Conformed Copy - L3893 - Antalya Water Supply and Sanitation Project - Supplemental Letter 1

Page 1 July 5, 1995 Dr. Mahfi Egilmez Chief Economic and Commercial Counselor Embassy of the Republic of Turkey 2523 Massachusetts Ave., N.W. Washington, D.C. 20008 Re: Loan No.3893 TU (Antalya Water Supply and Sanitation Project) Local Procurement Procedures Dear Sir: 1. We refer to the provision of Schedule 4, Section I, Part C to the Loan Agreement (Antalya Water Supply and Sanitation Project) of even date herewith between the International Bank for Reconstruction and Development (the Bank) and Antalya Water Supply and Sewerage Authority (the Borrower). We hereby inform you that, for purposes of items to be financed out of the Loan for this Project and for which contracts will be procured pursuant to said provisions, the Bank will consider the sealed Bidding Procedures, as described in the Guarantorþs Bids Law No. 2886 of September 3, 1983, and Law No. 2990 of March 17, 1984, as acceptable, provided that the following are reflected in the application of those procedures: (i) Prospective bidders shall be allowed at least 30 days from the date of the first advertisement to submit bids. (ii) Bids shall not be rejected solely on the grounds that they exceed an þestimated priceþ. In the event that bid amounts are significantly higher than estimated, all relevant information shall be provided to the Bank and the Borrower shall determine, in agreement with the Bank, whether to adjust the specifications and rebid or to negotiate with the lowest evaluated bidder. (iii) The right to challenge procedures followed in connection with the bidding shall be available to all bidders irrespective of whether those bidders or their representatives are present at the bid opening. (iv) No provision for preferential treatment of national companies shall be applied to Bank finance items. (v) Contracts shall be awarded to the bidder whose bid has been determined to be the lowest evaluated bid and who meets appropriate technical standards of capability and financial resources. Bid documents shall specify the relevant factors in addition to price to be considered in bid evaluation and the manner in which they will be applied for purposes of determining the lowest evaluated bidder. (vi) Contracts shall provide for equitable adjustments for overruns or underruns in the originally anticipated scope of the works. 2. Furthermore, it is our understanding that the Borrower will keep the Bank informed or any amendments to Law Nos. 2886 and 2990, and of any new legislation applicable to procurement pursuant to the above mentioned procedures. Very truly yours, Page 2  INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Acting Regional Vice President Europe and Central Asia CONFIRMED: REPUBLIC OF TURKEY By Authorized Representative