In dealing with our contractors TAP ensures:
- Equal treatment of all bidders
- Competitive tendering
- Objectivity, transparency and reliability in our tendering process
Following confirmation by TAP’s shareholders of their Resolution to Construct and the Shah Deniz Consortium’s Final Investment Decision on Stage 2 of its development, TAP is now proceeding with implementation of the project.
This includes the preparation of tendering for steel pipes, offshore and onshore construction, and other associated services and items.
TAP’s schedule is in full alignment with the upstream developments. This means that the exact timing of specific tendering activities is dependent on the progress of Shah Deniz Stage 2 in the Caspian Sea.
Below is a description of the types of contracts TAP plans to award and the main steps in the project’s procurement process.
Interested contractors and suppliers with specific enquiries can get in touch with TAP’s procurement department at firstname.lastname@example.org
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Overview of contracts to be awarded by TAP
TAP plans to award large package contracts for onshore and offshore construction of the pipeline and other services and items. These contracts will fall under one of the three following categories:
Early Works (EW) Contracts
- Construction and rehabilitation of access roads and bridges in Albania [Contract Notice published by the EU Gazette, April 2014; Contract awarded in April 2015]
Company Provided Items (CPI) Contracts
- Line pipes, casing pipes and bends
Large diameter valves [Contract Notice published by the EU Gazette, July 2014]
- SCADA systems [Contract Notice published by the EU Gazette, September 2015]
- Turbo compressors [Contract Notice published by the EU Gazette, June 2014]
- Fibre optic cable [Contract Notice published by the EU Gazette, September 2015]
- Fittings, isolating joints and scraper traps [Contract Notice published by the EU Gazette, May 2015]
Engineering Procurement Construction (EPC) contracts
- Onshore pipeline construction [Contract Notice is published by the EU Gazette, May 2014]
- Compressor stations [Contract Notice is published by the EU Gazette, June 2014]
- Offshore pipeline construction [Contract Notice is published by the EU Gazette, February 2015]
- Pipeline Receiving Terminal and Italy onshore construction [Contract Notice is published by the EU Gazette, March 2015]
EPC contractors will be responsible for hiring sub-contractors to implement specific parts of the contract assignments.
Overview of procurement process
The procurement of goods and services for the construction of the pipeline is conducted in a phased approach, dependent on the project’s progress and in line with the schedule set by the Shah Deniz 2 upstream development.
Overall, TAP’s procurement follows a two-step process:
- The selection phase
- The contract award phase
1. The selection phase (in progress)
During the selection phase, TAP runs the so-called ‘pre-qualifications’ aimed at identifying contractors with the required skills, capacity, experience and capabilities to deliver the goods and services TAP is seeking to procure.
Interested parties are required to submit an Expression of Interest (EoI) in line with the requirements set out in the pre-qualification documentation. The EoIs are assessed and evaluated against the selection criteria defined by TAP.
Typical pre-qualification criteria include:
- Financial strength
- Relevant certifications related to quality assurance/quality control and health, safety and environment standards.
In April 2014, following a review of its strategy and schedule, TAP decided to re-launch its procurement process and new pre-qualifications for goods and services were initiated.
The revised process aims to provide the maximum opportunity for national and international suppliers to participate in the project. For more information, please read the news release here [News announcement on the pre-qualification re-launch].
We encourage all companies with relevant experience – including those that applied previously – to participate in the new rounds of pre-qualification.
2. The Contract Award phase (in progress)
Companies that meet the pre-qualifications criteria will be short-listed and invited to participate in the next phase of the procurement process – the Contract Award Phase.
Selected companies will receive an Invitation to Tender (ITT). Submitted tenders will be evaluated in accordance with the pre-defined criteria and contracts will be awarded to the bidder that best satisfies TAP’s requirements.
Typical contract award criteria will include:
- Technical capability
- Local competence (when applicable)
- Integrity due diligence