Section 9 – Contract Forms 9-1

Section 9 - Contract Forms

This Section contains the Letter of Acceptance, the Contract Agreement and Appendices to the
Contract Agreement which, once completed, will form part of the Contract.

Table of Forms

NOTIFICATION OF AWARD (

LETTER OF ACCEPTANCE)........................................................................................................................... 2

CONTRACT AGREEMENT.............................................................................................................................. 3

SCHEDULE OF PAYMENTS............................................................................................................................ 5

APPENDIX 1 - INITIAL ENVIRONMENTAL EXAMINATION………………………………………………………6

PERFORMANCE SECURITY………………………………………………………………………………………….7

ADVANCE PAYMENT SECURITY……………………………………………………………………………………8

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LETTER OF ACCEPTANCE
Name of Contract: Design, Build and Operate 20MW Solar Power
Station at Naghlu

Contract No.: [Contract Number]

To: [Name]

Your Reference: [Reference]

Our Reference: [Reference]

We thank you for your Tender dated [Date] for the design, execution and completion of the Works comprising
the above-named Contract and remedying of defects therein so that they are fit for the purposes defined in the
Contract, and for the operation and maintenance thereof under licence for the period of [Number of years]
years, all in conformity with the terms and conditions contained in the Contract as amended by the attached
Memorandum, signed by you and ourselves.

We have pleasure in accepting your Tender (as corrected/adjusted in accordance with the Memorandum) for
the Accepted Contract Amount of:

This amount is made up of the following components: [Currency and amount in figures] ([Currency and
amount in words]).

For the Design-Build of the Works, the amount of: [Currency and amount in figures] ([Currency and
amount in words]).

For the Operation Service, the amount of: [Currency and amount in figures] ([Currency and
amount in words]).

For the Asset Replacement Fund, the amount of:

In consideration of you properly and truly performing the Contract, we agree to pay you the Accepted Contract
Amount or such other sums to which you may become entitled under the terms of the Contract, at such times
and as prescribed by the Contract.

We acknowledge that this Letter of Acceptance creates a binding Contract between us, and we undertake to
fulfil all our obligations and duties in accordance with the terms of this Contract.

Signed by (signature):

For and behalf of: [Name]

Date: [Date]

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Section 9 – Contract Forms 9-3

CONTRACT AGREEMENT
THIS AGREEMENT made the ____________ day of _____________, 20____, between
____________________________________ (Name of Employer) of _________________________ (address of
Employer) (hereinafter called “the Employer”), of the one part, and ___________________________________
(name of Contractor) of _______________________________ (address of Contractor) (hereinafter called the
“Contractor”), of the other part”:

Whereas the Employer desires that the Works known as _________________________________ (Name of
Contract) should be designed, executed and operated by the Contractor and has accepted a Tender from the
Contractor for the design, execution, completion and operation and maintenance of these Works, and the
remedying of any defects therein.

The Employer and the Contractor agree as follows:

1 In this Agreement, the words and expressions shall have the same meanings as are respectively assigned
to them in the Conditions of Contract hereinafter referred to.

2 The following documents shall be deemed to form and be read and construed as a part of this Agreement:

(a) The Letter of Acceptance dated [Date]

(b) The Letter of Bid dated [Date]

(c) The Addenda Nos. [Numbers]

(d) The Conditions of Contract

(e) The Employer’s Requirements

(f) The Schedule of Payments attached to this Agreement

(g) The completed Schedules

(h) The Operating Licence, and

(i) The Contractor’s Proposal.

(j) List of Eligible Countries that was specified in Section 5 of the Bidding Document

3. The provisions to be found in the “Particular Conditions Part B – Special Provisions” take precedence over
the equivalent provisions found under the same Sub-Clause numbers in the “General Conditions”, and the
provisions of the “Particular Conditions Part A – Contract Data” take precedence over the “Particular
Conditions Part B – Special Provisions”

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4. In consideration of the payments to be made by the Employer to the Contractor as hereinafter mentioned,
the Contractor hereby covenants with the Employer to design, execute, complete, operate and maintain the
Works and remedy any defects therein in conformity with the provisions of the Contract and the Operating
Licence granted by the Employer.

5. The Employer hereby covenants to pay the Contractor, in consideration of the design, execution,
completion, operation and maintenance of the Works and the remedying of defects therein, the Contract
Price at the times and in the manner prescribed by the Contract, and to grant the Contractor a royalty-free
licence to enable him to operate and maintain the Works during the Operation Service Period.

In witness whereof the Parties hereto have caused this Agreement to be executed on the day and year first
above written.

Signed by (signature):

for and on behalf of the Employer in the presence of

Witness (signature):

Name: [Name]

Address: [Address]

Date: [Date]

Signed by (signature):

for and on behalf of the Contractor in the presence of

Witness (signature):

Name: [Name]

Address: [Address]

Date: [Date]

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Section 9 – Contract Forms 9-5

Schedule of Payments

Estimated
Estimated Payment
Cost Payment
Cost (cumulative)
(cumulative)

Advance payment 0% 0% 10% 10%

Detailed engineering and design approved 6% 6% 5% 15%
Arrival on site of last panel structure 13% 19% 10% 25%
Arrival on site of 20% panels 7% 26% 6% 31%
Arrival on site of 40% panels 7% 33% 6% 37%
Arrival on site of 60% panels 7% 40% 6% 43%
Arrival on site of 80% panels 7% 47% 6% 49%
Arrival on site of last panel 7% 54% 6% 55%
100% of panel erection 10% 64% 10% 65%
Arrival on site of last inverters and transformer 16% 80% 10% 75%
100% inverter/transformer/prefabricated housing installation 1% 81% 4% 79%
Transmission line, substation including transformers installation 8% 89% 5% 84%
End of Civil Works 6% 95% 5% 89%
Water treatment plant 0% 95% 1% 90%
Others up to completion 5% 100% 90%
Commissioning Certificate 100% 10% 100%

Total Design Build 100% 100%

O&M service will be paid quarterly in arrears.

Note: Percent refers to percent of design-build cost
Advance payment will be in accordance with GCC 14.2.

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Appendix 1 – Initial Environmental

Examination

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Section 9 – Contract Forms 9-7

Performance Security
[Bank’s name, and address of issuing branch or office]1
Beneficiary: ..................................................................... [ Name and address of the
employer] ....................................................................
Date: ......................................................................................................................................
.................................................................................
Performance Guarantee No.:
................................................................................................................................................
....................
We have been informed that . . . . . [name of the contractor] . . . . . (hereinafter called “the
Contractor”) has entered into Contract No. . . . . . [reference number of the contract] . . . . . dated
. . . . . with you, for the execution of . . . . . [name of contract and brief description of works] . . . . .
(hereinafter called “the Contract”).

Furthermore, we understand that, according to the conditions of the Contract, a

performance guarantee is
required.

At the request of the Contractor, we . . . . . [name of the bank] . . . . . hereby irrevocably

undertake to pay you any sum or sums not exceeding in total an amount of . . . . . [name of
the currency and amount in words]2. . . . . (. . . . . [amount in figures] . . . .) such sum being payable
in the types and proportions of currencies in which the Contract Price is payable, upon
receipt by us of your first demand in writing accompanied by a written statement stating
that the Contractor is in breach of its obligation(s) under the Contract, without your
needing to prove or to show grounds for your demand or the sum specified therein.

This guarantee shall expire, no later than the . . . . . Day of . . . . ., . . . . .,3 and any demand for
payment under it must be received by us at this office on or before that date.

This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No.
458 (or ICC Publication No. 758 as applicable), except that subparagraph (ii) of Sub-article
20(a) is hereby excluded.4
............................
Signature(s) and seal of bank (where appropriate)

1 All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the
final document.
2 The guarantor shall insert an amount representing the percentage of the contract price specified in the

contract and denominated either in the currency(ies) of the contract or a freely convertible currency
acceptable to the employer.
3 Insert the date 28 days after the expected completion date. The employer should note that in the event

of an extension of the time for completion of the contract, the employer would need to request an
extension of this guarantee from the guarantor.
Such request must be in writing and must be made prior to the expiration date established in the
guarantee. In preparing this guarantee, the employer might consider adding the following text to the
form, at the end of the penultimate paragraph: “The Guarantor agrees to a one-time extension of this
guarantee for a period not to exceed 1 year, in response to the Employer’s written request for such
extension, such request to be presented to the Guarantor before the expiry of the guarantee.”

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4Or the same or similar to this clause specified in the Uniform Rules for Demand Guarantees, ICC
Publication No. 758 where applicable.

Advance Payment Security

[Bank’s name, and address of issuing branch or office]1
Beneficiary: ..................................................................... [ Name and address of the
employer] ....................................................................
Date: ......................................................................................................................................
.................................................................................
Advance Payment Guarantee No.:
................................................................................................................................................
.........
We have been informed that . . . . . [name of the contractor] . . . . . (hereinafter called “the
Contractor”) has entered into Contract No. . . . . . [reference number of the contract] . . . . . dated
. . . . . with you, for the execution of . . . . . [name of contract and brief description of works] . . . . .
(hereinafter called “the Contract”).

Furthermore, we understand that, according to the Conditions of the Contract, an advance

payment in the
sum . . . . . [name of the currency and amount in words]2. . . . . (. . . . . [amount in figures] . . . . .) is to
be made against an advance payment guarantee.

At the request of the Contractor, we . . . . . [name of the bank] . . . . . hereby irrevocably

undertake to pay you any sum or sums not exceeding in total an amount of . . . . . [name of
the currency and amount in words]3. . . . . (. . . . . [amount in figures] . . . . .) upon receipt by us of
your first demand in writing accompanied by a written statement stating that the
Contractor is in breach of its obligation under the Contract because the Contractor used
the advance payment for purposes other than the costs of mobilization in respect of the
Works.

It is a condition for any claim and payment under this guarantee to be made that the
advance payment referred to above must have been received by the Contractor on its
account number . . . . . [contractor’s account number] . . . . . at. . . . . [name and address of the bank] .
....

The maximum amount of this guarantee shall be progressively reduced by the amount of
the advance payment repaid by the Contractor as indicated in copies of interim statements
or payment certificates, which shall be presented to us. This guarantee shall expire, at the
latest, upon our receipt of a copy of the interim payment certificate, indicating that ninety
percent (90%) of the Contract Price has been certified for payment, or on the . . . day of
. . . . ., . . . . .,4 whichever is earlier. Consequently, any demand for payment under this
guarantee must be received by us at this office on or before that date.

This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No.
458 (or ICC PublicationNo 758 as applicable).

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Section 9 – Contract Forms 9-9

............................
Signature(s) and seal of bank (where appropriate)

1 All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the
final document.
2 The guarantor shall insert an amount representing the amount of the advance payment denominated

either in the currency(ies) of the advance payment as specified in the Contract, or in a freely convertible
currency acceptable to the employer.
3 Footnote 2.

4 Insert the expected expiration date of the time for completion. The employer should note that in the

event of an extension of the time for completion of the contract, the employer would need to request an
extension of this guarantee from the guarantor. Such request must be in writing and must be made prior
to the expiration date established in the guarantee. In preparing this guarantee, the employer might
consider adding the following text to the form, at the end of the penultimate paragraph: “The Guarantor
agrees to a one-time extension of this guarantee for a period not to exceed [6 months, in response to the
Employer’s written request for such extension, such request to be presented to the Guarantor before the
expiry of the guarantee.

Design, Build and Operate 20MW Solar Power Station at Naghlu Single-Stage: One-Envelope