Major development bank renews and expands key agreement to use FIDIC contracts

05 Jul 2023

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FIDIC has renewed a major agreement with the European Bank for Reconstruction and Development (EBRD) that will see the international funding organisation continue to use FIDIC’s major standard construction contracts and adopt FIDIC’s new publications for the next five years.

The new five-year agreement supersedes the previous FIDIC-EBRD agreement signed in 2019 and updates the 2017 FIDIC suite of contracts to the 2022 reprints and adds three new contracts – the FIDIC Green Book 2021, the FIDIC Emerald Book 2019 for underground works and the FIDIC Blue-Green Book 2016 for dredging and reclamation works.

Under the terms of the agreement, FIDIC has granted EBRD a non-exclusive licence to refer to the 12 major FIDIC contracts (see list in notes below) for projects they finance and the documents will be used as part of the bank’s standard bidding documents. The contracts cover a wide range of international construction and infrastructure work and the EBRD’s continued use of the FIDIC documents is another major vote of confidence for FIDIC contracts from an international funding organisation.

FIDIC chief executive Dr Nelson Ogunshakin OBE said: “We are delighted that the EBRD has renewed its agreement with FIDIC and welcomed the new reprints of our contracts as well as three further forms to be used as a key part of their standard bidding documents to be used on all their current and future infrastructure investment projects. The EBRD’s move will create more certainty in the market as by adopting the FIDIC standard forms of contracts on its projects the bank is endorsing the fair and balanced approach that these documents offer to parties on major infrastructure and construction investment contracts.

“By continuing this partnership with the EBRD, we hope to provide additional assurance to 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 international construction and infrastructure projects. This positive move by the EBRD also shows continued confidence in FIDIC standard contracts and the robust processes we use in their development.”

Commenting on the signing of the agreement, Jan Jackholt, the director for the procurement policy and advisory department at the EBRD, said: “The signing of this licence agreement is not only a way to broaden the use of the FIDIC rainbow suit of contracts, but also a testament to a broader cooperation with FIDIC and its members.”

The new agreement was signed by senior representatives of FIDIC and the EBRD at a ceremony in London on 28 June 2023 (see image above). The positive move by the EBRD is a significant one as FIDIC looks to renew other licence agreements with a number of multilateral development banks over the coming 12 months.

The 12 FIDIC contract documents covered by the FIDIC/EBRD agreement are as follows: -

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

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