Solicitation of Expressions of Interest for environmental assessment of the environmental damages from past operations of RTB BOR

27. July 2005.
The Government of Serbia (GoS) has obtained, through Serbia and Montenegro, a Privatization and Restructuring of Banks and Enterprises TA Credit (#PO77732) from the International Development Association to help finance the costs of privatization of a number of large and complex socially-owned enterprises, and intends to apply a part of the Credit to fund a consulting firm (hereinafter: the Consultant) to prepare an Environmental Assessment of the Environmental Damages from Past Operations of RTB Bor, determining the environmental issues and the required clean up measures.

Background Information

The regional economy of Bor in Serbia has been historically dominated by a large copper mining and processing complex known as RTB Bor, comprised of three mines, a smelter with a refinery, and a number of downstream subsidiaries. A feasibility study indicates that, given very low ore grades, obsolete technology and high production costs, RTB Bor is unlikely to operate at profit even with the present high level of copper prices at the world market. Very importantly, RTB Bor's continued operations, especially the smelter, are extremely harmful to the environment. The Government of Serbia (GoS) has approved an Action plan for Restructuring / Privatization of the RTB Bor Group’s copper mining and downstream activities. The World Bank is supporting the preparation and implementation work carried out by the Privatization Agency, Republic of Serbia (PA) through a technical assistance credit. The expected outcomes are:

• resolution of RTB Bor through the sale of viable assets and liquidation of unsaleable parts;
• resolution of the most pressing environmental problems;
• new sources of employment for redundant workers and general population of the Bor region;
• improved access of private small and medium enterprises to investment finance.

The RTB Bor complex consists of three operating copper mines-- two open pit mines, one at Bor, (Veliki Krivelj) and the other at Majdanpek. There is an underground mine, the Jama mine, which forms part of the Bor complex. Two open pit mines have been closed. There are also three flotation units (concentrators) at Bor, Veliki Krivelj and Majdanpek. The concentrate is sent to the smelting complex for further processing, consisting of a smelter, a refining unit (electrolysis operations), a precious metals refinery and a sulfuric acid unit that is meant to absorb some of the by-product sulfur dioxide, produced from the smelting process. Precious metals are by-products of the process which produces copper anodes and they are refined in a segregated unit.
There are several other facilities-- subsidiaries and affiliates of Bor that are either service facilities to the primary Bor operation or are downstream processors of product largely derived from copper.
An important component of the privatization and restructuring program is a comprehensive environmental assessment (EA) that meets requirements of relevant environmental and other regulatory agencies and those of international financial institutions. The EA would seek to define the past environmental impacts / liabilities and the future impacts / liabilities resulting from continuous operation of RTB Bor, to be undertaken after privatization. The scope of services for the EA will include:
• Description of the privatization/restructuring program and components;
• Rounds of public consultations and coordination with government agencies on EA scoping, environmental impacts and proposed mitigation measures;
• Description of the baseline environmental conditions;
• Legislative and regulatory considerations;
• Determination of the Potential Impacts of the proposed Privatization / Restructuring Program;
• Analysis of alternatives to the program or its components;
• Environmental Management Plan consisting of mitigation measures to minimize negative impacts; an environmental monitoring plan; and identification of institutional training and strengthening needs to implement environmental mitigation measures and the monitoring plan.

The EA will focus on BTR Bor’s core activities, namely the copper mining, smelting and refining. Downstream activities at other locations are not in the EA scope.

It is anticipated that the Consultant will use the existing data as well as data gathered through limited soil, groundwater and water sampling and testing carried out by the Consultant.

The EA runs in parallel with the study and design work to develop the privatization and restructuring (clean-up) components of the program. This work and the EA preparation are strongly interrelated and therefore close coordination is vital to the success of the program.
It is estimated that the assignment will commence immediately upon contract signing.

The Consultant should have expertise in environmental assessments, mining sector projects and privatization / restructuring schemes. The Consultant should have a proven track record of extensive knowledge in similar projects in the region, and familiarity with World Bank project preparation procedures. A maximum of 15 project references attached to the Expression of Interest should demonstrate the required capabilities. Each project reference includes a brief description of the activities, the client, the reference year, the size (investment) of the project, the role of the Consultant in the project and the extent of the Consultant’s contribution in financial terms and staff - months.
In order to be considered qualified for this assignment the Consultant should incorporate into its team the following expertise: (i) an environmental impact assessment specialist with 15 years of international experience, including experience in mining (restructuring) projects, to act as a team leader; (ii) a public participation specialist with international experience; (iii) (hydro)geologist with 10 years of experience; (iv) an industrial pollution / waste minimization specialist with 10 years of international experience; (v) a legal and institutional specialist with 10 years experience; and (vi) an environmental planning specialist.
The Privatization Agency, Republic of Serbia, now invites Expressions of Interest from qualified firms / consortia which should specify the following minimum qualification information in order to be considered for qualification: (i) profile of the firm / consortium; and (ii) names and curricula vitae of the firm’s key personnel proposed for this project, evidencing all the requirements listed in the previous paragraph (i) to (vi).

The Consultant will be selected using the QCBS (‘Quality- and Cost-Based Selection’) method, in accordance with the procedures set out in the Guidelines: Selection and Employment of Consultants by World Bank Borrowers, January 1997 (revised September 1997, September 1999, and May 2002).
Further information on the assignment may be obtained at the address below from Monday-Friday (10:00 - 16:00 hours, local time).
Interested and eligible Consultants who wish to participate should submit their Expressions of Interest to the address below by August 05, 2005 (Friday), not later than 16:00 hours (local time).
Contact: Ms. Snezana Tosic
Procurement Officer
Privatization Agency
Republic of Serbia
Terazije 23, 6th floor
11000 Belgrade
Tel.: (381 11) 3020 815
Fax: (381 11) 3020 828
E-mail: stosic@priv.yu

Cc: Ms. Zorica Petrovic
PMU Director
Privatization Agency
Republic of Serbia
Terazije 23, 6th floor
11000 Belgrade
Tel.: (381 11) 3029 968
Fax: (381 11) 3020 828
E-mail: zpetrovic@priv.yu
РТБ Бор Група доо

RTB Bor Grupa doo



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