Subject NOT available

17 637 GI/R3—3

MINISTRY OF COMMERCE

IMPORT TRADE CONTROL

PUBLIC NOTICE NO. 33-lTC(PN)/K3

New Delhi, the 25th August, 1983

Subject :—Licensing conditions for import of goods and services under the Yen Credit, of Yen 2.0 Billion for the implementation of the Tamil Nadu State Micro Hydro Power Stations Construction Project.

File No. lPC/23(5)/83.—The terms and a d-

ditions in respect of imports of goods and services under the Yen Credit of Yen 2.0 Billion for the implementotion of the Tamil Nadu State Micro Hydro Power Stations Construction Project ex- tended by the Overseas Economic Cooperation Fund (OECF) of Japan, as given in Appendix to this Public Notice are notified for information,

P. C. JAIN, Chief Controller of Imports & Exports.

APPENDIX TO MINISTRY OF COMMERCE PUBLIC NOTICE NO. 33-ITC(PN)/83 DATED 25th AUGUST, 1983

Licensing conditions in respect of Imports of goods and services under the yen credit of yen 2.0 Billion for the implementation of the Tamil Nadu State Micro Hydro P/>wer Stations construction project extended by the overseas economic co- operation Fund (OECF) of Japan.

Section I—General conditions :

I. (i) The Yen Credit of y 2.0 billion extend- ed by the Overseas Economic Co-operation fund of Japan (OECF) for financing the import jcquircinents of the Tamil Nadu State Micro Hydro Power Stations Construction Project is untied in favour of Japan and developing count- ries. Accordingly the goods and Services lo be procured under this credit can be imported from Japan and all countries enumerated in the list at Annexure-I which will be eligible .souae count- ries under the credit.

1. (ii) Jnjport Licence(s) under the Credit can be issued only for such items and for such value as have been specifically cleared by the DGTD/CG Committee. The value of import licence(s) issued under this credit should not exceed '< - .200 million (CIF).

The rupee value of the import licence shall be determined with reference to the exchange rate notified by the Department of Revenue (Customs) and prevailing on the date of the issue of the im- port licence and indicated in the body ol" the im- port licence(s) as per para 2 of the Public Notice No. 78-lTC(PN)/74 dated the 6th June, 1974, issued by the CCI&E, which also enjoins, that the Customs Authorities and the authorised dealers in foreign exchange will make debits to the value o! the licence(s) at the exchange rate specified on the import liccnce(s). The licence will bear Jie su- perscription "Japanese Yen Credit No. ID-P.23". The first and second suffix lo the licence code will be "S/JC". This will also be repeated in the letter from the CCI&E for wording the import licence to Tamil Nadu Electricity Board (T.N.E.B.), a copy of which should be endorsed to the Ministry of Finance, Department of Economic Affairs (Japan Section).

I.fin) Import licencefs) can be issued only in

favour of TNEB on CTF basis.

J(iv) Depending on the convenience of TNEB more than one import licence may be issued under this credit, but the total value must not exceed "i 2,200 million (CIF) as specined at (i) above.

l(v) The extension of the validity of the import licence, may on application bv TNEB, be granted upto 31-12-1986. Request for further extension, if any, should be referred to the Department of Economic Affairs (Japan Section).

I(vi) Imports to be financed under the Credit are lestricted to the list of goods and services attached to the import licence, duly attested by the licensing authorities.

I (vii) No remittance of foreign exchange will be permitted against the import licence. Any pay- ment towards Indian Agent's commission should be made in Indian rupees to the agents in India. Such payments, however, will form part of the licence value and will, therefore be charged to the licence.

I(vui) Firm order must be placed on FOB basis on the Overseas supplier located in the countries mentioned in AnncxUrc-I and sent to the Depart- ment of Economic Affairs (Japan Section) within 4 months from the date oi issue of the import licence. Freight and insurance charges will be payable in India in Indian rupees. "Firm orders'' means, purchase orders placed by the Indian Lieencee on the overseas supply duly signed by the letter or purchase contract duly signed by both the Indian importer and the overseas supplier. Orders on Indian Agents of overseas supplier.-, and/ or ordci confii mation of Midi Indian Agents are not acceptable.

I(ix) This condition of the placement of cont- tacts within 4 months period will be treated as not having been complied with unless complete contract documents reach the Ministry of Finance. Department of Economic A Hairs (Japan Section) within four months from the date of issue of the import licence. II Hrni orders as explained m pura I(viii) above cannot be placed wilhin lour months tor valid reasons, the lieencee should submit the import licence to the concerned licensing autho- rities giving reasons why oidcrimj could not be completed within four months. Such requests for extension in the ordering period will be consider- ed on merit by the licensing authorities who may grant extension upto a further maximum period of 4 months. It, however, extension is sought be- yond 8 months from the date of issue of the import licence such pioposals wilt invariably be referred by the licensing authorities to the Department of Economic Affairs (Japan Section), Ministry of Finance, North Block, New Delhi who will con- sider such extension on the merits of each case and communicate their decision to the licensing autho- rities for communication to the lieencee. Only on production by the lieencee of a letter from the licensing authorities sanctioning such cUension will the authorised dealers and departmental authori- ties permit the facility of letter of authority for the establishment of letter of credit, acceptance of depo- sits of the rupees'equivalent, etc. in respect of supply contracts entered into under the import licence.

I'x) All payments must be completed within 4 months from the expiry of the import licence. In- dividual payments must be arranged upon ship- ment of goods. The contract should provide for payment on cash basis i.e. on presentation of shipping documents. No credit facility of any kind will be permitted to be availed of by the Indian importer from the Overseas supplier. The contiact should provide lot the period or dcli\cry oi goods as follows :

in*Jiitiis :\(U't the receipt oi l.puer of crrdd but In be completed lntrst " by the end of

]9

In fixing the terminal date tor shipment it should be noted that this date should not be bcyonc 31-12-1986.

Section 11—Special points to be kept in view

while negotiating a supply contract.

II (u The FOB value or the contract should be expressed in Yen (Fraction of Yen should be omitted) and should exclude Indian Agent's com- mission, it any, which should be paid in Indian rupees.

In no circumstances the contract value should be expressed in Indian rupees oi in any other cur- rency. The purchase order and the supplier's older confirmation should be in KnglMi only.

II (in The main guide'ino lor procurement ot goods and seivices the OECF Yen Credit (Pro- ject Aid) arc given in Annexure II. Hovvevei, nor- mally the procurement of goods and services should be made through Formal Open Interna- tional Tendering and the following points should be borne in mind :—

(a) Invitations to bid shall have to be ad- vertised in atlcast onv newspaper of general circulation in India.

(b) Bid bonds or bidding guarantees are a usual requirement but they should not set so high as to diseo'urage suitable bidders.

(c) Bid bonds or guajantees should be releas- ed to unsuccessful bidders as soon as possible after f he bids have been open- ed.

II (iii) In cases where Fouiud Open Internation- al Tendering is not considered appropriate the Fund will accept the following alternative proce- dures :—

(a) Where the importer has comincing rea sons or maintaining a reasonable stand- ardisation of his equipment.

(b) Where the number of qualified suppliers

is limited.

(c) Where the amount involved in the pro- curement is so small that foreign firms clearly would not be interested or that the advantage*, of formal open interna- tional tendering would be outweighed by the administrative burden involved.

(d) Where, in addition to the cases (a), (b) and (c) above, the Fund deems it inap- propriate to follow the fornnl open inter- nal ioiinl ii-ndi'iiiif piocviluics or the Fiin.J deem, <,uch puicediuj inapplicable, e.g., in case of emergency procurement.

In the above mentioned case the following pro- curement pmcedure may be applied in such a manner as to comply with the formal open inter- national tendering procedures in the fullest possi blc extent as appropriate.

(i) Formal Selective International Tendering.

(ii) Infounal International Competitive Pro-

curement.

(iii) Direct "Purchases from a single supplier.

(e) The Borrower shall obtain the prim- approval of the Fund, if the Boi rower wishes to adopt procurement procedures other than Formal Open International Tendering for goods and services to be financed out of the proceeds of the Loan, submitting to the Fund an appli- cation for approval of procurement method(s) signed by a duly authorized person together with its reasoning.

(f) Prior to inviting bids for the procurement of goods and services, the Bonowcr shall submit to the Fund for its approval copies of all notices and instructions to bidders, the bid form, general conditions of contract, specifications and drawings and all other documents relevant to the bidding.

TNEB should submit immediately, in triplicate, copies of all notices and instructions to bidders, the bid form, general conditions of contract, spe- cifications and drawings and ail other documents relevant to bidding to the Ministry of Finance. Department of Economic Affairs (Japan Section) who will submit these documents \o the OECF foi its approval as provided in para 1(3) of schedule •1 of the Loan Agreement.

Il(iv) The payment to the overseas supplier should be arranged through an irrevocable letter of credit to be opened by the Bank of India, Tokyo in their favour under the OECF Yen Credit (Pro- ject Aid) No. ID-P.23 foi 1982-83 the details of which are given in Section VI below :

II(v) Only one contract should be entered into against the import licence. In exceptional cases, more than one contract may be permitted to be entered into, for which prior approval of the Department of Economic Affairs (Japan Section), Minisiry of Finance, should be obtained soon after the date of issue of the import licence.

II(vi) Eligibility of Supplier.-- Supplier^ shall be nationals of the eligible source countries or juri- dical persons incorporated and registered in the clij/ilih' source c nunirleb and controlled by national-; of the eligible source countries.

II (vii) Declaration in Contiact.—The lollowing statements of eligibility by the supplier shall be added to each contract.

"I the undersigned, hereby certify that the goods

to be supplied arc produced in (name of eligible source country).

I, the undersigned, further certify that to the best of my information and belief, the portion imported from the non-elieible source countries is less than thirty per cent (MY'c ) in accordance with the following formula •

ImportedCIF Price+Import Duty

.Supplier's Price (where applicable Ex-factory Price)

and

"I, the undersigned, hereby certify that

(Name of company) ha-> been incorporated and registered in (Name of eligible source country), and is controlled by nationals of the eligible source countries¹.

II. (viii) Permissible impoit^ from non-eligible source countries.-—Financing of goods which con- tain materials originating from a non-eligible source country or countries may be made, provid- ed that the imported portion is less than thiity per cent (30c/r) of the price per unit of such pioducls in accordance with the following formula ,

Imported CTF Price ^ Import Duty lf),. Supplier's FOTj Price (in case of Indian Suppliers, Ex-factory Price shall be adopted)

Section III—Conditions to be incorporated in the

supply contracts.

IllC i) The following provisions should be spe-

cifically embodied in the supply contract :

(a) The contract is arranged in accordance with the Loan Agreement between the Government of India and the Overseas Economic Co-operation Fund of Japan (OECF) dated the 23rd February. 1983 concerning the Yen Credit No. ID-P.23 (Project Aid) for Tamil Nadu State Micro Hydra Power Stations Construc- tion Project, and will be subject to the approval of Government of India and the Overseas Economic Co-operation Fund.

(b) Payments to the supplier shall be made through an irrevocable letter of Credit 1o be issued by the Bank of India. Tokyo, under the Loan Agreement No. 1D-P. 23 dated the 23rd February, 1983 between the Gownmieiif of India, and (lit- Owr- • C'd-z LVoriomJc Co-operation Fund (OECF) of Japan.

(c) The overseas supplier) agree to furnish such information and documents may be required under the Yen Credit arrange- ments by the Government of India on the one hand and th-; OECF on the other.

(d) Certificates (triplicate) in the forms indi

cated in II (vii).

III (ii) In case the supplier is located in Japan, the supply contract should contain in clause that the Japanese supplier agiee¹. to make shipping arrangements in consultation with the Embassy of Jndia. Tokyo and that for this purpose he would keep the Embassy of India, Tokyo, informed of the deliveiy schedule of the goods involved and notify the Embassy of India atleast six weeVs in advance of the shipping required so that suitable arrangements should he made. In exceptional cases, where the Indian importers require it, this period of notice may be reduced. The Japanese supplier should also agree to send a cable advice to the importer after each shipment giving the necessary details and a copy thereof should be sent to the Embassy of India, Tokyo.

Section IV—Contract Appro\al by OECF.—IV (i) Within the stipulated period for placement of lire orders the licencee should forward 4 copies ot the contract duly signed by both T.N.E.B. and o\erseas suppliers supported by order continuation in writing by the overseas supplier or their photo copies complete in all respects, together with two photo copies of the relevant valid import licence, to Japan Section, Department of Economic Affairs Ministry of Finance. North Block, New Delhi.

IV (ii) The above p'oeedure will also apply to all contract amendments causing essential modifi- cations to the contents of contracts or in its price.

JV dii) The Ministry of Finance (DEA) Japan Section will arrange to send one copy of the cont- ract documents to the OECF for their approval for financing under Yen Credit No. ID-P.23 (Project Aid) for Tamil Nadu State. Micro Hydro Power Sta- tions Construction Project.

Section V.—Payment to the overseas suppliers—

Letter of Credit Procedure.

V (i) On receipt of the intimation of the con- tract approval from the OECF, by the Ministry of Finance, Department of Economic Affairs, Japan Section, T.N.E.B. and the CAA & A will be informed of. the same. Whereafter the TNEB should approach the Controller of Aid Account's & Audit, (hereinafter referred to as CAA & A) Depatment of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi with a roqnesl in the form attached a<; Annual." Ill far I' :\i? of ^ leUVj- of aUlhoriia^lon. The CAA & A will issue a letter of authorisation

21

as in the form attached as Annexure-IV address- ed to the Tokyo Branch of the Bank of India for opening an irrevocable Letter of Credit as in the form attached as Annexure-V (for physical Im- ports) or Annexure-V I (for services) in favour of the overseas supplier concerned. Copies of the Letter of Authorisation will be endorsed to the OECF, the Embassy of India, Tokyo, the im- porter's Bank in India, and Japan Section, De- partment of Economic Affairs, Ministry of Fin- ance.

V (ii) On receipt of the letter of authority, the Bank of India, Tokyo, will establish an irrevoca- ble letter of credit as per Annexure-V (applica- ble to physical imports) or VI (applicable to ser- vices) in favour of the overseas suppliers concern- ed and will also forward a copy of the same to the OECF, Embassy of India, Tokyo, the im- porter's bank in India and the CAA & A.

The above procedure of opening of letters of credit on the basis of the letters of authority from CAA & A would ipso facto apply to all such amendments to letter of authorisa'ion/letter of credit as may become necessary due to contract amendment or otherwise.

V (iii) The overseas, supplier shall, after effect- ing shipment of goods, present through his bankers the documents specified in the letter of credit to the Bank of India, Tokyo. If the documents are found to be in order, the Bank of India, Tokyo will release the amount specified in the documents to the overseas supplier through his bankers and will thereafter obtain reimbursement of the said amount from the OECF.

V (iv) Banking charges payable to the Bank of India, Tokyo for opening the letter of credit, for negotiations thereunder and charges, if any, of overseas supplier's bankers are to be borne by the TNEB overseas suppliers. Interest charges payable to the Bank of India, Tokyo for the period counting from the date if payment of the cost of imports by them to the overseas supplier to the date of reimbursement by the OECF shall be set- tled by the concerned importer's bank in India by remittance to the Bank of India, Tokyo through normal banking channel without affecting the Government of India's account.

Section VI—Responsibility for rupee deposit.

VI (i) The Bank of India, Tokyo will forward the negotiable shipping documents to the accredit- ed bankers of importer as indicated in the Appen- dix to the relevant Letter of Authority and the bankers will in turn ensure that the rupee depo- sits are invariably made at RBI, Nev Delhi or S.B.I., Tis Hazari, Delhi before releasing the shipp- ing document'?. T n t wt rliurp?^, on 111," rupce- f.1uival?nis of ihp Yen payments calculated @9 per cent per annum for the first 30 days and

@ 15 per cent per annum for the period in excess thereof reckoned from the date of payment by the Bank of India, Tokyo to the Overseas Sup- plier to the date of actual rupee deposit, have also to be deposited alongwith the principal payment, in terms of Public Notice No. 46-ITC(PN)|76, dated 16-6-76. It should be noted that interest is chargeable for both the days i.e. the day on which payment is made to the overseas supplier and also the day on which lupee deposit is muile in Government Account vide Public Notice No. 74-ITC(PN) 74. dated 31 -5-1974 as modified under Public Notice No. 1O3-1TC(PN)|76, dated 12-10-1976.

The exchange rate to be adopted for computing the rupee equivalent of the Yen payments made to the overseas suppliers will be the composite rate of exchange applicable t'o the date of pay- ment which will be worked out in accordance with the method prescribed in Public Notices No. 109- ITC(PN)|74, dated 3-8-1974 and No. 8-ITC (PN)(76, dated 17-1-1976 or as may be notified by Government from time to time through Pub- lic Notices, of the CC1 & E or through Exchange Control Circulars of the Reserve Bank of India. The Head of Account to which the above rupee deposits should be credited is "K-Deposits and Advances—843—Civil Deposits—Deposits for purchase etc. abroad—Purchase under credits] Loan Agreements" Loans from the Government of Japan—2.0 Billion Yen Credit No. ID-P.23 for Tamil Nadu State Micro Hydro Power Sta- tions Construction Project.

VI (ii) The amount referred to above should be deposited in cash to the credit ol the Government either in the Reserve Bank of India, New Delhi, or State Bank of India, Tis Hazari, Delhi as con- templated in Public Notices No. 184-ITC(PN) 68, dated 30-8-1968, No. 233-ITC(PN)|68, dated 24-10-1968, No. 132-ITC(PN)]71,. dated 5-10-1971, No. 74-ITC(PN)j74, dated 31-5-1974 and No. 103-ITC(PN) |76, dated 12-10-1976.

VI (iii) The concerned Bank in India shall also furnish such additional deposit in the same manner stipulated above as may be requested by the Government of India, Ministry of Finance Department of Economic Affairs, on account of service charges within seven days after such a demand is made by Ministry of. Finance (Depart- ment of Economic Affairs). While filling in the various columns, in the challan it should be en- sured by the importers Itheir bankers that the in- formation prescribed in para 2 of Public Notice No. 132--ITC(PN)!71, dated 5-10-1971 is in- variablv indicated in the column "full particulars of remittances and authority (if any)" of the rhallan. The following particulars should invari- ably be furnished in the treasury challans :—

(a) Ministry of Finance letter of authority

No. and date.

(b) Amount of Yen currency in respect of which deposits are to made together with rate of conversion adopted.

(c) Date of payment to the overseas sup-

plier.

Thereafter the Treasury Challans evidencing the rupee deposit should be sent by registered post to the CAA & A indicating reference to the letter of authorisation issued by him and also enclosing copies of the invoice and shipping documents.

NOTE :—Importer's Bank in India should en- s,ure that the rupee deposits are invariably made within 10 days of the receipt of Ihe advice of payments and negotiable _ shipping documents from the Bank of India, Tokyo and that the CAA & A Ministry of Finance (DEA), New Delhi is kept informed of the fact immediately thereafter.

VI (iv) The concerned bank in India should also endorse the amount of rupee deposits on the exchange control copy of the licence and send the requisite "S" Form to the Reserve Bank of India, Bombay.

Section VIIII—Miscellaneous provisions

VIII (i) Reports on the utilisation of the import licence.—The importer should send a monthly re- port, after the letter of credit has been opened re- garding shipments and payments made there against and about the balance left¹, to the Controller of Aid Accounts & Audit, Department of Economic Affairs, Ministry of Finance, UCO Bank Building, Parliament Street, New Delhi.

VIII (ii) Notifying Suppliers c.f Spcci.il Condi- tions.—The licencee should apprise the supplier of any special provisions in the import licence which may affect the suppliers in carrying out the transaction.

V11I (iii) Disputes.—It should be understood that the Government of India will not undertake any responsibility for disputes, .if any, that may arise between the licencee and the suppliers. The conditions to be fulfilled by the supplier before payment bv the Bank of India, Tokyo must be clearly spelt out by the importer in Annexure-III under "Terms of Payment". Provisions dealing with settlement of disputes should be included in the conditions of contract.

VIII (iv) Future Instructions. —The licei,cee shall promptly comply with any directions, instruc- tions or orders issued by the Government of India from time to time regarding any and all matters aris- ing from or pertaining to the import licence and for meeting all obligations under the Yen Credit Agreement (Prnjrrt Ai.l) No. ID-P.23 with the Overseas Economic Cooperation Fund (OECF) of Japan.

VIII (v) Ercach or violation —A.ny breach or "Mu- tation ot the conditions set forth in the above clauses will result in appropriate action under the Imports and Exports (Control) Act.

VIII (M) LTST OF ANNFXURFS

Aune\iirr—T I ist of clip!hie source countries

Annexure— TI Broad Guidelines fur Procurement

Annexurc--111 Request foi issue of Letter of Authority

Annexuic—IV I urm ol Lcltci ol Aulhoriij

Annexure—V Form ol" Letter of Ciedit (Applicahle to

Physical Imports),

Anncxure~VI Form of I ettci of Credit (Applicable to

Service)

Annexurp—,VII Keirulnirsemenl PiQcediue

23

"Iorro. Afars and Istutj logo Uganda Un. Rep. of Tanzania LTppfcr Voltu Zaire Rrpubhc Znmbiu

HI, AMFRICA, North and Cont

Bahamas Harbndos Belize Bcrmudu Costa Rica Quba

ANNF.XURF -I

LTST OF ELIOIBLK SOURCE COUNTRIES

A Developlnff Countrloi; and Territories

(aI) Ncm-OPbC Developing Countries

I. AFRICA, North or Sahara

Fgypt Morocco Tunisia

IT, AFRICA, Sou ill ofSahaia

Angola Botswana Burundi Cameroon Cape Verde Islands Central African Rfpt, Chad Comoro Islands Congo, People s Republic of Daliomav Fquatonal Guinea (1) Ethiopia Gttmbiu Ghana Guinea Ivoi> Coast Kenva Lesotho Lcberia

Malagasy Republic Malawi Mali Mauritania, Mauniius Moozamhiquc Niger Portuguese Guinea Reunion Rhodesui Rwanda St Helena and Dep. (2) Sa> Tomo and Principe Senegal Seychelles Sierra Leone Somalia Sudan Swaziland

Domimciii) Republic F.I Salv.ulor Guadeloupe Guatem.ila Haiti Honduras Jamaica Martinique Mexico Netherlands Anilles Nicaragua Panama St. Pierre & Miquelon Trinidad and Tobago

(1) Formerly the territory of Spanish Guinea, including the island of Fernando Po.

(2) Including the following islands : Ascen- sion, Tristan da Inacessibles, Night- ingale, Gough.

(3) Main islands, Aruba, Bonaire, Curacao, Saha, St. Eustacit St. Martin (Southern part).

AMF.RTCA, North & Central

(Continued)

West Indies (Br.) n,i o.

(a) Associated States (1)

(b) Dependencies (2)

IV. AMERICA, South

Argentina Bolivia Brazil Chile Colombia Falkland Islands French Guiana Guyana Praraguay Peru Surinam Uruguay

V. ASIA, Middle East

Bahrain Israel Jordan Lebanon Oman Syrian Arab Republic

United Arab Emirates (3)

YeiiKU Aiab Republic

Yemen, People's D,K. (4)

VI. ASTA, Smith Afghanistan Bangladesh Hhutan Burma India Maldivis Nepal Pakistan Sri Lanka

VTT. ASIA, Far Tast

Brunei Hong Kong Khmer Republic Korea, Republic of Lnos Macao Miilaysiii Philippines Singapore Taiwan Thailand Timor Viel-Nam, Reji. of Viel-Nnm Dem. Rep.

VITT. OCEANIA

Coek Islands Fiji Gilbert & Ellice Is. French Polynesia (5) Nauru New Calendaria New Hebrices (Br. and Br.j Niue Pacific Isfands (US) (6) Papua New Guinea Solomon Islands (llr ) Tonga Wallis and Futuna Western Samoa

(1) Main islands: Antigue, Dominica, Grenada, St. Kitts (St. Caristophe), Nevis-Anguilla, St. Lucia and St. Vin- cent.

(2) Main islands: Monterrat, Cayman. Turks and Caicos, and British Virgin Islands.

(3) Ajman, Dubai, Fujairah, Ras al Khaimah, Sharjah and llmm al Quaiwain.

(4) Including Aden and various* sultanates

and emirates.

(5) Comprising the Society Islands (includ- ing Tahiti), The Austral Islands, the Tuamotu-Gambier Group and the Marquesas Islands.

(6) Trust Territory of the Pacific Islands; Caroline Islands, Marshall Islands, and Marine Islands (except Guam).

IX. EUROPE

Cyprus Gibraltar Greece Malca Spain Turkey Yugoslavia

(a2) Member or Association Countries of OPFC

Algeria Bolivia Libyan Arab Republic Gabon Nigeria Ecuador Venezuela hail Iraq Kuwait Qatar Saudi Arabia Abu Dhabi Indonesia

ANNEXURE-Il

Main Guidelines for Procurement of goods

And Services Under The Project Loan As Formu- lated By O.E.C.F.

I. Advertising

For all contracts subject to Formal Open Inter- national Tendering, invitations to bid shall be advertised in atleast one newspaper of general circulation in India.

II. Bidding Documents and Contracts

II. 1. Bid Bonds or Guarantees.—Bid Bonds or bidding guarantees are a usual requirement but they should not be set so high as to discourage suitable bidders. Bid bonds or guarantees should be released to unsuccessful bidders as soon as possible after the bids have been opened.

II.2. Conditions of Contract.—The conditions of contract should clearly define the rights and obliga- tions of the importer and the contractor or supplier and the powers and authority of the engineer, if one is employed by the importer in the administra- tion of the contract and any variations thereunder. In addition to the customary general conditions of contract, some of which are referred to ;n these Guidelines, special conditions appropriate to the nature and location of the project should be included.

II.3 Type and Size of Contract.—Contracts can be let on the basis of unit prices for work per- formed or items supplied or of a lump sum price, or a combination of both for different portions of the contract, according to the nature of the goods or services to be provided and the bidding documents should clearly state the type of contract selected.

Contracts based principally on the reimburse- ment of actual costs are not acceptable by the Fund except in exceptional circumstances.

Single contracts for engineering, equipment and construction to be provided by the same party ("Turnkey Contracts") are acceptable if they offer technical and economic advantages for ths borrower country.

II-4. Eligible suppliers.—Exporters or suppliers whose goods and services are to be financed out of the proceeds of the Loan (hereinafter referred to as "the eligible supplier") shall be nationals of the eligible source countries satisfying the following conditions.

(1) a majority of subscribed shares shall be held by nationals of the eligible sourer countries,

(2) a majority of full-time directors shall be nationals of the eligible source countries and

(3) such juridical 'persons' shall be regis-

tered in the eligible source countries.

Ill-I. Contract Price

fa) The contract price should be stated in Japanese Yen provided, however, that the portion of the contract price which the contractor will spend in the borrower's country should bo stated in the borrower's currency.

(b) Price Adjustment Clauses.—Bidding documents should contain a clear state- ment whether firm prices are required or escalation of the bid prices is accept- able.

A provision should be made for adjustment in the contract prices in the event changes occur in the prices of the major cost constituents of the contract, such as labour and important materials.

The specific formula for price adjustments should be ciearlv defined in the bidding documents.

A ceiling on price adjustment should be included in contracts for the supply of goods, but it is not usual to include such a ceiling in contracts for civil works.

No price adjustments should nor- mally be provided for goods to be delivered within one year.

The Guidelines do not attempt to identify the various methods bv which contract prices mav be adjusted.

637 GI/83—4,

25

(c) Insurance.—The bidding documents should state precisely the types of insu- rance to be provided by the successful bidder.

III-2. The contract duly signed by both parties or purchase order by the Indian importer placed on the overseas supplier supported by order confir- mation in writing by the overseas supplier, or then- photo copies are also acceptable to the Fund.

III-3. The following statement of eligibility by

the supplier shall be added to each contract.

"I (We) hereby state that my (our) company is an eligible supplier, as ——— -per cent ( per cent) of the shares are held by nationals of-—— • (eligible source country), and

per cent ( ) of the directors arc nationals ————— (eligible source country) and my (our) company has been regis- tered hi (eligible source country)".

IV-1. Standards.—If nationals standard to which equipment or materials must comply are cited, the specifications should state that commo- dities meeting Japan Industrial Standard or other internationally accepted standards, which ensure an equal or higher quality than the standards men- tioned, will also be accepted.

IV-2. Use of Brand Names.— Specification should be based on performance capability and should only prescribe brand names, catalogue numbers, or products of specific manufacturer if specific spare parts are required or it has been determined that a degree of standardization is necessary to maintain certain essential features. In the latter case the specifications should permit offers of alternative commodities which have similar characterstics and provide performance and quality at least equal to those specified.

IV-3. Guarantees, Performance Bonds and Retention Money.—Bidding documents for civil works should require some form of surety to guarantee that the work wifl be continued until it is completed. This surety can be provided either by a bank~guarantee oi¹ by a performance bond, the amount of which will vary with the type and magnitude of the work, but should be sufficient to protect the. borrower in case of default by thr. contractor' Its life should extend sufficiently beyond completion of the contract to cover a reasonable warranty period. The amount of the guarantee or bond required should be defined in the bidding documents.

In contracts for the supply of goods it is usually preferable to have a percentage of the total pay- ment held as retention money to guarantee perfor- mance than to have a bank guarantee or bond.

The percentage of the total payment to be held as retention money and the conditions for its ultimate payment should be stipulated in the bidding docu- ments. If, however, a bank guarantee or bond is preferred it should be for a nominal amount.

V. Liquidated Damage.—Liquidated damage clauses should be included in bidding documents when delays in completion or delivery will result in extra cost, loss of revenues or less of other benefits to the borrower. Provision may also be made for a bonus to be paid to contractors for completion of civil works contracts at or ahead of tunes specified in the contract when such earlier completion would be cf benefit to the borrower.

VI. Force Majeure.—The conditions of the Contract included in the bidding documents should contain clauses, when appropriate, stipulating that a failure on the part of the parties to perform their obligations under the Contract shall not be considered a default under the Contract if such failure is the result of an event of force majeure (to be defined in the conditions of the Contract).

VII. Settelment of Disputes.—Provision dealing with the settlement of disputes should be included in the conditions of the Contract. It is desirable that the provisions should be based on "Rules of Conci- liation and Arbitration" which have been prepared by the international Chamber of Commerce or on such other arrangements as may be mutually acceptable tcr the Indian Importer and the over- seas supplier.

Vin.—Language Interpretation.—Bidding do- cuments should be prepared in English. If other language should be used in the bidding documents, English should be added to such documents and it is required to specify which is governing.

IX. Bid Opening, Evaluation and Award of Con- tract

IX. 1. Time Interval between Invitation and Sub- mission of Bids—The time allowed for preparation of bids will depend to a large extent upon the ma

IX. 2. Bid Opening Procedures—The date, hour and place for the latest receipt of bids and for the bid opening should be announced in the invi- tations to bid and all bids should be opened publi- city at the stipulated time. Bids received after this time should be returned unopened. The name of the bidder and the total amount of each bid and of anv alternative bids, if they have be?n reoupst^d or permitted, should be read aloud and recorded.

IX. 3. Clarifications or Alternation of Bids—No bidder should be permitted to alter his bid after the bids have been opened. Only clarifications not changing the substance of the bid may be accepted. The importer may ask any bidder for a clarification of his bid but should not ask any bidder to change the substance or the price of his bid.

TX. 4. Procedures to be confidential—Except as may be required by law, no information relating to the examination, clarification and evaluation of bids and recommendations concerning award should be communicated after the public opening of bids to any persons not officially concerned with these procedures until the award of a contract to the successful bidder is announced.

IX. 5. Examination of Bids—Following the open- ing, it should be ascertained whether material crrores in computation have been made in the bids, whether the bids are fully responsive to the bidd- ing documents, whether the required sureties have been provided, whether documents have been pro- perly signed and whether the bids are otherwise generally in order. If a bid does not substantially conform to the specifications, or contains in admis- sible reservations or is not otherwise substantially responsive to the bidding document, it should be rejected. A technical analysis should then be made to evaluate each responsive bid and to enable bids to be compared.

DC. 6. Post-qualification of Bidders—In the ab- sence of prequalifications, the borrower should determine whether the bidder whose bid has been evaluated the lowest has the capability and finan- cial resources effectively to carry out the contract concerned. If the bidder does not meet that test, his bid should be rejected.

IX. 7. Evaluation and Comparison of Bids—Bid evaluation must be consistent with the terms and conditions set forth in the bidding documents. In addition to the bid price, adjusted to correct arithmetical errors other factors such as the time of completion of construction or the efficiency and compatibility of the equipment, the availabi- lity of service and spare parts, and the reliability of construction methods proposed should be taken into consideration. To the extent practicable these factors should be expressed in monetary terms according to criteria specified in the bidding do- cuments. The amount of escalation for price adjustments, if any, included in the bids should not be taken into consideration.

The currency of currencies in which the price offered in each bid would be paid by the borrower if that bid were accepted should be valued in terms of a single currency selected by the borrower for comparison of all bids and stated in the bidding documents. The rates of exchange to be used in such valuation should be the selling rates published

by an official source, and applicable to similar transactions on the day bids are opened unless there should be a change in the value of currencies before the award is made. In such cases the ex- change rates at the time of the decision to notify the award to the successful bidder should be used.

IX. 8. Rejection of Bids—Bidding documents usually provide that borrowers may reject all bids. However, all bids should not be rejected and new bids invited on the same specifications solely for the purpose of obtaining lower prices in the new bids, except in cases where the lowest evaluated bid exceeds the costs estimates by a substantial amount. Rejection of all bids may also be justi- fied when (a) bids arc not responsive to the intent of the bidding documents, or (b), there is a lack of competition. If all bids are rejected, the borro- wer should review the cause or causes justifying the rejection and either consider revision of the specifications or modifications in the project (or amounts of work on items called for in the original invitation to bids), or both. In special circums- tances, after consultation with the Fund, the borro- wer may negotiate with one or two of the lowest bidders to try to obtain a satisfactory contract.

IX. 9. Award of Contract—The Award of a con- tract should be made to the bidder whose bid has been' determined to be the lowest evaluated bid and who meets the appropriate standards of capa- bility and financial resources. Such bidder should not be required, as a condition of award, to under- take responsibilities on commodities not stipula- ted in the specifications or to modify his bid.

ANNEXURE HI

Request for issue of the Letter of Authority

No. Date

To

The Controller of Aid Accounts and Audit,

Ministry of Finance,

Department of Economic Affairs, UCO Bank Building, 1st Floor, Parliament Street, New Delhi-110001.

Subject.—Import of from under the Yen Credit OECF Loan Agreement No. - —— .

Sir,

In connection with the import of

from — — under the above mentioned Yen Credit OECF Loan Agreement No. we furnish the following particulars to enable you 'o issue the Letter of Authority to the (name of the Bank which should be the same as

27

given in (p) below) for opening a letter of credit in favour of the overseas suppliers concerned :—

(a) Name and Address of the Indian impor-

ter.

(b) Number, date and value of the import licence and date up-to which it is valid.

(c) Method of procurement—-whether it is based on direct purchase or Formal Open International Tendering in which case it should be indicated whether the contract has been awarded on the basis of technically suitable offer with reasons, if any.

(d) Brief description of the goods.

(e) Origin of the goods.

(f) Percentage of the import components from non-cligiblc source countries, if any.

(g) Gross FOB value of contract (in Yen).

(h) Amount of Indian agents commission (in Yen), if any, payable in Indian rupees.

(i) Net FOB value in Yen payable to Over- seas Suppliers for which the Letter of Authority is required.

(j) Number and date of the contract.

(k) Name and Address of the Overseas Sup-

plier.

(1) Payment terms and probable dates on which payments under the contract will fall due.

(m) Expected date of completion of deli-

veries.

(n) Documents to be presented at the time of payment to Bank of India, Tokyo (indi- cating No. of Sets of each and their disposal).

(n) Shipment instructions (indicate if trans- shipment/part-shipment permitted or not permitted).

(p) Name and Address of the importer's bank

in India.

(q) Whether a contracts) under the same licence has been placed and notified to the Japanese authorities, and if so, the Number, date and value of each such contract and the reference of the Minis- try of Finance under which it has been notified to the OECF.

fr) Whether the banking charges payable to Bank of India, Tokyo for operation and maintenance of Letter of Credit are to be borne by the Importer/Supplier.

ANNEXURE IV

(Letter of Authority Form)

No. F.

Government of India

MINISTRY OF FINANCE

(Department of Economic Affairs)

New Delhi, the

To

Tlie Bank of India,

Tokyo Branch, Tokyo (Japan)

Subject-—Import under Yen credit (Project Aid) —Loan Agreement No. Issue of Letter of Authority for opening Letter of Credit.

Dsar Sirs,

la accordance with the terms and conditions of the agreement dated 25-3-1980 entered into with jour Bank you are hereby authorised to open ir- revocable Letter of Credit for an amount not ex- ceeding Yen favouring as per attached M/s details.

A copy each of the letter of credit opened by your Bank may be endorsed to the importers' Hank, to the OECF, Embassy of India, Tokyo and to us.

Payments to the suppliers in terms of the letter of credit will be made initially out of your own funds. After payments, you must claim immedia- tely reimbursements of the amounts paid by fur- nishing necessary documents to the OECF.

Interest charges payable to you, for the time lag between the dates of payment by you to the supplier and the date of its reimbursement by the OECF, shall be settled by you with the concerned importers' Bank in India through normal banking channels without affecting the Government of India's account. The other banking charges includ- ing those on account of opening, maintenance and for the operation of the Letter of Credit as also those connected with handling negotiating documents and charges of the overseas supplies bankers, if anv, are to be borne by the importer/ overseas suppliers. As such no reimbursement of such charges is to be claimed from the OECF.

As and when any payment is made bv you and reimbursement is made to you, an advice in the prescribed form should be sent to this Ministry.

This Letter of Authority is intended for opening of Letter of Credit favouring the overseas suppliers. Subsequent amendments to LIC or further fresh L/C ag&inst this authorisation may not be acted upon in the absence of a specific authority from this Ministry.

Tlu's Letter of Authority will remain valid

upto

Yours faithfully,

(Accounts Officer)

Copy forwarded to :—

1. Importer with reference to their

Letter No dated

2. Importers' Banker They are requested to arrange to deposit the mpee equiva- lent of the Yen payment tg the overseas supplies on receipt of documents from the Bank of India, Tokyo Branch. The rupee equivalent of amounts disbursed to the suppliers will have to be calcula- ted by applying the composite rate of conversion as prevailing on the date of payment to overseas suppliers in accordance with the Public Notice No. 8-rrC(PN)/76 dated 17-1-1976 or such other Public notice as may be issued from time to time. Interest ® 9% per annum for the first thirty days and at the rate of 15% per annum for period in excess thereof reckoned, for the period between the date of payment to the supplier/date of reim- bursements to Bank of India and the date on which the rupee equivalents are deposited into the Government Account, is also required to be deposited into the Government of India Account iu terms of Public Notice No. 46-JTC(PN)/76 dated 16-6-1976. The interest is payable for both the days i.e. the day on which payment is made to the overseas supplier and also the date on which rupee deposit is made into Government Account (Any change in this rate will be intimated if and when made). Tt should be ensured that these deposits are made before the original set of im- port documents are handed over to the importer for Customs clearance.

These amounts should be deposited either with the RBI, New Delhi or the SBI, Tis Hazari, Delhi. In this connection their attention is also invited to the provisions of the Public Notices No. 184- ITC(PN)/68, dated 30-8-68, 233-ITC(PN)/68 dated 24-10-68, 132-ITC(PN)/71 dated 5-10-71, No. 74-ITCfPN)/74 dated 31-5-74 and No. 103- ITC(PN)/76 dated 12-10-76. The head of Ac- count to be credited is "K-Deposits and Advances- 843-Civil Deposits-Deposits for purchases etc. ab- road-Purchases under CreditfLoan Agreements"—- Loans from the Government of Japan-2.0 billion Yen credit No. ID-P. 23 for Tamil Nadu State Micro Hydro Power Stations Construction Project.

One copy of the challan in original, in cases where the rupee equivalents are credited in cash at the RBI, New Delhi, or the SBI, Tis Hazari, Delhi as prescribed in Public Notice No. 132-ITC

(PN)/71 dated 5-10-1971, should be sent by them to the address given below alongwith a forwarding lettei- giving full details of the advice notes recei- ved from the Bank of India, Tokyo Branch.

The Controller of Aid Accounts and Audit, Ministry of Finance (Department of Economic Affairs) 1st Floor, UCO Bank Building, Parlia- ment Street, Mew Delhi-1.

t>9

cvidencing ^nipnienl of (brief description of goods to be shipped (if any)

to

/t-'forriiig to Contract No from Partial shipments are Permitted Transhipment is : . .. .permitted. Bills of lading must be dated not later than Drafts must bo presented for negotiation not later than

"Drawn under

In eases where the rupee equivalents are remit- ted by means of demand drafts as laid down in the Public Notice dated 24-10-1968 mentioned above, intimations thereof should be sent to the address "iven abo\e. In all cases full particulars of the rupee equivalents deposited should be fur- nished to this Department.

Interest charges payable' to the Bank of India, Tokyo for the time lag between the dates of pay- ment to Ihe supplier and the date of its reimburse- ment to tlu Bank of India, Tokyo by the OECF shall be settled directly by you with the Bank of India. Tokyo through normal banking channels without affecting Government of India's account.

3. The Director, Loan Department II, Overseas Economic Cooperation Fund, Takebashi Godo Building, 4-1, Ohtemachi 1-Chome, Chivoda-Ku, Tokyo 100, Japan.

4. Embassy of India, Tokyo.

5. The Under Secretary, Japan Section, Minis-

try of Fi ia K ;, D-pirtm -nt of Economic Affairs

New Delhi.

ANNtXURE V

Form OECF-LC 1

Irrevocable Letter of Credit

(Applicable for goods)

Dale :

To

• • . . • • . . .. This Letter of Credit has. been issued pursuant to Loan Agree

merit No

dated • •

(Name and address c f between (Borrower) and THE the Supplier). OVERSEAS ECONOMIC CO-

OPERATION FUND.

Dear, Sirs,

We advi^ you that we have opened our irrevocable Credit

(say Yen

No in y>nir favom for account of for a sum or sums not exceeding an aggregate amount of. .Y ) available b\ jour drafts .11 slight Tor full nivva: vilue dniwi on us, to be accompanied by the followin;_: documents: —

Signed commercial invoico in

Full set of clean on boutd ocean bills of lading made ou( to order and blank endorsed and marked "Freight" and "Notify Other document¹-..

All dta/ls and doc imciUs under this ciedit must be marked irrevocable credit >o

, dutod

and

Import Reference No. (s) (it any) "

This credit is not Uansferablc.

Wo hereby undcrtuko that all dialts drawn under and in compliance with the terms of the credit shall be duly honoured on due presentation and delivery of documents to the drawee

Unless otherwise expressly stated, this credit is subject to "Uniform Customs and Practice for Documentary Credits (1971 Revision), International Chamber of Commerce Publi- L-j.ti >n We. 290"

Special Instruction to the negotiating bank:

1, After obtaining the reimbursement for our payments fi iti THE OVERSEAS ECONOMIC COOPERATION FUND in accordance with thd'provisions of tlieLctter of Commitment issued thoteby under the above-mentioned Loon Agreement, we undertake to remit the amout of the drafts in accordance with instructions issued by the negotiating bank.

2. The negotiating bank must forward the drafts and on

complete set of documents to us together with the cerli- licate stating thit the remaining documents have been airmailed direct ti, . •

J. All banking charges under this Credit art. for the account

of the importer/supplier.

Your faithfully,

(commcicial bank)

By :

(Authorized Signature)

PAYMENT TERMS

This payment terms constitutes an integral part of our

Letter of Credit No

I, Initial Payment

Amount y

• •

being • • .. °; i>f the total ontract price.

Required documents; Latest presentation date:

II. Intermediate payment (.if an>)

\mi)iint Y

being ...-• °'a of the total contract price. *

Rd'iuued documents:

Latest prese.iUiiOn dato :

HI. Payment again-*! Shipping Documents

Amount x

briny, "„ of tho total contract prico

Note : This attach⁰-! sheet is not required in case of

1" '.'1 p\vm;.u agiinst Shipping Documents.

ANNEXURE-VI

Form OEC F-LC II

Irrevocable Letter of Credit

(Applicable for Services)

Date :

To :

— • — • This? letter cf credit has been issued pursuant to Loan Agreo-

-—•——.————. . — meat No - - dated

(Name and address of the between (Borrower) Supplier). and THE OVERSEAS ECO-

NOMIC COOPERATION FUND.

Dear Sirs,

We advise yau that we have opened our irrevocable credit No in your favour for account of for a sum or sums not exceoding an aggregate amount of Y

(Say Yen

) available by bone -

ficiary's drafts at sight for full Statement value drawn On us.

To be accompanied by the required ducuments, in accor- dance with the Payment Schedule attached hereto, concerning (Contract No ) with regard to Project), Drafts must be presonted for negotiation not later than

All drafts and documents must be marked "Drawn under

irrevocable credit No dated

This credit is nat transferable.

We hereby undertake that all drafts drawn undei and in complianco with tho terms of the credit shall be duly honoured on due presentation and delivery of documents to the drawee-

Unless otherwise expressly stated, this credit is subject to

"Uniform Customs and Practice for' Documentary Credit (1974 Revision), International Chamber of Commerce Publi cation No. 290". Special Instructions to the negotiating bank:

1. After receipt of the original Statement of Performance issued by (Borrower or its designated authority) in ac- cordance with tho form attached here to, payments under this credit must be made in accordance with the payment Schedule stipulated in the sheet attached hereto. In case of the initial payments, the beneficiary's State rnent is required instead of the above-mentioned State mont of Performance.

2. After obtaining tho reimbursement for our payment from THR OVISRSL'AS ECONOMIC COOPERA- TION FUND in accordance with the provisions of the Letter of Commitment issued thereby under tho above mentioned Loan Agreement, we undertake to remit the amount of the drafts in accordance with the instructions issued hy the negotiating bark.

3. A copy of the document as mentioned in item 1 above and the drafts shall be sent to us immediately after the receipts thereof.

4. All banking charges under this credit arc for the account

of tho importer/supplier,

Yours faithfully,

(a commercial bank) J|y_:

(Authorized Signatuie PAYMENT SCHEDULE

This paymont schedule o.istitutos an inlogful part of our

Lettor of Credit No

I. Initial Pavmont

Amount : y

being "'„ of the total con ttact price

Required documents ; benctiuiary's Statement Latest presentation date:

II. Progress Paymont

Aggregate amount y —

being "/, oF tho total con" tract price to be paid as follows:

Amount Latest presentation

due date

1st instalment : y— •

2nd instalment : y —• — —

Required documents : a copy of Statement of Performance

issued by (Dorrowor or its designated authority), a form of which is attached hereto.

STATEMENT OF PERFORMANCE

Date :

To : Ref. No.

(Name and address of the Supplier).

Ro : Letter of Credit No dated

in favour of

issued by fory concerning Project undor Loan Agree- ment No

I, the undersigned, representing (Borrower), hereby issue a , Statement of Performance to entitle to receive the sum of y (Yon only) from THE OVERSEAS ECO- NOMIC COOPERATION FUND in accordance with the Payment Terms stipulated in the Conttact No , and dated

.botwoen

(Borrower)

By :

(Authorised Signature)

Special Instructions :

Tho details of tha actual p-rform iiuo shall ho stated in thc

sheet attached hereto,

ANNEXURE VII

Reimbursement Procedure

Procedure for disbursement of the proceeds of the Loan for the purchase of goods and services from Indian Suppliers shall be in accordance with

REIMBURSEMENT Procedure attached hereto, with tEe following supplemental stipulation :

The exchange rate of Indian Rupees per Japanese Yen shall be as ruling on the date of bid opening as specified in Section 4.07 of the Guide- lines. Along with the Request for Reimbursement, the Borrower shall also furnish a certificate from a recognised bank certif}iiig the Yen--Rupee exchange rate on the dav of bid op?ning.

THE OVERSEAS ECONOMIC COOPERA-

TION FUND

REIMBURSEMENT PROCEDURE

1. This procedure is to be followed in cases where expenditures, eligible for the Fund's finan- cing, have already been incurred. Such expenditures may represent:

(i) payments to suppliers of specified goods:

or

(ii) payments for services rendered by con- sultants or for services such as trans- portation, insurance etc., or

(iii) payments under civil works (engineer- ing, construction, and installation) contracts.

These payments may been made under a letter of credit or otherwise. Also, depending upon the terms of relevant contracts, such payments may represent the final settlement payments, or down payments or part (progress) payments against manufacture of goods, periodical or partial rendering of services or periodical progress of work under civil works contracts.

2. (1) Reimbursements for expenditures described above may be claimed by sending the Request for Reimbursement in the Form OECF- RMP attached hereto.

In cases where the Fund has agreed to provide, out of the Loan, foreign exchange against expendi- ture in local currency (i.e. currency of the country of the Borrower), the Request shall be made in terms of Japanese Yen and the amount claimed shall be the agreed portion of local currency expenditures actually incurred. The exchange rate of such local currency per Japanese Yen nhall be agreed upon separately between the Fund and the Borrower.

Care should be taken to ensure that the Request reashes the Fund at least ten (10) days before the date on which reimbursement is made.

(2) The Request for Reimubursement under this Procedure including the Summary Sheet(s) attached thereto shall be presented in two copies to the Fund and both copies shall be signed bv the Borrower or its designated authority. The

31

following documents shall be furnished (in one copy only) in support of the Request. It is not necessary to furnish orginal documents ; a photo- state copy will suffice.

(a) For payments to suppliers against delivery shipment of goods.—

(i) supplier's invoice specifying the goods, with their quantities and prices, which have been or are being supplied [shipped;

(ii) bill of lading or similar document evidencing shipment | delivery of the goods listed on the invoice;

(iii) bill of exchange or similar document evidencing the date and amount of pay- ment made to the supplier; a simple receipt from the supplier showing the date and the amount of payment would also suffice.

(b) For payments to suppliers made prior to

delivery/shipment of goods.—

(i) the contract or purchase order under

which payment has been made ;

(ii) bill of exchange or similar document evidencing the date and amount of pay- ment made to the supplier ; a simple receipt from the supplier showing the date and amount of payment would also suffice.

(c) For payments for consultants' services.—

(i) the contract with consultants detailing the nature and duration of services, to be rendered and terms of payment;

(ii) the claim put in by the consultants indicating, in sufficient details, the ser- vices rendered, period covered, and amount payable to them ;

(iii) cancelled bank check, demand draft or similar document evidencing the date and amount of payment made to the consultants; a simple receipt from the consultants showing the date and amount of pament would also suffice.

(d) For payments for other services rendered.—

(i) the bill, claim or invoice specifying the nature of services rendered and amounts charged therefor.

(ii) cancelled bank check, demand draft or similar document evidencing the date and amount of payment made; a simple receipt showing the date and amount of payment would also suffice.

If such services relate to importation of goods (e.g. freight, insurance payments) adequate

references shall be given to enable the Fund to relate each of these items to the specific goods the cost of which has been or is to be financed by the Fund.

(e) For payments under civil works contracts. —

(i) the contract detailing the construction! engineering work to be performed and terms of payment therefor;

(ii) the claim, bill or invoice of the contractor showing, in sufficient detail, the work performed by the contractor and amount claimed therefor;

(iii) a certificate to the effect that the work performed by the contractor is satis- factory and in accordance with the terms of the relevant contract, such certificate shall be signed by the chief engineering officer of the Borrower assigned to the Project

(iv) cancelled bank check for similar docu- ment evidencing the date and amount of payment made to the contractor; a simple receipt from the contractor show- ing the date and amount of payment would also suffice.

(3) In all the above cases, if payment has been made through a commercial bank under a letter of credit, a report from such bank in the Form OECF-RMP—1 attached hereto, can be furnished in lieu of bill of exchange, crossed check etc.

3. When the Fund, after examination, finds th? Request for Reimbursement in order and in con- formity with the provisions of the Loan Agree- ment and the terms of the Contract concerned, the Fund shall reimburse the requested amount in Japanese Yen by paying it into a non-reisdent free yen account to be opened by the Borrower with an authorized foreign exchange bank in Tokyo. in accordance with the relevant laws and regula- tions in Japan, on the date as specified in the Request. Such reimbursement shall constitute a disbursement of the Loan.

4. It may be noted that in all the cases described in paragraphs 2(2) above, the Fund's disburse- ments are to be made against evidence of specific expenditures incurred. Tt is, however, possible that the Fund may have agreed to disburse a specified portion of the lean amounl on the basis of physical progress of work. Evidence of actual expenditures in specific currencies being not available, in such cases, the Fund will accept the Request for Reimbursement expressed in Japanese Yen. Each Request, unless otherwise required

CERTIFICATE (PART I)

Dale :

It i\ certified th'it A", of , the proifre^ oi'the work

(tlat.-)

relating ( i

wns

perco'll.

SiyisHure :

N-une

Tital or designation :

CERTIFICATE (PART TI)

Date :

, .. and the balance of y

The amount of the Fund's loin on the basis of progress of w.irk is y (Sa" Yo,i ); o i tho baqis of percentage certified in Part f ahow, tho amount due for disbursement of the loan comes to y (Say Yen ) Ai : mount of y (Say Y n ) has .-lU-oady Kec 1 disbur^M under [he Requests for Reimbursement upto arid including the Re- quest Nfr (Say Yen ) is nnw requested to be disbursed.

(name of Borrower)

Ey :

(Authorized Signaturi.';

Form : OECF-RMP

Request for Reimbursement

Date :

Loan No. :

App. Serial No.

TO : The OVERSEAS ECONOMIC CORPO- RATION FUND, Tokyo, Japan.

Attn : Manager, Loan Department.

Gentlemen :

1. Pursuant to the Loan Agreement No.

dated between THE OVERSEAS ECONOMIC COOPERATION FUND (herein- after referred to as the Fund) and (Borrower), the undersigned hereby requests for reimbursement, under said Loan Agreement, of the sum of ' "/ (Say Yen——-—— ) in reimbursement of expenditures as described in the attached Summary Sheet(s).

2. The undersigned has not previously requested for reimbursement of any amounts from the Loan for the propose of reimbursing or of meeting the expenditures described in the" attached SumTnary Sheet(s). The undersigned has not obtained nor will obtain funds for such purpose out the proceeds of any other loan, credit or grant available to the

undersigned except short-term loans or credits, if any, established in anticipation of the reimburse- ment requested for herein and to be repaid pro tanto with the funds reimbursed hereunder and any charges, commission or interest paid or pay- able under such anticipatory styort-tcnn credits are not included in the amount herein requested to be reimbursed.

3. The undersigned certifies that—

(a) the expenditures, hereby sought to be reimbursed, were made for the purposes specified in the Loan Agreement;

(b) the goods and services purchased with these expenditures have been procured in accordance with the applicable pro- curement procedures agreed with the Fund pursuant to the said Loan Agree- ment and the cost and terms of purchase thereof are reasonable;

(c) the said goods and services were or will be supplied by the supplier (s) specified in the attached Summary Sheet(s) and

FORM: OECF-RMP-SS

33

were or will be produced in (or, in the case of services, supplied from) the eligible source country (countries) for the Fund's loan.

(d) as of the date of this request there is no existing default under the Loan Agree- ment, nor, to the best of the under- signed's knowledge and belief, under the Guarantee, if any.

4. Please reimburse the amount requested for herein b<-

paying into the non-resident free yon account of

(payee)

with (name and address of an authorised foreign exchange hank in Tokyo) on (date of re mburscmcM)

1. This rdiuebl consists of.. . pajrc (•>) ^nd (number) (number)

signed and numbered Mimmjij sheet (s).

(Name of Borrower)

Bv"

(Authorised Signature)

Ua(c

Loan No, 1

App. Serial No. :

Summary Sheet No. • —— —

No. and Title of Catcgory/Subcategory— — —— (For more than ten items use additional sheet (s) with same number).

5

6

4

3

2

1.

Countty of origin

Dehveiy date

Item No.

8

7

9

10

11

Amount-Paid Amount Claimed

Remarks

Date of pay- ment

Desciiption of goods and service

Name and address of supplier

i No. and date of s supply con- tract or purchase order

1.

1

3. 4, 5, 6. 7. ". 9. 10.

Tota

Nature of payment made

Tn local Exch- currency ange

Agreed por- er tion

rate pi (Yen)

(9/8,%)

Note : Column 9 is to indicate, against each item, whether thu payment is a dov-n-pajmenl, or an instalment payment (if so, the

number of instalment) or the final payment in full settlement.

(Name of Borrower)

.

B y:

(Authorised signature)

OECG-RMP-i Our payment commission amounts

, „ - _

(currency and amount) Commercial Bank s Report of Payment

To '•

Date : Payment was effected against delivery of the documents as specified in and in acecrdanco with tho terms and conditions of the Letter of Credit mentioned above evidencing shipment

of

:

(general description of tho merchandise including the (Name and address, of Borrower or Borrower's Repiesentiitive)

quantity, etc.).

Gentlemen :

f r om •

to • / , • ; • • •.

(port of shipment)

(designation) Wo report having paid the sum of

(Currency and anuunt) Ocean dooumonts have been forwarded to^our above-men- oti

tioned correspondent bank. Copy oF the supplier's invoice i>.

(dute of payment) attached,

to

(name of supplier with address)

Y o u ts t r u l y' under L/C No established by

(a commercial bank) (name and address of correspondent bank)

3

Hv

lor account

(name and address of buyer

(Authorized signature)

PRINTED BY THE MANAGER, OOVT. 0 1' INDIA PRESS, RING ROAD, NEW DELHI-l 1 0 0 64

\ND PUBLISHED BY THE CONTROLLER Ol' PUBLICATIONS, DELHI-110O54, 1983