4.1 Bid Components

The Project Proponent's response to this bid documents must consist of the following part, having each item of every part properly identified with tabs, which must be submitted simultaneously:

4.1.1 The Technical Proposal shall contain the following submissions that shall be contained in the First Envelope:

a. Technical soundness (proposed technical specifications) - This shall contain, among other, a confirmation of the technical soundness of the design, plans, and technical drawings of the Project prepared by the LGU attached as Annex A of the draft Contract;

b. Operational feasibility - This shall describe the proposed organization, methods and procedures for the operation and maintenance of the Project;

c. Project cost and financing - This shall indicate the construction cost (broken down into detailed components) of the Project and the proposed financing plan broken down according to equity and debt, including proposed sources (foreign and/or local financing institutions) and cost of money;

d. Operating and Maintenance Cost - This shall contain the annual Operating and Maintenance cost for the Project as a percentage of the annual revenue;

e. Preliminary environmental assessment - This shall indicate the possible adverse effects of the Project on the environment and the corresponding mitigating measures;

f. Bid security - This shall be in the form, amount and period of validity prescribed in Section 2.7.

4.1.2 The Financial Proposal shall contain the following submissions that shall be contained in the Second Envelope;

Compliance statements with regard to the financial parameters stated in the tender documents, which may include those on liquidated damages, performance and warranty bonds, insurance cover for the project including comprehensive general liability insurance, acceptance tests and procedures, and warranty period and procedures (after transfer)

Proposed Project Cost, operation and maintenance cost, project financing scheme including the amount of equity to be infused and debt to be obtained for the project, sources of financing, and all other related costs

Financial bid corresponding to the parameters set by the LGU