This Memorandum of Agreement (“Memorandum”)
is made the 16th. day of March 2015
Between
(1) DM CONSTRUCTION & TRADING CO.LTD, Civil & Structural, Mechanical & Electrical located at Nong Bone Road, Ban Phonexay, Ventiane, Lao PDR of the other part.
and
(2) .............................................................................................................................................................................
(......... and the DMC hereinafter shall be referred to as the “Parties” and each a “Party”).
A. WHEREAS;
1. DM CONSTRUCTION & TRADING CO.LTD is a registered Civil & Structural, Mechanical and Electrical (M&E) Engineering and Construction Company based in Lao PDR with relevant experience and financial capacity to undertake infrastructure projects, specifically into Road Construction and Water and Waste Treatment services.
2. ...... GROUP is a Group of Companies based in Malaysia and having investments into Telecommunication, Water and Alternative Power Generation, Real Estate Development and other Humanitarian related projects in Malaysia, Vietnam, Lao PDR and Thailand.
3. That ...... Group requires DMC name, credentials and local engineering experiences (herein “DMC services”) where applicable to submit a bid/propose for the Road Construction Project identified by DMC as follows:
(i). Section 1,
Project 1 – Road from Jouth Song to Nabuab Village – 33.69 KM
Project 2– Road from Specific Economic Zone and Water and Waste Treatment facilities
(ii). Section 2,
Project 1 – Road from Vientiane City to Nahai Village – 50 KM
Project 2 – Road from Ventiane City to Phontong District – 57.3 KM
Project 3 – Road from Phontong to vangvieng – 83.7 KM
Project 4 – Road from Hai Village to Pakxan District – 91KM
Herein shall be referred to as “The Road Projects” with an estimated project investment value of US Dollars 901.05 Million (Nine hundred and one point zero five Million US Dollars).
The meeting agreed. The urgent project starting is to construct the Road NR 13S from Joudsong-Ban Nabouap thakek district, Khammouane Province with the length of 33.60 Km by the estimated cost of US$ 103,65 million together with the Water Supply and the Waste Water project in the special Economic Zone in Thakek district, Khammouane Province near the Friendship Bridge Lao-Thai by the estimate cost US$ 25,500,000.
4. The Financial assistance derived from ...... Group herein shall be referred to Off- Shore Funding secured by ....... Group for the projects mentioned herein.
5. .........Group and DMC agree in principle for the incorporation of undertake the bid or proposal to the Lao Government for a Build, Operate and Transfer (B.O.T) basis for a service concession of the maximum allowable period.
6. This Memorandum sets forth the general understanding and agreement of the Parties with respect to the Project and with respect to their intent to enter into a definitive Joint Venture agreement to undertake the Project as NEWCO, prior to finalisation and execution of the same.
Now This Memorandum Witnesses The Understanding Of The Parties As Follows:
2. Start of Work
1. This Memorandum seeks to reduce the scope of negotiations between the Parties in respect of the terms and conditions of the Project by setting out in Clause 4 herein below the salient features of the commercial terms of the Project as agreed by the Parties.
2. In order to avoid loss of time, the Parties are expected to commence all work related to the Project immediately following its acceptance of this Memorandum.
3. Term
1. The duration of validity of this Memorandum shall be from its date above and terminate:
(a) when the Joint venture company is duly been incorporated and legalised; or
(b) if the parties fail to secure a successful bid / concession for the Project from Ministry of Public Works and Transport, Department of Roads , Lao PDR within a period of two (2) months for the FS projects in section 1 from the date of this Memorandum; or
(c) if any Party breaches any of its material obligations under this Memorandum and fails to remedy the same within seven (07) days upon receiving written notice to do so; or
(d) if either Party or any company of which it is a subsidiary becomes subject to an administration order or makes any voluntary arrangement with its creditors or if either Party is subject to any winding up proceedings or has a winding up order made against it; or
(e) on any earlier date as mutually agreed to by the Parties in writing.
Upon the termination of this Memorandum, save for accrued rights or obligations, the Parties shall not have any continuing obligations to each other. The Parties shall upon termination cease using and return all confidential information belonging to the Party disclosing or owning the same.
2. The Parties may extend the term of this Memorandum if it would otherwise terminate pursuant to Clause 4(a).
3. The Parties agree in principle, that in the event the project is successfully secured by DMC and an award and contract for the project concession is executed, the initial term for this Road Project Concession period shall be no less than Thirty (30) years from date of Concession service commences and has further options for renewal for a reasonable period.
4. Salient Features of the Project
The salient features of the Collaboration shall be as follows:
(a) The primary roles of the Parties in the Project are as Business DMCs jointly articipating in the bid / proposal for the road project of Lao PDR;
(b) DMC agrees to offer DMC’s name, credentials and financial assistance in complying to all Bid Terms and Conditions of the Road Project.
(c) The Parties are to collaborate on an exclusive basis with regards to the Road Project and Water projects.
(d) The DMC hereby agrees that neither itself nor any of its related companies shall provide similar services or attempt to circumvent to that offered under this Memorandum.
(e) ........ Group further undertakes that in event of the proposed Project is Awarded, and Contract executed, and Project is implemented jointly; TT Group shall indemnify DMC and TT Group shall be fully responsible for any Project delays and settlement (if any) of any Government levies and related financial obligations.
(f) ........Group and DMC shall mutually agree first to the Contract Concession Terms and Conditions of Road Project after each Party Engineering expertise (Consultants) have scrutinised and established the “Feasibility” of the Road projects before acceptance and execution of the Project Contract document with the Lao Government.
(g) ........Group will response all expenses for FS projects in section 1.
(h) In the event of any shortfall on capital contribution, ....... Group shall provide the advances to match the equity and as such .......Group shall negotiate with DMC for a deductible revenue stream from the BOT concession profits to repay its advances over a reasonable period of time.
5. Confidentiality
1. No Party shall make any announcement with respect to the negotiations or otherwise in respect of the matters contemplated by this Memorandum at any time, except with the consent of the other Party.
2. The Parties agree that the contents of this Memorandum and all information provided by one Party to the other in connection with this Memorandum or in the course of the discussions and negotiations of the Project will be held in strict confidence by each Party and its respective officers, employees, advisors, agents and servants other than such information which is or becomes available to the public by publication or otherwise through no fault of the recipient Party and shall not use or disclose any such information except:
(a) with the consent of the other Party and in accordance with such conditions as may be mutually agreed upon; or
(b) in compliance with any applicable statutory or regulatory rules.
6. Cost and Expense
Each Party shall bear its own cost and expense in respect of the preparation, negotiation and/or the execution of this Memorandum.
7. Notices
1. A notice or other communication including, but not limited to, a request, demand, consent or approval to or by a party to this agreement:
(a) must be in legible writing and in English addressed as shown below:
if to..........................................................
Attention:...............................................
if to the DMC:
Attention : The General Manager
DM CONSTRUCTION & TRADING CO.LTD
Nong Bone Road , Ban Phonexay , Ventiane, Lao PDR
Tel: (856-21) 415219
Fax: (856-21 414471
Email: dmcl_laos@yahoo.co.uk
Attention: Mdm.Douangmala MATMANISONE
(b) is deemed to be given by the sender and received by the addressee:
(i) if by delivery in person, when delivered to the addressee;
(ii) if by post, 5 days from and including the date of postage; or
(iii) if by facsimile transmission, when received by the addressee in legible form, but if the delivery or receipt is on a day which is not a business day or is after 4.00 pm (addressee's time) it is deemed to be given at 9.00 am on the next business day;
(c) can be relied on by the recipient and the recipient will not be liable to any other person for any consequences of that reliance if the recipient believes it to be genuine, correct and duly authorised by the sender.
8. Miscellaneous
1. Any claims, differences or disputes arising out of or in connection with this Memorandum, including any question regarding its existence, validity, termination or its performance, or in connection with arrangements regarding the performance of this Memorandum ("Dispute") shall be settled:
(i) by an amicable effort on the part of the Parties; and
(ii) in accordance with the provisions of this Memorandum, regarding its performance or otherwise.
An attempt to reach an amicable settlement shall be deemed to have failed as soon as one of the Parties so notifies the other Party in w