The successful bidder is notified of the award after the approval of the government. 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 other relevant matters of contract management) with the successful bidder.
After the end of the contract negotiation and after agreeing on the contract document, both parties (the selected bidder and the implementing agency) sign the contract. Signing of the contract is the last task of the procurement process.
Thereafter, the selected bidder is allowed sufficient time to finalise and complete all agreements with other parties. The bidder enters into agreements with the lender(s), sub-contractors and other parties within a given time period and brings the deal to financial closure.33 Depending on the complexity and size of the project, several months may be required for a project to come to financial close after the contract award is made.
Financial close marks the end of the project development phase. The bidder notifies the implementing agency of the financial close and submits copies of the agreements with the lenders and other parties as required in the contract agreement.
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33. 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.