Public invitation for participation in the public tender for sale of 70% of the socially owned capital of DTD Kamenko Gagrcin AD, Sombor

Based on Article 28 of the Law on Privatization ("Official Gazette of the RoS", Nos. 38/2001, 18/2003, 45/2005 and 123/2007)

1. Total registered capital of the Entity undergoing privatization consists of 98.41% of the socially owned capital and 1.59% of the share capital.
   
2. The Agency is offering for sale 70% of the socially owned capital, i.e. 68.887% of the total registered capital of the Entity undergoing privatization, a company specialized in inland and international waterway transport of goods.
   
3. Information about the Entity undergoing privatization:
   Address: Staparski put bb, Sombor, Republic of Serbia
   Phone: +381(25) 25 874
   Fax: +381(25) 28 150
   Core Activity: Inland waterway transportation
   More details about the Entity undergoing privatization are available at:
   www.priv.yu/pregled_preduzeca/pdf/e-teaser_1470.pdf
   Detailed information about the Entity undergoing privatization, as well as the Instructions to Bidders (hereinafter: "Tender Documents") shall be available to all interested tender participants after signing of the Confidentiality Agreement and payment of the Tender Documents Fee.
   The Tender Documents Fee is EUR 8,000.00 (Euro eight thousand).
   The Agency has appointed Consortium consisting of: BPA London Limited, Great Britain and Tomić and Partners Law Office, Belgrade, as the advisor in this privatization procedure (hereinafter: "Advisor").
   
4. A bid may be submitted by:
   A. An interested bidder that fulfills the following conditions:
   - it has purchased the Tender Documents, and
   - it fulfills one of the following conditions:
   
   a) it has been engaged in inland waterways transportation for at least the last 3 consecutive business years, and achieved operating revenues of not less than EUR 8,000,000 (Euro eight million) in 2007;
   or
   b) is an investor who achieved operating revenues in excess of EUR 50,000,000 (Euro fifty million) in 2007;
   If an interested bidder is a parent company that does not fulfill conditions from this clause of the Public Invitation, its subsidiary has the right to submit the bid, if it fulfills these conditions. The subsidiary that fulfills above mentioned conditions has the right to submit the bid if the parent company purchased the Tender Documents.
   If an interested bidder is a subsidiary that does not fulfill the conditions from this clause of the Public Invitation, its parent company has the right to submit the bid, if it fulfills these conditions. The parent company that fulfills above mentioned conditions has the right to submit the bid if the subsidiary purchased the Tender Documents.
   B. If an interested bidder is a Consortium, it must cumulatively fulfill the following conditions:
   - All Consortium members have passed the Decision on organizing and entering the Consortium,
   - All Consortium members have concluded a written Consortium Agreement and certified it with the Court, i.e. other competent body (in case of foreign legal entities and natural persons),
   - Each Consortium member assumed unlimited joint and several liability by the provisions of the Consortium Agreement,
   - The Consortium Agreement specifies each member’s percentage in the acquisition of the capital of the Entity undergoing privatization, provided that at least one Consortium Member has no less than 51% of share in the Consortium (hereinafter "Consortium Leader")
   - All Consortium members have signed a certified Power of Attorney for the member representing the Consortium,
   - All Consortium members have signed the Confidentiality Agreement,
   - At least one member of the Consortium has purchased Tender Documents,
   - The Consortium Leader fulfills one of the following conditions:
   a) it has been engaged in inland waterways transportation for at least the last 3 consecutive business years, and achieved operating revenues of not less than EUR 8,000,000 (Euro eight million) in 2007;
   or
   b) is an investor who achieved operating revenues in excess of EUR 50,000,000 (Euro fifty million) in 2007;
   
5. The Agency hereby invites all parties interested in participating in the tender to submit a written request for purchasing the Tender Documents for the Entity undergoing privatization, no later then by February 2, 2009.
   Tender Documents will be available to interested parties from January 06, 2009.
   Written requests for purchasing the Tender Documents shall be submitted to the Advisor by mail, e-mail, or fax, clearly marked with "Request for Purchasing the Tender Documents – Tender Code: DTDKG 35/08".
   Upon receipt of this request, an invoice for payment of the Tender Documents Fee, as well as the Confidentiality Agreement for signature, shall be forwarded to the applicant’s authorized representative by mail, e-mail, or fax. The signed Confidentiality Agreement must be immediately faxed and mailed back to the Advisor at the address below.
   Upon receipt of the signed Confidentiality Agreement, the proof of authorization for the person who signed the Confidentiality Agreement, and the proof of payment of the Tender Documents Fee, the Advisor shall deliver the Tender Documents to the tender participant by mail/e-mail or hand it to its authorized representative.
   The Advisor and the Agency shall not be liable in case of loss or delay that may occur in delivery of any document.
   
6. The deadline for submitting final binding offers for purchasing 68.887% of the total registered capital of the Entity undergoing privatization by interested bidders is February 16, 2009 by 4.30 p.m. (Belgrade time).
   If necessary, the Privatization Agency retains the right to change the terms and conditions of this Public Invitation.
   As a prerequisite for submitting a bid, it is required to pay deposit or to submit a Bid Bond in the amount of EUR 200,000 (Euro two hundred thousand).
   
7. For any questions pertaining to this Public Invitation, interested parties may contact persons listed below, in Serbian or English language.
   
   Privatization Agency
   Republic of Serbia
   Terazije 23
   11000 Belgrade
   Republic of Serbia
   Aleksandra Jezdović-Ignjatović
   Project Manager
   Public Tender Center
   Tel: +381 11 3020 855
   Fax: +381 11 3020 816
   Email: ajezdovic@priv.rs
   
   BPA London Limited
   Malcolm Magee-Brown, Project Director
   1st Floor, 10 Arthur Street
   London, EC4R 9AY
   U.K.
   Tel: +44 (0)20 7283 0079
   Fax: +44 (0)20 7929 1252
   Email: m.magee-brown@bpalondon.biz
   
   BPA London doo
   Ivan Ristić, Project Manager
   Ljubinke Bobić 8/16
   11070 Belgrade
   Serbia
   Tel /Fax: +381 11 318 22 11
   Email: ivanristic@bpalondon.biz