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Saudi Electricity Company

SCHEDULE "A"

CONTRACT NO.

30621090/00

final certificates from the Directorate of Zakah and Income Tax as well as the
General Organization of Social Insurance (GOSI) which confirm that all
applicable Zakah and CONTRACTOR income tax obligations have been paid by
CONTRACTOR through the previous Hijra year period.
These certificates shalt be delivered to:
The Manager
Controller's Department
Eastern Operating Area
Saudi Electricity Company
Room 2-215E, SEC-EOA Headquarters
P. 0. Box 5190, Dammam 31422
Kingdom of Saudi Arabia

31.

Taxes

31.1

Payment of Taxes

CONTRACTOR, or CONTRACTOR's personnel, shall pay all taxes, penalties,

customs duties, fees, levies, assessments and charges required or levied by
the Government of the Kingdom of Saudi Arabia and the government of any
country, or any political subdivision thereof, arising out of or relating to the
performance of the WORK, without claim for reimbursement from COMPANY.
31.2

Withholding Tax

Pursuant to pertinent provisions of the Income Tax Law of the Kingdom of

Saudi Arabia issued under Royal Decree No. M/1 dated 15/1/1425, an income
tax will be deducted if the CONTRACTOR is considered as a Non-Resident in the
Kingdom of Saudi Arabia (as defined in Article 3 of the Income Tax Law), in
accordance with Paragraph 4.11 of Schedule "C" of this CONTRACT.
32.

Bank Guarantee

32.1

Amount and Validity

Jo.z:?;r

CON?;CTOR has presente,d Bank Guarantee #

, dated /.:1 " 2t:X~7
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issue by ~as.F~'ank, for
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Saudi Riyals, representing five
percent "'(5%) of the CONTRACT Price, as guarantee for CONTRACTOR's
performance of the WORK. CONTRACTOR undertakes to keep the bank
guarantee valid throughout the CONTRACT Term and for twenty-four (24)
Gregorian months following the actual Preliminary Acceptance of all PROJECT
PORTIONS. Upon written request of the CONTRACTOR, the value of the Bank
Guarantee may be reduced at the end of the Warranty Period of relevant
PROJECT PORTION(S) by an amount equal to five percent (5%) of the
CONTRACT PRICE of the relevant PROJECT PORTION{S) or to an amount
judged by COMPANY to be adequate to cover the value of any uncompleted
portion of the WORK or the corrected/rectified WORK as mentioned in
Paragraphs 18.2 and 18.6 of this Schedule "A".
32.2

Extension of Bank Guarantee

In the event that the CONTRACTOR's Bank Guarantee needs to be extended,

as a result of delayed Preliminary Acceptance due to any reason whatsoever,
CONTRACTOR shall, no later than seven (7) days after the actual Preliminary

A-49
Construction of Qurayyah Open Cycle Power Plant- Schedule A

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Saudi Electricity Company

SCHEDULE"A"

CONTRACT NO.

30621090/00

Acceptance, submit to COMPANY an extension of the Bank Guarantee covering

the entire warranty period.
32.3

Failure by CONTRACTOR to Extend its Bank Guarantee

Should CONTRACTOR fail to extend the validity of its Bank Guarant~e as

required, COMPANY shall draw down the full amount of the Bank Guarantee.
The CONTRACTOR shall be provided in any event, thirty (30) calendar days
advance written notice during which time the CONTRACTOR must commence to
cure the default to avoid the COMPANY drawing down on the Bank Guarantee.
After expiration of the warranty period specified in Paragraph 18, Schedule "A"
of the CONTRACT and if the COMPANY has drawn down the Bank Guarantee,
then COMPANY shall refund to CONTRACTOR that amount of the Bank
Guarantee which was drawn down, less that amount which COMPANY, in its full
and absolute discretion, deems necessary to retain In order to meet the
CONTRACTOR's warranty obligations.

33.

Validitv of Commercial Registration

CONTRACTOR shall ensure that Its Commercial Registration (CR) or License is valid
throughout the entire duration of the CONTRACT and any extension(s) thereof. In the
event that its CR or License expires during the duration of the CONTRACT and any
extenslon(s) thereof, CONTRACTOR shafl submit to COMPANY a copy of its application
form or proof for renewal prior to the expiration of its CR or License and shall submit
its new or renewed CR or License within forty-five (45) days after the expiration of its
previous CR or License. Failure by CONTRACTOR to submit such document may cause
COMPANY to withhold its invoices until its new or renewed CR or License is submitted
to COMPANY.
34.

CONTBACT language

This Schedule "A" has not been translated into Arabic.

agree to be bound by the English text.
35.

CONTRACTOR and COMPANY

General Provisions

The CONTRACT supersedes all previous agreements, correspondence and

understandings between the parties concerning the WORK, and constitutes their entire
agreement concerning the WORK to be performed hereunder. No promise, agreement,
representation or modification to the CONTRACT shall be of any force or effect
between the parties, unless set forth or provided for in the CONTRACT, a CHANGE
ORDER or an AMENDMENT.

36.

Packing and Deliverv

Afl equipment must be packed in accordance with COMPANY general packing

specification No. IO No. 0011 (6/82) which by this reference is made part of this
CONTRACT. All shipments and deliveries shall be in strict accordance with the
requirements of the CONTRACT.
37.

Protection Against Infringement

CONTRACTOR warrants that the WORK does not infringe any patent rights, copyrights,
trademarks, or trade secrets owned or controlled by any Third Party, either in the
country of manufacture or use. CONTRACTOR agrees to defend, indemnify and hold
COMPANY harmless against any and all liability, loss or expense arising out of patent,
copyright, trademark infringement or trade secret misappropriation claim relating to
the WORK.

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Construction of Qurayyah Open Cycle Power Plant- Schedule A

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