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Home > Procurement > Closed tenders > EPC works

EPC works

The tender for the procurement of EPC works (design, procurement and construction of jetty with auxiliary facilities and high-pressure gas pipeline for the LNG terminal) was published on 8 September 2017 and it was canceled on 11 June 2018, primarily due to a significant rescheduling in project deadlines, as well as the fact that an FSRU with smaller capacity was procured. Also, the canceled tender would have resulted in a bid that exceeds the planned initial budget by EUR 5.6 million (EUR 60 million was planned for EPC works, while the most economically advantageous bid was EUR 65.6 million). 

During the tender for the FSRU vessel, where it was established that for needs of the terminal the FSRU vessel would be purchased with a smaller capacity and dimensions than initially planned, which ultimately significantly reduced the capital cost of the project, there was a rescheduling in the deadlines for the works. In accordance with the above stated circumstances, on 11 June 2018, the previously call for tender for EPC works was canceled. Following the cancellation of the tender, a market analysis was performed and interested bidders presented their options and possible technical construction solutions primarily in order to establish that the works could be completed within the newly defined deadlines and within the initially planned budget (interested bidders which came to present their options in the period from the cancellation of the tender to the recurrence of the tender were Pomgrad and Somagec). 

The new tender was opened on 2 October 2018, and in a similar manner to the canceled tender, a basic solution in accordance with FEED and a variant solution could be offered in a way that it meets all FEED parameters, measures from the EIA, as well as location requirements s based on a ‘turnkey’ solution. In the case of offering a variant technical solution, and since it is the obligation of the investor (LNG Croatia LLC) to obtain construction permits in accordance with the basic solution by April 2019, the obligation of the contractor is to obtain the necessary amendments of the obtained permits. 

By the deadline for submission of bids on 15 November 2018, two bids have been received, namely from the consortium of economic entities POMGRAD INŽENJERING d.o.o., GP Krk d.d. and STSI - INTEGRIRANI TEHNIČKI SERVISI d.o.o. and from company Somagec. 

After reviewing and evaluating the bids, the commission for opening, reviewing, evaluating the bids and selecting the most economically advantageous bidder has concluded that the bid from the consortium of economic entities POMGRAD INŽENJERING d.o.o., GP Krk d.d. and STSI - INTEGRIRANI TEHNIČKI SERVISI d.o.o. with a value of EUR 58,442,409.03 was in full compliance with the conditions set out in the tender documentation, and according to the criterion for the selection of the most economically advantageous bid, the bid was highest-ranked with the highest number of points. Committee for opening, reviewing, evaluating the bids and selecting the most economically advantageous bidder consisted of representatives of LNG Croatia LLC, representatives of Exstructa d.o.o who were engaged in the consultancy services related to the preparation of the tender and representatives from the Law Firm Hanžeković & Partners who were engaged in the advisory services related to the preparation of the tender. 

Upon receipt of the bids, and prior to the decision from the commission for opening, reviewing, evaluating the bids and selecting the most economically advantageous bidder, a technical evaluation of the bids was requested from the Faculty of Civil Engineering, University of Zagreb for the case of a variant technical solution. The variant technical solution of the selected EPC contractor for the construction of the foundation of the concrete coastal jetty system was technically evaluated by revisers from the Faculty of Civil Engineering, University of Zagreb, Institute of Hydraulic Engineering, where a positive opinion was obtained according to which the technical design of the foundation of the jetty of the LNG terminal on reinforced concrete piles was evaluated as equivalent technical solution as the construction of reinforced concrete caissons, as confirmed by the proof of mechanical resistance and stability calculations. Also, regarding the obligations arising from the regulations in the field of environmental protection, from the Ministry of Environment and Energy, the Directorate for Environmental Impact Assessment and Sustainable Waste Management, the opinion has been obtained that the technical solution for the construction of the foundation of the concrete coastal jetty system on the reinforced concrete piles is more acceptable in relation to the solution of jetty foundation on reinforced concrete caissons, since they have a more favorable effect on the change of water masses. Also, for the construction of reinforced concrete piles there is no need for significant deepening of the sea bed in the area of construction of the underwater plateau, which is necessary in the case of construction of reinforced concrete caissons. 

The Contract for the construction (design, procurement and construction of the jetty with auxiliary facilities and high pressure gas pipeline for the LNG terminal) was concluded on 31 January 2019, and entered into force on the same day as it was concluded, given that a Final Investment Decision was adopted (all contracts related to the tenders that were conducted had a clause of cancelation if the Final Investment Decision was not adopted by 31 January 2019).