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Agreement for Engineering, Procurement and


Construction
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RELATING TO
THE COPPER MINING PROJECT, SHINKAI REGION, NORTH WAZIRISTAN AGENCY, PAKISTAN
EPC Definition
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Engineering, Procurement and Construction (EPC) is a particular form of


contracting arrangement used in some industries where the EPC contractor is
made responsible for all the activities from design, procurement, construction,
commissioning and handover of the project to the end-user or owner.
How does an EPC contract work?
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Agreement Details
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Signing Date 2nd Mar 2016

Rupees 2,635 Million only. (two billion, six


Agreement Price
hundred thirty-five million)

15 Mar 2016 (Date of issuance of the Notice to


Commencement Date
Proceed)

If any specific provisions Not Required

All numbers, figures and timelines in this


Further, please provide
agreement.
EIA Report & Approval
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The environmental impact assessment report and the relevant environmental


protection agency’s determination in respect thereof, in each case, relating to the
Project attached hereto at Schedule H(EIA Report & Approval)

Comments

This EIA (environmental impact assessment) report/approval has not been


obtained yet.
Employer’s Requirements
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Means the document titled ‘Employer’s Requirements’, as included in this


Agreement as Schedule A(Employer’s Requirements)

Specifies, the purpose, scope, and/or design and/or other technical criteria, for the
Works.
Employer’s Engineer or Engineer
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Please confirm if an independent entity or


engineering firm has been appointed by the
Employer to monitor and supervise matters
Question relating to the Project. Amendments
throughout this Agreement will be required if
no such appointment has been made or is not
anticipated.

Already Hired :

Comment H&A Associates

Dr. Abeer (Tailing Dam)


Facility Definition
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Question

Please confirm this definition.


Facility means the copper beneficiation facility which meets the specifications set
out in the Employer’s Requirements and is in compliance with the Applicable
Standards, to be established at the Project Site, as more particularly described in
SCHEDULE A(Employer’s Requirements)

Comment Confirmed
LDs Cap
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Question

Please confirm if there is a cap on the Contractor’s liability to pay damages to the
Employer. This is usually defined as a certain percentage of the lump sum agreement
price.

Comment % Need to be Confirmed


Punch List Completion Period
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Means the [insert duration]day period starting from the date on which the
Taking-Over Certificate is issued , during which the Contractor shall complete
the minor and incidental items of the relevant Works (as set out in the Taking-
Over Certificate) which are not necessary for the safe and reliable use of the
Works following the issuance of the Taking-Over Certificate;

Question

Please confirm the defects liability period.

Comment Need to be Confirmed


Time for Completion
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Question

Please confirm time for completion of the Works excluding the defects liability
period.

If Commencement Date : Mar 2016 (33 Months)

Comments

If Commencement Date : July 2017 (18 Months)


Communications / Parties Details
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To: Col® Zaafir Nisar


Designation: Chief Operating Officer
Employer’s details: Address: 509, Kashmir Road, R.A Bazar,
Rawalpindi, Pakistan

TO: [insert name]


DESIGNATION: [insert designation]
ADDRESS: 509, Kashmir Road, R.A Bazar,
Contractor’s details: Rawalpindi, Pakistan
Operation and Maintenance Manuals
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Question

Please confirm if the Contractor is required to provide these

Contractor is not required to provide these


Comment
Operation and Maintenance Manuals
Commencement of Works
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Question

TheEmployer shall give the Contractor, within [seven (7) days]of the Signing Date,
the Notice to Proceed (As above, please confirm.)

Comment 15 Mar , 2016


Delay Damages
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If Contractor fails to procure the Taking-Over Certificate by the expiry of the Time
for Completion, the Contractor shall pay the Employer as compensation for damages
and not as penalty

Question

Please note that typically a computation mechanism is usually set out in stone in
EPC contracts. The applicable LD’s or computation mechanism of the same are
annexed to the EPC contracts as a schedule. However, here we have provided that
the LD’s will be determined by the Employer’s Engineer in consultation with the
Employer. Please confirm if this is commercially acceptable.

Comment Percentage need to be confirmed


Contractor’s Obligations
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Question

Wether following tests are relevant/applicable and will be carried out or not?

(a) Pre-Commissioning Tests, which shall include the appropriate inspections and
(“dry”and “cold”) functional tests to demonstrate that each item of Plant can
safely undertake the next stage

(b) Commissioning tests, which shall include the specified operational tests to
demonstrate that the Works or Section can be operated safely and as specified,
under all available operating conditions

(c) Trial operation, which shall demonstrate that the Works or Section perform
reliably and in accordance with this Agreement
Application for Interim Payments
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The Agreement Price shall be paid following completion of each milestone (or
part thereof) specified in SCHEDULE D(Payment Milestones) (the “Payment
Milestone”), in accordance with this Agreement.

The Employer shall deduct and retain an amount of [ten percent (10%)] from
every approved Statement as “Retention Money” until the aggregate Retention
Money reaches [ten percent (10%)] of the Agreement Price

Need to be discussed if payment will be made in instalments or lump-sum?


Delayed Payment
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The Late payments by either Party of amounts due and payable under this
Agreement shall bear interest at a rate per annum calculated at the simple annual
rates given as under:

For Local Currency Payments =[two per cent (2%) above KIBOR (Karachi
Interbank Offered Rate).

Please provide the delayed payment penalty (this is not to be confused with LDs).

Comment Interest rate need to be confirmed


Insurance
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Please confirm.
Schedule D- Payment Milestones
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NO. PAYMENT MILESTONES ESTIMATED MONTH AFTER [INSERT DATE]

1.

2.

3.

4.

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