Subject to the provisions of loan agreements or conventions or international conventions, any payment under a public contract shall be by bank transfer to a banking institution or an approved first-rate financial institution governed by Cameroonian law, in accordance with the instruments in force, or by letter of credit.
Drawings on external financing credit shall be subject to prior endorsement by the Autonomous Sinking Fund.
Any change of bank domiciliation shall be only through contract amendments.
Transactions carried out by the Administration’s contracting partner and likely to give rise to payment of advances, payments on account or final payment, shall be recorded in writing or, as appropriate, in accordance with the terms and conditions specified in the General Administrative Clauses.
ADVANCES
Where expressly provided for in the Special Administrative Clauses, a start-off or supply advance may be granted to the Administration’s contracting partner to carry out the operations required for the execution of the services under the contract.
The Administration’s contracting partner may, upon simple request to the Project Owner or the Delegated Project Owner, and without any justification, obtain a “start-off” advance whose tax inclusive amount may not exceed 20% (twenty per cent) of the initial contract price for works or intellectual service contracts and 40% (forty per-cent) for supply contracts.
The rates referred to above shall be calculated based on the initial contract amount, or the amounts corresponding to each tranche for tranche contracts.
In the case of blanket purchase contracts, the start-up advance amount shall be calculated based on the maximum amount budgeted for a given period.
The start-up advance shall be refunded by deduction from the amounts owed to the contract holder during the execution of the contract, in accordance with the contract terms and conditions. Such refund shall start when the amount of services provided under the contract, expressed in basic price, reaches or exceeds 40% (forty per-cent) of the initial price of the contract or of the tranche, and end when the rate reaches 80% (eighty per cent). Where the contract does not provide for payment on account and is subject to payment threshold, the start-off advance shall be deducted once from the single payment.
The start-off advance must be fully guaranteed by a banking institution governed by Cameroonian law or an approved first-rate financial institution, in accordance with the instruments in force.
The start-off advance referred to in the law shall be paid to the Administration’s contracting partner in accordance with the terms and conditions laid down in the Special Administrative Clauses.
The payment provided for in the law shall be made after the required guarantees have been provided, in accordance with the provisions of the code.
Advances for supplies may be granted to cover commitments made to execute works, supplies or services under the contract.
Each contract must determine the special administrative or technical conditions for advance payments, in accordance with the rules provided for in the code.
Advance payments for supplies shall be made upon production of disbursement supporting documents verified by the Project Owner or the Delegated Project Owner.
Advance payments for supplies shall be subject to the deposit, on the site or its annex, of materials, raw materials or manufactured objects intended for the execution of the contract provided that;
- They were procured on a freehold basis and effectively paid for by the Administration’s contracting partner;
- They are allotted such as to leave no doubt regarding their destination;
- They can be inspected by the Project Owner or the Project Manager designated for that purpose.
Advance payments for supplies made in respect of prior expenditure should be monitored in the co-contractor’s accounts until they are cleared. They shall be reimbursed, at a rate stated in the contract, by deduction from the amounts subsequently owed to the holder as payment on account or balance. The reimbursement rate shall consider the proportion of items that gave rise to advance payment in the part of the contract already executed.
In any case, the company shall be responsible for guarding the materials for which the advance payment for supplies was made until the acceptance of the works.
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