THE MINISTRY OF TRANSPORT AND COMMUNICATIONS

ANNOUNCEMENT

for public bidding for transferring construction land in ownership

of the Republic of Macedonia

for building a hotel

SUBJECT OF THE PUBLIC BIDDING

            The subject of the public bidding is undeveloped land reserved for construction, in ownership of the Republic of Macedonia, foreseen with the Urban Plan as hotel, as part of: CL (Cadastre Lot) No. 7000/8 and 7000/9, all of them in CM (Cadastre Municipality) –Ohrid, covering an area of 15.877.40 m2 (construction lot surface is 6.667,60 m², whilst the net developed surface is 29.343 m²), foreseen for construction of a hotel.

The minimum required conditions necessary to be fulfilled are the conditions laid down in the Rulebook for categorization of the catering facilities (harmonised with the EU standards for hotels and catering facilities), published in the “Official Gazette of the Republic of Macedonia” No. 16/2006 - Appendix 1, explaining the conditions that shall be fulfilled by a first category, five stars hotel, subject to the public bidding procedure.

RIGHT TO PARTICIPATION

The following are entitled to participate at the public bidding:

Natural and Legal Entities

The participants shall comply with the condition for ownership of a chain of hotels, shall possess a franchising agreement with entities that own chain of hotels or business cooperation that provides exclusive right for usage and participation to the chain of hotels.

Under the term chain of hotels it is understood owning of at least 250 hotels, category of 4 or 5 star hotels.

In order to comply with the condition it is necessary to submit proof for ownership of chain of hotels, i.e. proof for ownership of the legal entity owning the chain of hotels, franchising agreement with entities that own chain of hotels (in this case proof for ownership of the hotels by the entity with which the franchising agreement is signed) and proof confirming that based on the franchise at least one hotel was built, or an agreement for business cooperation confirming the right to use the standard of an entity that owns a renowned chain of hotels, accompanied by a proof confirming that according to the previously established business cooperation at least one hotel was built in compliance with the above mentioned categorization.

The entities who will not submit proof for ownership of the chain of hotels, i.e. proof for ownership of the legal entity owning the chain of hotels, franchising agreement with entities that own chain of hotels ( in this case proof for ownership of the hotels by the entity with which the agreement is signed) and proof that based on the franchise at least one hotel was built or an agreement for business cooperation, i.e. appropriate agreement for cooperation, according to which at least one hotel was built, shall be revoked from the public bidding procedure, i.e. their bids will not be subject of review.

The franchise agreement, concluded with the owner of the chain of hotels, or the agreement for business cooperation with the owner of chain of hotels, has to be substantiated with the statement of the authorised person of the owner of chain of hotels with which the agreement was concluded, whereas the Ministry of Transport and Communications reserves the right to verify the authenticity of the above-mentioned agreements.

All of the above documents shall be submitted in original, and if the document language is other than Macedonian language, the documents shall have to be translated and duly notary verified, and shall represent part of the application for participation at the public bidding procedure.

The most suitable bidder is obliged to start with the construction within a period of 24 months, at the latest, counting from the day of the acquiring of the license for construction, that shall be acquired in a period of 6 months after the signing of the agreement for transferring the construction land. These two conditions shall represent one of the main conditions of the agreement itself.

CONDITIONS FOR PARTICIPATION AT THE PUBLIC BIDDDING

The interested natural and legal entities submit their bid for participation at the public bidding procedure, pursuant to the conditions in the Announcement, in a closed envelope, addressed “For public bidding for the transfer of undeveloped land reserved for construction of a hotel” completed with the following proofs:

1. Proof for paid deposit;

2. For the natural entities-Citizenship certificate;

3. For the legal entities-Registration proof of the legal entity in the suitable register;

4. Proof for ownership of the chain of hotels, i.e. proof for ownership of the legal entity owning the chain of hotels, franchising agreement with entities that own chain of hotels (in this case proof for ownership of the hotels by the entity with which the agreement is signed) and proof that based on the franchise at least one hotel was built as well as an agreement for business cooperation and proof that according to this agreement at least one hotel was built;

5. Duly notary verified statement confirming that if selected as the most suitable bidder at the public bidding procedure, within a period of 15 (fifteen) days after being selected as the most suitable bidder, he/she shall submit bank guarantee in amount of 500.000,00 Euro, from a renowned bank with a good classification and at least “B” credit rating, which can be realized unconditionally immediately in order to provide timely and quality completion of the object foreseen for construction on the undeveloped construction land reserved for construction, subject to public bidding, and this guarantee shall be valid until the completion of the construction of the object.

6. Properly certified power of attorney for representation of the legal entity;

INITIAL PRICE

The initial price of the public bidding amounts to MKD 3.000,00 per square meter,

DEPOSIT

1. The deposit for the participation at the public bidding amounts to MKD 4.763.220,00.

            2.The Deposit is paid by transfer or by mail to the Budget of the Republic of Macedonia, National Bank of the Republic of Macedonia account No 130010025669613, income code and program 733111-10 addressed as “deposit for public bidding for the transfer of undeveloped land reserved for construction”, for the construction lot subject to the bid;

3. The deposit of the participants shall be refunded, in case they give up from the participation at the public bidding as well as to those who did not offer the most suitable price, reduced for the costs of the procedure amounting to 5% from the deposit.

            4. To the bidders whose bids will not be accepted, their personal details will be registered in the Minutes, which will later serve to refund the deposit, according to the Announcement, in a way the payment was performed.

DEADLINES

            The deadline for submission of the bids at the public bidding 28.05.2007, at the address of the Ministry of Transport and Communications: Pl. Crvena Skopska Opstina 4, in Skopje, or directly in the archive of the Ministry.

            The public bidding will take place on 01.06.2007 at 11:00 (local time) at the premises of the Ministry of Transport and Communications.

BIDDING PROCEDURE

1.       On the day of the public bidding the participants should legitimate themselves by showing personal identification document (ID or passport) and neat proxy for the proxies.

2.       The public bidding according to the above mentioned conditions can start and shall be valid if for the subject of the Announcement only one participant has applied for, fulfilling the necessary criteria, submitting the required documents as in chapters “RIGHT TO PARTICIPATION” and “CONDITIONS FOR PARTICIPATION AT THE PUBLIC BIDDING” and previously paying the deposit for the public bidding.

3.       The public bidding is carried out by the Commission, established by the Minister of Transport and Communications.

4.       The bidding starts by a public announcement of the initial price defined in the Declaration of the Commission.

5.       The procedure for bidding is carried out "in steps", by increasing the amount of each next step by not less than MKD 500,00 over the initial price per square meter and at least one bid in “steps” is necessary for a successful public bidding.

6.       The bidder who offered the highest price at the bidding, which was announced for the third time without other bids to follow, gains the status of the most suitable bidder.

7.       The most favourable bidder is responsible, within a period of 15 days from the moment of receiving the written information and the Minutes, issued by the Commission after the public bidding completion, to pay the funds according to the last price at the bidding. In the price, the already paid deposit is being calculated, reduced by the procedure expenses amounting to 5% from the deposit.

8.       In case when the most suitable bidder does not pay the funds within the defined deadline, the construction land will not be considered as transferred; there will be no agreement for transfer and the deposit by the most suitable bidder shall not be refunded.

9.       After the payment within the defined deadline, the Minister of Transport and Communications shall sign an agreement with the most suitable bidder for transfer of the construction land, subject of this announcement.

10.   The most suitable bidder is obliged to pay the profit tax that shall arise as an obligation from the concluded agreement for transfer of the construction land.

11.   The construction land price does not include the construction land development fee.

12.   The costs for the notary procedure and registering of the real estate in the registry of the State Office for Geodetic Works are responsibility of the purchaser of the construction land.

13.   The unsatisfied participants in the public bidding can lodge a complaint to the Minister of Transport and Communications within a period of 8 days after the public bidding was held. The Minister of Transport and Communications will bring a decision regarding the complaint.

This Announcement shall also be published in Financial Times, as well as on the website of the Ministry of Transport and Communications, www.mtc.gov.mk

Contact person:             Dimitar Dimovski Tel: 00 389 2 3145 543 ; +389-70-410-230

e-mail: dimitar.dimovski@mtc.gov.mk