1. FINANCIAL-ADMINISTRATION & LOCAL BANK FUNDING

2. FINANCIAL-ADMINISTRATION • Procurement and NPA Guidelines • Loan Agreement Terms • Internal Financial Circulars (NWSDB) • Budgeting – (Adequate GOSL and Local bank funds allocation) • Compliance of contract documents with ICTAD, FIDIC and SBD terms • VAT EXEMPTIONS

3. FINANCIAL-ADMINISTRATION • Funds Management • Adequacy of loan amount • Interest Rates and Grace period • Repayment of Principal and Interest • debt covenants • Loan and Grant Components • Return on Investment and achievement of revenue targets (domestic and industrial connections based on the commercial area) • Vat exemptions

4. Issues Related to the payments • Insufficiency of funds received from GOSL in order to made payments on time. • Submission of bills without having adequate budget allocation • Lack of payment terms in the contract documents (Ex: Not paying the demurrage on custom duty payments, release of retention, termination clauses with regard to recovery % on balance work to be completed, Tax clauses) • Scope of the contract are not properly defined in the BOQ. (Ex: Considerable extent of savings orders) • Non availability of time extensions and variation order approvals along with relevant supporting documents • Arithmetical errors and claiming of already omitted items again in the progress bill • Submission of variation order payments after the final bill

5. Issues Related to the payments • Not provided the required documents as mentioned in the contract documents. Further, acceptability of those documents are not cerficed. • Allocated Price escalation amounts are not specified in the contract documents. However, submit the price escalation claims for the payments. • Not provided the actual bills for provisional sum items • Signatures are unable to verify. Not placed rubber stamp on the signatures of the authorized officer. (GM Circular- Including name and designation) • Non tax invoices are submitted for VAT payments

6. Issues Related to the payments • Guarantees • Submission of conditional Guarantees • Conditional Taking over certificates are submitted and request to release the performance guarantees. • Not responding the letters send to the RSCs regarding the expiration of bonds and requirement of extensions • Directly send the letters to the bank to release guarantees without submission of completion certificates.

7. IMPACTS OF LOCAL BANK FUNDING • Interest rates & Repayment conditions match with the revenue targets (direct cost ,other overheads, financial charges) • Determination of loan & grant components • Involvement of treasury- entering to the loan agreements. • Requirement of timely repayments due to penalties, risk of seizure of properties in case of default (debt covenants) • Circulation of funding within the country

8. THANK YOU