Where failure to pay within the deadline set in the Special Administrative Clauses is attributable to the Project Owner, the Delegated Project Owner or the paying authority, the contract holder shall as of right by entitled to default interest calculated from the day following expiry of the deadline up to the day of issue of the “settlement” notice by the paying authority.
The default interest rate shall be the corporate lending rate of the Bank of Central African States (BEAC), increased by one (1) point.
For payments in a currency other than the CFA franc, the default interest rate shall correspond to the discount rate applied by the Bank issuing the currency, increased by at most one (1) point.
The amount of default interest shall be calculated using the formula below:
I = M x (n/360) x (1) where:
M = Amount, inclusive of taxes, owed to the holder;
N = Number of calendar days of default;
I = BEAC corporate lending rates increased by one (1) point or discount rate applied by the Bank issuing the currency involved, increased by at most one (1) point, as the case may be.
Default interest may not apply to amounts already comprising compensation for delayed payments.
Default interest shall not be taxable.
In case of overrun of the contractual period attributable to the contract holder, he shall be liable to a delay penalty the amount of which shall be fixed as follows, except otherwise specified in the contract:
(a) 1/2000th (one two thousandth) of the initial contract tax-inclusive amount per calendar day of delay from the first to the thirtieth day beyond the contract period;
(b) 1/1000th (one thousandth) of the initial contract tax-inclusive amount per calendar day of delay beyond the thirtieth day.
For conditional tranche contracts, the periods and amounts to be taken into account shall be those of the tranche under consideration.
The remission of contract delay penalties may be decided by the Project Owner or the Delegated Project Owner only after the contract delay penalties of the public contracts regulatory body.
A copy of the penalty remission decision, backed by the above-mentioned contract delay penalties, shall be forwarded to the public contracts regulatory body for all intents and purposes.
The penalties for exceeding the contractual period notwithstanding, the contract may provide for specific penalties for non-compliance with the technical and safety measures.
In any case, the cumulative amount of penalties shall not exceed 10% (ten per cent) of the tax-inclusive amount of the initial contract and its amendments, as applicable, under pain of termination.
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