In accordance with the relevant privatisation programmes it is established that JSC Shargunkumir (99.9%) and LLC Boisunkumir (100%) (hereinafter - the ‘Assets’) will be publicly traded on the international market.

The State Assets Management Agency (hereinafter - the Client) announces the engagement of a professional consulting company with international experience (hereinafter - the Consultant) in accordance with the industry approach to organise public trading of these assets on the international market.

All interested applicants are invited to submit their proposals in accordance with the Request for Proposals (RfP) below, not later than 18:00 (Tashkent time) on 17 June 2024.

In case of joint commercial proposal submission, the Principal Consultant should be identified who is responsible for coordinating the work of the engaged consultant partner and assumes the responsibility.

Interested consultants are requested to submit commercial proposals to the contact addresses below:

Samandarov Talat Yuldashevich Samandarov - Deputy Head of the Department for Preparation for privatisation and privatisation of state assets of UzSAMA;

Tel: + 998-71-259-20-67;

E-mail: tender@davaktiv.uz ;

It is reported that work on the Transaction may be carried out in close co-operation with representatives of consultants and, where necessary, by establishing an additional project team in the Asset.

Disclaimer:

his solicitation does not constitute an obligation to submit a commercial proposal, the Purchaser is not entering into any obligation to accept any proposal or to enter into a contract pursuant to this solicitation. Accordingly, this solicitation does not imply a contract by virtue of the publication of this solicitation and/or the receipt of bids in connection therewith, or by negotiation and discussion with one or more of the selectors with respect to the Transaction.

The materials and information contained herein are intended as a preliminary summary and the most important aspects of the Transaction, as well as a general indication of the scope of work expected of the Sales Consultant.

The selection participants cannot and should not rely on anything other than the sole limited purpose of preparing initial presentations and proposals for the Client in connection with the selection process.

Request for Proposals (RfP) to attract a consultant for privatisation of JSC Shargunkumir and LLC Boisunkumir

Introduction

In accordance with the privatisation programmes the state shares of JSC Shargunkumir (99.9%) and LLC Boisunkumir (100%) (hereinafter - the Transaction) are subject to sale on the international market.

International trade processes shall be organised on the basis of the most appropriate foreign experience within the framework of the requirements of the legislation of the Republic of Uzbekistan, taking into account the network and individual features of the Assets. The Client shall conduct an independent evaluation of the Asset in order to make the right decision.

This Request for Proposals (hereinafter - the Request) describes the requirements for the Consultant and the structure of its proposal to be evaluated, as well as the scope of work required to support the Transaction in the annex to this Request for Proposals. Consultants may enter into a consortium or make joint proposals to provide a full range of services.

Brief information about the asset

1. JSC ‘Shargunkumir’.

Authorised capital - 7.0 billion soums;

Official web-page - www.sharguncoal.uz 

The head office of the company is located in Surkhandarya region, Sariasi district, Shargun town, A. Ikramov Street, 50.

2. ‘Boysunkumir’ LLC

Authorised capital - 2.7 billion soums;

Official web page - www.sharguncoal.uz 

The head office of the company is located in Surkhandarya region, Boysun, TUDA settlement.

Proposal structure and requirements for consultants

Preference shall be given to a Consultant with relevant knowledge and experience in the automotive industry.

The proposal of the Consultant (individual applicant or Consortium) shall be prepared in English/Russian languages, contain information on the following:

a) The Consultant's vision for the organization of the work with a detailed description of the proposed actions for the privatization of the Asset. Opinion on the duration of the process, in case the Consultant's recommendations and suggestions will be adequately responded to within a reasonably required time; (10 points);

b) Two-part Commercial Proposal (up to 50 points):

• fixed fee - in the form of a single figure (including VAT as well as all other costs) and at the same time free of subjective assumptions of the consultant himself;
• success fee - the Client shall give preference to proposals providing for a success fee in proportion to the value ("success fee") of the Transaction.
  In the case of the presentation of the proposal at the price range, its upper limit is taken for the evaluation of the proposal. Possible additional transaction costs (travel, translation, etc.) and tax (VAT) must be included in the fixed part of the value;

c) Information about the Consultant's experience with transactions involving similar assets, including information about the Consultant's mandates in the CIS region in the period from January 1, 2017 to the present (20 points);

d) Proposal for the organization of the Transaction in terms of governance of the project. Information about the team involved in the proposed Transaction, specifying the names of individuals and information about them: work experience, work experience, general transaction experience and specific transaction experience; (20 points);

e) A written statement of sufficient competence as well as human, time, and material resources to carry out the assigned tasks;

f) Information on whether there is a conflict of interest. Indicate whether the Consultant currently has a mandate for a potential transaction that might present a conflict, should he/she be involved in this Transaction.

Consultant's scope of work on the privatisation process:

I. Analysing the market of coal production and sale:

• Analysis of the market and prerequisites for the development of the sector in Uzbekistan and in the region, necessary conditions for the development of enterprises in the sector;
• analysis of the experience of privatisation carried out in this sphere in other (for example, neighbouring) countries, the main reasons for failures in privatisation of this type of assets, factors ensuring further development of the sector and successful privatisation;
• based on the analysis, a plan of measures necessary for the successful organisation of asset privatisation processes will be developed;
• development of methods and procedures for selling assets (real estate, shareholdings, industry and non-industry facilities), including those listed in the privatisation programme, as well as proposals and recommendations for implementation.

II. Tips for preparing the asset before its sale:

• Analysis of the experience of privatisation of industry enterprises in other (including neighbouring) countries, the main reasons for failures in privatisation of this type of Asset, factors ensuring successful privatisation and further development of the industry.
• Proposals to increase the investment attractiveness of the asset, improve its structure and management based on best practices and analyses of similar assets;
• Conducting a comprehensive (tax, legal, financial and environmental) in-depth due diligence analysis of the asset;
• Recommendations on optimal marketing strategy, preparation of marketing materials (teaser, info-memorandum, process status letter, etc.) and distribution of information materials to investors;
• preparation of marketing materials, including investment videos, handouts, etc..;
• providing recommendations on communicating with the public, answering their questions;
• selecting an appropriate valuation method and determining its relevance to investors, providing recommendations on price range;
• identify the main factors, key indicators and valuations affecting the valuation from the investor's perspective;
• engage other qualified consultants (if necessary) and co-ordinate their work.

III. Maintenance of the Transaction:

• taking all measures aimed at privatizing the Asset, organizing the Virtual Data Room (VDR);
• coordination with potential bidders, including answering questions from potential buyers;
• support of the sale process with the preparation of all necessary documentation, including the draft sale and purchase agreement (with translation into Uzbek and, if necessary, into English and Russian);
• organization of closing and announcement of the Transaction.

(1) In the case of a consortium application, please provide the consortium agreement as well as the main consultant (usually called consortium leader) coordinating the application. In this case, the total cost of services must be specified.

(2) If consultants' proposals are scored less than 30 points under a, c and d clauses of The expected structure of the Consultants' proposals and the requirements for them, the proposal is not to be evaluated under b clauses.