MINISTRY OF TRANSPORT, COMMUNICATIONS,
HOUSING AND CONSTRUCTION
Service Contract for Maintenance of Rural Roads
Section: [name of section] – [name of section], [name of Province]
41,200 km
[name of Department]
No. [number of contract]
Between the MINISTRY OF TRANSPORT, COMMUNICATIONS, HOUSING AND
CONSTRUCTION, represented by Mr. [full name], Executive Director of the Rural Roads Program of
the Special Project on Transport Infrastructure Rehabilitation, of Peruvian nationality, identified by D.N.I
No. [number], hereinafter referred to as “THE PROGRAM,” and, on the other side, the CIVIL
ASSOCIATION [name], legally domiciled in [town/village], [name] District, [name] Province,
Department of [name of Department], with R.U.C. No. …, represented by its President, Mr. [full name],
of Peruvian nationality, identified by D.N.I. No. [number], hereinafter referred to as “THE
ASSOCIATION,” under the following terms and conditions:
CLAUSE I
:
BACKGROUND
1.
THE PROGRAM is an organ of the Special Project on Transport Infrastructure Rehabilitation,
which is in charge of the Temporary Program on the Rehabilitation and Maintenance of the Secondary
Road Network, whose purpose is to re-establish the serviceability of the most important secondary roads
identified under the program and ensure their subsequent maintenance.
2.
THE ASSOCIATION is a legal person in private law, constituted in the form of an association,
registered in Record No. [number], Entry [number], of the Register of Legal Persons – Associations,
whose corporate purpose is the conservation and maintenance of rural roads.
3.
THE PROGRAM, for the purpose of meeting the stated targets with respect to the rehabilitation
and maintenance of secondary roads under its responsibility, requires that THE ASSOCIATION
maintain the rural road between the localities of [name of section] – [name of section] and has accepted
the bid of THE ASSOCIATION, under the terms of a direct contract and in accordance with the norms
established in the Program Operation Manual.
_____________________________________________________________________________________
CLAUSE II
:
PURPOSE
For the purposes of the present contract, THE ASSOCIATION undertakes to conserve and maintain
41,200 km of rural roads between the localities of [name of section] – [name of section] in [name]
Province, Department of [name].
SPECIAL PROJECT ON TRANSPORT INFRASTRUCTURE REHABILITATION
RURAL ROADS PROGRAM
address
Tel.: .... Fax: …
MINISTRY OF TRANSPORT, COMMUNICATIONS,
HOUSING AND CONSTRUCTION
CLAUSE III
:
REFORESTATION
In compliance with the Specific Agreement between the National Project for the Management of
Watershed Basins and Soil Conservation (PRONAMACHCS) and the Rural Roads Program (PCR), THE
ASSOCIATION, within its competence, undertakes to participate, free of charge, in reforesting the
slopes and areas surrounding the rural road being maintained under its responsibility, by means of the
planting, maintenance and care of seedlings provided by PRONAMACHCS, which in turn shall provide
technical assistance to its members and workers.
CLAUSE IV
:
ECONOMIC ASPECT
For carrying out the maintenance work, THE ASSOCIATION shall receive the amount of [type the full
amount in national currency] (in figures), which shall include General Sales Tax in the amount of [type
the full amount in national currency] per km/mo. (in figures), an amount that shall remain fixed during
the period of validity of the contract and shall not be subject to readjustment.
CLAUSE V
:
SUPERVISION
The Rural Roads Program shall be responsible for the supervision of maintenance services through:
Name:
[name] LOCAL UNIT
RURAL ROADS PROGRAM
Address:
[full address]
THE PROGRAM shall also have a team of Supervisors, composed of students from the last two courses
of study and graduates of the university in various academic programs, whose function shall be to
coordinate, direct, and support the activities being carried out by the Road Maintenance Associations or
Committees, providing them with technical and legal assistance.
THE ASSOCIATION shall be subject to the guidelines established by the said Supervisors with respect
to the provision of service, in addition to the supervision carried out by THE PROGRAM through the
Heads of Local Units.
CLAUSE VI
:
ADVANCE PAYMENT
THE PROGRAM, at the request of THE ASSOCIATION, may grant to the latter an advance payment
for the procurement of tools, for the purposes of which THE ASSOCIATION, within a maximum period
of 15 days from the date of signing of the contract, shall submit a tool budget to the appropriate Local
Unit for review, approval, and subsequent procurement. The amount of advance payment granted by
THE PROGRAM shall be deducted from the bill for the relevant month.
In addition, THE PROGRAM may supply uniforms free of charge to THE ASSOCIATION, marked
with the logotype of the Ministry of Transport and Communications, which shall be used exclusively for
the provision of maintenance services.
SPECIAL PROJECT ON TRANSPORT INFRASTRUCTURE REHABILITATION
RURAL ROADS PROGRAM
address
Tel.: .... Fax: …
MINISTRY OF TRANSPORT, COMMUNICATIONS,
HOUSING AND CONSTRUCTION
CLAUSE VII :
CONTRACTUAL RESPONSIBILITY
THE PROGRAM expressly states that no type of contractual relation exists with the staff of THE
ASSOCIATION, which has the complete and sole responsibility for making the payment referred to in
Clause IV.
CLAUSE VIII :
ENTRY INTO FORCE AND DURATION
The Road Maintenance Service Contract shall enter into force as of the date of handing over of the
rehabilitated rural road.
The contractual period shall be ONE (1) month as of the date of handing over of the rural road.
CLAUSE IX
:
TERMINATION OF THE CONTRACT
The present contract shall terminate normally upon the completion of the bilateral contractual obligations.
CLAUSE X
:
APPLICABLE LAWS
The laws governing the Contract shall be the prevailing laws applicable in Peru and the loan agreements
signed with the IDB and the World Bank.
Institution whose arbitration procedures shall be used: Lima Chamber of Commerce.
Venue of arbitration: Lima, Peru.
CLAUSE XI
:
ANNEXES
The following annexes shall form part of the Contract:
Annex 1 General Conditions
Annex 2 Technical Manual for Routine Maintenance of Rural Roads
Annex 3 Articles of Incorporation of the Road Maintenance ASSOCIATION.
In witness whereof the Parties sign the present document in duplicate in the city of Huaraz on
January 1, 2001.
[signature]
[full name]
Executive Director
THE PROGRAM
[signature]
[full name]
President of the CIVIL ASSOCIATION
[name]
SPECIAL PROJECT ON TRANSPORT INFRASTRUCTURE REHABILITATION
RURAL ROADS PROGRAM
address
Tel.: .... Fax: …
MINISTRY OF TRANSPORT, COMMUNICATIONS,
HOUSING AND CONSTRUCTION
ANNEX 1
GENERAL CONDITIONS OF THE CONTRACT
1.
Investigative report on rural road area.
THE ASSOCIATION shall submit a sworn statement that it has inspected the area where the
rural road is located.
2.
Risk assumed by THE ASSOCIATION
2.1
3.
Risk assumed by THE PROGRAM
3.1
4.
THE ASSOCIATION shall be responsible for the safety conditions of all activities
being carried out in the maintenance area.
Obligations of THE ASSOCIATION.
5.1
6.
THE PROGRAM shall assume the following exceptional risks to the extent that they
directly affect the maintenance work: war, invasions, mutiny, civil commotion or
disorder, and contamination from radioactive, toxic, or explosive nuclear fuel or waste.
Safety conditions
4.1
5.
THE ASSOCIATION shall assume the risk of all losses or damages to material goods
and the injury or death of persons that occur during the period of validity of the contract
or as a consequence of the contract.
THE ASSOCIATION shall comply with the service execution rules, which shall be
overseen by the supervisor, especially with regard to the intensive use of labor.
Extension of the contract
The parties may extend the time limit of the contract by mutual agreement, following an
assessment of the results achieved during its period of validity.
7.
Reforestation
By virtue of the Specific Agreement on Institutional Cooperation signed on February 15, 1998,
between PRONAMACHCS and PCR, which forms part of the contract, and whose purpose is to
establish the competencies and terms of cooperation and coordination for the development and
efficient implementation, inter alia, of the reforestation of the slopes and areas surrounding the
sections of rural roads being maintained, THE ASSOCIATION, within its competence,
undertakes to supply free of charge sufficient manual labor to reforest the area contiguous to the
section of the rural road under its responsibility.
SPECIAL PROJECT ON TRANSPORT INFRASTRUCTURE REHABILITATION
RURAL ROADS PROGRAM
address
Tel.: .... Fax: …
MINISTRY OF TRANSPORT, COMMUNICATIONS,
HOUSING AND CONSTRUCTION
For its part, PRONAMACHCS shall supply the appropriate species of forest seedlings and shall
provide training and technical assistance to members and workers of the Program associations or
committees responsible for reforesting the slopes and areas surrounding the rehabilitated rural
roads.
COST CONTROL
8.
Contracted amount
8.1
9.
The contracted amount shall remain fixed during the period of validity of the contract and
shall not be subject to readjustment.
Payment certificates
9.1
THE ASSOCIATION shall provide monthly billing statements to the supervisor for the
work completed.
9.2
Bearing in mind that the work shall be measured by results, the supervisor shall
constantly verify the conditions of road serviceability, the drainage system, and
vegetation control and shall issue a report authorizing the relevant monthly payment,
making any justifiable deductions.
For the payment to be made, it shall also be an essential requirement to attach a “Good Quality
Service Certificate,” which must be issued by the District Mayor of the maintenance area.
10.
Payments
10.1
11.
Payments shall be made in monthly installments, following the issue of the report by the
supervisor and certification by the District Mayor, as indicated in paragraph 9.2.
Cost of repair
11.1
THE ASSOCIATION shall repair at its own cost any losses or damages and harm
suffered by the roads or the materials being used to build them, and also when such
losses, damages, or harm are caused by their own acts or omissions.
12.
Failure to comply with the terms of this Contract on the part of THE ASSOCIATION may result
in the cancellation of the Contract.
13.
The Local Unit - PCR shall approve the number of staff that it considers technically indispensable
for the fieldwork.
14.
In the case of emergency, THE ASSOCIATION shall make available its staff to carry out
support activities to allow for minimum serviceability. It shall be responsible for reporting the
emergency to the corresponding Municipality and to the Local Office.
SPECIAL PROJECT ON TRANSPORT INFRASTRUCTURE REHABILITATION
RURAL ROADS PROGRAM
address
Tel.: .... Fax: …
Ministry of Transport, Communications,
Housing and Construction
Rural Roads Program
MINUTES OF MEETING ON THE HANDOVER OF LAND
FOR ROUTINE MAINTENANCE SERVICES
The following persons met in the City of [name], Department of [name], at 8 a.m. on January 1, 2001:
On behalf of the RURAL ROADS PROGRAM, in the Ministry of Transport, Communications,
Housing and Construction, Mr. [name], [position], [name of provincial department], [name of
province] and on behalf of the CIVIL ASSOCIATION “SANTA TERESITA DE CHALHUA,” Mr.
[name], President, handed over the land where the routine maintenance service will be executed for a
period of 1 month on the rural road [names of localities], the total length of which is 41,200 km, included
between the localities of [names of localities],. The details are as follows:
SECTION:
[names of sections]
TOTAL LENGTH:
41,200 km
It was also verified that the land is compatible with the scope of the Contract and that it is available for
the initiation of the routine maintenance work.
Accordingly, the instructions issued by the Executive Board have been followed, pursuant to Rural Road
Maintenance Contract [number of contract].
Consequently, the Meeting on the Handover of Land for Routine Maintenance Services rose at
10 a.m. of the same date, and as an expression of agreement with the terms of the present minutes, the
following have signed this document:
FOR THE PROGRAM:
FOR THE ASSOCIATION:
/signature/
[Name]
[Position]
[Name of department, province]
/signature/
[Name]
President of the CIVIL ASSOCIATION
[name of association]
SPECIAL PROJECT ON TRANSPORT INFRASTRUCTURE REHABILITATION
RURAL ROADS PROGRAM
address
Tel.: .... Fax: …
BILL OF EXPENDITURES: RURAL ROAD MAINTENANCE SERVICES
DEPARTMENT OF ANCASH
Contract No.:
[number]
Association:
Project:
ROAD MAINTENANCE ASSOCIATION
[name of association]
Rural Road Maintenance – [name of Province].
Sections:
[names of sections]
Length:
25,000 km
Period: 01/01/2001 – 01/31/2001
Contract Amount: [amount] excl. taxes
[amount] incl. taxes
Execution Period: 1 month
Beginning 01/01/2001
Project: Rural Road Maintenance: RR [names of sections]
Valuation No.
Gross
Amortization Net
Taxes Guarantee
Net to Be Paid
Amount
Advance
Valuation
Fund
1
3,398.52
0.00
3,398.52
611.73
0.00
4,010.25
TOTAL
3,398.52
0.00
3,398.52
611.73
Amount to be paid to Asociación [name of association] = [in figures]
0.00
4,010.25
Approved by:
/signature/
[name]
Field Officer [illegible]
[name of Province]
Rural Roads Program
PERT
/signature/
[name] Contract Adm.Eng.
Local Head
[name of Province]
Rural Roads Program
PERT
[Seal]
Proj. Sup.
ATTESTATION
The present document hereby certifies that the Road Maintenance Civil Association [name of
association], Rural Roads Program (PCR), Special Project on Transport Infrastructure Rehabilitation,
in the Ministry of Transport, Communications, Housing and Construction, is carrying out routine
maintenance work with determination and good will, ensuring the serviceability of the roads for
vehicle traffic, from January 10 to January 31 of the current year, on the 25,000-km section [name of
sections]. The road is still serviceable, despite the presence of a considerable number of potholes.
Yungay, January 31, 2001
[Signature]
Provincial Mayor
[name of Province]
[A number of official stamps with initials appear on each page of the Spanish document]