Common use of Purchasing and Procurement Clause in Contracts

Purchasing and Procurement. 20.1 In the acquisition of plant, equipment, services and supplies for Petroleum Operations, Licensee shall give preference to materials, services and products produced in Sierra Leone, of the same or approximate quality, if such materials, services and products can be supplied in due time at prices, which are no more than ten (10%) higher than the imported items including transportation, insurance costs and customs charges due. 20.2 For the purposes of the provisions of Article 20.1, Sierra Leonean companies shall be mandatorily consulted on the same terms as those used for consulting companies on the international market. 20.3 The Licensee shall always Contract local service providers, to the extent to which the services they provide are similar to those available on the international market, and their prices, when subject to the same tax charges, are no more than ten percent (10%) higher than the prices charged by foreign contractors for similar services. 20.4 In furtherance of the obligations under this Article 20, during the term of this Licence, the Licensee shall prepare, with respect to each Calendar Year, a local procurement statement, containing the following information: a) The amount of expenditure incurred by the Licensee directly, or indirectly through its Contractors and sub-contractors, on goods supplied, produced or manufactured in the republic of Sierra Leone; b) The amount of expenditure incurred by the Licensee directly, or indirectly through its contractors and sub-contractors, on services provided by Sierra Leonean enti- ties; and c) The respective percentages that the expenditures recorded under items (a) and (b) above represent with respect to the Licensee’s total expenditures. 20.5 The local procurement statement shall be submitted to the Director General within sixty 20.6 The Licensee shall in addition to the above be compliant with the Sierra Leone Local Content Agency Act of 2016 and all current regulations in Sierra Leone with respect to procurements and local content compliance.

Purchasing and Procurement. 20.1 In the acquisition of plant, equipment, services and supplies for Petroleum Operations, Licensee shall give preference to materials, services and products produced in Sierra Leone, of the same or approximate quality, if such materials, services services, and products can be supplied in due time at prices, which are no more than ten (10%) higher than the imported items including transportation, insurance costs and customs charges due. 20.2 For the purposes of the provisions of Article 20.1, Sierra Leonean companies shall be mandatorily consulted on the same terms as those used for consulting companies on the international market. 20.3 The Licensee shall always Contract local service providers, to the extent to which the services they provide are similar to those available on the international market, and their prices, when subject to the same tax charges, are no more than ten percent (10%) higher than the prices charged by foreign contractors for similar services. 20.4 In furtherance of the obligations under this Article 20, during the term of this LicenceLicence Agreement, the Licensee shall prepare, with respect to each Calendar Year, a local procurement statement, containing the following information: a) The amount of expenditure incurred by the Licensee directly, or indirectly through its Contractors and sub-contractors, on goods supplied, produced produced, or manufactured in the republic Republic of Sierra Leone; b) The amount of expenditure incurred by the Licensee directly, or indirectly through its contractors and sub-contractors, on services provided by Sierra Leonean enti- tiesentities; and c) The respective percentages that the expenditures recorded under items 20.4 (a) and (b) above represent with respect to the Licensee’s total expenditures. 20.5 The local procurement statement shall be submitted to the Director General within sixtysixty (60) days after the end of each Calendar Year and shall be published in the Sierra Leone Gazette and in, at least one (1) local newspaper. 20.6 The Licensee shall in addition to the above be compliant with the Sierra Leone Local Content Agency Act of 2016 and all current regulations in Sierra Leone with respect to procurements and local content compliance.