CONTRACT AGREEMENT

BETWEEN

Ethio Rain Irrigation Systems PLC

AND
MWA PLASTIC INDUSTY PLC
FOR
Manufacturing Of HDPE PIPE
(OD250 PN 16 and OD 125 PN 16)

DBU WSP Project

July 12, 2021

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 CONTRACT AGREEMENT

This contract agreement is made on 12th day of July 2019 in Addis Ababa, Ethiopia
between Ethio Rain Irrigation Systems Tel 251-911-40 96 41 or 0912 88 28
81,Kirkos sub city Wereda 02 house no 172/506-C Addis Ababa (hereinafter called
“The Employer”) on one part.
And
MWA PLASTIC INDUSTRY PLC Tel 251-11-1106-57 orTel 251-903-888-444
Akaki kality Subciry werda 10 having its manufacturing facility around Klinto Industrile
park House No new Addis Ababa (Hereinafter called “Manufacturer”) on the other
part.

WHERE AS, the Manufacturer has agreed to undertake Manufacturing of HDPE PIPE
OD 250 PN 16 and HDPE PIPE OD 125 PN 16 As per the international ISO 4427
standard, terms and as per conditions of the contract document enumerated in Clause
2 below; NOW THEREFORE, the parties agree as follows:

1. GENERAL PROVISIONS
1.1. In this agreement works and expression shall have the same meanings as are
respectively assigned to them in the standard conditions of Contract and as
specifically amended by special conditions of contract referred in clause 2
below.

1.2. For the considerations hereinafter mentioned the Manufacturer will upon and
subject to the conditions hereto annexed execute and complete the works
shown upon the said ISO 4427 standards and described or referred to in the
said Bill of Quantities, specification and the said conditions.

2. CONTRACT DOCUMENTS

It is agreed and understood that the following documents:

a. This agreement and attached documents
b. Designs and drawings issued by the Employer
c. Signed priced Bill of Quantities and Specification
d. Terms of Reference.
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shall be known as “The Contract Documents” and represent the agreement between
the EMPLOYER and the MANUFACTURER and that there is no other agreement or
any other documents relating to or in any way affecting this agreement at this stage
and that these documents supersede all other agreements and drawings prior to the
date hereof.

3. AGREEMENT CONSIDERATION
In consideration of the payments to be made by the EMPLOYER the
MANUFACTURER here by covenants with the EMPLOYER to execute and
complete the works and remedy any defects there in conformity of ISO
standard in all respects with the provisions of the Contract and the EMPLOYER
hereby covenants to pay the MANUFACTURER in consideration of the execution
and completion of the works and remedying defects there in; the total contract
price of Birr 7,383,905.28 (Seven Million Three Hundred Eighty Three
Thousand Nine Hundred five and 28/100) including Value Added Tax as
per the PFI attached and all the terms prescribed by the Contract Documents.

3.1. Major works of the Manufacturer.

A) HDPE Pipe PE 100 Manufacturing : OD 250 PN 16 in accordance with ISO

4427 with min thickness at any cross section not less than 22.7 mm from
virgin PE 100 material quality standard as per of ES ISO 1183-2 , ES
ISO1133-1 , ES ISO 6964 , ES ISO 18553 will be applicable for raw material
and ES ISO 4427-2:2007, ES ISO 3126:2005 will be applicable for production
of HDPE for a total length of 2900 m
B) HDPE Pipe PE 100 OD 125 PN 16 wall thickness 11.4, 780 m all standards in
section A shall apply.

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Table of Standards Applicable for the contract

ISO 4427 High density polyethylene (HDPE) pipes and fitting

ISO 12176-1:98 Plastics pipes and fittings – Equipment for fusion jointing polyethylene
systems – Part 1 : Butt Fusion.

ISO 13953:1995 Polyethylene pipes and fittings – Determination of tensile strength of test piece
from butt fused joint.

ISO 13954:1997 pipes and fittings – Peel de-cohesion test for polyethylene (PE) electro-fusion
assemblies of nominal outside diameter greater than or equal to 90mm.

3.2. Quality Assurance

The Manufacturer undertakes to perform the inspection and testing of the Pipes in
accordance to the test standards submitted in the material submittal Annex 2 hereof.
The Employer may assign a representative for the inspection of the Pipes during all
the manufacture process. Such representative shall be authorized to inspect the
manufacturing process and quality assurance of the Pipes, in the Supplier's premises
or place of manufacture or elsewhere and/or perform other examinations and tests
required by the employer, with or without the manufacturer attendance. The
inspection shall not derogate from any of the Manufacturer’s undertakings under the
Contract. Should it become apparent to the representative, at the conclusion of the
tests, that an Incompatibility exists pertaining to the Pipes; the Manufacturer shall
bear all reasonable costs.
Third party Inspection and testing will be conducted in accredited laboratories to
assure all in house inspections, tests and certifications shall be performed by a
Certified Inspection Agency,. "Certified Inspection Agency" shall mean: a third party,
non-related certified national inspection agency to be selected by the employer from
the list of Approved Certified

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 The Pipes shall be new (and not refurbished in any way), unused, free from defects
and any Incompatibility and of the highest quality, materials and craftsmanship; shall
conform to all standards detailed, including by reference only, in the Annex 1 of ISO
Standards and Specifications; and does not and shall not violate the Laws. The
Supplier shall not make any modification or alteration in the Pipes and/or the
Specifications

3.3. Warranty of HDPE Pipe

The warranty period for the Pipes and any other item supplied to the Company by
the Supplier shall extend for 18 months after the date on which the Pipes were
placed in use or operation by the Company or 36 months from the date of actual
delivery of the Pipes to the delivery destination specified in the Purchase Order,
whatever occurs first (the "Warranty Period").
If any of the Pipes do not comply with the provisions of the Contract or are found
defective or if any defect or fault originating in connection with the design, materials
or workmanship, of any of the Pipes arise at any time within the Warranty Period,
Supplier shall at his own cost promptly make such alterations, repairs and/or
replacement, including packing, transportation, and retesting, whosesoever located,
as are necessary so that said item conforms to the provisions of the Contract and
fulfills the preceding warranties to Company's entire satisfaction; Supplier shall in
addition reimburse the Company for the following costs and expenses incurred in
completing the necessary remedial and repair works: (a) seeking and finding of
defective Pipes; (b) excavation and removal of defective Pipes; (c) transportation of
defective Pipes and replacement Pipes; (d) purchase and installation of replacement
Pipes; (e) testing of replacement Pipes.
.The employer shall take for full responsibility to transport safely with the right vehicles from the
factory premises and t for unloading, placement and on site welding and all safety precautions doing
other activities.

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4. Duration of the work

The Manufacturer agrees to complete the work within 25 (Twenty Five) Days following
contract signing.
. All pipes PN16 OD125 &250mm are to be cut at 12m
5. CONTRACT ADMINISTRATION

Contract will be administrate between parties and their legal representatives.

6. TERMS OF PAYMENT

6.1. Terms of payment for the given services, to the Manufacturer will be as
follows.
The total contract will have 3 sections and batch of production.

 1st payment: 15% of the total contract 1,107,585.79 (One Million One
hundred Seven thousand five hundred Eighty Five and 79/100 only)
-Advance is paid within 2 days after signing the contract, for the first section of
contract& equivalent to PN16 OD 250mm, 464 meter
 2nd Payment 15% of the total contract amount after receiving the first batch
of pipe production. Which is to be paid within 2 days after first batch deliver at
factory. The amount is equivalent to PN16 OD 250 mm,464 meter
 3rd Payment 15 % of contract amount for ordering the second batch of
production. Which is to be paid within 2 days after First batch deliver at factory.
The amount equivalent is PN16 OD 250 mm,464 meter
 4th payment 15 % of contract amount after receiving the second batch of
production. Which is to paid within 2 days after Second batch deliver at factory.
The amount is equivalent to PN16 OD 250 mm,464 meter
 5th Payment 15 % of contract amount for ordering the third batch of
production. Which is to paid within 2 days after Second batch deliver at factory.
The amount is equivalent which is PN16 OD 250 mm,464 meter
 Final Payment 25 % of contract amount after receiving the whole batch of
production. Which is to paid within 2 days after Third batch deliver at factory &
equivalent to PN16 OD 250MM, 580 meter and PN16 OD 125 mm 780 meter.

7. Dispute and Arbitration

7.1. It is agreed and understood that the said contract document shall be
interpreted according to the Ethiopian Law and if any dispute arises between
parties to this agreement, both parties shall try their best to settle it amicably.
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 7.2. The validity, interpretation and execution of this contract agreement, each
clause or part thereof are governed by the civil code of Ethiopia.

7.3. Either party for decision shall submit any dispute that may arise between the
Employer and the Manufacturer regarding the execution of this contract shall
be resolved by arbitration as per the provisions of the civil code of Ethiopia.

8. Force Majeure

10.1. Force majeure is said to exist when an occurrence which either party not
normally foresee at the time of signature of this Agreement or which
absolutely prevents either party from performing their obligations takes
places as defined under Article 1792 of the Ethiopian civil code.

10.2. The case of force majeure shall be those listed in Article 1793 of the
Ethiopian civil code.

10.3. The party requiring postponement of obligations to perform the Agreement

by reason of force majeure shall notify the other party by Fax or in person
immediately to be followed by a written notification of the occurrence of the
situation.
9. Warranty on installation
As per article 3

10. Starting time

The starting date of the Manufacturing work shall be in 3 days after the first
payment, as in clause 6, is settled.

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14. Effective Date

14.1 This agreement shall have a binding effect on both parties as of the date
it is signed by their duly authorized representatives.
14.2 IN WITNESS WHEROF the undersigned, being duly authorized, have
signed this agreement, on behalf of the parties hereto, at the place on the
day and year written below.

For the Employer For the Manufacturer

Name Name
Title Title
Signature Signature

Witnesses
Name Signature

Name Signature

Name Signature

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Anex1: ISO 44 27 -2007 Standard

Annex 2 : Material Submittal specifications

Annex 3: proforma Invoice