International Procurement Guideline

Chapter 1. Introduction

Article 1. Purpose

The purpose of this Guideline is to provide for the matters regarding the procurement and contracting activities conducted by Korea International Cooperation Agency(hereinafter referred to as “KOICA”) according to the Article 42 of KOICA regulations and implementing rules on procurement and contracting in respect of the Foreign Grant Assistance Program, thereby carrying out its project in a proper and efficient manner.

Article 2. Definition

In this GGuuiiddeelliinnee, the following terms shall have the meaning set forth below: 1. The "International Bidding" means a bid to supply goods, construction of works or services in which domestic residents or foreigners may participate, and shall include a Contract ad libitum. 2. The "Open Competitive Bidding" means a bid which any person with qualifications may submit. 3. The "Limited Competitive Bidding" means a bid in which such persons as designated by KOICA may participate. 4. The "Contract ad libitum" means an agreement in which the counterparty is determined by KOICA not by means of a competitive bid. 5. The “Headquarter Contracting” means the tender invited by KOICA Head Office.

6. The “Overseas Office Contracting” means the tender invited by any of KOICA Overseas Offices. 7. The “Host Country Contracting" means the direct execution of contracts by a Host Country, using its own procurement system.

Article 3. Principle

KOICA shall select the counterparty on a fair and impartial basis to enter into the agreement under this Guideline, and shall not provide any information regarding the procurement in a discriminating manner.

Article 4. Sorts of Contract Subject and Selection of Contracting Methods

(1) The agreement governed by this Guideline shall be either a contract to be executed by KOICA or a contract to be executed by an agency of the Host Country while a contract to be executed by KOICA shall be either the Headquarter Contracting or the Overseas Office Contracting. (2) The contract governed by this Guideline shall be, in principle, by means of the Headquarter Contracting; provided, however, that the Overseas Office Contracting or the Host Country Contracting method may apply if:

1. It is unlikely to attain the procurement objectives by means of the bidding conducted only by domestic enterprises; 2. Since the tender period is too short, it is difficult to select the concessionaire within the given time frame if the bidding is conducted domestically; 3. It is deemed that the cost of procurement through domestic enterprises are materially higher than that through local enterprises in the Host Country;

4. It is deemed that the bidding conducted by domestic enterprises is almost impossible, owing to such specific conditions of the Host Country as public security condition and applicable law; 5. Wars, disasters or other unusual circumstances require the experiences, etc. gained by enterprises with a market presence in the Host Country; or 6. It is deemed efficient, in terms of the goal and nature of the contract regarding how to enhance the master's consciousness in the Host Country, to procure by means of the Overseas Office Contracting method or the Host Country Contracting method.

(3) In case of employing the Host Country Contracting method, it shall be evaluated whether the Host Country has the procurement capability to carry out the contract in question properly.

Article 5. Sorts of Contracting Methods

The contracts by means of International Bidding shall be concluded on the basis of the Open Competitive Bidding, Limited Competitive Bidding or ad libitum.

Article 6. Scope of Application of International Bidding

The following contracts shall be subject to International Bidding: 1. In case of projects for providing support to least developed countries(“LDCs”) and heavily indebted poor countries(“HIPCs”), the contract in which the estimated tender price of the goods or construction of infrastructure in question is SDR700,000(equivalent to US$ one million) or more, or the estimated price of the service in question is SDR130,000(equivalent to US$ 180,000) or more; or

2. The contract in which it is otherwise deemed efficient, in terms of the goal and nature of the contract in question, to procure by means of International Bidding.

Chapter 2. Headquarter Contracting

Section 1. Selection of Contracting Method

Article 7. Selection of Contracting Method

(1) The contracting method shall, in principle, be Open Competitive Bidding; provided, however, that it may, if necessary in view of the goal, nature, size, etc. of the contract, be based upon the Limited Competitive Bidding or by means of a Contract ad libitum. (2) The Limited Competitive Bidding stated in Paragraph 1 shall apply if: 1. The purpose of the contract cannot be achieved with other counterparty than the person who is capable of specific equipment, technology, materials, goods or working results in view of the nature or goal of the contract, and the proposed participants in the bidding are less than 10 persons; 2. The estimated price of contract for manufacturing goods is 100,000,000 won or less, for construction 300,000,000 won or less, and for construction of specialized works 100,000,000 won or less; or 3. The estimated price of contract for construction is 50,000,000 won or less, or contracts for other than sub-contracting of manufacturing goods or rental of properties are entered into. (3) The Contract ad libitum stated in Paragraph 1 shall apply if: 1. After a competitive bidding was announced two times, only one supplier has made a bid, no supplier has made a bid, or no bid has met the requirements of the bidding notice, etc.;

2. In case of the project executed for more than one fiscal year, a contract is made with an entity, which has completed successfully for the previous year or stage, for the project of the next year or stage; 3. The subject item may not be procured by means of the competitive bidding because of necessity by the time when it is needed;

4. The subject item is procured to replace parts or components or to expand facilities which were procured already (only in case the item turns incompatible if it is not procured from a certain manufacturer or supplier);

5. The Host Country government or the international organization designates specific product of a certain brand, supplier or service provider of goods or services through overseas Korean Embassies;<Omitted, Apr. 28, 2011>

6. It is necessary to enter into a contract with the person who performs the previous construction because it causes technical or economical difficulties or substantial inconvenience to KOICA to conduct separately the additional construction in case it becomes necessary to conduct additional construction due to unexpected reasons while the contract has been already concluded, and the estimate amount of the additional construction is not more than 50% of the contractual amount of the previous construction;

7. The subject item or part is additionally procured with the remainder of the project budget as a result of bidding for procurement of the same item; or 8. It is deemed that no other supplier can compete with a specific provider because of its exclusive technology and services or its unique location, structure, quality, effectiveness and/or efficiency in providing the subject item;<Newly inserted, Apr. 28, 2011>

9. It is inevitable to apply the Contract ad libitum in light of the purpose and/or characteristics of the Contract.<Newly inserted, Apr. 28, 2011>

Article 8. Two-phased Competitive Bidding

(1) For a contract to manufacture, purchase goods, construct works or to procure consultant services, if deemed necessary in view of the difficulty in establishing appropriate specifications, etc. of such goods in advance or the special characteristics of the contract, quotation bidding may be implemented right after specification or technique bidding. (2) In case of Paragraph 1, only those who have been recognized qualified as a result of opening specification proposals or technical proposals shall be entitled to participate in quotation bidding.

(3) Notwithstanding the provisions of Paragraphs 1 and 2, if deemed necessary in view of the special characteristics, etc. of the contract, specification and quotation bidding, or technique and quotation bidding may be implemented at the same time. In such a case, only those who have been recognized qualified as a result of opening specification proposals or technical proposals shall be allowed to open quotation tenders. (4) Where the bidding stated in Paragraphs 1 through 3 is to be implemented, the criteria and procedures shall be established before the bidding, and shall be made available for inspection by those persons who intend to participate in the bidding. (5) In case a successful bidder has not been selected as a result of opening quotation tenders pursuant to Paragraph 3, and more than two (2) bidders are recognized qualified in specification or technique, those bidders as recognized qualified in specification or technique may be allowed to submit their own quotation tenders again.

Article 9. Conclusion of Contract by Negotiation

(1) If deemed necessary in view of the special characteristics, technique and urgency of the performance of a contract, the safety of public facilities and other purpose such as national security and so forth, the KOICA contracting officer may conclude a contract for the procurement of goods, construction of works or services by negotiation with a

person deemed to be most favorable to KOICA after evaluating the written proposals submitted by a number of suppliers. (2) The KOICA contracting officer, when intending to conclude a contract pursuant to Paragraph 1, shall state clearly that the contract is a contract by negotiation at the time of the public notice. (3) The KOICA contracting officer shall issue and deliver the necessary documents such as a written invitation to bidders, etc. to a person who intends to participate in a contract by negotiation. (4) The KOICA contracting officer shall establish the criteria and procedures necessary for concluding a contract pursuant to Paragraph 1, and shall make them available for inspection by those persons who intend to participate in a contract by negotiation.

Section 2. Bidding Procedure

Article 10. Bidding Notice

(1) Each and all competitive biddings except the Contract ad libitum are subject to the bidding notice. Such bidding notices shall, in principle, be given 40 days prior to the day immediately preceding the deadline for the submission of bids; provided, however, that such required time frame for bidding notices may be shortened, if necessary when it is deemed impossible to procure the subject matter of the contract in time, or in case of emergency. (2) The bidding notice shall include the following information:

1. The subject matter of the contract in question, the name and address of the employer; 2. Information on qualifications, registration as a bidder and deadline for submission of bidding documents;

3. Information on bid security, the period of maintenance liability, etc.; and

4. Other information that is deemed necessary, including a summary of the main terms and conditions of bidding.

(3) When making public the bidding notices, the following information shall be contained in addition to the particulars in Paragraph 2:

1. Information on whether the method or the procedures of the Open Competitive Bidding or the Limited Competitive Bidding are included; and

2. Address to which the application for tender participation and the bid shall be submitted, the deadline and the language to be used.

Article 11. Registration of KOICA Supplier A person who intends to participate in Headquarter Contracting shall register as a KOICA's procurement supplier directly through the KOICA Electronic Procurement System, or, either visit the KOICA Head Office and submit, send by mail or transmit electronically, the relevant documents to KOICA after filling in the procurement supplier registration form in English, as posted in the KOICA Electronic Procurement System.

Article 12. Qualification of Open Competitive Bidding Participant (1) When it is deemed necessary, in view of the kind and size of contract, such qualifications as required to the participant in Open Competitive Bidding may be established with respect to the matters of the same kind of contract performance results, maximum contractual limit, construction/manufacturing capacity, technological capacity, managerial competence, etc.

(2) In case any person who intends to participate in Open Competitive Bidding applies for the bidding, KOICA shall review the person’s qualification for the tender participation and any probable disqualification, and give notice of the result thereof. (3) The KOICA contracting officer shall not place restrictions on participation in bidding, by prescribing other requirement than qualifications to participate in Open Competitive Bidding pursuant to Paragraph 1.

Article 13. Application for Participating in Bidding

(1) A person who intends to participate in bidding shall submit the following documents to the KOICA Head Office no later than the deadline for the bidding, as stated in the bidding notice or the invitation to bidders:

1. One copy of application for tender participation (in the prescribed form); 2. One set of documents supporting his/her qualification requirements for bidding;

3. Each copy of official seal certificate and notified seal for the transaction (As for the notified seal of the leader of a joint venture for the transaction, they may be replaced by the same seal as affixed on the application for tender participation, and for a foreign enterprise, they may be replaced by a specimen signature certificate and notified signature for the transaction which shall have been duly confirmed by a Korean consul or a notary public); and

4. Any other documents required in the public notice or notification. (2) In case of the documents referred to in Subparagraph 2 of Paragraph 1, the original thereof shall be presented or, otherwise, a copy thereof shall be submitted, stating it is a true and correct copy of the original and bearing a seal (the same seal as shown in official seal certificate or affixed on the application for tender participation) or signature (the same signature as shown on the specimen signature certificate or affixed on the application for tender participation).

(3) The application for tender participation and other documents submitted pursuant to Paragraph 1 shall not be modified except such minor things as typographical errors. (4) If a representative is designated when submitting a application for tender participation, the representative may also participate in the bidding; provided, however, that, if a bidding representative is designated or replaced for a period from the time of submitting such a application for tender participation till just prior to opening tenders, the representative so designated or replaced shall be entitled to participate in the bidding.

Article 14. Bidding-related Documents

(1) A person who intends to participate in bidding may peruse the documents listed below (hereinafter referred to as the "Bidding-related Documents"). 1. Bidding notice or the invitation to bidders; 2. Instructions on the international bidding; 3. Application for tender participation (in the prescribed form); 4. Bid (in the prescribed form); 5. International contract (in the standard form);

6. General Conditions of Contract; 7. Special Conditions of Contract; 8. Bid Security (in the prescribed form); and

9. Other documents stating relevant references. (2) In delivering the Bidding-related Documents referred to in Paragraph 1, KOICA may demand that the amount prescribed by the bidding notice or otherwise shall be paid. In such a case, a person who intends to participate in the tender shall observe such request. Article 15. Awareness of Relevant Rules, etc.

(1) A person who intends to participate in bidding shall, prior to the bidding, become fully aware of the rules regarding bidding and the Bidding-related Documents referred to in Paragraph 1 Article 14. (2) A person who intends to participate in bidding may require KOICA to explain, by the day preceding the deadline for submission of bidding documents, as to mistakes, omissions and/or other items requiring explanations that he/she may find in the Bidding-related Documents while reviewing them pursuant to Paragraph 1.

Article 16. Bid Security

(1) A person who intends to participate in bidding shall provide KOICA with a bid security in an amount of no less than five (5) percent of his/her bidding quotations, either in cash or by a letter of guarantee, etc. issued by a bank, finance company or insurance company with a credit rating of single A or above assessed by an internationally-recognized credit rating agency, no later than the deadline for submission of bidding documents (if the deadline falls on a holiday, the preceding day). (2) If the successful bidder fails to enter into the contract within the prescribed period of time, the bid security deposited by the bidder shall be reverted to KOICA. (3) The bid security deposited by an unsuccessful bidder shall be immediately returned to him/her, upon selection of the successful bidder; provided, however, that the bid security deposited by the successful bidder shall be immediately returned to him/her following the execution of the contract. (4) The guarantee period covered by the bid security in a form of a letter of guarantee, etc. under Paragraph 1 shall begin prior to the deadline for submission of bid, then expiring at least 30 days after the said deadline.

Article 17. Preparation of Bid

(1) The bid shall be prepared in the prescribed form with the bidding quotations being stated in a lump sum price in case of a lump sum bidding, or in unit price in case of a unit price bidding. (2) When executing the bid, the bidder shall enter his/her name (in case of a corporation, the name of its representative director), and affix the seal or signature on such a document using the same seal or signature which he/she has given notice of when submitting the application for tender participation.

(3) If there is any deletion or correction made of entries in bidding documents, the bidder shall affix the same seal or signature to such deletion and correction as used in the bidding.

Article 18. Submission of Bid

(1) The bid shall be submitted with its envelope properly sealed, on the basis of one set per person. (2) The bidder shall submit the bid at the designated time/date and venue of bidding at the request of the officer in charge of bidding; provided, however, that the same shall not apply where the bidding notice permits the bidding by mail. (3) The bid submitted by mail shall be accepted as valid only when they have arrived no later than the day immediately preceding the deadline for submission thereof. In such a case, KOICA shall not be responsible for the loss or damage thereof in transit, or a delayed delivery thereof. (4) A person who intends to submit the bid by mail pursuant to Paragraph 2 shall write the name of the bidding project, time/date of bidding, name of the company and its representative, contact person and telephone number of easy connection on the cover of the envelope of the bid.

(5) When the bid has been submitted by mail pursuant to Paragraph 2, the KOICA's contracting officer shall record the time/date of receipt thereof on the surface of the envelope of the bid, putting a receipt stamp on it, and keep the envelope unopened until the official opening of tenders. (6) No bidder may replace, modify or cancel the bid already submitted; provided, however, that a bidder may be allowed to withdraw his/her bid if the bidder expresses their intent to do so at the very time and venue of opening tenders on grounds that there are certain significant errors in the entries made therein and KOICA accepts it; further provided that a bidder may be allowed to modify and re-submit his/her technique or specification bidding document, where, upon opening technical proposals or specification proposals in case of a two-phased competitive bidding, no bidders are found to have met the requirements, or a bidder is determined by KOICA to meet such technique or specification requirements subject to supplementing some minor technique or specification items thereof.

Article 19. Deadline for Submission of Documents

(1) Bidding-related documents supporting bidder's qualifications for participation in the bidding, etc. shall be submitted until the end of the working hours on the deadline for submission prescribed by the bidding notice or the invitation to bidders. (2) When the bidding notice or the invitation to bidders provides that the said deadline for submission be the date immediately preceding the date of the deadline for submission of bids or opening tenders and the said preceding day falls on a Sunday or public holiday, such period shall be deemed to end on the day two days prior to the date of the deadline for submission of bids or opening tenders.

Article 20. Bidder's Obligation of Fair Competition

(1) Bidders shall not engage any unfair trade practices, including having agreed upon their respective bidding quotations prior to bidding or assisting a specific person in being awarded the contract.

(2) If a bidder has breached such obligation set forth in Paragraph 1, KOICA may take proper measures against him/her including the nullification of his/her bid pursuant to Article 22 and making a request for investigation to the Korea Fair Trade Commission.

Article 21. Constitution of Open Competitive Bidding

(1) Bids validly made by two or more persons shall constitute the effective Open Competitive Bidding. (2) Where bids are invited separately in terms of technique or specifications, and quotations pursuant to Paragraph 3 Article 8, KOICA's contracting officer may, upon opening tenders of technique bidding or specification bidding deemed as the effective competitive bidding made by two or more persons, open quotation bids even if it is finally determined that only one bidder has met the required specifications.

Article 22. Nullification of Bids

Bids falling under any of the followings may be subject to nullification: 1. Bids made by those who are disqualified from making a bid due to absence from the pre-bidding conference or otherwise; 2. Bids made by persons having no proxy; 3. Bids made by those who fail to submit such documents, etc. as required in the bidding notice, at such time and in such place as designated therein; 4. Bids made by those who have submitted two or more bids regarding the same subject matter or made a bid on behalf of a third party;

5. The essential part of the bid, including the bidding quotations, is not stated clearly or has omitted any correction stamp or signature following correction; 6. Bids made by those who have quoted pre-concerted prices, prevented other person from participating in competition, or obstructed the performance of official duties by KOICA personnel concerned;

7. Bids made with no seal or signature affixed by bidders (including bids are not sealed or signed using the same seal or specimen signature as shown in the application for tender participation); 8. Bids made in which the bidders concerned have expressed their respective intent to withdraw on the scene of opening tenders on grounds that there are certain significant errors in the entries made therein and such withdrawals have been accepted by the KOICA's contracting officer; 9. Bids made in which the bid fails to accompany quotations (or price schedules), where bids submitted are required to accompany the same; bids in which the bidding quotation shown on the bids is inconsistent with that stated on the quotations (or price schedules); or bids the content of which is inconsistent with the specifications, etc. set out in the quotations;

10. Bids made without having deposited a bid security as prescribed, on or before the date set for depositing the bid security. 11. Bids made with which such documents as required for examining bidder's qualifications, or evaluating and screening bidder's capabilities to carry out the project have not been submitted; or 12. Bids made in which the bids are prepared without using the prescribed forms in breach of Article 17; the quotations shown on the bids are stated in Arabic numerals only; the tender form in a computerized format is damaged or prepared differently from the prescribed method by the computer system and, as a result thereof, is not processed by the computer system.

Article 23. Postponement of Tender Time/Date

(1) KOICA may postpone the time/date of deadline for submission of bids set forth in the bidding notice or invitation to bidders, if:

1. The content of items requiring explanations pursuant to Paragraph 2 Article 15 are so material that it is deemed inevitable to postpone such time/date; or 2. It is impossible to conduct bidding or opening tenders at such time/date as originally designated owing to other unavoidable causes;

(2) When the tender time/date is postponed pursuant to the Paragraph 1, public notice or notification shall be given of the reason and duration of such postponement in the same manner as for the initial notice.

Article 24. Cancellation of Tender (1) KOICA may cancel a tender if an unavoidable cause, including unavailability of KOICA's budgets and changes in its business plan, takes place before the selection and notification of the successful bidder. (2) No bidder shall raise an objection to such measures taken pursuant to Paragraph 1, nor make a claim for damages resulting therefrom.

Article 25. Re-bidding and Bidding via Another Public Notice

(1) If two or more valid bidders are not available nor any successful bidder is selected in a competitive bidding, the KOICA's contracting officer may conduct another bidding at the same venue regarding the same subject matter. In such a case, there shall apply no restrictions on the number of bidders or bidding.

(2) In case no bidders have participated in a bidding or no successful bidder is selected, or the successful bidder fails to execute the contract, another bidding may be invited by giving public notice thereof. (3) Where bids are invited separately in terms of technique or specifications, and quotations pursuant to Paragraph 3 Article 8 and, then, two or more bidders have met the technique or specification requirements, the KOICA's contracting officer may cause such bidders having met such requirements to re-submit their quotation bids if, upon the official opening of quotation bids, the successful bidder cannot be selected. (4) In case of a re-bidding or bidding via another public notice conducted pursuant to Paragraphs 1 through 3, such price and other conditions as determined at the time of inviting the initial bidding shall not be modified, except for the deadline.

Article 25.2. (Public Notice Amendment)<Newly inserted, Apr. , 2011>

(1) The KOICA contracting officer shall issue a public notice of amendment immediately when there is a change in the previous bidding notice, using the same method as the previous notice. (2) In the case of Paragraph 1, when a pre-bidding conference is held and a change to the bidding notice is announced on site based on an agreement among the participants, an amended public notice may not be made. If such a change is made after the pre-bidding conference, however, the KOICA contracting officer shall immediately notify all participants of the amendment.

Article 26. Opening of Tenders

The official opening of tenders shall be conducted at such place and time/date as specified in the bidding notice, and such opening of tenders may be attended by bidders or their representatives who intend to do so. In such a case, the KOICA's officer responsible for conducting such bidding may request each of those intending to attend

the opening of tenders to present his/her identification and certificate for registration as a bidder.

Section 3. Selection of Successful Bidder and Execution of Contract

Article 27. Selection of Successful Bidder A successful bidder in the Open Competitive Bidding shall be selected by any of the following criteria:

1. A bidder who is acknowledged to be able to perform the contract and who quoted the lowest price below the projected price; 2. A bidder who made the most favorable to KOICA in accordance with the assessment standard stated in the bidding notice or the invitation to bidders; or 3. A bidder who made a bid that best fits to the standard specified in the special criteria established by KOICA taking into account the nature or size of the contract.

Article 28. Execution of Contract (1) Within seven(7) days of receipt of the notice of award, the successful bidder shall submit to KOICA the required documents in the prescribed form and a statement showing schedules of the price based on which the contract was awarded (hereinafter referred to as the "Price Schedules") and shall then execute the contract within ten (10) days thereafter.

(2) In case of Paragraph 1, if the successful bidder is prevented from executing the contract due to force majeure, the duration of such force majeure shall not be counted.

(3) A person, who intends to execute a contract with KOICA pursuant to Paragraph 1, shall submit to the KOICA's contracting officer such necessary relevant documents as required by applicable law. (4) In case of a contract for the manufacturing of goods on a long-term basis, the contract with the successful bidder shall be executed with respect to the first phase of manufacturing thereof within the scope of the then current year budget, while the contract price, as awarded, for the total quantity of goods to be manufactured ("Total Contract Price as awarded") shall also be additionally stated in the said contract. In such a case, it shall be stipulated with fixed conditions to the contract that the contract covering the second phase of manufacturing and thereafter shall be entered into to the extent of not exceeding the Total Contract Price as awarded, which means the adjusted total contract price if the Total Contract Price as awarded is adjusted in due course, minus the portion of the contract then already executed.

(5) The contract price for the manufacture of goods, following the first phase of manufacturing thereof pursuant to Paragraph 4 shall be based on the unit prices contracted for the manufacture of the total quantity of goods. In such a case, if any of the unit prices shown in the Goods Supply Schedule is subject to adjustment as a result of adjustment of the contract price or otherwise, the unit prices so adjusted shall apply.

(6) The contract shall be finally concluded when it is prepared and the successful bidder and the KOICA's contracting officer affix their respective seal or signature to the contract.

Section 4. Special Provisions for Limited Competitive Bidding

Article 29. Limited Competitive Bidding

(1) In case KOICA puts in Limited Competitive Bidding, it shall determine the qualification and the criteria of designation of participants in the Limited Competitive Bidding. (2) When KOICA designates the participant for the Limited Competitive Bidding, it shall designate the candidate subject to the following standard by ensuring the principle of fair competition:

1. In case of construction, contractors with good credit standing, operation results and managerial competence are eligible; provided, however, that, if the possession of special equipment and technology is required, the possessor thereof shall be designated; or 2. In case of manufacturing, purchase of goods and so forth, if the nature or goal of a contract in question makes it necessary for the possessor of special technology, machinery, production facilities, etc. to perform the contract, the possessor thereof shall be designated.

Article 30. Designation of Participants in Limited Competitive Bidding

If KOICA puts in Limited Competitive Bidding, it shall designate the persons who are acknowledged fit and proper for designation standard among those as qualified pursuant to Article 12, and simultaneously notify the designated persons of the matters relating to the bidding notice.

Article 31. Application Mutatis Mutandis of Provisions Regarding Open Competitive Bidding

Articles 10 through 28 shall, except otherwise provided in this Section, apply mutatis mutandis to the Limited Competitive Bidding.

Section 5. Language and Application of International Commercial Practices

Article 32. Language to Be Used

(1) The language used in the International Bidding shall, in principle, be Korean; provided, however, that, when it is deemed inevitable to use a foreign language because the location of suppliers of goods, etc. to be purchased are limited to a specific area, either the language of the specific country or English may be used. (2) The bidding notice shall be made in English as well as in Korean, and the Bidding-related Documents stated in Article 14 may be provided in English, if necessary. (3) The quotations shown on the bids shall be in the language used in the bidding notice and Arabic numerals may be used in parallel. In such a case, should there be discrepancy between the Arabic numerals and the words, the figure in words shall prevail; provided, however, that the tender form in a computerized format shall be prepared by the prescribed method.

Article 33. Application of International Commercial Practices

Relevant matters with respect to the conduct of procurement in unavoidable circumstances related with the methods of payment in terms of currency, types and time of deposit of guarantee, inspection of the performance of the contract and so forth may be subject to the prevailing international commercial practices.

Chapter 3. Overseas Office Contracting

Article 34. Registration of KOICA Overseas Office Supplier

A person who intends to participate in the Overseas Office Contracting shall apply for the registration as a KOICA's procurement supplier by visiting the KOICA Overseas Office and submitting, or sending by mail or transmitting electronically, the relevant documents to KOICA Overseas Office after filling in the procurement supplier registration form in English.

Article 35. Designation of Procurement Advisor (1) When KOICA procures the goods and other materials to support the human resources in the Host Country, who have been dispatched overseas as a part of the Foreign Grant Assistance Program, it may designate a procurement advisor. (2) The procurement advisor stated in Paragraph 1 shall be selected by means of a contract by negotiation subject to Article 9.

Article 36. Obligation to Report The head of relevant KOICA Overseas Office shall promptly report on the matters of the Overseas Office Contracting to the general managers of the departments of procurement and overseas projects, KOICA Head Office, without delay.

Article 37. Application Mutatis Mutandis

Articles 7 through 33 shall, except otherwise provided in this Chapter, apply mutatis mutandis to the overseas competitive contracting.

Chapter 4. Host Country Contracting

Article 38. Scope of Application

(1) This chapter shall apply to the contracts entered into between KOICA and a Host Country subject to the latter's own procurement system, using KOICA’s foreign grant assistance funds.

(2) The provisions of this chapter shall be incorporated into the agreement to be executed by and between KOICA and such Host Country, which country shall comply with the provisions of this chapter.

(3) In principle, the legal arrangements and other relations between such Host Country and the concessionaire shall be subject to the laws of the Host Country and the agreement(s) executed by and between the Host Country and the concessionaire.

Article 39. Principle

The competent agency or organization of a Host Country (hereinafter referred to as the "Host Organization") shall select the counterparty of the agreement(s) pursuant to this Guideline in a transparent and fair manner, and ensure to provide the procurement related information in an indiscriminating way, the which shall be incorporated into the agreement by and between KOICA and the Host Organization.

Article 40. Procedure

(1) If it has been decided to employ the Host Country’s procurement system, the Host Organization shall conduct the bidding and thereafter prior to selecting the successful bidder(s) provide the information on the said bidding to the general manager of procurement department, KOICA Head Office. (2) The Host Organization shall select the successful bidder subject to the approval of the general manager of procurement department, KOICA Head Office.

(3) If it is deemed necessary to change the material part of the contract after the successful bidder has been selected by the Host Organization, it shall be approved by the general manager of procurement department, KOICA Head Office. (4) Should the Host Organization fail to comply with the provisions of this Chapter, provide inaccurate information related to bidding or change the material part of the contract without obtaining approval from the general manager of procurement department, KOICA Head Office, KOICA may suspend or cancel the foreign grant assistance to the Host Country.

Article 41. Contracting Method

(1) The Host Country Contracting shall be conducted on the basis of the Open Competitive Bidding, Limited Competitive Bidding or Contract ad libitum.

(2) In principle, the Open Competitive Bidding shall apply to all contracts, and any other contracting method shall be approved by the general manager of procurement department, KOICA Head Office. (3) In employing the International Bidding, the provisions of Articles 7 through 33 shall apply mutatis mutandis.

Article 42. Language to Be Used

(1) The Host Organization may use the local language in relation to contracting and procurement unless it employees the International Bidding. (2) When the Host Organization requests the approval of the general manager of procurement department, KOICA Head Office, pursuant to Paragraphs 2 and 3 Article 40, it shall provide the information related therewith in English.