Based on the Decision of the Municipal Assembly of Ljubinje on the acceptance of the credit debt of the Municipality of Ljubinje number: 01-443-1/23 of December 7, 2023, and the consent of the Ministry of Finance of the Government of Republika Srpska for credit debt number 06.04/400-1215-1/23 of December 21, 2023, and the Decision of the Mayor on exemption from the application of the Law on Public Procurement of Bosnia and Herzegovina number: 02-404-6/24 of January 29, 2024, and in accordance with the provision of Article 10.a, paragraph 1, point “f” of the Law on Public Procurement (Official Gazette of BiH, number 39/14, 59/22), the Mayor of the Municipality of Ljubinje announces:

PUBLIC CALL

To Credit Institutions (Banks) for submitting bids for the long-term credit debt of the Municipality of Ljubinje

The Municipality of Ljubinje (hereinafter: the Municipality) intends to conduct a long-term credit debt procedure in the amount of 600,000.00 KM, for the purpose of financing part of the capital investments planned in the budget of the Municipal Assembly of Ljubinje for 2024, specifically: 350,000.00 KM for the reconstruction and asphalting of Svetosavska Street in Ljubinje, and 250,000.00 KM for the procurement of a special-purpose motor vehicle for municipal waste collection.

General conditions that the bank must meet from this public call are:

a) That the Bidder has not been convicted by a final judgment in criminal proceedings for criminal acts of organized crime, corruption, fraud, or money laundering, in accordance with the applicable regulations of Bosnia and Herzegovina or the country in which it is registered;

b) That the Bidder is not in bankruptcy or subject to bankruptcy proceedings, except in the case of a valid decision on the confirmation of the bankruptcy plan, or that it is not subject to liquidation proceedings, or in the process of suspending business activities, in accordance with the applicable regulations in Bosnia and Herzegovina or the country in which it is registered;

c) That the Bidder has fulfilled its obligations related to the payment of pension-disability insurance and health insurance, in accordance with the applicable regulations in Bosnia and Herzegovina or the regulations of the country in which it is registered;

d) That the Bidder has fulfilled its obligations related to the payment of direct and indirect taxes in accordance with the applicable regulations in Bosnia and Herzegovina or the country in which it is registered;

e) The Bidder must be registered to perform the activity that is the subject of the Public Call.

Description of the subject of the Public Call

The subject of this public call is the long-term credit debt of the Municipality with a credit institution (bank) for a total amount of 600,000.00 KM for the purpose of financing part of the capital investments planned in the budget of the Municipal Assembly of Ljubinje for 2024, specifically: 350,000.00 KM for the reconstruction and asphalting of Svetosavska Street in Ljubinje and 250,000.00 KM for the procurement of a special-purpose motor vehicle for municipal waste collection, with a fixed interest rate of up to 5.5% per annum, repayment method of equal monthly annuities with a maximum repayment period of 84 months, including a grace period of 6 months (repayment period is 7 years) and credit security instruments, which are promissory notes and blank payment orders of the Municipality, in accordance with the applicable procedure of the selected bank.

Qualification of banks for long-term debt, point 1 of this Public Call, will be performed based on the following criteria:

interest rate up to 5.5% per annum – fixed

credit processing fee up to 1%

repayment period maximum 84 months (7 years)

currency of payment – convertible mark

grace period 6 months (included in the loan repayment of 7 years)

repayment method – in equal monthly annuities

The ranking of banks based on the effective interest rate criteria is carried out by a commission appointed by the decision of the Mayor of the Municipality of Ljubinje, and the ranking list of banks is submitted to the mayor for further procedure.

The bank that offers the lowest effective interest rate will be ranked first.

Award of Contract

The Mayor of the municipality will award the Contract to the most economically advantageous qualified Bidder who has fulfilled the conditions from point 2 and the categories from point 4, in accordance with the ranking list from point 4 of this Public Call.

The credit debt will be used to finance the capital investments listed in point 3 of this Public Call.

The Municipality of Ljubinje will provide the selected Bidder with promissory notes and certified and signed blank payment orders for the purpose of securing the loan.

Interested banks should submit the following documentation:

a) bid form (attachment no. 1)

b) statement (attachment no. 2)

The Bidder may, along with its bid and Statement (Attachments 1 and 2), immediately submit the requested evidence from point 2 from “a” to “d”. This way, the Bidder is exempt from subsequent submission of evidence if selected. The submitted evidence must be originals or certified copies not older than 3 months, counting from the day of bid submission, and is submitted by the selected Bidder within 5 days from the day of receipt of the Decision on Bidder Selection. The evidence must be physically delivered to the protocol of the Municipality of Ljubinje, no later than five days after receiving the Decision on Selection, and no later than 3 PM on the fifth day.

The Bidder to whom the contract is awarded is obliged to submit the following documents confirming the credibility of the statement given in point 6:

Certificate from the competent court (according to the registered office of the legal entity) proving that no final judgment has been pronounced in criminal proceedings convicting it of a criminal offense of participation in a criminal organization, corruption, fraud, or money laundering.

Confirmation from the Court of Bosnia and Herzegovina proving that no final judgment has been pronounced in criminal proceedings convicting it of a criminal offense of participation in a criminal organization, corruption, fraud, or money laundering.

Certificate from the competent court or administrative body where the Bidder is registered, confirming that it is not in bankruptcy or subject to bankruptcy proceedings, and that it is not subject to liquidation proceedings and is not in the process of suspending business activities.

Certificate issued by the competent institutions confirming that the Bidder has settled due obligations related to pension-disability and health insurance contributions.

Certificate issued by the competent institutions confirming that the Bidder has settled due obligations related to the payment of direct and indirect taxes.

As proof of fulfilling the conditions from point 2. “d”, the Bidder should submit:

Proof of registration in the appropriate professional or other register in the country where they are registered or provide a special statement or certificate from the competent authority proving their right to perform the professional activity related to the subject of the public call. Submitted evidence is recognized, regardless of the level of government at which it was issued.

Work permit issued by the Banking Agency

JIB and VAT number

BID FORM BANK – ATTACHMENT 1 from point 6. a) of this public call, form: STATEMENT – Attachment 2 from point 6. b) are an integral part of the documentation that the bank downloads from the Municipality’s website (www.opstinaljubinje.org) for application to participate in this Public Call.

Preliminary repayment plan in accordance with the submitted bid.

Calculation dates for bid preparation

The Bidder may use the following calculation methods for preparing its bid:

loan disbursement date is May 1, 2024

first interest calculation date is June 1, 2024

grace period expiry date is in accordance with the bid of the selected Bidder

first loan annuity due date (principal + interest) is in accordance with the bid of the selected Bidder.

Interest repayment during the grace period is monthly in arrears. After the grace period expires, repayment of due obligations will be made in equal monthly annuities – monthly in arrears.

A simple method based on 365 days is applied in the loan calculation. Interested bidders may request clarification of this Public Call from the Municipality via email, in a timely manner, and no later than 10 (ten) days before the bid submission deadline. The Municipality will prepare an answer to the question within 3 (three) days.

Deadline and method of submitting the application for participation

The application for participation with accompanying documentation is submitted no later than February 16, 2024, by 10 AM to the protocol of the Municipality. The public opening of bids will be held on February 16, 2024, at 2 PM, in the hall of Hotel Ljubinje.

Bidders or their authorized persons may attend the bid opening.

Notification of the selection results will be sent to all banks that have submitted an application for participation.

The bid is valid for 60 days from the date of bid opening.

Applications for participation are submitted in a sealed and closed envelope to the following address:

Municipality of Ljubinje

Svetosavska bb

88380 Ljubinje

The envelope must be marked: For the Municipality of Ljubinje – Application for the Public Call to Credit Institutions – “DO NOT OPEN”.

Applications for participation submitted after the specified deadline will not be considered.

Application documentation can be downloaded from the Municipality of Ljubinje website: www.opstinaljubinje.org

The Public Call will be published on the Municipality of Ljubinje website on February 1, 2024, and in the daily newspaper Glas Srpske.

Person authorized to provide information regarding this Public Call:

Vitomir Vojčić: ljubinje@teol.net

Number: 02-022-4/24

Date: February 1, 2024

Mayor of the Municipality of Ljubinje

Stevo Drapić