Kuwaiti Somaliland Airports Upgrade Funding Contract

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“The Agreement made on the 3rd day of March 2012, between project implementation Unit, Ministry of Civil Aviation & Air Transportation, Republic of Somaliland, Hargeisa Airport, Hargeisa, Somaliland (hereinafter called the “Employer”) of the one part, and M/s China Hono Group of Chayang, China in association with M/s Somaliland Hono Group (hereinafter called the “contractor”) of the other part.

Whereas the Employer is desirous that certain works be executed, viz strengthening of Runway and Provision of Security Fencing at Hargeisa Airport, Hargeisa Somaliland as such works are more fully described in the documents incorporated by reference herein (said works hereinafter referred to as “the Works”).

Whereas the Employer has accepted a tender by Contractor of the execution, and completion of the works and the remedying of any defects therein, said tender being in the sum of us $ 4,436000.00 (Us Dollars four million four hundred thirty six thousand only).

NOW, THEREFORE, the parties hereto have agreed as follows:

In this Agreement, and unless otherwise required by the context, words and expressions shall have the same meaning as are respectively assigned to them in the Conditions of Contract.

The following documents (hereafter referred to, together with this Agreement , as the “Contract Documents”) Shall be deemed to form and be read and construed as part of this Agreement, viz:

I. The letter of Acceptance dated February 18, 2012;

II. Bank Guarantee for the Advance payment (10%) of the contract amount which is Us $ 443,600);

III. Performance security (10% of the contract amount which is Us $ 443,600);

IV. Form of Tender and the Appendix to the Tender submitted by the contractor;

V. The conditions of contract ( part ii);

VI. The conditions of contract ( part i);

VII. The Technical Specifications;

VIII. The Drawings;

IX. The Bills of Quantities;

X. Other document (s), if any, forming part of the Contract {‘contractors’ letter dated 1st, March, 2012 stating the extension of Apron up to 200m x 50m= 10,000m}.

3. In case of conflict between any provision of this Agreement and a provision in any other document forming part of the contractor Documents, the provisions of this Agreement shall prevail. Subject to the foregoing, the contract Documents shall take precedence in the order in which they appear in the preceding clause 2 of this Agreement.

4. In consideration of the payments to be made by the Employer to the contractor as hereinafter mentioned, the contractor hereby covenants with the Employer to execute and complete the works and to remedy any defects therein in conformity in all aspects with the provisions of the contract.

5. The Employer hereby covenants to pay the contractor, in consideration of the execution and completion of the works and the remedying of any defects therein, the Contract price under the provisions of the contract at the times and in the manner prescribed the Contract.

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