Conformed Copy - L4010 - Second Sewerage and Water Re-use Project - Supplemental Letter 2

Page 1 May 30, 1996 The Water and Electricity Distribution Authority of Fes Rue Soudan B.P. 2097 Fes Kingdom of Morocco Re: Loan No. 4010 MOR (Second Sewerage and Water Re-use Project) Procurement: Local Competitive Bidding Procedures for Bank-financed Contracts Excellency: We refer to Section 3.02 of, and Section I, Part C.1 of Schedule 4 to, the Loan Agreement of even date herewith between the International Bank for Reconstruction and Development (the Bank), on the one part, and the Water and Electricity Distribution Authority of Fes (the Borrower), on the other part, for the above-captioned Project (the Loan Agreement). We hereby confirm that, for purposes of said Sections, the procedures set forth below shall be deemed satisfactory to the Bank. Goods and works to be procured in accordance with the provisions of Section I, Part C.1, of Schedule 4 to the Loan Agreement on the basis of competitive bidding, advertised locally, shall be procured exclusively under contracts awarded on the basis of open competitive bidding on the basis of price offers (appel d'offre ouvert sur offre de prix) referred to in Articles 9 (6), 26 and 27 of the Borrower's decree No. 1-76-479, dated October 14, 1976, relating to the procurement of works, goods and services for account of the State, in accordance with the procedures applicable thereto described in the Borrower's Decree No. 209-65, dated October 19, 1965, Decree No. 151-66, dated June 18, 1966, and Decree No. 2-76-479, dated October 14, 1976, provided that: (a) any prospective bidder from a country eligible under the Gu provide goods produced in or supplied from any such country shall be eligible to bid for such contracts; the same principle shall apply to goods required for the carrying out of civil works; (b) prospective bidders shall be allowed at least 30 days from the date of the invitation to bid (avis d'appel d'offre) to submit bids and the invitation to bid shall so specify; (c) prospective bidders shall be required to submit price offers (offre de prix) in their bids and the bidding documents shall so specify; (d) bids shall be opened in public so that bidders or their representatives are allowed to be present at the bid opening, and the invitations to bid shall so specify; (e) if any bidder is not required to provide bid or performance security, an amount equal to the cost of such security, determined according to a methodology acceptable to the Bank, will be added to such bidder's price for the purpose of determining the lowest evaluated bid, and the bidding documents shall so specify; and (f) except as provided in paragraph 2.60 of the Guidelines, no bidder shall be requested or permitted to alter the price or substance of his bid after the first bid has been opened. Page 2 Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Amir Al-Khafaji Acting Regional Vice President Middle East and North Africa