Guideline for Devices and Material Procurement

(Revision history)
- Issued on: Jan. 01, 2007

General Electricity Company of Libya

 Contents

1 ARTICLE 1: COVERAGE........................................................................................................................3

2 ARTICLE 2: DEFINITION OF TERMS..............................................................................................4

3 ARTICLE 3: METHODS OF PROCUREMENT................................................................................6

4 ARTICLE 4: REQUEST FOR PROCUREMENT OF MATERIALS...............................................7

5 ARTICLE 5: AUDIT CONFIRMATION.............................................................................................8

6 ARTICLE 6: REVISION FOR CHANGES OR CANCELLATION.................................................9

7 ARTICLE 7: PROCUREMENT PLAN..............................................................................................10

8 ARTICLE 8: DIVIDED OR INTEGRATED PURCHASES.............................................................11

9 ARTICLE 9: PUBLIC BIDDING........................................................................................................12

10 ARTICLE 10: RE‐BIDDING.............................................................................................................18

11 ARTICLE 11: PRESSING BIDDING..................................................................................................19

12 ARTICLE 12: SELECTIVE BIDDING..............................................................................................20

13 ARTICLE 13: SOLE SOURCE PROCUREMENT...........................................................................22

14 ARTICLE 14: SHOPPING...................................................................................................................23

15 ARTICLE 15: TERMS OF PAYMENT..............................................................................................24

16 ARTICLE 16: DELIVERY...................................................................................................................25

17 ARTICLE 17: PAYMENT OF CONTRACT AMOUNT..................................................................26

18 ARTICLE 18: PENALTY OF DELAYED DELIVERY....................................................................27

19 ARTICLE 19: COMPLETION OF CONTRACT..............................................................................28

20 ARTICLE 20: WARRANTY BOND...................................................................................................29

21 Article 21: TAX/VAT MONITORING...................................................................................................30

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1 Article 1: COVERAGE

1.1 These Rules and Regulations shall apply to the procurement of devices and materials
(“Materials”) of General Electricity Company of Libya (“GECOL”) for its normal
construction and operations and the maintenance of the power distribution system in
Libya.

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2 Article 2: DEFINITION OF TERMS

2.1 Approved Budget shall mean the budget allocated for each procurement and
approved by the BCO in accordance with Article 9 of this Procedure.

2.2 Bid Due Date shall be as provided in Article 16.1.(c) of this Procedure.

2.3 Budget Control Officer (“BCO”) shall mean the person or the organization
responsible for determining the availability of the budget by signing on the PR in
accordance with the PR Procedures.

2.4 Contract shall mean any contract or document executed between GECOL and a
Contractor for the procurement of materials, which may be in the form of a Purchase
Order or Purchase Contract or any other agreement.

2.5 Contractor shall refer to a person or company, which may either be a supplier
(manufacturer or distributor) engaged to provide the Materials required by GECOL,
in accordance with a Contract.

2.6 Inventory Control Officer (“ICO”) shall mean the person or the organization in
charge of the custody of any or all procured materials and tasked to determine
whether the material being requested is available at the warehouse or not.

2.7 GECOL shall mean the General Electricity Company of Libya.

2.8 LD refers to Libyan Dinar.

2.9 Materials shall be as defined in Article 1, which shall be deemed to include all
related devices and materials necessary for the construction, operation and
maintenance of GECOL distribution system.

2.10 Offshore Purchases shall refer to procurement from foreign sources of materials,
either directly or through an agent or regional/local distributor, the payment for
which shall be in foreign currency.

2.11 Onshore Purchases shall refer to procurement from Libya sources, with no
importation from a manufacturer, supplier or regional/local distributor, the payment
for which shall be in Libyan Dinar or USD or Euro.

2.12 PD refers to the organization or the person in GECOL, including the Procurement
Department, in charge of the bidding, negotiation, conclusion and administration of a

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 Contract for the procurement of Materials at the request of TD or as required by a
Contract.

2.13 Registered Supplier shall mean a supplier who registered to Registration

Department of GECOL according to “Guideline for Supplier Registration”.

2.14 Purchase Request (PR) shall mean a written request for any materials required for
distribution system or other administrative needs.

2.15 Recommended Contractor refers to a Contractor recommended by TD.

2.16 Required Delivery Date shall refer to the date on which the Materials are required
to be delivered at the job site or such other place designated by TD.

2.17 Technical Department (“TD”) shall refer to the organization, department or person
initiating the procurement of Materials. It shall be the departments in charge of
construction, maintenance, operation, etc.

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3 Article 3: Methods of Procurement

3.1 Public Bidding

Public Bidding is normal open bidding by normal procedure.

3.2 Pressing Bidding

Pressing Bidding is a kind of Public Bidding and applicable when not enough time
for Public Bidding. Pressing Bidding shall follow the Public Bidding procedure, but
it can shorten the Due Date and omit re-bidding.

3.3 Selective Bidding

Selective Bidding is a competitive bidding among pre-selected supplier to ensure the
timely procurement of high quality material.

3.4 Shopping
Shopping is a kind of Selective Bidding and applicable to procurement of small
amount procurement.

3.5 Sole Procurement

Sole Procurement is the procurement without bidding.

3.6 Bidding Qualification

For the Public Bidding, Pressing Bidding, Selective Bidding, bidding attendance for
Group I and Group II Material is allowed only for “Registered Supplier” who is
registered by “Guideline for Supplier Registration”.

3.7 Procurement Outsourcing

In order to expedite the procurement process or to secure a competitive price,
GECOL may request subsidiaries of GECOL to undertake the procurement process,
in whole or in part, based on the applicable service agreement.

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4 Article 4: REQUEST FOR PROCUREMENT OF MATERIALS

4.1 TD shall request a procurement of materials to PD with the necessary document and
information, including but not limited to the following:
If procurement is through Sole Source or Pressing Bidding, the PR must be
accompanied by the rationale for such special procurement, whichever is applicable;
(a) Technical Specifications
(b) Drawings, photos, catalogues and/or brochures, if any
(c) Brochures or directories of the Recommended Manufacturer, if necessary
(d) Other documents deemed relevant and necessary by PD.

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5 Article 5: AUDIT CONFIRMATION

5.1 TD shall also secure the confirmation from the Internal Auditor for the PR with a
value greater than US$20,000 or its LD equivalent (in case of procurement through
bidding process) and US$10,000 or its LD equivalent (in case of sole source
procurement).

5.2 Audit Confirmation shall be repeated in following cases:

(a) Change of Advance payment mode;
(b) Change of Down payment without Surety Bond;
(c) Change of Performance Bond conditions
(d) Change of Warranty Bond conditions
        (e) Deviation from the Procurement Method as approved in the Procurement Plan.

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6 Article 6: REVISION FOR CHANGES OR CANCELLATION

6.1 If TD determines that the issued PR shall be changed or cancelled, either in whole or
in part, TD shall immediately notify PD of such change(s) in writing at least two (2)
business days prior to the date of bidding or issuing of a purchase order. Such notice
shall be formalized in a Revised PR for PD to cancel or change the requisition of the
original PR.

6.2 Should there be any changes to the requisition which had already been sent out to the
potential bidders or contractors, a reasonable extension of Lead Time, to be
determined on a case to case basis, shall be considered subject to the scope and
extent of such changes, except in the case of cancellation of the requisition.

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7 Article 7: PROCUREMENT PLAN

7.1 The Procurement Staff shall prepare the Procurement Plan with supporting
documents and information.

7.2 The Procurement Plan shall include the following information based on the PR and
other requests from TD:
(a) Method or Procedures and estimated Procurement Delivery Schedule until the
conclusion of contract
(b) Budget Amount(s) for Procurement per PR
(c) Procurement Method, with justification or rationale in the event of Sole Source or
Shopping
(d) Qualification(s) of, pre-requisite(s) or limitation(s) for, the bidders to be invited;
(e) Date or Duration for Delivery or Completion;
(f) Shipping Terms or Any Special Conditions for Delivery;
(g) Special Inspection Requirement(s);
(h) Any substantial exception to this procurement procedure;
(i) Conclusion of Contract by dividing into or integrating with other PRs; and
(j) Others as required.

7.3 Approval of the Procurement Plan shall be based on the following scale, or its LD
equivalent:

Approved Budget Approving Authority

Over US$100,000 Chairman
Over US$50,000 up to US$100,000 GM
Over US$10,000 up to US$50,000 Assistant GM
Over US$1,000 up to US$10,000 Manager

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8 Article 8: DIVIDED OR INTEGRATED PURCHASES
In cases where PD, after careful evaluation of the PR or the bids submitted, clearly finds
that divided or integrated purchases would be more beneficial to GECOL, PD may proceed
with such purchase. It may consult with TD for divided or integrated purchase as may be
deemed necessary.

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9 Article 9: PUBLIC BIDDING

9.1 Bidding qualification of supplier

Only the “Registered Supplier” shall have bidding qualification of Public Bidding.
The material could be purchased from unregistered supplier with following cases.
(a) There is not a registered supplier suitable for the item.
(b) There is no registered supplier who participate the bidding

9.2 Public bidding criteria

All of the material procurement shall undergo public bidding process except
following cases.
(a) Procurement of highly specialized types of materials where only a few
available suppliers could maintain a competitive position
(b) Procurement of any parts of existing equipment or procurement of spare parts
or special tools for that equipment where only a few suppliers are well
established
(c) Procurement of major materials where it is deemed advantageous to limit the
bidding to known qualified bidders in order to maintain uniform quality and
performance of distribution system
(d) Procurement of equipment worth less than US$50,000 or its equivalent amount.

9.3 Bidding advertisement

9.3.1 The Invitation to Bid shall be advertised at least once a week for at least two (2)
consecutive weeks, with a period of seven (7) calendar days between publications,
in at least two (2) newspapers of general nationwide circulation which have been
published regularly for at least two (2) years before the date of issue of the
advertisement. The Invitation to Bid shall also be posted continuously in the
website of GECOL for the same period in English and Arabic.

9.3.2 At least thirty (30) calendar days between the last day of the above advertisement/
posting period and the opening of bids shall be given to the bidders

9.3.3 The Invitation to Bid shall be distributed at a reasonable cost to the bidders. The
amount charged should be sufficient to (a) avoid willful interruption to or
interference with the bidding or procurement process, and (b) defray

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 administrative, publication and other related expenses.

9.4 Site Visit / Presentation

9.4.1 Site visit/presentation, if necessary, may be carried out on a collective basis prior to
the Bid Due Date. To ensure timely conclusion of the contract, TD shall indicate
any such requirement or necessity of the site visit/presentation in the PR, which will
be reflected in the Procurement Plan by PD. Unless otherwise agreed, each bidder
shall shoulder its own cost for purposes of site visit/presentation.

9.4.2 Site visit/presentation shall be undertaken by TD with coordination and/or support

from the department in charge of construction and/or operation. The Site
presentation shall be held in the presence of the Procurement Staff or any
representative from PD.

9.4.3 During the site visit/presentation, GECOL shall likewise conduct the clarification
on the bidding guidelines (such as general/special specifications, related drawings,
and supply scope of Materials), in order to ensure that the participants in the session
can be fully informed of the requirements for the Materials to be procured.

9.4.4 Only the participants in such site visit/presentation whose names are in the
participant list prepared by PD shall be allowed to submit the bid documents, and
all bidders shall be given prior notice in this regard.

9.5 Submission of bid documents

9.5.1 Bid documents may be delivered by hand or by registered mail as required in the
bidding advertisement.

9.5.2 All bid documents received shall be given the proper marks, receipt number and
date of receipt, including the time, and shall be kept in PD.

9.5.3 The sealed price proposal shall be kept exclusively in a secured box/safe under the
direct custody of PD Manager until its opening date. Under special circumstances,
the documents may be kept by the Auditor.

9.5.4 To ensure the integrity of the sealed bidding, the receiving copy of the sealed bid
documents shall not contain any price.

9.6 Placement of Bid Bond

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9.6.1 Bidders shall not be required to submit a Bid Bond, except in cases where it is
exceptionally important to secure the bidder’s commitment to enter into contract
once awarded. In such a case, the bidders shall be notified of the requirement to
submit a Bid Bond.

9.6.2 Any Bid Bond provided shall be valid for at least ninety (90) days from the Bid
Due Date.

9.7 Bid opening

9.7.1 Opening of bid documents shall be done within forty-eight (48) hours after the Bid
Due Date.

9.7.2 The first to be opened shall be the technical proposals and PD shall ensure that no
amount is stated thereon before forwarding the same to TD for evaluation of the
technical proposal. Technical proposal may be omitted for Registered Supplier.

9.7.3 For price proposals, only those bids complying with the technical specifications as
determined by TD, shall be opened by PD in the presence of the Auditor as long as
practicable.

9.7.4 Price proposals submitted by the bidder shall be evaluated by PD to determine

which price proposal is the most competitive and within the Approved Budget.

9.7.5 After opening the price proposal, such receipt number and receipt‐certified stamp
shall be marked on the 1st page thereof and the Auditor shall encircle the quoted
price and place his initial near the encircled quoted price.

9.8 Bid evaluation

9.8.1 Bidding Evaluation shall be conducted in two phases, namely:

(a) Technical Evaluation (Technical Specification, Characteristics, Functions, Free
Spare parts, Reputation of Manufacturer, etc.) by TD.
(b) Commercial Evaluation (Commercial Terms and Conditions, including Cost) by
PD.

9.8.2 Technical Evaluation

(a) Evaluation of the Technical Specification shall be done using a non-discretionary
”COMPLYING/NON-COMPLYING” criterion by TD, with TD specifying the

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 reasons for the bids that fail TD’s technical evaluation.
(b) TD may request further information from bidders for its evaluation, and may
request the price impact of the changes or the supplement to its technical
requirement. Any price impact received by TD shall be forwarded to PD in the
form of the original price proposal together with the results of the Technical
Evaluation.
(c) Technical evaluation may be omitted for Registered Supplier

9.8.3 The appraisal or evaluation of the quoted price in the bids shall be based on US$
currency, unless otherwise stated in the Invitation to Bid. For the evaluation, the
reference rate issued by the Central Bank of Libya on the Bid Due Date shall apply.

9.8.4 PD reserves the right to award the contract to the bidder who meets the specified
requirements and submits the most favorable offer. PD also has the option to split
the award among several acceptable bidders, whichever is in the best interest of
GECOL.

9.8.5 Assigned Procurement Staff responsible for the procurement shall make the Bid
Evaluation Table and secure the confirmation by the Manager and the Auditor
within forty-eight (48) hours after the opening of price proposal.

9.8.6 The Bid Evaluation Table shall include, among others, the following information:
(a) PR Number
(b) Project Title
(c) Quantity, Unit of Measure and Description of the materials
(d) Names of suppliers/bidders who submitted bid
(e) Unit price and total cost of each supplier
(f) Cost impact, if any
(g) Delivery Terms
(h) Payment Terms
(i) Delivery Site
(j) Other Charges (e.g. freight, brokerage, forwarding charges, etc.)
(k) Whether the bid is technically acceptable (Complying/Non-complying)
(l) Recommendation and basis of award
(m) Authorized Signatories (Person in Charge/PD Manager/Auditor)

9.8.7 The Department Manager shall approve the Bid Evaluation set by PD to examine

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 whether the bid documents are credible and whether the bidder has the capability to
comply with the bidding process.

9.9 Contract negotiation

9.9.1 PD shall evaluate only the price proposals confirmed to have passed the Technical
Evaluation made by TD.

9.9.2 Based on the bid comparison result, PD shall select a bidder with the lowest price
as the first negotiable bidder.

9.9.3 PD may conduct further negotiation with the first negotiable bidder for additional
price reduction. In case the first negotiable bidder refuses to enter into contract or
the negotiated price is still above the Approved Budget, PD shall have the right to
negotiate and enter into a contract with the 2nd lowest bidder so long as the 2nd
lowest bidder is amenable to lower its price under the Approved Budget.

9.10 Submission of details

9.10.1 PD may require the successful bidder to submit the details of the calculation of the
estimated contract amount to be reflected in the final Contract with PD.
In examining the calculation details, TD may be required to check whether the
description, technical specifications, configurations or dimensions and quantities of
the Materials, or the special terms and conditions, etc., are proper for the Contract.

9.11 Execution of Contract

9.11.1 PD shall evaluate the results of contract negotiation(s), which shall be the basis of
the terms and conditions of the Contract together with the Invitation to Bid.

9.11.2 In evaluating the technical capability of the bidders, TD shall examine and provide
to PD all technical information, technical schedule, etc., so that they can be
incorporated fully into the Contract.

9.11.3 Approval of the execution of the Contract shall be based on the following scale or
its LD equivalent

Approved Budget Approving Authority

Over US$100,000 Chairman

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 Over US$50,000 up to US$100,000 and below GM
Over US$10,000 up to US$50,000 and below Assistant GM
US$10,000 and below Manager

9.11.4 PD shall provide the Contract result and a copy of Contract Document to TD and
ICO.

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10 Article 10: RE‐BIDDING

10.1 In case the commercial evaluation results come under one of the following
circumstances, re-bidding shall be performed:
(a) When only one (1) bidder submitted the bid.
(b) When the technical bid evaluation shows no or single complying bidder.
(c) When the lowest bid qualified as acceptable by the technical bid evaluation
exceeds the Approved Budget and the bidder of the lowest bid refuses to reduce
its bid values under the Approved Budget.
(d) When PD Manager qualifies with appropriate justification that re-bidding is
beneficial to the interests of GECOL or the Project.

10.2 However, when it is considered that the Material is in urgent demand or there is no
more possible supplier or re-bidding is observed to be ineffective, Sole Source
Procurement shall be applied.

10.3 Sole Source Procurement with the following bidder shall be employed:
(a) with the one (1) bidder who submitted a complying bid in case of Article 10.1 (a)
(b) the most complying bidder upon written request from TD in case of Article 10.1
(b)
(c) the lowest bidder upon the request of TD, together with the revised Approved
Budget in case of Article 10.1 (c)

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11 Article 11: PRESSING BIDDING

11.1 Bidding qualification of supplier

Only the “Registered Supplier” shall have bidding qualification of Public Bidding.
The material could be purchased from unregistered supplier with following cases.
(a) There is not a registered supplier suitable for the item.
(b) There is no registered supplier who participate the bidding

11.2 Public bidding criteria

Public bidding shall be applicable when PR could not accommodate proper lead time.

11.3 Bidding procedure

11.3.1 Required period for Bidding Advertisement and Bid Due Date may be waived to
expedite the process.

11.3.2 Sole Source Procurement may be resorted to after a failure of bidding has occurred.

11.3.3 Bidding documents received open and/or received after the Bid due date may still
be considered under any of the following circumstances:
(a) When consideration of such bids is necessary to ensure competitiveness; or
(b) When it is advantageous to GECOL.

11.3.4 Shopping may be resorted to for procurement of Materials amounting to

US$10,000 or less per each PR.

11.4 Other procedure of Pressing Bidding shall follow the procedure of Public Bidding

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12 Article 12: SELECTIVE BIDDING

12.1 Bidding qualification of supplier

Only the “Registered Supplier” shall have bidding qualification of Selective Bidding.
The material could be purchased from unregistered supplier with following cases.
(a) There is not a registered supplier suitable for the item.
(b) There is no registered supplier who participate the bidding

12.2 Selective bidding criteria

Public Bidding shall be chosen to ensure the timely procurement of the high quality
at economical cost. It is a kind of competitive bidding among pre-selected supplier.

12.3 Selection of bidding participants

12.3.1 For Selective Bidding, the selected bidders shall:

(a) be recommended by TD
(b) comply with the mandatory or environmental requirement(s) of the laws, rules or 
regulations and other requirements by the government agencies; and
(c) have good standing or track record with the GECOL, other world reputable
Electric Utility and the like. To this end, the selected bidder should provide such
relevant information to prove its track record.

12.3.2 Regardless of Section 12.3.1 (a) above, PD may extend the list of selected bidders
based on its previous experience and supplier information.

12.3.3 There shall be at least three (3) companies selected from among the eligible
companies, unless the numbers of potential suppliers are otherwise limited, such
that the minimum number of bidders is not practically achievable.

12.3.4 PD may build up a list of qualified suppliers by utilizing the various brochures
obtained from the market research.

12.4 Request for Quotation (RFQ) and Invitation to bid

12.4.1 PD shall issue the RFQ within two (2) business days from the approval of the
Procurement Plan. The following guidelines shall be considered part of the RFQ.
(a) Statement that the price proposal and the technical proposal shall be submitted

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 separately in a sealed envelop for bidding
(b) Bid Due Date shall be at least seven (7) calendar days after the issuance of the
RFQ for Onshore Purchases, and at least fourteen (14) calendar days after the
issuance of the RFQ for Offshore Purchases, unless the needs of the material
require otherwise, in which case, the period shall be adjusted accordingly.
(c) Detailed address and communication information of the contact person shall be
indicated in the RFQ in order to secure the submission of the bid and to
accommodate possible inquiries from bidders; and
(e) Validity of the documents shall be at least sixty (60) calendar days from the date
of submission.

12.4.2 The Special Terms and Conditions specified in the PR, if any, as well as the
General Terms and Conditions of the procurement, shall be attached to the RFQ.

12.4.3 All participants to the bid shall be notified in writing of any changes to the RFQ at
least one (1) business day prior to the Bid Due Date.

12.5 Issuance of RFQ

12.5.1 PD shall send a copy of the RFQ to the bidder by fax, e-mail, courier or by hand.

12.5.2 The Procurement Staff shall also secure a confirmation from the selected bidder(s):
(a) acknowledging receipt of the RFQ; and
(b) that the selected bidder(s) intend(s) to comply with the RFQ by submitting its
(their) proposal within the due date.

12.6 Other procedure of Selective Bidding shall follow the procedure of Public Bidding.

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13 Article 13: Sole Source Procurement

13.1 Sole source procurement criteria

Sole Source Procurement shall be permissible in the following cases:
(a) When the competition is not available due to the nature of the material such that
the materials may only come from an identified exclusive supplier
(b) In the cases permitting no time for competitive bidding
(c) When the Approved Budget is not more than US$10,000
(d) When there is only one (1) eligible company capable of supplying the material
(e) Where there has been failure of re-bidding
(f) When the Management of GECOL decides the Sole Source Procurement

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14 Article 14: Shopping

14.1 Shopping criteria

Shopping shall be permissible in the following cases:
(a) Procurement of readily available off-the-shelf materials involving an amount not
exceeding US$5,000 or its LD equivalent.
(b) Procurement of ordinary/regular material involving an amount not exceeding
US$5,000 or its LD equivalent.

14.2 Shopping procedure

14.2.1 PD may request the submission of price quotations for the materials to be procured
directly from suppliers of known qualifications through e-mail, fax or any other
means of communication

14.2.2 PD shall secure quotations from three (3) or more suppliers (as may be practicable).

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15 Article 15: TERMS OF PAYMENT

15.1 Terms of payment for Offshore Purchases shall be done by [telegraphic transfer/wire
transfer of immediately available funds] and those for Onshore Purchases shall be
done by GECOL’s check or inter bank wire transfer.

15.2 However, an irrevocable letter of credit (L/C) may also be used where it is requested
by the Contractor, and both parties agreed to such mode of payment during the
contract negotiation, or both parties agreed that such mode of payment is
unavoidable, or in such other cases that may be advantageous to GECOL, as
determined by PD.

15.3 Unless otherwise specifically agreed between the parties, any and all banking
charges arising outside of the Libya in connection with the payment of the contract
amount shall be borne by the Contractors. 

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16 Article 16: DELIVERY

16.1 Unless otherwise specifically requested and agreed by the parties, the Contractor
shall deliver the Materials to the Site at its own risk and cost.

16.2 TD shall specify in its PR the mode of transportation for the requested Materials.

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17 Article 17: PAYMENT OF CONTRACT AMOUNT

17.1 Settlement of the contract amount shall be subject to the Contract.

17.2 On the basis of the invoice submitted by the supplier and in accordance with the
terms and conditions under the Contract, PD shall secure all the documents required
to determine whether the Contractor is entitled to payment. This will be done by
securing the applicable Test & Inspection Report, Material Receiving Report or other
necessary final acceptance reports from TD and ICO. Once it is determined that the
supplier is entitled to payment, the Procurement Staff shall prepare the Request for
Payment attached therein a copy of the invoice and relevant evidencing documents.
Immediately after payment has been made to the supplier, the Procurement Staff
assigned to the PR shall photocopy the RFP and the Voucher, and file it in the binder
containing all the documents by PR. This will signify the completion of the whole
transaction.

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18 Article 18: PENALTY OF DELAYED DELIVERY

18.1 In case the contractor delays fulfillment of any of the contractual obligations, PD
shall impose on the contractor penalty equivalent to 0.10% of the price of each
delayed item or unit of Materials for each day of delay from the agreed Delivery
Date. This provision must always be included in the Contract so long as it is
practicable.

18.2 The penalty shall not exceed 10% of the total amount of the Contract. However, in
case the contractor’s performance of its obligations under the Contract was delayed
due to any causes of force majeure or any reason attributable to GECOL, the
contractor shall be exempted from paying the penalty for such period. The events
that are considered force majeure shall be specifically listed in the Contract.  

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19 Article 19: COMPLETION OF CONTRACT

19.1 The Contract shall expire when all the contractual obligations are duly accomplished
by the Contractor and when the contract amount is fully paid to the Contractor.

19.2 PD may circulate a punch list to TD to secure whether the Contract is fully
accomplished by the Contractor before it confirms that the Contract is successfully
accomplished.

19.3 The expiration of the Contract shall be duly communicated to the Contractor.

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20 Article 20: WARRANTY BOND

20.1 For the procurement of Materials, the Warranty Bond shall not be required unless
otherwise specifically requested by TD. But the cost of damages and/or correction
and/or replacement during the warranty period caused by defective manufacturing
shall be borne by the supplier. The condition shall be defined in the Contract.

20.2 The Warranty Bond must be used directly by GECOL to correct any defects found
during the warranty period, in case the Contractor does not fulfill its warranty
obligation to take any corrective actions against such defects upon notice from
GECOL.

20.3 TD shall be responsible for informing the Contractor directly or via PD of such
warranty notice as and when TD finds such notice is necessary.   

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21 Article 21: TAX/VAT MONITORING
All transactions of PD shall comply with the applicable rules and regulations
implemented by the related Libyan Law.

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