Bogotá D.C., February 27th/2023.
On January 25, 2023, the Mayor’s Office of Medellin published the draft terms of reference for the award of a Public-Private Partnership – PPP contract, whose scope includes the designs, financing, environmental and social management, construction, operation, maintenance, and reversion of a correctional facility in the Medellin (the “Metropolitan Prison for Pre-trial detainees”). The terms of reference are available in the SECOP I platform.
This is the first prison of the country to be build and operated under a PPP structure. Under the contract, the investor is expected to provide and maintain the physical infrastructure, as well as provide essential services for 1,339 inmates. Surveillance will be in charge of the public sector and specialized state armed forces.
This contract will have an estimated value of COP$433,820,840,655 (approximately USD $95,578,198) and a 15-year execution period.
The payment to the investor will come from state contributions (availability payments from the budget of the city of Medellín), commercial exploitation of the infrastructure, and the provision of additional services to the inmates.
Qualification Requirements:
Who can participate? National or foreign natural or legal persons, either individually or under the promise of a future incorporation; participating foreign public law entities will be considered private law entities for the purpose of this bidding process.
Experience.
Interested parties must prove construction experience by accrediting, alternatively:
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- Option 1: One (1) prison construction project with an investment value of at least COP$80.000.000.000. (USD 17,625,377).
- Option 2: Up to three (3) prison construction projects whose investment has been at least COP$40,000,000,000 (USD 8,812,688).
- Option 3: Up to four (4) institutional buildings construction projects for public entities (other than housing) with an investment value of at least COP$120,000,000,000 (USD 26,438,065), provided that one of the projects represented an investment of at least COP$60,000,000,000 (USD 13,219,032).
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Interested parties must prove financing experience by accrediting, alternatively:
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- Option 1: Accreditation of the financial closure or credit contract of one (1) construction project worth COP$80,000,000,000 (USD 17,625,377).
- Option 2: Up to three (3) accreditations of the financial closure or credit contracts of concession projects worth COP$120,000,000,000 (USD 26,438,065), provided that one of the accreditations amount at least COP$48,000,000,000 (USD 10,575,226).
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Experience will be admissible if the financing (financial closure and first disbursement) of the project, was obtained on a date between January 1, 2023, and the closing date of the tender.
Financial Capacity.
| INDICATOR | REQUIREMENT |
| Net Equity | Minimum of COP $30,000,000,000 at December 2021 prices (USD 6,609,516). |
| Debt Capacity | Option 1: Debt ratio less than or equal to 50%.
Option 2: Certification of Firm Credit Limit Approval for the Development of the Project for an amount not less than COP$70,000,000,000 (USD 15,422,204). |
Guarantees.
To participate in the process and have the expression of interest accepted, interested parties must provide a guarantee, by means of, alternatively:
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- Insurance policy.
- Trust (Patrimonio Autónomo).
- Bank guarantee.
- Stand-by letter of credit.
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The value covered by the guarantee must be 10% of the estimated value of the contract.
Key milestones.
| ACTIVITY | DATE |
| Publication of the Procurement Notice and documents of the bidding | January 25, 2023 |
| Comments to the Draft of Terms of Reference | Until March 13,2023. |
| Response to comments | March 24, 2023. |
| Publication of Opening Resolution and Final Terms of Reference | March 24, 2023. |
| Hearing of clarifications to the Final Terms of Reference | March 29, 2023. |
| Deadline for submission of bids | May 5, 2023. |
| Awarding hearing | June 26, 2023. |
We are confident that this information will be useful. Should you have any questions or require further details, please do not hesitate to contact us.
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