Tender: Public calls for competitive bids for 60% shares in SHAGASHA Tea Company

                                           INVITATION TO BID

Title: Invitation to bid for acquisition of 60% shares in SHAGASHA Tea                   Company

Since the last 17 years, the Government of Rwanda has embarked on an institutional and economic reform program aimed at modernizing the Rwandan economy and expanding the role of the private sector in driving sustained economic development. In collaboration with various economic partners, the Government has implemented key macro-economic and trade liberalization reforms, as well as a comprehensive privatization program, that have yielded significant results. Since 2005, the Rwandan economy has grown at an annual average rate of 8.6% leading to a rapid and successful socio-economic development and the tea sector has played a very big role in the above success despite the need and opportunity to be upgraded.

The primary aim of the Government in privatizing the tea sector is to:

-        Attract suitable buyers with adequate expertise and financial means to facilitate the much needed investment, sector expansion, sector growth and generation of employment;

-        Disengage the state from commercial activities in the tea sector and consequently removing the burden on the government to directly or indirectly provide resources for this sector;

-        Ensure local farmers benefit from the privatization process;

-        Ensure fair and equitable treatment of employees in the privatization process;

-        Achieve a sale outcome which contributes to competitive, sustainable economic activity and regional development;

It is in that context that the Government of Rwanda represented by the Rwanda Development Board, invites local and international tea factory operators or consortia that are reputable and competent to acquire the bidding documents and submit their bids for the acquisition of 60% shares in the SHAGASHA Tea Company.

The current shareholding in SHAGASHA Tea Company is as follows:

-        Coopthé Mulindi: 20%

-        Thé Villageois ( COTHEVM): 10%

-        Government of Rwanda represented by OCIR THE: 70% of which 60%is being privatized.

 Interested reputable bidders will note the following:

1. The bids well written, appropriately bound and presented in four (4) copies of which one is original and three in duplicates/copies, being rejected otherwise, must be submitted, under sealed package, to the Head of Department, Assets and Business Management, Rwanda Development Board at Nyarutarama Road, Gishushu P.O. Box 6239 Kigali-Rwanda not later than  1^st February 2012 at 03.00 p.m. local time

2. Field visits will be arranged by the Rwanda Development Board from  8th December  to 25^th  January 2012 upon on request by interested Investors;

3. The bids will be opened at a public meeting on 1^st February 2012 at 03.00 p.m. local time in RDB's Board room located on 5th floor.

4. The bid will be presented in  a package containing three envelopes, one for  Eligibility Requirements documentation, the second for the technical proposal and the last for the financial proposal;

The proposals must have at least three months validity from the 1^st February 2012.

Only the technical bids that will have scored at least 70% will be qualified for financial consideration, the Government will first negotiate with the preferred bidder, who will be determined as having the most interesting bid in accordance with article 12.2 of the Bid Regulations.

The bids shall be presented in one of the official languages of the Republic of Rwanda: English, French or Kinyarwanda.

The whole set of bidding documents can be obtained at the RDB Head Office / HoD A&BM upon presentation of the proof of payment of a non-refundable amount equivalent to USD 500 into the account number 320 00 33 “Privatization Proceeds” at the National Bank of Rwanda (BNR) or the equivalent in Rwandan francs on bank account number 120.01.80 “Privatisation proceeds” (BNR). 

Address: BNR

Paul VI, avenue,

P.O. Box 531

Kigali-Rwanda

Website: www.bnr.rw

Swift code: BNRWRWRW

In addition, bidders are required to pay on the same account number at the BNR a Bid Security of $200,000 or providing an equivalent of a bid guarantee from a recognized bank. Proof of payment shall be included into the Eligibility Requirement package. This bid security will be refunded to unsuccessful bidders.

For more clarifications email: daniel.ufitikirezi@rdb.rw and copy to clare.akamanzi@rdb.rw.

 

Done in Kigali, 1^st of December 2011

 

Dr. Daniel UFITIKIREZI

Ag. Chief Finance Officer

Rwanda Development Board