Solicitation of Expressions of Interest for consulting firm to conduct welfare and labor impact study for RTB BOR

11. August 2005.
The Government of Serbia (GoS) is expecting to receive, through Serbia and Montenegro, a PHRD Grant from the Japanese Government and intends to apply a part of the Grant to fund a Consulting Firm to Conduct Welfare and Labor Impact Study for RTB Bor.

Background Information

RTB Bor is a large mining complex in eastern Serbia. The region, consisting of the Bor and Majdanpek municipalities and a number of other villages where Bor's mines are located, are amongst the poorest in Serbia. Due to a number of reasons, there is a clear need to restructure RTB Bor, including the severance of a large number of Bor's present work force. This restructuring will only add to the region's poverty and unemployment levels, unless there is a program for social support to the region, the restructuring is phased over some period of time and the government focuses on the future mining prospects of the region.

In order to better understand the potential welfare effects and enable both the authorities and the World Bank to address these issues in a socially acceptable and fiscally responsible manner, an in-depth labor impact and welfare study at Bor will be conducted. When combined with alternative policy recommendations, legal and institutional design options, the results of the survey will help defining the intersection of desirable, affordable and implementable policies.

The proposed Study will help the Government address its most important and urgent priorities: (i) industrial restructuring and privatization, (ii) employment generation and (iii) increased efficiency of poverty reduction instruments. It will be expected to provide the analytical foundation for designing the optimal social mitigation package, including both severance pay and active labor market measures, which could be supported under the potential WB project.

Beyond mapping the socio-economic characteristics and preferences of employees, the study will also trace former employees in order to improve the poverty alleviation and the employment promotion efficiency of the cash benefits and non-cash assistance received at, before and after layoffs.

The survey aims to capture a representative sample of various categories of RTB Bor employees in order to assist the Government in designing optimal social assistance in the event of downsizing. Beyond collecting socio-economic data, the survey aims to determine employee preferences relating to compensation, alternative employment, and labor market assistance.

The survey will cover both current employees and workers who were released over the past five years but will be geographically limited to the region.

It is estimated that the assignment will commence immediately upon contract signing and shall be completed not later than December 31, 2005. The estimated number of professional staff-days required for the assignment is 200 staff-days.

The firm should have:

(a) extensive prior experience of collecting the socio-economic data on Serbia through the use of large-scale survey instruments;
(b) proven ability to analyze the collected data with the use of contemporary statistical applications and research methodology;
(c) be experienced in dealing with issues related enterprise restructuring in heavy industries

The Privatization Agency, Republic of Serbia, now invites Expressions of Interest from qualified firms which should specify the following minimum qualification information in order to be considered for qualification: (i) profile of the firm; and (ii) names and curricula vitae of the firm’s key personnel proposed for this project, evidencing all the requirements listed in the previous paragraph (a) to (c).

The Consultant will be selected using the SBCQ (‘Selection based on Consultants Qualifications”) method, in accordance with the procedures set out in the Guidelines: Selection and Employment of Consultants by World Bank Borrowers, May 2004.
Further information on the assignment may be obtained at the address below from Monday-Friday (10:00 - 16:00 hours, local time).
Interested and eligible Consultants who wish to participate should submit their Expressions of Interest to the address below by August 25, 2005 (Thursday), not later than 16:00 hours (local time).

Contact: Ms. Zorica Petrovic
PMU Director
Privatization Agency
Republic of Serbia
Serbia and Montenegro
Terazije 23, 6th floor
11000 Belgrade
Tel.: (381 11) 3029 968
Fax: (381 11) 3020 828
E-mail: zpetrovic@priv.yu

Cc: Ms. Snezana Tosic
Procurement Officer
Privatization Agency
Republic of Serbia
Serbia and Montenegro
Terazije 23, 6th floor
11000 Belgrade
Tel.: (381 11) 3020 815
Fax: (381 11) 3020 828
E-mail: stosic@priv.yu
РТБ Бор доо
Equity Fund

RTB Bor doo



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