Crude Oil and Pet Products

Standard Bidding Documents
Procurement of Crude
Oil/Petroleum Products
The World Bank
Trial Edition
May 1997
i
Preface
This Trial Edition of the Standard Bidding Documents (SBD) have been prepared by the
World Bank for use by borrowers and their implementing agencies in the procurement of
crude oil and petroleum products through International Competitive Bidding (ICB). In
accordance with the provisions of the World Bank Guidelines: Procurement under IBRD
Loans and IDA Credits, January 1995, revised January and August 1996 edition, the use of
SBDs prepared by the Bank is mandatory for all contracts financed by the Bank. Borrowers
will be required to follow the provisions of these SBDs for proposed contracts for the supply
of crude oil and petroleum products, once the trial period is over and the final edition is
published.
In order to simplify the preparation of bidding documents for each procurement, the SBD
groups the provisions which are intended to be used unchanged in Section II, Instructions to
Bidders, and in Section IV, General Conditions of Contract. Data and provisions specific to
each procurement and contract should be included in Section III, Bid Data Sheet; Section V,
Special Conditions of Contract; Section VI, Specification for Crude Oil/Products & Schedule
of Requirements. The forms to be used are provided in Section I, Invitation for Bids, and in
section VII Sample Forms.
Care should be taken to check the relevance of the provisions of the SBD against the
requirements of the specific products to be procured. The following general directions should
be observed when using the documents:
(a) Specific details, such as the “name of the Purchaser” and “address for bid submission”
should be furnished in the Invitation for Bids, in the Bid Data Sheet, and in the Special
Conditions of Contract. The final documents should contain neither blank spaces nor options;
(b) Amendments, if any, to the Instructions to Bidders and to the General Conditions of
Contract should be made through the Bid Data Sheet and the Special Conditions of Contract,
respectively;
(c) Clauses included in the Special Conditions of Contract are illustrative of the provisions
that should be drafted specifically by the Purchaser for each procurement;
(d) The forms provided in Section VII should be completed by the Bidder or the Supplier;
the footnotes in these forms should remain, since they contain instructions which the Bidder or
the Supplier should follow.
As this is a Trial Edition, any Borrower or Employer using this SBD who is unclear as to the
requirements or intentions of the Bank or otherwise finds any ambiguities or discrepancies in
the Documents is invited to seek clarification from the Bank during the trial period.
Furthermore, the Bank welcomes any feedback or experiences from the use of these Bidding
Documents, from bidders and from others as well.
Any feedback or queries should be addressed to:

ii
Procurement Policy and Coordination Unit

Operations Policy Department
The World Bank
1818 H Street, N.W.
Washington, D.C. 20433
U.S.A.
iii
Contents
Section I. Invitation for Bids

..........................................................................................................................................
1
Notes on the Invitation for Bids
..............................................................................................................................
1
Section II. Instructions to Bidders

..........................................................................................................................................
5
Notes on the Instructions to Bidders
..............................................................................................................................
5
Table of Clauses
..............................................................................................................................
6
Section III. Bid Data Sheet

..........................................................................................................................................
19
Notes on the Bid Data Sheet
..............................................................................................................................
19
Section IV. General Conditions of Contract

..........................................................................................................................................
23
Notes on the General Conditions of Contract
..............................................................................................................................
23
Table of Clauses
..............................................................................................................................
24
Section V. Special Conditions of Contract

..........................................................................................................................................
35
Notes on the Special Conditions of Contract
..............................................................................................................................
35
Table of Clauses
..............................................................................................................................
36
iv
Section VI. Specifications and Schedule of Requirements

..........................................................................................................................................
41
Section VII. Sample Forms

..........................................................................................................................................
43
Notes on the Sample Forms
..............................................................................................................................
43
Sample Forms
..............................................................................................................................
44
1. Bid Form and Price Schedules
..............................................................................................................................
45
2. Bid Security Form
..............................................................................................................................
47
3. Contract Form
..............................................................................................................................
48
4. Performance Security Form
..............................................................................................................................
50
5. Purchaser’s Notice of Award to Successful Bidder
..............................................................................................................................
51
6. Seller’s Acknowledgment of Notice of Award
..............................................................................................................................
52
7. Information on Discharge Port/Ports
..............................................................................................................................
53
Section VIII. Eligibility for the Provision of Goods, Works, and Services in Bank-
Financed Procurement
......................................................................................................................................................
55
Annex. Technical Note

......................................................................................................................................................
57
Notes on theTechnical Notes
..............................................................................................................................
57
1
Section I. Invitation for Bids
Notes on the Invitation for Bids

The Invitation for Bids (IFB) (see paragraph 2.8 of Guidelines: Procurement under IBRD
Loans and IDA Credits, dated January 1995 revised January and August 1996) shall be
issued as
(a) an advertisement in at least one newspaper of general circulation in the Borrower’s

country and in the official gazette, if any;
(b) an advertisement in Development Business and/or well-known technical magazines,

for large, specialized, or important contracts;
(c) a letter addressed to interested bidders who, following the publication of the General
Procurement Notice, have expressed interest in bidding for the goods for which the
invitation is issued; and
(d) optionally, a circular to consular or diplomatic representatives of countries with

potential bidders.
The Invitation for Bids provides information that enables potential bidders to decide
whether to participate. Apart from the essential items listed in the Standard Bidding
Documents (SBD), the Invitation for Bids should also indicate any important bid evaluation
criteria or qualification requirement.
The Invitation for Bids should be incorporated into the bidding documents. The information
contained in the Invitation for Bids must conform to the bidding documents and in particular
to the relevant information in the Bid Data Sheet.
2 Section I. Invitation for Bids
SAMPLE FORMAT FOR INVITATION FOR BIDS
[Name of Country]
[Name of Project]
BRIEF DESCRIPTION OF GOODS [WORKS]
Loan [Credit] No.
1. This invitation for bids follows the general procurement notice for this project that
appeared in Development Business, issue no. [insert number] of [insert date]. 1
2. The [insert name of borrower] [has received/has applied for/intends to apply for] a
[loan/credit] from the [International Bank for Reconstruction and
Development/International Development Association] toward the cost of [insert name
of project], and it intends to apply part of the proceeds of this [loan/credit] to payments
under the contract for [insert name/no. of contract]. 2
3. The [insert name of implementing agency] now invites sealed bids from eligible bidders
for [insert description of goods or works to be procured]. 3,4
4. Bidding will be conducted through the international competitive bidding procedures

specified in the World Bank’s Guidelines: Procurement under IBRD Loans and IDA
Credits, and is open to all bidders from eligible source countries as defined in the
guidelines. 5
5. Interested eligible bidders may obtain further information from [insert name of agency]
and inspect the bidding documents at the address given below [state address at end of
document] from [insert office hours]. 6
6. A complete set of bidding documents in [insert name of language] may be purchased by

interested bidders on the submission of a written application to the address below [state
address at the end of document] and upon payment of a nonrefundable fee7 [insert
amount in local currency] or in [insert amount in specified convertible currency]. The
method of payment will be [insert method of payment].8 The document will be sent by
[insert delivery procedure].9
7. Bids must be delivered to the address below [state address at the end of document] at or
before [insert time and date]. All bids must be accompanied by a bid security of [insert
amount in local currency or minimum percentage of bid price] or an equivalent amount
in a freely convertible currency.10 Late bids will be rejected. Bids will be opened in the
presence of the bidders’ representatives who choose to attend at the address below
[state address at end of document] at [insert time and date]. 11
Section I. Invitation for Bids 3
[Insert name of office].

[Insert name of officer].
[Insert postal address] and/or [Insert street address].
[Insert telephone number, indicate country and city code].
[Insert facsimile or cable number].
Notes
1. Day, month, year; for example, 31 January 1996.
2.[Insert if applicable]. This contract will be jointly financed by [insert name of cofinancing agency]. Bidding will be
governed by the World Bank’s eligibility rules and procedures.
3. A brief description of the type(s) of goods or works should be provided, including quantities, location of project, and other
information necessary to enable potential bidders to decide whether or not to respond to the invitation. Bidding documents
may require bidders to have specific experience or capabilities; such restrictions should also be included in this paragraph.
4. [Insert if applicable]. The delivery/construction period is [insert no.of days/months/years or dates].
5. Occasionally, contracts may be financed out of special funds that would further restrict eligibility to a particular group of
member countries. When this is the case, it should be mentioned in this paragraph. Also indicate any margin of preference
that may be granted as specified in the Loan or Credit Agreement and set forth in the bidding documents.
6. For example, 0900 to 1200 hours.
7. The fee, to defray printing and mailing/shipping costs, should be nominal.
8. For example, cashier’s check, direct deposit to specified account no., etc.
9. The delivery procedure is usually airmail for overseas delivery and surface mail or courier for local delivery. If urgency or
security dictates, courier services may be required for overseas delivery.
10. The amount of bid security should be stated as a fixed amount or as a minimum percentage of the bid price. Alternatively,
if a bid security is not required (often the case in supply contracts), the paragraph should so state.
11. The office for bid opening may not necessarily be the same as that for inspection or issuance of documents or for bid
submission. If they differ, each address must appear at the end of paragraph 7 and be numbered; as, for example, (1), (2), (3).
The text in the paragraph would then refer to address (1), (2), etc. Only one office and its address may be specified for
submission, and it should be near the place where bids will be opened.
5
Section II. Instructions to Bidders
Notes on the Instructions to Bidders

This section of the bidding documents provides the information necessary for bidders to
prepare responsive bids, in accordance with the requirements of the Purchaser. It also
provides information on bid submission, opening, and evaluation, and on the award of
contract.
Section II contains provisions that are to be used unchanged. Section III consists of
provisions that supplement, amend, or specify in detail information or requirements
included in Section II and which are specific to each procurement.
Matters governing the performance of the Supplier, payments under the contract, or matters
affecting the risks, rights, and obligations of the parties under the contract are not normally
included in this section, but rather under Section IV, General Conditions of Contract, and/or
Section V, Special Conditions of Contract. If duplication of a subject is inevitable in the
other sections of the document prepared by the Purchaser, care must be exercised to avoid
contradictions between clauses dealing with the same matter.
These Instructions to Bidders will not be part of the contract.

6 Section II. Instructions to Bidders
Table of Clauses
A. Introduction..........................................................................................................................
1. Source of Funds
..............................................................................................................................
2. Eligible Bidders
..............................................................................................................................
3. Eligible Goods and Services

..............................................................................................................................
4. Cost of Bidding
..............................................................................................................................
B. The Bidding Documents......................................................................................................

5. Content of Bidding Documents
..............................................................................................................................
6. Clarification and Amendments of Bidding Documents

..............................................................................................................................
C. Preparation of Bids..............................................................................................................
7. Language of Bid
..............................................................................................................................
8. Documents Comprising the Bid

..............................................................................................................................
9. Bid Form and Price Schedule

..............................................................................................................................
10. Bid Prices and Bid Currencies

..............................................................................................................................
9
11. Bid Security
..............................................................................................................................
12. Period of Validity of Bids

..............................................................................................................................
13. Format and Signing of Bid

..............................................................................................................................
Section II. Instructions to Bidders 7
D. Submission of Bids...............................................................................................................
14. Sealing and Marking of Bids
..............................................................................................................................
15. Deadline for Submission of Bids

..............................................................................................................................
16. Late Bids

..............................................................................................................................
17. Modification and Withdrawal of Bids

..............................................................................................................................
E. Opening and Evaluation of Bids

..........................................................................................................................................
12
18. Opening of Bids by the Purchaser
..............................................................................................................................
19. Clarification of Bids

..............................................................................................................................
20. Preliminary Examination

..............................................................................................................................
21. Evaluation and Comparison of Bids

..............................................................................................................................
14
22. Contacting the Purchaser
..............................................................................................................................
F. Award of Contract
..........................................................................................................................................
15
23. Post-qualification
..............................................................................................................................
24. Award Criteria

..............................................................................................................................
25. Purchaser’s Right to Vary Quantities at Time of Award

..............................................................................................................................
26. Purchaser’s Right to Accept any Bid and to Reject any or All Bids
..............................................................................................................................
27. Notification of Award

..............................................................................................................................
28. Signing of Contract

..............................................................................................................................
15
29. Performance Security
..............................................................................................................................
30. Corrupt or Fraudulent Practices

..............................................................................................................................
16
Instructions to Bidders
A. Introduction
1. Source of 1.1 The Borrower named in the Bid Data Sheet has applied for or
Funds received a loan or credit (hereinafter called “loan”) from the
International Bank for Reconstruction and Development or from
the International Development Association (as identified in the
Bid Data Sheet and hereinafter interchangeably called “the Bank”)
equivalent to the amount in U.S. dollars indicated in the Bid Data
Sheet towards the cost of the Project specified in the Bid Data
Sheet. The Borrower intends to apply a portion of the proceeds
of this loan to eligible payments under the contract for which this
Invitation for Bids is issued.
1.2 Payment by the Bank will be made only at the request of the
Borrower and upon approval by the Bank in accordance with the
terms and conditions of the Loan Agreement, and will be subject
in all respects to the terms and conditions of that agreement. The
Loan Agreement prohibits a withdrawal from the loan account for
the purpose of any payment to persons or entities, or for any
import of goods, if such payment or import, to the knowledge of
the Bank, is prohibited by a decision of the United Nations
Security Council taken under Chapter VII of the Charter of the
United Nations. No party other than the Borrower shall derive
any rights from the Loan Agreement or have any claim to the loan
proceeds.
2. Eligible 2.1 This Invitation for Bids is open to all suppliers from eligible
Bidders source countries as defined in Guidelines: Procurement under
IBRD Loans and IDA Credits, dated January 1995 revised
January and August 1996, hereinafter referred as the IBRD
Guidelines for Procurement, except as provided hereinafter.
2.2 Bidders shall not be under a declaration of ineligibility for corrupt

and fraudulent practices issued by the Bank in accordance with
sub-clause 30.1
3. Eligible Goods 3.1 All goods and related services to be supplied under the contract
and Services shall have their origin in eligible source countries, defined in the
IBRD Guidelines for Procurement, and all expenditures made
under the contract will be limited to such goods and services.
4. Cost of 4.1 The Bidder shall bear all costs associated with the preparation and
Bidding submission of its bid, and the Purchaser named in the Bid Data
Sheet, hereinafter referred to as “the Purchaser,” will in no case
be responsible or liable for those costs, regardless of the conduct
or outcome of the bidding process.
B. The Bidding Documents
5. Content of 5.1 The goods required, bidding procedures, and contract terms are
Bidding prescribed in the bidding documents. In addition to the Invitation
Documents for Bids, the bidding documents include:
(a) Instructions to Bidders (ITB)

(b) Bid Data Sheet
(c) General Conditions of Contract (GCC)
(d) Special Conditions of Contract (SCC)
(e) Specifications and Schedule of Requirements
(f) Bid Form and Price Schedules
(g) Bid Security Form
(h) Contract Form
(i) Performance Security Form
(j) Purchaser’s Notice of Award to Successful Bidder
(k) Seller’s Acknowledgment of Notice of Award
(l) Information on Discharge Port/Ports
5.2 The Bidder is expected to examine all instructions, forms, terms,

and specifications in the bidding documents. Failure to furnish all
information required by the bidding documents or to submit a bid
not substantially responsive to the bidding documents in every
respect will be at the Bidder’s risk and may result in the rejection
of its bid.
6. Clarification 6.1 A prospective Bidder requiring any clarification of the bidding

and documents may notify the Purchaser in writing or by cable or fax
Amendments at the Purchaser’s address indicated in Bid Data Sheet. The
of Bidding Purchaser will respond in writing to any request for clarification
Documents of the bidding documents which it receives no later than fifteen
(15) days prior to the deadline for the submission of bids
prescribed in the Bid Data Sheet. Written copies of the
Purchaser’s response (including an explanation of the query but
without identifying the source of inquiry) will be sent to all
prospective bidders that have received the bidding documents.
6.2 At any time prior to the deadline for submission of bids, the
Purchaser, for any reason, whether at its own initiative or in
response to a clarification requested by a prospective Bidder, may
modify the bidding documents by amendment.
6.3 All prospective bidders that have received the bidding documents
will be notified of the amendment in writing or by cable, and will
be bidding on them.
C. Preparation of Bids
7. Language of 7.1 The bid prepared by the Bidder, as well as all correspondence and
Bid documents relating to the bid exchanged by the Bidder and the
Purchaser, shall be written in the language specified in the Bid
Data Sheet.
8. Documents 8.1 The bid prepared by the Bidder shall comprise the following:
Comprising
the Bid (a) a Bid Form and a Price Schedule duly completed;
(b) evidence that the Bidder is eligible to bid and has minimum
experience and is otherwise financially qualified to perform
the contract as specified on the Bid Data Sheet;
(c) evidence that the goods to be supplied are eligible goods;

and
(d) bid security;
(e) a detailed description of the essential performance

characteristics of the products;
(f) commentary on the Specifications demonstrating substantial

responsiveness to those specifications, or a statement of
deviations and exceptions to the provisions of the
Specifications.
9. Bid Form and 9.1 The Bidder shall complete the Bid Form and Price Schedule
Price Schedule furnished in the bidding documents.
10. Bid Prices and 10.1 Bid prices shall be quoted in the currency specified in Bid Data
Bid Currencies Sheet and shall include FOB price, ocean freight, insurance,
ocean losses, inspection cost at loading port, premium/discount,
CIF price and other information as specified in Bid Form and
Price schedule.
10.2 Prices quoted by the Bidder shall be subject to adjustment during

the performance of the contract, as per clause 4 of the Special
Conditions of Contract.
11. Bid Security 11.1 The Bidder shall furnish, as part of its bid, a bid security in the
amount specified in the Bid Data Sheet.
11.2 The bid security is required to protect the Purchaser against the
risk of Bidder’s conduct which would warrant the security’s
forfeiture, pursuant to ITB Clause 11.7.
11.3 The bid security shall be denominated in U.S. Dollars and shall be
in one of the following forms:
(a) a bank guarantee or an irrevocable letter of credit issued by

a reputable bank located in the Purchaser’s country or
abroad, in the form provided in the bidding documents or
another form acceptable to the Purchaser and valid for thirty
(30) days beyond the validity of the bid; or
(b) a cashier’s or certified check.
11.4 Any bid not secured in accordance with ITB Clauses 11.1 and
11.3 will be rejected by the Purchaser as non-responsive.
11.5 Unsuccessful bidders’ bid security will be discharged or returned

as promptly as possible but not later than thirty (30) days after the
expiration of the period of bid validity prescribed by the
Purchaser pursuant to ITB Clause 12.
11.6 The successful Bidder’s bid security will be discharged upon the
Bidder signing the contract, pursuant to ITB Clause 28, and
furnishing the performance security, pursuant to ITB Clause 29.
11.7 The bid security may be forfeited:
(a) if a Bidder withdraws its bid during the period of bid

validity specified by the Bidder on the Bid Form; or
(b) in the case of a successful Bidder, if the Bidder fails:
(i) to sign the contract in accordance with ITB Clause 28;

or
(ii) to furnish performance security in accordance with
ITB Clause 29.
12. Period of 12.1 Bids shall remain valid for the period specified in the Bid Data
Validity of Bids Sheet after the date of bid opening prescribed by the Purchaser.
A bid valid for a shorter period shall be rejected by the Purchaser
as non-responsive.
12.2 In exceptional circumstances, the Purchaser may solicit the

Bidder’s consent to an extension of the period of validity. The
request and the responses thereto shall be made in writing (or by
cable). The bid security provided under ITB Clause 11 shall also
be suitably extended. A Bidder may refuse the request without
forfeiting its bid security. A Bidder granting the request will not
be required nor permitted to modify its bid.
13. Format and 13.1 The Bidder shall prepare an original and the number of copies of
Signing of Bid the bid indicated in the Bid Data Sheet, clearly marking each
“ORIGINAL BID” and “COPY OF BID,” as appropriate. In the

event of any discrepancy between them, the original shall govern.
13.2 The original and the copy or copies of the bid shall be typed or
written in indelible ink and shall be signed by the Bidder or a
person or persons duly authorized to bind the Bidder to the
contract. All pages of the bid, except for unamended printed
literature, shall be initialed by the person or persons signing the
bid.
13.3 Any interlineation, erasures, or overwriting shall be valid only if

they are initialed by the person or persons signing the bid.
13.4 The Bidder shall furnish information as described in the Form of

Bid on commissions or gratuities, if any, paid or to be paid to
agents relating to this Bid, and to contract execution if the Bidder
is awarded the contract.
D. Submission of Bids
14. Sealing and 14.1 The Bidder shall seal the original and each copy of the bid in
Marking of separate envelopes, duly marking the envelopes as “ORIGINAL”
Bids and “COPY.” The envelopes shall then be sealed in an outer
envelope.
14.2 The inner and outer envelopes shall:
(a) be addressed to the Purchaser at the address given in the

Bid Data Sheet; and
(b) bear the Project name indicated in the Bid Data Sheet, the
Invitation for Bids (IFB) title and number indicated in the
Bid Data Sheet, and a statement: “DO NOT OPEN
BEFORE,” to be completed with the time and the date
specified in the Bid Data Sheet.
14.3 The inner envelopes shall also indicate the name and address of
the Bidder to enable the bid to be returned unopened in case it is
declared “late”.
14.4 If the outer envelope is not sealed and marked as required by ITB
Clause 14.2, the Purchaser will assume no responsibility for the
bid’s misplacement or premature opening.
15. Deadline for 15.1 Bids must be received by the Purchaser at the address specified
Submission of under ITB Clause 14.2 no later than the time and date specified in
Bids the Bid Data Sheet.
15.2 The Purchaser may, at its discretion, extend this deadline for the
submission of bids in which case all rights and obligations of the
Purchaser and bidders previously subject to the deadline will
thereafter be subject to the deadline as extended.
16. Late Bids 16.1 Any bid received by the Purchaser after the deadline for
submission of bids prescribed by the Purchaser pursuant to ITB
Clause 15 will be rejected and returned unopened to the Bidder.
17. Modification 17.1 The Bidder may modify or withdraw its bid after the bid’s
and submission, provided that written notice of the modification,
Withdrawal of including substitution or withdrawal of the bids, is received by the
Bids Purchaser prior to the deadline prescribed for submission of bids.
17.2 The Bidder’s modification or withdrawal notice shall be prepared,

sealed, marked, and dispatched in accordance with the provisions
of ITB Clause 14. A withdrawal notice may also be sent by cable,
but followed by a signed confirmation copy, postmarked not later
than the deadline for submission of bids.
17.3 No bid may be modified after the deadline for submission of bids.
17.4 No bid may be withdrawn in the interval between the deadline for
submission of bids and the expiration of the period of bid validity
specified by the Bidder on the Bid Form. Withdrawal of a bid
during this interval may result in the Bidder’s forfeiture of its bid
security, pursuant to the ITB Clause 11.7.
E. Opening and Evaluation of Bids
18. Opening of 18.1 The Purchaser will open all bids in the presence of bidders’
Bids by the representatives who choose to attend, at the time, on the date,
Purchaser and at the place specified in the Bid Data Sheet. The bidders’
representatives who are present shall sign a register evidencing
their attendance.
18.2 The bidders’ names, bid modifications or withdrawals, bid prices,

discounts, and the presence or absence of requisite bid security
and such other details as the Purchaser, at its discretion, may
consider appropriate, will be announced at the opening. No bid
shall be rejected at bid opening, except for late bids, which shall
be returned unopened to the Bidder pursuant to ITB Clause 16.
18.3 Bids that are not opened and read out at bid opening shall not be
considered further for evaluation, irrespective of the
circumstances. Withdrawn bids will be returned unopened to the
bidders.
18.4 The Purchaser will prepare minutes of the bid opening.
19. Clarification of 19.1 During evaluation of the bids, the Purchaser may, at its discretion,
Bids ask the Bidder for a clarification of its bid. The request for
clarification and the response shall be in writing, and no change in
the prices or substance of the bid shall be sought, offered, or
permitted.
20. Preliminary 20.1 The Purchaser will examine the bids to determine whether they
Examination are complete, whether any computational errors have been made,
whether required sureties have been furnished, whether the
documents have been properly signed, and whether the bids are
generally in order.
20.2 Arithmetical errors will be rectified on the following basis. If

there is a discrepancy between the unit price and the total price
that is obtained by multiplying the unit price and quantity, the unit
price shall prevail, and the total price shall be corrected. If the
Supplier does not accept the correction of the errors, its bid will
be rejected, and its bid security may be forfeited. If there is a
discrepancy between words and figures, the amount in words will
prevail.
20.3 The Purchaser may waive any minor informality, nonconformity,

or irregularity in a bid which does not constitute a material
deviation, provided such waiver does not prejudice or affect the
relative ranking of any Bidder.
20.4 Prior to the detailed evaluation, pursuant to ITB Clause 21, the
Purchaser will determine the substantial responsiveness of each
bid to the bidding documents. For purposes of these Clauses, a
substantially responsive bid is one which conforms to all the terms
and conditions of the bidding documents without material
deviations. Deviations from, or objections or reservations to
critical provisions, such as those concerning Bid Security (ITB
Clause 11), Applicable Law (GCC Clause 14), and Taxes and
Duties (GCC Clause 11), will be deemed to be a material
deviation. The Purchaser’s determination of a bid’s
responsiveness is to be based on the contents of the bid itself
without recourse to extrinsic evidence.
20.5 If a bid is not substantially responsive, it will be rejected by the

Purchaser and may not subsequently be made responsive by the
Bidder by correction of the nonconformity.
21. Evaluation and 21.1 The Purchaser will evaluate and compare the bids which have
Comparison of been determined to be substantially responsive, pursuant to ITB

Bids Clause 20.
21.2 The bids will be evaluated and compared on the CIF (specify
port/ports of entry) prices offered. The award will be based on
the CIF price computed by purchaser for the bid opening date by
the summation of Platt’s Oilgram quotation for spot FOB price
(average of the low and high quotations for Arabian Gulf,
Mediterranean, North West Europe, etc. as indicated in the bid),
fixed cost for freight for the size of tankers specified in the bid,
insurance, ocean loss and inspection, if any, to be indicated in the
bid. Fixed FOB price and variations in freight insurance and
ocean loss will not be acceptable. Any discounts or premium on
such spot price offered in the bid will be taken into consideration.
Any other specific criteria should be indicated in the Bid Data
Sheet.
22. Contacting the 22.1 Subject to ITB Clause 19, no Bidder shall contact the Purchaser
Purchaser on any matter relating to its bid, from the time of the bid opening
to the time the contract is awarded. If the Bidder wishes to bring
additional information to the notice of the Purchaser, it should do
so in writing.
22.2 Any effort by a Bidder to influence the Purchaser in its decisions

on bid evaluation, bid comparison, or contract award may result
in the rejection of the Bidder’s bid.
F. Award of Contract
23. Post- 23.1 In the absence of pre-qualification, the Purchaser will determine
qualification to its satisfaction whether the Bidder that is selected as having
submitted the lowest evaluated responsive bid is qualified to
perform the contract satisfactorily, in accordance with the criteria
listed in ITB Sub-Clause 8.1(b).
24. Award Criteria 24.1 Subject to ITB Clause 26, the Purchaser will award the contract
to the successful Bidder whose bid has been determined to be
substantially responsive and has been determined to be the lowest
evaluated bid, provided further that the Bidder is determined to
be qualified to perform the contract satisfactorily.
25. Purchaser’s 25.1 The Purchaser reserves the right at the time of contract award to
Right to Vary increase or decrease, by the percentage indicated in the Bid Data
Quantities at Sheet, the quantity of goods and services originally specified in
Time of Award the Schedule of Requirements without any change in unit price or
other terms and conditions.
26. Purchaser’s 26.1 The Purchaser reserves the right to accept or reject any bid, and
Right to to annul the bidding process and reject all bids at any time prior
Accept any Bid to contract award, without thereby incurring any liability to the
and to Reject affected Bidder or bidders or any obligation to inform the affected
any or All Bids Bidder or bidders of the grounds for the Purchaser’s action.
27. Notification of 27.1 Prior to the expiration of the period of bid validity, the Purchaser
Award will notify the successful Bidder in writing by registered letter or
by cable, to be confirmed in writing by registered letter, that its
bid has been accepted.
27.2 The notification of award will constitute the formation of the

Contract.
27.3 Upon the successful Bidder’s furnishing of the performance

security pursuant to ITB Clause 29, the Purchaser will promptly
notify each unsuccessful Bidder and will discharge its bid security,
pursuant to ITB Clause 11.
28. Signing of 28.1 At the same time as the Purchaser notifies the successful Bidder
Contract that its bid has been accepted, the Purchaser will send the Bidder
the Contract Form provided in the bidding documents,
incorporating all agreements between the parties.
28.2 Within fifteen (15) days of receipt of the Contract Form, the
successful Bidder shall sign and date the contract and return it to
the Purchaser.
29. Performance 29.1 Within fifteen (15) days of the receipt of notification of award
Security from the Purchaser, the successful Bidder shall furnish the
performance security in accordance with the Conditions of
Contract, in the Performance Security Form provided in the
bidding documents, or in another form acceptable to the
Purchaser.
29.2 Failure of the successful Bidder to comply with the requirement

of ITB Clause 28 or ITB Clause 29.1 shall constitute sufficient
grounds for the annulment of the award and forfeiture of the bid
security, in which event the Purchaser may make the award to the
next lowest evaluated Bidder or call for new bids.
30. Corrupt or 30.1 The Bank requires that Borrowers (including beneficiaries of
Fraudulent Bank loans), as well as Bidders/Suppliers/Contractors under
Practices Bank-financed contracts, observe the highest standard of ethics
during the procurement and execution of such contracts. In
pursuance of this policy, the Bank:
(a) defines, for the purposes of this provision, the terms set
forth below as follows:
(i)“corrupt practice” means the offering, giving, receiving

or soliciting of any thing of value to influence the
action of a public official in the procurement process
or in contract execution; and
(ii)“fraudulent practice” means a misrepresentation of

facts in order to influence a procurement process or
the execution of a contract to the detriment of the
Borrower, and includes collusive practice among
Bidders (prior to or after bid submission) designed to
establish bid prices at artificial non-competitive levels
and to deprive the Borrower of the benefits of free and
open competition;
(b) will reject a proposal for award if it determines that the

Bidder recommended for award has engaged in corrupt or
fraudulent practices in competing for the contract in
question;
(c) will declare a firm ineligible, either indefinitely or for a

stated period of time, to be awarded a Bank-financed
contract if it at any time determines that the firm has
engaged in corrupt or fraudulent practices in competing
for, or in executing, a Bank-financed contract.
36.2 Furthermore, Bidders shall be aware of the provision stated in

clauses 22 and 23 of the General Conditions of Contract.”
20 Section III. Bid Data Sheet
Section III. Bid Data Sheet
Notes on the Bid Data Sheet

Section III is intended to assist the Purchaser in providing the specific information in
relation to corresponding clauses in the Instructions to Bidders included in Section II, and
has to be prepared for each specific procurement.
The Purchaser should specify in the Bid Data Sheet information and requirements specific to
the circumstances of the Purchaser, the processing of the procurement, the applicable rules
regarding bid price and currency, and the bid evaluation criteria that will apply to the bids.
In preparing Section III, the following aspects should be checked:
(a) Information that specifies and complements provisions of Section II must be

incorporated.
(b) Amendments and/or supplements, if any, to provisions of Section II as

necessitated by the circumstances of the specific procurement, must also be
incorporated.
21
Bid Data Sheet
The following specific data for the goods to be procured shall complement, supplement, or
amend the provisions in the Instructions to Bidders (ITB). Whenever there is a conflict, the
provisions herein shall prevail over those in ITB.
[Instructions for completing the Bid Data Sheet are provided, as needed, in the notes in
italics mentioned for the relevant ITB Clauses.]
Introduction
ITB 1.1 Name of Borrower.
ITB 1.1 Loan or credit number.
Loan or credit amount.
[when applicable]
ITB 1.1 Name of Project.
ITB 4.1 Name of Purchaser.
ITB 6.1 Purchaser’s address, telephone, telex, and facsimile numbers.
ITB 7.1 Language of the bid.
[Insert “English,” “French,” or “Spanish”.]

ITB 8.1(b) Qualification requirements.
[Specify minimum acceptable levels with regard to Bidder’s experience and its
financial capacity]
Bid Price and Currency

ITB 10.1 (a) The price quoted shall be U.S. Dollars.
ITB 10.1 (b) The price quoted shall be in accordance with the Bid Form and shall
state separately the costs for FOB, ocean freight, insurance, ocean
losses, inspection, applicable discounts/premium and CIF price.
ITB 10.2 The price shall be adjustable as specified in the Special Conditions of
Contract (SCC).
Secion III. Bid Data Sheet 22
Preparation and Submission of Bids

ITB 11 Amount of bid security. (The amount should be expressed as a fixed
amount.)
ITB 12 Bid validity period.
[The period should be sufficient to permit completion of the evaluation, review of

the recommended selection by the Bank, the obtainment of approvals, and
notification of award. A realistic period should be specified in order to avoid the
need for extension.]
ITB 13 Number of copies.
ITB 14.2 (a) Address for bid submission.
ITB 14.2 (b) IFB title and number.
ITB 15.1 Deadline for bid submission.
ITB 18.1 Time, date, and place for bid opening.
[The date should be the same as for bid submission specified under ITB 15.1
above, and the time should also be the same as specified under ITB 15.1, or
immediately thereafter.]
Bid Evaluation
ITB 21.2 Criteria for bid evaluation.
[Select and specify as appropriate additional criteria not listed in ITB Clause
21.2
Contract Award
ITB 25.1 Percentage for quantity increase or decrease.
[Optional clause to be used only where appropriate. Normally should not

exceed fifteen (15) percent.]
24
Section IV. General Conditions of Contract
Notes on the General Conditions of Contract

The General Conditions of Contract in Section IV, read in conjunction with the Special
Conditions of Contract in Section V and other documents listed therein, should be a
complete document expressing all the rights and obligations of the parties.
The General Conditions of Contract herein shall not be altered. Any changes and
complementary information, which may be needed, shall be introduced only through the
Special Conditions of Contract in Section V.
Section IV. General Conditions of Contract 25
Table of Clauses
1. Definitions......................................................................................................................25
2.Type of Sale....................................................................................................................25
3. Quality...........................................................................................................................26
4. Quantity and Period of Supply.......................................................................................26
5. Nomination of Vessels...................................................................................................26
6. Verification and Measurement.......................................................................................27
7. Quantity and Quality Claims .........................................................................................28
8. Delivery, Title and Risk of Loss.....................................................................................28
9. Insurance........................................................................................................................28
10. Payment.......................................................................................................................29
11. Port Charges and Taxes...............................................................................................29
12. Laytime........................................................................................................................29
13. Demurrage...................................................................................................................30
14. Governing Law and Settlement of Disputes................................................................31
15. Language.....................................................................................................................31
16. Waiver and Non-assignability.......................................................................................31
17. Performance Security, Notice of Award and Agreement Signing.................................31
18. Force Majeure..............................................................................................................31
19. Seller’s Default............................................................................................................32
20. Purchaser’s Default......................................................................................................32
21. Notices and Communication........................................................................................32
22. Inspection and Audit by the Bank................................................................................33
23. Termination for Default...............................................................................................33
24. Entry into Force...........................................................................................................33
General Conditions of Contract
These General Conditions of Contract (GCC) are designed for supply and shipment of crude
oil/ petroleum products in bulk in ocean going vessels on a Cost, Insurance and Freight (CIF)
basis for periods not exceeding twelve calendar months at a time. They form an integral part
of the contract which incorporates them by reference. These provisions in GCC shall be
subordinate to the provisions in Special Conditions of Contract (SCC) and its appendices to
the extent that there are inconsistencies between GCC and SCC
1. Definitions 1.1 Unless otherwise expressly provided, wherever used in this

Contract the following words and expressions shall have the
following meanings:
(a) “The Contract” means the agreement entered into between the
Purchaser and the Supplier, as recorded in the Contract Form
signed by the parties, including all attachments and appendices
thereto and all documents incorporated by reference therein.
(b) “The Purchaser” means the organization purchasing the Goods.
(c) “The Seller” means the individual or firm supplying the Goods
under this Contract.
(d) Crude oil/ products mean crude oil/ petroleum products

described in SCC hereunder.
(e) Day and month mean a calendar day and a calendar month,
respectively.
(f) Platt’s Quotation means the Platt’s Oilgram Price Report or

Platt’s Marketwire (for crude oil) or Platt’s European
Marketscan (for products) quotation published by the McGraw-
Hill Companies Inc.
(g) MT means metric ton (2240.62 pounds).
(h) Cargo means a consignment of crude/ product for delivery

referred to in SCC hereunder.
(i) The Vessel means any tanker owned or chartered or otherwise

obtained by the seller, which is employed by the seller to load the
oil of this Contract at the seller’s loading port.
2. Type of Sale 2.1 The seller shall sell the (crude oil or products as the case may be)
on a CIF basis to the Purchaser at Purchaser’s port or ports of
destination.
3. Quality 3.1 The quality of each grade of oil (crude oil or products) shall be as
per specifications provided in SCC.
4. Quantity and 4.1 The quantity and the period of supply of crude oil / products
Period of covered under this Agreement shall be as indicated in SCC plus /
Supply minus five percent (Seller’s option).
5. Nomination of 5.1 Seller shall ship the cargo to Purchaser in bulk in vessel(s)
Vessels provided by the Seller CIF the discharge port/ports for discharge
at berth or any other mooring facilities suitable for discharging
petroleum fuels. Seller shall be deemed to be fully familiar with
the discharge port/ports conditions, restrictions, terminal
procedures and requirements as detailed in SCC. If Seller’s
vessel does not conform to the terminal procedures or to the
requirements or regulations of governmental authorities with
respect to safety, size, vessel movements, navigation and
operating standards, discharge and the like, Purchaser may refuse
to berth or discharge the vessel and any delays or expenses of
Seller and Purchaser due to such non-conformance (whether
Purchaser so refuses or proceeds with berthing or discharge)
shall be for Seller’s account.
5.2 An accepted date range shall be determined in respect of each

shipment, by narrowing the period for discharge of the cargo at
the discharge port/ports as set out in SCC. Promptly following
the entering into this Contract, Seller shall notify Purchaser of the
proposed date range within which each vessel is to arrive /at the
discharge port/ports. The notice shall specify, as to each shipment,
the approximate amount of the cargo to be shipped, subject to a
variation of plus or minus five percent at Seller’s option, and the
name of the vessel or that is “to be nominated” (TBN). Purchaser
shall respond promptly to each of Seller’s notices as to whether
Seller’s requested date range(s) and other requests are acceptable,
and, if they are not, Purchaser shall propose modifications to
Seller’s requests required to accommodate Purchaser’s and the
discharge terminal’s schedules. The parties shall consult to agree
on a mutually acceptable schedule of shipments and accepted date
range(s).
5.3 Not later than seven (7) calendar days prior to the first day of
each accepted date range, Seller shall notify Purchaser of the
expected date of arrival of the vessel at the discharge port/ports.
Seller shall notify Purchaser of the name of any vessel previously
advised as a “TBN” as soon as possible, but not later than (1) the
third day before the first day of the relevant accepted date range,
or (2) the last day for the naming of a vessel under terminal
procedures, whichever of (1) or (2) is the earlier. After having
declared a vessel but prior to its loading from the loading port,
seller may substitute another vessel of similar class, type, size,
28 Section IV. General Conditions of Contract
capacity, and position, provided all other provisions hereof are

complied with and further provided that such a substitution when
advised is permitted under terminal procedures. Purchaser shall
be entitled to reject the vessel and require that Seller nominate a
substitute vessel if it reasonably believes that the vessel in
question does not conform to safety or other operational
standards of the discharge port/ports or of terminal procedures.
Seller shall provide all standard information concerning the
operations, master, crew and history of repairs to the vessel as
Purchaser may reasonably request in order to satisfy itself as to
the vessel’s acceptability as aforesaid.
5.4 All vessels nominated by Seller shall be enrolled in TOVALOP

(Tanker owners’ voluntary Agreement on liability for oil
pollution) or have mutually acceptable equivalent oil pollution
insurance.
6. Verification 6.1 The quality and quantity of each shipment hereunder shall be
and determined by verification and measurement conducted by Seller
Measurement or its supplier at the load port under the supervision of an
internationally recognized independent petroleum inspector
(Independent Inspector) appointed by the Seller, satisfactory to
both Seller and Purchaser. Sealed representative samples of the
cargo loaded shall be collected by the Independent Inspector and
handed over to the Tanker Master. The Seller shall retain one set
of such sealed samples for at least ninety (90) calendar days.
Charges rendered by the Independent Inspector at the loading
port shall be borne by the Seller. The Independent Inspector’s
certificates of quantity and quality shall be binding and
conclusive upon both parties and shall be used for the invoice
and Bill of Lading. If the cargo is a clean product or low sulfur
fuel oil, the Independent Inspector shall include in its certificate
of quality a statement as to the cleanliness of the vessel’s tanks
prior to loading of the cargo.
6.2 The Purchaser shall appoint an Independent Inspector,

satisfactory to Seller and Purchaser, to conduct inspection at the
discharge port/ports for verification of quantity and quality of the
cargo prior to discharge. The Independent Inspector shall take
and retain for at least ninety (90) calendar days representative
samples of the cargo in the ship. Charges rendered by the
Independent Inspector at the discharge port/ports shall be borne
by the Purchaser. In the event of disputes regarding quantity and
quality of the cargo discharged hereunder, the determinations
made by the Independent Inspector and the analysis of the sealed
representative samples conducted by the Independent Inspector
shall serve as the basis for resolving such disputes.
6.3 Bills of Lading shall be issued by the Master of the vessel or the
authorized representatives of the Master or the carrier for each
cargo supplied. The Bill of Lading date shall be the date on
which hoses connecting Seller’s or its supplier’s delivery facilities
and loading connections of vessel are disconnected. The invoice
quantity of the cargo shall be the Bill of Lading quantity and shall
exclude sediment and water as determined by standard test
methods in general usage at the loading port except that the
invoice quantity for black products shall include sediment and
water up to the maximum permissible limit in the specification.
All quantities shall be adjusted to volume at 60 degree F or 15
degree C in accordance with the volume correction tables in
general use at the loading port.
7. Quantity and 7.1 Purchaser’s claims against Seller for shortage of quantity and
Quality Claims defect in quality shall be through written notices by Purchaser or
Purchaser’s representatives to the Seller as soon as possible but
in no event later than sixty (60) calendar days after completion of
unloading at the discharge port/ ports.
8. Delivery, Title 8.1 Delivery of the cargo shall be deemed completed at the loading
and Risk of port as the cargo passes the flanges connecting Seller’s or its
Loss supplier’s pipeline or other delivery facilities to the loading
connections of vessel provided by Seller. Title and risk of loss,
including damage, deterioration or evaporation as to the cargo so
delivered shall pass to Purchaser at the load port as the delivery
is deemed completed.
8.2 No transshipment of cargo, intermediate storage, or supplement

of cargo via ship to ship transfers, following loading at the load
port and before delivery to the discharge port/ports shall be
permitted. No commingling of Purchaser’s cargo with that of
others on the vessel shall be permitted.
9. Insurance 9.1 Seller shall procure and pay for insurance of the cargo so
delivered against marine and all other risks including
contamination, deterioration, leakage, evaporation and shortage
exceeding 0.5% of the Bill of Lading quantity, from shoretank at
the loading port to shoretank at the discharge port/ports, for an
amount equivalent to 110 percent of the total CIF price of the
cargo. The benefit of such insurance shall accrue to Purchaser as
title to the cargo passes to Purchaser as indicated in Clause 8
above. Insurance against war risks, if asked for by the Purchaser,
shall be purchased at extra cost to the Purchaser.
10. Payment 10.1 Purchaser shall pay for each shipment at the price and payment
terms as set out in SCC without discount in U.S. dollars in a
place at Seller’s option by means of an irrevocable and confirmed
letter of credit in a form acceptable to Seller. Any amount not

paid when due shall bear interest from the due date at a rate
equal to monthly Libor plus two (2) percent, prorate, for each
day payment is delay. In no event shall the Seller be obliged to
continue with the supplies of additional cargo covered under this
Contract if the payment for any cargo is late, for any reason, by
more than fifteen (15) calendar days.
11. Port Charges 11.1 All port charges, port dues and other taxes against the vessel at
and Taxes the port of loading, such as agency fees, towage, pilotage and
customs fees shall be borne by the Seller. Purchaser shall be the
importer into the country of destination for the cargo delivered
under this Contract and shall be responsible for arranging and
making payments for all duties, taxes, costs for carrying out
customs formalities and other official charges at the port/ports of
discharge.
12. Laytime 12.1 72, 48 and 24 hours in advance of arrival, the Master of the
vessel shall notify Purchaser of the expected time of arrival
(ETA) at the discharge port. Any vessel delays due to failure of
Master of vessel to give notice 24 hours in advance of arrival
shall not count as used laytime nor, if the vessel is on demurrage,
as time on demurrage.
12.2 Upon arrival of the vessel at the customary anchorage for the
discharge port/ ports, the Master or his representative shall
tender to Purchaser or its agent at the discharge port/ports,
Notice of Readiness of the vessel to discharge cargo. If the
vessel tenders Notice of Readiness during its acceptance date
range, laytime shall begin upon the expiration of 6 hours after the
tendering of Notice of Readiness, or when the vessel is all fast in
the discharge birth, whichever occurs first. Laytime shall cease
and discharge shall be deemed completed upon disconnection of
the discharge hoses.
12.3 Purchaser shall be allowed 36 running hours as laytime plus six

(6) hours from notice of readiness, Saturdays/ Sundays and
holidays included, within which to receive each full cargo
supplied by Seller. The vessel shall maintain a back pressure of
minimum 100 pounds per square inch at the ship’s rail provided
shore facilities permit. Laytime for part cargoes shall be the total
laytime provided above, prorated for the parcel size in question.
Any time consumed due to any of the following shall not count
as used laytime or time on demurrage:
(a) breakdown or inability of the vessel’s facilities to discharge

the cargo within the laytime allowed to Purchaser ;
(b) failure to discharge or delay in discharging attributable to one

or more of the owner, operator, Master officers and crew of the
vessel, the vessel’s agent, Seller, tugboats or pilots;
(c) delay if due to fault of vessel, handling or shifting ballast,

bilges, slops or other substances, or bunkering not accomplished
concurrently with cargo discharge operations;
(d) delay due to awaiting customs or immigration clearance of

the vessel; and
(e) vessel proceeding from anchorage to discharge berth and

vessel lining up.
13. Demurrage 13.1 For all time used in excess of the allowed laytime, Purchaser shall
pay demurrage, at the rate specified in the charterparty, to Seller
upon Purchaser’s verification of Seller’s claim therefor. In no
event shall Purchaser be liable for payment of demurrage
hereunder in excess of that amount actually paid to the vessel by
Seller for demurrage related to the cargo received by Purchaser.
Demurrage, if due, shall be paid in U.S. dollars within thirty (30)
calendar days of the Purchaser’s agreeing the claim. In any
event, the Purchaser and the Seller shall agree on the claim
within thirty-six (36) calendar days of the receipt of claim by the
Purchaser.
13.2 If demurrage shall be incurred by reason of fire, explosion,

storm, or by strike, picketing, lockout, stoppage or restraint of
labor or other labor difficulties or disturbances, or by breakdown
of machinery or equipment in or about the plant of Purchaser’s
discharge terminal, the rate of demurrage shall be calculated at
one half of the rate specified above.
14. Governing 14.1 The governing law of this Contract and the making thereof shall
Law and be the law of the Purchaser’s country or any other country with
Settlement of internationally accepted law (Seller’s option). Disputes arising in
Disputes connection with the Contract which cannot be resolved amicably
shall be settled under the rule of conciliation and arbitration of the
International Chamber of Commerce, Paris or UNICITRAL.
15. Language 15.1 The Contract shall be written in the language of the bid, as
specified in the invitation to bid, and that language version of the
Contract shall govern in its implementation.
16. Waiver and 16.1 Waiver by one party of the other’s breach of any provision of this
Non- Contract shall not be deemed a waiver of any subsequent or
assignability continuing breach of such provision or of the breach of any other
provision or provisions thereof. This Contract shall not be

assigned, in whole or in part, by either party without the written
consent of the other, which shall not be unreasonably withheld,
except that Seller and Purchaser may assign this Contract to any
wholly owned affiliate, provided that any such assignment shall
not release the assigning party of any of its obligations hereunder.
17. Performance 17.1 Within seven (7) calendar days of the receipt of notification of
Security, award from Purchaser, the successful bidder shall activate the
Notice of Performance Security, as shown in Form 4, in the form of a bank
Award and guarantee, in a form acceptable to Purchaser, for an amount not
Agreement less than ten (10) percent of the value of cargo under this
Signing Contract in U.S.dollars. The Notice of Award from Purchaser to
Seller is attached to and made part of this contract as Form 3.
18. Force Majeure 18.1 Seller shall not be liable for any loss, claims or demands of any
nature whatsoever and shall not be deemed in breach of the
Agreement because of any delay or failure in observing or
performing any of the conditions or provisions hereof, if such
delay or failure is caused by, or arises out of any circumstances
whatsoever, beyond the Seller’s control, including (but without
limiting the generality of the foregoing) declared or undeclared
war, sabotage, blockage, revolution, police action, riots or
disorder, embargoes or trade restrictions of any sort, government
or quasi-government action, acts of God, fire, flood,
earthquakes, storms, tides or tidal waves, explosion, accident,
radiation, strike, lockouts, or other labor disputes or disasters.
If by reason of any cause beyond the control of Seller there is

curtailment or suspension of availability of the Product then
Seller shall be at liberty to withhold, reduce or suspend deliveries
hereunder to the extent that Seller considers reasonable and
equitable and Seller shall not be bound to acquire by purchase or
otherwise additional quantities from other suppliers.
In so far as any of the above causes shall prevent Buyer from

accepting any delivery under the Agreement, Purchaser shall be
excused from acceptance of, or payment for such delivery.
19. Seller’s Default 19.1 If the Seller fails to supply goods within the specified period in
the Agreement, the Purchaser shall without prejudice to its other
remedies under the Agreement, deduct from the Agreement price
as liquidated damages at 1% per week of delay for delayed
shipment at the contract price up to a maximum limit of 10%.
Without prejudice to the above remedies, due to the failure to
supply within the specified period, the Purchaser may consider
termination of the Agreement.
20. Purchaser’s 20.1 Should Purchaser fail to take any delivery of the Product(s)
Default deliverable under the terms of the Agreement through Purchaser’s
own fault, and such failure is not excused under any other
provision of the Agreement, Seller shall in addition to any other
legal remedies it may have, be entitled to sell Product(s)
comprised in such delivery to Purchaser’s account in a private or
public sale after fifteen (15) days notice to Purchaser and the
price so obtained shall be deemed conclusively the best price
which Seller could obtain.
From such price shall be deducted Seller’s expenses incurred

through Buyer’s failure to take delivery, and the remainder shall
be applied towards the price(s) mentioned in Clause 4 of this
Agreement and Buyer shall pay to Seller the balance, if any, of
such price(s) within thirty (30) days of date of Seller’s invoice.
Without prejudice to the terms and conditions of Clause 20

hereof defining grounds for claim of Force Majeure it is further
agreed that Seller shall not be liable for any loss, claims or
demands of any nature whatsoever or be deemed in breach of the
Agreement because of any delay or failure in observing or
performing any of the conditions or provisions of the Agreement
if such delay or failure is caused by or arises out of any action or
order direct or indirect of the Government of the Purchaser
country or any agency thereof.
21. Notices and 21.1 Any communications by either party to the other shall be made in
Communication the manner prescribed hereunder. If no specific manner is
provided for, it shall be sufficiently made if sent by post, postage
paid, or by telegraph, or telex to the address of the other party
specified for this purpose in the SCC and shall, unless otherwise
provided herein, be deemed to have been made on the day on
which such communication ought to have been delivered in due
course of postal, telegraphic or telex communication, depending
on the means used.
22. Inspection and 22.1 The Supplier shall permit the Bank to inspect the Supplier’s
Audit by the accounts and records relating to the performance of the Supplier
Bank and to have them audited by auditors appointed by the Bank, if so
required by the Bank.
23. Termination 23.1 If the Supplier, in the judgment of the Purchaser has engaged in
for Default corrupt or fraudulent practices in competing for or in executing
the Contract. ‘For the purpose of this clause: “corrupt practice”
means the offering, giving, receiving or soliciting of any thing of
value to influence the action of a public official in the
procurement process or in contract execution; “fraudulent
practice” means a misrepresentation of facts in order to influence
a procurement process or the execution of a contract to the

detriment of the Borrower, and includes collusive practice among
Bidders (prior to or after bid submission) designed to establish bid
prices at artificial non-competitive levels and to deprive the
Borrower of the benefits of free and open competition.
24. Entry into 24.1 This Agreement shall enter into force and effect upon signature of
Force the Contract Form and shall automatically lapse at the completion
of all obligations by both parties.
36
Section V. Special Conditions of Contract
Notes on the Special Conditions of Contract

Similar to the Bid Data Sheet in Section III, the clauses in this Section V are intended to
assist the Purchaser in providing contract-specific information in relation to corresponding
clauses in the General Conditions of Contract.
The provisions of Section V complement the General Conditions of Contract included in

Section IV, specifying contractual requirements linked to the special circumstances of the
Purchaser, the Purchaser’s country, the sector, and the Goods purchased. In preparing
Section V, the following aspects should be checked:
(a) Information that complements provisions of Section IV must be incorporated.
(b) Amendments and/or supplements to provisions of Section IV, as necessitated by

the circumstances of the specific purchase, must also be incorporated.
Section V. Special Conditions of Contract 37
Table of Clauses
1. Type of Sale (GCC Clause 2)
..............................................................................................................................
37
2. Type of crude oil/product and Quality (GCC Clause 3)
..............................................................................................................................
37
3. Quantity and Period of Supply (GCC Clause 4)
..............................................................................................................................
37
4. Price
..............................................................................................................................
38
5. Payment (GCC Clause 10)
..............................................................................................................................
38
6. Documentation
..............................................................................................................................
39
7. Performance Security (GCC Clause 17)
..............................................................................................................................
39
8. Governing Law and Settlement of Disputes (GCC Clause 14)
..............................................................................................................................
39
9. Terms and Conditions
..............................................................................................................................
39
10. Notices and Communications (GCC Clause 21)
..............................................................................................................................
40
38 Section V. Special Conditions of Contract
SPECIAL CONDITIONS OF CONTRACT
FOR SUPPLY AND SHIPMENT OF CRUDE OIL / PETROLEUM PRODUCTS
The following Special Conditions of Contract shall supplement the General Conditions of
Contract. Whenever there is a conflict, the provisions herein shall prevail over those in the
General Conditions of Contract. The corresponding clause number of the GCC is indicated in
parentheses.
[Instructions for completing the Special Conditions of Contract are provided, as needed, in the notes
in italics mentioned for the relevant SCC. Where sample provisions are furnished, they are only
illustrative of the provisions that the Purchaser should draft specifically for each procurement.]
A Contract for sale and purchase of (specify crude oil / products) made between (name and
address) herein after referred to as Purchaser on the one part and (name and address) herein
after referred to as Seller of the other part.
Whereby it is agreed between the parties as follows:
1. Type of Sale (GCC Clause 2)
Seller shall sell the [specify crude oil / products] on a cost, insurance and freight (CIF)
basis to Purchaser at [specify port / ports of discharge.]
2. Type of crude oil/ product and Quality (GCC Clause 3)
Seller shall meet the crude oil/ product needs of Purchaser as indicated hereafter,
meeting the specification indicated in Section VI.
3. Quantity and Period of Supply (GCC Clause 4)
SCC 3.1 The quantity of [specify crude oil / products] covered under this Contract
is indicated below with variations upto plus or minus five (5) percent with Seller
retaining this option. The preferred cargo size and the expected time of arrival of the
first shipment at the delivery port / ports are indicated below [specify cargo size and
expected time of arrival.]
SCC 3.2 The period of supply under this contract shall be from [specify date]
through to [specify date.]
SCC 3.3 The standard conversion factors, for crude oil/ products covered under
this Contract, to convert volume measures into weights shall be as follows, [specify
conversion factors in US Barrel per MT.]
SCC 3.4 Purchaser shall advise Seller its needs within the quantities indicated
above, in [specify number of shipments] cargo lots over the Contract period, by
accepting Seller’s nomination of each cargo lot of [specify quantity] metric tons plus or
minus five (5) percent at Seller’s option. The shipments shall be evenly spread
throughout the period of this Contract. Purchaser shall advise Seller of its preferred
five (5) day range of discharge port arrival days fifteen (15) calendar days in advance
of the first day of the five day range to assist Seller in its operation planning. Seller
shall nominate acceptable vessels to cause cargoes to be transported to the discharge
port/ ports in cargo lots as described herein. Seller shall be deemed to be fully familiar
with the discharge port/ ports conditions, restrictions, terminal procedures and
requirements as detailed in Form 5.
4. Price
The price(s) payable by Purchaser hereunder shall be inclusive of spot average FOB
(for example, FOB Mediterranean basis Italy for products and FOB loading port for
crude oil), calculated as five days arithmetical average of Platt’s Oilgram quotation
(average of high and low quotations) based on Bill of Lading date, two days before
and two days after, and, as quoted in the Bid Form, ocean freight, insurance, ocean
losses not exceeding 0.50 percent of the Bill of Lading quantity, all port charges
incurred by the vessel and inspection fees at the loading port, but exclusive of port
charges, inspection fees or any other charges at the discharge port/ ports. Fixed
charges for discounts/ premiums, if any, under this Contract shall be specified and shall
be taken into account in calculating the price payable by the Purchaser. If on the Bill of
Lading date the applicable Platt’s spot prices are not published, then the last three
quotations immediately before the Bill of Lading date and the two published
quotations immediately after Bill of Lading date shall be applied. If the Price
publication is delayed for a period more than one week or the spot market prices are
totally out of tune with the going market prices, the FOB price basis should be
discussed and mutually agreed upon in writing between the Purchaser and Seller
before loading.
5. Payment (GCC Clause 10)
Payment of each shipment to be delivered hereunder shall be made in U.S.dollars

within thirty (30) calendar days from the Bill of Lading date of the vessel concerned
by means of an irrevocable and confirmed letter of credit. The letter of credit shall be
opened and confirmed by a first class bank, acceptable to Seller, seven (7) calendar
days prior to the estimated date of loading of each cargo. The letter of credit shall be
for the approximate value of the shipment plus five percent and shall remain valid for
not more than [specify number of days] calendar days. All normal costs connected with
the letter of credit, including establishing, advising, negotiation and confirmation, shall
be for the Purchaser’s account. Any special charges on account of Seller’s
requirement, outside Purchaser’s country shall be borne by Seller. Payment shall be
made against Seller’s draft drawn on the confirming bank for hundred (100) percent
of the invoice value upon presentation of Seller’s commercial invoice and full set of
original shipping documents. If the due date falls on a Bank holiday, the payment shall
be due on the following business day.
6. Documentation
Purchaser shall make payment against:
(a) Commercial invoice detailing FOB price, freight and insurance separately.
(b) Documents of title (original Bill of Lading or any other document acceptable
to Purchaser).
(c) Insurance certificates
(d) Certificate of origin
(e) Master’s receipt of sealed samples of the cargo loaded including clean Bill of
Lading.
(f) Certificate of quality and quantity.
(g) Master’s receipt of documents
(h) Ship’s cargo manifest.
(I) Any other documents agreed upon between Purchaser and seller.
7. Performance Security (GCC Clause 17)
The performance security in the amount of [specify amount in U.S.dollars] , as requested

in Purchaser’s bid invitation and received as part of Seller’s successful bid, is
attached to and made a part of this Contract. as Form 4. The Notice of Award from
Purchaser to Seller is attached to and made part of this Contract.
8. Governing Law & Settlement of Disputes (GCC Clause 14)
English or US Law should be specified, if acceptable to both the parties, in lieu of

provision made in GCC Clause 14. Also, specify alternate forum for Arbitration such
as Uncitrol in lieu of International Chamber of Commerce, Paris.
9. Terms and Conditions
Other terms and conditions of this Contract shall be as per GCC. These conditions shall be
subordinate to the provisions in SCC and its appendices to the extent that there are
inconsistencies between GCC and SCC.
10. Notices and Communications (GCC Clause 21)

Communications by either party to the other shall be sufficiently made if delivered by

registered mail, or sent by telegraph, telex, cable or facsimile to the address of such
party specified for this purpose hereunder and shall, unless otherwise provided herein,
be deemed to have been made on the day on which such communication ought to have
been delivered in due course of postal, telegraphic, telex or facsimile communication,
depending on the means used.
The address, telex number, facsimile number and cable address for this purpose are:
For the Purchaser:
[specify Purchaser’s address, telex/facsimile number(s) and cable address.]
For the Seller:
[specify Seller’s address, telex/facsimile number(s) and cable address.]
In Witness whereof the parties have respectively caused this Contract to be executed in
duplicate on the date indicated hereunder.
For the Purchaser:
Date:
Witnessed by:
Date:
For the Seller:
Date:
Witnessed by:
Date:
SECTION VI
SUPPLY AND SHIPMENT OF CRUDE OIL/PRODUCTS
SPECIFICATION FOR CRUDE OIL/PRODUCTS

&
SCHEDULE OF REQUIREMENTS
(Purchaser will prepare this Section)

43
44
SECTION VII. SAMPLE FORMS
Notes on the Sample Forms

The Bidder shall complete and submit with its bid the Bid Form and Price Schedules
pursuant to ITB Clause 8 and in accordance with the requirements included in the bidding
documents.
When requested in the Bid Data Sheet, the Bidder should provide the Bid Security, either
in the form included hereafter or in another form acceptable to the Purchaser, pursuant to
ITB Clause 11.3.
The Contract Form, when it is finalized at the time of contract award, should incorporate
any corrections or modifications to the accepted bid resulting from quantity variations
pursuant to ITB Clause 25.
The Performance Security and the Seller’s Acknowledgment of Notice of Award forms
should not be completed by the bidders at the time of their bid preparation. Only the
successful Bidder will be required to provide them.
The Information on Discharge Port/Ports with details of the harbor or port of unloading
will be provided by the Purchaser to all bidders and the Purchaser’s Notice of Award to
Successful Bidder will be furnished by the Purchaser to the successful bidder.
Section VII. Sample Forms 45
Sample Forms
1. Bid Form and Price Schedules
..............................................................................................................................
45
2. Bid Security Form
..............................................................................................................................
47
3. Contract Form
..............................................................................................................................
48
4. Performance Security Form
..............................................................................................................................
50
5. Purchaser’s Notice of Award to Successful Bidder
..............................................................................................................................
51
6. Seller’s Acknowledgment of Notice of Award
..............................................................................................................................
52
7. Information on Discharge Port/Ports
..............................................................................................................................
53
46 Section VII. Sample Forms
Sample Forms
FORM I
SUPPLY AND SHIPMENT OF CRUDE OIL/ PRODUCTS
1. BID FORM & PRICE SCHEDULES
1. Bid closing date and time [Purchaser to specify].

2. Bid opening date and time [Purchaser to specify]
3. Tanker size [Purchaser to specify]
4. Currency of bid [specify amount in U.S.Dollars]
5. FOB price basis1 [Average of Platt’s Quotation]
6. Freight, Fixed per MT2 [Bidder to quote]
7. Insurance, Fixed per MT [Bidder to quote]
8. Ocean loss, Fixed per MT (0.5 % max) [Bidder to quote]
9. Inspection cost at load port, Fixed per [Bidder to quote, if any]
MT
10. Premium/Discount, Fixed per MT3 [Bidder to quote, if any]
11. CIF Price [Total of above items 5 to 10]
12. Payment terms, Credit period [specify thirty (30) days]
13. Demurrage rate & conditions applicable [specify Charter party rate & Conditions.]
14. Governing Law [Bidder to specify as per Clause 14 of GCC]
15. Compliance with Purchaser’s [Bidder to confirm]
specifications and Terms and
conditions4
16. Bid validity period [Bidder to provide.]
Commissions or gratuities, if any, paid or to be paid by us to agents relating to this Bid, and to
contract execution if we are awarded the contract, are listed below
Name and address of agent Amount and Currency
(if none, state “none”).
Having examined the Bidding Documents and all attachments thereof, we, the undersigned,
undertake to supply and transport the oil as per quality and quantity specified in Clauses 2 and
3 of Part II- SCC of the Draft Contract included in the Bidding Documents. We understand
that the Purchaser is not bound to accept the lowest or any bid received.
Dated this
[signature for and on behalf of Manufacturer]

[in the capacity of]
Duly authorized to sign bid for and on behalf of
For the purpose of comparison and evaluation of bids, the FOB price shall be based on average price as given
in Platt’s Oilgram quotation for the bid opening date. Payments will be made as per Clause 5 of Part II SCC of
the Draft Contract attached. If on the date of bid opening Platt’s spot prices are not published, then the last
price publication prior to that date shall be applied.
2
Freight quoted for the tanker size and loading/unloading destinations indicated in the bid must be in US
dollars per MT. The applicable World Scale rate based on which the freight rate is calculated must also be
indicated in the bid.
3
Bidders must quote Premium/Discounts, if any, in US dollars per MT, not as percentage of FOB price.
4
Bidders must note that no modifications will be permitted to the terms and conditions of the bidding
document/Draft Contract either through the bid form or stipulation elsewhere in the bid including conditions
of Letter of Credit, bid security or perormance security. Any bid deviating to these provisions will be treated as
nonresponsive and rejected.
FORM 2

MUST BE SIGNED FOR VALIDITY AND DATED FOR VALIDITY
2. BID SECURITY FORM
Whereas [name of the Bidder] (hereinafter called “the Bidder”) has submitted its bid dated [date
of submission of bid] for the supply of [name and/or description of the goods] (hereinafter called
“the Bid”)
KNOW ALL PEOPLE by these presents that WE [name of bank] of [name of country],
having our registered office at [address of bank] (hereinafter called “the Bank”) are bound unto
[name of Purchaser] (hereinafter called “the Purchaser”) in the sum of [amount in words and figures]
for which payment well and truly to be made to the said Purchaser, the Bank binds itself, its
successors and assigns by these presents. Sealed with the Common Seal of the said Bank this
______ day of _________________ 19___.
THE CONDITIONS of this obligations are:
1. If the Bidder withdraws its Bid during the period of bid validity specified by the
Bidder on the Bid Form; or
2. If the Bidder, having been notified of the acceptance of its bid by the Purchaser
during the period of bid validity:
(a) fails or refuses to execute the Contract Form, if required; or

(b) fails or refuses to furnish the performance security, in accordance with
the instructions to Bidders;
We undertake to pay to the Purchaser up to the above amount upon receipt of its first written
demand, without the Purchaser having to substantiate its demand, provided that in its demand
the Purchaser will note that the amount claimed by it is due to it owing to the occurrence of
one or both of the above two conditions, specifying the ocurred condition or conditions.
This guarantee will remain in force up to and including thirty (30) calendar days after the
period of the bid validity, and any demand in respect thereof should reach the Bank not later
than the above date.
________________________________
[signature of the bank]
FORM 3

MUST BE SIGNED AND DATED FOR VALIDITY
3. CONTRACT FORM
THIS AGREEMENT made the _____ day of __________ 19_____ between [name of
Purchaser] of [country of Purchaser] (hereinafter called “the Purchaser”) of the one part and [name
of Supplier] of [city and country of Supplier] (hereinafter called “the Supplier”) of the other part:
WHEREAS the Purchaser invited bids for certain goods and ancillary services, viz., [brief
description of goods and services] and has accepted a bid by the Supplier for the supply of those
goods and services in the sum of [contract price in words and figures] (hereinafter called “the
Contract Price”).
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. In this Agreement words and expressions shall have the same meanings as are
respectively assigned to them in the Conditions of Contract referred to.
2. The following documents shall be deemed to form and be read and construed as part
of this Agreement, viz.:
(a) the Bid Form and the Price Schedule submitted by the Bidder;
(b) the Schedule of Requirements;
(c) the Technical Specifications;
(d) the General Conditions of Contract;
(e) the Special Conditions of Contract; and
(f) the Purchaser’s Notice of Award.
3. In consideration of the payments to be made by the Purchaser to the Supplier as

hereinafter mentioned, the Supplier hereby covenants with the Purchaser to provide the goods
and services and to remedy defects therein in conformity in all respects with the provisions of
the Contract
4. The Purchaser hereby covenants to pay the Supplier in consideration of the provision
of the goods and services and the remedying of defects therein, the Contract Price or such
other sum as may become payable under the provisions of the contract at the times and in the
manner prescribed by the contract.
IN WITNESS whereof the parties hereto have caused this Agreement to be executed in
accordance with their respective laws the day and year first above written.
Signed, sealed, delivered by the (for the Purchaser)
Signed, sealed, delivered by the (for the Supplier)

FORM 4

MUST BE SIGNED AND DATED FOR VALIDITY
4. PERFORMANCE SECURITY FORM
To: [name of Purchaser]
WHEREAS [name of Supplier] (hereinafter called “the Supplier”) has undertaken, in pursuance
of Contract No. [reference number of the contract] dated _________________, 19___ to supply
[description of goods and services] ( hereinafter called “the Contract”).
AND WHEREAS it has been stipulated by you in the said Contract that the Supplier shall
furnish you with a bank guarantee by a reputable bank for the sum specified therein as security
for compliance with the Supplier’s performance obligations in accordance with the Contract.
AND WHEREAS we have agreed to give the Supplier a guarantee:
THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on behalf of
the Supplier, up to a total of [amount of the guarantee in words and figures ], and we undertake to
pay you, upon your first written demand declaring the Supplier to be in default under the
Contract and without cavil or argument, any sum or sums within the limits of [amount of
guarantee] as aforesaid, without your needing to prove or to show grounds or reasons for your
demand or the sum specified therein.
This guarantee is valid until the _____ day of______________ 19____.
Signature and Seal of the Guarantors
________________________________________________________________________
[date ]
________________________________________________________________________
________________________________________________________________________
[address]
FORM 5
5. PURCHASER’S NOTICE OF AWARD TO SUCCESSFUL BIDDER
This is to advise [specify name of Seller] (hereinafter called “the Seller”), that the bid
submitted to [specify name of Purchaser] (hereinafter called “the Purchaser”), on [specify date] for
the supply of oil as described in the Purchaser’s bid solicitation, that after review of all of the
bids, that the Contract is to be awarded to your company. The bid documents provided by the
Seller, unless specifically amended by mutual agreement in writing, will serve as the contract
and become active with the Seller’s confirmation of receipt of this Notice and the Seller’s
confirmation within five (5) calendar days, that the Performance Security is in force.
Purchaser requires the performance security to be activated upon notice of this award.
A fully authorized original version of the performance security must be forwarded to the
Purchaser within seven (7) calendar days.
For the sake of good order the Purchaser agrees to sign both of the signed original bid
documents submitted by the Seller which are to serve to fully document the agreement, and
return one signed original to the Seller within seven (7) calendar days, by registered mail.
FORM 6
6. SELLER’S ACKNOWLEDGMENT OF NOTICE OF AWARD
This is to confirm receipt on [specify date of receipt of notice of award] of the Notice of Award
of Contract for the bid which we submitted on [specify date of bid submission] to your company. The
Performance Security which was submitted for your acceptance as part of the bid is now active
and in full force as of [specify date of effectiveness of the performance security ], per your instructions in
the Notice of Award of the Contract. As requested, a duly authorized original of this Performance
Security will be forwarded to your office within seven (7) calendar days by registered mail.
FORM 7
7. INFORMATION ON DISCHARGE PORT/ PORTS
(Purchaser will prepare this Form)

55
Section VIII. Eligibility for the Provision of Goods,

Works, and Services in Bank-Financed Procurement
56 Section VIII. Eligibility for the Provision of Goods,
Works and Services in Bank-Financed Procurement
Public Information Center

Eligibility for the Provision of Goods, Works and Services in Bank-Financed
Procurement
As of January 1998
For the information of borrowers and bidders, and with reference to paragraph 1.6,
footnote 9, of the Guidelines: Procurement under IBRD Loans and IDA Credits, dated
January 1995, revised January and August 1996, and September 1997, set forth below is a list
of countries from which bidders, goods, and services are not eligible to participate in
procurement financed by the bank or IDA.1
• Andorra
• Cuba
• Democratic People’s Republic of Korea (North Korea)
• Liechtenstein
• Monaco
• Nauru
• San Marino
• Tuvalu
In addition, bidders, goods, and services from other countries or territories may be
declared ineligible by a provision in bidding documents if the borrower’s country has excluded
them by a law, official regulation, or act of compliance meeting the requirements of paragraph
1.8(a) of the Guidelines: Procurement under IBRD Loans and IDA Credits.
The Loan/Credit Agreement also prohibits a withdrawal from the Loan/Credit Account
for the purpose of any payment to persons or entities, or for any import of goods, if such
payment or import, to the knowledge of the Bank, is prohibited by a decision of the United
Nations Security Council taken under Chapter VII of the Charter of the United Nations. At
the present time, this prohibition applies to
• Iraq
• Libya
Note
Any questions regarding this list should be addressed to the Senior Manager, Procurement Policy and
Coordination Unit, Operations Policy Department, the World Bank.
57
ANNEX. TECHNICAL NOTE
Notes on the Technical Notes

These notes do not constitute part of the bidding documents and need not be issued to
bidders. They are directed toward Task Managers of the Bank. However, borrowers may
benefit from the advise given.
58 Annex. Technical Note
Technical Note
1. The use of petroleum products will continue to be a major source of energy for the
next few decades. The Bank-financed procurement of these products has been rapidly
growing. The international trading of these products has introduced new techniques which
demand a high degree of skill for efficient buying and selling. Variety of trading methods such
as long term contracts, spot contracts, forward/future contracts and counter trade based on
economic and non-economic considerations are used. The long-term contracts are frequently
used for buying under special Government to Government arrangements. In contrast, the
International Competitive Bidding procedures applicable to the Bank financed procurement
have been recognized by the multinational oil companies as fair, equitable and comprehensive.
These also provide economy, efficiency and transparency in the procurement system.
2. The important market sources for these products are (i) US Gulf Coast/East Coast, (ii)
Northwest Europe, (iii) Mediterranean, (iv) Singapore, (v) Gulf and Arabian, and (vi)
Caribbean. The knowledge of these markets is desirable for economic and efficient
procurement as prices do vary from market to market.
3. The cost of transportation from different geographic locations is also an important

factor contributing to the price. The knowledge about the available tanker sizes and their
rates is desirable. The tanker sizes are generally categorized as follows:
Size Range in 000 MT
1. General Purpose (GP) 16.5-24.99

2. Medium Range (MR) 25-44.99
3. Large Range (LR1) 45-79.99
4. Large Range (LR2) 80-159.99
5. Very Large Crude Carriers (VLCC) 160-319.99
6. Ultra Large Crude Carriers (ULCC) 320 +
4. Some of the developing countries are landlocked and have to depend on seaports of
other countries. In many situations transportation has to be resorted through pipelines which
are old and inefficient or by river, lake, rail and/or road with uncertain availability. Such
countries entirely depend on other countries with adequate port facilities and are likely to
suffer pilferage, leakage, demurrage, and other losses in transportation. Procurement for land-
locked countries should, therefore, be done on CIP basis i.e. supplier should be made
responsible for the cost of handling and transportation to the destination point. Limited
storage capacity in some of the developing countries is likely to result in higher cost by the use
of uneconomic cargo sizes.
5. Other important considerations applicable to the procurement of petroleum products

are:
(i) Price Adjustment - Use of variable prices since both the buyer and seller are
not likely to take a position on future market trends. Long established
publication such as Platt’s Oilgram and Argus provide daily prices for the
Annex. Technical Note 59
petroleum products in major markets. These are accepted as effective

“Marker” by the oil industry.
(ii) Bill of Lading (B/L). The B/L date is of significant importance. This
establishes the port and date of loading of the contracted quantities. The
pricing basis is always linked to the B/L date. As per the current trade
practice, the price of crude oil and petroleum products are based on (a) price
prevalent on the B/L date, (b) 3,5 or 11 days average of price quotations
around the B/L date (c) 5 days average of price quotations after B/L date and
(d) monthly average of price quotations for the month in which B/L date falls.
(iii) Inspection - It is a normal practice to appoint an independent inspector

mutually acceptable to the buyer and seller at the loading and unloading ports
to certify the quantity and quality as per the specified standards. The seller
pays for the cost of the inspector at the port of loading and the buyer pays the
cost of the inspector at the unloading port. The findings of the inspectors are
reflected in the B/L and certification to the buyer.
(iv) Letter of Credit (L/C) - Payment by a Letter of Credit is an important

provision in the sales contract. The buyer opens the L/C in favor of the seller
in an international bank acceptable to the seller. L/C is normally opened 10
days prior to the commencement of laydays and is kept valid for at least 30 to
60 days after commencement of laydays Payments are made in US Dollars.
All local costs for establishing the L/C are borne by the buyer and any bank
charges outside the buyer country are borne by the seller.
(v) Letter of Indemnity (LOI) - The seller is obliged to provide LOI to the buyer
to cover delays in the shipment of documents or loss of documents. The
format of the LOI should be mutually acceptable to both parties and should
include title of the cargo, indemnity against non-production of documents,
right to deliver bills, legal cost, governing law, and an obligation to put the
receiver of the indemnity to funds.
(vi) Laytime - Before commencement of the loading or discharging operations, the

vessel has to be positioned so as to be enabled to receive or deliver the cargo.
When the vessel reaches destination, the master of the vessel has to tender the
notice of readiness of (NOR) of the ship’s arrival at the loading/unloading
terminals which is a condition precedent to laytime. It is the normal oil
industry practice to allow 6 hours from the time of NOR prior to actual
berthing and commencement of loading/unloading. The arrival date of the
vessel is agreed as per nomination procedures which is part of the contract.
(vii) Demurrage - This represents payment agreed in the contract for the use of time
beyond that specified in the contract for loading and unloading. Any excess
time required makes the buyer/seller liable for payment of the waiting of the
vessel at a rate agreed in the contract. Normally, standardized demurrage
provision according to the “Worldwide Tanker Nominal Freight Scale” or
simply under the code name “Worldscale” escalated at average Freight Rate
60 Annex. Technical Note
Assessment (AFRA) a corresponding to the size of the vessel, or rates as

provided in the charter party of the vessel in use is applied.
(viii) Force Majeure - Loading or discharge or sea borne cargo are subject to
disruption or delay. Causes of disruption which are beyond the control of
loading or discharging terminal operators can be described as force majeure
situation.
(ix) Governing Law - Both buyer and seller desire that the governing law and
arbitration should be as prevalent in their respective countries. Since oil is
traded internationally, both buyer and seller are hesitant to accept the unknown
laws governing the contract. Commonly accepted are the English or US laws
with arbitration by the Chamber of Commerce or Uncitral.

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Standard Bidding Documents

The World Bank

Any feedback or queries should be addressed to:

Procurement Policy and Coordination Unit

Section I. Invitation for Bids

Section II. Instructions to Bidders

Section III. Bid Data Sheet

Section IV. General Conditions of Contract

Section V. Special Conditions of Contract

Section VI. Specifications and Schedule of Requirements

Section VII. Sample Forms

Annex. Technical Note

Section I. Invitation for Bids

Notes on the Invitation for Bids

(a) an advertisement in at least one newspaper of general circulation in the Borrower’s

(b) an advertisement in Development Business and/or well-known technical magazines,

(d) optionally, a circular to consular or diplomatic representatives of countries with

SAMPLE FORMAT FOR INVITATION FOR BIDS

BRIEF DESCRIPTION OF GOODS [WORKS]

Loan [Credit] No.

4. Bidding will be conducted through the international competitive bidding procedures

6. A complete set of bidding documents in [insert name of language] may be purchased by

[Insert name of office].

Section II. Instructions to Bidders

Notes on the Instructions to Bidders

These Instructions to Bidders will not be part of the contract.

3. Eligible Goods and Services

B. The Bidding Documents......................................................................................................

6. Clarification and Amendments of Bidding Documents

8. Documents Comprising the Bid

9. Bid Form and Price Schedule

10. Bid Prices and Bid Currencies

12. Period of Validity of Bids

13. Format and Signing of Bid

15. Deadline for Submission of Bids

16. Late Bids

17. Modification and Withdrawal of Bids

E. Opening and Evaluation of Bids

19. Clarification of Bids

20. Preliminary Examination

21. Evaluation and Comparison of Bids

24. Award Criteria

25. Purchaser’s Right to Vary Quantities at Time of Award

27. Notification of Award

28. Signing of Contract

30. Corrupt or Fraudulent Practices

2.2 Bidders shall not be under a declaration of ineligibility for corrupt

B. The Bidding Documents

(a) Instructions to Bidders (ITB)

5.2 The Bidder is expected to examine all instructions, forms, terms,

6. Clarification 6.1 A prospective Bidder requiring any clarification of the bidding

(c) evidence that the goods to be supplied are eligible goods;

(d) bid security;

(e) a detailed description of the essential performance

(f) commentary on the Specifications demonstrating substantial

10.2 Prices quoted by the Bidder shall be subject to adjustment during

(a) a bank guarantee or an irrevocable letter of credit issued by

(b) a cashier’s or certified check.

11.5 Unsuccessful bidders’ bid security will be discharged or returned

11.7 The bid security may be forfeited:

(a) if a Bidder withdraws its bid during the period of bid

(b) in the case of a successful Bidder, if the Bidder fails:

(i) to sign the contract in accordance with ITB Clause 28;

12.2 In exceptional circumstances, the Purchaser may solicit the