1 Instructions to bidders  Eligibility  Procedure for clarifications  Bid preparation - form  Number of copies, addressee  Language  Pricing and currencies  Modification and withdrawal  Bid securities  Bid submission procedures

2 Instructions to bidders (cont.)  Bid validity  Closing date  Opening time, date, place  Corrections  Bid evaluation criteria and procedures  Domestic preferences  Post-qualification  Performance security

3 Currency provisions  Objective Remove currency risk from bidders to get best price Permit bidders to use strong currency in bid - to permit participation by weak currency countries Ensure fairness to all bidders in currency conversion comparison Permit borrower to requirelocal expenses to be quoted in local currency

4 Currency provisions (cont.) Bid price in currency of bank member country or US$ or euro Borrower may require local costs in local currency Contract expressed in the currency in which price is stated

5 Currency provisions (cont.)  Payment Contract currency (bid currency) If expressed in borrower’s currency, protect original bid value Facilitate transfer of foreign currency payments

6 Security bonds and guarantees  Bid security (when required) Should not be too high 1 to 3% normal Fixed amount preferable

7 Conditions of contract  Rights and obligations of both parties  Procedure for shipment, insurance inspection, documentation  Procedure for measurement  Procedure for change orders  Procedure, terms and currencies of payment

8 Conditions of contract (cont.)  Procedure for performance securities  Force majeure  Procedure for damages, penalties for delay  Procedure for termination  Mode and form for settling disputes  Applicable law

9 Contract Buyer and seller More important Agree to terms, have the right to demand performance This promise to do or not to do something, is enforceable by law and incorporates remedial rights for non performance

10 Special conditions of contract  Provides contract-specific information to corresponding clauses in GCOC  Definition of the purchaser- supplier  Specific amount of performance security  Specific procedures for inspection and testing

11 Special conditions of contract (cont.)  Special requirements for: Packing, delivery Documents Insurance Incidental services Spare parts Warranty

12 Special conditions of contract (cont.)  Specific payment terms / currency  Liquidated damages  Resolution of disputes  Governing language

13 Payment terms  Follow Commercial practices Payment on proof of shipment Payment through letters of credit Payment after installation Bank guarantee for warranty

14 Inspection  Pre-shipment inspection  Dimensional checking  Overall dimensions, tolerances, surface alignment, centering, straightness, etc.  Performance testing  Visual equipment inspection  Packing and marking inspection  Commissioning & testing

15 Insurance conditions  Type, assured, co-assured  Goods insured, evaluation basis  Voyage, conveyances  Duration of risk  Claim settlement and procedure