Memorandum of Understanding

This Memorandum of Understanding is made on this day, the ------------- of--------------in the
year Two Thousand and Nineteen subject to the condition of mutually carrying out the following
agreed functions between the institutions --------------------------------------------------------------------------
------ as the Project owner /custodian and the Ministry of City Planning, Water Supply & Higher
Education as the financier/overall supervisor for the activities as per the TCE which provides the
project cost technical guidance in relation to the construction/development of ------------------------------
------------------------(Project Name) in the area of ---------------------------------------------------(Location)

Conditions

1. The authority of approval or refusal of the project financing is decided by the Hon. Minister of
City Planning ,Water Supply and Higher Education, Secretary to the Ministry or a senior
Ministry official who has been given by the authority .

2. Project financing shall be subject to the recommendation of the Department of National

Planning.

3. The Ministry of City Planning, Water Supply & Higher Education will make necessary financial
arrangements to bear the total cost for the activities identified in the Tentative Cost Estimate
(TCE).

4. The Ministry will carry out the general project management functions, all technical and
supervisory activities with regard to implementation which has to be undertaken by the
implementing agency / project propornent / owner or custodian of the project. Ministry reserves
the right to inspect the project / check the quality of materials with technical staff at any point
of implementation.

5. The implementing agency / project propornent/ owner or custodian of the project has to submit
a comprehensive completion report to the Ministry.

6. Upon completion of the project activities Hon. Minister or / an official nominated by the Hon.
Minister will handover the project to General Public.

7. The name board should be erected by the Implementing Agency as per the format given by the
ministry during launching or handing over the Project to the Public.

OBLIGATIONS OF THE IMPLEMENTING AGENCY / PROJECT PROPONENT / OWNER /

CUSTODIAN OF THE PROJECT
8. Submitting Project Proposals;
8.1 Tentative Cost Estimate (TCE) shall be Approved/ Sanctioned within the limits of authority by
respective officials, project proponent/ owner / custodian according to the Format 1.
(Procurement Guideline Reference[PGR] : 4.3.1 & 4.3.2).
8.2 TCE shall be prepared (PGR : 4.3.1 & 4.3.2) in accordance with the scope of the work which is
outlined in the Project Submission Format. If any project proposed to continue more than one
year, the TCE should be prepared base to the current year and the yearly implementing cost
shall be included separately as according to the TCE format 1.
8.3 A comprehensive Project Submission Format (PSF) shall be forwarded describing unmet need
seen in the community, the Justification of the intervention and the target group/sector
improving as per the Format 2.

8.4 Draft Detail Drawings and Location Map (Google map with Coordinates) should be forwarded
along with the PSF.

9. Before Implementation of Projects;

9.1 Project proponent/owner/custodian shall follow the appropriate procurement method (PGR : 4.1
& 4.4) for the construction purpose within the limit of financial authority.
9.2 Implementing Agency/project proponent/owner/Custodian should prepare detail Bill of
Quantity for tendering purpose within the limit of TCE. This has to be approved by relevant
level of Authority.
9.3 Implementing Agency/ Project proponent/owner shall forward the following documents to
the Ministry before commencement of construction.
a. Contract document
b. Advance Bond
c. Performance Bond
d. Work programme and
e. Any other relevant documents.
10. During Construction;
10.1 Construction progress (Digital Photographs and Video clips) shall be submitted weekly to
the Ministry in addition to the submission of general physical progress and financial
progress (2A &2B).
10.2 The implementing agency / project propornent/ owner or custodian shall submit Interim &
Final bills with four copies (4) of certified Measurement sheets and summary sheet.
10.3 Final bill should be forwarded with the Completion Certificate.
10.4 Project proponent/owner / custodian shall supervise the execution of the project as per the
construction specification
10.5 If any Extra work or variation with regard to the project implementation within the;
approved amount; prior approval from the ministry has to be obtained by the respective
implementing agency with the approval of their Tender Board.
10.6 In the case of exceeding amount approved by the Ministry; a fresh proposal has to be
submitted by the implementing agency with all relevant documents in order to get the
recommendation from Department of National Planning.

OBLIGATIONS OF THE MINISTRY

11. The Ministry shall agree to and / or undertake the following obligation under this MOU
11.1 The Ministry shall provide the budgetary provisions from the Ministry’s annual budgetary
allocation.
11.2 The Ministry agrees to release the 20% of Mobilization Advance (PGR : 5.4.4) from the
allocation if necessary subjected to submission of necessary bonds.
11.3 Progress payments will be released after receiving the certified bills with approved
measurements and recommendation of payment by Project proponent/owner.
11.4 Recommended provisional sums shall be provided with necessary proven documents.
 11.5 The Ministry shall release the recommended value of the Final bill including the Retention
Money (PGR : 5.4.6) and Value Added Tax (VAT) (PGR : 5.4.11 and 4.3.1 & 4.3.2) within
the approved TEC Limit.

The owner / custodian of this project agrees hereby to maintain / manage the developed Project
continuously to ensure the reaching of goals / objectives of the Project and providing end users with
maximum benefit.

------------------------------------------------ -------------------------------------------------
Authorized Officer’s Signature Authorized Signature of the project owner
Ministry of City Planning and Water Supply

Official stamp - Official stamp -

Witnesses

Name Designation and Institution Signature

1. …………………………….. …………………………………………………………….

2. ……………………………… …………………………………………………………….