CONTRACT AGREEMENT

Construction of the Tunnel Connection from Karadjordjeva

Street to the Danube Slope with Access Roads, Park Areas
and Infrastructure

POWERCHINA Република Србија

March 2023
Tunnel Connection from Karadjordjeva Street to the Danube Slope with Access Roads, Park Areas and
Infrastructure
_____________________________________________________________________________________

Contract Agreement
This Agreement is concluded on: _______________ 2023.

between:

(1) Republic of Serbia, represented by the Ministry for Construction, Transport and
Infrastructure, represented by Goran Vesić, Minister of Construction, Transport
and Infrastructure (hereinafter: “Financier”),

(2) Belgrade Land Development Public Agency, which perform Investors rights in the
name and on behalf of the Republic of Serbia, and which is represented by xxxxxx,
Director (hereinafter: "Investor" and "Employer") and

(3) Power Construction Corporation of China, Limited, based in Building 23, no. 17,
XiCui Road, Haidian District, 100036, China, represented by Mr. Yang Bo,
(hereinafter: "the Contractor" and "PowerChina").

The Financier, the Investor and the Contractor hereinafter referred in this Contract
Agreement and/or the Contract together as the "Parties" and individually as the "Party".

The Parties agree that in this Agreement words and expressions shall have the same
meaning assigned to them in the documents forming part of the Contract referred to.

Preliminary provisions
Considering that on 20th August 2009, the Government of the People's Republic of China
and the Government of the Republic of Serbia concluded the Agreement on Economic and
Technical Cooperation in the Field of Infrastructure ("Cooperation Agreement").

Considering that on 6th June 2022, PowerChina extend in the Letter of Interest for the
implementation of Construction of the Tunnel Connection from Karadjordjeva Street to the
Danube Slope with Access Roads, Park Areas and Infrastructure in Belgrade. 

Considering that PowerChina submitted the provisional bid for the implementation of the
Project on 11th March 2023 and that the consent of Belgrade Land Development Public
Agency, was given, and as such submitted to the Government Working Group for support of
monitoring of the construction of the Tunnel connection from Karadjordjeva Street to the
Danube Slope with Access Roads, Park Areas and Infrastructure and that the Working Group
gave its consent to the provisional offer of PowerChina dated on 11th March 2023.

Considering that the Government, with the conclusion xx no.: xxxxxxxxxx dated on xxxxxx.
gave consent that the Investors rights in the name and on behalf of the Republic of Serbia
for the construction works on the Tunnel connection from Karadjordjeva Street to the
Danube Slope with Access Roads, Park Areas and Infrastructure shall perform Belgrade Land
Development Public Agency, and that with the same conclusion of the Government, the
Ministry of Construction, Transport and Infrastructure was determined as Project Financier.

Power Construction Corporation of China - Republic of Serbia

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Tunnel Connection from Karadjordjeva Street to the Danube Slope with Access Roads, Park Areas and
Infrastructure
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The Parties agreed as follows:

Article 1
1.1 In this Agreement the words and expressions shall have the same meaning as
specifically assigned to them in the Contract Documents to which they refer.

1.2 This Contract Agreement is based on the document "Contract Terms for Plant and
Design - Build for Electrical and Mechanical Works and for Building and Engineering
Works Designed by Contractor", published on the Website http://www.fidic.org by
the International Federation of Consulting Engineers ISBN 2-88432-023-7, First
Edition 1999, known as the "Yellow Book".

1.3 The following documents are made, read and interpreted as part of this Agreement.

The order of priority of the documents is as follows:

1. This Contract Agreement

2. Letter of Tender dated on xxxxxx

3. Appendix to Tender

4. Particular Conditions

5. General Conditions – FIDIC conditions of contract for Plant and Design and Built for
Plant and Design - Build for Electrical and Mechanical Works and for Building and
Engineering Works Designed by Contractor, published by International Federation of
Consulting Engineers ISBN 2-88432-023-7, First Edition from 1999, better known as
“Yellow Book”.

6. Employers Requirements

7. All other documents that are part of the Contract (if any)

1.4 For the purposes of interpretation, the priority of the documents is in accordance with
the order from Article 1.3.

Article 2
2.1 For all payments approved by the Investor, and executed by the Financier towards the
Contractor in accordance with this Contract, the Contractor agrees to perform the design,
execution and completion of works and eliminate defects thereof.

2.2 The Investor agrees to pay the Contractor the Contract Price for the design, execution
and completion of works and elimination of their defects, and the Provisional Accepted
Contract Amount is [XXX EUR] (XXX euros)which is based on IDR provided by the Employer .
The Provisional Accepted Contract Amount shall be adjusted after the Contractor submits
modified offer when he receives the approved preliminary design from the Investor and
shall be subject of Addendum of this Agreement.

2.3 The Contractor shall not be liable for the costs of customs and VAT applicable to the

Power Construction Corporation of China - Republic of Serbia

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Tunnel Connection from Karadjordjeva Street to the Danube Slope with Access Roads, Park Areas and
Infrastructure
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Works, this Agreement and/or the Contract (other than those relating to the Contractor's
workers and staff), which are valid in and/or imposed by the State authorities of the
Republic of Serbia. However, the Contractor shall be responsible for all fees, costs, duties
charges (including but not limited to customs) and taxes (including but not limited to VAT)
applicable to the Works, this Agreement and/or the Contract outside the Republic of Serbia
and those related to the works and staff of the Contractor outside the Republic of Serbia.

2.5 The total contractual penalty shall not exceed five percent (5%) of the Contract price.

Article 3
3.1 Entry into full force of the Contract Agreement and the rights, obligations and
responsibilities of the Parties are subject to and depends on the written confirmation of the
Investor sent to the Contractor that all of the following conditions ("Preconditions") are
fully met:

а) This Agreement shall be signed by the authorized representatives of the Parties and
adopted by the Government of the Republic of Serbia.

b) The Republic of Serbia, through the Ministry of Finance and the Financing
Institution, shall conclude the Financial Arrangement, and with the entry into force of
the Financial Arrangement, the preconditions for the entry into force of this Contractual
Agreement are fulfilled.

3.2 The Parties will make all reasonable efforts within 6 months from the signing of the
Contract Agreement, to meet the preconditions from the Article 3.1 above. Each Party shall
have the right to terminate this Contract Agreement by giving written notice to the other
Party in the event that this Agreement does not enter into force within 18 months from the
Date of Signature, and neither Party has the right to claim damages resulting from such
termination. The Parties may agree to extend this period by signing an Annex to the
Contract Agreement.

3.3 The Investor shall immediately notify the Contractor in writing of the date of fulfillment
of the Preconditions. The Contract Agreement will enter into force on the date of issuance
of the notice.

3.4 The Parties confirm that the preconditions are inserted in favor of the Investor and the
Contractor and that the abdication of the Preconditions is possible only by agreement of the
Parties.

Article 4
The Deadline for Completion is [36] (thirty-six) months from the Date of Commencement of
Works.

The warranty period for elimination of defects is two years from the day of handover of
Works.

Article 5
This Contract Agreement shall be signed by the Parties in six (6) identical copies in Serbian

Power Construction Corporation of China - Republic of Serbia

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Tunnel Connection from Karadjordjeva Street to the Danube Slope with Access Roads, Park Areas and
Infrastructure
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and English language, of which each Party shall retain two. In the case of any discrepancy
between Serbian and English, the English shall prevail.

Article 6
This Contract Agreement is signed in accordance with the laws of the Republic of Serbia.

Signed by: Signed by:

____________________________ ______________________________

[Goran Vesić, Minister for [Yang Bo, Authorized Representative]

Contrcuction, Transport and Infrastructure]

For and in the name of Financier For and in the name of Contractor

Name: Ministry for Construction, Transport Name: Power Construction Corporation of China
and Infrastructure

Address: 11 Nemanjina, 11000 Belgrade, Address: Building 23, No. 17, Xicui Road,
Republic of Serbia Haidian District , Beijing 100036, China

Date: ________________________________ Date: _________________________________

Signed by:

____________________________

[xxxxxxxxx, Director of Belgrade Land

Development Public Agency]

For and in the name of Investor and Employer

Name:Belgrade Land Development Public

Agency

Address: 84 Njegoševa, 11000 Belgrade,

Republic of Serbia

Date:

________________________________

Power Construction Corporation of China - Republic of Serbia

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