/ Documentation on Open RFP
June10, 2010

Purchasing documentation on

Open Request for Proposals for Contract Awarding to Provide the Batteries to “K-Telecom” CJSC for the Y2010

Yerevan

2010

Contents

Company Profile

1.General Provisions

1.1.General information on Request for Proposals

1.2.Legal status of procedures and documents

1.3.Appeal

1.4.Other provisions

2.Subject of RFP

2.1.The subject of RFP is as follows:

3.Order of execution of Request for Proposals

3.1.Preparation of Proposals

3.2.Requirements to Applicants. Approval of compliance with the presented requirements

3.3.Submission and acceptance of Proposals

3.4.Amendment and call back of Proposals

3.5.Evaluation of Proposals

3.6.Decision-making

3.7.Agreement conclusion

3.8.Rights of the Applicant that provided the best offer for RFP

3.9.Notification of Applicants about the results of Request for Proposals

4.Samples of standard forms of documents, included in the Annex

4.1.Letter about offer submission (Form 1)

4.2.Technical/Commercial Proposal on provision of works, goods or services (Form 2)

Company Profile

“K-Telecom” CJSC (VivaCell-MTS), is Armenia’s leading mobile operator with over 2 million subscribers. Starting its activity onJuly 1,2005, VivaCell-MTS spearheaded the development of the telecommunication sector in Armenia, offered innovative mobile voice and data products and services, and tailored solutions for different market segments. On September 14, 2007, the Company became the subsidiary of “Mobile TeleSystems” OJSC (MTS), one of the world’s largest multinational mobile operators.

VivaCell-MTS has become the choice of remote mountainous villagers, housewives, youth, middle-class, as well as travelling business people. VivaCell-MTS also paved the way and leads the partnership with the society through its Corporate Responsibility: everywhere hand in hand with all Armenians in social, cultural, health, sports, educational and humanitarian activities.

1.General Provisions

1.1.General information on Request for Proposals

1.1.1.“K-Telecom” CJSC(legal address: 4/1 Argishti str., Yerevan, Armenia),(hereinafter referred to as the Organizer), with the public notification posted on its website at OpenRequest for Proposals, has invitedlegal entities (hereinafter referred to as the Applicants) for submission of Proposalswith the right to conclude agreement on the Batteries provision with “K-Telecom” CJSC for the Y2010.

1.1.2.For further information, please apply to the Organizer

Contact person: Arthur Gasparian

Analytical Officer

Administration Services Department

Purchasing Unit

“K-Telecom” CJSC (VivaCell-MTS)

4/1 Argishti Street

Yerevan 0015, Armenia

Tel.: +374 93298505

Fax: +374 93 298541

E-mai:

1.1.3.The complete information on participation in open purchasing process isposted on the Organizer’s website at

1.1.4.The procedures as well as instructions on participation and preparation of Proposals for open purchasing process are provided in the Section4.

1.1.5.No fee is foreseen for provision of RFP Documentation.

1.2.Legal status of procedures and documents

1.2.1.The Open Request for Proposals (RFP) is not a tender and the given procedure of Open RFP is also not considered as a public tender. It is a collection of respective offers available in the market, as a result of which the best offer might be accepted. The process of the Request for Proposals is not regulated by the Articles 463-465, 1043-1044 of RA Civil Code and Law “On Public Auctions”.

1.2.2.Publication of RFP in compliance with point 1.1.1. with its indispensable annexes is the invitation to submit Proposals and must be considered by the Applicants as such.

1.2.3.Applicant’s Proposal has legal status of offer, which should include all the essential terms of the given contract and shall be considered by the Organizer in compliance with thisDocument.The Organizer reserves the right to determine Applicants’ Proposals, as firm offers, which are not subject to further changes except for the cases foreseen by this Document.

1.2.4.The Agreement concluded on the basis of RFP Process results, stipulates all agreements reached by the Parties.

1.2.5.In the course of determination of Agreement terms with theApplicant that submitted the best offer the following documents are used with the strict order of the indicated hierarchy (in case of their controversy):

a)Notification about conducting Open RFP and this Documentation on Open RFP for all the executed stages includingall the addendaand clarifications;

b)Applicant’sProposal with all the attachments and clarifications in compliance with Requirements of the Organizer.

1.2.6.Other documents of the Organizer and the Applicants do not define the rights and obligations of the parties with regard to the current Open RFP.

1.2.7.In all other cases, which are not regulated by the Notification about conducting the Open RFP and current Documentation on Open RFP, parties are governed by the legislation of the Republic of Armenia (RA).

1.2.8.Upon the authority of submitting Proposal and in case of waving the right to call them back according to the procedure stipulated by the given Document and RFP, the Applicants shall agree with the procedures and provisions prescribed by the given Document and RFP.

1.3.Appeal

1.3.1.All disputes and disagreements, arising as a result of conducting the RFP, including the one, concerning execution of obligations by Organizer and Applicants, should be resolved through negotiations.When one of the parties receivesa claim, it shallsend the response to the other party within 10 working days from the moment of its receipt. In case disputes are not regulated after 30 days of their commencement,they should be regulated according to the rules and proceduresof RA legislation.

1.4.Other provisions

1.4.1.The Applicants independently incur the expenses with regard to the preparation and submission of the Proposal, whereas the Organizer is not responsible for those expenses and has no obligations regardless of the course and results of the purchasing process.

1.4.2.The Organizer provides reasonable confidentiality regarding all the information received from the Applicants, including the one described in the Proposal. This information may be provided to other Applicants or toaThird Party only in cases directly stipulated by the existing legislation of RA or the given RFP Documentation.

1.4.3.The Organizer reserves the right to reject the Proposal if he/she ascertains that the Applicantexpressly or by implication gave, agreed to give or offered the Organizer’s employee reward in any form: job, service, any value as a stimulus that can influence the decision-making to define the best offer.

1.4.4.The Organizer has the right to reject the Proposals of the Applicants,which came to an agreement with each other on the determination of best offer or for the purpose of having impact on that process.

1.4.5.The Organizer reserves the right to cancel the purchasing process on conducting an Open RFP at least 3 days prior to the closing date of this Open RFP (as specified in item 3.3.4.), respectively notifying about it the Applicants via posting of this information on The Organizer bears no responsibility for the expenses incurred by the Applicants or Third Parties as a result of such cancellation.

2.Subject of RFP

2.1.The subject of RFP is as follows:

The Provision of the batteries (Power Safe; Exide Sonnenschein; Coslight; Hawker; BAE)

For detailed technical specification please refer to Annex 3.

2.1.1.Technical part

  • Lot1 “Power Safe; Exide Sonnenschein; Coslight; Hawker; BAE” Battery (12V92F)-260 pieces.
  • Lot2 “Exide Sonnenschein’ Battery (A412/65A)- 20 pieces
  • Lot3 “Exide Sonnenschein” Battery (A412/ 180A)- 20 pieces
  • The batteries should be delivered in the factory package
  • It is recommended to present long warranty period, as upon other equal conditions the preference would be given to the supplier presenting maximum warranty period. Requested minimum warranty period is 12 months from the moment of putting them into operation
  • Applicants should present declaration of conformity from “National Institute of Standardization” (if such is envisaged by RA Law) and quality certificates

2.1.2.Commercial part

  • Delivery of goods should be organized by applicant (upon other equal conditions the preference would be given to the applicant executing/organizing the delivery within shortest period);
  • It is recommended that in addition to the individual proposals for each lot (see 3.1.4) Applicant presents also the combined proposal for providing items included in more than one lot
  • Organizer upon evaluation of offers could decide whether to select for Lot 1, Lot 2 and Lot3 or a combination of both types but keeping the total numbers as per mentioned in Annex 3.1.
  • 20% of delivered batteries should be tested, whether the 10% of tested batteries have unavailability with the presented technical specifications (or have parameter mismatches) the all quantity will not be accepted
  • 50% advance payment, 50% after receiving final invoice and signing the acceptance act
  • For applicants registered in RA It is recommended to submit proposals in AMD, VAT excluded. (if the prices are mentioned in other currency the RA Central Bank’s of data will be used for further calculation according to the daily exchange rate)
  • Applicants registered outside of RA should specified product price in USD (DDU, Yerevan, Zvartnotc)

The commercial part may contain conditions that are critical for the given Purchasing activity. In this case, the participants of the purchasing procedure have to specify their consent/disagreement with those conditions.

2.2. The Applicants’Proposals should be elaborated in accordance with Forms in Section 4

3.Order of execution of Request for Proposals

3.1.Preparation of Proposals

3.1.1.General requirements to Proposal

The Applicantwho wishes to respond to the RFPmust prepare a Proposal, which shall include:

3.1.1.1.Letter about offer submission in the form and according to instructions, stipulated in this Documentation (Form № 1 );

3.1.1.2.Technical/CommercialProposal for provision of goods, works or services in the form and in accordance with instructions, stipulated in this RFP (Form№ 2);

3.1.1.3.Price proposal in accordance with instructions indicated in this RFP;

3.1.1.4.The draft Agreement in accordance with instructions stipulated in this RFP;

3.1.1.5.Documents, which prove the Applicant’s compliance with requirements of this RFP (subpoint 3.2.).

3.1.2.The Applicant shall submit all documents in hard copies.The Applicant shall also submit electronic version of the proposal to e-mail address prior to RFP submission deadline. The electronic version of the file shall be protected by password of at least 12 characters combined of letters, numbers, symbols etc. The password of the proposal shall be enclosed in the envelope of the hard copy of the Proposal submitted to Organizer.The Applicant bears responsibility for non-compliance to this request.

3.1.3.The Applicantis entitled to submit only one Proposal. Incase of violation of this rule, all Proposals of this Applicantare rejected without consideration of their merits.

3.1.4.If there are multiple lots, the Participant prepares an individual Proposal for each lot applied. All Proposals shall be filled in according to this purchasing Documentation and have to be placed in different envelopes and shall be sealed with the stamp of the Applicant.The lot numbers have to be specified on the envelopes. Afterwardsthe envelopes have to be inserted into the envelope of the Applicant.

3.1.5.Each document, included in the Annex, should be signed by the person who,pursuant to RA legislation, is entitled to act on behalf of the Applicantwithout power of attorney, or the person duly authorized by the Applicanton the basis of notarized power of attorney. In the second case, the original of the power of attorney shall be fixed as an Attachment.

3.1.6.Each document, enclosed in Applicant’s Proposal, must be sealed with Applicant’s seal.

3.1.7.Documents (sheets or informational envelopes), included in Proposal, should be fixed or packed in a way that would prevent documents or informational envelopes from accidental loss or replacement.

3.1.8.Applicant shall prepare one original and one copy of Proposal in each language (if multiple languages are applied), on which the words “original” and “copy” should respectively be indicated.

3.1.9.Neither of corrections in the Proposal text haslegal force, except for the cases, when these corrections are authorized by handwritten script “corrections are verified” and personal signature of the authorized person is indicated next to each correction.

3.1.10.Requirements to the language of Proposal

3.1.10.1.All the documents, included in the Proposal, should be prepared in Armenian and/or English with the exception of the following:

The documents original copies of which were presented to the Applicantby Third Parties in another language, may be presented in the original language, withattached translation of these documents intoArmenian and/or English (in specially envisaged cases the translation must be apostilled), for authentication of which the Applicant is responsible. In case of revealing discrepancies between the translation and the original of the document, theOrganizer makes a decision on the basis of thetranslation.

3.1.11.Clarification of Documentation on Request for Proposals

3.1.11.1.Applicants are entitled to apply to the Organizer for clarification of this RFP. The requests for clarification of RFPshould be submitted in the written form with the signature of the head of the organization or another responsible person authorized by the Applicant.

3.1.11.2.Organizer,within reasonable period,should provide an answer to any question received not later than 2 days prior to the deadline of Proposal receipt (point 3.3.4.). If, in Organizer’s opinion, the given question is of interest to all the Applicants, the answer copy (without indication of the question source) should be announced to all the Applicants via the same communication means used for posting this announcement.

3.1.12.Amending Documentation on Request for Proposals

3.1.12.1.The Organizer is entitled to amend this Documentation on Request for Proposals before the deadline for submission of the Proposals but not later than 3 days prior to the submission deadline, except for the cases when these amendments do not change the significant conditions indicated in RFP.

3.1.12.2.All Applicants shall be immediately notified on the matter of such amendments via the same communication means used for posting this announcement.

3.1.13.Prolongation of the deadline of Proposals acceptance

3.1.13.1.If necessary, Organizer has the right to prolong the deadline of Proposals acceptance, stipulated in subpoint 3.3.4.with notification to all Applicants in compliance with the procedure, stipulated in 3.1.12.1.

3.2.Requirements to Applicants.Approval of compliance with the presented requirements

3.2.1.Requirements to Applicants

3.2.1.1.Any legal entityhas the right to submit Proposals in accordance with the rules and procedures prescribed in this Documentation.In order to qualify for the best offerand for the right to conclude Agreement, Applicantshould comply with the following requirements at the moment of the Proposal submission in compliance with this Documentation on Request for Proposals:

a)Organization should not be filed for bankruptcy, liquidation or reorganization; its property should not be arrested;

3.2.2.Requirements to documents, which prove the compliance of the Applicantwith the presented ones

3.2.2.1.Applicantshould include in the Proposal Documentation the following documents certifying its compliance with the above mentioned requirements:

a)copies of constituentdocuments;

b)copies of state and tax registration and certificates;

c)reference about payment of the charter capital, signed by the organization head and chief accountant;

d)reference certifying absence of court proceduresin connection withliquidation or reorganization or arrest of its property signed by the head of organization;

3.2.2.2.Special requirements:

a)Reference about the Applicant's regional network (list of Applicant’s branches and agencieson the regions, with indication of their addresses and authorizations);

b)Other documents, which, in Applicant’s opinion, certify his compliance with the set requirements, with the respective comments, elucidating on the purpose of submission of this documentation;

c)List of companies and contact persons that can provide information/reference.

3.2.2.3.All the indicated documents shall be attached to the Proposal by the Applicant.

3.2.2.4.In case, when for some reasons, Applicantcannot present the required documents, Applicantshould propose a reference elaborated in a free form, which explains the reason whythe required document are missing, as well as gives warranties to Organizer about Applicant’s compliance with the given requirements.

3.3.Submission and acceptance of Proposals

3.3.1.Prior to submission, the original Proposal and its copyshould be properly sealed in the envelopes (packages, boxes, etc.).The Proposal should be enclosed in a sealed envelope with “Original Proposal” indication.Copy of the Proposal should be sealed in envelope, indicated with words “Copyof Proposal”. The following information should beindicated on each envelop:

  • “K-Telecom” CJSC(legal address: 4/1 Argishti str., Yerevan, Armenia);
  • Fullbusinessname of the Applicantand its mail address;
  • Full name of the RFP or the lot for which the Proposal is submitted.

It is advised to submit Proposalsand other related documents and envelopes made of recycled paper.

3.3.2.Sealed envelopes with the Proposal and its copy are enclosed in one external envelope, which should be sealed as well. The following information should be indicated on the external document:

  • ”K-Telecom” CJSC(legal address: 4/1 Argishti str., Yerevan, Armenia);
  • Words: “Do not open before 17:00 o’clock (Yerevan time) 23/06/2010. It can be opened only at the Tender Committee meeting”.
  • Complete name of the RFP or a lot for which the Proposal is submitted.
  • Applicants should provide the delivery of their Proposals to the Organizer’s location: “K-Telecom” CJSC (legal address: 4/1 Argishti str., Yerevan, Armenia). In case of sending the Proposal by courier mail, it is necessary to notify the courier service representative or courier about this order of Proposal delivery.
  • Organizer stops accepting Proposals at 17:00 o’clock (Yerevan time) 23/06/2010.Proposals, received later than the term indicated above, will be rejected by the Organizer without consideration of their essence.
  • Organizer submits the reference to the person, who delivers the envelope, about its receipt with indication of receipt time.

3.4.Amendment and call back of Proposals

3.4.1.The Applicant is entitled to change or call back already submitted Proposal provided that a respective written application is received by the Organizer three days prior to the deadline for Proposals submission (item 3.3.4.). The changing of the Proposal is carried out in accordance with the procedure stipulated by this Documentation on Proposal submission. The applications for changing of the Proposals received after the deadline, set forth by the given item, would not be considered and the Proposals will be considered by Organizer with their initial content.

3.4.2.In the case of change of the Proposal, the Applicant has to prepare and submit the following documents: