FIDIC and the International Fund for Agricultural Development (IFAD) have renewed and expanded their collaboration with the signature of an agreement that will see the international funding organisation use eight FIDIC standard contracts for its funded projects over the next five years. 

IFAD is an international financial institution and a specialised agency of the United Nations that works to address poverty and hunger in rural areas of developing countries. It is the only multilateral development organisation that focuses solely on rural economies and food security. IFAD is involved in over 200 projects across nearly 100 countries. 

Under the terms of the agreement, FIDIC has granted IFAD a non-exclusive licence to refer to the eight major FIDIC contracts (see list in notes below) for projects they finance and the documents will be used as part of the fund’s standard bidding documents. The contracts cover a wide range of international construction and infrastructure work and IFAD’s move in renewing the agreement represents another major endorsement for FIDIC’s contracts from an international funding organisation. 

FIDIC CEO Susanna Zammataro said: “We are delighted to see the collaboration with IFAD growing.This renewal and expanded scope sends an important signal to the market: that choosing FIDIC contracts means bringing a fair and balanced approach into major construction and infrastructure work and the clarity needed for a sector that underpins so much of the world's development.  

“This enhanced use of FIDIC contracts by a UN agency like IFAD is another testimony for financial, institutional and private equity investors that adopting FIDIC standard procurement contracts is an effective way to manage the risks associated with construction and infrastructure projects.” 

Enzo de Laurentiis, chief procurement and financial management officer at IFAD, said: “We are pleased to continue our long-standing collaboration with FIDIC. The use of internationally recognised contract standards helps strengthen project delivery and supports IFAD’s mission of investing in resilient rural development.” 

Notes

The eight FIDIC contract documents covered by the FIDIC/IFAD agreement are as follows: -

• Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer (“Red book”), Second edition 2017, Reprinted 2022 with amendments;
• 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;
• Conditions of Contract for EPC Turnkey Projects (Silver book), Second Edition, 2017, Reprinted 2022 with amendments;
• Client/Consultant Model Services Agreement (”White book”), Fifth Edition 2017;
• Conditions of Contract for Design, Build and Operate Projects (“Gold book”) First Edition 2008;
• The Short Form of Contract (“Green book”), First Edition 1999;
• The Short Form of Contract (“Green book”), Second Edition 2021; and
• Conditions of Contract for Underground Works (“Emerald book”), First Edition 2019, Reprinted in 2023 with amendments.

Photo credit: IFAD