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ContractDate Posted: 2009-08-31 06:08:58
We understand your clarification about the Letter of Credit last time according to the item 3.8.7 of the Terms of Reference. However, we are still not sure what, other than modification and withdrawal, will result in forfeiture of the Bid Bond. We may feel more confident if you can point out in Terms of Reference all activities which will be regarded as non-compliance of bidders obligation.
Answer
Date Answered: 2009-08-31 06:08:13
The second paragraph of Article 4 in the Terms of Reference is designed to define this matter:
“By submitting a bid, the bidder commits to enter into an Exploration and Production Sharing Contract with the Islamic Republic of Afghanistan, acting through the Ministry of Mines. The bid is binding on the bidder, who thereby unconditionally undertakes to enter into the EPSC within the specified time frame and to submit a Financial Guarantee for Exploration Expenditures and a general guarantee of performance. Non-compliance with these obligations on the part of a preferred bidder may, on the conditions stated therein, result in a drawing on the Bid Bond.”
This is further expanded in Article 12 of the same Terms of Reference:
“Modification or withdrawal of a bid prior to that time will cause forfeiture of the Bid Bond.”
Finally, as stated in Article 3.8.7:
“If there is no cause for drawing on the Bid Bond, the Ministry of Mines will return the Bid Bond to the respective bidder subsequent to the signature of the EPSC.”
“By submitting a bid, the bidder commits to enter into an Exploration and Production Sharing Contract with the Islamic Republic of Afghanistan, acting through the Ministry of Mines. The bid is binding on the bidder, who thereby unconditionally undertakes to enter into the EPSC within the specified time frame and to submit a Financial Guarantee for Exploration Expenditures and a general guarantee of performance. Non-compliance with these obligations on the part of a preferred bidder may, on the conditions stated therein, result in a drawing on the Bid Bond.”
This is further expanded in Article 12 of the same Terms of Reference:
“Modification or withdrawal of a bid prior to that time will cause forfeiture of the Bid Bond.”
Finally, as stated in Article 3.8.7:
“If there is no cause for drawing on the Bid Bond, the Ministry of Mines will return the Bid Bond to the respective bidder subsequent to the signature of the EPSC.”