TENDER NO. KETRACO/PT/003/2015 LEASE OF DARK FIBRES ON KETRACO OPTIC FIBRE NETWORK TO LICENCED APPLICATION & CONTENT SERVICE PROVIDERS TENDER DOCUMENT

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1 TENDER NO. KETRACO/PT/003/2015 LEASE OF DARK FIBRES ON KETRACO OPTIC FIBRE NETWORK TO LICENCED APPLICATION & CONTENT SERVICE PROVIDERS TENDER DOCUMENT March, 2015 THE TENDERER IS ADVISED TO READ CAREFULLY THIS TENDER DOCUMENT IN ITS ENTIRETY BEFORE MAKING ANY BID STANDARD TENDER DOCUMENT THE KENYA ELECTRICITY TRANSMISSION COMPANY LIMITED, CAPITOL HILL SQUARE, CHYULU ROAD, UPPER HILL, P.O. BOX , NAIROBI, KENYA. Telephones: Pilot Line Telephones: / Cellular Website: 1

2 Table of Contents SECTION I INVITATION TO TENDER... 3 SECTION II TENDER SUBMISSION CHECKLIST... 4 SECTION III INSTRUCTIONS TO TENDERERS... 4 SECTION IV TENDER FORM AND PRICE SCHEDULES SECTION V DECLARATION FORM SECTION VI CONFIDENTIAL BUSINESS QUESTIONNAIRE SECTION VII TENDER SUBMISSION SCHEDULE SECTION Vlll OPTICAL FIBRE PARAMETER AND PERFORMANCE APPENDIX 1: SPECIFICATIONS FOR LEASE OF DARK FIBRES ON KETRACO OPTIC FIBRE NETWORK

3 SECTION I INVITATION TO TENDER Date: 23 rd March, 2015 TENDER NO. KETRACO/PT/003/2015 LEASE OF DARK FIBRES ON KETRACO OPTIC FIBRE NETWORK 1.1 INTRODUCTION The Kenya Electricity Transmission Company limited (KETRACO) is a state corporation whose mandate is to plan, design, construct, operate and maintain high voltage electricity transmission lines and substations. In the construction of electricity transmission lines, KETRACO incorporates Optical Ground Wire (OPGW) technology for operations. The Company has been granted a Network Facility Provider Tier 2 (NFPT2) license by the Communication Authority of Kenya (CA) to enable the lease of excess fibre to licensed Application and Content Service Providers in Kenya. KETRACO now invites sealed bids from eligible operators to Lease KETRACO Dark Fibre. Tender documents detailing the requirements may be obtained from the office of Manager, Supply Chain during working hours from Monday to Friday between 7.30 a.m. and 4.30 p.m. upon payment of a non refundable fee of Ksh 1, Payment shall be made in cash or by Bankers Cheque at the Cash Office. Interested eligible bidders may obtain further information from; Manager, Commercial Services skamau@ketraco.co.ke Bids in plain envelope clearly marked Tender Reference number KETRACO/PT/003/2015 for lease of dark fibre on KETRACO optical fibre network to licensed Application and Content Service Providers must be delivered to the following address by Tuesday 14 th April 2015 at am and will be opened immediately thereafter at the KETRACO meeting room on 1 st Floor: The Company Secretary / Chief Manager Legal Services Kenya Electricity Transmission Company Limited 2nd Floor, Capitol Hill Square, Chyulu Road, Upper Hill P.O Box Nairobi, Kenya. Tel Or be deposited in the tender box located at KETRACO offices on 2 nd Floor, Capitol Hill Square, Chyulu Road, Upper Hill so as to be received on or before Tuesday, 14 th April 2015 at a.m. Tender documents will be opened immediately thereafter in the presence of the bidders or their representatives who choose to attend and witness the opening. 3

4 SECTION II TENDER SUBMISSION CHECKLIST This order and arrangement shall be considered as the Tender Format. Tenderers shall tick against each item indicating that they have provided it. Table 1 No Item Tick where provided 1 Tender Form and Price Schedule 2 Confidential Business Questionnaire 3 Copy of Company registration certificate 4 Copies of PIN and VAT Registration certificates 5 Copy of valid tax compliance certificate 6 Last financial year s audited financial statements and last financial year s annual tax returns 7 Copy of valid Communication Authority of Kenya license ( Network Facilities Provider or Application Service Provider or International System & Service Provider) 8 Any other document or item required by the Tender Document ( please specify ) 1. Tenderers who are incorporated or registered in the calendar year appearing in the date of the Tender document will submit a Declaration giving details of: - a) Such registration or incorporation, and, b) Inability or otherwise to comply with submission of documents as per note number 1 above. This declaration may be in similar format to the anti-corruption Declaration Form in this tender document (see SECTION V) or any other suitable format. 2. Additionally Tenderers in the category under note number 2 above shall submit appropriate bank statements from date of incorporation or registration, together with any other relevant financial documentation up to date of submission of their Tender, in lieu of those required under note number 1 above. SECTION III INSTRUCTIONS TO TENDERERS 3.1 General Guidelines The following are the general procedures/ guidelines for the lease of the KETRACO Dark Fibres and Collocation Interested bidders will be required to be familiar with the section of the network being leased and consequently the sections they desire to lease The tenderer shall complete the Form of Tender and appropriate Price schedule in SECTION IV of the Tender Document where they will indicate the bid price against the item(s) comprising the lease. 4

5 3.1.3 Tenderers with any record of unsatisfactory or default in performance obligations in any contract shall not be considered for evaluation, award or otherwise. For the avoidance of doubt, this shall include any Tenderer with unresolved case(s) in its performance obligations for more than two (2) months in any contract. 3.2 Contents of Tender Documents KETRACO Dark Fibres shall be leased to the highest bidder as prescribed in this Tender Document. 3.3 Clarification of Documents A prospective tenderer requiring any clarification of the tender document may notify KETRACO in writing or by facsimile at the address indicated in the Invitation to Tender. KETRACO will respond in writing to any request for clarification of the tender documents, which it receives no later than seven (7) days prior to the deadline for the submission of tenders, prescribed in the tender document. Written copies of the response (including an explanation of the query but without identifying the source of inquiry) will be sent to all prospective tenderer(s) that have received the tender document. 4 Amendment of Documents 4.1 At any time prior to the deadline for submission of tenders, KETRACO for any reason, whether at its own initiative or in response to a clarification requested by a prospective tenderer, may modify the tender documents by amendment. 4.2 All prospective tenderers that have received the tender documents will be notified of the amendment in writing, and such amendments will be binding on them. 4.3 In order to allow prospective tenderers reasonable time in which to take the amendment into account in preparing their tenders, KETRACO at its discretion, may extend the deadline for the submission of tenders. B. PREPARATION OF TENDERS 5 Language of Tender 5.1 The Tender prepared by the Tenderer and all correspondence and documents relating to the tender exchanged by the Tenderer and KETRACO, shall be written in the English Language. 6 Documents Comprising the Tender 6.1 The Tender Prepared by the Tenderer shall comprise the items listed in Section II of the tender document. 7 Validity of Tenders 7.1 The Tenders shall remain valid for 90 days or as specified in the tender documents after date of tender opening prescribed by KETRACO. A tender valid for a shorter period shall be rejected as non-responsive. 7.2 In exceptional circumstances, KETRACO may solicit the Tenderer s consent to an extension of the 5

6 Period of validity. The request and the responses thereto shall be made in writing. 8 Tender Price and Currencies 8.1 All Prices shall be quoted in US$. 8.2 The tenderer shall clearly indicate the price offered. 6

7 C. SUBMISSION OF TENDERS 9 Sealing and Marking of Tenders 9.1 The tenderer shall prepare the response both Technical Proposal and Financial Proposal together. The technical proposal shall comprise the response to the tender in general and the response to any other special requirements. The Financial Proposal shall comprise the price schedules and any other financial proposals. 9.2 Two copies of the proposal shall be submitted. Each proposal should be marked Original or Copy as appropriate. If there are any discrepancies between the original and the copies of the proposal, the original will govern. 9.3 Each of the original and the copy of the proposal shall be placed in a sealed envelope clearly marked LEASE OF DARK FIBRES ON KETRACO OPTIC FIBRE NETWORK, Tender No: KETRACO/PT/003/2015, addressed to; The Company Secretary/ Chief Manager, Legal Services The Kenya Electricity Transmission Company Limited Capitol Hill Square, 2nd Floor, Chyulu Road P. O. Box NAIROBI and deposited in the Tender Box situated on the second floor, Capitol Hill Square, Chyulu Road, Upper Hill so as to be received on or before the date and time indicated under SECTION I in the Invitation to Tender. 10 Deadline for Submission of Tenders 10.1 Tenders must be received by KETRACO at the address specified under clause 9 no later than the time and date specified under SECTION I in the Invitation to Tender. 11 Late Tenders 11.1 Any Tenders received by KETRACO after the deadline for submission of tenders prescribed by KETRACO pursuant to Clause 10.1, will be rejected and returned to the Tenderer. 7

8 D. TENDER OPENING AND EVALUATION 12 Opening of Tenders 12.1 The tenders will be opened at the 1 st floor boardroom, Capitol Hill Square, Chyulu Road in the presence of the Tenderers or their representatives who choose to attend. 13 Clarification of Tenders and Preliminary Examination 13.1 To assist in the examination, evaluation and comparison of tenders KETRACO may, at its discretion, ask the Tenderer for a clarification of its tender. The request for clarification and the response shall be in writing and no change in the price or substance of the tender shall be sought, offered or permitted KETRACO will examine the tenders to determine whether they are complete and generally in order to be qualified as sufficiently responsive. 14 Evaluation and Comparison of Tenders 14.1 KETRACO will evaluate and compare the tenders previously determined to be sufficiently responsive pursuant to Clause KETRACO is looking for only one bidder for lease of the two lines mentioned in the Price Schedule. Priority will be given to the highest bidder whose tender shall have been found to be sufficiently responsive. The rest of the bidders shall be considered three months after closure date of the tender. 15 Contacting KETRACO 15.1 Subject to Clause 13 no Tenderer shall contact KETRACO on any matter relating to its tender, from the time of the tender opening to the time the tender is awarded Any effort by a Tenderer to influence KETRACO in the tender evaluation, tender comparison or contract award decisions may result in the rejection of the Tenderer's tender. E. AWARD OF CONTRACT 16 Award Criteria 16.1 The Tender shall be awarded to the highest bidder subject to meeting all the conditions outlined in this Tender document pursuant to Clause KETRACO reserves the right to accept or reject any offer without assigning any reason. 17 Letter of Award 17.1 KETRACO will notify the successful Tenderer through a Letter of Award that it s tender has been accepted before the expiration of the period of tender validity The tenderer s offer, KETRACO s Letter of Award and the lease agreement to be signed pursuant to 8

9 clause 18.2 will constitute the formation of the Contract, and the successful tenderer shall make all the necessary preparations for payment of the contractual amounts as shall have been agreed pursuant to clause Signing of Contract 18.1 At the same time as KETRACO notifies the successful tenderer that its tender has been accepted, KETRACO will send the tenderer a sample lease agreement and the Service Level Agreement (SLA), incorporating all agreements between the parties On the expiry of Seven (7) days after the date of the Letter of Award, the successful tenderer shall be required to sign a lease agreement with KETRACO failure to which KETRACO shall be free to award the offer to other qualifying bidders. 19 Payment 19.1 Terms of Payment The successful tenderer shall be required to: (a) Remit the full payment as follows : (i) KETRACO enters into a contract with the firm for a period of five years renewable. For this period, leased fibre optic cores will be paid quarterly in advance. An annual surcharge of 5% of the leasing price will be made for maintenance. (b) Remit the full annual rental fees for all collocations on signing of the lease agreement. (c) Remit the full annual payment for the equivalent power consumption for the equipment installed after being billed. The calculation for this consumption will be based on market rates in operation. (d) All payments as in a) to c) above shall be invoiced appropriately KETRACO shall invoice in advance the lease and the annual collocation rental fees whenever they fall due pursuant to clause 19.1 above Method of Payment All Payment shall be made by bank transfers or as shall be agreed upon during the signing of the lease agreement. 9

10 SECTION IV TENDER FORM AND PRICE SCHEDULES (i) Form of Tender Date: To: The Kenya Electricity Transmission Company Ltd., P. O. Box , Nairobi. Tender No: KETRACO/PT/003/2015 Gentlemen and/or Ladies: 1. Having examined the tender documents including Tender No. KETRACO/PT/003/2015, the receipt of which is hereby duly acknowledged, we, the undersigned, offer to LEASE OF DARK FIBRES ON KETRACO OPTIC FIBRE NETWORK in conformity with the said tender documents for the sum of.. [total tender amount in words and figures] or such other sums as may be ascertained in accordance with the Schedule of Prices attached herewith and made part of this Tender. 2. We undertake, if our Tender is accepted, to Lease the dark fibres in accordance with the schedule specified in the Schedule of Requirements. 3. We agree to abide by this Tender for a period of Ninety (90) days from the date fixed for tender opening invitation to tender, and it shall remain binding upon us and may be accepted at any time before the expiration of that period. 4. We understand that you are not bound to accept the highest or any tender you may receive. Dated this day of 20. [Signature] [In the capacity of] Duly authorized to sign tender for and on behalf of 10

11 (ii) PRICE SCHEDULE Name of tenderer: Tender Number: KETRACO/PT/003/2015 Table 2: Price Schedule No Route Distance in Kilometers 1 Rabai Galu 47 2 Rabai- Malindi Garsen-Lamu 328 No. of cores required Offered Price per core per Km (US $) (VAT Exclusive) The total distances will be agreed upon but the unit price should be firm. NB: The lines shall be leased out as complete route as specified above and nothing in between. Collocation facilities Area in m² required Unit Price US$ (VAT exclusive) Equipment space Construction space Total Recurrent per annum (US$)(VAT Exclusive) Note: 1. KETRACO plans to construct a Point 0f Presence (POP) inside its substations compound where clients will connect their equipment. The clients will install their own cooling systems. However this will depend on the availability of construction space. 2. Where KETRACO equipment space is available, the lessor shall not be allowed to construct separate facility. 3. Construction space shall be available in units of 2.25m². Equipment space shall be available in unit area of 6m². 4. Where applicable, in case of price discrepancies, the unit price shall govern. 5. All prices should be inclusive of VAT. 6. The offers for each section shall be evaluated independently. Signature of tenderer: 11

12 Date SECTION V DECLARATION FORM To: The Kenya Electricity Transmission Company Limited, Capitol Hill Square, Chyulu Road, Upper Hill, P.O Box , Nairobi, KENYA. Ladies and Gentlemen, The Tenderer i.e. (full name and complete physical and postal address) declare the following: a) That I/ We have not been debarred from participating in public procurement by any body, institution or person. b) That I/ We have not been involved in and will not be involved in corrupt and fraudulent practices regarding public procurement anywhere. Yours sincerely, Name of Tenderer Signature of duly authorized person signing the Tender Name and Capacity of duly authorized person signing the Tender Stamp or Seal of Tenderer 12

13 SECTION VI CONFIDENTIAL BUSINESS QUESTIONNAIRE You are requested to give the particulars indicated in Part 1 and either Part 2 (a) 2 (b): or 2 (c) whichever applies to your type of business. Attach copies of Registration Certificate, trade License, PIN and VAT Certificate. You are advised that it is a serious offense to give false information on this form. Part I General: Business Name. Location of business Premises.. Plot No Street/Road. address: Postal address: Fax No.. Tel No Nature of business Current Trade License No. Expiry Date.. Name of your Bankers. Branch: 13

14 Part 2 (a) Sole Proprietor Your name in full Age Nationality Country of origin Citizenship details Part 2 (b) Partnership Give details of partners as follows: Name Nationality Citizenship Details Shares

15 Part 2 (c ) Registered Company Private or Public State the nominal and issued capital of company: Nominal Kshs or other convertible currency Issued Kshs or other convertible currency Give details of all directors as follows : - Name Nationality Citizenship Details Shares Give details of all major stakeholders ( 10% holding as follows :- Name Nationality Citizenship Details Shares Date:.. Signature of Candidate 15

16 SECTION VII TENDER SUBMISSION SCHEDULE In addition to meeting other requirements in this tender, the following details should be provided. Tender submissions shall be arranged and bound as follows: Table 4: Checklist Document Section No. Item Comments 1. Tender Form and Price Schedule 2. Confidential Business Questionnaire 3. Statement and/or evidence of compliance to the special requirements as outlined in APPENDIX 1 4. No. of routes needed/ No. of fibres needed per route 5. Copy of Company Registration certificate 6. Copy of Trade License 7. Copy of PIN Certificate 8. Copy of VAT Certificate 9. Copy of valid Communication Authority of Kenya license (Network Facilities Provider License or Application Service Provider or International System & Service Provider) 10. Other Relevant Documentation 16

17 SECTION Vlll OPTICAL FIBRE PARAMETER AND PERFORMANCE The OPGW cables will have 12 (twelve), 24 (twenty-four) or 48 (forty-eight) single mode optical fibres with following characteristics some of which have been confirmed at factory. Transmission wavelength: 1310 nm and 1550 nm Mode field diameter 9.0 to 11.5 micrometers (µm), including tolerances Optical cladding diameter: 125µm ± 2.4% Cable Attenuation: not greater than 0.38 db/km for every fibre in every drum at optical wavelength of 1310 nm: and not greater than 0.25 db/km for every fibre in every drum at optical wavelength of 1550 nm. Joint attenuation: not greater than 0.1 db at optical wavelength of 1310 nm and not greater than 0.2 db at 1550 nm for every 1550 nm for every fibre measured on the fully installed joint Total dispersion: not greater than 3.5 ps/km.nm at optial wavelength of 1300nm and not greater than 19.0 ps/km.nm at optical wavelength of 1550 nm Core numerical aperture: less than 0.23 Life span: greater than 30 years No joints allowed in any fibre in any drum length. Discontinuities will be acceptable if: Less than 0.10 db in magnitude measured at 1310 nm. And OTDR traces from both ends of the cable at 1310 and 1550 nm wavelength show a difference of less than 0.05 db/km for every fibre in every drum. 17

18 APPENDIX 1: SPECIFICATIONS FOR LEASE OF DARK FIBRES ON KETRACO OPTIC FIBRE NETWORK SPECIAL REQUIREMENTS: Introduction 1. KETRACO having been duly issued with a NETWORK FACILITY PROVIDER- TIER 2 LICENCE by CA, has now developed a telecommunications business that rides on its extensive power transmission and distribution lines across the country. The telecommunications network provides the company with a near-limitless opportunity to deliver a complete line of telecommunications products that is able to meet the ever increasing bandwidth demand for voice, data and video for its customers. 2. Scope of services KETRACO currently has fibre routes to offer to customers. The routes, type and distance are shown below. Table 5: Route Distance and Type Route Distance (KM) Route Type Technology Rabai Galu 47 Premium OPGW Rabai- Malindi Garsen-Lamu 328 Premium OPGW NB: The lines shall be leased out as complete route as specified above and nothing in between. Firms may take one or more of the routes so long as they indicate so. The routes can be picked up from any of the originating or destination locations at the respective sub stations. 3. Terms of lease KETRACO will only lease each dark fibre pair for periods of 5 years as outlined in Table Identification The successful firm shall clearly use its trade mark at the terminations to identify the dark fibre they lease and any other equipment/equipment box they may possess. 18

19 5. Number of Fibres and the Routes The firm shall indicate the number of fibres being leased and the routes interested in. A sketch of the intended network should be enclosed. 6. Permissions and Approvals The bidder contracted shall be required to obtain solely at their own expense from all authorities, permissions, consents, licenses and approvals from the relevant bodies from time to time regarded as necessary for carrying out its services and as lawfully required and make any fees due to any authority as their service may demand. 7. Request to Install and Response The firm shall be required to submit a request of not less than seven (7) days in advance of the proposed date of terminal installation and configuration, detailing and specifying precisely by means of clear drawings which route and particular node of connection. A proposed Schedule of Installation should be provided. The request must show clearly the equipment and fittings that are to be installed and their power consumption for the purposes of power consumption billing. A Type Approval certificate from Communication Authority of Kenya must also be availed for all the equipment to be installed. 8. Term of Payment The tenderer shall make payments as follows: a. Pay quarterly in advance for 5 year contract. b. Pay full rental fees for all collocations on signing the lease agreement. An annual surcharge of 5% of the leasing price will be made for maintenance. 9. Maintenance/Work Quality KETRACO shall have the right to maintain service, replace or change the type of any power tower supporting the dark fibres upon giving sufficient notice to the network service providers. No cost of shut down shall be charged to KETRACO. However, breakdown cases may arise and will be handled as such. 10. Equipment Power Consumption The firm shall ensure that the power consumed by all the equipment installed are determined beforehand, applied for and paid for in advance of the installation. This implies that any equipment to be used and requires power shall have its power consumption expressly determined and an estimated annual consumption computed and billed by the Finance department at KETRACO. If separate metering is required, then this can be applied for normally. The equipment consumption and powering must meet KETRACO standards. The primary A.C power available shall be 240V (+10%, -15%); 50HZ at single phase outlets. 19

20 11. Connection Connection from the KETRACO s ODF termination box to the Tenderer s equipment shall be carried out by the bidder. 12. Safety and Norms The safety and norms to be applied: a) International standards will be employed in the connections the firm will make. b) All installations shall be of the appropriate standard approved by KETRACO; 13. Insurance The lessee shall insure himself and KETRACO against any cost of damage to KETRACO and all claims by third parties (including and without limitation to the employees of KETRACO) arising out of or in any way directly or indirectly connected with the existence, installation, removal, maintenance, use or misuse of the optic fibre cables. Such insurance shall be with an insurance company approved by KETRACO and shall be in terms and against such risks as KETRACO may from time to time require; The bidder shall provide KETRACO on demand copies of all policies and of all receipts for premiums in respect of insurance as herein specified. 14. Indemnity The bidder shall indemnify and hold harmless KETRACO and its employees against any and all damages, expenses and claims payable to or made by third parties (including the employees of KETRACO) whether for personal injury, injury to property or otherwise howsoever against KETRACO (or against any of the employees of KETRACO) arising out of or so connected with the existence, installation, removal, maintenance, use or misuse of any cable or equipment, including all costs incurred by KETRACO in defending any such claims or in mitigating or reducing any such damage or expense. 15. Trespassing Under no circumstances whatsoever shall staff of the lessee or any of their employees trespass upon any KETRACO facilities in the substations, including power lines, without the express prior written permission of KETRACO, and such consent may not be reasonably withheld. 16. Commencement of lease The contract for the Lease of the dark fibre is expected to commence within 30 days after Award or as stated in the Letter of Award. 20