MEMORANDUM OF UNDERSTANDINGBETWEEN THE MINISTRY OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE OF THE REPUBLIC OF SERBIA AND "SINOHYDRO CORPORATION LIMITED"("Off. Herald of RS - Treaties", No. 1/2015) |
This MEMORANDUM OF UNDERSTANDING (MOU) is signed on December 17, 2014 in Belgrade by and between:
The REPUBLIC OF SERBIA, represented by the Minister of Construction, Transport and Infrastructure PhD Zorana Mihajlović, on behalf of the Government (hereinafter referred to as the "Party A")
and
Sinohydro Corporation Limited, a company incorporated and existing under the laws of the People’s Republic of China with its principal address: No. 22, Chegongzhuang West Road, Haidian District, Beijing, 100048, P.R, China
(hereinafter referred to as "Party B").
hereinafter individually referred as "Party" and collectively as "the Parties".
WHEREAS Party A intends to develop (construct) the Highway E70-E75 Belgrade Bypass, Section OSTRUZNICA BRIDGE - PANCEVO (hereinafter referred to as "the Project"). The project shall include two stages: Stage 1 is OSTRUZNICA BRIDGE - BUBANJ POTOK, Sections 3, 4, 5 and 6; Stage 2 is BUBANJ POTOK - PANCEVO.
WHEREAS Party B is a reputable international company with rich experiences of design, construction, financing and investment in infrastructure and energy sectors.
WHEREAS the Parties are aware of the financial situation in Republic of Serbia, the Parties will work together to realize financing for the Project in PPP (Public/Private Partnership), BT (build-transfer), or similar mode by not increasing the public debt of the Republic of Serbia,
WHEREAS the Parties are willing to, based on the Project, establish long term cooperation in the future.
NOW IT IS HEREBY AGREED by the Parties as follows:
1. The Parties express and confirm their interests in cooperation on the Project by signing this MOU.
2. Immediately after this MOU is signed, Party A shall provide all available and existing information, data and studies of the Project to Party B for Party B’s analysis and assessment.
3. After receiving the above-mentioned information, data and studies, Party B will conduct necessary field investigations, for which Party A shall provide relevant assistance for Party B’s safe access to the Projects Site.
4. Based on the analysis and field investigations as mentioned in Article 2 and 3, Party B will prepare and submit a Proposal for building and financing of the Project to Party A.
5. The Parties are willing to sign a binding contract (hereinafter referred to as "the Contract", if Party B’s Proposal as mentioned in Article 4. will be acceptable for the Party A.
6. Based on the potential Contract as mentioned in Article 5, one of the scenarios and model could be that the Party B is responsible for obtaining the finance, construction and maintenance of the Project, while Party A is responsible for operation of the project and implementing repayment of due amount to Party A in stipulated method and time according to the signed Contract. Parties will assess other types of financing the Project as well.
7. Part B shall maximize the use of local resources in its construction proposal.
8. Each Party should bear the cost and the fees incurred from its own obligations during the MOU validity period.
9. Both Parties agree to keep the contents of this MOU strictly confidential from any third party or parties, except the relevant Governmental authorities and financing banks and third party representatives engaged by the Parties for this Project for the purpose of necessary review and approval. The confidentiality obligations and undertakings set out in this MOU do not apply to information which is:
(1) if receiving Party receives approval for disclosure from the other Party;
(2) at the time of disclosure to the other Party, in the public domain or subsequently comes into the public domain other than by reason of a breach of this MOU; or
(3) already lawful in the other Party’s possession on a non-confidential basis prior to its disclosure or which is known to the other Party before the date the information is disclosed.
The Parties acknowledge and agree that their confidentiality obligations and undertakings under this MOU shall be continuing one year upon termination or expire date of this MOU.
10. This MOU shall come into effect upon the date of its signature by both Parties and shall remain valid and enforceable till December 31, 2015.
11. It is recognized and understood by the Parties that, except Article 9, this MOU is of non-binding nature and that its sole purpose is to express the willingness of the Parties to proceed with the efforts aimed at the quick and successful implementation of the Project and provide each of them with the basic understanding of the intentions of the other respective Party, and that only later individual agreements made in writing and executed in line with the regulated procedures of the Republic of Serbia will have the binding effect on each of the Parties.
12. This MOU creates no right of exclusivity for either Party. This means that either Party may enter into negotiations and/or enter into an agreement with persons not involved in or party to this MOU, whether in relation to the Project or any other matter connected hereto.
13. Any waiver of rights and obligations under this MOU shall have legal effect only if submitted in writing and signed by authorized representatives of the Parties.
14. Laws in force in the Republic of Serbia shall apply to rights and obligations arising from the MOU.
15. Any dispute between the Parties in connection with or related to execution of the activities from this MOU, and/or its implementation, will be settled amicably.
16. This MOU shall terminate upon the first occurrence of the following events:
(1) the expiry date of this MOU as provided in Article 10; or
(2) mutual agreement on termination or replacement of this MOU by the Parties.
(3) unilateral cancelation of the MOU by any of the Parties starting 30 days upon written cancelation notice sent to the other Party
17. This MOU is made in Two (2) originals in English and Serbian and Each Party keeps one original copy.
In case of discrepancies in interpretation, the Serbian version shall prevail.
IN WITNESS WHEREOF, the undersigned, being the authorized representatives of the Parties hereto have caused this MOU executed as of the date and the year first written hereinabove.
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For and on behalf of Republic of Serbia Minister of Construction, |
For and on behalf of Sinohydro Corporation Limited President of Sinohydro |
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PhD Zorana Mihajlović |
Mr. Liang Jun |