BISNIS Trades & Tenders, August 30, 1999

PLEASE NOTE: A WEB SUPPLEMENT TO TRADES AND TENDERS WILL BE AVAILABLE TUESDAY AT http://www.bisnis.doc.gov/leads/leads.htm

BISNIS Trades & Tenders, August 30, 1999

The Business Information Service for the Newly Independent States (BISNIS) is the U.S. Department of Commerce's information clearinghouse on trade and investment in the emerging markets of the newly independent states of the former Soviet Union. BISNIS has created the "BISNIS Trades & Tenders" electronic newsletter to help U.S. companies find business opportunities in these expanding markets.

These opportunities are provided solely as an informational service and do not represent an endorsement by the U.S. Department of Commerce. Verification of leads is the responsibility of the reader. BISNIS may consider other private sector‑generated trade leads and tenders, in electronic form only, and publish on a space‑available basis. Please send your leads to BISNIS@ITA.DOC.GOV

A full selection of BISNIS leads and other market intelligence are available via BISNIS OnLine at: www.bisnis.doc.gov

Please also find another 2 trade leads in this document.

Table of Contents for Web Supplement:

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Lead #1: Equipment for Production of Ice Cream - Uzbekistan

Lead #2: Equipment for Donut Production - Uzbekistan

Lead #3: Tender for Equipment for Railway Rehabilitation

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Table of Contents for this Document:

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Lead #1: Agricultural Equipment Leasing Firms - Kyrgyzstan - REPRINTED VERSION!!

Lead #2: Wine preparations, etc. - Yekaterinburg, Russian Federation

Lead #3: Boilers, etc. Ukraine

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Lead #1

ACDI/VOCA, a not-for-profit corporation located in Washington, D.C., is providing technical assistance and technology transfer services in the Kyrgyz Republic under an agreement supported by the US Department of Agriculture-s Food for Progress program.

ACDI/VOCA is seeking expressions of interest and pre-qualification documents from firms with management expertise in leasing a broad range of agricultural equipment and which are prepared to establish and maintain a professionally managed equipment leasing operation in the city of Osh in the Kyrgyz Republic.

To qualify, a firm must provide a full-time expatriate manager and such support staff experienced in marketing and maintenance of farm equipment as to create and sustain a viable operation committed to cooperative efforts to increase agricultural productivity and to modernize the processing of agricultural products.

INSTRUCTIONS TO OFFERORS

Pre-qualification documents submitted in response to this document should clearly indicate the background and experience of the firm in the area of leasing and maintenance of a broad range of agricultural equipment including international experience in this area.

The firm must clearly demonstrate that it has the financial capacity to undertake and sustain a viable operation that requires the purchase and shipping of a wide range of agricultural equipment and the shipping of the equipment to the city of Osh in the Kyrgyz Republic.

The firm must indicate its willingness to enter into a joint venture with a local firm of its own choosing in Osh.

The pre-qualification documents shall include a business plan outlining the firm-s approach to this undertaking, including an estimated budget for the first three years of operation.

Respondents shall include in their offer the information requested on the Corporate Profile sheet included with this document.

The firm shall be required to provide and maintain a full-time professional expatriate manager in Osh and such additional staff on a long-term or short-term basis as is required to introduce and establish modern accounting systems and controls of operations. The firm shall also provide expertise necessary to maintain and repair equipment. This shall include the introduction of preventative maintenance procedures and the training of local staff in the proper operation, maintenance and repair of equipment.

The firm shall be required to develop and implement marketing plans to reach farm cooperatives, associations and individual farm enterprises.

From local funds generated under the on-going USDA Food for Progress program, ACDI/VOCA-Kyrgyz Republic is prepared to offer funding for local start-up and support expenditures as specified further herein.

Expressions of Interest shall be submitted in four (4) copies to the following address:

ACDI/VOCA

Attn: Amy Holecek

50 F Street, NW, Suite 1100

Washington, D.C. 20001

202-383-9754

The deadline for receipt of proposal shall be no later than 4:00 PM local time on September 7, 1999.

TERMS OF REFERENCE

A. BACKGROUND

The ACDI/VOCA Food for Progress team in the Kyrgyz Republic has identified a need for appropriate modern farm equipment that can be leased to farmers and to farmer cooperatives on a short-term, task-oriented basis.

The leasing operation would be established in or near the city of Osh located in the Osh Oblast. Osh Oblast has a population in excess of 1.4 million inhabitants (1997) and is located at the eastern end of the fertile Fergana Valley, bordering Uzbekistan, Tajikistan and China. It is the most important economic center in the southern Kyrgyz Republic, situated at an altitude of 700 to 1,000 meters. The heavily populated and agriculturally rich areas of Kara-Suu district in the Ak-Buura river valley, Nookat, Aravan and Uzghen surround it. Major industries include textiles, light-machinery manufacturing, garment manufacturing and food processing. For many years the oblast has been an important commercial center with one of the largest trading markets in Central Asia. Osh is surrounded by an area of intense agricultural production and is the gateway to another agriculturally rich area in the Jalal-Abad Oblast to the north.

As the regional capital and the second largest city in the Kyrgyz Republic, Osh has well-developed public social services, including a university and several specialized educational institutions, major regional health-care clinics and hospitals, and is the headquarters of the oblast administration. The city is approximately 3,000 years old, and is situated on the former Silk Road with a rich history.

The city also benefits from a well-developed transportation infrastructure, a telecommunications system which is being upgraded, and a relatively low-cost labor force.

Osh airport is the largest in the southern Kyrgyz Republic and has scheduled local and chartered flights. The Osh railway station is linked through Kara-Suu, 28 km. north of Osh, to Jalal Abad and the Uzbek rail network. In addition to freight services, there are scheduled passenger services to Jalal-Abad and to Bishkek (via Tashkent).

The region is aptly suited for the production of cereals, cotton, tobacco, oilseed, potatoes, vegetables, sub-tropical fruits and nuts. The region has about 28% of the total cattle herds of the Kyrgyz Republic and 20% of the nation-s sheep and goatherds.

The former sovhozes and kolkhozes (state-owned farms and farm collectives respectively) have been privatized throughout the country. All of the state-owned lands, with the exception of the National Fund (see below), have been redistributed. In addition, a recent referendum on private land ownership was approved by the electorate in 1998 making land subject to a mortgage in five years (according to the present land code, the right to use land can be mortgaged as security on loans). There are approximately 11,000 individually owned family farms in the Osh Oblast. Djalal Abad accounts for up to 3,000 additional registered farm enterprises. Most of these farms average between 3 and 20 hectares. There are twelve farm associations with areas over 150 ha. Additionally, there are up to 500 cooperative farms reported to range in size from 50 ha. to 150 ha. The National Fund has been allocated 84,849 ha. in the Osh Oblast by the government. This land is rented to farmers to help increase the size of their land holdings.

It is estimated that the introduction of technology could result in significant increases in wheat yield per ha. However, at present cotton and tobacco are the most profitable crops for farmers.

The primary focus of the leasing operation would be crop production. However there is some need for equipment in the animal husbandry and livestock areas. Livestock production has been in decline due to the lack of availability of feed and processing facilities, and the resultant increase in costs. Uneconomical prices for inputs made fodder unaffordable.

B. AGRICULTURAL TECHNICAL SERVICES

The selected firm will be required to develop the local enterprise capacity to maintain and service the equipment so as to permit local farmers to maintain cost efficiency in their operations and thus enable them to achieve a reasonable return on their investment. Therefore, the selected firm must be prepared to invest sufficient resources not only to purchase and transport the equipment to the region but also to commit resources to the maintenance and repair of the equipment and develop local business capacity to viably operate equipment leasing in collaboration with its firm.

To establish and maintain a base of operations and to market the services effectively, the selected firm will be required to enter into a joint venture arrangement with a local firm.

C. FINANCIAL INTERMEDIARIES

There are several institutions which can provide assistance to farmers and/or potentially, to the joint venture. They are the Osh Farm Credit Association (OFCA), Agro-Credit Djalal Abad Association (ACDA), Kyrgyzstan Agricultural Finance Corporation (KAFC), the State Entrepreneurial Fund (State Fund) and the Central Asian-American Enterprise Fund.

OFCA was legally established by the ACDI/VOCA FFP program. It is a locally registered, member-owned, not-for-profit credit facility providing financial assistance in the form of credits to small farmers engaged in crop and livestock production, agro-processing and agricultural service industries.

ADCA was legally established by the ACDI/VOCA FFP program and the Kyrgyz Swiss Agro-Credit Djalal Abad Project. It also is a locally registered, member-owned, not-for-profit credit facility operating in Djalal Abad Oblast, providing financial assistance in the form of credits to small farmers engaged in agricultural production, business and services.

KAFC has been established to provide financial assistance to farmers in the absence of other large lending institutions, which have ceased offering credit to the agricultural sector. KAFC is in the process of privatization (the Kyrgyz Government is still the principal shareholder). Currently the Kyrgyz Government and the World Bank are the sources of the KAFC-s current resources of about US $8 million.

KAFC provides credit for various agricultural operations, primarily to finance inputs. However, they are in a position to make loans to farmers to lease equipment such as the joint venture would make available. In addition, KAFC is able to guarantee payments in hard currency, avoiding the need to deal with in-kind crop payments or barter trade to convert payments to hard currency. Farmers may receive credit from KAFC twice a year, for the production and harvest seasons respectively.

The State Fund was established to provide both investment capital and credit to various

industries, primarily in the agricultural sector. This includes farms, agroindustrial, including input supply, technology and food processing. The Fund is in a position to finance leasing operations, both in terms of providing credit to farmers and covering payments in hard currency to a leasing company and possible direct equity investment in the joint venture. The Fund has three lines of currency: Kyrgyz soms, German marks and US dollars. The Fund can allocate as much as US $25,000 for one project.

The Central Asian-American Enterprise Fund, established by the US Government, is a privately managed, venture capital institution in the Kyrgyz Republic. The fund provides financing to commercially viable small and medium-sized enterprises. The fund welcomes the participation of international partners, especially US companies, who are willing to provide risk capital, management expertise and new technology, and who wish to develop a long-term presence in the region to explore new markets for US exports in Central Asia.

D. LEGAL ISSUES

There are no specific regulations or restrictions pertaining to leasing operations at this time. There is no specific code regarding leasing currently in effect. However, one may be enacted in 1999.

A charter fund is necessary. The contribution on behalf of the joint venture partners is minimal. It is anticipated that the joint venture will invest all equipment in kind into the charter fund. This will provide the joint venture with significant tax advantages. Investments into the charter fund are deemed to be non-resident company assets invested into it and are exempt from all customs duties and value-added tax (VAT).

The Kyrgyz Republic has five tax free zones that currently provide tax holidays on corporate profits for five years.

E. CURRENCY EXCHANGE

The som is an international currency and can be easily repatriated. Several Kyrgyz banks have commercial banking services. The Kairat Bank and the Demir Kyrgyz International Bank, a Turkish bank, can guarantee letters of credit up to US $350,000. The Kairat Bank correspondent banks are the Bank of America, American Express Bank, Ltd., and Deutsche Bank A.G.

Demir Kyrgz International Bank (DKIB) is another full service commercial bank with its head office in Bishkek and a branch office in Osh. DKIB maintains an extensive network and provides access to worldwide financial services. It has the capacity to handle international transaction and fund transfers in major currencies. The DKIB has The Bank of New York and Citibank N.A. as corresponding banks in the US.

F. EQUIPMENT NEEDED

Most of the farm equipment in the Kyrgyz Republic is considered out of date and in need of replacement. Analysis indicates a need for the following equipment:

Three wheel tractors for cotton production and caterpillar (track) tractors equivalent to Russian MTZ 80 hp models

Production equipment, notably potato production

Processing equipment for the following commodities: fruit, meat, milk and dairy products, tobacco, macaroni and mills for flour

Mechanized rotor-tillers to minimize small farmer reliance on tractors

Minimum tillage equipment

Harvesters and combines

G. CUSTOM JOB LEASING

Equipment is to be leased to farmers or farm organizations for a specific service or job. Equipment is not to be released to any one farmer on a permanent basis. This procedure is designed to ensure better quality control of operations and make it less expensive for farmers to lease equipment. It also helps protect equipment from potential theft or seizure, in the event of farm bankruptcy, and permits proper service and maintenance.

H. SHIPMENT OF FREIGHT

Freight is normally shipped to the Kyrgyz Republic via the Mediterranean to an eastern Black Sea port and by rail to the Kyrgyz Republic. An alternative route may also include a Baltic Sea port and by rail through Russian and Central Asia to the Kyrgyz Republic.

I. FUNDING AND SUPPORT FROM ACDI/VOCA

ACDI/VOCA maintains a project office in the city of Osh. To facilitate the accelerated start-up and implementation of leasing operations, ACDI/VOCA will provide funding, up to $200,000, in the first year of operation for certain local business expenses. Such expenses may include labor and benefits, general operating expenses, office and expat household furniture, equipment, computers, communications, office and expat housing rent, bank fees, legal services, security, transport (local lease of vehicle), etc., paid locally in Kyrgyz som. The firm and/or its representative is expected to locate housing and purchase household furnishings independent of ACDI/VOCA assistance.

ACDI/VOCA is prepared to reimburse the per diem expenses for lodging and meals for short-term expatriate specialists up to a fixed amount working in the Kyrgyz Republic under the project for the first full year of operation.

All financial, logistical (including exemption from any customs and duty), operational, managerial or start-up aspects of the equipment leasing operation and its activities in the Kyrgyz Republic are the responsibility of the selected firm and not that of the ACDI/VOCA FFP program.

J. ACCOUNTING AND AUDIT OF RECORDS

The firm shall be required to establish and maintain in the Kyrgyz Republic a local bank account and an accounting system to track the receipt and expenditure of all local currency made available by ACDI/VOCA. Such accounts shall be subject to audit by ACDI/VOCA or its authorized representatives at any time. Such funds shall not be converted to US dollars or other currencies and shall not be repatriated to the US without the prior written consent of ACDI/VOCA.

CORPORATE PROFILE

Name of firm: ____________________________________________________________________

Address: ____________________________________________________________________

____________________________________________________________________

CONTACT PERSON: __________________________________________

(TITLE)

Telephone: ( ) ____________________

Fax: ( ) ____________________

E-MAIL ____________________

State of Incorporation: ____________________

Year of Incorporation: ____________________

TIN Number: ___________________

DUNS Number: ___________________

Corporate Affiliations:

Is the corporation a subsidiary? ___________________

If YES, what is the name and address of parent corporation?

Name: ___________________________________________________________

Address: ___________________________________________________________

___________________________________________________________

If the corporation is a parent firm, list subsidiaries, if any.

Name: ___________________________________________________________

Address: ___________________________________________________________

___________________________________________________________

Number of employees:

In U. S.: _______________

Other: _______________

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Lead#2

6A. CONTACT:

6B. MR. MIKHAIL MOISEEV

DEPUTY DIRECTOR ON ECONOMIC AND FINANCIAL

ISSUES

6C. VINSHAMPANKOMBINAT (CHAMPAGNE PLANT)

1, PEREULOK PROCHODNOY

620090 YEKATERINBURG

RUSSIAN FEDERATION

7. PHONE: 7 (3432) 52-75-86

8. FAX: 7 (3432) 52-71-50

9. 101

10. DESCRIPTION OF PRODUCT: SEMI-PREPARED DRY

WHITE WINE COMPONENTS FOR DRY WINE PROCESSING

AND BOTTLING

11. PRODUCT DATA

11A. DETAILED PRODUCT DESCRIPTION: DRY WHITE WINE

SEMI PREPARED COMPONENTS TO FURTHER

MANUFACTURE SPIRIT BEVERAGES, BY VOLUME

OF UNDER 80 PERCENT VOL., HSC (HARMONIZED

CODES) 220890

B. QUANTITY: 100,000-200,000 TONS PER LOT

C. EXPECTED U.S. DOLLAR VALUE: USD 0,5-0,6 PER

LITER

D. PURCHASE NEEDED BY: OCTOBER 1999

E. ENDQUSER: BUYER

F. OTHER INFORMATION:

PAYMENT TERMS: ANY, BASED ON SUPPLIER'S

PREFERENCE

G. SERVICE CONTACT NEEDED: N/A

H. SHIPPING TERMS: CIF YEKATERINBURG

I. WHO/WHAT IS THE END USER: VINCHAMPANCOMBINAT

CHAMPAGNE PLANT)

RESPONSE DATA:

A. RESPONSE LANGUAGE: RUSSIAN/ENGLISH

B. BEST WAY TO RESPOND: FAX, E-MAIL

C. DIRECT MANUFACTURER ONLY: N

D. INFORMATION DESIRED FROM U.S. FIRM:

PRODUCT SPECIFICATIONS, PRICE LISTS

E. TERMS OF DELIVERY: N/A

F. PRIMARY BUYING FACTOR: PRICE, QUALITY

G. OTHER INFORMATION: N/A

COMPANY DATA:

A. TYPE OF BUSINESS: ALCOHOLIC BEVERAGES

MANUFACTURER

B. YEAR ESTABLISHED: 1969

C. NUMBER OF EMPLOYEES: 500

D. ANNUAL SALES: USD 1,000,000

E. MEMBER OF BUSINESS CHAMBER: NO

F. BANK NAME AND ADDRESS:

'SEVERNAYA KAZNA' BANK

17, UL. GORKOGO,

YEKATERINBURG

G. U.S. FIRMS REPRESENTED: NONE

OTHER INFORMATION: SINCE RUSSIA'S FINANCIAL CRISIS

IN AUGUST 1998 CONSUMERS HAVE INCREASINGLY

SWITCHED FROM IMPORTED ALCOHOLIC BEVERAGES TO

THOSE LOCALLY PRODUCED. VINSHAPANKOMBINAT NOW

PRODUCES OVER 45 ALCOHOLIC BEVERAGES, INCLUDING

CHAMPAGNE AND VODKA. THE COMPANY ANNUALLY

PRODUCES EIGHT TO NINE MILLION BOTTLES OF

CHAMPAGNE AND 100,000 DECALITERS OF VODKA.

VINSHAMPANKOMBINAT NOW PLANS TO PURCHASE A USED

CHAMPAGNE BOTTLING LINE FOR 0.75 LITER BOTTLES

PRICED AT NOT MORE THAN USD80, 000.

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Lead #3

REF.#: 494-01-000057-T

TYPE OF LEAD: DISTRIBUTORSHIP

DESCRIPTION OF PRODUCT(S):

8403 CENTRAL HEATING BOILERS, NESOI/INCL. HOT WATER

BOILERS/PARTS THEREOF

7322 RADIATORS

841919 INSTANTANEOUS OR STORAGE WATER HEATERS

PRODUCT DATA:

A. DETAILED PRODUCT DESCRIPTION: HEATING EQUIPMENT FOR

DOMESTIC AND INDUSTRIAL USE - BOILERS, WATER

HEATERS, RADIATORS

B. PRODUCT SPECIFICATIONS/TECHNICAL DATA: BOILERS

(GAS, LIQUID FUEL, FOSSIL FUEL, AND ELECTRICAL),

CAPACITY FROM 24 KWH; ALL TYPES OF WATER HEATERS;

RADIATORS

C. QUANTITY: 1,200 BOILERS/WATER HEATERS ANNUALLY

D. U.S. DOLLAR VALUE: N/A

E. PURCHASE NEEDED BY: N/A

F. OTHER INFORMATION:

PAYMENT TERMS: BALANCE PAYMENT

IS A SERVICE CONTRACT NEEDED: YES

SHIPPING TERMS: CIF (ODESSA OR KYIV)

WHO/WHAT IS THE END USER: N/A

RESPONSE DATA:

A. RESPONSE LANGUAGE: RUSSIAN

B. BEST WAY TO RESPOND: BY PHONE, FAX

C. FROM MANUFACTURERS ONLY? PROPOSALS FROM AGENTS

AND DISTRIBUTORS WILL BE ALSO CONSIDERED

D. INFORMATION DESIRED FROM U.S. FIRM: YEAR

ESTABLISHED; NUMBER OF EMPLOYEES; NUMBER OF

AGENTS/DISTRIBUTORS, IN WHICH COUNTRIES

E. PRIMARY BUYING FACTORS: PRICE, QUALITY, DELIVERY

TERMS, PAYMENT TERMS, PRODUCT WARRANTY, AFTER-SALE

SERVICES, TRAINING FOR DISTRIBUTOR

F. OTHER INFORMATION: SMALL OR MIDDLE TRIAL BUY

WITHIN ONE TO TWO MONTHS, WITH THE INTENTION TO

INCREASE PURCHASES IN THE FUTURE

COMPANY DATA:

A. TYPE OF BUSINESS: IMPORTER, DISTRIBUTOR WHO SALES

AND PROVIDES AFTER-SALE SERVICES

B. YEAR ESTABLISHED: 1994

C. NUMBER OF EMPLOYEES: 10 TO 49

D. ANNUAL SALES: MORE THAN $250,000

E. MEMBER OF BUSINESS CHAMBER: NO

F. BANK NAME AND AOORESS: KYIV BRANCH OF

PROMINVESTBANK, YAROSLAVIV VAL STREET, KYIV,

UKRAINE

G. U.S. FIRMS REPRESENTED: N/A

H. OTHER INFORMATION:

TYPE OF COMPANY: PRIVATE

SALES TERRITORY/AREA/COUNTRIES: UKRAINE

NUMBER OF SALES AGENTS: MORE THAN 25

COMPANY OESCRIPTION AND BUSINESS ACTIVITY:

OELIVERY, INSTALLATION, STARTING UP, AFTER-SALE ANO

WARRANTY SERVICES FOR HEATING ANO WATER SUPPLY

SYSTEMS

COMPANY CONTACT:

VITALIY 0. TAVER, DIRECTOR

"TEKHNOVEN" SCIENTIFIC-PRODUCTION COMPANY

28, LVIVSKA STREET

KYIV 252115, UKRAINE

TEL/FAX: (38O-44) 45O-8976

POST REMARKS:

THE COMPANY ADVERTIZED IN LOCAL "BUSINESS" MAGAZINE,

PARTICIPATED IN AQUA-THERM'99 INTERNATIONAL EXHIBITION

HELD IN KYIV JUNE 2-5, 1999. BEYOND THAT, THE COMPANY

IS NOT KNOWN TO THE COMMERCIAL SERVICE KYIV. ACCORDING

TO THE COMPANY, IT MARKETS ITS PRODUCTS LOCALLY AND HAS

A DISTRIBUTION NETWORK ALL OVER UKRAINE. ACCORDING TO

THE COMPANY, INFORMATION ON THE COMPANY IS GIVEN IN THE

UKRAINE COUNTRY REPORT ON HEATING PRODUCTS PREPARED BY

BRITISH CONSULTING COMPANY CONSULT GB IN 1998 (WEB

ADDRESS WWW.CONSULTGB.COM).

INTERESTED U.S. EXPORTERS ARE ADVISED TO NEGOTIATE WITH

THE COMPANY DIRECTLY ON PAYMENT AND DELIVERY TERMS.

U.S. EXPORTERS ARE ADVISED TO ESTABLISH THE RELIABILITY

AND SERIOUSNESS OF A UKRAINIAN PARTNER AFTER HAVING

SEVERAL SMALLER INITIAL DEALS, EITHER ON FULL

PREPAYMENT OR LETTER OF CREDIT PAYMENT TERMS.

NEGOTIATIONS FOR FUTURE DELIVERIES AND PAYMENT TERMS

USUALLY FOLLOW SUCCESSFUL INITIAL DEALS. INTERESTED

U.S. COMPANIES ARE ALSO ENCOURAGED TO CONTACT THE

COMMERCIAL SECTION OF THE U.S. EMBASSY IN KYIV AND SEND

A COPY OF ANY RESPONSES TO:

ATTENTION: VICTORIA SERGEEVA

COMMERCIAL SECTION (FCS-TOP)

7, KUDRYAVSKIY UZVIZ, 2ND FLOOR

KYIV O4O53, UKRAINE

REF# 494-O1-0OOO57-T

TEL: (38O44) 417-2669/1413

FAX: (38O44) 417-1419

E-MAIL: VICTORIA SERGEEVA@MAIL.DOC.GOV

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