Out-Law News 1 min. read
African bank FIDIC contract agreement shows sustainable growth commitment
12 Dec 2024, 3:42 pm
The African Development Bank’s (AfDB) renewed agreement with the International Federation of Consulting Engineers (FIDIC) to use standard form contracts underscores the bank’s commitment to supporting inclusive and sustainable growth across Africa, an expert has said.
Rob Wilkins, construction law and international arbitration expert at Pinsent Masons, was commenting following the significant development that will see the AfDB not only renew but expand its use of FIDIC standard form contracts for the next five years.
Under the terms of the agreements, the AfDB will employ 10 major FIDIC standard form contracts in its main standard bidding documents. This move is expected to enhance the efficient and effectiveness of contract management for projects financed by the bank. The contracts covered by the agreement include reprints of the 2022 FIDIC Rainbow Suite, the latest FIDIC Green Book 2021, and the reprint of the Emerald Book 2024 for Underground Works, among others.
The AfDB initiative represents a key endorsement for FIDIC contracts from a major international funding organisation. This follows similar agreements signed with the World Bank and other multilateral development banks worldwide. The use of FIDIC contracts is seen as a step towards enhancing equity and economy in contract management.
This agreement is expected to provide additional reassurance to financial, institutional, and private equity investors operating in the global market. By adopting FIDIC standard procurement contracts, these investors can effectively mitigate the risks associated with major infrastructure projects and assets.
With the backing of such a prominent international funding organization, the use of FIDIC contracts is poised to play a crucial role in the successful implementation of infrastructure projects throughout the continent.
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