After the approval of government the successful bidder is notified of the award. The implementing agency negotiates the final contract document (not the basic terms but details of implementation arrangements such as establishing dates, identifying the relevant authorities/officials on both sides and relevant other matters of contract management) with the successful bidder.
| After the end of the contract negotiation and agreed upon the contract document, the bidder is allowed sufficient time to finalise and complete all third party agreements. The selected bidder enters into agreements with the lender(s), sub-contractors and other parties within a given time period and bring the deal to financial closure.42 Depending on the complexity and size of the project, four to six months or even longer time may be required for a project to come to financial close after the award notification is made. | Financial close |
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Signing of the contract by the government agency and the private party is the last task of the procurement process. After the financial close, both parties sign the contract and the project implementation phase begins.
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42 Financial close means the date on which the financing documents in respect of financial assistance for the project to be provided by the lenders (by way of loans, advances, subscription to debentures and other debt instruments, guarantees, etc.) have become effective and the concessionaire has immediate access to such funding.