14 FIDIC Contract Users’ Newsletter
A licence for fair contracting The number and range of licences signed by leading organisations to use FIDIC contracts shows that these industry standard documents are becoming ever more popular around the global construction sector. FIDIC standard forms of contract are increasingly becoming the benchmark for global construction contracts as clients are attracted by the fair and balanced approach they take, especially in the area of project risk. The number of organisations that have signed licence agreements with FIDIC to use our contracts is testament to the high regard in which the documents are held and only serves to raise their profile even more. One such organisation is the International Labour Organization which has recently signed a licence for its Employment Intensive Infrastructure Programme in Lebanon (EIIP) to use the FIDIC Short Form of Contract (Green Book 1999) for two years. The United Nations UNOPS agency, which provides infrastructure, procurement and project management services for a more sustainable world, has signed a bespoke licence for four FIDIC documents to create multiple bespoke contracts for five years. The contracts they will use include the FIDIC Conditions of Contract for Construction Contract (Red Book) 1999 Edition, FIDIC Conditions of Contract for Plant and Design-Build (Yellow Book) 1999 Edition, the FIDIC Short Form of Contract (Green Book) 1999 Edition and the FIDIC Client/ Consultant Model Services Agreement (White Book) 2006 Edition. FIDIC recently granted another UN agency, IFAD, a non-exclusive licence to refer to six major FIDIC contracts for projects they finance and the documents will be used as part of
Issue 7 - July 2021
From site...
the fund’s standard bidding documents. The contracts mainly include the 2017 Second edition FIDIC contracts, which cover a wide range ...to solar of international construction and infrastructure work and IFAD’s move to use the documents represents a major endorsement for the contracts from an international funding organisation. This is a significant move from a key UN agency. Another key organisation that has Scatec has chosen FIDIC contracts to help deliver the150 MW Sukkur solar plant project portfolio in Sindh, Pakistan. renewed its ongoing licence to use FIDIC to be $11m. The project has a total contracts is IKEA who have been using estimated capex of $100m with a debt FIDIC contracts since 2015. They leverage of 75%. recently bought two watermarked FIDIC has signed dozens of licence collections for a number of key FIDIC agreements with organisations all over contracts and one bespoke licence for the work and many more are in the a project in Malaysia. Another vote pipeline. Commenting on this success, of confidence for our contracts from a FIDIC’s international client manager leading global brand. Ieva Liaugaude, said: “The post-Covid Elsewhere, FIDIC has signed 16 recovery is still very much underway bespoke licenses with renewable and now more than ever FIDIC is ready power producer Scatec for its 150 MW to offer well-structured and balanced Sukkur solar plant project portfolio contracts that are well known and in Sindh, Pakistan. Working for the supported by key funding agencies. National Energy Power Regulatory We are pleased to enjoy the trust Authority, Scatec and its local partner, invested in these ongoing partnerships Nizam Energy, are working on the and delighted to have established finance and construction of the project. new affiliations with prominent Scatec will hold 75% of the equity, stakeholders.” with Nizam holding the remaining 25% and annual revenues are expected
