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Gold/Mining/Energy : Unitec Int. Controls Inc. -- Ignore unavailable to you. Want to Upgrade?

To: csm who wrote (625)	11/25/1998 10:14:00 AM
From: John B. Smyth	Read Replies (1) \| Respond to of 856

Are you thinking of the Indonesian OECF financed tender rather than Malaysia, Stuart? I think you might be referring to the Indonesian OECF (Japanese Organization for Economic Cooperation Fund) bid. I sent George (VP Operations) down for final presentations last weekend. I would have gone myself, but I have been ill for the past several days and am needed here to complete the legal and financial details relating to the new Saskatchewan operations. George called Monday to advise that they met with the OECF officials, consultant and customer. He said that our Agent was very well prepared with personal supporting representations from other Unitec customers in Jakarta. He indicated that the questions asked showed a very strong bias to award it to the Japanese company even though their technology was far behind ours and the price he learned was 60% higher. I understand that our agent will be making representations to the Indonesian congress and/or launching a suit if they don't award it to us as the OECF funding is repayable in hard currency - not a soft loan. We have previously won OECF contracts over the same competitor, so there is a precedent. George's feeling was that we are 90% there. We recently delivered our third flood monitoring and warning SCADA system to Malaysia and are looking at one for the electrical utility there, but from the information at hand I don't think we will bid it. We have estimated the bid at $2.5M, but it has some risks that I don't feel comfortable with at the moment. I have asked our agent to request an extension to allow us more time to examine it closer. If we can get an extension, we will consider it, but with the limited information at hand, I don't like the risk level. Regards, John