TERMS OF REFERENCE (TOR) FOR THE EQUIPMENT AND … · P a g e | 1 TERMS OF REFERENCE (TOR) FOR THE EQUIPMENT AND SERVICES REQUIRED to convert polyurethane foam manufacturing process

RFP NO. 1100139125, Section II – Terms of Reference

P a g e | 1

TERMS OF REFERENCE (TOR) FOR THE EQUIPMENT AND SERVICES

REQUIRED to convert polyurethane foam manufacturing process in the domestic

refrigerator and sandwich panel sector

Iran HCFC Phase-out Management Plan (HPMP) Stage II

150200

1. Background

UNIDO is jointly implementing a project in the Islamic Republic of Iran on

hydrochlorofluorocarbons (HFCFs) phase-out management plan Stage II funded by the

Multilateral Fund for the Implementation of the Montreal Protocol, together with UNDP, GIZ

and UNEP. The overall objective of the project is to assist the country in complying with the

adjusted control schedule for Annex – C Group-I substances (HCFCs) under the Montreal

Protocol. UNIDO has been assigned to be responsible mainly for the foam sector for the

domestic refrigerator manufacturing and procurement of equipment for the refrigeration

servicing training centers.

2. Project description: HPMP Stage-II (2016 to 2023)

The Government of Iran proposes to use low GWP hydrocarbon (HC) based technologies in

the foam sector wherever feasible. The Government of Iran, after careful and thorough

consultations with the industry, recognizes the importance of safety while adopting flammable

alternatives in different applications and, in their strategy, supports measures to ensure that the

alternatives are adopted in a safe manner. Under the proposed project plan, the Government of

Iran would phase-out HCFCs in different applications in the further explicated manner.

3. Scope and conditions

3.1. Scope of the project

The Terms of Reference (TOR) describe the equipment and services that shall be provided by

the selected supplier and also describe the responsibilities of each party.

A list of 23 small and medium-sized manufacturing companies (“Beneficiary companies”,

“Beneficiaries”) in the foam sector are to be supported to phase out 305.6 metric tons HCFC

consumption. Beneficiaries are categorized into two Groups based on the required technology.

Name of the beneficiaries and expected technology in each Group are as below:

Group I: The conversion from HCFC-141b to normal or cyclopentane technology shall

be performed at the following four Beneficiary companies

• Parto Shiva Sanat, Company (Berta) in Jajrood, Iran

• Javaheran Tehran company in Tabriz, Iran


P a g e | 2

• Takran Mobared (East Cool) in Qom, Iran

• Fanavari Novin Shiller, Yazd, Iran

(Companies No.1 to No.4, indicated in Table 1 and 2 below)

A three-party contract will be issued to be signed by UNIDO, the supplier, and each

Beneficiary company.

Group II: Nineteen small manufacturing companies should be converted to use

ozone friendly blowing agents namely to use either preblended polyurethane with

n-pentane or other suitable blowing agents for small companies such as water

blown, Methyl formate etc., shall be performed at Beneficiary companies No.5 to

No. 23, as indicated in Table 2 below.

Note 1: It is expected that at least 8 companies in Group II, including Evans

manufacturing industry, Charmahali, Novin broudat enjemad, Sanaye Bard

(Selen) and 4 others, will be supported for using preblended polyurethane with

n-pentane (table 1). For the rest of the companies, the supplier should choose

the most cost-effective technology for using preblended polyurethane and

pentane or water blown, Metil formate etc.

Bidders are expected to propose five separate offers:

I. Four technical and financial offers for Group I (one per beneficiary company)

should be submitted, in accordance with the requested services and equipment

indicated in Appendix 1. Technical offers should include:

• A detailed description of every major equipment item,

• Detailed and itemized cost breakdown,

• Sustainability of foams produced by the offered equipment and proposed

input materials explained,

• Safety measures intended to apply,

• Tentative layout(s) just for Group I, and

• Indication of options which are included in this TOR (additionally, in case

of options which are not included in the TOR are proposed, they should be

included separately), and items which are not included in the scope of supply

and/or in the price of the offer but required/recommended by the supplier,

should be explicitly listed, indicated and budgeted where deemed

appropriate.

All deviations from the Terms of Reference should be clearly indicated and

explained in the offer. Partial and/or not binding offers or offers without

indication of the name of the original equipment manufacturer (if not

identical to the bidder itself) of major equipment items will be rejected.

II. One offer should be submitted, applicable for all 19 beneficiary companies in Group

II. The offer shall consider that: a) at least 8 companies shall be supported with a


P a g e | 3

high-pressure (HP) machine using preblended polyurethane with n-pentane (C5) ;

b) and for the other 11 beneficiary companies, it is asked to suggest the best options

among suitable blowing agents for small beneficiaries such as using preblended

polyurethane with Pentane, or other sustainable lower flammable blowing agents

including water blown, Methyl formate etc.

General technical specification and requested services of HP machines for using

preblended polyurethane with pentane and water blown is provided in Appendix 2.

3.2. Conditions

• Site visits during the tender period are not allowed to bidders. Basic information

regarding the capacity, type of products, photos and videos of current equipment and

geographical location of beneficiaries of Group II are provided for bidders and will be

shared/updated during the tendering period.

• It should be noted that the contract can be issued including the full list of beneficiary

companies or partially. An offer shall be submitted for the full list of beneficiary

companies.

• In case that any of the beneficiaries among Group II lose their eligibility by the time of

signing the contract, the budget allocated for the non-eligible companies may be re-

allocated for the companies using preblended polyurethane with pentane. provided that

the total cost (USD/kg HCFC phase out) be kept under the threshold or it should be

deducted from the total budget.

• One of the companies in Group I, (Takran Mobared) is co-financing to implement the

complete conversion project. Two different offers are requested for this company. One

offer considering one HP machine with two heads, and another offer including two HP

machines. More details are provided in Appendix 1, part C.

• The cost of the whole project should not be above 6.02 USD/kg HCFC phase out. This

criterion is subject to the budget, which is provided by the Multilateral Fund for the

Implementation of the Montreal Protocol (MLF).

[Note: For beneficiary company Takran Mobared only USD 110,000 of the total cost will be considered

in calculating the total CE., which is the amount that is budgeted from the MLF for the project, additional

costs to be co-financed by the Takran Mobared.]

• The offers should carefully consider the use of the existing equipment, presently used

for production, to complete the conversion within the limited budget.

• A three-party contract will be issued for all companies in Group II to be signed by

UNIDO, the National Ozone Office in Iran, and the supplier.

Table 1 Groups, number of beneficiaries and requested technologies

Groups Group I Group II


P a g e | 4

Technology Cyclopentane Pre-blended C5 with

Polyurethane

Pre-blended C5 with

Polyurethane /

WB/MF/etc

1.Parto Shiva Sanat 5. Evans manufacturing 13. TBD

Beneficiaries

2.Javaheran Tehran 6. Charmahali 14. TBD

3.Takran Mobared (please see

3.2 Conditions)

7. Novin Broudat Enjemad 15. TBD

4. Fanavari Novin Shiller 8. BARD Sanaye(SELEN) 16.TBD

9.TBD 17. TBD

10.TBD 18. TBD

11.TBD 19. TBD

12.TBD 20. TBD

21. TBD

22. TBD

23. TBD


P a g e | 5

Table 2 list of beneficiaries and their location

# Sector Name of Company

HCFC

141b

(MT)

Technology

(based on blowing agent) City

Group I

1 DRF Javaheran Tehran 19 Cyclopentane Tabriz

2 DRF Parto Shiva Sanat 19 Cyclopentane Jajroud

3 DRF Takran Mobared (East Cool) 48.5 Cyclopentane Qom

4 DSW Fanavari Novin Shiller 24.3 n-Pentane Yazd

Group II

5 DSW EVANS industrial Manufacturing 20 Preblended PU with C5 Tehran

6 DRF Charmahali (Arvindey) 29.2 Preblended PU with C5 Hamedan

7 DRF Novin boroodat enjemad 35 Preblended PU with C5 Babol

8 DRF BARD Sanaye (SELEN) 4 Preblended PU with C5 Tehran

9 DRF Farsan Sanat Pasargad Co. 3.7 Preblended PU with C5/ WB/MF/etc Qods-Tehran

10 DRF Yakhnoosh 8.4 Preblended PU with C5/ WB/MF/etc Tehran

11 DRF Asayesh Neishaboor 11 Preblended PU with C5/ WB/MF/etc Neishabour

12 DRF Roshan Industrial Co. 13.8 Preblended PU with C5/ WB/MF/etc Tehran

13 DRF Sanaye Boroudati Nasr 10 Preblended PU with C5/ WB/MF/etc Isfahan

14 DSW Javad Hasani (Sandwich panel Delijan) 16 Preblended PU with C5/ WB/MF/etc Delijan

15 DSW Alborz Damakaran 1 Preblended PU with C5/ WB/MF/etc Damavand-

Tehran

16 DSW Lirok 6 Preblended PU with C5/ WB/MF/etc Abyek

17 RIG Khouzestan technique 7.1 Preblended PU with C5/ WB/MF/etc Ahwaz

18 INT Isfahan Dashboard 2 Preblended PU with C5/ WB/MF/etc Isfahan

Group II (conditional companies)

19 INT Royan Polymer Co. (II Phase) 12 Preblended PU with C5/ WB/MF/etc Saveh

20 DRF Sarshar boroudat (Sonya) 9.4 Preblended PU with C5/ WB/MF/etc Tehran

21 RIG Technodar Co. 0.5 Preblended PU with C5/ WB/MF/etc Tehran

22 INT Abr Avaran 2.7 Preblended PU with C5/ WB/MF/etc Tehran

23 DRF Jaleh Negin Group 3 Preblended PU with C5/ WB/MF/etc Zahedan

PU: Polyurethane

WB: Water Blown

MF: Methyl Formate


P a g e | 6

Figure 1 location of beneficiaries (Reference: https://www.nationsonline.org)

As part of the tender, a webinar will be organized for potential bidders (which will rest

anonymous) during the last quarter of the tendering period. In the webinar the final situation of

the Beneficiaries will be updated in detail, the expectations will be explained in detail and also

the questions and comments from bidders will be discussed. The invitation to the webinar will

be sent to the suppliers that have informed UNIDO Procurement Services Division about their

interest in the tender via e-mail by that time.

https://www.nationsonline.org/oneworld/map/iran_map.htm


P a g e | 7

Figure 2 Expected work flow chart

8 W

3 W

Bidding

Webinar

Evaluation & contract

Shipping

Site visit and technical

assessment

Installation, commissioning, training

and acceptance

Installation, commissioning, training

and acceptance

Contracts countersigned & a tentative work plan for all 4 beneficiary companies in Group I

15%

Contracts countersigned & a tentative work plan for all 19 beneficiary companies in Group II

10%

Finalized list of equipment and their technical specifications

10%


5%

Shipping documents

30%

Shipping documents for 19 companies

17% 17% 60%

Final Report

25%

Final Report

45%

8 W

6 M

11 M 6 M

Site visit and technical

assessment

Shipping 6 M

8 W

4

4

4

% Payment in % of total

contract value

Time (Week/Month) W/M

Deliverables

4

16% For each 5

companies


P a g e | 8

4. Responsibilities of the respective Beneficiary company

Beneficiaries confirm and accept the following terms and conditions:

4.1. Confirm availability of competent personnel for safe handling of hydrocarbons.

4.2. Confirm to provide evidence-based documents required for identification of required

equipment specifications and will cooperate in developing the business plan.

4.3. Confirm that the equipment specifications to be suggested by UNIDO meet their needs

for the conversion of their production to non-HCFC and non-HFC based production,

and the signed document will be added as Appendices.

4.4. Agree to provide all the preparatory works and the services as specified in Appendices:

“Scope of Supply and Services”; including but not limited to all required civil

engineering and construction work, mechanical, piping, utilities, testing, human

resources, security measures if it is required of the premise and any other additional

work that is agreed.

4.4.1. Ensure that the personnel/sub-contractors assigned by the Beneficiary to the

projects shall work under the direct supervision of the project coordinator and the

representative of the supplier of the technology.

4.4.2. Be committed to processing all the payments associated with its agreed services

as specified under this clause in time as agreed upon in the tender documents in

order to prevent the occurrence of any delay in the implementation of the project.

4.5. Absorb the financial losses occurring in case of suspension of the production of the

Beneficiary or due to either reckless handling or manipulation of the equipment and

actions by the Beneficiary staff or the use of incompatible/inefficient equipment and

machinery at the premise, which might be needed for rebuilding, replacement,

installation and production trials of the equipment, supporting and safety systems.

4.6. Prepare and, where needed, provide UNIDO with all necessary legal documents,

permits, certificates, etc. required for the starting and implementation of the

conversion and permitting full operation of the new process. The compliance of the

documents and all the legal issues for permitting the Beneficiary to participate in the

phase-out will be verified by the Department of Environment protection in Iran

(DoE)/NOU.

4.7. Appropriately render all actions needed to dismantle and/or destroy any equipment

designed for the use of HCFCs upon installation and commissioning of the new

equipment. The replaced equipment must be destroyed and thus confirmed in a

written form by the Beneficiary. The destruction process will be monitored and shall

be confirmed by DoE/NOU.

4.8. Agree to convert its HCFC-141b foam production processes to a the provided

alternative and be committed to finally and permanently phasing-out all CFC, HCFC


P a g e | 9

and HFC use in all its production line, and refrain under any circumstances from

using CFC, HCFC and HFC again in the future.

4.9. Provide a progress report every 2 months during the contract period in the format

specified by UNIDO.

4.10. Ensure that during the tendering process, the Beneficiary, its associates and

other persons having a direct relationship with the Beneficiary shall not in any form

communicate with potential bidders about any issue related to the tender. In the event

a potential bidder is being approached by such associate/person during the tender, it

shall immediately inform UNIDO. If such information is not shared with UNIDO, it

may lead to the disqualification of the bidder. All requests from potential bidders

regarding the bidding shall be addressed only to the authorized staff of UNIDO.

4.11. Confirm that the legal ownership of the equipment, granted to the Beneficiary

enterprise under HPMP-Stage II approved at the 77th ExCOM, belongs to DoE for 10

years after the equipment is transferred from UNIDO, based on the article 120 of

Islamic Republic of Iran‘s Custom Affairs law, commencing from the date of custom

clearance of the equipment.

5. Description of required services and equipment to be delivered by the contractor

5.1. Site visit and technical assessment

During the tender, no site visits are allowed by bidders, and photos and videos from the current

equipment of beneficiaries will be shared with bidders. A site visit is mandatory for the

Contractor in the first two months in the contract implementation period. The Contractor shall

visit the Beneficiary companies shortly after contract countersignature to have a kick-off

meeting and conducting a technical assessment and submitting the technical assessment report

including the following:

i. Technical specifications of the equipment that will be provided;

ii. A work plan agreed to by the Beneficiary companies;

iii. Plant schematic diagrams;

iv. Technical specifications of civil work needed by the Beneficiary companies;

v. Utility requirements to be provided by the Beneficiary companies;

An initial assessment report containing the above as well as list of people visited and their

contact information will be submitted to UNIDO and. the National Ozone Office will be

informed of the assessment results.

5.2. Equipment

Based on the site visit, the Contractor will confirm that the list of equipment and their technical

specifications described in Appendix 1 for companies in Group I, meet the needs of the


P a g e | 10

Beneficiary companies. The list of the finalized equipment and their technical specifications

will be submitted to UNIDO for review. The construction of the equipment can be initiated

only after UNIDO’s acceptance of the final list of equipment. The new setting of piping and

cables are to be equivalent to the old unit.

Regarding the beneficiaries in Group II, the contractor will introduce the selected technology

and provide the list of the finalized equipment and their technical specifications according to

the criteria presented in Appendix 2. It is expected that selected technologies can be customized

based on the Beneficiary’s requirements.

The expected guarantee period of the equipment would be 12 months after issuance of the

Certificate of Acceptance.

5.3. Transport

An offer should indicate the offered transport option as per INCOTERMS 2010, preferably the

offer includes transport DAP Iran, Beneficiary Sites. In case the offer can only be made EXW,

please attach a price quotation from a partner transport company, if any.

UNIDO Iran Office will function as consignee and support the customs clearance procedure.

5.4. Installation, Commissioning, and Acceptance

Qualified staff members of the Contractor shall visit the Beneficiary companies and conduct

the installation commissioning and testing of the equipment. The Certificate of Acceptance will

be signed by all involved parties and submitted to UNIDO.

5.5. Training of Local Operators

During the installation, commissioning, and acceptance period, the Contractor will provide

training on the safe handling of input materials, manufacturing process, safety systems,

problem-solving, maintenance, etc. following the terms of training found in the Appendices of

the Terms of Reference.

5.6. Technical Support and Local Representatives

Please indicate the terms and conditions of offered technical support, referring to the example

found in the Appendices of the Terms of Reference.

Installation, commissioning, training and after-sale and equipment maintenance services shall

be provided through a registered and accredited Iranian service provider.

5.7. Maintenance and Spare Parts

Please indicate offered spare parts, numbers, and breakdown of costs. Please see the

Appendices of the Terms of Reference and complete them.

6. General Time Schedule

The equipment needs to be commissioned within 21 months upon the signature of the contract.


P a g e | 11

Installation, commissioning and trial test of the new production line shall start not later than

six months after the date of delivery of the equipment at the Beneficiary. Any deviation from

this time schedule should be clearly stated and explained in the offer.

7. Personnel

To perform the activities specified herein, the Contractor shall engage staff and consultants as

needed. In the offer, the supplier should clearly indicate the academic and professional

background of each member involved in the proposed activities and how long they will be

involved in what activities, including cost breakdown.

The qualifications required for those who will be leading this work include experience in

conducting the detailed technical assessment, as well as installation and commissioning of the

equipment in emerging markets. Knowledge of the Montreal Protocol and the Kigali

Amendment to phase down HFCs is highly desirable.

8. Reporting/Deliverables

Reports/deliverables shall be submitted by the Contractor as per paragraph 10 below. All

reports/deliverables for submission to UNIDO should be made available in electronic formats

(PDF and MS-word compatible formats).

The Contractor shall regularly inform UNIDO in writing via e-mail on the progress of the

assignment by copying all important communication at least once every month or when major

milestones are reached, challenges are faced, or changes are required.

9. Language Requirements

All reports to be submitted need to be in English Language or accompanied by an English

translation. All written material submitted to UNIDO should be of such quality that no

additional technical editing is required.

10. Deliverables and suggested payments schedule

Payments will be made confirming that the required activities are delivered and upon receipt

of the respective invoice. The required deliverables and payment schedules are provided in the

next tables based on different Groups of beneficiaries.


P a g e | 12

Table 3 Deliverables and suggested payments schedule for each company in Group I

Proposed

Time

Deliverables Payment in %

of the contract

cost

Upon

signature of

the contract

Submission of countersigned contract incl. a tentative work

plan.

Invoice

15%

2nd Month Site visit and technical assessment report, including

i. Finalized list of equipment and their technical

specifications

ii. a work plan agreed by the Beneficiary companies

iii. Equipment schematic diagrams

iv. technical specifications of civil work needed by the

Beneficiary companies

v. utility requirement to be provided by the Beneficiary

companies


Invoice

10%

8th Month Shipping documents

Proof of equipment delivered at the Beneficiary companies

Invoice

30%

16th Month Final Report on the completion of installation, commissioning,

training and acceptance at all 4 companies.

At least 10 photos of the equipment and training sessions

including those of the staff and trainees of the Beneficiary

companies

Certificate of Acceptance signed by all stakeholders

Certificate of old equipment destruction in the presence of

UNIDO representative

Invoice

45%

Table 4 Deliverables and suggested payments schedule for companies in Group II

Proposed

Time (Dead

line)


of the contract

cost

Upon

signature of

the contract

Submission of countersigned contract incl. a tentative work

plan.

Invoice

10%

2nd Month Site visit and technical assessment report for all companies,

including


P a g e | 13

Proposed

Time (Dead

line)


of the contract

cost

i. Finalized list of equipment and their technical

specifications

ii. a work plan agreed by the Beneficiary companies

iii. equipment schematic diagrams

iv. technical specifications of civil work needed by the

Beneficiary companies

v. utility requirement to be provided by the Beneficiary

companies


Invoice

5%

8th Month

(this time

could be

adjusted

according to

received

justification

from the

supplier)



Invoice

16%



Invoice

16%



Invoice

16%

Shipping documents for 4 companies**


Invoice

12%

21th Month Final Report on the completion of installation, commissioning,

training and acceptance in 19 companies.

At least 10 photos of the equipment and training sessions

including those of the staff and trainees of the Beneficiary

companies.

Certificate of Acceptance signed by all stakeholders

Certificate of old equipment destruction in presence of

UNIDO representative

Invoice

25%

** In case some companies couldn’t keep their eligibility by the time of contract, this schedule will be modified


P a g e | 14 Appendix 2

Documents

TERMS OF REFERENCE (TOR) FOR THE EQUIPMENT AND … · P a g e | 1 TERMS OF REFERENCE (TOR) FOR THE EQUIPMENT AND SERVICES REQUIRED to convert polyurethane foam manufacturing process