Galan-Galan Arabsa-Kura Jidda Design and Build Ring Road Asphalt Road Project Shaggar City Roads &

p; Logistics Office Bidding

Document

FORM OF BID/TENDER

Name of Contract: Galan-Galan Arabsa-Kura Jidda Design and Build Ring Road
Asphalt Road Project
To: Shaggar City Roads and Logistics Office
P.O. Box ________________
Tele: - +251-118-889-546/+251-114-401-883
Email: - [email protected]
Floor/Room number: ShCRLO Head Office, Ground Floor
Street: - Around Mano

Finfinnee, Oromia
Gentlemen:
1. Having examined the Conditions of Contract, Employer’s Requirement, Form of
Contracts and Addenda No.’s. [Insert Addenda No.’s.] for the Design and execution
of the above-named Works, we, the undersigned, offer to execute and complete
such Works and remedy any defects therein in conformity with the Conditions of
Contract, Employer’s requirement, and Addenda with:
Total Lump Sum cost of [insert amount in figures and words] including a VAT
amount of [insert amounts in numbers and words].
2. We acknowledge that the Appendix forms part of our Bid.
3. We attach our Bid Security in the sum of [Insert amount], taken out with [Insert
name and address of Bank or Insurance company].
4. We undertake, if our Bid is accepted, to commence the Works as soon as is
reasonably possible after the receipt of the Employer’s Representative’s notice to
commence, and to complete the whole of the Works comprised in the Contract
within the time stated in the Appendix to Bid.
5. We undertake, if our Bid is accepted, to deploy two Subcontractors with a minimum
of 10 % of the contract price for each or one Subcontractor with a minimum of 20 %
of the Contract Price for Subcontracting works stated in the Appendix to Bid sub
clause 4.5.
6. We agree to abide by this Bid until the date 120 days from date of bid submission
specified in the Bidding Data and it shall remain binding upon us and may be
accepted at any time before that date.
7. Unless and until a formal Agreement is prepared and executed, this Bid, together
with your written acceptance thereof, shall constitute a binding Contract between
us.
8. We understand that you are not bound to accept the lowest or any bid you may
receive.

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9. We hereby certify that we have taken steps to ensure that no person acting for us
or on our behalf will engage in bribery.
Dated this ___________ day of ___ 20
Signature in the capacity of
Duly authorized to sign bids for and on behalf of
[in block capitals or typed]
Address:
Witness:
Address:
Occupation

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APPENDIX TO TENDER/BID
[Bidders must fill in all the appropriate blank spaces. Bidders are required to sign each
page of the Appendix to Bid.]
Condition
of Contract
Sub-
Clause
Employer’s name 1.1.30 & 1.3 Name: Shaggar City Administration
and address (d) Address:
P.O.Box ________________
Tele: - +251-118-889-546/+251-114-401-883
Email: - [email protected]
Floor/Room number: ShCRLO Head Office, Ground Floor
Street: - Around Mamo
Finfinnee, Oromia
Contractor’s name 1.1.13 & 1.3 Name: Oro-Construction Group
and address (d) Address:
P.O. Box ________________
Tele: -
Email: -
Floor/Room number: OCG Head Office, Fifth Floor
Street: - Finfinnee Ring Road-Bole Michael
Finfinnee, Oromia
Name and address 1.1.36 & 1.3 (To be notified later)
of the Employer’s (d)
Representative

Time for 1.1.86 & 8.2 850 Calendar Days including 60 Days of
Completion of the Mobilization period and excluding 365 days of
Works Defects Liability Period and 4 Years of warranty
period.

Foreign 1.1.42 & Not Applicable

Currency/Currenci 14.15 (a)
es
Law of the 1.1.49 & 1.4 The law of the Contract is the Law of the Federal
Contract Democratic Republic of Ethiopia (FDRE).

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Condition
of Contract
Sub-
Clause
Ruling language 1.4 English
Language for 1.1.56, 1.3 English
communications & 1.4
Electronic 1.3 (c) Not Applicable
transmission
systems
Confidential details 1.12 (to be inserted by the Bidder)

Time for access to 2.1 Access to the site shall be granted to the Contractor
the Site along with the commencement letter. The Employer will
provide to the Contractor, free of charge, such land as
the Contractor may reasonably require for road
reserve, camps, workshops, diversion roads, borrow
pits and quarries. Possession of land for the Engineer’s
and Contractor’s establishment shall come to effect
within 2 weeks after receipt of the Contractor’s first
written notice of requirement. However, the Contractor
shall give to the Engineer with a copy to the Employer,
not less than Four months prior notice of his
requirement for the above-mentioned land requirement
for road reserve in rural section, detour, borrow pits,
quarry, stockpiling area and Six months for road
reserve in urban (town) section.
Amount of 4.2 Ten percent (10%) of the Contract Price. Conditional
performance performance guarantee from insurance company is
security acceptable only for local Contractors.
Sub-contracting 4.4 (a) & The Contractor shall follow ERA’s Subcontract or
Selection 4.4.(b) Management Framework from selection process until
Procedure and administration of Subcontractors
Subcontract
Agreement
Limit of 4.5 • The Contractor shall propose as mandatory
Subcontracting Subcontracting minimum of two domestic
Subcontractors with a minimum of 5% of the
Contract price for each Subcontractor or one
Subcontract or with a minimum of 20% of the
Contract price who have any kind of projects with
the Employer or with other similar Employers within
a maximum total amount ETB 1Billion Birr. The
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Condition
of Contract
Sub-
Clause
Subcontractor shall have a category of GC-5/RC-5
to GC-1/RC-1 inclusive.
• The nominated sub-contractors are Walabu
Construction SC, OBM Construction SC, OCC and
CCCC.
• The proposed domestic Subcontractors for the
mandatory Subcontract requirement shall fulfill the
definition of Domestic bidders as defined under
ERA’s Subcontract or Management Framework.
Safety, Security 4.26 ETB 500,000.00 per month if the Contractor fails to
and Protection of comply with any of his obligations under the Contract.
the Environment
Normal working 6.5 As defined in the applicable labour law of the Federal
hours Democratic Republic of Ethiopia
Time for notice to 8.1 Within 28 (Twenty-Eight) Days of Contract Signature.
commence
Time for 8.3 Within 28 (Twenty-Eight) days of Commencement of the
submission of Works.
programme
ETB 1,000,000.00 per month where failure by the
Contractor to submit or update the work program as
required

Extension of time 8.5 Add the following provisions

for completion
The place where weather is to be recorded is on site
and at the Federal Democratic Republic of Ethiopia
National Metrological Agency (NMA) station at the
project vicinity.

The weather data are the records of past weather

measurements for each calendar month which are

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Condition
of Contract
Sub-
Clause
recorded at the Federal Democratic Republic of
Ethiopia National Metrological Agency (NMA) station at
the project vicinity.

Delay Damages 8.8 0.1% of the Contract price per day, if there is no
completed section already handed over to the
Employer; or
0.1% of the value of the remaining works per day (i.e.
value of remaining works equals final contract price
less the value of the completed sections already
handed over to the Employer).
Limit of liquidated 8.8 Ten (10) percent of the final Contract Price, if there is
damages for delay no completed section already handed over to the
Employer; or;
Ten (10) percent of the value of the remaining works
(i.e. value of remaining works equals final Contract
price less the value of the completed sections already
handed over to the Employer).
If Clause 11 11.4 N/A
applies:
Liquidated
damages for failing
Tests after
Completion
(details of test
failure)
The contract Price 14.1(d) Refer the payment schedule attached with this
Appendix to Tender/Bid.
Advance Payments 14.2 Maximum amount of advance payment shall be thirty
percent (30%) of the Contract Price which shall be paid
in the currencies and proportions the accepted contract
price is payable.
The advance payment guaranty will be in the form of
conditional/unconditional/Commitment letter from
Oromia Finance Bureau guaranty in the amount equal
to the amount of the advance payment including VAT.
Advance Guarantee emanated from foreign institutions
shall be counter-guaranteed by Ethiopian Bank.
Conditional Advance Payment guarantee is acceptable
for only local Contractors.

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Condition
of Contract
Sub-
Clause
Local Contractors who submit Conditional Guarantee
shall fulfill the following:
a) The Contractor shall sign advance payment
disbursement agreement and submit detail of
advance payment disbursement schedule.
b) The Employer will pay fifty percent (50%) of the
advance payment in cash up on submission of
conditional guaranty.
c) The Employer will pay remaining fifty percent (50%)
of the advance payment, in a maximum of five
installments, directly to the supplier on behalf of the
Contractor for purchasing of equipment or
construction material depending on the purchasing
agreement made between the Contractor and the
supplier.
The Employer will deduct and pay the VAT portion of
the Advance Payment directly to the Relevant
Governmental Authority on behalf of the Contractor.
Start repayment of 14.2.3(a) After certification of 20 (Twenty) percent of the Contract
advance payment Price less specified provisional sum and day works.

Repayment 14.2.3(b) 50 (Fifty) percent of the amount of monthly Interim

amortization of Payment Certificates.
advance payment
The recovery of the advance payment from monthly
interim payment certificate shall also include price
adjustment, but excludes Material On site Payment.

Percentage of 14.3 (iii) 5 (five) percent of Interim Payment Certificates, up to a

Retention and Limit maximum of 5 (five) percent of the Contract Price plus
of Retention variations less VAT and Provisional Sums.
Money
Plant and Materials 14.5 Plant and Material delivered to the site for the purpose
for Payment when of the work.
Delivered to the
Site
Minimum amount 14.6.2 ETB 50,000,0000.00(Fifty Million and 00/100)
of Interim payment
Certificate
Rates of interest 14.8 For Local Currency: 4 (Four) percent.

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Condition
of Contract
Sub-
Clause
upon unpaid sums For Foreign Currency: N/A
Periods for 19.2 19.2.1, 19.2.2, 19.2.3, & 19.2.4: as soon as
submission of practicable, but in any case, prior to the start of the
insurance: permanent work at site.
(a) Evidence of
Insurance
(b) Relevant Policy
Amount of 19.2.3 The value of the Design in the Contract.
insurance for
design
Amount of third- 19.2.3 ETB: 2 million Ethiopian Birr per occurrence, with the
party insurance number of occurrences unlimited.

Arbitration rules 21.6.2 Rules of Conciliation and Arbitration of Addis Ababa

Chamber of Commerce and Sectorial Associations
Arbitration Institution, Addis Ababa for local
Contractors and foreign contractors awarded through
National Tenders.

Number of 21.1 One Dispute Review Expert

members of
Dispute review
Expert
The appointed 21.1 The appointing authority shall be:
person or § Addis Ababa Chamber of Commerce and Sectoral
administration in Associations Arbitration Institute (AACCSAAI) for
case of Local Contractors awarded through National and
disagreement International Competitive Tenders;
Number of 21.6 One or three arbitrators as it will be agreed by the
arbitrators parties
Language and 21.6 Language: English
Place of arbitration Place:
Addis Ababa for local Contractors and foreign
contractors awarded through National Tenders
Trial Section for 23 The Contractor shall consider a length of 300m for trial
Research section on which pilot tests of Research Projects are to
be conducted.

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Currency Unit Percentage Rate of

payable in such exchange:
Currency number of Local
Payments in Local and 1.1.52 & per unit of
Foreign Currencies 14.15 Foreign
Not Applicable Not Applicable Not Applicable
Not Applicable Not Applicable Not Applicable

The items on the following pages are to be filled in by the bidder as part of his
bid,
For Use with 14.3 [see Table: A immediately below]
Table A of Sub- 13.15
Clause 13.3 and
Sub-Clause
14.15

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A: SUMMARY OF CURRENCIES

Table A: Summary of payment currencies of the Bid

A B C D
Name of payment Amount Rate of Local Percentage of
currency of exchange currency Net Bid Price
currency (local equivalen (NBP)
currency t 100xC
per unit of C = A x B NBP
foreign)
Local currency Not Not Not Not Applicable
Applicabl Applicable Applicable
e

Foreign currency #1** Not Not Not Not Applicable

Applicabl Applicable Applicable
e

Foreign currency #2** Not Not Not Not Applicable

Applicabl Applicable Applicable
e

Foreign currency #3** Not Not Not Not Applicable

Applicabl Applicable Applicable
e

Net Bid Price *

Specified Provisional
sums expressed in
local currency (if any)
15% VAT

BID PRICE

Note: The maximum allowed portion of the total foreign currency is none.
(*) The Net Bid Price is the total bid price, excluding VAT, specified provisional sums
and contingency.
(**) Not Applicable for National Competitive Tenders.
Note:
1. Local bidders are not allowed to quote foreign currency requirement; i.e. they shall
quote their offer fully in Ethiopian Birr and payment will be also made in Ethiopian Birr.
2. The Local currency portion shall include all taxes including VAT for the full bid offer.
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Approximate 13.7 [See table immediately below]

Weightings for
Price Adjustment
Formulae

Table B: Weightings for Price Adjustment

Description of index % range of weighting

Fixed/Nonadjustable 30
Fuel 18-23
Bitumen 12-15
Steel Reinforcement Bar 2-5
Cement 12-15
Equipment 20-25
Total 100%

As guidance to bidders and for the purpose of checking their submissions, the
Employer has estimated and provided a range of acceptable weightings (of the
total estimate) of the allowed construction inputs for price variations.

Weightings 13.7 In the tables immediately below, bidders shall (a)

and Indices indicate their amounts of payment, (b) indicate their
proposed source and base price /indices for the
different elements of cost, (c) derive their proposed
weightings for local and foreign currency payment as
indicated below, and (d) list the exchange rates used
in the currency conversion.

Table C: Local Currency

Bidder's
Base Bidder's
Index Source of related
Index description Value and proposed
Code index currency
date weighting
amount
- Nonadjustable - - - A:30%
F Fuel b:
B Bitumen c:
Reinforcement
S d:
Steel
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C Cement e:
E Equipment f:
Total 100%

Table D: Foreign Currency 1 (FC1)a

Applicable for Bill No.-------, ---------------(insert No. and name)

Index Index Source of Base Bidder’s Bidder’s
Code Description Index value and related proposed
date currency weighting
amount
Nonadjustable A: 30%
F Fuel - - - b:
B Bitumen - - - C:
S Reinforcement D:
Steel
C Cement E:
E Equipment F:
FL Foreign Labor G: 0%
Total 100%

If the bidder wishes to quote in more than one foreign currency (up to three), this table
should be repeated for each foreign currency

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SCHEDULE OF NAMED SPECIALIST SUB-CONTRACTORSa

Name and
Statement of
Approximate address of
Item Element of work similar works
value Sub-
executed
Contractor

a. The bidder shall enter in this schedule a list of the specialized works and
approximate value of the work for which he proposes to use specialist Sub-
Contractors, together with the names and addresses of the proposed Sub-
Contractors.

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PAYMENT SCHEDULE
Measurement and Payment provisions of the construction specification shall be Lump
Sum basis and shall be paid upon completion of each of the work items indicated
below as per the percentage proportion provided herein.
I) The weighted average percentages of the contract price of each of the work items
for payment purposes are indicated below:
Percenta
Item Series/
Work Type Description ge of Code
No. Division
Payment
1 Survey, Design Survey, Investigation and 2% P1
Investigation Design as per the Employer’s
and Design Requirement; Eighty percent
(80%) of the amount with
respect to this work item shall
be released after approval of
the full design of the project
Works (the main Bridge, and
gate access, frontage and ramp
roads) by the Employer’s
Representative. The remaining
twenty (20%) shall be released
after the substructure of the
main bridge and earthwork of
the approach roads of the
project are fully completed.
2 Provision of 1000/ Provision of Employer’s 5% P2
Facilities to the 1400 Representative facilities as per
Employer’s Employer’s Requirement, out of
Representative which 80% shall be released as
per the percentage completed
of this work item as approved
by the Employer’s
Representative. The remaining
twenty percent (20%) shall be
released on monthly basis,
equally, in the original
contract duration.
3 Detour and 1000/ Undertake traffic management, 0.5% P3
Traffic 1500 execute construction and
Management maintenance of temporary
traffic diversions/haul and
access roads, barricades,
signs, and the provision of
everything necessary for the
safe and easy passage of all
public and construction traffic
during the performance of the
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Percenta
Item Series/
Work Type Description ge of Code
No. Division
Payment
Contract including the
reinstatement of traffic
diversions, if any.
4 Site Clearance 2000/ Execute site clearance 27.5% P4
and Earthwork 4000 activities, earthworks and
protect the environment all in
accordance with the latest ERA
Design Manuals and
Specifications.
5 Sub base and 5000 Execute sub base and base P5
Base course coarse works satisfying all the
Contract requirements.
5.1 Sub base 5100 Execute sub base works 7% P5.1
satisfying all the Contract
requirements.
5.2 Base course 5200 Execute base coarse works 8% P5.2
satisfying all the Contract
requirements.
6 Bituminous 6000 Execute bituminous surface 15% P6
Surface works satisfying all the Contract
including requirements.
shoulders
7 Bridges, 3000/ Execute drainage works; 30% P7
Culverts and 8000 culverts, bridges, paved ditches
Drainage and drainage works satisfying
all the contract requirements.
Thirty percent (30%) of the
amount with respect to this
work item shall be released
proportionally for the
construction of the bridge
substructure Works (any
structure below the bottom of
the superstructure). The
remaining Seventy percent
(70%) shall be released
proportionally for the
construction of the bridge
superstructures and other
structural and drainage works.
8 Road 1000/ Execute/provide road furniture, 5% P8
Furniture and 9000 road ancillary works, social
Environmental health, safety, HIV Alleviation
works Campaign, environmental
(including protection and erosion control
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Percenta
Item Series/
Work Type Description ge of Code
No. Division
Payment
reinstatement works satisfying all the Contract
and Social, requirements.
Health
including HIV
Alleviation
Services,
Safety and
Environmental
Protection and
Mitigation
Measures)
II) Each of the above work items shall be following ERA’s 2013 Standard Technical
Specifications and Methods of Measurement.
III) At the end of each month, the Contractor shall submit a statement, showing the
amounts to which, the Contractor considers himself to be entitled on the bases of
the works mentioned in items 1, 2, 3, 4, 5, 6, 7 and 8 above. The estimated
amount of the monthly statement shall be the value of the works executed up to
the end of the month. The following formula will be used to calculate the amount of
monthly statement.
IPCn = [(Ac – Ap) + (Bc – Bp)] – Advance Repayment – Retention Money + Material
Advance – Material Recovery.
Where:
• IPCn is Interim Payment Certificate of the nth period or month
• A is the cumulative value of the work items 1 and 2 listed under Item No.
I above, for which A is calculated as follows:
A = {[((LE1/LT)*P1%*80%) + ((LE4a/LT)* P1%*20%)] + [((PC2* P2%*80%)
+ (((ET-TF)/(CD-TF))* P2%*20%)]}*CA
• B is the cumulative value of the work items 3, 4, 5, 6, 7 and 8 listed under
Item No. I above, for which B is calculated as follows:
B = {[(LE3/LT)* P3%] + [(LE4/LT)* P4%] + [(LE5/LT)* P5%] + [(LE6/LT)*
P6%] + [(LE7/LT)* P7%] + [(LE8/LT)* P8%]}*CA
• PC: Percentage Completed of Employer’s Representative’s facility as
approved by the Employer’s Representative
• TF: Time given for provision of Temporary Facilities
• ET: Elapsed Contract time in months. ET shall not be entered less than
TF
• CD: Contract Period in months
• LE: Completed length of each work item and it may vary from work item
to work item
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• LT: The assumed total length of the project for payment purpose. For
this Contract, LT equals 73.4 km. This length is indicative only and
the total length is to be revised after the final design of the whole
project length and each payment certified to that date shall be
revised accordingly.
• CA: the contract amount
• P1-P8 inclusive: the payment percentages as assigned in the payment
schedule
• a: It is assumed that there would be no redesign work after earthwork
(work item 4) has been completed for a section and /or length and
hence 20% of the remaining Design Payment would be released
after the completion of the earthwork for that particular length
•The subscript “c” and “p” under “A” and “B” indicates “current” and
“previous” periods respectively
Note: The subscript numbers from 1 to 8 in the formula for “A” and “B” correspond to
the numbers 1 to 8 of the work items listed under item No. I above.

• 95% of the payment that are related to cut and borrow to fill and cut to spoil
shall be incorporated in the payment certificate before the application of
retention money, when the Contractor fulfills all the required works that are
stipulated under the relevant Clauses/Specifications/Quantities/Drawings of
the contract. Whereas , the remaining 5% of the withheld amount that are
related to the above mentioned pay item will be realized, when the contractor
executes all the necessary environmental reinstatement, and impact
management plan as per the relevant provisions of Contract documents. In
case where the Contractor maintains his negligence of undertaking the
necessary reinstatement and environmental protection works, after two
instance of warning, the Employer is at liberty to utilize the withheld amount of
any activities related to the reinstatement works either by assigning another
contractor to execute the work and/ or remedy damage emanated as a result
of the Contractor’s failure to timely rectification that are not covered by surety
and/or to execute the work by other means. Nevertheless, the implementation
of the abovementioned mechanism does not jeopardize the Employer’s
remedial right that are stipulated under different sections of the Contract, in
cases where the Contractor becomes in default of the reinstatement works.
Furthermore, the Contractor shall submit his reinstatement methodology for
the specifically requested site while submitting possession of site requests for
quarries and borrow sites. Accordingly, possession of site requests that are
not accompanied with such methodologies or methods that are deficient, in
the opinion of the Engineer will automatically be rejected. In addition, the
Contractor shall make reinstatement works in strict adherence to the
captioned methodology and based on the applicable clause of the contract
document.

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FORM OF BID SECURITY (BANK GUARANTEE)

WHEREAS, ______________________ [ Name of Bidder] (hereinafter Called the

“Bidder” has submitted his bid dated [date] ____________________ for the
________________________ [Galan-Galan Arabsa-Kura Jidda Design and Build
Ring Road Asphalt Road Project] (herein after called “the Bid”)
KNOW ALL PEOPLE by these presents that
We ________________________________ [Name of
Bank_________________________] having our office at ____________________
[full Address_____________] (hereinafter called “ the Bank”) are bound unto the
Shaggar City Administration (hereinafter called “ the Employer”) in the sum of
_______________________________ for which payment well and truly to be made to
the said Employer the Bank binds himself, his successors and assigns by these
presents.
SEALED WITH THE Common Seal of the said Bank this______ day of ________,
20__.
THE CONDITIONS OF this obligation are:
1. If the Bidder withdraws his bid during the period of bid validity specified in the Form
of bid
OR
2. If the Bidder refuses to accept the correction of errors in his Bid.
OR
3. If the Bidder having been notified of the acceptance of his Bid by the Employer
during the period of Bid validity:
(a) Fails or refuses to execute the Form of Agreement in accordance with the
Instruction to Bidders
(b) Fails or refuses to furnish the performance security in accordance with the
Instruction to Bidders.
We undertake to pay to the Employer up to the above amount upon receipt of his first
written demand, without the Employer having to substantiate his demand, provided
that in his demand the Employer will note that the amount claimed by him due to him
is owing to the occurrence of one or more of the above conditions, specifying the
occurred condition or conditions.
This Guarantee will remain in force up to and including the date 28 days after the date
of expiration of the bid validity, as stated in the Instruction to Bidders or as it may be
extended by the Employer, notice of which extension(s) to the Bank is hereby waived.
Any demand in respect of this Guarantee should reach the Bank not later than the
above date.
Date____________________
SIGNATURE OF THE BANK ________________________
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Galan-Galan Arabsa-Kura Jidda Design and Build Ring Road Asphalt Road Project Shaggar City Roads & Logistics Office Bidding
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WITNESS _________________ SEAL ____________

(Signature, Name, and Address)

FORM OF CONDITIONAL BID SECURITY FROM INSURANCE/BONDING

INSTITUTION

Policy No: –––––––––––––––––––––––––

Date of Bid: ––––––––––––––––––––––––

Works:
Invitation to Bid:
Contractor:
Surety:
Bid Bond executed
on:
Bond Amount:

Know all men by these presents that we, the principal and the surety, above named
are held and firmly bound unto Shaggar City Administration (Hereinafter Called” The
Client”) in the bond amount stated above for the payment of which sum well and truly
to be made we bind ourselves, our heirs, executors, administrators, successors and
assigns jointly and severally by these presents.
At the request of the bidder, we ------------------------------ herby undertake to pay you
any sum or sums not exceeding in the total amount Birr -------------------- (------------------
----) accompanied by a written statement stating that the bidder is in breach of its
obligation (s) under the bid conditions because the bidder:-
a) has withdrawn its bid during the period of bid validity specified by the bidder in
the form of bid; or
b) having been notified of the acceptance of its bid by the Employer during the
period of bid validity, (i) fails or refuses to execute the contract form, if required,
or (ii) fails or refuses to furnish the performance security, in accordance with the
instructions to bidders, and (iii) refuses to accept the Arithmetic correction of
errors in his bid
This guarantee will expire: (a) if the bidder is the successful bidder, upon our receipt of
copies of the contract signed by the bidder and the performance security issued to you
upon the instruction of the bidder; or (b) if the bidder is not the successful bidder, upon

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the earlier of (i) our receipt of a copy of your notification to the bidder of the name of
the successful bidder; (ii) twenty-eight (28) days after the expiration of the bidder’s bid.
Consequently, any demand for payment under the guarantee must be recovered by us
at the office on or before that date.
–––––––––––––––––––––– –––––––––––––––––––––
Principal Surety

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FORM OF UNCONDITIONAL LINE OF CREDIT

Ref. No.: - _______________

Date: - _________________
To: - Shaggar City Administration

Subject: - Unconditional Credit Facility

Our customer [name and address of Contractor] in its letter dated

[_________________insert date of letter of the Contractor request the Bank] has
requested us letter of confirmation for their request of credit facility for the [Galan-
Galan Arabsa-Kura Jidda Design and Build Ring Road Asphalt Road Project]
project for the amount of Birr [insert the amount______________________________].

We hereby confirm that we will provide Unconditional and irrevocable line of credit
facility for the mentioned customer amounting Birr [insert the
amount__________________________________________________] valid for the
duration of Contract for the exclusive use of the aforementioned project if the customer
wins the project.

DATE____________________

SIGNATURE OF THE BANK ________________________

WITNESS 1 _________________ SEAL ____________

(Signature, Name, and Address)

WITNESS 2 _________________ SEAL ____________

(Signature, Name, and Address)

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