copies and one electronic copy) of our EOI in accordance with the terms set forth in the PQD and declare the following:

a. We have examined and have no reservations to the PQD issued;

b. We agree to comply with all the tender rules, laws and regulations governing the tender as issued by Client from time to time;

c. We accept the exclusive application of the federal laws of Pakistan and provincial laws of Punjab with respect to procedures laid down in the PQD;

d. We accept the right of the Client to (i) request additional information reasonably required to assess the EOI, (ii) amend the procedures and rules or make clarifications thereof, and (iii) extend or amend the schedule of the Prequalification Process and the Bidding Process;

e. We understand that you may cancel the Prequalification Process at any time and that you are not bound either to accept any Application that you may receive or to invite the prequalified Applicants for the subject Project;

f. Prequalified Applicants will be subjected to verification of all information submitted for prequalification at any time during the Prequalification Process;

g. [Name of Applicant] hereby represents and warrants that as of the date of this letter:

i. All the information submitted is accurate in all respects; ii. (Applicant) has not been subject to any voluntary or involuntary bankruptcy or

insolvency or similar proceeding during the last five (5) years; and iii. (Applicant), has paid all taxes due, except those which are being contested in good

faith by appropriate proceedings and for which adequate reserves have been established.

Capitalized terms used which have not been defined herein shall bear the meaning ascribed to them in the PQD.

PUNJMIN and its authorized representatives may contact the following person(s) for further information, if needed:

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Name:

Phone #:

Cell #:

Email:

The undersigned declares that the information provided and the statements made in this EOI are complete, true and correct in every detail.

Signature of Authorized Signatory: _____________________________

Name and Title of Signatory: _____________________________

Name of Firm / Company / Consortium: _____________________________

Address: _____________________________

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SECTION - A: INFORMATION TO APPLICANTS

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1. PROJECT DEVELOPMENT PROCESS AT A GLANCE The sequence of activities to be performed during the Prequalification Process and Bidding Process is provided below for comprehension of the way forward leading to award of contract for the Project:

Prequalification Process

(i). Invitation of EOIs including issuance of Prequalification Document (PQD);

(ii). Pre-Submission meeting with prospective Applicants;

(iii). Submission of EOIs;

(iv). Opening and evaluation of EOIs;

(v). Prequalification of Applicants.

Bidding Process

(i). Issuance of Request for Proposal (RFP) to the prequalified Applicants;

(ii). Pre-bid meeting;

(iii). Submission of proposals including Bid Bond;

(iv). Opening and evaluation of technical proposals;

(v). Opening of financial proposals (of the Firms / Companies / Consortium with technically responsive proposals);

(vi). Notice of award to successful bidder(s) through issuance of letter of acceptance;

(vii). Placement of Performance Security and release of Bid Bond; and

(viii). Signing of Project Agreement(s).

2. PROPOSED SCHEDULE

PUNJMIN shall endeavor to adhere to the following schedule during the Prequalification Process:

Event Description Date

Prequalification Process

Issuance of Prequalification Document (PQD) July 21, 2016

Pre-submission meeting with prospective Applicants (Venue: Clients Office at 11:00 AM)

July 26, 2016

Submission of EOIs August 05, 2016

Evaluation of EOIs

August 15, 2016

Prequalification of Applicants August 16, 2016

Bidding Process

Issuance of Request for Proposal (RFP) to the Prequalified Applicants

August 17, 2016

Pre-bid Meeting August 24, 2016

Submission of Proposals including Bid Bond September 02, 2016

Opening of Technical Proposals September 02, 2016

Evaluation of Technical Proposals September 16, 2016

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Opening of Financial Proposals September 19, 2016

Notice(s) of Award through Issuance of Letter(s) of Acceptance

September 29, 2016

Signing of Project Agreement(s) September 30, 2016

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3. INTRODUCTION AND BACKGROUND OF THE PROJECT

PURPOSE

The purpose of this Prequalification Document (PQD) is to invite Expressions of Interest (EOIs) from the prospective Applicants for their prequalification for the Project. The prequalified Applicants will be invited to participate in the Bidding Process for award of contract(s) for the Project. Information regarding the Project is set forth below:

BRIEF INTRODUCTION

3.1. Mineral Potential in Punjab

Punjab is the largest province of Pakistan with 53% contribution in national GDP whereas Punjab’s Gross Regional Product is approximately USD 132.95 billion (PKR 13,532 billion). The Minerals of Punjab provide the resource base of its Industrial Sector. There are 35 Minerals under Excavation Including coal, iron ore, limestone, gypsum, rock salt etc. by 2300 Entrepreneurs. The Government of Punjab has issued 56 Industrial Leases to large Corporations/Multinationals for industrial production of cement, soda ash, caustic soda, fertilizer, glass and ceramics etc. Moreover, Punjab has the World’s largest rock salt deposits in Salt Range.

3.2. The Client: Punjab Mineral Development Corporation (PUNJMIN)

The Client (PUNJMIN) is an autonomous body working under Mines & Minerals Department, Government of the Punjab, Pakistan, which was established under the Punjab Mineral Development Corporation Act No. XXXIII of 1975 and it has the mandate for minerals development in the province of Punjab. It has been actively involved in exploration, development, exploitation and sale of various minerals in Punjab since its inception in 1975.

PUNJMIN possesses various mining leases of different minerals in the province of Punjab, where it has developed quarries & underground mines and carrying out productions successfully since more than three decades and meeting the raw material requirement of the different industrial units of the country.

3.3. Background of the Project

The construction & installation of mega projects in Punjab, i.e., CPEC, various Power Plants and Motorways etc., has created a massive demand of construction raw material (crush stone). The Government of Punjab intends to ensure stable supply of crush stone to Government driven mega Projects in Punjab through PUNJMIN.

PUNJMIM is expecting grant of two sandstone leases in Saheenabad and Chak 113 SB (Sikhanwali), district Sargodha. The Client intends to engage Firm(s) / Company(ies) / Consortium / Consortia that has/have been contracted in any mega project in Punjab by a Government Agency or subcontracted by a contractor engaged by a Government Agency in a mega project in Punjab, as Contractor(s), to develop & operate quarry(ies) and carry out crushing of construction raw material on Raising & Lifting System at Shaheenabad and Chak 113 SB (Sikhanwali), District Sargodha, at their own cost and risk, to meet the construction raw material requirements of its/their respective Government driven mega project(s) in Punjab.

3.4. Location/ logistics information of the Project areas

(i) Shaheenabad and Chak 113 SB (Sikhanwali) areas are located in district Sargodha and are very well connected with rest of the Punjab province through road and railway network;

(ii) Quarrying and crushing of construction raw material is already being carried out in the vicinity;

(iii) Skilled / semi-skilled manpower and labor is abundantly available in the areas, as stone mining is already being carried out in the vicinity.

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3.5. Justification for the Project

The following justify the Project to be undertaken: -

(i) There is a massive demand in the market for construction raw material (crush), especially for mega projects in Punjab, i.e., CPEC, various Power Plants and Motorways;

(ii) The Project will produce a price control mechanism for construction raw material, in the crush market;

(iii) The Project will help in meeting the construction raw material requirements of the mega projects and will facilitate the contractors of these projects with ensured supplies.

3.6. Objective for selection of Firm(s) / Company(ies) / Consortium / Consortia to undertake the Project

PUNJMIN intends to engage, through a competitive bidding process, Firm(s) / Company(ies) / Consortium/ Consortia that has/have been contracted in a mega project in Punjab by a Government Agency or subcontracted by a contractor engaged by a Government Agency in a mega project in Punjab, whereby the minimum cost of that particular single mega project is Rs. 40 billion & the minimum stone/construction raw material (crush stone) to be utilized for the mega project by the contractor/subcontractor is 4000 tons/day. The Firm(s) / Company(ies) / Consortium/ Consortia should have the capability and preferably sufficient experience of quarry/mine development and / or quarry/mine operation along with stone crushing to undertake the Project till the completion of its / their respective mega project(s), in accordance with the Project Agreement(s) to be signed between PUNJMIN and the selected bidder(s).

3.7. Pre-submission Meeting

PUNJMIN intends to hold a Pre-submission Meeting with the prospective Applicants to analyze any changes in Scope of Work that they would like to propose. The meeting will be convened at the Client’s office [2

nd Floor, Alfalah Building, Shahrah-e-Quaid-e-Azam

(The Mall), Lahore] at 11:00 AM (Pakistan Standard Time) on July 26th,

2016. The prospective Applicants are encouraged to send their queries/comments/observation (in writing) on this Prequalification Document (PQD) to the Client latest by July 25

th, 2016.

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SECTION - B: TERMS OF REFERENCE

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1. SCOPE OF WORK OF THE PROJECT

The indicative Scope of Work of the Project to be executed by the Contractor(s) includes, but is not limited, to the extent summarized below:

i. Prepare & provide to the Client for its approval, the development / working plan of the quarry(ies) to be developed in the allotted area / block, installation of crushing plant(s), construction of road & other infrastructure, building etc.

ii. Construct road & other infrastructure, buildings etc. required for the quarry(ies)

operation(s) and carry out all maintenance work at its own risk & cost;

iii. Initiate & conduct the development of the quarry(ies) by deploying mine / excavation machinery at its own risk & cost as per approved development / working plan in compliance with all applicable laws including but not limited to Mines Act, 1923 and Rules and Regulation made there under;

iv. Arrange and install the stone crushing plant(s) having minimum stone crushing capacity of 4000 tons / day at or near quarry(ies) site(s) at its own risk and cost for crushing of stone / construction raw material;

v. Arrange technical & supervisory staff for the development of the quarry(ies), excavation /

production of stone / construction raw material from the quarry(ies) and crushing of the

same at its own risk & cost;

vi. Arrange electricity and other utilities for its crushing plant(s) and other uses at its own risk and cost;

vii. Upon completion of development of quarry(ies) and installation of crushing plant(s), intimate the Client or its Project Manager or PUNJMIN’s authorized representative;

viii. Conduct excavation / production of stone / construction raw material from the quarry(ies), transport all the excavated / produced stone / construction raw material to the crushing plant(s) and carry out crushing of the same at its own risk & cost;

ix. Pay salaries & other benefits to its employees and provide all kind of treatment for illness

or injuries to any of its employees, as and when required;

x. Get all the expenses, incurred during the course of quarry(ies) development, excavation /

production of stone / construction raw material and crushing of the same, periodically

verified from the Mine Manager of the area and hand over a copy to Project Manager of

the Client. It is clarified that the Client will get the details of the expenses for record only

and not for any claim, payment or reimbursement from Client on account of these

expenses;

xi. Lift all the crushed stone / construction raw material, as per agreed sale price and terms

& conditions under the Agreement(s) to be signed between the Contractor(s) and the

Client;

xii. The quantum of activities of quarrying & crushing will be verified preferably by third party,

to the settlement of commercial relationship between the Contractor and the PUNJMIN.

The Contractor will perform all the activities of value chain including quarrying and

crushing and at the end of the value chain (after product comes out of crusher and

loaded on truck), the sale purchase settlement will be done between the Contractor and

PUNJMIN, preferably involving third party validation.

xiii. Furnish daily, weekly, fortnightly and monthly progress / production & crushing reports to the Client or its authorized representative on agreed formats, during the course of development of the quarry(ies), installation of crushing plant and the production phases, according to work plan. NOTE: Please note that the above Scope of Work is indicative only and detailed Scope

of Work will be provided in Request for Proposal (RFP) that will be issued to the prequalified Applicants.

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2. REQUISITE QUALIFICATION AND EXPERIENCE OF THE APPLICANT

The Applicant will furnish to the Client, the detail of its profile, strengths, experience as well as relevant experience of its supervisory staff of mine / quarry development and / or mine / quarry operation and stone crushing plant operations for evaluation, as per the formats provided in this Prequalification Document.

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SECTION - C: INSTRUCTIONS TO APPLICANTS

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1. INSTRUCTION TO APPLICANTS

1.1. Language of EOI

The EOI and any related information will be written in English language for the ease of comprehension and comparability. Additionally, any original or pre-printed information (e.g. brochures) furnished by the Applicant may be written in its native language, provided that it is accompanied by a certified translation of its pertinent passages in English.

1.2. Costs

The Applicant shall bear all the costs and expenses associated with the preparation and submission of its EOI, including, without limitation, all costs and expenses related to Applicant's preparation of responses to questions or requests for clarification issued by the Client.

1.3. Evaluation Requirements

If the Applicant is a Consortium, it shall clearly indicate, in its EOI, which Consortium member(s) are to be evaluated for each such criteria. In case, it does not specify the same, the Lead Member of the Applicant will be considered for evaluation.

1.4. Applicant Lead Members

An Applicant may be a single entity or may take the form of a Consortium comprising of companies, firms, corporate bodies or other legal entities.

Each Consortium Applicant shall appoint and authorize one (1) lead member ("Lead Member"), through submission of duly executed Power of Attorney in the form set forth in Annexure-2 of Section - F of this PQD, to represent and irrevocably bind all members of the Applicant in all matters connected with the Prequalification Process, including but not limited to the submission of the EOI on behalf of the Applicant.

1.5. Consortium Participation Restrictions

No Applicant may prequalify if it owns more than five per cent (5%) of the shares (directly or indirectly, in terms of voting rights and/or rights to dividends) of another Applicant.

No Applicant may prequalify if it has any representative on the Board of Directors of another Applicant.

No Firm or Applicant member may prequalify if any of the Client’s advisors or external consultants, holds any shares or has any representatives in the Board of Directors of the Applicant.

Notwithstanding the foregoing, an Applicant may prequalify if it can present evidence reasonably satisfactory to the Client that, arrangements have been established such that any such cross shareholdings do not materially affect the independent decisions of the Applicant in which such cross shareholding exists.

1.6. Ineligibility of an Applicant

If an Applicant has been barred by any Central, State or local government or government instrumentality in Pakistan or in any other jurisdiction to which the Applicant belongs or in which the Applicant conducts its business, from participating in any project, and the bar subsists as on the EOI Submission Deadline, such entity shall not be eligible to submit an EOI.

1.7. Prequalification Criteria

Each Applicant's general and particular profile, strengths, experience, personnel, machinery & equipment, and financial position, as demonstrated by the Applicant's responses in the prescribed forms will be evaluated as per prequalification criteria given in this PQD. The Client reserves the right to waive minor deviations, if these do not materially affect the capability of an Applicant to perform the contract.

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1.8. Partnering between Prequalified Applicants

Any prequalified Applicant shall be precluded from partnering (directly or indirectly) with another prequalified Applicant without the express written approval of the Client, who shall be free to accept or refuse at its discretion, and in all cases taking into account the likely effects of the proposed partnering on the competitiveness of the Bidding Process.

1.9. Partnering between Prequalified Applicant and Non-Prequalified Applicant

Non-prequalified Applicant shall not be entitled to partner with a prequalified Applicant.

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SECTION - D: SUBMISSION AND EVALUATION OF EOIs

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1. SUBMISSION OF EOI

1.1. Format and Signing of the EOI

The EOI shall be submitted in triplicate (one original and two copies) and one electronic copy (on DVD or USB drive) placed in a sealed envelope clearly marked EOI for the Project titled “Development & operations of quarry(ies) and crushing of stone/construction raw material on Raising & Lifting System at Shaheenabad and Chak 113 SB (Sikhanwali), District Sargodha”.

The EOI shall be signed by a duly authorized representative of the Applicant. The EOIs shall include a Power of Attorney (Annexure - 1 of Section - F of this PQD) authorizing such representative to sign and submit the EOIs to PUNJMIN on behalf of the Applicant. Authorized representative of Applicants shall make initials on each page of EOI.

The Applicant may modify, substitute or withdraw its EOI after submission, provided that written notice of the modification, substitution or withdrawal is received by PUNJMIN prior to the EOI Submission Date. No EOI shall be modified, substituted or withdrawn by the Applicant on or after the EOI Submission Date. The modification, substitution or withdrawal notice shall be prepared, sealed, marked, and delivered with the envelopes being additionally marked “MODIFICATION”, “SUBSTITUTION” or “WITHDRAWAL”, as appropriate. Any alteration/ modification in the EOI or additional information supplied subsequent to the EOI Submission Date shall be disregarded.

1.2. Sealing and Marking of EOI

The Applicant shall seal the original EOI and each copy in separate envelopes and shall mark the envelopes as "Original" and "Copies" (all duly marked as required herein). The envelopes shall be sealed in an outer envelope. The inner and outer envelopes shall be addressed to the Client (PUNJMIN) at the following address:

General Manager (Technical),

Punjab Mineral Development Corporation,

2nd

Floor, Alfalah Building, Shahrah-e-Quaid-e-Azam (The Mall), Lahore.

PH: +92-042-99205195

The inner and outer envelopes shall each bear the words: EOI for the Project titled “Development & operations of quarry(ies) and crushing of stone/construction raw material on Raising & Lifting System at Shaheenabad and Chak 113 SB (Sikhanwali), District Sargodha”.

The outer envelope shall indicate the name and address of the Applicant to enable the relevant EOI to be returned unopened in the event that it is declared "late".

If the outer envelope is not sealed and marked as required, the Client will assume no responsibility for any misplacement or premature opening of the EOI.

1.3. Deadline for Submission of EOIs

EOIs shall be submitted to the Client at the address specified above no later than 14:00 hrs. PAKISTAN TIME, August 5

th, 2016 (the "EOI Submission Date").

Any EOI submitted after the EOI Submission Date shall be rejected and shall be returned unopened to the Applicant.

PUNJMIN may, at its discretion, extend the EOI Submission Date by amending this PQD, and in such case, all rights and obligations of PUNJMIN and the Applicants subject to the previous deadline shall thereafter be subject to the deadline as extended.

1.4. Addendum

At any time prior to the Submission Date of EOIs, the Client may amend this PQD by issuing addenda. Any addendum issued shall be part of this PQD and shall be

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communicated through email or other suitable means as decided by PUNJMIN to all who have requested to obtain this PQD in pursuance to the advertisement inviting EOIs.

2. EVALUATION OF EOI

2.1. Preliminary Examination of EOIs

The Client will carry out a preliminary examination of each EOI to determine whether it is complete, whether the documents have been properly signed, and whether it is generally in order.

Where the Client deems it convenient or necessary, it may request supplementary information or documentation from an Applicant for determining its eligibility for prequalification. Whenever such request is made, the Applicant shall provide the same to the Client by such date as may be specified by the Client.

Any EOI found to be non-responsive may be rejected by the Client and not included for further consideration.

2.2. Evaluation of EOIs

The Client will carry out a detailed evaluation of the EOIs that have not been rejected after the preliminary examination. Subsequently, the Client will examine the information provided by the Applicant in the EOI for its prequalification to be done in accordance with prequalification criteria specified in the following pages.

Applicant whose EOI is determined by the Client to be substantively responsive thereby meeting the prequalification criteria specified shall be invited to participate in the next stages of the Bidding Process.

Applicant whose EOI is determined by the Client to be substantively non-responsive thereby not meeting the prequalification criteria specified shall be disqualified from participating in the Bidding Process.

Verification of the information provided by the Applicant in the EOI submitted for prequalification may be made in such manner as the Client may decide.

2.3. Test of Responsiveness

Prior to detailed evaluation of EOIs, PUNJMIN shall determine whether each EOI is responsive to the requirements of this PQD. An EOI shall be considered responsive only if:

i. It is duly signed and each page is initialed on behalf of the Applicant by the duly authorized representative;

ii. In case of a contractor, it is accompanied by a letter from the relevant Government Agency confirming that the prospective Applicant is a contractor on a current Government driven mega project in Punjab and the cost of that particular single project is at least Rs.40 Billion with a minimum stone/construction raw material (crush) requirement of 4000 tons/day for the same mega project; OR In case of a subcontractor, it is accompanied by a letter from the contractor of a Government driven mega project (with a project cost of at least Rs.40 Billion) in Punjab confirming that the prospective Applicant is a subcontractor of the same mega project and the subcontractor’s minimum stone/construction raw material (crush) utilization for the same mega project is 4000 tons/day. In addition, it is accompanied by a letter from the relevant Government Agency that the above mentioned contractor has been engaged for a current Government driven mega project in Punjab and the cost of that particular single project is at least Rs.40 Billion with a minimum stone/construction raw material (crush) requirement of 4000 tons/day for the same mega project;

iii. It is prepared and received as per the formats and Annexure given in Section – E and Section – F of this PQD;

iv. It is received by the EOI Submission Date including any extension thereof, if any;

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v. It is sealed and bound together in hard cover and marked as stipulated in the above clauses;

vi. It is accompanied by completed Form – 4 of Section – E of this PQD along with supporting documents;

vii. It is accompanied by the Power(s) of Attorney in accordance with Annexure – 1 and Annexure - 2 of Section – F of this PQD;

viii. It is accompanied by the Affidavit in accordance with Annexure – 3 of Section - F of this Prequalification Document (PQD);

ix. It is accompanied by Parent Company Letter of Comfort (if applicable) in accordance with Annexure – 4 of Section - F of this PQD; and

x. It does not contain any condition i.e. it is unconditional.

PUNJMIN reserves the right to reject any EOI which is non-responsive and no request for alteration, modification, substitution or withdrawal shall be entertained in respect thereof.

2.4. Invitation for Request for Proposal (RFP)

At the end of evaluation activity, the Client will issue RFP to the prequalified Applicants for participating in the next stages of the Bidding Process. Moreover, if the prequalified Applicant is a Consortium, it shall not change the structure of the Consortium for participating in the Bidding Process without the prior written consent of the Client.

3. PREQUALIFICATION CRITERIA

The maximum marks are 100 with the following weightage distribution:

(i) Weightage for technical criteria is 80% (ii) Weightage for financial criteria is 20%

Minimum 50% marks for each section / segment of technical and financial criteria are required for prequalification. Cumulative/Aggregate (technical + financial) prequalifying marks after assigning above mentioned weightages will be 65%.

Final Score for prequalification shall be calculated as follows:

Prequalification Score

Marks obtained in Technical Criteria x (0.80) – A

Marks obtained in Financial Criteria x (0.20) – B

Total Score (A+B) This score should be exceeding 65 for an Applicant to prequalify.

3.1. Technical Criteria

The following technical criteria shall be used to prequalify the Applicants:

A. Applicant's Profile, Strengths and Experience

B. Profile of Proposed Team

C. Machinery and Equipment

Prequalification of Applicants will be done on the basis of score obtained out of 100 according to the following table:

Evaluation Areas Maximum Score Obtained Score

A. Applicant's Profile, Strengths and Experience 60

B. Profile of Proposed Team 20

C. Machinery and Equipment 20

Total = 100

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Minimum qualifying score in each sub section will be 50% for the Applicant to prequalify in technical criteria.

A. Applicant's Profile, Strengths and Relevant Experience

Total Marks = 60

Criteria Range Max. Marks (60 Marks)

Marks Obtained

i. The Applicants will be awarded following marks in respect of the requirement of construction raw material (crush stone) of the Government driven mega project in Punjab with a project cost of at least Rs. 40 billion for that particular single project:

a) When the project’s minimum construction raw material (crush stone) requirement is 4000 tons/day

b) When the project’s requirement of construction raw material (crush stone) is more than 4000 tons / day but less than 10000 tons / day

c) When the project’s requirement of construction raw material (crush stone) is more than 10000 tons / day but less than 15000 tons / day

d) When the project’s requirement of construction raw material (crush stone) is more than 15000 tons / day

ii. Overall experience of the Firm / Company / Consortium regarding mine / quarry development and / or mine / quarry operation

iii. Overall experience of the Firm / Company / Consortium

regarding operations of stone crushing plant

Maximum 30 marks will be awarded Maximum 35 marks will be awarded Maximum 40 marks will be awarded Maximum 45 marks will be awarded Three (3) marks will be awarded for one year of experience with a capping of nine (9) marks Two (2) marks will be awarded for one year of experience with a capping of six (6) marks

60

Note: i. The Firms / Companies / Consortia will submit details of their mega project’s daily requirement of

construction raw material (crush stone), project period and experience of mine / quarry development and / or mine / quarry operation as well as operations of stone crushing plant in Form-1 (Section-E).

The Client may request the Applicants to provide supporting evidence to substantiate their experience in mine / quarry development and/or mine/quarry operation and operations of stone crushing plant.

B. Profile of Proposed Team Total Marks = 20

Criteria Marking Scheme Max. Marks (20 marks)

Marks Obtained

Project Manager/Team Leader: B. Sc. or equivalent degree

from a recognized institution with 10 years experience at mine /

quarry and/or stone crushing plant.

Each year of relevant experience will carry 0.50 mark

5

Quarry Manager: B. Sc. or equivalent degree in Mining

Engineering from a recognized institution with 5 years relevant

experience of mining/quarrying.

Each year of relevant experience will carry 0.60 mark

3

Mechanical Engineer: B. Sc. or equivalent degree in

Mechanical Engineering from a recognized institution with 5

years relevant experience of handling mine/quarry machinery

and/or stone crushing plants.

Each year of

relevant experience

will carry 0.60 mark

3

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Electrical Engineer: B. Sc. or equivalent degree in Electrical

Engineering from a recognized institution with 3 years relevant

experience of handling electrical installations.

Each year of

relevant experience

will carry 1.00 mark

3

Explosive Engineer: B. Sc. or equivalent degree in Mining

Engineering from a recognized institution with 3 years relevant

experience of explosive handling.

Each year of

relevant experience

will carry 1.00 mark

3

Safety Engineer: B. Sc. or equivalent degree from a recognized

institution with 3 years relevant experience as Safety Engineer.

Each year of

relevant experience

will carry 1.00 mark

3

Note: Each Team member shall fill Form -2 to demonstrate his/her experience.

C. Machinery & Equipment

Total Marks = 20

Criteria Range Max. Marks

(20 Marks)

Obtained

Score

Mine/Quarry/Stone Crushing Plant Machinery &

Equipment (Maximum Marks - 20)

1. Downhole Drill Machine with Compressor or Hydraulic System

2. Dumper

3. Excavator

4. Loader

5. Generator

6. Appropriate stone crushing plant capable of

crushing at least 4000 tons/day

2 marks for each machine with capping of 4 marks

1 mark for each Dumper with capping of 6 marks

1 marks for each Excavator with capping of 2 marks

1 marks for each Loader with capping of 2 marks

1 mark for each Generator with capping of 2 marks

4 marks

4 6 2 2 2

4

Note: Each Applicant shall fill Form -3 to demonstrate its Machinery & Equipment capabilities.

3.2. Financial Criteria

Prequalification of Applicants will be done on the basis of score obtained out of 100 according to the following table:

Evaluation Areas Maximum

Score Obtained

Score

Applicant's Financial Strength:

A. Average Net Worth

B. Average Gross Annual Revenue / Sales / Turnover

50

50

Total 100

Minimum qualifying score in this section will be 50% for the Applicant to prequalify in financial criteria.

i. Net Worth means the value of total assets less total liabilities of the entity concerned at the end of a financial year.

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The Applicant Firms/Consortia shall provide information regarding the above, based on the annual financial statements for the last three (3) full financial years including the consolidated balance sheet, income statement, statement of cash flows and the accompanying notes. Further elaboration regarding financial capability has been given below.

ii. Gross Annual Revenues/Turnover/Sales means the value of gross revenues/turnover/sales of the firm/consortium concerned for a given financial year as mentioned in its financial statement for that year.

iii. Financial Capability - Submission of Evidence from Parent Company The Firm and if it is a Consortium then the relevant Consortium member, may choose to present financial statements of the Parent Company to satisfy financial criteria. For purposes of the above, “the Parent Company” means any corporate entity controlling the Applicant Firm, or if the Applicant Firm is a Consortium, the relevant Consortium member, and "Control" means having, directly or indirectly, a majority of the voting securities and a majority representation in the Board of Directors (or other similar constituent body) of the given corporate entity. In case the Applicant Firm, or if the Applicant Firm is a Consortium, the relevant Consortium member, chooses to present financial statements from a Parent Company, it shall submit, in addition to all other documentation required by this Prequalification Document with respect to the Parent Company. In such cases, the Parent Company shall guarantee to the Client the Applicant Firm's financial obligations under the Project Agreement. For purposes of the above, the Parent Company shall provide an executed letter of support in the form attached in Annex 4 (Parent Company Letter of Comfort). NOTE:

i. Each Applicant shall fill Form - 4 to express its Financial Strength.

ii. For Conversion of Net Worth and Annual Revenues of the Firm/Consortium into PKR (Pakistan Rupees), the Exchange Rate of USD 1 = PKR 105 would be applied.

iii. The AVERAGE of last three years for net worth and gross annual revenues, as determined from the annual financial statements of the firms/consortia (for the last three years) would form the BASIS for marking/ranking during evaluation process.

Applicant's Financial Strength Total Marks = 100

Criteria Range Max. Score Obtained Score

A. Average Net Worth Total Marks = 50

Average Net Worth Up to PKR 1 Billion 30

Exceeding PKR 1 Billion 50

B. Average Gross Annual Revenue/Sales/Turnover

Total Marks = 50

Average Gross Annual Revenue

Up to PKR 5 Billion 30

Exceeding PKR 5 Billion 50

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SECTION - E: FORMATS

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FORM – 1: PROFILE, STRENGTHS AND EXPERIENCE

Applicants shall provide the details of its project’s cost, project period, daily requirement of construction raw material (crush stone), experience of mine / quarry development and/or mine/quarry operation and operations of stone crushing plants using the below Form:

1. 1.

Name of Firm / Company / Consortium:

2. Government driven mega project title:

3. Government driven mega project cost:

4. Government driven mega project period (including start and completion dates):

5. Daily requirement of construction raw material (crush stone) for Government driven mega project:

6. Details of mine/quarry developed and/or operated by the Firm / Company / Consortium:

Experience of mine/quarry development and/or mine/quarry operation (years):

7. Details of stone crushing plants operated by the Firm / Company / Consortium:

Experience of stone crushing plant operations (years):

Note: The Client may ask any Applicant to demonstrate its experience along with suitable evidence thereof to facilitate evaluation under this section. The Applicant shall provide confirmation of mega project cost and minimum construction raw material (crush stone) requirement as per item ii of sub-clause 2.3 “Test of Responsiveness” of Section D.

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FORM – 2: RELEVANT PROJECT PERSONNEL

Title of Position:

Personnel Information

Name: Date of birth:

Education/Qualification:

Profession experience (Years):

Present Employment

Name of employer:

Address of employer:

Telephone: Contact (Manager / Personnel Officer):

Fax: E-mail:

Job title / Position: Years with present employer:

Please summarize professional experience in reverse chronological order. Indicate particular technical and managerial experience relevant to the proposed Project.

Serial # Project Name

From To Particulars

1 Company Name: Position Held: Work Done on the project:

2 Company Name: Position Held: Work Done on the project:

Note: The Applicant shall not change the proposed team for the project while submitting its Technical Proposal except with prior written approval of the Client.

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FORM – 3: MACHINERY AND EQUIPMENT

The Applicant shall provide adequate information to demonstrate clearly that it has owned/leased/rented machinery and equipment (mentioned in the Prequalification criteria of this PQD) required for the development/Installation & operations of quarry(ies) and stone crushing plants. The Applicant may be required to provide appropriate supporting evidence for the machinery and equipment.

Detail of Machinery and Equipment:

Machinery &Equipment Information

Name of Manufacturer and Model

Specification

Current Status (Owned/Leased/Rented)

Current location

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FORM – 4: FINANCIAL STATUS

a. Summarize the required financial data in the form below, based on annual financial

statements for the latest three (3) financial years.

b. For Conversion of Net Worth, Gross Annual Revenue/Turnover/Sale of the Applicant into PKR (Pakistan Rupees), the Exchange Rate of USD 1 = PKR 105 will be used.

Particulars Latest Year 1 Year 2 Year 3 Average

1. Net Worth

2. Gross Annual Revenue

Note: The Applicant shall fill this table based on the annual financial statements, which statements shall be submitted by the Applicants with their EOIs duly translated in English language from a certified translator.

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FORM – 5: LITIGATION HISTORY Applicants shall provide information on any history of litigation or arbitration resulting from contracts executed in the last five years or currently under execution. A consistent history (50% or more) of award against the Applicant may result in rejection of the application. A. Decided Litigation:

Year Award For or Against Applicant

Name of client, cause of litigation, and matter in dispute

Disputed amount (Current value Pak Rs. or equivalent)

B. Pending Litigation:

Year Matter in Dispute Value of Pending Claim in Pak Rs. or Equivalent

Value of Pending Claim as a Percentage of Net Worth

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SECTION - F: ANNEXURES

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ANNEXURE – 1 POWER OF ATTORNEY FROM APPLICANT IN FAVOUR OF ITS AUTHORIZED SIGNATORY

Date:

Power of Attorney Know all men by these presents, We___________________ name and address of the registered office) do hereby constitute, appoint and authorize Mr./ Ms. ___________________ name and residential address) who is presently employed with us and holding the position of ___________________ as our attorney, to do in our name and on our behalf, all such acts, deeds and things necessary in connection with or incidental to our EOI for Prequalification of Applicants for the Project titled “Development & operations of quarry(ies) and crushing of stone/construction raw material on Raising & Lifting System at Shaheenabad and Chak 113 SB (Sikhanwali), District Sargodha”, including signing and submission of all documents and providing information / responses to the Punjab Mineral Development Corporation (PUNJMIN), representing us in all matters before PUNJMIN, and generally dealing with PUNJMIN in all matters in connection with the Project. We hereby agree to ratify all acts, deeds and things lawfully done by our said attorney pursuant to this Power of Attorney and that all acts, deeds and things done by our aforesaid attorney shall and shall always be deemed to have been done by us. Signature of Authorized Attorney _____________________________ Name and Title of Attorney: _____________________________ Name of Firm: _____________________________ Address: _____________________________

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ANNEXURE – 2 POWER OF ATTORNEY BY APPLICANT MEMBERS IN FAVOUR OF LEAD APPLICANT MEMBER

Power of Attorney Whereas, the Punjab Mineral Development Corporation (PUNJMIN) has invited EOIs from interested parties for their Prequalification of Applicants for the Project titled “Development & operations of quarry(ies) and crushing of stone/construction raw material on Raising & Lifting System at Shaheenabad and Chak 113 SB (Sikhanwali), District Sargodha”. Whereas, the undersigned members of the Applicant are interested in prequalification for the above mentioned Project in accordance with the terms and conditions of the Prequalification Document (PQD). Whereas, it is necessary under the PQD for the members of the Applicant to designate one of them as the Lead Member with all necessary power and authority to do for and on behalf of the Applicant and its members, all acts, deeds and things as may be necessary in connection with the Applicant’s EOI for the Project. NOW THIS POWER OF ATTORNEY WITNESSETH THAT; We, M/s. __________________ M/s ________________ and M/s ________________ (the respective names and addresses of the registered office) do hereby designate M/s ________________ being one of the members of the Applicant, as the Lead Member of the Applicant, to do on behalf of the Applicant and all its members, all or any of the acts, deeds or things necessary or incidental to the Applicant’s EOI for the Project, including submission of EOI, responding to queries, submission of information / documents and generally to represent the Applicant in all its dealings with PUNJMIN, any other Government Agency or any person, in connection with the Project until culmination of the process of prequalification. We hereby agree to ratify all acts, deeds and things lawfully done by the Lead Member pursuant to this Power of Attorney and that all acts deeds and things done by our aforesaid attorney shall and shall always be deemed to have been done by us/Applicant. Dated this the _______Day of ________201___ (Executants) Signature of Authorized Attorney _____________________________ Name and Title of Attorney: _____________________________ Name of Firm: _____________________________ Address: _____________________________ (To be executed by all the members of the Applicant)

Note: The mode of execution of the Power of Attorney should be in accordance with the procedure, if any, lay down by the applicable law and the charter documents of the executant(s) and when it is so required the same should be under common seal affixed in accordance with the required procedure.

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ANNEXURE – 3 AFFIDAVIT Date: The General Manager (Technical), Punjab Mineral Development Corporation (PUNJMIN), 2

nd Floor, Alfalah Building, Shahrah-e-Quaid-e-Azam (The Mall),

Lahore. We, [insert name of Applicant] hereby represent and warrant that, as of the date of this letter: a. are not in bankruptcy or liquidation proceedings;

b. have not been convicted of, fraud, corruption, collusion or money laundering; and

c. are not aware of any conflict of interest or potential conflict of interest arising from prior or existing contracts or relationships which could materially affect its capability to comply with the obligations in respect of the subject Project for which prequalification is being done.

We further represent and warrant that all information and documentation submitted as part of our Expression of Interest is true and accurate.

We have also attached a clearance certificate duly attested by the chamber of commerce / registration authority evidencing registration (if applicable). Yours sincerely, Signature of Authorized Signatory _____________________________ Name and Title of Signatory: _____________________________ Name of Firm/Company/Consortium: _____________________________

Address: _____________________________

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ANNEXURE - 4 PARENT COMPANY LETTER OF COMFORT Date: Month, Day, Year

The General Manager (Technical), Punjab Mineral Development Corporation (PUNJMIN), 2

nd Floor, Alfalah Building, Shahrah-e-Quaid-e-Azam (The Mall),

Lahore. Sub: PREQUALIFICATION OF APPLICANT FOR THE PROJECT TITLED “DEVELOPMENT &

OPERATIONS OF QUARRY(IES) AND CRUSHING OF STONE/CONSTRUCTION RAW MATERIAL ON RAISING & LIFTING SYSTEM AT SHAHEENABAD AND CHAK 113 SB (SIKHANWALI), DISTRICT SARGODHA”

Dear Sir, We refer to the prequalification document ("Prequalification Document") issued by the PUNJMIN, dated ....................., inviting prequalification applications from prospective Applicants for the Project titled “Development & operations of quarry(ies) and crushing of stone/construction raw material on Raising & Lifting System at Shaheenabad and Chak 113 SB (Sikhanwali), District Sargodha”. According to the Prequalification Document (Financial Capacity - Submission of Evidence from Parent Company), the Applicant Firm, or if the Applicant Firm is a Consortium, at least one of the Consortium members, may choose to present financial statements from a Parent Company to satisfy Financial Criteria. For this purpose, the "the Parent Company" means any corporate entity Controlling the Applicant firm, or if the Applicant firm is a consortium, the relevant consortium member, and "Control" means having, directly or indirectly, a majority of the voting securities and a majority representation in the Board of Directors (or other similar constituent body) of the given corporate entity. In consideration of the above, we hereby confirm and undertake that: i. we are the Parent Company of [name of subsidiary], which is seeking to prequalify for

the Project as [Applicant firm/consortium Member]; and ii. we will make available sufficient funds [name of subsidiary] to enable it to meet its

obligations as and when these arise as a result of this pre-qualification process and its subsequent outcome.

Yours faithfully, [Name of Parent Company] By: ___________ Name: ___________ Title: ___________ (Authorized signatory)