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Photo of AfDB building in Abidjan above by Citizen59


AFRICAN DEVELOPMENT BANK RENEWS AND EXPANDS AGREEMENT TO USE FIDIC STANDARD
CONTRACTS FOR A FURTHER FIVE YEARS

 * Report this article
   

FIDIC - International Federation of Consulting Engineers


FIDIC - INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

PROUDLY REPRESENTING OVER 1 MILLION ENGINEERS!

Published Dec 16, 2024
+ Follow

FIDIC has renewed and expanded a major agreement with the African Development
Bank Group that will now see the multilateral development bank employ ten FIDIC
standard contracts for the next five years. The bank is the leading source for
development financing in Africa and is committed to supporting inclusive and
sustainable growth and good governance across the continent.

Under the terms of the agreement, FIDIC has granted the bank a non-exclusive
license to refer to ten major FIDIC contracts (see list in notes below) for
projects they finance and the documents will be used in the bank’s main standard
bidding documents. The list of contracts now includes reprints of the 2022 FIDIC
Rainbow Suite, the latest FIDIC Green Book 2021 and the reprint of Emerald Book
2023 contract for Underground Works and the Dredgers contract 2016.

The suite of contracts covered by the agreement with FIDIC covers a wide range
of international construction and infrastructure work. The Bank’s initiative
represents a further key endorsement for FIDIC contracts from a major
international funding organisation, following similar agreements signed with the
World Bank and many other multilateral development banks around the world.

FIDIC president Catherine Karakatsanis MESc PEng FCAE ICD.D LL.D D.Eng said: “I
am delighted that the AfDB has renewed and expanded its agreement with FIDIC to
be used as an accepted form of contract for use with their standard bidding
documents. As well as this being another major development for FIDIC, we hope
that this move will create more certainty in the market, as by facilitating the
use of FIDIC contacts on major projects the AfDB is saying that they endorse the
fair and balanced approach that these documents offer to parties on major
construction contracts.


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“We know that the certainty FIDIC contracts bring makes it easier to get
projects underway, as many of the common commercial risks are clearly addressed
in the contracts and all parties understand their obligations and
responsibilities. FIDIC looks forward to the AfDB’s continuing endorsement of
these contracts providing additional reassurance to the financial, institutional
and private equity investors operating in the global market to adopt the use of
FIDIC standard procurement contracts as an effective tool to mitigate the risks
associated with major infrastructure projects and assets.”

Commenting on the signing of the agreement, Frank Mvula , director, fiduciary
and inspection department at the African Development Bank, said: “We are glad to
have concluded this agreement that will enable us to incorporate FIDIC contracts
in our main standard bidding documents. There is no doubt that the use of the
internationally recognised FIDIC contracts is a step towards enhancing equity
and economy, as well as efficient and effective contract management, as
emphasised under the bank’s procurement framework. We look forward to working
with FIDIC for another five years.”

The ten FIDIC contract documents covered by the FIDIC/AfDB agreement are as
follows: -

 1.  Conditions of Contract for Construction for Building and Engineering Works
     Designed by the Employer (“Red book”), Second edition 2017, Reprinted 2022
     with amendments;
 2.  Conditions of Contract for Plant & Design-Build for Electrical & Mechanical
     Plant & for Building & Engineering Works Designed by the Contractor
     (“Yellow book”), Second edition 2017, Reprinted 2022 with amendments;
 3.  Conditions of Contract for EPC Turnkey Projects (Silver book), Second
     Edition, 2017), Reprinted 2022 with amendments;
 4.  Client/Consultant Model Services Agreement (”White book”), Fifth Edition
     2017;
 5.  Conditions of Contract for Design, Build and Operate Projects (“Gold book”)
     First Edition 2008;
 6.  The Short Form of Contract (“Green Book”), First Edition, 1999;
 7.  Conditions of Contract for Construction for Building and Engineering Works
     Designed by the Employer (“Red book”), First edition 1999;
 8.  The Short Form of Contract (“Green Book”), Second Edition, 2021;
 9.  Conditions of Contract for Underground Works (Emerald book), First Edition,
     2019, Reprinted in 2023 with amendments; and
 10. Form of Contract for Dredging and Reclamation Works, Second Edition, 2016.



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