Csopf Final 2019

REPUBLIC OF RWANDA
MINISTRY OF FINANCE AND ECONOMIC PLANNING

(MINECOFIN)
COMPREHENSIVE STANDARD
OPERATION PROCEDURE
FRAMEWORK FOR GOVERNMENT
CONTROLLED COMPANIES
2019
MAIN TABLE OF CONTENT
MAIN TABLE OF CONTENT .....................................................................2
GENERAL INTRODUCTION ............................................................. 3
A. Background ..................................................................... 4
B. Objectives of the Framework ........................................... 4
C. Distribution of Framework............................................... 5
D. Revision of the Framework .............................................. 5
E. Date of Commencement .................................................. 5
VOLUME 1: FINANCE STANDARD OPERATION PROCEDURE

FRAMEWORK ................................................................................. 6
VOLUME 2: DIVIDEND POLICY ................................................... 178
VOLUME 3: STANDARD OPERATION PROCEDURE FRAME WORK

FOR PROCUREMENT .................................................................. 187
VOLUME 4: STANDARD OPERATION PROCEDURE FRAMEWORK

FOR HUMAN RESOURCE MANAGEMENT .................................... 476
2

GENERAL INTRODUCTION
A. Background
The Government of Rwanda (GoR) has significant investments in public
enterprises and, like any other investor, is seeking to ensure that its
investments are well-managed and perform in accordance with the set
objectives. Public enterprises in Rwanda report directly to their line
ministries for strategic and operational purposes, but are subject to the
Ministry of Finance and Economic Planning (MINECOFIN) for financial
accountability. The Government Portfolio Management Unit is a dedicated
unit within MINECOFIN charged with the mandate of supervising and
monitoring GoR investment interests in public and private enterprises.
The GoR decided to develop the Comprehensive Standard Operation

Procedure Framework (CSOPF) with a view to enhancing efficiency and
effectiveness in service delivery to citizens. This decision spawned the need
for a policy framework to harmonize the regulations applicable in finance,
human resource, and procurement processes. It is expected that this
action will improve the profitability, accountability, and orientation of
Government entities, while also respecting the differences existing among
the sectors where these enterprises operate. The Ministry of Finance and
Economic Planning’s mission justifies development of the CSOPF as a tool
for providing guidance on managerial and operational best practices in the
concerned entities and business enterprises. In addition, the
implementation of these procedural guidelines will help to guarantee the
lawful conduct of transactions of the companies in which the Government
of Rwanda is the majority investor.
B. Objectives of the Framework

The objective of this Comprehensive Standard Operation Procedure
Framework (CSOPF) is to establish a uniform operating procedure for
Government controlled companies (GCC). The CSOPF will ensure
compliance with established policies, regulations, procedures, and
international best practice. Use of this Framework will also ensure
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consistency, transparency, and continuity in an effort to achieve optimal
returns to shareholders. The framework will also simplify the regulatory
framework, summarize existing procedures, and remove obsolete ones. It
is aimed at creating new procedures or modifying the existing ones in line
with the current trends to create an effective management system geared
towards good governance of the Government controlled companies. This
standard operation procedure framework is therefore designed to enable
the management of Government controlled companies be carried out in an
orderly and efficient manner.
All Government-controlled Companies shall adhere to the framework set

out in this document. In case of inconsistencies between this framework
and the standards of the relevant industry, concurrence for amendment
shall be sought from the Minister for Finance and Economic Planning
through the respective line ministries.
C. Distribution of Framework
The Comprehensive Standard Operation Procedure Framework shall be
distributed to the Head of Company of all Government-controlled
companies. The Framework shall also be used by the line ministries of the
various companies as well as the Ministry of Finance and Economic
Planning as a reference document for the management of Government
controlled companies.
D. Revision of the Framework

The Frameworks shall be reviewed after every Five years or when the need
arises. The MINECOFIN will from time to time issue circulars to give
guidance on the implementation, or clarify certain sections, of this CSOPF
before a comprehensive revision is undertaken.
E. Date of Commencement
The date of commencement of the provisions contained in this framework
shall be January, 2019.
5

VOLUME 1:
FINANCE STANDARD OPERATION
PROCEDURE FRAMEWORK
2019
6

TABLE OF CONTENTS
VOLUME 1: .............................................................................................................. 6
FINANCE STANDARD OPERATION PROCEDURE FRAMEWORK .............................. 6
LIST OF ABBREVIATIONS ...................................................................................... 14
1.1 General Definitions ................................................................................................ 15
1.2 Mandate................................................................................................................. 16
1.3 Format of the Policies ............................................................................................. 17
1.4 Impact of Industry on Accounting Policy Choice and Standards ............................. 18
PART TWO: THE FINANCIAL REGULATORY ENVIRONMENT .................................. 21
2.1 Introduction ........................................................................................................... 21
2.2 Policy Objectives .................................................................................................... 21
2.3 Policy Statement .................................................................................................... 21
2.4 Key Documents ...................................................................................................... 22
2.5 Key Roles and Responsibilities ............................................................................... 23
2.6 Operating Procedures............................................................................................. 23
2.7 Key Controls .......................................................................................................... 23
PART THREE: CORPORATE GOVERNANCE ........................................................... 24
3.1 Introduction ........................................................................................................... 24
3.2 Policy Objective ...................................................................................................... 24
3.4 Key Documents ...................................................................................................... 25
3.7 Key Controls .......................................................................................................... 31
PART FOUR: STRATEGIC PLANNING ...................................................................... 32
4.1 Introduction ........................................................................................................... 32
4.3 Policy statement ..................................................................................................... 32
4.4 Key Documents Involved ........................................................................................ 32
4.6 Operating Procedure .............................................................................................. 33
4.7 Key Controls .......................................................................................................... 34
PART FIVE: BUDGETING ........................................................................................ 34
5.1 Introduction ........................................................................................................... 34
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5.4 Key Documents ...................................................................................................... 34
5.7 Budget Implementation, Monitoring and Evaluation .............................................. 38
5.8 Budget Revision/reallocation Procedures ............................................................... 39
5.9 Key Controls .......................................................................................................... 39
PART SIX: RISK MANAGEMENT ............................................................................. 40
6.1 Introduction ........................................................................................................... 40
6.4 Key Documents ...................................................................................................... 41
6.6 Operation Procedures ............................................................................................ 43
6.7 Key Controls ........................................................................................................ 44
PART SEVEN: ACCOUNTING POLICIES .................................................................. 45
7.1 Introduction ........................................................................................................... 45
7.4 Key Documents ...................................................................................................... 51
7.7 Key controls ........................................................................................................... 59
PART EIGHT: ACCOUNTING AND CONTROL SYSTEMS.......................................... 60
8.1 Introduction ........................................................................................................... 60
8.4 Key Documents ...................................................................................................... 60
8.7 Key Controls .......................................................................................................... 65
PART NINE: FILE RETENTION AND RECORD MANAGEMENT ................................ 66
9.1 Introduction ........................................................................................................... 66
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9.4 Key Documents ...................................................................................................... 67
9.7 Key Controls - Management Records ...................................................................... 68
9.8 Key Controls - Retention ........................................................................................ 69
9.9 Key Controls -Filing ............................................................................................... 71
PART TEN: MANAGEMENT OF REVENUE .............................................................. 72
10.1 Introduction ......................................................................................................... 72
10.2 Policy Objective .................................................................................................... 72
10.3 Policy Statement .................................................................................................. 72
10.4 Key Documents .................................................................................................... 73
10.5 Key Roles and Responsibilities ............................................................................. 73
10.6 Operation Procedures........................................................................................... 74
10.7 Cash Collections from Revenue Transactions ....................................................... 76
10.8 Electronic Receipts .............................................................................................. 77
10.9 Accounts Receivable and Accrued Revenues ........................................................ 77
10.10 Key controls ....................................................................................................... 78
PART ELEVEN: CREDIT POLICIES AND PROCEDURES ......................................... 79
11.1 Introduction ......................................................................................................... 79
11.2 Policy Objectives .................................................................................................. 79
11.4 Key Documents .................................................................................................... 79
11.7 Procedure for Handling Defaulters ....................................................................... 83
11.8 Procedure for restoration of credit facility to defaulting customers ....................... 83
11.9 Procedure for enhancement of credit limits .......................................................... 84
11.10 Procedure for Provisions for Doubtful Debts ....................................................... 85
11.11 Writing off bad debts .......................................................................................... 85
11.12 Key Controls ...................................................................................................... 86
PART TWELVE: EXPENDITURE MANAGEMENT ..................................................... 87
12.1 Introduction ........................................................................................................ 87
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12.4 Key Documents ................................................................................................... 87
12.7 Key Controls ........................................................................................................ 90
PART THIRTEEN: PAYROLL MANAGEMENT ........................................................... 92
13.1 Introduction ......................................................................................................... 92
13.4 Key Documents ................................................................................................... 92
13.5 Key Roles and Responsibility................................................................................ 92
13.7 Key Controls ........................................................................................................ 94
PART FOURTEEN: ACCOUNTS PAYABLE ............................................................... 95
14.1 Introduction ......................................................................................................... 95
14.4 Key documents .................................................................................................... 95
14.5 Key Roles and Responsibility................................................................................ 96
14.7 Key Controls ........................................................................................................ 97
PART FIFTEEN: STAFF TRAVEL ADVANCES .......................................................... 98
15.1 Introduction ........................................................................................................ 98
15.4 Key documents .................................................................................................... 98
15.6 Operating Procedures .......................................................................................... 99
15.7 Key Controls ........................................................................................................ 99
PART SIXTEEN: BORROWING .............................................................................. 100
16.1 Introduction ....................................................................................................... 100
16.2 Policy Objectives ................................................................................................ 100
16.3 Policy Statement ................................................................................................ 100
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16.4 Key Documents ................................................................................................. 101
16.5 Key Roles and Responsibility ............................................................................. 101
16.6 Operation Procedures ........................................................................................ 101
16.7 Principles Guiding Borrowing ............................................................................. 102
16.8 Key Controls ...................................................................................................... 102
PART SEVENTEEN: INVENTORY MANAGEMENT ................................................. 103
17.1 Introduction ....................................................................................................... 103
17.4 Key Documents .................................................................................................. 103
17.5 Key Roles and Responsibilities ........................................................................... 103
17.6 Operation Procedures......................................................................................... 104
17.7 Stocktaking Procedures ..................................................................................... 105
17.8 Stock adjustment and Write-off ......................................................................... 106
17.9 Stock Write-off ................................................................................................... 107
17.10 Key Controls .................................................................................................... 107
PART EIGHTEEN: ACCOUNTING FOR DONATIONS .............................................. 109
18.1 Introduction ...................................................................................................... 109
18.4 Key Documents ................................................................................................. 109
18.5 Key roles and Responsibilities............................................................................ 109
18.7 Measurement at recognition .............................................................................. 111
18.8 Disclosure of Donations ..................................................................................... 111
18.9 Deferred Recognition of Donation Income .......................................................... 111
18.10 Key Controls .................................................................................................... 112
PART NINETEEN: MANAGEMENT OF PROPERTY PLANT, EQUIPMENT AND
INTANGIBLE ASSETS ........................................................................................... 112
19.1 Introduction ....................................................................................................... 112
19.4 Key Documents .................................................................................................. 112
19.5 Key Roles and Responsibility.............................................................................. 112
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19.7 Leases ............................................................................................................... 114
19.8 Security, Handling and Insurance of Assets....................................................... 114
19.9 Key Controls ...................................................................................................... 114
PART TWENTY: BANK ACCOUNT AND CASH MANAGEMENT............................... 116
20.1 Introduction ....................................................................................................... 116
20.4 Key Documents .................................................................................................. 116
20.7 Petty cash .......................................................................................................... 118
20.8 Electronic Banking Systems .............................................................................. 120
20.9 Key Controls- Bank and Cash............................................................................ 125
PART TWENTY-ONE: MANAGEMENT OF LOSS, FRAUD, IRREGULARITIES AND
THEFT OF FINANCES ........................................................................................... 127
21.1 Introduction ....................................................................................................... 127
21.2 Policy Objective .................................................................................................. 127
21.4 Operation Procedure for Prevention and Detection of Fraud and Theft ............... 127
21.5 Key documents .................................................................................................. 128
21.7 Key Controls ...................................................................................................... 129
PART TWENTY-TWO: REPORTING REQUIREMENTS ............................................ 130
22.1 Introduction ....................................................................................................... 130
22.4 Key Documents ................................................................................................. 130
22.6 End-of-Month Procedures .................................................................................. 131
22.7 End-of-year Accounting Procedures ................................................................... 132
22.8 Preparing Financial Statements ......................................................................... 132
22.9 Management Reports ......................................................................................... 133
22.10 Annual Reports ................................................................................................ 135
22.11 Key Controls .................................................................................................... 136
PART TWENTY-THREE: PERFORMANCE MONITORING AND EVALUATION ......... 137
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23.1 Introduction ....................................................................................................... 137
23.4 Key documents .................................................................................................. 137
23.7 Monitoring and Evaluation of Performance of Subsidiaries/Associates and other
Investments ....................................................................................................... 138
23.8 Quarterly, Half-Yearly, and Annual Performance Reports .................................. 139
23.9 Key Controls ...................................................................................................... 139
PART TWENTY-FOUR: EXTERNAL AUDIT............................................................. 140
24.1 Introduction ....................................................................................................... 140
24.2 Policy Objective .................................................................................................. 140
24.4 Operation Procedures ........................................................................................ 140
24.5 Key Documents .................................................................................................. 142
24.6 Key Roles and Responsibility.............................................................................. 143
24.7 Key Controls ...................................................................................................... 143
APPENDICES ........................................................................................................ 144
Appendix 1: Contents of Recommended Forms .......................................................... 144
Appendix 4: Risk Control Matrix on Cash Disbursements Procurement of Services or
Goods ................................................................................................................ 154
Appendix 5:- Financial Risk ....................................................................................... 157
Appendix 6: Customer Credit Appraisal Form (CCAF) ................................................ 162
Appendix 7: Payroll Amendment Form ....................................................................... 165
Appendix 8: Imprest Requisition Form ....................................................................... 166
Appendix 9: Internal Audit Charter ............................................................................ 168
Appendix 10: Key Performance Indicators (KPI) - In Preparation of Final Accounts .... 172
Appendix 11: HOC Checklist before Signing the Accounts.......................................... 175
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LIST OF ABBREVIATIONS
AWP : Annual Work plans
CC : Credit Controller
CCAF : Customer Credit Approval Form
CRL : Central Receipt Log
CSOPF : Comprehensive Standard Operation Procedure Framework
EFT : Electronic Funds Transfer
FIFO : First in First out
FSOPF : Finance Standard Operation Procedure Framework
GCC : Government-controlled Companies
GoR : Government of Rwanda
HOF : Head of Finance
HOC : Head of Company
IAS : International Accounting Standards
IASB : International Accounting Standards Board
IFRIC : International Financial Reporting Interpretation Committee
IPSAS : International Public sector Accounting Standard
IFRS : International Financial Reporting Standards
LIFO : Last in First Out
MINECOFIN : Ministry of Finance and Economic Planning
MM : Marketing Manager
MMRC : Management Material Review Committee
PCAR : Petty Cash Advance Request
PCV : Petty Cash Voucher
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PPE : Property Plant Equipment
RDB : Rwanda Development Board
SIC : Standards Interpretation Committee
SMT : Senior Management Team
1.1 General Definitions

(1) Accounting policies - Specific policies and procedures used by a
company to prepare its financial statements. Accounting policies
include methods, measurement systems, and procedures for
presenting information in financial statements.
(2) Risk management - A continuing process of identifying, analysing,

evaluating, and treating loss exposure. It involves monitoring risk
control mechanisms and financial resources to mitigate the adverse
effects of loss. Loss may result from the following:
(a) Financial risks such as cost of claims and liability judgments;
(b) Operational risks such as labour strikes;
(c) Perimeter risks including weather or political change; and
(d) Strategic risks including management changes or loss of

reputation.
(3) Internal controls - Methods put in place by a company to ensure that

the integrity of financial and accounting information meets operational
and profitability targets in addition to transmitting management
policies throughout the organization.
(4) Procedure - A fixed, step-by-step sequence of activities or course of

action (with definite start and end points) that must be followed in
executing a given task.
(5) Third line of defence - Is comprised of independent assurance

providers. These groups report independently to the board or the audit
committee and include functions such as internal audit, external
auditors, a Chief Risk Officer and special/adhoc committee.
(6) Second line of defence - Are internal controls and compliance to the
same.
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(7) First line of defence - Is the development of policies and procedures.
(8) Line Budget - Is a listed item( economic activity) in the budget that
forms an expense on income .
(9) Budget Revision -When Planned expenses/ revenue differ with the
original budgets, then a revision will be made and seek for additional
budgetary allocation.
(10) Budget reallocation - Is the Reclassification within the same cost

centre or to another cost centre that does not affect the total allocation
of budget.
1.2 Mandate
(1) The Government of Rwanda is mandated by the Constitution, in Article
48, to put in place strategies aimed at improving citizens’ welfare and
development. This mandate is the basis for the establishment of various
Government-controlled Companies and institutions, as set out in
Article 139 of the Constitution. In accordance with Article 139 (2) of the
Constitution, specific laws determine the mission, organization, and
functioning of these institutions in Table 1 below.
(2) The nature of operations of these companies place them under the
Ministry of Finance and Economic Planning for guidance and
supervision in line with the implementation of the national agenda and
the Government’s obligation of improving the citizens’ welfare and
development.
(3) This Finance Standard Operation Procedure Framework (FSOPF) is

intended to identify the key financial reporting risks that the GCCs are
likely to experience. The Framework will also offer prevention plans as
well as mechanisms for risk detection and remediation by way of
prescribing:
(a) Best practice procedures, and
(b) Key controls required to mitigate the identified risks.
(4) This FSOPF recognises the fact that Government-controlled Companies

operate in diverse industries, hence it may not be possible to develop a
complete repertoire and detailed description of all the financial policies,
as well as reporting and accounting standards, for every specific
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industry covered by this Framework. Each entity shall, therefore,
develop and align its policies to this Framework where necessary.
1.3 Format of the Policies

The following information is provided for each policy in the different areas
covered:
(1) Policy objectives/purpose- This explains what each policy aims to

achieve. The objectives of the policies have been aligned to mitigating
key risks identified in each area of finance.
(2) Policy statements - These are formal documents outlining how the
company intends to conduct its business in an acceptable manner.
Policy statements are intended to give direction.
(3) Key documents involved - These refer to important documents that

must be maintained by the company management for the purpose of
keeping an audit trail of transactions, explanations, and other
information considered as being necessary for attainment of the set
policy objectives. The key documents as prescribed in this policy only
reflect the bare minimum rather than an exhaustive list. The
management of each Government-controlled company is at liberty to
include any other documents that will be considered as being relevant
and appropriate in meeting the internal reporting requirements.
(4) Key roles and responsibilities – The resources that are required to
implement finance related controls should be adequate, based on the
size and complexity of each individual Government-controlled
Company operations. Whereas the Framework has indicated the
persons who should be involved in monitoring these controls, various
GCCs may be having different job titles. Every GCC shall put in place
clear reporting lines with appropriate segregation of duties to ensure
that only persons with the right competencies, skills, knowledge, and
experience perform the tasks within the Finance function.
(5) Individual procedures and associated responsibility areas/roles - The

Framework provides the critical steps to follow when performing
various processes and controls. These processes have been
documented at a lean level in an attempt to eliminate clutter in the
processing of finance functions while also covering the risks associated
17

with transactional reporting. Each Government-controlled Company
shall align its procedures to these guidelines to ensure that processes
are carried out seamlessly and efficiently.
(6) Key control mechanisms/processes - Each policy outlines the list of key
controls and processes to be performed in order to mitigate process-
level risk. This Framework recognises that each Government-controlled
Company could be having its own processes and procedures already,
but these shall be aligned to the processes and procedures described
in these policy documents. Should there be any additional procedures
being performed at each A Government-controlled Company that is
performing additional procedures not covered in this document shall
be required to examine and determine whether to retain those
procedures against the need to enhance efficiency and consistency.
(7) Specimen forms and formats which may be provided as appendices - In

the appendices section, the Framework contains a list of the key forms
that will be used as control mechanisms in each Government
Controlled Company. The templates provided offer only the bare
minimum of the documents required as part of the process of
monitoring financial transactions and business performance. However,
the templates are concise enough and place specific emphasis on the
key areas that constitute best practice. Companies with different
templates or those generated by a different software shall ensure that
they capture the spirit of the templates provided in this Framework
(Appendix 1).
1.4 Impact of Industry on Accounting Policy Choice

and Standards
The Government-controlled Companies for which this FSOPF has been
developed fall within different industries. Table 2 below is an example
of the industry-specific standards, which are considered as critical to
financial reporting. All accounting policy choices shall be documented
in line with the accounting standards presented in Table 2. As
determined within the specific standards, accounting policy choices
are provided for use in the determination of measurement and
recognition criteria for various assets, liabilities, incomes, and
expenses.
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Table 1: Industry-Specific Accounting and Reporting Standards
Government
Controlled Industry Key Standards
Company
Rwanda Inter-Link
Transport
Road Transport and
1. Company IAS 16, IAS 36
Logistics
Limited (RITCO)
Rwanda Energy
2. Energy IAS 16
Group (REG)
Sewerage and
Water and Sanitation
Water
3. Corporation Ltd IAS 16, IAS 36
Connections
(WASAC)
Business
4. Development Finance IAS 39, IFRS 9
Fund (BDF)
5. RwandAir Ltd Aviation IAS 18, IFRS 15
King Faisal Hospital

Rwanda (under IAS 18, IFRIC
6. Healthcare
concession 12
agreement
7. Prime Holdings Sarl Investment IAS 36
8. Rutongo Mines Mining IFRS 6
Rwanda Grains and

9. Cereal Agriculture IAS 2
Corporation Ltd
10 Ngali Holdings Investment IFRS 13
Agaciro Development
11 Investment IAS 39, IFRS 13
Fund Ltd
Aviation Travel and

12 Logistics Limited Aviation IAS 18, IFRS 15
(ATL Ltd)
Muhabura Construction /
13 IAS 18, IFRS 15
Multichoice Manufacturing
19

Company Ltd /Agriculture
(MMC)
Rwanda National
IAS 36, IAS 39,
14 Investment Investment
IFRS 13
Trust Ltd
Food processing
IAS 41, IAS 20
15 Kinazi Cassava Plant and Supply
16
Rwanda Printery
16 Printing IAS 16, IAS20
Company
17 Horizon Group Ltd Investment IAS 11, IFRS 15
Table 1 is only a guide and does not provide an exhaustive list of the key
standards that may be considered in establishing accounting policies
for the GCCs covered by this Framework. A complete list of standards
as articulated under section 3.5 (Accounting Policies) shall be
considered by the Head of Finance as well as the Audit Committee to
ensure that financial statements are prepared in compliance with the
International Financial Reporting Standards (IFRS) as adopted by the
Institute of Certified Public Accountants of Rwanda (ICPAR).
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PART TWO: THE FINANCIAL REGULATORY
ENVIRONMENT
2.1 Introduction
This section provides a policy framework for the financial regulatory
environment and covers the laws and regulations that have been
enacted and are being enforced. Some of the applicable laws and
regulations are listed in Section 3.3.
2.2 Policy Objectives

(1) To establish an enterprise-wide culture of compliance;
(2) To ensure that all company stakeholders understand and are

committed to respecting the company's legal obligations, including
compliance with the relevant legislation and internal policies,
procedures, and guidelines as well as contractual commitments and
obligations;
(3) To raise and maintain the level of awareness of the company’s

regulatory obligations as provided in this policy for an effective
compliance management system, a support system for employee
education, and a source of specialist advice and regulatory updates;
(4) To develop and deploy appropriate practices and processes to ensure

compliance with the company’s regulatory obligations;
(5) To monitor the company’s compliance with its regulatory obligations;
(6) To take appropriate corrective action with a view to preventing the

recurrence of incidents of non-compliance, violation, or breach.
2.3 Policy Statement

Every Government-controlled Company shall have a Comprehensive
Finance Standard Operation Procedure Framework (CSOPF). The
company policies and procedures shall take into consideration the
internal controls necessary to offer adequate protection of the assets
entrusted to the company to support its activities. The policies will
also guide the companies in determining sources of additional
21

information relating to laws, regulations, Framework, and handbooks
on financial transactions and accountability of all Government
investments. Companies shall comply with the following key laws and
regulations.
(1) Rwanda Constitution of 2003 with amendments in 2015;
(2) Law n° 79/2013 of 11/09/2013 determining the mission, organization

and functioning of the office of the auditor general of state finances;
(3) Law n°17/2018 of 13/04/2018 Governing Companies;
(4) Law on Direct Taxes on Income no. 16 of 2005 as amended;
(5) Law on Value-added tax no. 37 of 2012 as amended;
(6) Law on Tax Procedures no. 25 of 2005;
(7) Law noo 06/2003, responsible for social insurance providing pensions
and cover;
(8) Organic Law n° 12/2013/ of 12/09/2013 on state finances and

property;
(9) The International Financial Reporting Standards (IFRS) as issued by

the International Accounting Standards Board (IASB);
(10) The Government controlled companies shall operate under, and will be
regulated by, various entities and organs as prescribed from time to
time.
2.4 Key Documents

(1) Compliance checklists, maintained by finance departments, showing
the company’s compliance with the applicable laws and regulations.
This shall be based on a first-line–of-defence approach.
(2) Risk registers showing the identified regulatory risks, including the
risk ratings as either low, moderate, or high. Appendix 1 provides a
summary of the compliance checklist.
(3) Risk Controls Matrix (RCM) showing the controls implemented by

management to identify all regulatory risks in the registers.
(4) Internal audit reports showing compliance status based on a third-

line-of-defence approach.
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2.5 Key Roles and Responsibilities
(1) The Company Secretary or Legal Advisor/Counsel of the Company
shall give advice on the company’s legal and regulatory environment.
(2) Head of Finance, or other such person responsible for the finance
function as the case may be, shall give guidance and offer advice to
ensure adherence to the applicable laws, regulations, instructions,
and standards governing the execution and reporting of the financial
transactions of the company. She/he shall be responsible for
compliance with statutory deductions.
(3) Reconciliations shall be performed by the finance team prior to

submission/declaration of regulatory balances (e.g., taxes) and other
statutory deductions to ensure a complete and accurate record of such
balances in accordance with the accounting system.
(4) There shall be approvals through delegation of authority as will be

consistent with levels of competence and capacity within the limits and
policies established by the Board of Directors.
2.6 Operating Procedures

(1) The Head of Finance of each Government controlled company shall
ensure the availability of sufficient and appropriate process maps and
checklists to facilitate accurate and timely calculation of regulatory
balances (taxes) and submission and/or declaration of the same.
(2) The Head of Legal/Compliance department shall keep a checklist of all

statutory deadlines. A record of all non-compliance issues shall be
escalated.
(3) The Head of Finance shall issue reminders five business days before
each deadline to allow time for the processing staff to accurately
determine the regulatory balances.
2.7 Key Controls

The key controls under the regulatory environment will include the
following:
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(1) Maintenance of compliance checklists by the Finance Department and
escalation to Senior Management of all non-compliance issues within
two business days of their being identified.
(2) Conducting compliance audits at least once a year. The audits shall
be performed by internal audit based on the Risk Controls Matrix.
(3) Implementation of system controls to ensure accurate reporting of risk

controls.
PART THREE: CORPORATE GOVERNANCE
3.1 Introduction
In order to ensure proper financial oversight and accountability, proper
corporate governance structures are required. This section provides a
summary of key corporate governance structures and practices that
each company shall be expected to adhere to.
3.2 Policy Objective

To ensure that the governance and management of GCCs is transparent,
accountable to all stakeholders, meets all regulatory obligations, and
operates at high levels of integrity.

Corporate governance shall reflect a system of rules, practices, and
processes by which a Government-controlled Company is directed
and controlled. Each company shall, through good corporate
governance practices, be expected to balance the interests of
stakeholders, including shareholders, management, customers,
suppliers, financiers, Government, and the community. The corporate
governance principles in place shall provide a framework for attaining
the objectives of the GCC, and shall encompass every sphere of
management, from action plans and internal controls to performance
measurement and corporate disclosure.
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3.4 Key Documents
(1) Performance evaluation forms for Directors’ performance
(2) Strong recruitment controls included in the HR Framework
(3) Board of Directors terms of reference and Charter

The following is a summary of the key roles and responsibilities of various
offices.
(1) Line Ministry
(a) The Minister of the respective line ministry shall be responsible for
major policy decisions relating to Government controlled
companies.
(b) If losses are anticipated in a Government-controlled Company due

to changes in Government policy or other specified reasons, such
matters shall be brought to the notice of the of Minister in charge
of Finance and Economic Planning through the line Minister.
(c) The Minister may call for any reports from Government-controlled
Companies. It will be the responsibility of the Chairman of the
Board to furnish the required information to the line Minister.
(d) The line ministry in charge of the Government-controlled Company

shall be responsible for approving major policy decisions of the
company, with the concurrence of the Minister for Economic
Planning and Finance. The major policy decisions in this case refer
to those with significant impact on the direction of the company.
(e) Line Ministry Shall develop Terms of Reference for Board of

Directors and the Copy shall be provided to Minister in charge of
Finance.
(f) The Line Ministry shall sign a performance contract with the
chairman of the Board.
25

(2) MINECOFIN
(a) MINECOFIN, through the Government Portfolio Management Unit

under the Accountant General’s Office, shall be responsible for
financial management, discipline, and control in Government-
controlled Companies.
(b) The Minister in charge of Finance and Economic Planning, as a

shareholder of Government controlled companies, shall
recommend prospective members of the Boards of Directors to the
Cabinet for appointment.
(c) The Minister in charge of Finance and Economic Planning as a

shareholder, or a proxy, has the power to seek clarification on any
following issues at the annual general meetings:
(i) Strategic plan/ Budgets;
(ii) Financial performance of the current year;
(iii) Development activities undertaken during the year;
(iv) Petitions and any other matters raised in the media and
remedial measures taken;
(v) Auditor Generals reports /Management letter; and,
(vi) Matters arising from the previous meetings of the

Parliamentary Accounts Committee on Government-
controlled Companies.
For the above to be performed as required, Government Controlled

company employees shall avail all records and information,
including explanations of the performance, to the relevant
Ministers and Permanent Secretaries. Such records will include
audited annual reports as well as any other information that may
be of interest to the Public.
(3) Auditor General
(a) The Auditor General shall be the Auditor of all Government-

controlled Companies as per mandate given as per Law No 79/2013
of 11/09/13 and in article 165 of the constitution of the Republic of
Rwanda of 6/2003 revised in 2015.
26

(b) It shall be the duty of the Board of Directors of the company to
inform the Auditor General that they intend to appoint the Auditor
General as the External Auditor.
(c) The Auditor General shall have exclusive prerogative to authorize

other appropriately qualified persons or an audit firm to conduct
audit on his/her behalf to assist in an examination and audit of
accounts of a Government-controlled Company.
(d) The Auditor General shall enter into an agreement with the person
conducting the audit on his/her behalf in accordance with the
provisions of international conventions and national laws applicable
to the audit.
(e) Where the Auditor general appoints a private Audit firm, they will be
rotated every three years.
(f) The Auditor General shall have the responsibility of issuing the audit
opinion on the accounts of the audited entity after completion of the
audit.
(g) The Annual Report and Financial Statements together with the
Auditors’ Reports shall be tabled in Parliament in addition to filing
with the Registrar of Companies, in terms of the Companies Law.
(Art. 16: Organic Law No.001/2016).
(h) Government-controlled Company officers shall avail all relevant

information and explanations in a timely manner so that audited
reports are tabled as per scheduled regulatory timeframes.
(4) Board of Directors
The Board of Directors, as the custodian of Government resources, shall:
(a) Exercise its mandated rights and responsibilities with integrity and
in good faith.
(b) Determine the strategic direction of the Company.
(c) Ensure fulfilment of the legal requirements and also that the
Company operates in accordance with the provisions of the
Incorporation Act/ Memorandum and Articles of Association.
27

(d) Develop policies for implementation by Management so as to achieve
optimum returns and benefits to shareholders and other
stakeholders.
(e) Review Government policy objectives periodically, provide strategic

direction, and formulate long-term goals and objectives for future
growth.
(f) Ascertain that the finances needed to meet company goals and
objectives are generated or obtained on a timely basis for the smooth
functioning of the Company.
(g) Ensure proper financial accountability by maintaining adequate

records and books of accounts.
(h) Ensure that an effective risk management system is in place to

insulate the Company against disruptions, setbacks, and
operational inefficiencies.
(i) Sign a Performance contract between The chairman of the board and
The Head of the Organisation
(j) Oversee the operations of the Company through quarterly meetings

and Ad hoc committees.
(k) Report Board Resolutions to the line Ministry and MINECOFIN as

and when are deliberated and resolved.
(l) Shall appoint board committees to assist in discharging its duties,

Key among them being Risk and audit Committee, nomination and
remuneration committee as well as Investment committee.
(5) Audit Committee
The Audit Committee shall be established by the board of directors (Board) of the
Company.
Audit Committee shall comprise at least three non-executive board members,

chaired preferably by a director possessing financial management skills.
This committee shall meet on a regular basis at least once in three months
with the Head Internal Audit as the convener and shall submit its
observations to the Board of Directors with recommendations for necessary
action. The scope of this committee shall include, amongst others, the
following: -
28

(a) Determination of the responsibilities of the Internal Audit Unit and
review of the annual audit plans
(b) Review and evaluate risk in the company
(c) Review and evaluate internal control systems for all activities of the
entity
(d) Review performance at regular intervals for cost effectiveness and to

eliminate wasteful expenditure etc.
(e) Liaise with external auditors and follow up on Auditor General’s/

external auditors Management Letters.
(f) Ascertain whether statutes, regulations, rules and circulars are

complied with.
(g) Review financial statements to ensure compliance with International

Accounting Standards
(h) Review internal audit/external audit reports, Management Letters for

remedial action
(i) Review implementation of recommendations/directives of the

Committee
(j) Prepare report on the findings of the Committee for inclusion in the
Annual Report
(6) Head of the Company (HOC)
The Head of Company shall be in charge of all operations of the company

under the direction of the Board of Directors.
(7) Head of Finance (HOF)
The Head of Finance shall be responsible for developing and implementing

sound accounting and budgetary control systems. The Head of Finance
shall also be responsible for providing timely information and accounts
to the Board of Directors and to the stakeholders whilst ensuring
transparency and accountability.
(8) Head of Risk
The Head of risk shall;
29

(a) Manage the implementation of all aspects of the risk function,
including implementation of processes, tools and systems to
identify, assess, measure, manage, monitor and report risks.
(b) Assist in the development of and manage processes to identify and

evaluate business areas' risks and risk and control self-
assessments.
(c) Manage the process for developing risk policies and procedures, risk
limits and approval authorities.
(d) Monitor major and critical risk issues.
(e) Manage the process for elevating control risks to more senior levels
when appropriate.
(f) Manage the company risk and control assessment reporting process
as well as manage and maintain infrastructure elements (e.g.
management reporting, including reporting to the board and senior
management).
(9) Head of Internal Audit
The Head of Internal Audit shall be responsible for an independent review and
assurance of systems and procedures as a consulting activity designed
to add value and improve operations for efficiency and effectiveness. The
Head of Internal Audit shall report functionally to the Audit Committee
of the Board of Directors.

(1) Strategic planning (refer to detailed procedures in Part Five of this
Framework).
(2) Annual budgeting (refer to detailed procedures in Part Six of this

Framework).
(3) Risk reporting and monitoring - This role shall be played by all the
stakeholders as identified above. It will be the overall responsibility of
the Board to ensure that all governance-related risks are identified,
documented, mitigated, and reported to the relevant stakeholders in a
timely manner.
30

(4) Quarterly actual versus budget review by the Board of Directors and
monthly actual versus budget review and reporting by Management.
3.7 Key Controls

Each Government-controlled Company shall align its corporate
governance statements to best practice. These statements shall
capture risk appetite, business planning and strategy, and board
committee charters and terms of reference among others. Other key
controls shall include:
(1) Annual reviews of corporate governance statements by the Board of

Directors.
(2) Performance evaluation of the directors on an annual basis.
(3) Ensuring strong recruitment controls at the levels of Director and senior
management.
(4) Ensuring sufficient Board Committees covered by appropriate charters

and terms of reference. This provision shall be driven by business size
and complexity.
The Board of Directors shall review the performance of Government-

controlled Companies through Board meetings and ensure
submission of returns to regulatory agencies, including the line
Ministries and
31

PART FOUR: STRATEGIC PLANNING
4.1 Introduction
Strategic planning, budgeting, and control are essential for the effective
management of any organization. This section contains guidelines on
how Government-controlled Companies will develop plans and link
them to the budgeting process. It further provides for a framework for
budgeting, budget implementation, and monitoring and evaluation.

The broad objective of this policy is to ensure that each Government-
controlled Company has a strategic plan that defines and shapes its
strategic direction and business operations.
4.3 Policy statement

Each Government-controlled Company shall have in place a Strategic
plan, containing short and long-term strategies for the purpose of
shaping the business of the company. The strategic plan shall be
designed in such a way as to make it realistic and attainable, in
addition to reflecting the commitment by the Board of Directors and
Senior Management towards the future prospects of the organization.
Strategic documents shall be rolling in nature and will be in force for
three to five years. The plan of each company shall be aligned to the
medium and long-term plans of the GOR.
4.4 Key Documents Involved

(1) Rwanda Vision 2020
(2) Rwanda Vision 2050
(3) National Strategy for Transformation- NST
(4) Strategic plan
32

(1) The Board of Directors shall set the strategic direction of the company
and approve the draft strategic plan provided by Senior Management.
(2) Senior Management, led by the HOC, shall conduct a market analysis
and develop a draft strategic plan.
4.6 Operating Procedure

(1) The Board of Directors shall:
(a) Set the strategic direction of the company;
(b) Review and approve the draft strategic plans provided by Senior
Management
(c) The Minister in charge of the Line Ministry will be responsible for
authorizing the initial organization structure following approval by
the Board. The Board may thereafter effect minor reviews of the
structure and the line ministry advised on the changes so made.
(2) Senior Management led by the HOC shall conduct a market analysis
based on the following considerations:
(a) Market opportunity
(b) Market segment
(c) Target market
(d) Competitors
(e) Perform competitor analysis
(f) Lead the collection of information and analyze competitors so as to

establish competitive price and product quality. Market analysis
shall cover the strengths, weaknesses, opportunities, and threats
(SWOT). These processes could be outsourced to reputable firms
to ensure quality plans.
(g) Develop an organization structure that performs and responsibility

determination that better support achievement of the strategic
plans and objectives.
33

4.7 Key Controls
(1) The approved strategic plan and an updated annual budget shall be
reviewed by the Board of Directors to assess the performance of
company
PART FIVE: BUDGETING
5.1 Introduction
This section provides detailed policy and procedures for budget
preparation, implementation, and monitoring and evaluation.

To ensure that each company prepares and implements a prudent budget
in line with its strategic plans and the national agenda.
Each company shall be expected to prepare and implement an annual

Functional/departmental (cost centres) budget in line with the chart
of accounts. Consequently, the budget preparation process shall be
consistent with national priorities and objectives as well as the
company strategic plan. The budget preparation process will also be
undertaken with due regard to the company mission and vision.
5.4 Key Documents

(1) The company strategic plan, annual work plans, procurement plans,
and Human Resource plans.
(2) Previous year’s budgets as benchmarks to guide future targets
(3) Management accounts and variance reports
(4) Previous year’s Annual Report and Financial Statements
(5) Departmental planned activities and mini-budgets that feed into the
main company budget. These shall include previous year’s departmental
34

budget versus actual as well as planned activities for the current
budgeting year.
(6) Budget call circulars from MINECOFIN.

Heads of Department shall be responsible for all departmental budgets
based on current and capital expenditures.

(1) Each Company shall prepare both capital and operating budgets in line
with the strategic plan and any other relevant direction issued by
MINECOFIN. The following are the key steps to be followed in the
budgeting process:
(a) The Head of Finance shall send budget preparation instructions to

the team leaders based on their functions and departments,
nature and form (recurrent and capital). They will include the
following:
(i) Budget framework
(ii) Budget departmental ceiling
(iii) Method of budgeting ( zero based, incremental, standard

costing, bottom up, activity based and or programme based)
(iv) Steps to be taken in preparation of departmental budgets
(v) Budget templates for revenue, recurrent and capital items
(vi) Timelines
(a) Using the strategic plan, the Heads of Department (team leaders)
shall discuss the strategic direction of the company in relation to
budgeting issues.
(b) Each department shall hold meetings to discuss departmental

budget plans (including Human Resource Plans, procurement
plans, and other operational plans) in line with the company
strategy and objectives.
35

(c) Departments shall prepare draft budgets by also making reference
to the previous year’s actual expenditure with an explanation of
variances exceeding 10% per line item.
(d) The draft budget figures shall be discussed with the respective
Heads of Department. At this initial point, changes can be made to
the departmental budgets.
(e) The Head of Finance shall prepare the first draft of the budget by
consolidating individual departmental budgets.
(f) Budget documentation shall consist of:
(i) Introduction - Chairman of the Board and the Head of

Company Message and Budget Overview to articulate priorities
for the Company’s Budget including organization-wide long-
term strategies.
(ii) The Budget Process section describing the budget document,

the process for preparing the budget, and the budget changes
during the past budget year.
(iii) The Financial Structure and Policies section describing the

Company’s capital structure and how it is intended to illustrate
the policy and planning elements of the Company financial
plan as a whole. This section shall contain, ongoing budget
practices, debt management policy, cash management issues,
and other fiscal management topics.
(iv) The Financial Summaries containing summary of financial

information (Actual past and estimates) for the Company as a
whole, and revenue and expenditure summaries for the
company:
1. Budget Income and expenditure
2. Budget Balance Sheet
3. Budget Cash Flow Statement
4. Budget Capital Expenditure
(v) The General Government Outlook providing a strategic look

(long-term) at the estimates and future impact of current
Government decisions on the company
36

(vi) The Capital and Debt section describing the capital budgeting
process and providing details of Companywide capital
expenditures and their estimated impact on the company-
Action Plans.
(vii) The Personnel Summary containing personnel counts and

other staffing analysis.
(viii) The Departmental Budget sections depicting the specific

spending plans of all departments of the Company.
(ix) The Supplemental Information section providing additional

information including a community profile, demographics and
economic information.
(x) The Glossary including definitions of terminology that is not

readily understandable to a reasonably informed lay person.
Acronyms used in the budget document will also be listed.
(2) Senior Management Team shall review the first draft of the budget and
give feedback to Heads of Department. Revisions may be processed on
the initial budgets following instructions from Senior Management.
(3) The Head of Finance shall review the compiled final budget for alignment
with the company strategy. The final budget shall be discussed with the
HOC before submission to the Board committee responsible for
budgeting.
(4) The budget proposals shall be discussed by the Board committee

responsible for budgeting and recommended to the Board of Directors
for final approval.
(5) Approved budgets shall be forwarded to the line Ministry and to

MINECOFIN for information.
(6) Companies that receive Government funding shall seek budget approval
from the line Ministry and MINECOFIN.
(7) Each company shall maintain three budget scenarios; proposed,

approved, and revised budgets. The approved and revised budgets shall
be passed by the relevant organs of the Board carrying this mandate.
(8) Company budget timelines shall be reviewed and recommended by the

Finance Committee (or other relevant Committee depending on the
company) and approved by the Board of Directors.
37

(9) Company budgets shall form the basis of expenditure to be incurred by
Management and as such no expenditure may be incurred without an
approved budget.
(10) Project proposals which are not part of the annual draft budget shall be
prepared by management in accordance with the mandate of the
company. Project proposals shall be prepared and approved by the Head
of the Organisation in line with the existing mandate.
(11) The implementation of project proposals shall be carried out with the
approval of the Head of the Organisation when the project is funded or
when it is approved by the Board of Directors.
5.7 Budget Implementation, Monitoring and

Evaluation
(1) The annual budget, as approved by the Board of Directors, shall be
uploaded into the Budget Module System by the Head of Finance at
commencement of each financial year, after which the budgeted
activities may commence.
(2) Upon approval of the budget, the HOC shall appoint each departmental
head as the expenditure officer. These instructions shall be issued in
writing as part of the appointment letter.
(3) All expenditure shall be approved through a delegated approach against

specific budget lines prior to commitment and actual spending.
(4) Departmental heads shall provide, to the Head of Finance, a monthly

expenditure report outlining the actual expenditures incurred in
relation to the budget.
(5) The Head of Finance shall consolidate the departmental reports and
prepare management reports for discussion by Senior Management
Team (SMT) for action. Budget implementation reports shall include:
(a) Monthly expenditure report indicating the month’s expenditures

against the budget. These reports shall be prepared by each
Spending Unit and consolidated by the Head of Finance.
38

(b) Quarterly expenditure report indicating the quarter’s expenditure,
performance against budget, and narrative descriptions of key
factors impacting implementation of the budget.
5.8 Budget Revision/reallocation Procedures

(1) Departments shall undertake the actual versus budget performance
analysis and prepare reports, no later than May 31 of each year (for
companies that have December 31 as year-end) or November 30 of each
year (for those that have June 30 as year-end) outlining the line budgets
identified for revision/reallocation. These reports shall be reviewed by
the Head of Finance and forwarded to the HOC for approval.
(2) The consolidated revision/reallocation request, consisting of all the

requests for revision from the various departments, shall be reviewed
by Head of Finance and submitted to the Senior Management Team
(SMT) for further review and recommendation to the Board of Directors.
(3) The HOC shall request the Board of Directors for authority to undertake
the revision/reallocation of line budgets based on the submitted
revision request.
(4) Upon approval of the request for revision, the Head of Finance shall
prepare the Supplementary Budget, including revisions.
5.9 Key Controls

(1) Monitoring and reporting actual performance against internal budgets
on a monthly basis to assess whether targets have been met.
(2) Development of revised forecasts to manage gaps between budget

estimates and actual results in order to identify and respond to changes
in the external environment or internal operations.
(3) The Head of Finance shall consult with the line managers responsible
for spending to identify reasons for any variances between the actual
performance and forecasts
(4) Senior Management shall undertake monthly budget reviews

comparing actual to budgeted performance.
(5) Conduct monthly review of management accounts to ensure accurate

month-on-month reflection of the performance of GCCs.
39

(6) Preparation of monthly monitoring reports for each level of budget
accountability, including the preparation of appropriate summaries of
these reports for each level of management.
PART SIX: RISK MANAGEMENT
6.1 Introduction
All the activities undertaken by a business entity carry an element of risk.
The exposure to these risks is managed through the practice of risk
management, which entails taking advantage of potential
opportunities while managing potential adverse effects. Managing risk
is the responsibility of everyone in the company. This policy outlines
the company’s risk management process and also sets out the
responsibilities, in relation to risk management, of the Board of
Directors, Audit and Risk Committee, Head of organisation, senior
management, and other senior staff within the Company.

The Company shall have a responsibility to manage risks effectively in
order to control its assets and liabilities, protect its employees and
stakeholders against potential losses, minimise uncertainty in
achieving its goals and objectives and maximise the opportunities to
achieve its vision mission.

(1) To provide a mechanism for assessment of acceptable levels of risk.
(2) To ensure entrenchment of a strong risk culture and understanding of

the application of risk management practices by the board of directors,
officers, employees, and where relevant, contractors and consultants of
the company.
(3) To reduce the consequence and/or likelihood of potentially damaging

events through regular reviews of strategies for risk prevention and/or
by transferring the impact of potentially damaging events to third parties
(e.g. insurance).
40

6.4 Key Documents
Compliance Register - a list of compliance requirements - Appendix 2
Risk Register- A tool for documenting risks, and actions to manage each
risk - Appendix 3
Risk Control Matrix makes reference to the underlying control

documentation - Appendix 4

The Board of Directors shall be responsible for the oversight role in the
implementation of the risk management framework.
(2) Audit and Risk Management Committee
The Audit and Risk Management Committee shall be responsible for

advising the Board of Directors on risk and compliance as well as
assisting the Board to fulfil its risk management and oversight
responsibilities.
(3) Internal Audit
Shall provide objective assurance to the board through the Audit Risk
committee on the effectiveness of risk management by:
(a) Giving assurance that Risk management is properly managed;
(b) Evaluating Risk Management;
(c) Giving assurance that risk is correctly evaluated;
(d) Evaluating Risk Management reporting structure.
(4) Senior Management
Members of the top management (Senior Management) of the Company shall

ensure the development of systems, processes, and controls to minimize
the identified risks to an acceptable level.
41

(5) Employees
All employees shall be required to report to their managers or supervisors

any new risks or changes to existing risks as soon as they become
aware of the risks.
(6) External Auditor
The external auditor shall be responsible for providing an independent

opinion of the financial position of the Company. In undertaking this
role, the external auditor will also provide comments on the
management of the internal controls and Risk.
(7) Head of Risk
The Head of Risk shall be accountable to the company for

companywide risk management. The Head of Risk will:
(a) Be fully independent of a Company’s individual business units;
(b) Have sufficient authority, stature and resources for the effective
execution of their responsibilities;
(c) Have unfettered access to any parts of the Company’s business

capable of having an impact on the Company's risk profile;
(d) Ensure that the data used by the firm to assess its risks are fit for
purpose in terms of quality, quantity and breadth;
(e) Provide a challenge of the company's systems and controls in

respect of risk management;
(f) Ensure the adequacy of risk information, risk analysis and risk
training is provided to members of the company's governing body;
(g) Report to the company's audit and risk board committee on the
company's risk exposures relative to its risk appetite and
tolerance, and to the extent to which the risks inherent in any
proposed business strategy and plans are consistent with the
governing body’s risk appetite and tolerance;
(h) Alert the company's governing body to and provide

recommendations on, any business strategy or plans that exceed
the company's risk appetite and tolerance; and
42

(i) Provide risk-focused advice and information into the setting and
individual application of the Company's to Management.
6.6 Operation Procedures

(1) Head of Risk shall prepare a risk management framework.
(2) Head of Risk shall identify the general activities involved in running the
business (i.e., risk categories).
(3) Head of Risk shall identify the risks involved in undertaking the specific
business activities by asking the following questions:
(a) What could happen?
(b) How (and why) could it happen?
(4) The Head of Risk shall rate the likelihood of a business activity not
being performed properly. The likelihood of such an occurrence will be
assessed under the assumption that no risk management and
compliance processes are in place.
(5) The likelihood of the business activity not being performed properly
shall be assessed as per the following categories: Almost Certain,
Likely, Possible, Unlikely, or Rare.
(6) Head of Risk shall rate the consequence of not performing a business
activity properly by quantifying the associated damage in terms of
financial loss to investors and/or the company. Damage shall be
assessed as catastrophic, major, severe, serious, or minor.
(7) The Head of Risk shall assign the inherent risk rating based on a
combination of the risk rating. Low and medium risks may be
considered acceptable and therefore minimal further work on these
risks may be required. The risk rating may be assessed as Critical,
High, Significant, Medium, or Low.
(8) The Head of Risk shall decide whether some kind of control (e.g., policy,
procedure, checklist, reporting mechanism, or account reconciliation)
is necessary based on the level of risk, likelihood of risk occurrence,
and the consequences of the risk if it were to occur. A risk control
process will then be identified.
43

(9) Head of Risk shall assess whether the existing controls are adequate
and allocate the responsibility of monitoring the control for addressing
the risk. This will entail the integration of risk management and
compliance into the daily activities and facilitate appropriate control of
operational risk.
(10) In the absence of the Head of Risk, The Board of Directors shall
designate the Head of Finance or any other qualified person in the
company the role of managing risks across the organization through
communicating the risk policy and responsibilities.
(11) The Head of Finance/Head of Risk shall routinely monitor and review
ongoing risks so that they can be managed effectively.
(12) Head of risk shall report to senior management on monthly basis risks
identified and mitigation.
(13) The formats of the Risk Assessment Matrix and Risk Register are shown
in Appendix 3 and 4 of this Framework.
6.7 Key Controls

(1) Risk registers should be established to identify the key regulatory and
compliance risks faced by the GCC. Controls shall be documented
against the key risks.
(2) Financial Risk summary - Appendix 5.
44

PART SEVEN: ACCOUNTING POLICIES
7.1 Introduction
The accounting policies contained in this section will reflect the principles,
rules, and procedures applied during the preparation of financial
statements by the management of Government controlled companies.
These policies will also include the methods, assumptions,
measurement systems, and procedures for presenting disclosures.

To ensure that each Government controlled company prepares its financial
statements in line with the International Financial Reporting
Standards (IFRS) as well as the International Accounting Standards
(IAS).

The financial statements of the company shall be prepared in accordance
with Law N°17/2018 of 13/04/2018 Governing Companies and
International Financial Reporting Standards (IFRS), as adopted by the
International Accounting Standards Board (IASB), and other
authoritative pronouncements of the IASB as accepted by ICPAR. The
standards guiding the preparation of financial statements, as aligned
to IFRS, shall be applied in all Government controlled companies as
shown in Table 2.
Table 2: Application of Standards Guiding the Preparation of Financial Statements
Standard Applicability
IAS 1 Presentation of Financial
Statements All
Companies holding
IAS 2 Inventories
inventories
IAS 7 Statement of Cash flows All
45

IAS 8 Accounting Policies, Changes in
All
Accounting Estimates and Errors
IAS 10 Events after Reporting Period All
Companies with construction
IAS 11 Construction Contracts
contracts
IAS 12 Income Taxes All
IAS 16 Property Plant and Equipment All
IAS 17 Leases All
IAS 18 Revenue All
IAS 19 Employee Benefits All
IAS 20 Accounting for Government
All entities with Government
Grants and Disclosure of
grant income
Government Assistance
Companies holding foreign
IAS 21 The Effects of Changes in
currency
Foreign Exchange Rates
assets/liabilities
Companies borrowing to
IAS 23 Borrowing Costs
invest in capital projects
IAS 24 Related Party Disclosures All
Companies with own
IAS 26 Accounting and Reporting by
managed retirement
Retirement Benefit Plans
benefit plans
IAS 27 Separate Financial Statements Companies with subsidiaries
Companies that have
IAS 28 Investments in Associates and invested in other
Joint Ventures companies where they
have significant
influence but no control
IAS 32 Financial Instruments- Companies that have equity
Presentation instruments
IAS 33 Earnings per Share All
Companies that produce
IAS 34 Interim Financial Reporting interim financial
statements
46

IAS 36 Impairment of Assets All
IAS 37 Provisions, Contingent
All
Liabilities and Contingent Assets
IAS 38 Intangible Assets All
IAS 39 Financial Instruments-
recognition and Measurement All
Companies that own

IAS 40 Investment Property
investment property
Companies that carry out
IAS 41 Agriculture
agricultural activities
IFRS 1 First Time Adoption of Companies departing from
International Financial other frameworks to
Reporting Standards adopt IFRS
Companies that provide
IFRS 2 Share Based Payments remuneration in the
form of their own shares
IFRS 3 Business Combinations
Companies with acquisitions,
mergers/amalgamations
Companies that underwrite

IFRS 4 Insurance Contracts
risks
IFRS 5 Non-Current Assets held for
Companies holding assets to
Sale and Discontinued
dispose
Operations
IFRS 6 Exploration for and Evaluation Companies involved in
of Mineral Resources mineral exploration
IFRS 7 Financial Instruments
All
Disclosures
(Effective commencing 1 January All
2018)
IFRS 10 Consolidated Financial
Companies with subsidiaries
Statements
47

Companies involved in joint
IFRS 11 Joint Arrangements
ventures and operations
IFRS 12 Disclosure of Interests in Disclosures for IFRS 10 and
Other Entities 11 companies
IFRS 13 Fair Value Measurement All
IFRS 15 Revenue from Contracts with
Customers (Effective Companies with contract
commencing 1 January 2018) revenue
IFRS 16 Leases (Effective

Companies with leases
commencing 1 January 2018)
(Effective commencing 1 January Companies underwriting risk
2021)
Standard Applicability
IAS 1 Presentation of Financial
All
Statements
Companies holding
IAS 2 Inventories
inventories
IAS 7 Statement of Cash flows All
IAS 8 Accounting Policies, Changes
in Accounting Estimates and All
Errors
IAS 10 Events after Reporting Period All
Companies with construction
IAS 11 Construction Contracts
contracts
IAS 12 Income Taxes All
IAS 16 Property Plant and
All
Equipment
IAS 17 Leases All
IAS 18 Revenue All
IAS 19 Employee Benefits All
48

IAS 20 Accounting for Government
All entities with Government
Grants and Disclosure of
grant income
Government Assistance
Companies holding foreign
IAS 21 The Effects of Changes in
currency
Foreign Exchange Rates
assets/liabilities
Companies borrowing to
IAS 23 Borrowing Costs
invest in capital projects
IAS 24 Related Party Disclosures All
Companies with own
IAS 26 Accounting and Reporting by
managed retirement
Retirement Benefit Plans
benefit plans
IAS 27 Separate Financial
Statements
Companies that have
invested in other
IAS 28 Investments in Associates
companies where they
and Joint Ventures
have significant
influence but no control
IAS 32 Financial Instruments- Companies that have equity
Presentation instruments
IAS 33 Earnings per Share All
Companies that produce
IAS 34 Interim Financial Reporting interim financial
statements
IAS 36 Impairment of Assets All
IAS 37 Provisions, Contingent
Liabilities and Contingent All
Assets
IAS 38 Intangible Assets All
IAS 39 Financial Instruments-
All
recognition and Measurement
Companies that own
IAS 40 Investment Property
investment property
49

Companies that carry out
IAS 41 Agriculture
agricultural activities
IFRS 1 First Time Adoption of Companies departing from
International Financial other frameworks to
Reporting Standards adopt IFRS
Companies that provide
IFRS 2 Share Based Payments remuneration in the
form of their own shares
Companies with acquisitions,
IFRS 3 Business Combinations
mergers/amalgamations
Companies that underwrite
risks
IFRS 5 Non-Current Assets held for
Companies holding assets to
Sale and Discontinued
dispose
Operations
IFRS 6 Exploration for and
Companies involved in
Evaluation of Mineral
mineral exploration
Resources
All
Disclosures
(Effective commencing 1 All
January 2018)
IFRS 10 Consolidated Financial
Statements
Companies involved in joint
IFRS 11 Joint Arrangements
ventures and operations
IFRS 12 Disclosure of Interests in Disclosures for IFRS 10 and
Other Entities 11 companies
IFRS 13 Fair Value Measurement All
IFRS 15 Revenue from Contracts
Companies with contract
with Customers (Effective
revenue
50

IFRS 16 Leases (Effective
Companies with leases
(Effective commencing 1 Companies underwriting risk
January 2021)
The choice of an accounting policy for use in the recognition,

measurement, and disclosure of assets, liabilities, revenues, and
expenses shall at all times be consistent with the applicable standard.
The Head of Finance shall disclose any deviation with the Audit
Committee.
7.4 Key Documents

(1) International Financial Reporting Standards checklists
(2) Circulars from ICPAR
(3) Circulars from MINECOFIN

(1) The Board of Directors shall set policies to guide the achievement of
organisational objectives. The Board will also offer guidance for, and also
monitor, the implementation of these policies on behalf of shareholders.
(2) The Audit Committee, through the internal audit function, shall monitor
the company’s compliance with the accounting and financial
management standards and regulations.
(3) The HOC, with advice from the Head of Finance, shall ensure
implementation of the accounting policies in the organization.
(4) The Head of Finance shall be the custodian of the company’s accounting
policies and will offer professional advice to Management and the Board
of Directors.
51

The Head of Finance shall ensure the accounting policies that the
company adopts in preparation of Accounts are in compliance with
IFRS as per the Article 121 Law n°17/2018 of 13/04/2018 Governing
Companies;
This section provides a summary of the policies applicable in various

circumstances.
(1) Recognition of revenue
Revenue shall be recognized under the following circumstances:
(a) The possibility that the economic benefits accruing from the identified
revenue source will flow to the Government controlled company; and
(b) The revenue can be measured in a reliable manner.
(c) In cases of donations, gifts, and events income, income shall be

recognized at the earlier of receipt or notification that the monies have
been secured. Where the Government controlled company receives a
non-reciprocal contribution of an asset for no or nominal
consideration, the asset is to be recognized at fair value and a
corresponding amount of revenue is recognized.
(2) Interest income
This shall be recognised as it accrues and due consideration will be given

to the interest rates applicable on the financial asset. Income on loans
shall be recognised in accordance with the terms of the relevant
agreement.
(3) Government grants
Accounting for grants:
(a) A Government grant is recognised only when there is reasonable

assurance that the entity will comply with any conditions attached to
the grant and the grant will be received. [IAS 20.7]
(b) The grant is recognised as income over the period necessary to match
them with the related costs, for which they are intended to compensate,
on a systematic basis. [IAS 20.12]
52

(c) Non-monetary grants, such as land or other resources, are usually
accounted for at fair value, although recording both the asset and the
grant at a nominal amount is also permitted. [IAS 20.23]
(d) Even if there are no conditions attached to the assistance specifically

relating to the operating activities of the entity (other than the
requirement to operate in certain regions or industry sectors), such
grants should not be credited to equity. ]
(e) A grant receivable as compensation for costs already incurred or for

immediate financial support, with no future related costs, should be
recognised as income in the period in which it is receivable. [IAS 20.20]
(f) A grant relating to assets may be presented in one of two ways: [IAS
20.24]
(g) As deferred income, or by deducting the grant from the asset's carrying
amount.
(h) A grant relating to income may be reported separately as 'other income'

or deducted from the related expense. [IAS 20.29]
(i) If a grant becomes repayable, it should be treated as a change in

estimate. Where the original grant related to income, the repayment
should be applied first against any related unamortised deferred credit,
and any excess should be dealt with as an expense. Where the original
grant related to an asset, the repayment should be treated as increasing
the carrying amount of the asset or reducing the deferred income
balance. The cumulative depreciation which would have been charged
had the grant not been received should be charged as an expense. [IAS
20.32]
(4) Cash and cash equivalents
Cash on hand and in banks as well as short-term deposits shall be stated

at nominal value. For purposes of the Statement of Cash Flows, cash
shall include cash on hand and in banks, as well as money market
investments that are readily convertible to cash within three months,
net of outstanding bank overdrafts.
53

(5) Receivables
(a) Loans made to directors, shall be recognized initially at fair value and
subsequently measured at amortized cost using the effective interest
method, less an allowance for any uncollectable amounts. This
approach will ensure that the value of receivables reflects the present
value of future cash flows expected to arise from the continuing use of
the asset.
(b) Collectability of receivables shall be reviewed on a continuous basis.

Debts identified as uncollectable shall be written off. A provision for
doubtful debts shall be raised when there is objective evidence that the
Government controlled company will not be able to collect the debt.
(6) Investments
(a) Financial assets shall be classified as either loans and receivables or

available-for-sale investments, where appropriate. When financial
assets are recognized initially, they shall be measured at cost, this
being the fair value of the consideration given including the
acquisition charges associated with the investment.
(b) Available-for-sale investments shall be measured at fair value less

the estimated selling costs after initial recognition. In this case, the
gains or losses shall be recognized as a separate component of equity
until the investment is sold, collected, or otherwise disposed of.
Alternatively, this will be the case until the investment is determined
to be impaired, at which time the cumulative gain or loss previously
reported in equity shall be included in the Statement of Profit or Loss
and Other Comprehensive Income.
(c) In the case of investments where there is no quoted market price, fair
value shall be determined using valuation techniques such as recent
arms-length market transactions, recoverable amount, or reference
to the current market value of another instrument that is
substantially similar. The determination of fair value shall make as
much use as possible of available market data while keeping
judgmental inputs to a minimum.
(d) Investments in associates are(which the Government controlled

company exercises significant influence, but does not control even
jointly )and the joint ventures (are business agreements in which two
54

or more companies agree to pool resources in accomplishing a
particular task ) shall be accounted for in the financial statements
using the equity method. Under this method, the GCC’s share of the
post-acquisition profits or losses of associates and the joint venture
shall be recognised in the Statement of Profit or Loss and Other
Comprehensive Income. The share of post-acquisition movements in
reserves shall be recognised in the reserves.
(e) The cumulative post-acquisition movements shall be adjusted

against the cost of the investment. Investments in associates and the
joint venture shall be reviewed annually for any indicators of
impairment and any diminution considered to be other than
temporary shall be fully provided for.
(7) Property, Plant and Equipment
(a) Property, plant, and equipment shall be stated at cost less

accumulated depreciation and any impairment in value. Asset cost
shall be the cost of acquisition, being the purchase consideration
determined as at the date of acquisition plus costs incidental to the
acquisition.
(b) An item of property, plant and equipment shall be de-recognised

upon disposal or when no further future economic benefits are
expected from its use or disposal.
(c) Any gain or loss arising on de-recognition of the asset (calculated as

the difference between the net disposal proceeds and the carrying
amount of the asset) shall be included as profit or loss in the year
that the asset is de-recognised.
(d) An estimation of the useful life of an asset shall be based on

experience as well as manufacturers’ warranties. Adjustments to
useful life shall be made when considered necessary. Depreciation
shall be calculated over the depreciable amount, which is the cost of
an asset, or other amount substituted for cost, less its residual value.
(e) Depreciation shall be recognised in profit or loss on a straight-line

basis over the estimated useful life of each part of an item of property,
plant, and equipment, since this most closely reflects the expected
pattern of consumption of the future economic benefits embodied in
the asset.
55

(8) Impairment
(a) The carrying values of the property, plant, and equipment shall be
reviewed for impairment at each reporting date. Where an indicator
of impairment exists, the Government controlled company shall
make a formal estimate of the recoverable amount. Where the
carrying amount of an asset exceeds its recoverable amount, the
asset shall be considered impaired and will be written down to its
recoverable amount.
(b) The recoverable amount shall be the greater of fair value less cost to
sell and value in use.
(c) The provision accounts in respect of loans, receivables, and

investments shall be used to record impairment losses unless the
Government controlled company is satisfied that no recovery of the
amount owing is possible; at that point, the amounts shall be
considered irrecoverable and shall be written off against the financial
asset directly.
(d) Impairment losses shall be recognised in the Statement of Profit or

Loss and Other Comprehensive Income in the year in which they
arise.
(9) Leases
(a) The determination of whether an arrangement is or contains a lease

shall be based on the substance of the arrangement and will require
assessment of whether the fulfilment of the arrangement is
dependent on the use of a specific asset or assets and also whether
the arrangement conveys a right to use the asset.
(b) Leases shall be classified at their inception as either operating or

finance leases based on the economic substance of the agreement so
as to reflect the risks and benefits incidental to ownership.
(c) Finance leases, which transfer to the Government controlled

company substantially all the risks and benefits incidental to
ownership of the leased asset, shall be capitalised at the inception of
the lease at the fair value of the leased property or, if lower, at the
present value of the minimum lease payments.
56

(d) Lease payments shall be apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate of
interest on the remaining balance of the liability.
(e) Finance charges shall be recognised as an expense in the Statement

of Profit or Loss and Other Comprehensive Income.
(f) Capitalised leased assets shall be depreciated over the shorter of the
estimated use of the life of the asset or the lease term.
(g) Leases where the leasing entity retains substantially all the risks and
benefits of ownership of the asset shall be classified as operating
leases. Operating lease payments shall be recognised as an expense
in the Statement of Profit or Loss and Other Comprehensive Income
on a straight-line basis over the lease term. Lease incentives shall be
recognised in the Statement of Profit or Loss and Other
Comprehensive Income as an integral part of the total lease expense.
(10) Payables
Trade payables and other unpaid payables arising upon the obligation to
make future payments in respect of the purchase of these goods and
services shall be carried at amortised cost. They shall represent
liabilities for goods and services prior to the end of the financial year.
(11) Employment benefits
(a) Liabilities for wages and salaries, including non-monetary benefits,

annual leave and accumulating sick leave expected to be settled
within 12 months of the reporting date shall be recognised in other
payables and provisions for employee benefits up to the reporting
date. Liabilities for non-accumulating personal leave are recognised
when the leave is taken and they shall be measured at the rates paid
or payable.
(b) The liability for long service leave shall be recognised in the provision
for employee benefits and it will be measured as the present value of
expected future payments to be made in respect of services provided
by employees up to the reporting date.
57

(12) Provisions
(a) Provisions shall be recognised under the following circumstances: the

Government controlled company has a present obligation as a result of
a past event; it is probable that an outflow of resources embodying
economic benefits would be required to settle the obligation; and a
reliable estimate can be made of the amount of the obligation.
(b) The expense related to any provision shall be presented in the Statement
of Profit or Loss and Other Comprehensive Income net of any
reimbursement.
(c) If the effect of the time value of money is material, provisions shall be
determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money
and, where appropriate, the risks specific to the liability.
(d) Where discounting is used, the increase in the provision due to the
passage of time shall be recognised as a finance cost.
(e) Good provisions shall be made for the present value of anticipated costs
of the future restoration of leased office premises.
(f) The amount provided shall be based on the future cost estimates
associated with dismantling alterations or additions made to the
premises upon initial occupation.
(g) The uncertainties associated with estimating these costs may result in
future actual expenditure differing from the amounts currently
provided. The provision for each site shall be periodically reviewed and
updated based on the facts and circumstances available at the time.
(13) Interest bearing liabilities
All loans shall be initially recognised at cost, being the fair value of the
consideration received, less directly attributable transaction costs.
After initial recognition, loans shall be subsequently measured at
amortised cost. Gains and losses shall be recognised in the Statement
of Profit or Loss and Other Comprehensive Income when the liabilities
are derecognised.
(14) Taxation
Income tax expense shall comprise current tax (i.e., amount of tax for the
period determined in accordance with the Rwanda Revenue Authority)
58

and deferred tax. Current tax liabilities for the current period shall be
measured as the amount expected to be paid to the taxation authority
based on the current period’s taxable income. The tax rates and tax
laws used to compute the amount shall be those that are enacted or
substantively enacted by the Statement of Financial Position date.
(15) Foreign currency translation
(a) Foreign currency accounting shall follow IAS 21.
(b) Foreign currency transaction shall be recorded initially at the rate of

exchange at the date of the transaction (use of averages is permitted
if they are a reasonable approximation of actual) [IAS 21.21-22].
(c) Non-monetary items carried at historical cost should be reported

using the exchange rate at the date of the transaction, non-monetary
items carried at fair value should be reported at the rate that existed
when the fair values were determined.
(d) Monetary assets and liabilities denominated in foreign currencies

shall be retranslated at the rate of exchange ruling at the end of the
period (month). All exchange differences in the financial report shall
be taken to the Statement of Profit or Loss and Other Comprehensive
Income.
(e) Rates applicable shall be quoted from National Bank of Rwanda.
(16) Service concessions where the company offers public services at a

concession shall be treated in accordance with IFRIC 12 and
disclosures in SIC 29 with reference to IPSAS 32.
7.7 Key controls

(1) Internal audits, external audits, and management control procedures
shall be carried out to ensure adherence to internal controls.
(2) There shall be an annual review of policies to check for compliance with
accounting standards.
(3) Where accounting standards are updated or revised by the IASB, the
specific policies affected shall be aligned with any such changes for
continual compliance with the requirements of the reporting standards.
59

PART EIGHT: ACCOUNTING AND CONTROL
SYSTEMS
8.1 Introduction
This section presents the accounting internal controls systems that shall
be put in place by the Board of Directors and management to prevent,
detect, and correct miss-statements in financial accounting arising
from fraud or error. These controls provide a reasonable level of
assurance regarding the achievement of the objectives of the company
in relation to financial reporting.

To ensure that adequate and appropriate internal control systems are put
in place to minimize risks of error and/or fraud in the financial
reporting systems.
It shall be the duty of the Board of Directors to ensure that each

Government controlled company has sound internal controls to
achieve complete and accurate financial reporting to all users of the
financial reports.

It is the desire of the Government that the Government-controlled
Companies implement a mix of preventive and detective controls to
enhance efficiency and effectiveness in the preparation of reliable
financial statements in accordance with all the applicable IFRSs as
well as the laws and regulations.
8.4 Key Documents

Standard templates shall be used to capture the various business
transactions taking place in every Government controlled company to
maintain an audit trail of every event. Examples of the standard
templates shall, at the most minimum, include the following:
60

(1) Quotation
Each company shall send a quotation to the customer stating the fixed
price that would be charged to produce or deliver goods or services.
Quotations shall not be changed once accepted by the customer.
(2) Purchase Order
(a) Two copies of the purchase order shall be made; one shall be sent to
the company supplying the goods or services, and the other shall be
retained internally for use in keeping track of orders. Purchase orders
shall be numbered sequentially.
(b) Purchases orders or local service orders shall be prepared by the

Head of Procurement.
(c) Purchase orders shall be authorized by the HOC or other staff under
delegated authority.
(3) Sales Order
The Sales Orders shall be numbered sequentially to enable the company

keep track of the orders placed.
(4) Goods Received Note
The Goods Received Notes shall be prepared by the Stores or Goods

receiving area for all inventory items received.
(5) Goods Dispatched Note
For all goods dispatched, the company shall keep a record of Goods
Dispatched Notes in case of queries by customers in relation to the
goods sent.
(6) Invoice
An Invoice shall be raised for each billing. All invoices shall be numbered
sequentially and cancellations clearly documented.
(7) Statement or Account Statement
Supplier statements shall be maintained every month for use in

reconciling the amounts owed to suppliers as recorded in the
accounting system.
(8) Credit Note
61

A Credit Note shall be raised and approved for all sales returns or
reversals.
(9) Debit Note
In the event that adjustments should be made to billings to increase

invoice amounts, Debit Notes shall be generated with clear
descriptions of the nature of additional billing.
(10) Remittance Advice
A Remittance Advice shall be sent to all suppliers with detailing of the

invoices being paid for and/or credit notes which have been offset.
(11) Receipt or Official Receipt
A receipt shall be issued at all times as confirmation of payment received

in respect of sales.
(12) Internal Audit Charter
This is a formal document, which defines the purpose of internal audit,

authority, responsibility, and position within an organisation. It may
also be referred to as “terms of reference” of the internal audit function
(see Appendix 8 for a sample internal audit charter).

Board Audit Committee
The Board Audit Committee shall perform its functions as per the audit
charter and these may include the following:
(1) Review and evaluate internal control systems for all activities of the
company.
(2) Review performance of the company at regular intervals for cost

effectiveness and elimination of wasteful expenditure among other
factors.
(3) Liaise with external auditors and follow up on the Auditor

General’s/external auditors’ management letters.
(4) Ascertain compliance with statutes, regulations, rules, and circulars.
62

(5) Review financial statements to ensure compliance with accounting
standards.
(6) Review internal audit/external audit reports, Management Letters for

remedial action.
(7) Review the implementation of recommendations/directives by the

Committee on Government-controlled Companies.
(8) Prepare reports on the findings of the Audit Committee for inclusion in
the Annual Report.

(1) Chart of Accounts
(a) The chart of accounts shall be the foundation of the accounting system
and will be clear enough as to distinguish all the individual accounts. A
chart of accounts provides the structure for the general ledger accounts.
It lists specific types of accounts, describes each account, and includes
account numbers.
(b) Best practices today and in compliance with IFRS dictate a hierarchical
chart of accounts structure to take advantage of the benefits offered by
computerized accounting systems.
(c) The chart of accounts for each company should mimic the organizational
structure; the programmatic or functional classification; the source of
funding; the economic classification of events and geographical location
depending to nature of activities and size of the company.
(d) Most large organizations use a hierarchical chart of accounts. This allows
financial reports to be prepared for specific segments of the organization
according to the varied needs of a wide audience of financial statement
users. Such structures might appear as follows;
‐ The Organisation structure: Is based on administrative

responsibility, with the overall responsibility and accountability for
the inflows and outflows of financial and other resources, and also
provides for the lower delegated levels of responsibility and
accountability to identify subsidiaries; departments and cost
centers within this segment.
63

‐ The funding classification: This segment defines the source and
type of funding. The segment helps track revenues and
expenditures per source and type of funding. In broad terms, there
shall be three sources of funding – Own revenue, Grants and
Loans. Within these broad categories, the particular funding
sources, organisations and institutions, including donors and
lenders, shall be identified under the name of funder code. The
segment applies to both revenues (inflows) and expenditures
(outflows).
‐ Programmatic/ functional classification: Depending to the size
of the company and nature of activities undertaken by the
company, this segment defines the purpose of the transactions
through programmatic classification and reflect goals and
objectives being undertaken by the company;
‐ Economic classification: This segment defines the natural
accounting nature of the transaction, vis-à-vis, revenue, expense,
asset, liability and equity. The classification includes the five (5)
classes accordingly. The categorisation for economic item under
the chart of accounts is classified as follows:
Class>>Chapter>>Sub-Chapter>>account>>Sub account.
The following coding may be applied as a bare minimum:
• 100000 series- Incomes
• 200000 series- Expenses
• 300000 series- Assets
• 400000 series- Liabilities
-• 500000 series- Equity
‐ Location segment: a company operating in different territories

or regions might include a digit in its account numbers to identify
the territory or region to which a particular account relates.
Its extent may depend on the requirements of management and the nature
of the company's operations.
(2) Computerization of Accounting Systems
Every company shall install a computerized accounting system which will

include software programs (functions may include sales, purchases,
64

receivables, payables, cash receipts and disbursements, and payroll
among others). The purpose of the software program is the generation
of financial statements in an accurate and timely manner.
(3) The computerized accounting systems shall have an entry-level

software to provide easy access to data and report generation and
preparation. The software shall be used to provide an audit trail of the
transactions processed. Companies are encouraged to advance to
enterprise resource planning systems.
(4) The internal audit function shall be an independent and objective

assurance and consulting activity designed to improve the operations
of the company. The internal audit activity will contribute to the
achievement of the GCC objectives by offering a systematic and
disciplined approach evaluation and improvement of the effectiveness
of risk management, control, and governance processes. Consistent
with its mission, the Internal Audit Department shall provide
management with information, appraisals, recommendations, and
counsel regarding the activities examined and other significant issues
(see Appendix 8).
8.7 Key Controls

(1) Each Government controlled company shall establish a framework for
internal controls covering both the financial and non-financial aspects
of the business. The financial control system shall include the following:
(a) A comprehensive system of planning and budgeting as well as

monitoring and reporting of the GCC’s performance to the Board of
Directors.
(b) Approval of the Chart of Accounts by the Board of Directors upon

recommendation by the Head of Finance.
(c) Appropriate monthly reporting tools to provide a concise summary

of assets, liabilities, equity, incomes, and expenses.
(d) Systems audits and reporting to the Audit Committee.
(e) Monthly analyses explaining movements in account balances on a

month-on-month basis as well as year-to-date compared to prior
year performance. Variances of 10 per cent shall be supported by
explanatory comments.
65

(f) A full appraisal of all major investment projects including key
controls over major business risks and reviews against performance
indicators and exception reporting.
(g) Monthly reporting of treasury activities and risks for review by

senior executives and annual reports covering treasury operations,
tax compliance, pensions and insurance for review by the Board or
the Audit Committee.
(2) The non-financial controls reported to the Board of Directors shall

include:
(a) Key performance indicators used by management to monitor

customer service levels in each business as well as independent
customer satisfaction surveys.
(b) Independent employee relations surveys as well as corporate

responsibility programme reports in relation to the impact of the
company’s activities on the environment, workplace, marketplace,
and community.
(c) Assessment of key risks to the operational and financial controls

and the mitigating actions used in addressing them.
(3) Documents to be system generated e.g. purchase orders and credit

notes.
PART NINE: FILE RETENTION AND RECORD

MANAGEMENT
9.1 Introduction
This section presents policy on retention of financial records and is meant
to ensure the proper creation, maintenance, use and disposal of
records to achieve efficient, transparent, and accountable
governance.
66

To provide effective, efficient, and economical custody and control of the
company’s accounting records whilst assuring integrity and
availability at all times.

The company shall manage its records efficiently to support its core
functions and achieve effective overall management in addition to
ensuring compliance with its legal and regulatory obligations. The
company shall, in accordance with operational needs and
Government regulations regarding the management of records, use
established guidelines and procedures to maintain, protect, retain,
make reference to, and dispose of accounting records.
9.4 Key Documents

(1) Documents register
(2) Filing plan
(3) Document retention and disposal programme
(4) Annual Report and Financial statements

(1) The Head of Finance shall perform an oversight role in the function of
record keeping in the Finance Department.
(2) The Filing Assistant shall be responsible for ensuring that all documents
are appropriately filed. This role can be performed by an Accounts
Assistant.
(3) The National Archivist shall approve the disposal of documents and
records.

The finance filing system shall apply the following folder identification
categories:
(1) Book keeping- The book keeping folder shall contain subfolders for
assets, liabilities, equity, incomes, and expenses.
67

(2) Reports- The reports folder shall contain monthly reports generated
covering the financial statements as well as budgets.
(3) General- The general folder shall hold correspondences, contracts, and
any other key documents not directly linked to the account balances.
(4) Figure 1 below shows an example of how to file documents either

digitally or manually.
Figure 1: Model for Filing Documents
The filing of finance records shall take into account the needs of the document
users and hence will be undertaken as per the financial statements. Sub-
folders can be included in each of the main folders.
9.7 Key Controls - Management Records

(1) A well-organized filing plan based on different sub-functions within
finance (e.g., assets, liabilities, equity, income, expenses, and reporting).
(2) All records shall be referenced for ease of access. As shown above,
reference numbers can be included for each category of documents.
68

(3) Only authorized persons shall have access to the files. Sensitive
information could include payroll information, which shall be password-
protected at all times when held in digital folders.
(4) All entries in the financial records of a company shall be supported by

duly authorized original documentation. The digital filing system shall
mirror the Framework hard copy filing system which holds the original
documents.
(5) Staff shall be discouraged from using copies as source documents.

Should the original documentation be unavailable at the time of data
capturing, a scan or photocopy may be used, but shall be clearly marked
as a duplicate awaiting the original. Such a document shall be kept
separately until such time that the original becomes available.
(6) The original document shall be compared to the scan/photocopy, with

the original replacing the scan or copy once the member of staff checking
the details is satisfied that the original document agrees with the one
previously used as an input document. The original document shall be
filed. This requirement will not, however, apply to copies of invoices
forwarded to the Finance Department.
(7) The management of the company’s finance records shall be a shared

responsibility involving the finance department, the Heads of relevant
departments, and the record users. All record users shall be obligated
to handle the company’s records in accordance with its policy on records
management.
(8) No changes to the retention periods set out in this document may be
made without prior written authorization from the National Archivist.
9.8 Key Controls - Retention

(1) All financial records and information shall be retained in conformity with
the regulations taking into account the National Archives and Records
Service.
(2) The document retention period commences on the date of the last entry
in a particular record.
(3) The recommended guidelines for the retention of documentation and

records shall be followed.
69

(4) Examples of hard copy documents shall be retained in conformity with
local regulations shall be as follows:
(a) Minutes including resolutions passed (permanent)
(b) Minute books (permanent)
(c) Annual reports and Financial Statements (10 years)
(d) Books of account -10 years
(e) Policy on Retention of Financial Records (Permanent)
(f) Supporting schedules to books of account and ancillary books of

account - 10 years
(g) Fixed asset registers - 10 years
(h) Internal audit reports - 10 years
(i) System appraisals - 10 years
(j) Years’ staff personnel records (after employment ceased)-

Permanent
(k) Salary and wage registers -10 years
(l) Paid cheques and bills of exchange- 10 Years
(m) Invoices – sales and purchases - 10 years
(n) Bank statements and vouchers year-end working papers – 10

years
(o) Tax records - 10 years
(p) Other vouchers and general correspondence - 10 years
(5) Where financial information is required as evidence in proceedings

before a court of law, Parliament, an official inquiry or otherwise, or for
purposes of an audit, such information shall be secured in its current
form until it is no longer required, even if the National Archivist will have
authorized its disposal.
(6) If no provision is made in local regulation for specific instances, the

following guidelines shall be adhered to:
(a) All documents and records shall be kept for a minimum period of
seven years.
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(b) Any agreements or contracts exceeding the minimum period shall
be kept for a period of seven years after the expiry date stated on the
agreement or contract.
9.9 Key Controls -Filing

a. A proper filing system, in accordance with the company’s policy on
records management, shall be maintained at all times in such manner
that a sufficient audit trail is always in existence.
b. Documents shall be filed in a logical manner and as prescribed in this

Framework and shall be uniquely referenced to facilitate enquiries from
the general ledger to the source documents.
(2) All documents stated above shall be stored in a safe place where proper
caution has been taken to prevent loss due to natural disasters.
(3) Documents for the current year as well as the year immediately
preceding the current year shall be kept in a secure filing room on the
premises of the company.
(4) Documents for years prior to the previous year shall preferably be stored
off-site in archives and proper care shall be taken in storing the
documents in such manner that they are easily accessible in case the
information is required.
(5) All confidential documents and contracts, as well as documents not in

use (such as unused cheque books) shall be kept separately and will be
locked away in a safe or secure location. Confidential documents,
amongst others, shall include:
(a) Corporate strategies
(b) Business development strategies
(c) New product development strategy
(d) Contracts
(e) Records of disciplinary action
(f) Salary, bonus and appraisal records
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(6) Each Government controlled company shall devise Disaster Recovery
Plans that are sufficient and appropriate to enable the recovery of
records and information, in the event of occurrences that may lead to
loss of information. The GCC may outsource Back up and Discovery of
file retention.
PART TEN: MANAGEMENT OF REVENUE
10.1 Introduction
The management of revenue is a business process designed to optimize the revenue
performance of the company through all market conditions.

To ensure adherence to International Financial Reporting Standards and other
regulatory requirements in relation to the recognition, measurement,
disclosure, and overall management of revenue.

(1) The company shall ensure that revenue is recognized on the basis of
accrual, which means at the time when it is earned and not necessarily
when payment is received. Any revenues from contracts with customers
shall be recognized as prescribed by the new revenue standard (IFRS
15 Revenue from Contracts with Customers). Revenue is generally
earned when goods are sold or services rendered. Revenue is considered
as having been earned when the four criteria below are met:
(a) Persuasive evidence of an arrangement (i.e., existence of sufficient

documentation).
(b) Goods have been delivered or services rendered.
(c) The seller's price to the buyer is fixed or determinable (i.e., the
price is not conditional upon a future event).
(d) Collectability is reasonably assured (i.e., the customer is expected

to pay for the goods or services).
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(2) In relation to revenue arising from contracts with customers, the
following five steps shall be undertaken to ensure accurate recognition
and measurement:
(a) Identification of the contract(s) and contract period with the

customer.
(b) Identification of the performance obligations in the contract.
(c) Determination of the transaction price, including any variable

considerations.
(d) Allocation of the transaction price to performance obligations in

the contract.
(e) Recognition of revenue when (or as) the entity satisfies the
performance obligations identified.
(3) The company shall put in place efficient and cost-effective revenue
management systems to avoid any risks of fraud due to
misappropriation of assets or fraudulent revenue recognition.
10.4 Key Documents

(1) Quotations/price lists – These shall be used to guide billing. Quotations
shall be approved every year and updated in the system to ensure
accurate billing.
(2) Invoices - The generation of an invoice shall be in line with a purchase

order and will be linked to the quotation/price list.
(3) Credit notes - These shall be linked to the invoices they are reversing
and will be approved within the company’s Delegation of Authority
Matrix.
(4) Other advice for incoming revenues (e.g., warrants, dividend receipts,
Treasury Bills certificates, receipts, and letters forwarding revenues).
(5) Contracts with the major customers with details of the billing cycle and
billing mechanisms.
(6) IFRS.

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(1) The HOC and Head of Finance shall be responsible for contract
negotiation and the resulting the contracts cleared by Legal Counsel
before execution.
(2) The Head of Finance shall ensure the issuance of complete and
accurate billings and the recording of revenue. The Head of Finance
shall also ensure the timely collection of revenue.

(1) The following shall constitute revenue:
(a) Sale of products and services (contract revenue);
(b) Grants from the Central Government budget allocations/releases;
(c) Contributions by Rwandans and friends of Rwanda;
(d) Investment income from Government securities such as Treasury

bills and bonds;
(e) Investment income from fixed deposits held by commercial banks;
(f) Dividends from equity investments; and
(g) Income from offshore investments.
(2) The recognition of revenue shall also entail incorporating an item,

which meets the definition of revenue in the income statement as long
as the following criteria are met:
(a) It is probable that any future economic benefit associated with the
said revenue item will flow to the entity.
(b) The amount of revenue associated with the item can be measured
reliably.
(c) The revenue arising from contracts with customers is recognizable

in line with the requirements of IFRS 15.
(3) On the other hand, IAS 18 also offers guidelines for recognition and
measurement of revenue. In a given period, revenue is the gross inflow
of economic benefits arising from the course of conducting the ordinary
activities of an entity for as long as those inflows result in increases in
equity. Increases relating to contributions from equity participants do
not qualify to be classified as revenue. Under the current IAS 18,
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revenue from the sale of goods will be recognized when all the criteria
below have been satisfied:
(a) The seller has transferred to the buyer the significant risks and
rewards of ownership.
(b) The seller has relinquished either managerial involvement to the

degree usually associated with ownership or effective control over
the goods sold.
(c) The amount of revenue can be measured reliably.
(d) It is probable that the economic benefits associated with the

transaction will flow to the seller.
(e) The costs incurred or to be incurred in respect of the transaction

can be measured reliably.
(4) Under the current IAS 18, the revenue derived from the provision of
services shall be recognized by making reference to the stage of
completion of the contract at the balance sheet date provided that all of
the following criteria shall be met:
(a) The amount of revenue will be measured reliably.
(b) It is probable that the economic benefits will flow to the seller.
(c) The stage of completion at the balance sheet date shall be

measured reliably.
(d) The costs already incurred or those to be incurred in respect of the

transaction can be measured reliably.
(5) When the above criteria are not met, revenue arising from the provision
of services shall be recognised only to the extent that the expenses
recognised in the process are recoverable (a cost recovery approach).
(6) Provided that it is possible that the economic benefits will flow to the
company and the amount of revenue can be measured reliably, revenue
from interests, royalties, and dividends shall be recognised as follows:
(a) Interest - Use the effective interest method (IAS 39);
(b) Royalties - On accrual basis in accordance with the substance of

the relevant agreement;
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(c) Dividends - When the rights of the shareholders to receive the
payment are established.
(7) Government controlled companies which are heavily dependent on a

fee-based revenue structure and central Government grant revenue
shall comply with the requirements of IAS 20.
10.7 Cash Collections from Revenue Transactions

a. The procedure for processing cash receipts shall include internal
controls to ensure that receipts are safeguarded and properly deposited
and recorded in the company’s Accounting Management System and
will entail the following:
(a) All cheques and money orders shall be restrictively endorsed

immediately after receipt, or as soon as possible thereafter, unless
they are made out to third parties.
(b) All cash receipts shall be logged in or interfaced with the company’s
central receipt log (CRL).
(c) Physical safeguards shall exist for all cash receipts, which shall be
stored in a secure location (either inside a safe or a locked file
drawer) when not being actively processed.
(d) Cash receipts shall be transmitted to the Department of Revenue

or Cash Management Office or deposited to a bank account at a
local bank within 24 hours of receipt.
(2) The segregation of duties shall be implemented in the processing of

cash receipts. To the extent possible, the distinct functions of logging,
depositing, and reconciling shall be assigned to different individuals. In
the case of understaffing, which may make it difficult to segregate the
aforementioned functions, the company shall develop and document
mother procedures and safeguards to ensure adequate control of cash
receipts.
(3) All deposits shall be verified by reconciling the bank-validated deposit

slips or bank email verification to the CRL or other applicable company
system to ensure the appropriate dispositions of all cash receipts.
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10.8 Electronic Receipts
Electronic receipts refer to money received via debit/credit cards, e-cheques, and
electronic funds transfers (EFTs) from any source. The following control
procedures shall apply when handling electronic receipts:
(1) The company shall issue selected staff with security rights to view the
amounts posted (via EFT) to the bank accounts.
(2) The company shall receive notifications for each cash receipt by the
bank. These notifications shall be forwarded to the Cash Office
immediately for receipting.
(3) GCCs shall work with vendors of electronic money to obtain daily
reports of cash collections which shall be reconciled with the cash
deposited in the bank. Performing bank reconciliations on a daily basis
will ensure the accurate identification of cash deposited in the bank
account.
10.9 Accounts Receivable and Accrued Revenues

(1) The company shall make accurate computations of revenues owed to it
and issue invoices in a timely manner.
(2) The company shall ensure timely collection of all revenue owed to it.
Invoiced amounts that do not meet the definition of a receivable (e.g.,
renewal notices for licence/permits and other fees that cannot be
recognised as revenue until they are received) shall be tracked in the
comparable tracking system.
(3) Accounts receivable procedures shall include internal controls to

ensure timely and accurate recording, ageing, and collection of
receivables preferably within 30 days or according to the agreed credit
period.
(4) Accounts receivables shall be recorded and invoices generated as soon

as possible after the provision of the product or service.
(5) To the extent possible, the functions of billing, collection and posting of
payment and approval of write-offs shall be segregated with only one of
these functions being assigned to one individual.
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(6) The company shall undertake monthly reconciliation of the detailed
transaction information where receivables are tracked in the company’s
accounting management system on a summary basis.
(7) Procedures for collection and posting of payments against accounts

receivables shall incorporate the controls for cash receipts.
(8) Accounts receivable that are over 180 days old shall be reviewed prior
to the fiscal year-end for possible write-off. A receivable shall
automatically be considered uncollectible if one or more of the following
conditions apply:
(a) The receivable has been discharged in a bankruptcy.
(b) The debtor has died without sufficient assets to pay the company.
(c) The debtor is a corporation that has been dissolved and has no
assets to pay the company.
(9) In the event that the criteria above do not apply, a receivable shall be
considered uncollectible and will be written off when the following
conditions are met as established by the company’s Head of Finance
and Accounting:
(a) The receivable is determined to be uncollectible;
(b) The amount of the bad debt is known or can be reasonably

estimated;
(c) The cost of future collection efforts would exceed the receivable
amount.
10.10 Key controls

(1) Monthly review of management accounts by management and
explaining revenue variances exceeding plus or minus 10 percent of
budget against actual for the previous period.
(2) Automated delegation of authority for approval of transactions in the

accounting system as well as sub-systems including discounts and
invoicing.
(3) Ensuring that for contract revenues, discounts can only be offered in
line with delegation of authority embedded in the system.
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(4) Bank reconciliations for cash received.
(5) Ageing of bad debts and provisions for doubtful debts beyond 120
days.
(6) Approval of bad debt write-offs and provisions shall be in line with the
delegation of authority matrix.
PART ELEVEN: CREDIT POLICIES AND

PROCEDURES
11.1 Introduction
The Credit Policy Procedure outlines the activities and responsibilities which are
applicable in obtaining credit approval for a potential customer before
processing sales orders.

The credit policy shall be consistent with the overall company policy and objectives
including:
(1) To promote sales.
(2) To establish credit limits within the risk tolerance thresholds of the
GCCs.
(3) To extend credit to creditworthy parties.
(4) To ensure no credit is extended outside the approved credit policy.
(5) To ensure that credit amounts are recovered within specified time
limits.

The company shall establish a credit policy as a framework for making consistent
and well-informed credit and collection decisions that are compatible with the
company's strategic objectives under the credit function.
11.4 Key Documents

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a. Invoices as the origination documents for all credit sales.
b. Credit notes for use in adjusting sales by either returns or errors in

invoicing.
(2) Delivery notes for use as evidence of sales delivered and the
enhancement of dispute resolution in case of issues related to quality
of goods delivered or services delivered.
(3) Cash receipts used to document amounts received from customers

where partial payment is made.
(4) Contracts which will be legally enforceable and binding hence useful in
supporting debtor balances.
(5) Local purchase orders which will be used alongside the invoices and
delivery notes as a three-way match to ensure accuracy of billings.
(6) Letters of guarantee, promissory notes, and bank guarantees used as

a control in ensuring the mitigation of credit risk.
(7) Credit application forms in assessing the credit worthiness of

customers prior to extending credit.

(1) Head of Finance has an overall oversight role over amounts due from
customers. The Head of Finance shall review, on a monthly basis, the
debtors ageing report and shall be a member of the credit committee.
(2) Head of Marketing shall carry the responsibility of ensuring that sales
are made within established credit limits.
(3) Credit Controller shall be in charge of setting credit limits together with
the Head of Marketing and the Head of Finance.
(4) Credit Manager shall be in charge of collections and will support the
Credit Controller in executing credit functions.
(5) Accountant (receivables) will ensure all collections, provisions, and

write-offs are properly accounted for.

(1) Credit approval and debt write-off
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There shall be a Credit Control (CC) department headed by the Credit
Controller who shall be responsible for maintaining a high quality of
accounts receivables while ensuring that sales are made to customers
that represent prudent credit risks. The Credit Controller will provide
flexible mechanisms to protect the company’s substantial receivable
investment. It shall be the responsibility of the Credit Controller to
ensure that no unwarranted risk is taken by the Marketing Manager
and that the outstanding payments are received within agreed credit
terms.
(2) The specific roles of the Credit Controller shall include:
(a) Being a facilitator in the implementation of credit policy and

providing guidelines to the Marketing Department.
(b) Being the custodian of the credit policy and issuing and
documenting any subsequent procedural amendments in a
properly indexed form.
(c) Circulating monthly consolidated receivable position in respect of

each unit to the Head of Finance and the respective Business Units
Heads.
(d) Monitoring problematic receivables and circulating their overdue

status on daily/weekly basis to the Marketing Department.
(e) Supplementing the marketing departments in determining and

evaluating the creditworthiness of customers on the basis of duly
filled Customer Credit Approval Form (CCAF) - Appendix 6.
(f) Monitoring the credit limits of the customers based on price

escalations and actual credit utilization and giving feedback on the
proposed changes to management.
(3) The specific roles of the Marketing Department shall include the
following:
(a) Initiate credit request through duly filled Customer Credit

Approval Form (CCAF).
(b) Ensure completeness of documentation and compliance with

specified criteria while forwarding credit extension/enhancement
form.
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(c) Ensure recovery of the receivables by the due date.
(d) Review customer account statements on a regular basis for timely

reconciliation of accounts.
(4) Customers shall qualify for credit extension by showing the following
documentary requirements as proof of compliance with the eligibility
criteria:
(a) An Application for credit (credit request);
(b) Copy of agreement between the customer and company;
(c) Undertaking from the customer;
(d) Copy of TIN Certificate;
(e) Copy of VAT tax registration certificate;
(f) Bank statement for the last six months with positive bank balance
(in case group of companies, a review of the overall group credit
exposure and availability of sufficient funds will also be
considered);
(g) One recent passport size photograph; and,
(h) Audited financial statements for the past three years for due
diligence.
(5) Duly approved CCAF along with all the requisite documents as
mentioned in the eligibility criteria shall be forwarded to the Credit
Control Department by the Head of Marketing.
(6) The Credit Controller will verify the documents and the approving
authority. In case of any objection to the applications, the Credit
Controller shall communicate to the Head of Marketing about the
deficiencies contained in the documents and any requirements not
complied with and the request may be put on hold.
(7) The Credit Controller shall upload the credit limits in the system up to
a maximum of 1.2 times of normal upliftment. Normal upliftment shall
be determined on the basis of the last three months average upliftment
unless further limit is approved.
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11.7 Procedure for Handling Defaulters
The following conditions shall apply for secured customers who default on
making credit payments:
(1) The system shall be configured to automatically block invoicing until

the recovery of the defaulted amount by the respective manager. Late
payment charges/financial charges shall be applied as per the debit
notes raised by the Credit Controller, calculated at the contractual rate,
from the due date to the date of recovery.
(2) The Marketing Manager shall issue the first reminder to the customer
within 7 days of the payment due date.
(3) If payment is not made within 7 days from the date of the first reminder,
then following procedure shall be followed:
(a) The Credit Controller shall receive feedback about the recovery
efforts commencing on the credit due date to expiry of seven days
from the date of the reminder.
(b) The Credit Control Department shall seek consent for encashment
of security from the higher management.
(c) Security shall be encased in consultation with the legal/ treasury

department under intimation to all parties concerned as above.
(4) In the case of unsecured customers, if the customer defaults in making

payments, then after the expiry of the notice period and feedback from
the Account Manager on recovery efforts, legal action is initiated on the
basis of approval from higher management. Supplies to defaulting
customers shall be blocked by the Credit Control department. Credit
supplies will be restored only against a Bank Guarantee or Letter of
Credit.
11.8 Procedure for restoration of credit facility to

defaulting customers
The Credit Manager will raise a request for restoration of the credit facility of a
customer to the Head of Marketing along with the following:
(1) Genuine reasons by the customer for not making payments by the due
date;
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(2) Justification for restoration of the credit facility in the form of analysis
for potential sales volume, past payment history, and current financial
position.
(3) Undertaking by the defaulting customers that they will pay and not
default in subsequent credit facilities.
(4) Approval by management.
(5) The list of defaults will be maintained on a financial year basis.
11.9 Procedure for enhancement of credit limits

(1) The Marketing Manager may request for the enhancement of credit
limits after three months from the last enhancement/approval date.
The following procedure shall be used to process the request by the
Credit Control Department:
(a) The Marketing Manager shall raise a request for enhancement of

credit accompanied by a report of the sales volumes for the last
three months and expected sales volumes.
(b) The Credit Controller shall verify the sales volume, any overdue
amounts, and approvals by the relevant authorities and
accordingly update credit limits up to a maximum of 1.2 times
above the existing limits.
(c) Verification and credit limit extension done by the Credit

Controller.
(2) Credit limits for previously defaulting customers may be enhanced on

the basis of an undertaking from them and a clean credit history of
three months.
(3) Credit limits for customers who have defaulted in the past may not be
enhanced unless they submit an undertaking, on the company’s Letter
Head, of no future defaults. In addition, such customers shall be
required to maintain a clean credit history for at least three months
before their requests are approved.
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11.10 Procedure for Provisions for Doubtful Debts
(1) Provision for irrecoverable or doubtful debts shall cover accounts that
are in arrears for 120 days or more.
(2) The provision for doubtful debt in the general ledger account shall be
adjusted with the provision amount at year-end and supported with
sufficient documentation for audit purposes. Where other indicators or
causes of impairment arise (e.g. bankruptcy of a customer), specific
provisions must be assessed and proposed by the Marketing
Department for review and approval by the Credit Controller and the
Head of Finance.
11.11 Writing off bad debts

(1) A submission prepared by Head of Finance shall be made to the Board
of Directors through the Audit Committee requesting for debt write-off.
The Board may give the mandate of approving debt write-off to the HOC
or Head of Finance for amounts not exceeding RwF 100,000.
(2) A request for debt write-off shall contain the following information:
(a) Customer name, address, amount, and other relevant particulars

of the debt;
(b) The nature of the debt and the date incurred;
(c) An outline of the measures taken to collect the debt;
(d) Reason(s) why the debt is deemed to be irrecoverable or bad;
(e) A recommendation for the debt be written off; and
(f) The vote or account classification against which the write-off shall
be charged.
(3) All written off debts shall be disclosed in the company’s annual
financial statements.
(4) Table 3 shows the suggested approval limits that shall be followed in
writing off debts:
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Table 3:Bad Debt Write off Threshold
Bad Debt Write off Threshold Approval by

(RwF)
1-10,000 Head of Finance
10,001- 100,000 Head of

Organisation
>100,000 Board of Directors
11.12 Key Controls

(1) The main control process shall be an approval process and segregation
of duties between the Credit Controller and the Marketing Manager.
(2) Automated reminders for debt collections via email, text messaging,
letters, etc.
(3) Referral of long outstanding debts to debt collectors.
(4) Ageing of bad debts and provisions for doubtful debts exceeding 120
days.
(5) Delegation of authority to ensure that provisions and write-offs are

appropriately approved in the system.
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PART TWELVE: EXPENDITURE MANAGEMENT
12.1 Introduction
The expenditure management system is a framework that is intended to
support Government controlled companies in the identification and
implementation of their business priorities and spending plans within the fiscal
limits established by the budget.

The underlying objectives of the expenditure management system include:
(1) Control of the overall growth in spending;
(2) Effective allocation of company resources to areas of highest relevance,

performance, and priority;
(3) Efficient and effective budget implementation.

The company shall ensure that only allowable expenses, which are deemed as
reasonable, necessary, and appropriate are incurred for the purpose of
conducting valid business to fulfil the objectives of the company.
12.4 Key Documents

(1) A strategic plan to help the Government controlled company to focus
on its vision. The strategic plans of GCCs shall be supported by annual
budgets for the purpose of linking expenditures to the strategic goals of
the GCC.
(2) Approved budgets at departmental and Company levels to ensure the

management of line-by-line expenses as per the set objectives.
(3) Payment vouchers as control documents in ascertaining that all

incurred expenses have been approved.
(4) Cheques/on-line approvals which must be signed by at least two

signatories.
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(1) The Board of Directors shall set the direction of the company and
approve the strategic plan.
(2) The HOC shall identify various strategic options and recommend
these to the Board for approval. They shall ensure the execution of
the strategic plan after approval.
(3) The Head of Finance shall be the custodian of the budget and person
in charge of budget monitoring activities.
(4) Departmental Heads shall oversee the departmental budgets in terms

of approving all expenses and ensuring that they are within the
budget.
(5) Head of Procurement shall prepare the Purchase Order/ Service Order
(6) Head of department (where services or goods will be consumed) and

Head of Finance shall approve the purchase order or Service Order

(1) All expenditure and investment of company funds must be properly
authorized by the line Managers and shall be accompanied by
supporting documentation (e.g. itemized receipt or invoice) for all items
of expenditure.
(2) Instruments of payment (such as cheque book) shall be kept in safe

custody, with access being limited to nominated persons only (Finance
Officer or Office Manager).
(3) The preparation of documentation for authorization by appropriate

signatories shall be undertaken by the Head of Finance. All cheques
must be signed by a minimum of two authorized signatories.
(4) The custodian shall not be a signatory.
(5) Payments by Cheque.
(6) The basic controls listed below (although not exhaustive) are
recommended in order to prevent any misuse of company funds. If any
particular control is delegated to employees, the Board of directors shall
still have the overall responsibility. The organization's bank mandate
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shall specify the identity of the authorized signatories. GCCs shall have
a "pool" of at least three (3) individuals authorized to sign cheques so
as to avoid the inconveniences that are likely to arise due to
unavailability of some signatories when needed (e.g. during popular
holiday periods).
(7) The recommended controls for making payments by cheque include:
(a) Cheque(s) made out to a nominated signatory will not be signed by

that person.
(b) No cheque(s) shall be signed without a corresponding supporting

document(s) attached to the cheque requisition form.
(c) All supporting documents detailing the nature of the expenditure

and beneficiary shall be approved for payment by the line manager.
(d) The custodian of Cheques shall not be a signatory
(e) No blank cheques shall be signed in advance.
(f) All cheque expenditure must be recorded in the cash book or

appropriate computerized accounting system.
(g) The cash book or computerized accounting system shall record

details of the cheque payment (i.e. cheque number, payee, amount,
date and a brief reference of the nature of the expenditure).
(h) All cheque counterfoils shall be completed at the time of cheque

preparation and retained (they form part of the accounting
records).
(i) Unused cheque book(s) must be secured.
(8) Payment of Petty Cash
(a) Every effort shall be made to reduce the need for cash payments to
an absolute minimum.
(b) All cash payments shall be made from a Petty Cash Float of a fixed
amount, which shall be reimbursed regularly from the bank
account rather than the retention of physical cash receipts.
(c) All reimbursements of the Petty Cash Float shall be backed by

supporting documents.
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(d) The supporting documents shall be authorized by someone other
than the officer responsible for maintaining the Petty Cash Float.
(e) Regular spot checks of the petty cash float shall be made by an
authorized person independent of the officer responsible for
keeping the petty cash. This will involve counting the physical cash
in hand and reconciling this to the balance of the cash float and
vouchers paid out.
(f) Petty cash withdrawals shall be undertaken by means of the

company cheque.
(g) The organization shall operate an imprest system. Petty cash

claims shall be limited to an amount approved by the Head of
Finance. All petty cash claims shall be signed by the beneficiaries.
(h) All claims shall be supported by receipts. Where receipts are

unobtainable, the claim shall be verified by the appropriate Line
Manager.
(i) The petty cash till shall always be secured.
12.7 Key Controls

(1) Purchases shall be in line with procurement standard operating
procedures.
(2) Invoices received shall be checked against orders made and Goods
Received Notes where applicable in a three-way match.
(3) The quality and quantity of goods supplied shall be inspected to verify
that they correspond with the orders placed and invoiced for. Services
provided will be similarly checked.
(4) Payment for all goods and services shall be made only against original
invoices (or other electronic documents).
(5) Creditors’ reconciliations and creditors aging shall be performed and

reviewed on a monthly basis.
(6) System controls shall be put in place to keep the expenditure within
the authorised budget.
(7) Relevant approvals shall be obtained for expenditures above the

budget limit.
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(8) Segregation of duties shall be implemented for initiator and authoriser
through appropriate system delegation.
(9) Framework review of expense vouchers and supporting documents

shall be undertaken.
(10) Automated controls shall be put in place to ensure a single payment

for each invoice.
(11) Monthly expenditure reviews shall be undertaken to guard against the

possibility of duplicate payments.
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PART THIRTEEN: PAYROLL MANAGEMENT
13.1 Introduction
Payroll refers to the process as well as systems put in place to facilitate the payment
of wages and salaries to employees. The company shall cause the payroll
management in the finance department.

To ensure the correct payment of salaries for time/overtime worked; accurate
implementation of statutory and other salary deductions; accurate charges of
labour costs to the appropriate cost centres; and internal control over labour
costs by division of duties and reconciliation.

The company shall put in place controls for all transactions on the payroll and for
any movements that are likely to have an impact on payroll data. It shall be the
company’s policy to pay appropriate remuneration for time worked and to
comply with all requirements relating to statutory salary deductions and
administrative issues.
13.4 Key Documents

(1) Copy of National ID
(2) Rwanda Social Security Board Number
(3) Bank details
(4) Employment contracts
(5) Promotion letters
(6) Termination letters/resignation letters
13.5 Key Roles and Responsibility

(1) The Head of Human Resources shall approve all payroll instructions.
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(2) The Head of Finance shall ensure that monies are correctly computed
and submitted for payment as per the approved payroll.

(1) New employees
The Human Resources Department shall send the details of new

employees (i.e., letter of appointment, personal details, rate of pay,
standard working hours, pension information and benefits, etc.) to the
Head of Finance. All appointments shall be authorized by the Head of
Human Resources designate. Only payroll staff will have access to the
payroll system. The company shall delegate authority based on staff
level.
(2) Changes to payroll
Employees shall notify the Human Resources Department of any

changes in their pay point details or other personal details using the
relevant form (Appendix 7). During each pay period, departmental
managers shall communicate any variable compensation amounts to
the Human Resources Department (such as overtime, commission, or
regular bonus payments) as required using a standard form. The HR
manager shall provide details of annual changes to the employees’ pay
and benefits, including annual bonus awards, to the payroll accountant
for processing.
(3) Departing employees
The payroll accountant shall keep a record of every employee showing

both the start and end date of the contract.
When employees leave the company, the Human Resources Department

shall communicate the departure to the payroll accountant who shall
remove them from the payroll system.
The payroll accountant shall review employee records every month and
make the necessary changes as per the information obtained from the
Human Resources Department.
(4) Monthly pay run
(a) The payroll accountant shall update the general ledger and will
generate:
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(i) Batch of salary expenses;
(ii) Debtors’ batch for deductions of loans and advances;
(iii) Employee portion of statutory deductions such as PAYE,

RSSB and other miscellaneous deductions;
(iv) Employer portion of deductions such as RSSB;
(v) Net salary payable;
(b) The payroll accountant shall then run the payroll to give payslips
and a summary of bank points. The summary will be passed on to
the accounts payable team after the Human Resources
Department has approved the same.
(c) The Human Resources department shall perform a payroll head-

count reconciliation and a reconciliation of earnings as follows:
(i) Total number of employees per previous month's final payroll

report + All new engagements during the current month - All
terminations during the current month + or - adjustments
(staff going on/returning from maternity leave, etc.)
(ii) Total number of employees per the current Dummy Payroll

report.
(iii) Total basic earnings per previous month's final payroll report
shall be reconciled against the dummy payroll report by the
payroll accountant.
13.7 Key Controls

(1) Payroll process to be initiated and approved in the system.
(2) Automation of calculations for statutory deductions.
(3) Monthly payroll variance reporting to explain month-on-month

differences in payroll costs.
(4) Payroll reconciliation of costs in the payroll system to the costs in the
accounting system.
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PART FOURTEEN: ACCOUNTS PAYABLE
14.1 Introduction
The proper management of money owed by the company to vendors and suppliers
of goods and services purchased on credit is critical to the long-term vitality of
the company business. The company’s relationship with vendors and the
management of cash flows is a key responsibility of the finance department
towards the achievement company financial objectives.

The objective is to ensure that all payments to vendors, both internal and external,
are made in an efficient, precise, and prompt manner.

Each company shall establish a section within the Accounts Department to manage
payments in relation to vendors. It shall be the policy of the company to assess
the accounts payable and prepare payments to corporate as well as internal
customers for goods and services rendered in accordance with the internal
controls and objectives of the company.
14.4 Key documents

(1) Contracts supporting any obligations to pay.
(2) Purchase orders which shall be reconcilable to the invoices in support

of the purchase transactions undertaken.
(3) Incoming invoices which shall be reconcilable to goods received notes

as well as purchase orders in a three-way match to support the
purchase transactions.
(4) Cheques, which shall support any payments on account.
(5) Supplier statements showing any balances outstanding as well as

amounts paid on account.
(6) Delivery notes.
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(1) The Head of Procurement who shall be responsible for procurement
processes.
(2) The Head of Finance who shall be responsible for budget monitoring,
payment and reconciliation.

(1) Trade payables shall be recorded to reflect the amounts billed to a
company by suppliers for goods delivered or services consumed in the
ordinary course of business.
(2) The invoiced amounts, if paid for on credit, shall be entered in the
accounts payable module of a company's accounting software, after
which they shall appear in the accounts payable aging report until the
payments are made. Any amounts owed to suppliers and are
subsequently paid in cash shall not be considered as trade payables
since they are no longer a liability.
(3) In the accounting system, trade payables shall be recorded in a

separate accounts payable ledger with a credit to the accounts payable
account and a debit to whichever account that most closely represents
the nature of the payment (such as an expense or an asset). Trade
payables shall always be classified as current liabilities, since they are
usually payable within one year.
(4) Other types of payables, such as accrued expenses, dividends payable,

or payroll expenses, shall be recorded in other accounts for easy
identification.
(5) Creditor balance.
(6) The accounts payable normal balance will reflect an additional invoice
to the account, which will increase the credit balance, but payments
to suppliers will reduce the balance. In addition, there will be
adjustments relating to discounts taken, error corrections, and
supplier debit notes for returned goods among others. Each of these
items will affect the balance on the account. The accounts payable
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formula shall reconcile the beginning and ending balances on an
accounts payable account as follows:
Ending accounts payable = Beginning accounts payable + Credit purchases –

payments made
(7) At the end of each accounting period, the closing balance for each
supplier account shall be reconciled to the independent statement
received from the supplier. The supplier’s statement shall show the
balance outstanding from the supplier’s records. In the event that the
company’s closing balance on the supplier accounts payable record
does not agree with the supplier’s statement, then the company shall
check the purchases, payments, and adjustments to identify the
source of the discrepancy and make appropriate correcting entries
made. A supplier reconciliation statement shall be prepared before
each payment to avoid duplicating payments.
14.7 Key Controls

(1) Supplier reconciliations comparing supplier statements with creditor
balances in the accounting system and providing explanations for
variances prior to making a payment on account.
(2) Aging Analysis of payables
(3) Automated controls to mitigate double/multiple payments.
(4) Automated invoicing to avoid double or multiple invoicing.
(5) Automated local purchase orders and Service orders
(6) Monthly review of double payments reports by Finance for the

purpose of explaining all potential double payments.
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PART FIFTEEN: STAFF TRAVEL ADVANCES
15.1 Introduction
The company from time to time requires employees to travel to another town or
region for work, making it imperative for the company to facilitate such work-
related travel.

To ensure employee travel and incidental costs are fully accounted for by way of
surrender of imprest on return.

It is the intention of Government controlled companies to facilitate their employees
whenever they are sent to different regions or towns for work. The facilitation
offered by the company for staff travel shall be estimated and will be adequate
to cover reasonable expenses of the employee including fare, accommodation,
meals, and incidental expenses. Upon completion of the journey the employee
will be expected to surrender proof of expenditure and the balance of unutilized
funds.
15.4 Key documents

Travel imprest form (Appendix 8).

(1) All staff shall be responsible for accounting for all advances given.
(2) The Finance department shall be responsible for verifying expenses

accounted for to ascertain compliance with the company’s expense
policy.
(3) The Head of Finance shall resolve any issues regarding the eligibility
of expenses accounted for.
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(1) All travel advances shall be accounted for within 5 (five) working days
of the employee’s return. If the travel advance is not cleared within the
said time, the advance will be referred to Payroll to be included as a
deduction from the employee’s earnings. The appropriate payroll taxes
will then be withheld from the employee’s next pay check.
(2) The submitted claim shall include original receipts for all lodging
expenses of any amount. For any individual expenses for an amount
as approved by the Head of Finance, company employees will not be
provided with further travel advances until all prior travel advances
have been properly accounted for through the submission of a TER
and the required receipts.
(3) Travel advances will only be processed for employees and board
members to cover anticipated out-of-pocket expenses, such as meal
and incidental costs expected to be incurred while in travel status. This
would not include items such as airfare which would normally be paid
via purchase order.
(4) Expenses incurred against travel advances must be booked on a Travel

& Business Expense.
15.7 Key Controls

(1) The HOC, through a delegated system, shall approve work-related
travel by employees to different regions or towns.
(2) Approved surrender of imprest to the Head of Finance.
(3) Staff debtors reconciliation.
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PART SIXTEEN: BORROWING
16.1 Introduction
This section sets out the objectives, policies, statutory requirements, and guidelines
for borrowing funds to achieve the following: manage interest rates and liquidity
risk exposure, maintain debts within specified limits, ensure adequate
provisions for the repayment of debts, and ensure compliance with the relevant
legislation and the company policies that govern borrowing.

To establish a framework for borrowing by Government controlled companies,
which allows them to make prudent investments and hence earn higher
returns compared to the borrowing cost.

(1) The company shall borrow, with approval from the Board of Directors.
(2) The principles applicable to borrowing shall, at the very minimum, be as

follows:
(a) Approval by the Board of Directors following a recommendation from the

Finance and Planning Committee.
(b) The transactions involving borrowing of funds shall be in Rwanda Francs

and other internationally accepted currencies.
(c) Borrowing shall generally be directed to approved commercial or

development banks, with any guarantee or conditions being approved by
the Permanent Secretary MINECOFIN/Secretary to the Treasury.
(d) The funds required to meet borrowing repayments shall be accounted for
in the annual budget and commitments reported in the Company's
Financial Statement.
(e) The total borrowing portfolio should consist of a mixture of fixed and
floating interest rates where possible.
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16.4 Key Documents
(1) Project feasibility and viability reports.
(2) Approval to borrow by the Board of Directors as well as MINECOFIN.
(3) Borrowing agreements duly authorized by the company officials.
(4) Borrowing schedules summarizing all borrowing obligations and the terms
and conditions of the schedules, including all restrictive covenants and a
narration of any breaches in covenants.

(1) MINECOFIN shall provide a Letter of Comfort.
(2) The Board shall approve all borrowings.
(3) The HOC shall recommend all borrowings.
(4) Head of Finance shall be responsible for the identification of any borrowing
needs.
Figure 2: Operation Procedures
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16.7 Principles Guiding Borrowing
The following principles shall guide borrowing by an entity:
(1) Risk Management: The need to manage interest rate risk and liquidity risk
exposure while at the same time seeking to maintain borrowings within
specified limits is the foremost objective of the policy. To attain this objective,
diversification is required in such a way that the Head of Finance exercises
prudent management of interest rates and liquidity risk exposure.
(2) Cost of borrowing: Borrowing shall be structured to obtain the lowest possible
interest rate on the most advantageous terms and conditions. The decision to
borrow shall consider borrowing risk constraints, infrastructural needs, and
the limits determined by the various sources of legislation.
(3) Prudence: Care, skill, and due diligence shall be taken into account whenever
an entity is considering borrowing.
16.8 Key Controls

(1) Clearly established procedures relating to the borrowing process.
(2) Segregation of duties such that no one individual handles different roles with
regard to borrowing.
(3) Safe keeping of loan agreement forms and contracts.
(4) Clear delegation of duties relating to the borrowing process.
(5) Application of checks and balances for all transactions made by different
senior officials.
(6) Proper documentation of transactions and repayments.
(7) Reconciliations of outstanding balances to the loan schedules at contract

initiation.
(8) Confirmations of borrowing.
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PART SEVENTEEN: INVENTORY MANAGEMENT
17.1 Introduction
Inventories are items of stock used in the production of goods and services. This
policy establishes a process for recording, identifying, and maintaining
accountability in respect of all company-owned furnishings and movable
equipment.

To outline the company policy on inventory management and strengthen the
inventory system as well as provide instructions on the various inventory
procedures.

The company shall establish an inventory management system in order to
achieve its objectives.
17.4 Key Documents

(1) Supplier invoices and delivery notes
(2) Goods Received notes
(3) Store control cards and ledgers
(4) Stores requisition forms
(5) Goods Issue notes
(6) Stock take sheets

(1) The Head of Procurement shall ensure that goods are ordered as per the
requisitions.
(2) Line managers shall ensure that only the necessary stock is ordered and
used appropriately for production.
(3) The Stores Manager shall ensure that goods ordered are appropriately
received.
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(4) The Head of Finance shall ensure proper stock take and appropriate
valuation of stock balances.
(5) The HOC shall review and approve standard costs of inventories meant for
resale.

(1) Appropriate stock valuation (LIFO, FIFO, weighted, standard, etc.) shall be
used in costing inventories.
(2) Appropriate stock valuation shall be determined by the Stores Manager and
approved by the Head of Finance as well as the HOC.
(3) When appropriate stock valuation costing is used, the inventory accountant
shall update the details of the stock valuation cost for every item in the
inventory or upon the introduction of a new product.
(4) Inventory movements shall be posted automatically to the inventory system

by the sales, purchases, and manufacturing systems as products move
through the production and sales processes.
(5) Costs shall be updated on a monthly basis or as directed by the Stores

Manager.
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Figure 3:Procedure for Processing Inventory
17.7 Stocktaking Procedures

(1) Stocktaking shall be organized and conducted by the Stores Manager and
staff from the Finance Department.
(2) The annual stock take exercise shall be attended by the Company’s auditors,
who shall be invited in good time.
(3) Internal auditors shall conduct stocktaking as part of their normal audit
assignments.
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(4) On request Internal auditors shall observe periodical stock takes
(5) Written instructions on the manner of conducting the stock take shall be
issued to all personnel taking part in this activity.
(6) Adequate supervision shall be provided by a person not generally

responsible for the custody of inventory.
(7) At least one person in each of the count teams shall be independent of the
regular storekeeper.
(8) The count system procedure shall be structured in such a way as to

minimise the chance of missing items or double itemizing.
(9) Goods shall be neatly arranged in applicable categories to facilitate

counting.
(10) Measures shall be put in place to ensure adequate control of inventory

movements during the count. Any such movements shall, however, be
recorded and reconciled after the count.
(11) The stock shall be properly identified and segregated to eliminate the risk of
inaccurate description of components
(12) Staff shall sign the stock sheets they have used.
(13) The stock take procedures shall allow for proper description and separate
recording of consignment, obsolete, damaged, and defective goods.
(14) A cut-off point shall be established for receiving and dispatching stock in
addition to inter-location transfer to avoid counting stock that has been sold
or including stock that has been received but not entered in the system.
(15) All items counted shall appear on the final stock sheets.
17.8 Stock adjustment and Write-off

(1) There shall be a provision at the end of each quarter to cater for excessive
loss in the value of stock held through obsolescence, damage, expired shelf-
life, or lack of historic and future expected movement.
(2) In order to ascertain 17.8(1) a senior management team, known as the

Management Material Review committee (MMRC), shall be established to
review the obsolescence of inventory.
(a) Policies and procedures shall be established to guide the review process.
(b) There shall be ongoing scheduled review dates and the company will
consider a-mandated policy to conduct at least quarterly obsolescence
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reviews to give management an opportunity to locate items before they
become too old to be disposed of at a reasonable price.
(c) Management shall actively identify and dispose of work-in-process or

finished goods with an unacceptable quality level.
(d) Obsolete goods shall be kept away from the store so that the MRC never
has to deal with it at a later date
(3) The following factors shall be considered when the warehousing department
calculates their provisions for the year:
(a) Any stock older than 12 months (or a shorter duration depending on
perishability as may be determined by the Stores Manager);
(b) Any stock with no movement over the last 12 months period (or a shorter
duration depending on perishability as may be determined by the Stores
Manager);
(c) Any stock known to be obsolete or has an expired shelf life;
(d) Provisions will be calculated by the Head of Finance (HOF) or an

appointed designee (in which case the HOF will still have to review the
calculations) in conjunction with the Stores Manager.
(e) The accounting journals shall then be prepared and approved by the
Head of Finance or his/her delegated authority.
17.9 Stock Write-off

(1) The same calculations that are made for the provisions shall also be made
for the write-off with the same reviews made.
(2) In addition, a decision shall be made as to whether the stock item is still
usable by the department despite its lack of value. If this is the case, the item
shall be written off but still remain in stock in a separate area.
(3) This provision shall apply only if there is sufficient space in the store and the
item in question is sufficiently small to be retained in stock. The stock item
may then be then be issued out over a longer period of time or written back
into stock if a future need is identified for it.
17.10 Key Controls

(1) Regular monitoring of stock to determine the minimum and maximum stock
levels.
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(2) Bar code scanning of stocks leaving the premises to capture sales and other
stock movements.
(3) Weekly/monthly inventory system to accounting system reconciliation of

stock balances.
(4) Lower of cost and net realisable value assessments at each reporting date.
(5) Regular stocktakes to reconcile stock in the system with stock in the stores.
108

PART EIGHTEEN: ACCOUNTING FOR
DONATIONS
18.1 Introduction
A gift or donation is a voluntary transfer of money or other resource, made by a
donor with philanthropic intent, for the benefit of the company.

To ensure all donations are accounted for in line with the International
Accounting Standards.

Donations and all kinds of sponsorship must be compatible with the business
activities of the receiving company and should reflect its commitment to
operating in an ethical manner. A Government controlled company shall not
accept donations and sponsorship which present legal or financial conflict
or otherwise connect the company to any political party or group.
18.4 Key Documents

(1) Bank statements and bank reconciliation statements to verify the
completeness and accuracy of donations received.
(2) Donation letters as origination documents.
(3) Donations register outlining the various donors and their commitments to
the Government Controlled Company.
18.5 Key roles and Responsibilities

(1) The Board of Directors, who shall authorize the terms for acceptance of
donations.
(2) The HOC, who shall confirm and communicate about new and existing
donations, as well as those being anticipated. The HOC shall provide
documentation for all donations to the Head of Finance.
(3) The Head of Finance, who shall be the custodian of supporting documents
for all donations.
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(1) Donations in the form of cash or assets (e.g., property and plant and
equipment) shall be recognized as income for the period in which they are
received, or are receivable, only if the following conditions have been
satisfied:
(a) The company acquires control of the donation or the right to receive the
donation;
(b) It is probable that the economic benefits comprising the donation will
flow to the entity;
(c) The amount of the donation can be measured reliably.
(2) Donations with restrictions and/or conditions attached shall be recognized

as income only if the restrictions and conditions are within the entity’s
purview and there exists a possibility that the company is in a position to
meet these restrictions and conditions. Donations shall otherwise be
recognized as deferred income until the above criteria have been fulfilled or
the restrictions and/or conditions have expired.
(3) For services received to be recognised as donations, the services must fulfil
one or both conditions below:
(a) Create or enhance the non-financial assets of the company;
(b) Require specialized skills usually provided by individuals with

professional competency and would typically need to be purchased if not
provided by donation. Donations in this category may include
professional services by accountants, architects, doctors, engineers, and
lawyers among others.
(4) A “promise to give” shall be considered as an agreement to donate cash or

assets to the company. Such a promise shall be recognised as a donation if
there is sufficient evidence, in the form of verifiable documentation, that a
promise was made and received by the company.
(5) The accounting period shall be accounted for as deferred income and
recognized as a liability until the accounting period in which the recipient
company is allowed by the condition to expend the resource. In
circumstances where the existence of a condition prevents the recognition of
an incoming resource, a contingent asset shall be disclosed where it is
probable (but not virtually certain) that the condition will be met in the
future. IAS 37 will be applied in this instance.
110

(6) The recognition of a donation without pre-conditions shall not be deferred
even if the resources are received in advance of the performance of the activity
being funded by the donation if the company is the party in control of the
timing of the activity. In such cases, the company has entitlement to the
resource with the timing of the expenditure being at the discretion of the
charity.
18.7 Measurement at recognition

(1) Income shall be recognized at the fair value of the donations received or
receivable. Fair value shall be considered as the amount for which an asset
could be exchanged or a liability settled between knowledgeable, willing
parties in an arm’s length transaction.
(2) Donations in the form of services may be measured by referring to either the
fair value of the services received or the fair value of the asset or the asset
enhancement resulting from the services. A possible proxy on the fair value
of the services received will be the consideration that would have to be paid
by the company if it had purchased the service.
18.8 Disclosure of Donations

The Company shall make the following disclosures:
(1) The accounting policies applied in recognizing donations;
(2) Nature of any donations not recognized in the financial statements due to
unreliability in determining the value of the donations;
(3) Details of any restrictions imposed by the donors on the donations (both cash
and other assets);
(4) Valuation basis for non-cash donations;
(5) Description and amount of each group of promises having similar

characteristics, including the nature of the conditions attached.
18.9 Deferred Recognition of Donation Income

Where the recognition of donation income is deferred, a reconciliation of deferred
revenue at the beginning and at the end of the year shall be provided showing:
(1) The amount being recognized as deferred revenue in current year that
increases the deferred revenue balance.
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(2) The amount recognized as income in current year that decreases the deferred
revenue balance.
18.10 Key Controls

(1) Board of Directors’ approval of receipt of the donation and declaration of the
same.
(2) Weekly and monthly bank reconciliations.
PART NINETEEN: MANAGEMENT OF PROPERTY

PLANT, EQUIPMENT AND INTANGIBLE ASSETS
19.1 Introduction
This policy and procedures sets out the principles for the management of assets and
acquired services under the Management Accountability Framework.

To ensure that the Government controlled company has adequate property plant and
equipment to support its operations and provide for orderly acquisition, use, holding,
and disposal of assets.

There shall be a policy covering the process of accounting for cost incurred in the
purchase, replacement, alteration, and construction of plant and equipment in order
to achieve the company's objectives.
19.4 Key Documents

(1) Fixed assets purchase invoices or grant letters
(2) Fixed asset registers
(3) Depreciation schedule
(4) Fixed assets valuation reports
112

(1) The Head of Finance shall be the custodian of the accounting records relating
to property plant and equipment (PPE).
(2) The Head of Procurement shall approve the procurement of assets.
(3) Heads of Departments shall ensure safe custody of assets in their

departments.

(1) The acquisition of assets shall be undertaken through the procedures
outlined in the procurement Framework. Immediately an asset is acquired,
it shall be tagged with a unique identification code, or branded in case of
motor vehicles.
(2) The Accountant shall prepare a property, plant, and equipment depreciation
schedule every year for approval by the Head of Finance. In the case of assets
acquired through donations, the Head of Finance may use fair estimation of
value for assets of lower value but will seek professional valuation for higher
value assets.
(3) The useful lives of assets as well as depreciation rates shall be determined
by the Board of Directors and reconciled to the tax depreciation rates as
determined by the Rwanda Revenue Authority.
(4) Asset disposals shall be approved by the HOC and communicated to the
Board of Directors. Accounting for disposal and impairment of fixed assets
shall follow the guidelines contained in the International Financial Reporting
Standard and International Accounting Standards (IAS 16). The property,
plant, and equipment register shall contain the following details:
(a) Asset description
(b) Asset tag number
(c) Year/date of purchase
(d) Purchase cost
(e) Date of disposal (if applicable)
(f) Depreciation on disposal (if applicable)
(g) Additions for the year
(h) Location of the item and personnel responsible
(i) Accumulated depreciation brought forward
(j) Depreciation charge for the year
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(k) Accumulated depreciation carried forward
(l) Net book value
(5) On a monthly basis, the Accountant shall reconcile the cost and net book
value block of property, plant, and equipment as per the fixed asset register
against the general ledger for approval by the Head of Finance.
(6) Any un-reconciled differences shall be approved by the Head of Finance

and/or HOC before adjustments are recorded in the accounting records. The
fixed asset register shall be updated immediately after changes by the
Accountant and will be approved by the Head of Finance.
19.7 Leases
(1) Leases are classified as finance leases whenever the terms of the lease
transfer substantially all risks and rewards of ownership to the company. All
other leases are classified as operating leases. Further guidance can be
checked against IAS 17 on distinguishing between operating and finance
leases.
(2) Operating lease prepayments relate to the cost incurred to acquire interest
in leasehold land. Rentals payable under operating lease shall be charged to
income on a straight-line basis over the term of the relevant lease.
19.8 Security, Handling and Insurance of Assets

(1) On an annual basis, the Head of Finance shall validate the total value of
property, plant, and equipment of the organization (as per the asset register)
against the insurance cover. A decision shall then be made on any additional
insurance cover to be obtained and the proposal forwarded to the insurance
company with approval of the HOC.
(2) Any additional assets acquired during the course of the year shall be
communicated to the insurance company for coverage. Any loss of assets
shall be reported to the Head of Finance and clear reports submitted
promptly to the HOC by the relevant staff or department. The Head of Finance
shall fill the insurance claim forms and follow up on payment.
19.9 Key Controls

(3) Asset tagging.
(4) Quarterly physical verification of assets, which will also identify any impaired
assets.
114

(5) Reconciliation of the fixed asset register with general ledger on annual basis.
(6) Annual review of depreciation calculations.
(7) Disposal of fixed assets according to the appropriate asset disposal law.
(8) Undertaking impairment reviews annually.
(9) Valuation of fixed assets using approved valuers.
115

PART TWENTY: BANK ACCOUNT AND CASH
MANAGEMENT
20.1 Introduction
(1) This policy deals with opening and closing bank accounts, operating
mandates, and bank deposits. The Company shall operate bank accounts
with reputable banks having regard to risk and the national monetary policy.
The Board of Directors shall authorize the opening of new accounts through
minutes of a Board resolution. New accounts may be opened for only the
following purposes:
(2) To comply with Government requirements;
(3) To comply with statutory obligations;
(4) For efficient management of funds and investments.

The purpose of the policy is to establish guidelines for the management of bank
accounts and the maintenance of an adequate system of internal control over
the petty cash funds by the custodians of those funds. Reference to cheques in
this policy includes bank transfers and other bank payment instructions as
may be applicable in the money market.

To provide for active liquidity management thereby ensuring sufficient cash
flows to support operations, reduce cash holding costs, and invest free cash
flows.
20.4 Key Documents

(1) The cash book as a record of general ledger cash payments and
receipts.
(2) Bank statements obtained on a monthly basis.
(3) Monthly bank reconciliation statements explaining any differences

between the bank balance in the ledger and the balance in the bank
statements.
116

(4) Bank mandates relating to cheque approval limits for different staff
levels.
(5) Certificate of balances obtained annually for all bank accounts.

(1) Board of Directors- Review and approve signatory mandates
(2) Head of Company – Signatory.
(3) Head of Operations – Signatory.
(4) Head of Finance- Signatory and approval of bank reconciliations.
(5) Accountants - Preparation of bank reconciliations for review.

Management of cash, cheques, EFT, and cash equivalents
(1) All payments for the company shall be signed by the officials
authorized by the Board of Directors.
(2) The Head of Finance shall review all payments before requesting for
signatures to ensure fulfilment of the following conditions:
(a) Funds are available in the particular bank account;
(b) The payment is within the company budget;
(c) All accounting procedures relating to the payment have been

followed.
(3) The signing authority shall cease under any one of the following
circumstances:
(a) An authorized signatory leaves employment;
(b) An authorized signatory resigns from the Board of Directors
(c) Change of signatories by the Board of Directors;
(d) An authorised signatory revokes own signing authority;
(e) An authorized signatory is incapacitated or dies;
(f) Any other reason as approved by the Board of Directors.
117

(4) If any of the above circumstances should occur, the company shall
revoke the cheque signing privileges of the departing signatory with
immediate effect. The Board/Management will formally notify the bank
in writing about the changes.
(5) Where the changes may include adding a signatory or revising the
authorized signing limits. All the changes shall have the approval of
the Board of Directors.
(6) Bank reconciliations shall be performed by the accountants and

reviewed by the Head of Finance before the fifteenth day of each
subsequent month.
(7) The bank reconciliations shall be well-documented, printed, and filed

in a bank reconciliations file arranged by month. They must be
approved by a senior officer other than the one preparing them. Any
differences shall be resolved immediately or within one month of the
reconciliation if an immediate solution cannot be obtained.
20.7 Petty cash

The following procedure shall apply to all petty cash payments:
(1) The staff responsible will ensure that the petty cash fund is kept in a
lockable metal box during business hours and which shall be kept in
a locked area, preferably a safe, after the close of the workday.
(2) Expenditures up to an amount approved by the Head of Finance per

transaction shall be eligible for reimbursement through petty cash.
The petty cash float, or any replenishment thereof, shall be drawn from
the bank and not from cash sales or balances of unused cash. The
maximum amount of the petty cash float shall be set as follows:
(a) Head Office – As approved by the HOC or his delegated authority -

Head of Finance.
(b) Branches - As approved by the HOC or his delegated authority -

Head of Finance.
(3) For every petty cash payment, the staff responsible for petty cash shall
prepare a Petty Cash Voucher (PCV) before any cash is issued. The
PCV shall contain the following details:
(a) Amount requested/incurred
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(b) Name of payee
(c) Signature of the accountant approving the transaction
(d) A brief description of the transaction
(e) Account classification code of the affected accounts
(f) All receipts supporting the cash transaction attached to the PCV
(4) Where a receipt is unavailable and the expense amount cannot be

accurately confirmed, the amount shall be treated in the same way as
an imprest and the amount advanced noted at the top of the voucher.
The voucher shall be filed separately pending submission of official
receipts and reimbursement of any deficit/surrender of any excess.
(5) On submission of an official receipt, it shall be attached to the voucher

and the amount advanced reconciled to the actual expense (at the top
of the voucher) as shown on the receipt.
(6) The cash shall be issued and the asked to sign the PCV to show that
he/she has received the cash. The cashier (herein referred to as to
main person responsible for petty cash) shall immediately stamp
“Paid” on the PCV, attach supporting documents, and file.
(7) If cash is being requested for a purchase not yet made, the payee will
complete a Petty Cash Advance Request (PCAR). The PCAR will be
approved by the HOD and the accountant before the payee obtains
the cash.
(8) The cashier will keep the PCAR in the petty cash book as a temporary
voucher for the cash taken. When the purchase has been made, the
payee will submit the relevant receipts to the cashier together with
any unused cash.
(9) The cashier shall attach these receipts to a PCV, stamp them ‘PAID
’and record on the PCAR any cash returned from the original advance
and file the PCV.
(10) Any petty cash advances not accounted for within 48 hours of issue
shall be treated as a staff loan and recovered as a deduction from the
employee’s next salary payment.
(11) The petty cash cashier shall prepare a petty cash reconciliation
statement showing the physical cash left and the amount spent.
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(12) The accountant shall review the supporting documentation and
approve the reconciliation statement for reimbursement
(13) At least once a month, the petty cash on hand shall be reconciled to
the petty cash balance in the accounting system. This reconciliation
will be reviewed and signed by the accountant for filing.
(14) Spot checks on petty cash may be carried out at any time by the Head
of Finance or accountant. These spot checks may focus on physical
cash counts and/or adherence to these procedures.
(15) On the completion of the above steps, the Petty cash voucher shall be
input into the computer ensuring correct coding and description of
the expenses.
(16) Paid petty cash vouchers shall be attached to the replenishment

cheque payment voucher and filed with the other cheque payment
vouchers. Where there are numerous small receipts, they will be glued
on A4 size papers (preferably recycled to save on cost) to ensure that
they do not get lost.
(17) Cheque payment vouchers shall be correctly completed for balance to

top up to approved float level
(18) A copy of cash account print-out from the accounting system (not on
Excel spreadsheet) will be attached to the voucher
(19) The amount of the requisition shall agree with the amount of the cash
disbursement shown on the cash print-out, except where advances
have been made and formal receipts have not been submitted, in
which case a list of the outstanding imprests and imprest holders will
be attached.
(20) In such cases, an analysis shall be prepared showing the amount of

cash required to replenish the float.
20.8 Electronic Banking Systems

The electronic payment system offers a convenient way to manage the
company's bank accounts 24 hours a day from any place with access to the
Internet.
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(1) Policy Objective
The purpose of this policy is to provide general information on best

practice in the area of electronic banking systems (which may also be
referred to as Internet banking or online banking systems).
(2) Policy Statement
The Company shall use an electronic banking system in the transfer,

payment and receipts of funds in a secure and approved process to
enhance efficiency and cost effectiveness.
(3) Standard Operation Procedure
(a) The decision to implement an electronic banking system shall rest

with the Board of Directors (board) and shall be supported through
approvals contained in minutes of a Board meeting.
(b) The Board’s decision shall result from research covering more than
one electronic banking product offered by the banking institutions.
Careful consideration shall be given to issues such as security,
access, functions, and reports among others.
(c) The Board will assess the internal control risks associated with the
introduction of an electronic banking system and where such a
system is considered appropriate, the rationale for the choice shall
be provided
(d) Once the decision to implement an Electronic Banking System has

been made, the Board shall ensure that an internal procedure is
developed and incorporated within the company’s overall Internal
Financial Procedures document.
(e) Where appropriate, this document shall be cross-referenced to any

relevant user Frameworks and/or system guidelines provided by
the bank. The final document shall also be approved by the Board
and the decision captured in the minutes.
(f) The Internal Financial Procedures document shall clearly outline

the use of electronic banking within the organisation, with clear
instructions in relation to the following elements:
(i) Bank accounts to be accessed.
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(ii) Named authorised users - positions within the organisation
(staff/senior management), Board members, and Finance Sub-
Committee members. All payments shall be authorised by a
Board member/registered director /others included within the
existing account mandate in line with the controls in place for
making payments by cheque.
(iii) Access to functions of the system by individual users (e.g., view

only, print only, authorise payments, add new accounts, delete
accounts, set up standing orders /direct debits etc).
(iv) Additional controls regarding payments to suppliers (i.e., cross

reference bank account details to the payments listings on a
regular basis).
(v) The inclusion of individuals with newly granted access to the

system (i.e., Board members, directors, and staff) and the
deletion of individuals who no longer have access to the system
shall be authorised at a senior level (i.e., by the Manager or a
Board member/registered director).
(vi) The inclusion of new bank accounts onto the system and the
deletion of old accounts from the system shall also be approved
in a similar manner.
(vii) Thresholds regarding Rwanda Franc value of transactions

per day/week /month/per authorised user, which shall be
approved by the Board and set at a realistic level having
regard to the average recurring payroll costs.
(viii) Details regarding number of users required per type of

function (e.g. one user may view bank statements, minimum
of two users to authorise a payment, etc.)
(ix) Security controls regarding access to the system and

passwords.
(g) Review of Electronic Banking Internal Procedures Document. The

Head of Finance shall review and, where appropriate, update the
Internal Procedures document at least once a year. The results of
the review shall be approved for implementation by the Board of
Directors, through the Audit Committee, and the decision captured
in the minutes.
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(h) Any changes relating to the removal of users from accessing the
system, or introducing new users, shall be communicated to the
Bank as per the Board’s authorised and signed mandate.
(4) Security Issues
(a) The security of the electronic banking system is vital. The Board
shall ensure that all the necessary procedures are in place to
protect the system from misuse.
(b) All passwords/user names/codes shall not be stored within the

office environment, but will be memorised to prevent
unauthorized access.
(c) Passwords/user names/codes shall be confidential and will not

be shared between individual users. They shall be unique and
individualised to named authorised users of the electronic
banking system.
(d) Passwords/user names/codes shall be changed regularly

following an automatic lapse after the expiry of a given time period
(e.g. 30 days).
(e) Any separate handheld electronic devices that form part of the
banking system (i.e., devices that provide unique transaction
codes for subsequent input to the computer system) shall be
stored in a secure place under lock and key.
(f) The Board of Directors shall determine, and minute, the number
of computers in which the Electronic Banking System will be
installed. The number of authorised users among the
organisation’s staff shall inform this decision. Having only few
computers with the relevant software will add to the security of
the system.
(5) Segregation of Duties
(a) The segregation of duties when using an electronic banking

system offers protection from potential misuse by any one user
and hence minimises the possibility of fraudulent transactions
being undertaken.
(b) The authorisation of transactions on an electronic banking system

should not differ from what is being used on a Framework paper-
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based system. The Internal Financial Procedures document shall
give details of the users responsible for different elements of the
functions used on the system. For example, one user may prepare
a payment through the system while a different user may
authorise the payment. It shall be the responsibility of the
authorised individuals to apply adequate checks before making
payments and to transfer funds to the correct bank accounts, in
line with the Internal Financial Procedures document.
(c) Users shall not exclusively authorise payments to themselves.

Instead, payments to users of the system shall be authorised by
users at a higher level within the organisation (e.g., a manager’s
salary shall be co-approved by a Board member/registered
director).
(d) The Internal Procedures document shall outline the procedures to

be implemented in the event of annual leave/sick leave by a user.
The procedures should allow for continued and efficient running
of the business while also adhering to the procedures agreed upon
for the electronic banking system.
(e) In instances where segregation of duties may not a viable option

due to a limited number of staff, the company shall implement
additional controls like increased review and monitoring of
payments by Board members and members of the Management
Committee among others.
(6) Key Controls in Internet Banking
(a) The Board shall ensure that use of the Electronic Banking System
is monitored on an on-going basis to guarantee the legitimacy of
all business transactions, which shall also be conducted in
accordance with recognised approval procedures.
(b) The Board, through the Internal Procedures document, shall

clearly identify the individuals responsible for monitoring (e.g.,
manager, Finance Sub-Committee, or Board members). The Board
shall also determine the frequency of monitoring. It will not be
appropriate to have the same individual preparing transactions
and at the same time monitoring these transactions.
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(c) Monitoring of transactions shall include, but will not be limited to,
the following:
(i) Reports of payments and transfers (including internal

transfers)
(ii) Reports of setting up new accounts
(iii) Reports of deletion of accounts
(iv) Reports of payroll transactions (with particular focus on start

and finish dates for staff members)
(v) Reconciliations
(vi) Risk test reports Internal audit reports
20.9 Key Controls- Bank and Cash

(1) Weekly and monthly bank reconciliations.
(2) Cancellation of cheques should be accounted for in a Cancelled

Cheques register.
(3) Returned cheques should be accounted for in a Returned Cheques

register.
(4) The staff who prepares the petty cash voucher shall maintain
sequentially numbered vouchers and a journal that reflects the
amount of cash currently held by the petty cash custodian. The
custodian shall then reconcile the amounts on vouchers and the
amount of physical cash against the petty cash imprest account.
(5) Periodically (e.g., monthly), an independent designated employee shall

conduct a surprise review of petty cash on hand by comparing the
physical cash and vouchers against the total imprest balance. This
procedure ensures the sum of both totals is equal to the total petty
cash that was initially disbursed.
(6) The petty cash, and its supporting documents and vouchers, shall be
kept in a secure environment under limited access by designated
employees.
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(7) The employee overseeing the petty cash process shall establish a
maximum threshold for individual petty cash expenditures.
(8) The imprest limit also shall be reviewed periodically on the basis of the
frequency of petty cash replenishments.
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PART TWENTY-ONE: MANAGEMENT OF LOSS,
FRAUD, IRREGULARITIES AND THEFT OF
FINANCES
21.1 Introduction
The financial impact of workplace fraud, which may occur in the form of direct,
indirect, or intangible costs (or a combination of any of these), can be
significant. In addition to direct losses of tangible assets, such as cash,
inventory, and securities, the loss of competitive advantage, reduced ability to
meet customer needs, reputation impairment, and disruption of business
operations constitute some of the potential indirect or intangible costs to a
business.

To prevent and detect fraud and theft; assign responsibility for implementation
of appropriate controls for the prevention and detection of fraud and theft;
establish the appropriate reporting mechanisms in relation to known or
suspected cases of fraud and theft; and establish the penalties for fraud and
theft by employees.

There shall be concerted effort to discourage service providers or potential
service providers, employees, and directors from being involved in any
fraudulent activities or the loss of company assets.
21.4 Operation Procedure for Prevention and

Detection of Fraud and Theft
(1) Company employees shall not perpetrate, engage in, or otherwise
facilitate the act of committing fraud and theft. The Board of Directors
shall establish controls for the prevention and detection of fraud and
theft. The Head of the Organisation and Heads of Department shall
be responsible for determining the types of improprieties that are
likely to occur within their areas of responsibility including the
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identification and assessment of any irregularities. Company
employees shall be responsible for the prevention and detection of
fraud and theft, which might occur within the scope of their work
assignments.
(2) Employees shall be required to report, with immediate effect, any

known or suspected incidents of fraud, theft, or misappropriation of
company assets to the Internal Audit Department or appropriate
office.
(3) Any employee who has knowledge of fraud or theft of company assets
by any person or organization, including another employee, and fails
to report the same to the company officials shall be liable to
disciplinary action up to and including termination of employment.
(4) The Internal Audit Department, upon receiving initial notification of

suspected or known cases of fraud or theft of company assets, shall
inform the HOC and the chairperson of the Audit Committee.
(5) The Internal Audit Department shall conduct an investigation of the

reports of known or suspected cases of fraud and theft to ascertain
the extent of loss and also review and evaluate control and/or process
failures related to the loss. The department shall notify the HOC and
the chairperson of the Audit Committee.
(6) An employee who suspects the occurrence of a fraudulent activity

shall not attempt to personally conduct an investigation related to the
activity. If the employee elects to inform the departmental
management first, it shall be the responsibility of the departmental
management to pass on the information to the Internal Audit
Department with immediate effect.
(7) Reports and investigations of alleged fraud and theft shall be

confidential to the extent possible under the law and in consistence
with the need to conduct adequate investigation for the purpose of
taking corrective action.
21.5 Key documents

Investigation evidence and reports.
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(1) The Internal Auditor shall make a report to the Audit committee of the
board.
(2) Departmental Managers shall create an environment where fraud is

not tolerated and ensure controls are in place to prevent and detect
fraud.
(3) It shall be the duty of all staff to prevent and report any fraud to the
departmental manager or the head of internal audit.
(4) The HOC shall consider the complexity of the case as well as the
conclusions made by the auditor and proceed as follows:
(a) Take no further action.
(b) Set up appropriate disciplinary action as per the Human

Resource Policy.
(c) Report the matter to the police for further investigation.
(d) Establish measures to recover the monies lost due to fraud or

theft.
(e) Improve the systems, procedures, and controls.
21.7 Key Controls

(1) Development of a whistle-blowing policy
(2) Development of a fraud prevention framework
(3) Incidents review and closure for escalated cases
(4) Reviewed investigation reports
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PART TWENTY-TWO: REPORTING
REQUIREMENTS
22.1 Introduction
Timely and accurate financial reports will boost the company’s compliance with
various statutes and regulatory requirements in addition to supporting
management action. The company shall be required to file financial statements
to government agencies. Listed companies are required to file, and also publish,
quarterly as well as annual results to the stock exchange.

(1) Financial reporting shall enable the company to fulfil the duty of public
accountability as well as enable users to access information.
(2) Financial reporting shall assist users in evaluating the company’s

operating results for the year.
(3) Financial reporting shall make it possible for users to assess the level
of services provided by the Government controlled company and the
ability to meet its obligations.

To provide for efficient data capture, aggregation, and reporting to various
stakeholders as an input for decision making while adhering to statutory
deadlines on reporting.
22.4 Key Documents

(4) Financial statements
(5) General ledger
(6) Trial balance

(1) Board of Directors approves the financial report.
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(2) Head of the Organisation oversees preparation of financial reports.
(3) Head of Finance reviews financial reports.
(4) Accountants prepare financial reports.
22.6 End-of-Month Procedures

(1) The Head of Finance shall ensure there is a cut-off date, accruals,
cash and bank, accounts payable, accounts receivable, general
ledgers for processing, the trial balance, budget monitoring and
control.
(2) The Head of Finance shall complete monthly bank reconciliations by

the 5th of the following month.
(3) The Head of Finance shall formulate the monthly journal entries.
(4) All balance sheet accounts shall be reconciled on a monthly basis to

generate accurate statements for presentation to management and
(5) The Head of Finance shall maintain a file for each month containing
working papers of the balance of each balance sheet account.
(6) The financial statements shall be ready by the 15th of the following
month for presentation to the senior management and the Board of
Directors.
(7) The monthly financial statements shall be sent to the HOC at least
two days prior to sending the Board of Directors’ packets in order to
facilitate review.
(8) The financial statements shall be delivered to the Board of Directors

within three weeks after the end of the reference month.
(9) The Board of Directors shall approve the quarterly financial

statements in their quarterly meeting.
(10) The quarterly accounts shall be presented to the line ministry and
MINECOFIN 30 days after the end of the quarter.
(11) The cut-off date for information contained in the monthly statements
shall be two weeks after the end of the month.
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22.7 End-of-year Accounting Procedures
(1) The Head of Finance shall prepare the end-of-year financial
statements.
(2) The Head of Finance shall be responsible for preparing financial

statements for the annual financial audit and the cut-off for
December/June financial statements shall be four weeks after year
end.
(3) Upon completion of the annual financial statements preparation, the

Head of Finance shall present the preliminary end-of-year report for
review by the Head of the Organisation at least one week before
submission of the Board packet in order to facilitate the review.
(4) The Head of Finance shall present the draft accounts to the external
Audit for Audit.
(5) The External Audit shall on completion present the Audited draft
accounts to the Audit committee.
(6) Audit Committee shall review financial reports and recommend the
audited accounts to the Board of Directors.
(7) The Head of the Organisation shall approve the financial statements
before they are sent to the Board of Directors.
(8) The Board of Directors shall approve the end-of-year financial

statements.
(9) The company shall present the financial statements for approval by
shareholders at the Annual General Meeting.
22.8 Preparing Financial Statements

(1) The purpose of preparing financial statements includes:
(a) To provide both insiders and outsiders with a concise and clear
picture of the current financial status of the business.
(b) To ensure accurate reporting so that the transactions that take

place after the financial period of the business are not included in
the financial statements.
(c) To receive an unqualified audit opinion.
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(d) The preparation shall follow KPIs, supporting schedules and review
check list (Appendix 10).
(2) The process of preparing financial statements shall begin with the
adjusted trial balance, which requires "closing" the book and making.
(3) The necessary adjusting entries to align the financial records with the
true financial activity of the business.
(4) Using the trial balance, the company shall prepare the four financial
statements as listed below:
(a) The balance sheet: A summary of the company's assets, liabilities

and equity (statement of financial position );
(b) The income statement: A summary of the business's income,

expenses, and profits (statement of comprehensive income);
(c) The statement of cash flows: A report on a company's cash flow

activities, particularly its operating, investing, and financing
activities; and
(d) The statement of changes in equity: A report that explains

changes in the company's equity throughout the reporting period.
22.9 Management Reports

(1) The Financial Management Report shall provide a standard income
and expenditure statement (for budget, actual, and encumbrances).
This report shall be produced at varying levels:
(a) For the budget unit as a whole;
(b) For each department within a budget unit;
(c) For each project/grant within each department.
(2) The report shall contain categories of income and expenditure

information displayed in rows as shown in Table below.
Table 4: Income and Expenditure Information by Category
Category Information
Total income For the current year
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Total expenditure For the current year
Current year operating result Income less expenditure
Prior year cash result Actual result from the prior year
Net operating position Current year operating result +/-

prior year result
For each of the outlined categories, the columns of the report shall carry the
information shown in Table 5 below.
Table 5: Content of Columns for Statement Categories
Column Information contained

Movement for current Actual transactions for most recent period only
period
Budget The budget information that has been loaded into
the system against the "final" scenario
Movement for each prior Actual transactions for each prior period in the
period in current year current year (these are hidden but can be displayed
by clicking on the "+" button)
YTD movement The total of actual transactions recorded so far in
this accounting year
Outstanding Encumbrances/commitments that have either been
encumbrances system generated (e.g. from HR system) or input
Framework
Total-YTD movement + Actual transactions + encumbrances
encumbrances
Variation The difference between the budget and YTD
movement + encumbrances. This is the amount of
available funds
% spent Percentage difference received/expended compared
to budget for the full year
Financial analysis Liquidity ratios, activity ratios, profitability ratios,
coverage ratios, and expense-to-sales ratios
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22.10 Annual Reports
(1) The Head of Finance shall prepare an annual financial report
containing the following information:
(a) Financial Highlights
(b) Business Review
(c) Chairman report
(d) Board of directors profile
(e) Sustainability statement report
(f) Social Investment report (CSR)
(g) Staff Profile (Senior management)
(h) Corporate Governance report
(i) Financial statement (income statement)
(j) Director's report
(k) Independent Auditor's report
(l) Financial statements including:
(2) (Statement of financial position),
(3) Statement of Comprehensive Income (Profit and loss statement),
(4) Statement of changes in equity,
(5) Cash flow statement.
(a) Notes to the financial statements
(b) Shareholders Structure
(6) The annual financial report shall be reviewed by the HOC, internal
auditors, and the Audit Committee (See Appendix 9).
(7) The report shall be approved by be Board of Directors (at the Board
meeting preceding the AGM) and the shareholders (during the Annual
General Meeting).
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(8) The annual financial report (unaudited) shall be submitted to the line
Ministry and MINECOFIN 6o days after the end of the financial year.
22.11 Key Controls

(1) Approval of Framework journals;
(2) (2) , Review by Head of finance all financial reports and associated
schedules generated from the system upon full reconciliation.
(3) Review of monthly management accounts by the company

management;
(4) Audit Committee review of financial reports and recommendation of

audited accounts to the Board of Directors for Approval by the Board
of Directors
(5) Accounts must be signed off by the Head of Company and Chairman
of the Board.
(6) Accounts Must be approved by the shareholders at Annual General

Meeting
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PART TWENTY-THREE: PERFORMANCE
MONITORING AND EVALUATION
23.1 Introduction
Monitoring and evaluation (M&E) is a continuous process involving the
assessment of the company for the purpose of determining if it is making
progress towards the achievement of expected results; spotting bottlenecks in
the implementation of programmes, and highlighting any unintended effects
(positive or negative) from an investment plan, programme, or project.

(1) To provide recommendations for improvement as well as identify their
likely impact.
(2) To make a systematic follow up of the outcome of evaluation in relation

to quantified inputs as well as generate feedback required in guiding
the application of measures needed to correct gaps as per the set
objectives.
(3) To ensure efficiency and effectiveness in the utilization of company

resources.

The policy shall ensure that company resources are applied in the most
prudent manner to generate the highest value and that any deviations shall be
investigated and addressed.
23.4 Key documents

Board minutes, financial statements, budgets, strategic plans, and company
performance report.

(1) Board of Directors shall receive performance reports, deliberate and
approve/disapprove and give direction.
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(2) Audit committee - Shall monitor, evaluate performance and report to
the board of directors their findings.
(3) Head of the Organisation shall manage day to day business of the
company and ensure the attainments of targets through departmental
managers.
(4) Internal Auditor - shall audit the performance of the company and
prepare reports to the Audit committee.

The Board of Directors shall conduct periodic reviews of the strategic plan,
budgets, and performance to ascertain whether the company’s actual
performance is in line with the plan. The company shall take timely remedial
action to address any major discrepancies observed, including revision of the
strategic plan and budgets where necessary. For this purpose, the following
statements shall be tabled at every quarterly meeting of the Board of Directors:
(1) Statement of financial position (balance sheet)
(2) Statement of comprehensive income for the quarter under review
(3) Cash Flow Statement
(4) Liquidity position and borrowings
(5) Budget versus actual variance analysis
(6) Physical performance report of the company
(7) Financial analysis report of the company
23.7 Monitoring and Evaluation of Performance of

Subsidiaries/Associates and other Investments
The Board of Directors of the line company shall take full responsibility for the
affairs of its subsidiaries, thus making it vital to conduct periodic reviews of
these entities to ensure the achievement of targets. In this regard, therefore,
the Board has a fiduciary duty to ensure that company investments in
subsidiaries, associates, and other avenues are not only accounted for but also
featured in the annual reports and accounts in accordance with International
Financial Reporting Standards (IFRS) and Public Sector Accounting Standards.
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23.8 Quarterly, Half-Yearly, and Annual
Performance Reports
The Boards of Directors of the company shall institute systems for the effective
management of the organization’s working capital during which the following
statements shall be reviewed on quarterly basis during Board meetings (in
addition to the reports mentioned below):
(1) Age analysis of debtors and creditors.
(2) Age analysis of stocks.
(3) Statement identifying old, slow-moving, and obsolete stocks and other
items.
(4) The Board of Directors shall undertake a critical evaluation of the

quarterly, half-yearly, and annual performance reports.
(5) Quarterly performance reports shall be forwarded to the line Ministry

and MINECOFIN, on or before the 15th day after the end of the
quarter under review.
23.9 Key Controls

(1) Alignment of the annual performance reviews for all employees to the
goals set.
(2) Performance review reports to the Board of Directors and the Minister
in charge.
(3) Conducting moderation/consistency checks at all levels to determine

objectivity.
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PART TWENTY-FOUR: EXTERNAL AUDIT
24.1 Introduction
Planning for the company’s annual financial audit shall begin well before the
arrival of external auditors on site. In addition to preparing the financial
information, the Government controlled company shall determine the role of
every team in the planning and execution of the external audit.

To receive an unqualified (or “clean”) opinion from auditors of the Government
controlled company as a form of assurance that the financial statements
present the company’s position and results fairly in all material respects and
that they conform to IFRS.

The policy shall provide assurance that systems and persons exist for effective
capture, summary, and presentation of results of the financial performance in
a manner that reflects the true and fair view of the operations of the entity.

The Head of finance shall do the following:
(1) Planning & Preparation
(a) Prepare financial information and the accompanied schedules for

audit.
(b) Designate an audit liaison person within the company who will
act as the auditors’ main contact. This should be an experienced
person with strong project management and communication
skills.
(c) Send a general communication to staff stating that if the auditors

contact them directly, they should notify the liaison.
(d) Have the liaison develop a list of contacts who must be kept
informed of the audit progress.
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(e) Have the liaison develop a list of people who can provide support
on technical issues and gathering documentation.
(f) If necessary, schedule and conduct a general training session with

individuals who may be asked to participate in the audit either to
produce documents, be interviewed by the auditors or participate
in findings discussions.
(g) Contact auditors and set up entrance conference. Clarify the

purpose of the audit and ask that audit requirements be in
writing.
(h) Alert the internal audit department of the upcoming audit.
(i) Make necessary arrangements for the audit team – meeting

rooms, preliminary interview schedule, entrance conference
specifics including attendees.
(2) Entrance Conference
(a) Develop a list of questions to discuss in the meeting including the

purpose, objectives and scope of the audit; the awards to be
included and sampling techniques; timelines including beginning
and end of fieldwork and expected report date; and
communication process.
(b) Consider giving the auditor(s) a tour of the company.
(c) Determine staffing and space requirements, including whether

the auditor will need internet access during fieldwork; arrange for
auditor on site space; modify meeting room needs as necessary.
(3) Fieldwork
(a) Obtain the list of requested records and develop an approach for
pulling the information on a timely basis. Give a target date for
providing records to the auditors.
(b) Review the records prior to submission to the auditor. Consider if

the records provide the necessary support. Anticipate what
questions the records may provoke.
(c) Maintain a list of all records provided to the auditor.
(d) Meet with auditors at least weekly to learn of the status of the
audit and potential issues that are identified.
141

(e) Verify the facts on which issues are based; perform re-calculations
and review source documents, if necessary.
(f) Communicate at least weekly with those within the organization

who need status updates.
(g) Liaison should attend meetings between faculty/non-financial

staff and external auditors unless the auditor or faculty insist
otherwise
(h) Set up exit interview.
(4) Exit Interview
(a) Ask for a copy of each finding or draft report prior to the interview.
(b) Based on the nature of the issues, ask representatives from other
groups to participate, e.g. general counsel, internal audit and
departmental heads.
(c) Agree on valid findings; negotiate those findings where the facts
are not representative of the control weakness.
(d) Discuss with the auditor the disposition of the audit issue, i.e.
verbal comment, report item, and management letter.
(e) Escalate any disputed issues to supervisors.
(5) Audit Report
(a) Ask for the final draft report for review.
(b) Draft management responses and circulate to management for

approval.
(c) Understand the follow-up process.
(d) Perform a post-audit evaluation to determine weaknesses in the

process and potential changes to approach in the future.
24.5 Key Documents

(1) Chart of accounts
(2) Accounting records of the company
(3) Cash books
142

(4) Journal vouchers
(5) Financial statements
(6) Trial balance
(7) Supporting schedules to all trial balance items
(8) Bank reconciliations for the period
(9) This procedures Framework
(10) GoR Financial Procedure Framework
(11) Contracts
(12) Any other information as may be requested by the auditor from time
to time.

(1) External auditors shall validate the company financial information
and prepare an audit opinion.
(2) The Head of Finance shall arrange for the audit, prepare financial
information for audit, and respond to the audit queries verbally or
through the management letter.
(3) The HOC shall present the accounts to the Audit Committee (see
Appendix 10).
(4) The Audit committee shall review and recommend accounts to the
Board of Directors
(5) The Board of Directors (represented by the chair) shall approve the
accounts.
24.7 Key Controls

(1) External audits
(2) Management Financial report review by the Audit Committee
(3) Review of financial statements by the Board of Directors and

recommendation to the Annual General Meeting
(4) Shareholders' approval
143

APPENDICES
Appendix 1: Contents of Recommended Forms

As noted in the preamble, the Government-controlled Companies (GCC’s)
operate in diverse industries. It may therefore be impractical to append forms
and templates for each industry. Below is a list of the bare minimum
requirements as far as documentation of finance related controls is concerned.
It is expected that inasmuch as each Government controlled company may
have existing systems and templates, the contents shall at a minimum include
those listed below to be able to cover significant risks identified.
Table 6 Contents of Recommended Forms
Area Form Contents of Form (Minimum)
Regulatory Compliance checklists  Legal requirement

environment
 Acts/Laws
 Frequency
Corporate
 Due date
Governance
 Compliance status
Strategic Monthly actual vs  Income/expense/asset/liability

Planning and budget analysis line
Budgeting
 Budget amount
 Actual amount
 Amount variance
 Percentage variance
 Explanation for variance
144

Accounting IFRS disclosure  IFRS requirement
Policies checklist  Applicability to the GCC
 Compliance status

Accounting Bank reconciliations  Balance as per bank statement per
Systems and general ledger
Controls  Uncredited items
 Items in bank statement yet to be
recorded in the ledger
 Supporting schedules
Inventory  Inventory category
reconciliations  Inventory code/reference
 Inventory name
 Number of units
 Unit value
 Monetary value
 Value per general ledger
 Value per inventory ledger
 Explanations for reconciling items
Fixed assets register to  Book value per the fixed assets
general ledger register
reconciliation  Book value per general ledger
 Explanation of variances
Invoices  Purchase order and Goods

received Note reference
 Company letter head
 Company address
 Invoice date and number
 Customer name and number
 Description of service
 Unit price
 Total price
 Taxes
 Company Contact name and
details
Purchase orders  Company address details where
goods are to be shipped
 Date of order
 Any other specific instructions
 Quantity, items, job, unit price
and line total
145

 Subtotal, sales tax, total
 Name of approver
Debit notes  Company letter head

 Company address
 Debit note date and number
 Customer name and number
 Description of service
 Unit price
 Total price
 Taxes
details
Credit Notes  Company letter head
 Company address
 Credit note date and number
 Vendor name and number
 Description of nature/cause of
credit note
 Unit price
 Total price
 Taxes
details
Goods received notes  Purchase order reference

 Company letter head
 Company address
 GRN date and number
 Supplier name and number
 Description of goods received
including condition
 Unit price
 Total price
Supplier  Balance as per supplier statement

reconciliations  Balance as per general ledger
 Explanations of variances
146

Balance sheet  Opening balances
reconciliations  Explanations of movements
 Closing balances
Sub-ledger to general  Balance as per sub-ledger

ledger reconciliations  Balance as per general ledger
Revenue General ledger sales vs  Monthly revenue per general

Management sales per VAT returns ledger
 Monthly revenue per VAT return
 Variance
 Explanation of variances
Revenue  Balance as per sub-ledger

reconciliations  Balance as per general ledger
Bank reconciliations  See under Accounting Systems
and Controls
Credit Risk Credit request form  Name of applicant
Management  Borrowing reason
 Repayment plan
 Credit history
 Approver
Credit limits register  Customer name and number

 Annual turn-over
 Historical debtor days
 Approved limit
 Existing debt
 Approver
Bad debt approval form  Customer name and number
 Annual turn-over
 Historical debtor days
 Approved limit
 Amount to be written off
 Existing debt
 Debt after provision/write off
147

 Approver
Debtors ageing reports  Customer name and number
 Ageing in the following buckets
 Not yet due
 0-30 days
 31-60 days
 61-90 days
 90-120 days
 120-150 days
 151-180 days
 >180 days
Expenditure Budgets  Line item

Management  Division/department/cost centre
 Budgeted amount
 Prior year actual
 Year on year percentage change
in budgeted amount
 Sub total
 Grand total
Expenses approval  Date
forms  Requisitioner
 Cost centre
 Budget line
 Explanation of nature of expense
 Approver
Payroll On boarding new  Name of employee and number

Management employee request form  Department
 Line Manager
 Line Manager
approval/signature
 Human Resources
approval/signature
 Employment terms i.e. rate,
contract start and end date
 Probation period
 Monthly salary
 Performance based incentives
 Other allowances/benefits
 Interview form appended
148

Exiting Leavers form  Name of employee and number
 Exit date (last pay date)
 Termination benefits due
to/from
 Line Manager
approval/signature
 Exit interview form appended
Accounts Supplier  See above under “Accounting

Payable reconciliations Systems and Controls”

Borrowings Borrowings  Opening borrowing balances
reconciliations  Draw downs
 Interest expenses and penalties
 Repayments
 Closing balance as per borrowing
schedule
 Closing balance as per general
ledger
 Variances and explanations if
any
Loans and Loan amortization  Opening loan balances

Investments schedules  Amounts advanced in the year
 Interest expenses and penalties
 Repayments
 Closing balance as per loan
schedule
 Closing balance as per general
ledger
 Variances and explanations if
any
Inventory Stock take forms  See above under “Accounting

Management Systems and Controls”
149

Inventory  See above under “Accounting
reconciliations Systems and Controls”
Property Plant, Fixed assets register  Asset code

Equipment and  Asset name
Intangible assets  Asset class
 Acquisition date
 Disposal date
 Cost amount
 Opening accumulated
depreciation
 Depreciation rate
 Depreciation amount
 Closing accumulated
depreciation
 Opening Net book value
 Closing net book value
 Impairment
Fixed assets disposal  Asset code

approval form  Asset name
 Asset class
 Acquisition date
 Disposal date
 Cost amount
 Book value
 Disposal proceeds
 Gain/loss on disposal
 Capital gains tax
 Approval by HOC
Cash and Bank Bank reconciliations  See above under “Accounting

Management Systems and Controls”
150

Fraud Prevention Fraud reporting email  There shall be a designated email
address address where suspected frauds
can be reported anonymously.

Financial Same as Accounting  See above under “Accounting
Reporting Systems and Controls Systems and Controls”
above.
Performance KPI vs actual report

monitoring and
evaluation
 Line item
 Division/department/cost centre
 Budgeted amount
 Prior year actual
 Year on year percentage change
in budgeted amount
 Sub total
 Grand total
Non-financial monitoring
 List of targets at the beginning of
the year
 Results per target showing
“above expectation”
 Exceptions
External Audit Same as Accounting  See above under “Accounting

. Systems and Controls Systems and Controls”
above
Appendix 2: Compliance List
151

Sr Relevant Law And Frequency Due Date Status
No. Section
NB: the legal counsel to itemise all laws and their sections that the company
has to comply with.
152

Appendix 3: Risk Register
Ris Risk Risk Impact Of Locatio Rating Actio Targe

k Identificatio Identifie Risk(H/M/L n s n Plan t Date
No. n Date d By )
NOTES
SUMMARY - RISK COUNT BY RATING
Rating
HIGH (H) (Red) 4-5
MODERATE (M) (Yellow)2-3
LOW (L) (Green) 0-1
TOTAL
HIGH (H) – Unacceptable. Major disruption likely; different approach required; priority
management attention required.
MODERATE (M) – Some disruption; different approach may be required; additional

management attention may be needed.
LOW (L) – Minimum impact; minimum oversight needed to ensure risk remains low.
153

Appendix 4: Risk Control Matrix on Cash
Disbursements Procurement of Services or Goods
Sub- Risk Risk Risk Control Control Objectives Existing
Process Typ Description Objectives Description Controls -
e Provide a
Control
Descriptio
n
Cash O, F Inappropria Failure to To disburse Payments should be

Disburse te or ensure all cash only approved by
ments inaccurate disbursements for individuals
disburseme are authorized authorized independent of
nts may cause purchases procurement,
fictitious and that all receiving and
documentation large and accounts payable
to be created unusual based on proper
and allow for cash supporting
company funds disburseme documentation
to disbursed nts be including original
fraudulent or reviewed by authorized invoice.
inappropriately. manageme The supporting
Additionally nt. documents for the
unusual one- payments made
time payments should be cancelled
may be to prevent
processed resubmission for
without payment. Secure
detection. interface should
exist between the
account payable and
the payment system.
Two signatures are
required on checks
and on letters of
instruction to banks
requesting funds
transfers or
disbursements
Cash O, F Unauthoriz Failure to To process Describe how you

Disburse ed ensure accurate ensure that all of
ments payments. payments are payments your operation's
Opportunit authorized and disbursements are
y to obtain remitted properly
154

discounts appropriately documented and
may be lost may lead to the authorized.
occurrence of
payments to
unauthorized
vendors or
accounts.
Additionally,
opportunities to
obtain cash
discounts for
prompt
payment of
invoices may be
lost.
Accountin F Inaccurate Failure to To Payments are made

g Accounts record accurately per the vendor's
Payable information and timely remittance
Information accurately and record instructions. Proper
timely may lead accounts controls should exist
to the payable to ensure integrity
occurrence of activity and accuracy of the
fraud or payment information
misappropriatio and ensure the
n of assets and authenticity of the
disbursements counterparty.
not reported Discounted payment
accurately to terms should be
Accounts identified within the
Payable. system. Changes to
Transactions vendor information
with vendors should be monitored
are not
complete or
accurately
accumulated in
AP
Accountin F Inappropria Inaccurate To ensure Accurate recording of

g te Accounts completen accounts payable
adjustment Payable ess and information depends
s / journal Information accuracy upon the following
entries of General factors:
Ledger
155

 Complete and
timely information
regarding a
purchase
 Accurate input of
transaction details
in the purchasing
system and proper
data entry
validation
 Secure interfaces
and monitoring
controls to ensure
consistency of
purchasing,
inventory and
account payable
information
 System controls to
prevent entering
duplicate invoices
O- Operations
F- Financials
156

Appendix 5:- Financial Risk
Area  Risk  Key Controls – Best Practice
Regulatory  Non-compliance with  Compliance checklists Risk registers shall

environment laws and regulations be documented and audited annually
resulting in penalties  Conduct compliance audits annually to
identify any issues of non-compliance with
laws and regulations
 Implement internal audits as a third line of
defence
 Implement system controls for use in the
calculation of taxes and other statutory
deductions
Corporate  Non-compliance with  Evaluation of the performance of Board of

governance laws and regulations Directors
• resulting in penalties  Strong recruitment controls for BODs and
Poor senior managers
 strategic risk  Sufficient Board Committees covered by
management appropriate charters and terms of
 Going concern risk reference
Strategic  Lack of Strategic Plan  developed and document a company

planning and  lack of budgeting strategic plan
budgeting
 Poor strategic risk  developed and document a company
management Budget
 Going concern risk

 Liquidity risk  Annual budgeting and monthly budget
reviews by senior management
 Monthly review of Management accounts
Accounting  Non-compliance with  Annual review of policies for compliance

policies • International with accounting standards
Accounting  External audits
Standards
 Internal Audit to be efficient and effective
 Financial statements
materially mis-stated
157

Accounting  Non-compliance with  Monthly review of management accounts
systems and International  Monthly budget versus actual analysis
controls Accounting
 Automated delegation of authority for
Standards
approval of transactions in the accounting
 Financial statements system and sub-systems
materially mis-stated
 Internal Audits to be in place - outsourced
 Lack of internal Audit or in house
 Internal Audits to be efficient and effective
 Audits performed by Auditor General
Book keeping  Non- compliance with  Automation of file retention in “soft

and file laws and regulations copies”/electronic format
retention  Outsourced file retention( offsite Backups
to another institution)
Revenue  Misappropriation of  Monthly review of management accounts

management funds  Monthly budget versus actual analysis
 Fraudulent revenue  Automated delegation of authority for
recognition approval of transactions in the accounting
 Errors in recording system and sub-systems
revenue  Ensuring that for contract revenues,
discounts can only be offered in line with
delegation of authority embedded in the
system
 Bank reconciliations for cash received
 Ageing of bad debts and provisions for
doubtful debts >120 days
 
Credit Risk  Poor collections  Automated reminders for collections via

Management  Untimely collections email, sms, letters
 Overstated debtors  Referral of long outstanding debts to debt

collectors
 Ageing of bad debts and provisions for
doubtful debts >120 days.
 Delegation of authority to ensure
provisions and write offs are appropriately
approved in the system
158

Expenditure  Unauthorised  System controls to ensure expenditures
Management expenditure are from an authorised budget
 Relevant approval for expenditures above
budget
 System segregation of duties to ensure
initiator and authoriser have appropriate
system delegations
 Framework review of expense vouchers
and supporting documents
 Automated controls to ensure an invoice
are generated automatically and cannot be
paid for more than once.
 Monthly review of duplicate payments
report
Payroll  Lack of payroll  Have a payroll system (internally or out

Management Management sourced.
 Fraudulent payroll  Approval of starters and leavers into the
expenses for “ghost payroll system
workers”  Consideration for outsourcing payroll
 Incorrect wage function including adding new joiners and
payments in the deleting leavers as well as executing
system payroll calculations
 Incorrect statutory  All payments for wages and salaries to be
deductions initiated and approved in the system
calculations  Automation of calculation of statutory
deductions
 Monthly payroll variance reporting
explaining month on month variances in
payroll costs
 Payroll reconciliation of payroll costs in the
payroll system to the costs in the
accounting system
Accounts  Duplicate payments  Supplier reconciliations comparing

Payable Incorrect supplier supplier statements with creditor balances
balances at the end of per system
the year  Aging analysis of Payables
 Automated controls to ensure an invoice
cannot be paid for more than once.
159

 Automated Local purchase orders
 Monthly review of duplicate payments
report
Borrowings  Unauthorised  Delegations of authority regarding

borrowings being approval of borrowings
procured  Reconciliations of outstanding balances to
 Incorrect borrowing the loan schedules at contract initiation
balances due to  Borrowing confirmations
incorrect calculations
 • Incorrect
interest calculations
Investments  Unauthorised  Delegations of authority regarding

investments approval of investments
 Incorrect interest  Reconciliations of outstanding balances to
calculations the investment schedules
 Possible impairment  Investment confirmations
of investments  Regular/annual review to check for
indicators of impairment
 Impairment calculations shall be
subjected to review and approval by Senior
Management
Inventory  Stock obsolescence  Regular monitoring of stock levels to

Management  Stock pilferage determine minimum and maximum stock
levels
 Stock shortages and
overages  Bar code scanning of stocks leaving
premises into the inventory system to
 • Incorrect
capture sales and other stock movements
valuation of stocks
 Daily/Weekly/monthly inventory system
to accounting system reconciliation of
stock balances
 Lower of cost and net realisable value
assessments at each reporting date
 Regular stock takes to reconcile stocks in
the system to stocks in the stores
160

Property Plant,  Misappropriation of  Quarterly physical verification of assets
Equipment and assets that would also identify any impaired
Intangible  Incomplete asset assets
assets registers  Fixed asset register to general ledger
 Incorrect calculation reconciliations
of depreciation  Monthly review of depreciation
 Impaired assets calculations
incorrectly recorded
Cash and Bank  Unauthorised  Weekly and monthly bank reconciliations

Management payments  Automated password keys for online
 Misappropriation of banking
cash  Automated segregation of duties that
requires at least 2 authorisers for online
payments
 Introduction of mandatory signatories at
specific thresholds
 Cancellation of cheques shall be accounted
for in a cancelled cheques register
 Returned cheques shall be accounted for
in a returned cheques register
Fraud  Misappropriation of  Development of a whistle blowing policy

Prevention assets  Development of a Fraud Prevention
Framework
 Incidents review and closure for escalated
incidents
Financial  Misstatement of  Approval of Framework journal vouchers

Reporting financial statements  Management review of monthly
management accounts
 Review of Financial reports and associated
schedules upon reconciliation
 Audit committee review and recommend to
the Board for approval of audited
accounts
 Annual Financial Statements to be signed
by the HOC and Chairman of the Board
Performance  KPI’s are not met  Annual performance reviews for all
monitoring and  Performance employees to be aligned to goals set
evaluation Contracts  Performance Contracts reviews every six
months
161

 Moderation/Consistency checks done at
all levels to determine objectivity
External Audit  External audit does  Auditor General to audit the GCCs
not meet its  External auditors should be provided with
objectives unfettered access to documents,
information and explanations
 External auditors shall be independent
 External auditors shall report findings to
the audit committee
 Rotation of Auditors every three years if
not Auditor General
 Auditors to be in good standing (as per
ICPAR)
 if Auditor General rotate the Manager
responsible of the Audit
Appendix 6: Customer Credit Appraisal Form (CCAF)

Date: _______________
A: Customer Information
Name of Customer__________________________________________________________
Code_______________________________________________________________________
Address___________________________________________ Town ___________________
Telephone ________________________________ Fax _____________________________
Commencement of Business ____ / ___ /___ Nature of Business Proprietorship

Partnership Pvt. Ltd. Public Ltd.
Line of Business –Engineering/Textile Automobile/Sugar Power Cement

Fertilizer Construction Retail Distributor Other _______________________ (Please
specify)
Person Contacted ____________________________ Designation _________________
162

Telephone __________________ Mobile _____________________ Fax ______________
E-mail _______________________
B: Financial Standing / Information
Bank:
1. _______________________________ Branch ____________________________
Average monthly balance__________________________________________________
2. _______________________________ Branch _________________________________
Average monthly balance __________________________________________________
VAT # ______________________________ TIN __________________________________
Sales _______ (Monthly/Annually) Net Income ___________ (Monthly/Annually)
Details of Assets (Please attach latest Balance Sheet / Income Statement for
Public/Private Ltd.
C: Credit Evaluation
For Existing Customer
1. Credit being availed Yes No (If no, please go to item 7)
2. Credit Limit (RwF) ___________________ Credit Period (Days)____________

Credit record Good / Poor
3. Any outstanding Yes / No (If no, please go to item 6)
4. Specify date / period of o/s ________________ Amount Outstanding (RwF)

______________
5. Is outstanding overdue or current _________ Nature, frequency and

amount of default in last year_____________________
6. Extension Requested Yes No New Limit (RwF)_________________ New

Period (days)_______________
7. Credit Limit Applied (RwF)___________________ Credit Period Applied

(days)__________
163

For a New Customer
Current Supplier _________________________________________________________
Credit Limit (RwF)________________ Credit Period (Days)__________ Reason for

switching to ______________________________ Company_______________________
Credit Limit Applied (RwF) _______________ Credit Period Applied (Days) _______
Company’s Cash / Securities ____________________________ Working Capital

_________________ Fixed Assets_____________________________
Approved by Head of Marketing
Name...........................................Date ..............................
164

Appendix 7: Payroll Amendment Form
PAYROLL AMENDMENT FORM
APPLICANTS DETAILS
Employee’s name: _________________________ Payroll Number: ____________
Job Grade: _______ Department: ____________________ GM/ HOD: _______________
Work station: ____________________________ Signature: ______________________
BANK ACCOUNT AMENDMENT DETAILS
CURRENT DETAILS
PREVIOUS DETAILS
Bank; __________________________
Bank; _____________________________
Branch; ________________________
Branch; ___________________________
A/C Number; ___________________
A/C Number; ______________________
Effective month; ________________
BANK ACCOUNT AMENDMENT DETAILS
Type of change; ____________________________________________________________________________
Previous details; ___________________________________________________________________________
New details; _______________________________________________________________________________
Effective month; ___________________________________________________________________________
To indicate the details that the staff member would like to change clearly stating the current position
and the desired position
APPROVALS
Received by: ___________________ _______________________ _______________________
Name Signature Date
Approved by: ___________________ _______________________ _______________________
Name Signature Date
Updated by: ___________________ _______________________ _______________________
Name Signature Date
Reviewed by: ___________________ _______________________ _______________________
Name Signature Date
165

Appendix 8: Imprest Requisition Form
Name...............................................Department.............................................
Date………………………………..
Pay roll No.. ................................. Grade .................................
Narration
Date When The imprest is required
Amount required(RwF) in words
Amount in Figures
Purpose
IMPREST APPROVAL
APPROVED BY NOT APPROVED
Name ..................................................................Date ...................................
Sign …………………………………..
(Departmental Manager)
166

FOR FINANCE DEPARTMENT
Department Code ........................................................................................
Dr Staff Ac No...........................................Cr Cash Ac no.........................
Dr Expense Ac .........................................Cr Cash...................................
Name...................................... Date ............................Sign .........................

(Head of Finance)
Name...................................... Date ………………………Sign .........................

(Cashier)
I confirm that I have received RwF/US$.............................. and commit to

return/account for it within 48hours of expenditure or return from my trip,
failure to which the same shall be recovered in full from my salary without
reference to me
Name ................................................. Signature .......................................
Date ...........................................
(Applicants receiving imprest)
167

Appendix 9: Internal Audit Charter
Introduction
The following constitutes the Internal Audit Charter
Purpose of the internal audit charter
The Company’s Internal Audit Charter is describing the purpose, authorities

and responsibilities of the internal audit department and the scope and nature
of the services it provides.
This Internal Audit Charter establishes the framework of the Company’s

Internal Audit Function (IA Function) so as to ensure that internal audit
provides the Board Audit Committee (BAC) with added assurance and advice,
independent from line management, on risk management, control and
governance processes.
Key Roles and Responsibilities
The Board’s responsibilities for internal audit
The Board is responsible for all aspects of internal audit in the Company
through the Board Audit Committee, including:
a. Establishing an appropriately resourced IA Function that operates in

accordance with the Company policy in accordance with professional
internal auditing standards.
b. Establishing a Board Audit Committee (BAC) that includes external

members who are not currently in the public service; that shall:
i. Appoint a Chief Internal Auditor (CIA) at a senior executive level,

reporting to the Board Audit Committee, to lead and direct Internal
Audit.
ii. Approve the Company’s Risk Based Audit Plan that addresses all
areas of higher risk and significance. The plan should also include
individual internal audit engagements as well as being designed to
support separate annual assurance overview reporting by the CIA
on departmental risk management, control and governance
processes.
iii. Put in place effective procedures to ensure systematic review of

control and accountability processes in Company’s. For example,
168

this would include ensuring that the BAC reviews with an
appropriate risk-guided focus and Company’s arrangements for:
values and ethics; risk management; and management control
framework, including management-led audits.
iv. Ensure that the BAC receives all of the information and
documentation needed or requested to fulfil its responsibilities,
subject to applicable legislation.
v. Ensure that the IA Function and their agents, for the purposes of
carrying out assigned responsibilities, are given full access to
Company ’s records, databases, workplaces and employees, and
have the right to obtain information and explanations from
Company’s employees, subject to applicable legislation.
vi. Ensure that internal audit reports are disclosed to the extent of
authorized by the Access of the board.
vii. Ensure that management action plans are prepared adequately to

respond to recommendations and findings arising from internal
audits, and that the action plans are being effectively implemented;
viii. Ensure that the Internal Audit documents and audit results will
be shared, upon request.
ix. Monitor and ensure appropriate adherence within Company to the

general principles and applicable requirements of the
government’s IA Policy.
The Chief Internal Auditor’s responsibilities
An Internal Audit assume responsibility to ensure that the internal audit

function at the Company meets all operational aspects of the IA function,
including:
a. Establishing appropriate policies and procedures to guide the use of

internal audit within the Company;
b. Preparing an annual risk-based audit work plan to set out the priorities
of the IA Function, that are reflective of Company objectives, concerns
and priorities; integrated and coordinated with the corporate risk
assessment and strategic planning process; inclusive of external audits
of Company financial statements reporting and controls; address
169

concerns of the company; and, if appropriate, take consideration of
issues of the issues that may be leading wide horizontal audits;
c. Providing an annual overview assurance report on the effectiveness and

adequacy of risk management, control and governance processes;
d. Conducting audits identified in the annual plan as approved by the

Board Audit Committee with the resources allocated, ensuring the timely
completion of internal auditing engagements;
e. Ensuring that internal audit resources are appropriate, sufficient and

effectively deployed to achieve the approved plan;
f. Ensuring that reports on internal auditing engagements are provided to

the BAC in a timely fashion;
g. Coordinating and reporting to the BAC on the progress of implementation

of management action plans in response to audit recommendations;
h. Providing the secretariat’s support to the BAC;
i. Informing senior management without delay of any findings that indicate

major concerns with respect to the management of programs or
initiatives;
j. Ensuring that professional internal auditing standards are followed;

developing and maintaining a quality assurance and improvement
program for the IA Function and monitoring its effectiveness on an
ongoing basis;
k. Reporting annually to the BAC on the IA Function’s performance;
l. Liaising with, coordinating and interpreting all auditing matters

emanating from the Company;
m. Promoting a management culture across Company that reflects a

systematic approach to risk assessment, management and control.
Scope of Work
The scope of work of the internal auditing function is to determine whether the
Company’s network of risk management, control, and governance processes,
as designed and represented by management, is adequate and functioning in
a manner that ensures:
1. Risks are appropriately identified and managed;
170

2. Interaction with the various governance groups as needed;
3. Significant financial, managerial, and operating information is accurate,

reliable, and timely;
4. Employee’s actions are in compliance with policies, standards,

procedures, and applicable laws and regulations;
5. Resources are acquired economically, used efficiently, and adequately

protected;
6. Programs, plans, and objectives are achieved;
7. Quality and continuous improvement are fostered in the Company’s

control process; and,
8. Significant legislative or regulatory issues impacting the Company are

recognized and addressed properly.
When opportunities for improving management control, sound resource

stewardship and Company’s image are identified during internal audit
engagements, they will be communicated to the appropriate level of Company’s
management.
Accountability
The Internal Audit Function, in the discharge of its duties, shall be accountable
to management administratively and functionally to the audit committee:
1. Provide annually an assessment on the adequacy and effectiveness of the

Company’s processes for controlling its activities and managing its risks
in the areas set forth under the mission and scope of work.
2. Report significant issues related to the processes for controlling the

activities of the Company and its affiliates, including potential
improvements to those processes, and provide information concerning
such issues through resolution.
3. Periodically provide information on the status and results of the annual

audit plan and the sufficiency of departmental resources.
Coordinate with and provide oversight of other control and monitoring

functions (risk management, compliance, security, legal, ethics,
environmental, external audit).
171

Approvals
Approved by
Chairman Audit Committee
Chief Internal Auditor
Appendix 10: Key Performance Indicators (KPI) - In

Preparation of Final Accounts
No Responsibility Activity/Task Output/Key Responsibili Frequency
. area Performance Indicators ty Person
1. Bank Carry Draft Monthly Bank Accountant

Reconciliation out/undertake Reconciliation  Monthly
bank Statements and relevant
reconciliations supporting schedules
prepared by the 15th day
following end of month
Investigate and All reconciling items Accountant

clear reconciling /unresolved difference  Monthly
items/Differences cleared/satisfactorily
explained by the 5th day
being reconciled.
Support to raise Adjusting entries for all Accountant  As

appropriate required adjustments required
adjusting entries properly raised by the  Monthly
5th day following end of
month reconciled.
Review and Monthly Bank Head of  Monthly

approval of the Reconciliation Finance.
bank Statements with
reconciliations accompanying schedules
reviewed and endorsed
by signing by the 5th day
reconciled.
Review and Adjusting entries for all Head of  As

approval of required adjustments Finance. required
adjusting entries reviewed and approved  Monthly
arising out the by the end of month
bank following end of month
reconciliations being reconciled.
172

2. Production Preparation and Monthly, Quarterly Accountant  Monthly

and submission of accounts prepared and and
submission of monthly quarterly submitted for review by Quarterly
monthly statutory accounts Head of Finance by the
,quarterly and to the Head of 15th day following the
annual Finance end of the reporting
statutory month, or quarter.
accounts
Preparation and Annual  Annually
submission of accounts/financial
annual statutory statements prepared and
accounts to the submitted for review by
Head of Finance Head of Finance by the
four weeks following the
end of the reporting fiscal
year
Review and first Quarterly accounts Head of  Monthly

approval of reviewed and submitted Finance
monthly statutory to the HOC by the 15th
accounts day following the end of
the reporting quarter.
Review and first Annual  Annually

approval of annual accounts/financial
statutory accounts statements reviewed and
submitted to the Head of
company by the 15th
August following the end
of the reporting fiscal
year.
Review, final Approved quarterly Head of  Monthly

approval and accounts submitted to Company
submission of MINECOFIN by the end
quarterly statutory of month following the
accounts to the end of the reporting
MINECOFIN quarter.
Review, final Approved annual  Annually

approval and accounts submitted to
submission of MINECOFIN by the 31st
annual statutory day of August following
accounts to the the end of the reporting
MINECOFIN fiscal year.
3. Internal and Actions are Improvement plan Head of

External Audit planned and developed and approved organisatio
follow up taken in within one month n
response to the following the audit.
recommendation
173

s of the  Annually
Internal Audit issues and
A u d i t , Audit associated Head of
Committee and recommendations Finance.
Public Accounts satisfactorily addressed
Committee of by the end of the
Parliament. financial year following
the year of audit
174

Appendix 11: HOC Checklist before Signing the
Accounts
Review Internal Controls
The HOC and HOF should meet with senior managers working in the
accounting and financial reporting areas and discuss any problems or issues
that have arisen with the company’s internal financial controls, to discuss any
changes that have been made in the internal controls since the last review and
to review the most recent management letter received from the company’s
independent accountants to see if any matters cited in that letter require
additional attention. The HOC and HOF should also confirm that procedures
are in place that would allow employees in the accounting and financial
reporting area to report any irregularities, including any indication of
fraudulent behaviour, without fear of reprisals.
1. Meet with Independent Auditor
The HOC and HOF should meet with the lead audit partner of the company’s
independent accountants so that the auditors can communicate the results of
their review of the report and any additional views or thoughts which they may
have. The HOC should consider holding a portion of this meeting with the audit
partner without the HOF present. The HOC, in particular, should inquire with
respect to changes in the financial statements that the accountants have
recommended and any alternative treatments that the company should
consider in preparing its financial statements. The HOC and HOF should
discuss with the auditor any deficiencies detected in the company’s internal
controls, any changes made in response to these deficiencies or otherwise, and
any occurrence of fraud that has become known involving an employee with a
significant role in the company’s internal controls. The auditors should be
asked to identify any weaknesses they observed in the company’s internal
controls.
2. Review Report with Audit Committee
The HOC, HOF and the company’s audit partner should meet with the audit
committee, and with the full board if necessary, to discuss the report’s
contents, the results of the discussions outlined above and to understand any
questions or concerns that they may have identified concerning the company’s
financial and reporting systems, internal controls, risk assessment and risk
management policies, auditor independence and effectiveness, financial
175

statements and other public disclosure, or any related matters. The HOC and
HOF should also report to and discuss with the audit committee any
deficiencies detected in the company’s internal controls, any changes made in
response to these deficiencies or otherwise, and any occurrence of fraud that
has become known involving an employee with a significant role in the
company’s internal controls.
3. Consider Obtaining Back-Up Certificates
Although back-up certificates from senior managers similar to the forms the
HOC and HOF will be required to sign are not a substitute for the processes
described above, and arguably add little additional protection if the foregoing
procedures are followed and adequately documented, the HOC and HOF may
want to consider obtaining back-up certificates from the principal internal
management personnel who participated in the preparation and review of the
report. Whether or not back-up certificates are obtained, at a minimum, the
personnel who prepared and reviewed the report should be polled during the
meetings described above to confirm that they are comfortable with the
contents of the report, the processes used to obtain and verify the information
and the steps they have taken to ensure the accuracy of the information.
4. Documentation of Review Process
The HOC and HOF should ensure that all the above steps are documented by
the Company secretary or someone else charged with maintaining the back-up
materials for any certification. The records should include notes describing the
time and date of meetings, including, where appropriate, general descriptions
of the topics discussed, a list of all people who were involved in the preparation
and review of the report and any back-up certificates obtained from employees
involved in the information gathering process. These records should be retained
in the company’s records along with the report to which the records relate.
5. FORM OF CERTIFICATIONS
I, [identify certifying individual], certify that:
1. I have reviewed this [quarterly][annual] report of [identify Company];
2. Based on my knowledge, this [quarterly][annual] report does not contain

any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this [quarterly][annual] report;
176

3. Based on my knowledge, the financial statements, and other financial
information included in this [quarterly][annual] report, fairly present in
all material respects the financial condition, results of operations and
cash flows of the Company as of, and for, the periods presented in this
[quarterly][annual] report;
4. The HOF and other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures and we
have:
a. Designed such disclosure controls and procedures to ensure that

material information relating to the company, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which the
[quarterly][annual] report is being prepared;
b. Evaluated the effectiveness of the issuer’s disclosure controls and

procedures as of a date prior to the filing date of this
[quarterly][annual] report (the “evaluation date”); and
c. Presented in this [quarterly][annual] report our conclusions about

the effectiveness of the disclosure controls and procedures based
on our evaluation as of the Evaluation Date;
6. The Company’s other certifying officers and I have disclosed, based on

our most recent evaluation, to the Company's auditors and the audit
committee Company's board of directors (or persons performing the
equivalent function) all significant deficiencies in the design or operation
thereof.
Signature ……………………………………..
Date ……………………………………………
177

VOLUME 2:
DIVIDEND POLICY
178

TABLE OF CONTENTS
VOLUME 2:............................................................................................... 178

DIVIDEND POLICY .................................................................................... 178
Dividend Policy ......................................................................................... 180
1.0 Introduction ........................................................................................ 180
2.0 Policy Statement .................................................................................. 180
3.0 Policy Objectives .................................................................................. 181
4.0 Key Roles and Responsibilities ............................................................. 181
5.0 Key Controls ........................................................................................ 181
6.0 Key Documents ................................................................................... 182
7.0 Procedure of Dividend Declaration and Payment .................................. 182
8.0 Interim dividends................................................................................. 183
9.0 Dividend payment for financial year of becoming a Government Company
......................................................................................................... 184
10.0 Interim dividend for financial year of becoming a GCC ...................... 185
11.0 Dividend payment for previous financial year .................................... 185
179

Dividend Policy
1.0 Introduction
Companies in which the Government has an ownership interest shall be
managed in accordance with principles for good corporate governance and the
Law N°17/2018 of 13/04/2018 Governing Companies. It is an overriding aim
that they should be managed with a view to ensuring a market return and good
Economic development over time. Within a commercial framework, it is
assumed that the companies will also promote conditions that underpin good
long-term development (Economic and social impact to the citizens of the
country on behalf of the Government). The Board as a key component of
corporate governance is therefore expected to make a return to the Public
Treasury in the form of a dividend, which is a part of the Company’s net profit
to be distributed among the shareholders in proportion to the shares they hold.

(1) All Government owned companies Boards must agree a dividend with
the Minister of Economic Planning and Finance during the annual
strategic planning process.
(2) Boards should have regard to the Government’s preference for

businesses profits to be distributed as cash, rather than retained as
equity.
(3) The Board should have regard to the progression towards, or

maintenance of an appropriate capital structure for business growth.
(4) Government businesses should manage transitory changes in earnings

such that a reasonably stable stream of dividends is achieved.
(5) For a Government company subject to large volatility in the annual

operating result, the adoption of a suitable dividend smoothing
arrangement or a policy based on underlying profit may be appropriate.
(6) Dividend policy will be applied consistently from year to year.
180

The purpose of this policy is to outline to the Government companies the
Minister of Economic Planning and Finance’s expectations for the payments of
dividends by an appropriate return to the Government, as the owner.

(1) The Minister of Finance and Economic Planning on behalf of the majority
shareholder shall approve the dividend pay-out at an Annual General
Meeting and have the right to receive the dividend or waive his intention
to receive the dividend in writing.
(2) Minority Shareholders shall have the right to receive dividends or waive
to receive the dividend in writing.
(3) Board of directors -The Board of Directors shall make a proposal on the
pay-out ratio for each class of shares and submit to the Minister for
Economic Planning and Finance for approval.
(4) For listed companies, the final decision shall be exclusively vested with
the Annual General Meeting.
5.0 Key Controls

(1) The Board shall review the dividend proposal and decide on the
reasonable amount to be paid for recommendation to the Minister for
Economic Planning and Finance.
(2) Final dividend pay-out shall not exceed 50% of distributable profits net
of tax.
(3) The Minister for Economic Planning and Finance shall approve the
dividend pay-out on behalf of the main shareholder.
(4) The Board shall be guided by the Law n°17/2018 of 13/04/2018

Governing Companies; in declaring dividend pay-out. (Article 71, 72 73
and 92).
(5) Payment of dividends shall be paid to shareholders in the company

register 30 days after the approval.
(6) Dividend payment reconciliations shall be carried out by the company.
181

6.0 Key Documents
(1) Register of Shareholders
(2) Annual Report and Financial Statements
(3) Half year Financial statements
(4) Annual Budgets
(5) Dividend Statements
7.0 Procedure of Dividend Declaration and Payment

(1) Sixty (60) days before the end of each financial year, a GCC’s board must
recommend to the Minister of Finance and Economic Planning that the
GCC and its subsidiaries pay a specified dividend, or not pay a dividend,
for the financial year.
(2) The recommendation must be accompanied by:
(a) The board’s estimate of the GCC’s profits (the estimated profits) for
the financial year, after provision has been made for income tax or
its equivalent; and
(b) If the board has made any adjustment to the estimated profits in
making the recommendation, a statement of the amount of, and
reason for, each adjustment.
(3) Before the end of the financial year, the Minister of Finance and
Economic Planning must either:
(c) Approve the recommendation; or
(d) Direct the payment of a specified dividend or a different specified

dividend, as the case may be.
(4) The dividend for a financial year must not exceed the amount allowed
under the Company's Act.
(5) The dividend must be paid within 30 days after the approval by the
Board of directors.
(6) The Minister of Finance and Economic Planning must cause a copy of a
direction given under subsection (3)(b) to the Chairman of the Board.
182

8.0 Interim dividends
(1) The Minister of Finance and Economic Planning shall, at any time after
1 January in a financial year, require the GCC’s board to make a
recommendation about the payment of interim amounts to the State
(including the times at which the amounts are to be paid) on account of
the dividend that may become payable (Payment of dividends) for the
financial year.
(2) Within 1 month after receiving notice of the requirement, the board must
make a recommendation to Minister of Economic Planning and Finance.
(3) The recommendation must be accompanied by;
(a) The board’s estimate of the GCC’s profits (the estimated profits) for
the first 6 months of the financial year, after provision has been
made for income tax or its equivalent; and
(b) If the board has made any adjustment to the estimated profits in
making the recommendation—a statement of the amount of, and
reason for, each adjustment.
(4) The Minister of Finance and Economic Planning must, within 1 month
after receiving the recommendation, either
(a) Approve the recommendation; or
(b) Direct the payment, at specified times, of specified amounts, or

different specified amounts, on account of the dividend that may
become payable for the financial year.
(5) In deciding the amount the GCC is to be directed to pay under subsection
(4)(b), the Minister of Finance and Economic Planning must have regard
to any adjustment identified by the board under the subsection.
(6) A direction under subsection (4)(b) must not direct the payment of an
amount that exceeds the GCC’s estimated profits, after making any
adjustment identified by the board under subsection (3)(b) to exclude an
amount for unrealized capital gains from upwards revaluation of non-
current assets.
(7) Minister of Finance and Economic Planning must cause a copy of a

direction under subsection (4)(b) to the chairman of the Board.
183

9.0 Dividend payment for financial year of becoming a
Government Company
(1) A dividend payable by the GCC is payable at the discretion of the
Minister of Economic Planning and Finance:
(a) The entire financial year; or
(b) The part of the financial year for which it was formed as a GCC;
and
(2) If the GCC has a predecessor—the predecessor and the GCC are taken
to be the same entity; and
(3) An interim dividend paid for the financial year by the GCC’s
predecessor, before it became a GCC, is taken to have been paid on
account of the dividend to be paid by the GCC Under this policy.
Example for paragraph (1);
A candidate GCC becomes a GCC on 1 January 2016. Depending on what the

Minister of Finance and Economic Planning decides under paragraph (a), the
dividend the GCC has to pay for the 2015 –2016 financial year will relate either
to the entire financial year (even though it is a GCC for only half the year), or
only to the period 1 January 2016 to 30 June 2016.
A, an entity, is nominated to be a candidate GCC on 1st October 2015. On 31

December 2015, B, a new entity, is established, and nominated to be the
associate of A. On 1 January 2016, A’s assets and liabilities become B’s assets
and liabilities, and B is declared to be a GCC. On 2 January 2016, B is
dissolved.
In February 2016, a candidate GCC, pays to the State an interim dividend on

account of the dividend that may become payable by it for the 2015–2016
financial year. On 1 April 2016, the candidate GCC becomes a GCC. The
184

interim dividend is taken to have been paid on account of any dividend for the
2015–2016 financial year that becomes payable.
10.0 Interim dividend for financial year of

becoming a GCC
(1) For applying (Interim dividends) to a GCC for the financial year when
it becomes a GCC:
(a) The period (the applicable period) in relation to which an interim

dividend is payable is, at the discretion of the shareholding
Ministers;
(b) The first 6 months of the financial year; or
(c) The part of the 6 months for which it was a GCC; and
(d) The Minister of Finance and Economic Planning must, require the GCC’s
Board to make a recommendation, also notify the Board of the applicable
period.
(2) However, when the Minister for Finance and Economic Planning
exercise his/her discretion (Dividend payment for financial year of
becoming a GCC), they are not bound by an applicable period
previously decided and notified under subsection (a).
Example for subsection (1)
A candidate GCC becomes a GCC on 1 Jan 2017. Depending on what period

the Minister for Finance and Economic Planning decides under subsection
(1)(a), and notifies to the GCC’s board under subsection (1)(d), the payment
subsequently directed will relate to the GCC’s profit for either the first 6 months
of the 2016-2017 financial year or only the period from 1 January 2017 to 30th
2017.
11.0 Dividend payment for previous financial year

(1) In this section—previous financial year for a GCC means the financial
year immediately before the financial year when the GCC became a
GCC.
(2) This section applies to a GCC if:

185

(a) It has not paid a dividend (other than an interim dividend) to the
State for the previous financial year; or
(b) If the GCC has a predecessor—the predecessor has not paid a

dividend (other than an interim dividend) to the State for the
previous financial year.
(3) The Minister of Finance and Economic Planning may give a direction
that:
(a) Payment of dividends applies to the GCC for the previous

financial year; and
(b) If it is necessary for the operation of this section—the periods

mentioned are to be extended as stated in the direction.
(4) For applying this section—
(a) To a GCC that has a predecessor—the predecessor and the GCC

are taken to be the same entity; and
(b) To a GCC that has paid to the State, or whose predecessor has
paid to the State, an interim dividend for the previous financial
year—the interim dividend is taken to have been paid on account
of the dividend to be paid by the GCC for the previous financial
year.
186

VOLUME 3:
STANDARD OPERATION
PROCEDURE FRAME WORK
FOR PROCUREMENT
2019
187

TABLE OF CONTENTS
VOLUME 3:............................................................................................... 187

STANDARD OPERATION PROCEDURE FRAME WORK FOR PROCUREMENT
................................................................................................................. 187
DEFINITION OF TERMS ............................................................................ 192
LIST OF ABREVIATIONS ........................................................................... 197
INTRODUCTION........................................................................................ 199
1.1 Policy Statement .................................................................................... 199
1.2 Policy Objectives .................................................................................... 199
1.3 Application of the Manual ...................................................................... 199
1.4 Scope of the Manual ............................................................................... 200
1.5 Distribution of the Manual ..................................................................... 200
1.6 Review and update of the Manual ........................................................... 200
1.7 Legal Framework .................................................................................... 200
1.8 Institutional Framework ......................................................................... 201
PART TWO: GENERAL PRINCIPLES OF PROCUREMENT........................... 204
2.1 Ethical Conduct ..................................................................................... 204
2.2 Reporting Hierarchy ............................................................................... 204
2.3 Confidentiality........................................................................................ 204
2.4 Conflict of Interest.................................................................................. 205
2.5 Gratuities and Gifts................................................................................ 205
2.6 Declaration of Conflict of Interest Form .................................................. 207
PART THREE: INTERNAL TENDER COMMITTEE ....................................... 208
3.1 Introduction ........................................................................................... 208
3.2 Composition of ITC ................................................................................. 208
3.3 Functions and Duties of the Internal Tender Committee ......................... 209
3.4 Meetings of the Internal Tender Committee ............................................ 209
3.5 Invitation for Internal Tender Committee Meetings ................................. 209
3.6 Quorum of Internal Tender committee .................................................... 210
3.7 Decision Making of Internal Tender committee ....................................... 210
3.8 Minutes of the Internal Tender Committee .............................................. 210
3.9 Hiring of Experts to assist Internal Tender committee ............................. 210
188

3.10 Allowances for Internal Tender Committee Members ............................... 210
3.11 Qualification of Bidders/Due Diligence process ...................................... 211
3.12 Negotiation Committee ........................................................................... 211
3.13 Independent Review Panel ...................................................................... 212
3.14 Functions of the Independent Review Panel ............................................ 212
PART FOUR: PROCUREMENT STAGES ..................................................... 213
4.1 Introduction ........................................................................................... 213
4.3 Policy Objective ...................................................................................... 213
4.4 The procurement stages ......................................................................... 213
4.5 Procurement Planning and Initiation ...................................................... 216
4.6 Procedure for Procurement Planning ...................................................... 216
4.7 Thresholds for requisitions and approval ................................................ 216
4.8 Required documents .............................................................................. 217
4.9 Key control mechanisms ........................................................................ 218
PART FIVE: DEBARMENT/BLACKLISTING OF BIDDERS .......................... 219
5.1 Introduction ........................................................................................... 219
5.2 Conditions for Debarment/Blacklisting a bidder ..................................... 219
5.3 Procedure for Debarment ....................................................................... 220
PART SIX: DEVELOPING TECHNICAL SPECIFICATIONS FOR GOODS, NON-
CONSULTANCY SERVICES AND BILLS OF QUANTITIES FOR WORKS ...... 221
6.3 Required Procedures .............................................................................. 221
6.4 Preparing a List of Goods ....................................................................... 222
6.5 Setting Specifications ............................................................................. 222
6.6 Delivery Schedule................................................................................... 224
6.7 Documents required during goods delivery ............................................. 224
PART SEVEN: PREPARATION OF SCOPE OF WORKS AND BILL OF
QUANTITIES ............................................................................................. 226
7.1 Introduction ........................................................................................... 226
7.3 Recommended Procedures...................................................................... 226
189

7.4 Drawings for Works ................................................................................ 227
7.5 Technical Specifications for Works ......................................................... 227
7.6 Bills of Quantities .................................................................................. 228
7.7 Activity Schedule.................................................................................... 229
7.8 Completion Schedule ............................................................................. 229
7.9 Records Required ................................................................................... 230
7.10 Key Control Processes ............................................................................ 230
PART EIGHT: DEVELOPING TERMS OF REFERENCE FOR SERVICES ...... 231
8.1 Introduction ........................................................................................... 231
8.4 Procedures ............................................................................................. 231
8.5 ToR for Consultancy Services ................................................................. 232
8.6 Records Required ................................................................................... 233
8.7 Next Steps.............................................................................................. 233
8.8. Control Processes ................................................................................... 233
PART NINE: METHODS OF PROCURING GOODS, NON CONSULTANCY
SERVICES AND WORKS ........................................................................... 234
9.3 Responsibility ........................................................................................ 234
9.4 Procedures ............................................................................................. 234
9.5 Procurement Methods ............................................................................ 235
9.6 Methods of Selecting Consultancy Services ............................................. 240
PART TEN: OTHER METHODS OF SELECTING CONSULTANTS ................ 250
10.1 Introduction ........................................................................................... 250
10.2 Selection under a Fixed Budget (FBS) ..................................................... 251
10.3 Least-Cost Selection (LCS) ...................................................................... 251
10.4 Selection Based on the Consultants’ Qualifications (CQS) ....................... 252
10.5 Single-Source Selection (SSS) ................................................................. 252
ANNEXES ................................................................................................. 253
ANNEX 1: ........................ PROCURING ENTITY: PROCUREMENT PLAN FORMAT
.............................................................................................................. 253
190

ANNEX 2: THE BIDDING DOCUMENT FOR GOODS AND RELATED SERVICES
.............................................................................................................. 254
ANNEX 3 – SUPPLYING REQUIREMENTS ...................................................... 309
ANNEX 4 - CONTRACT .................................................................................. 317
ANNEX 5: LIST OF GOODS, SUPPLY REQUIREMENTS AND TECHNICAL
SPECIFICATIONS OF THE GOODS ......................................................... 398
APPENDICES ............................................................................................ 474
Appendix 1: Identification of the member of evaluation team ..................... 474
Appendix 2: Declaration of absence of Conflict of Interest Form ................. 475
191

INTRODUCTION
This Manual is designed to acquaint the employees of the Rwanda Government-
controlled Companies with the policies and procedures governing supply chain
management.
The information contained in this Manual applies to all employees of the

Government-controlled Companies. Abiding by the policies and procedures
described in this Manual will ensure value for money and an equal opportunity
for all Rwanda citizens to participate in the procurement process. s a condition
of continued employment with Rwanda Government-controlled Companies.
The regulations contained herein may be reviewed from time to time

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DEFINITION OF TERMS
(1) Award Decision by the procuring entity’s tender
committee or any other team with the powers to
determine the successful bidder
(2) Bid Document from a procuring entity containing the

requirements for the bid/proposal
(3) Tender notice Advertisement by which eligible providers are

invited to submit written offers to provide (or
acquire) works, services, or supplies or a
combination of these in case of procurement (or
disposal)
(4) Bid period Period between the date of publication of the

invitation to bid and the closing date for the
submission of bids
(5) Bid security Guarantee by a bank or other relevant financial

institution, which allows the prospective bidder
to participate in bidding process
(6) Bid validity Period of time, subsequent to the bids opening,

period for which the bid price and the conditions of the
bid are not subject to any change by the bidder
(7) Bidder A physical or legal person intending to

participate, or is already participating, in the
procurement proceeding
(8) Bidding Documents prepared by the procuring entity

documents containing information for preparation of bids,
evaluation criteria, award process, and tender
execution
(9) Consultant Individual or firm contracted by the procuring

entity to carry out consultancy services
(10) Consultancy Activities of an intellectual or non-material

services nature.
(11) Contract A binding agreement, or other similar documents

to which the procuring entity is a signatory.
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(12) Contract Ensuring performance and compliance with the
management terms and conditions of the contract by the
provider and the procuring entity
(13) Day Every weekday, including holidays, unless

otherwise stated by the procuring entity in the
bidding document, contract, or other official
document
(14) Emergency Circumstances that are urgent and

unforeseeable but not caused by dilatory
conduct
(15) End users All departments or units within the procuring

entity
(16) Framework Contractual arrangement which allows a

contract procuring entity to procure works, services, or
supplies that are needed on a continuous basis
or repeatedly at an agreed price over a period of
time, through the placement of a number of
orders
(17) Goods or supplies Objects of every kind and description including

raw materials, products, and equipment in any
form be it in solid, liquid, or gas; electricity; as
well as services that are linked to the supply of
the goods if the value of those services does not
exceed that of the goods themselves
(18) Tender Committee responsible for opening, evaluating,

committee and recommending the award of tender and any
other activity as may be determined by the
procuring entity
(19) Lowest bid Lowest price offered for a given contract
(20) Lowest-evaluated Bid that is determined to be the most technically

bid and economically responsive to the tender after
evaluating all terms and conditions
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(21) Non-stock items Procurement items that are acquired for specific
purposes or projects
(22) Performance Guarantee issued in respect of a procuring

Security entity, by a bank or other established financial
institution, so that in case the contract is not
performed for any reason, be it technical or due
to deadline issues, then the procuring entity
shall receive the amount provided for in the
guarantee
(23) Pre-qualification Examination process designed to ensure that

invitations to bid are confined to capable
providers
(24) Prequalified Providers registered by the procuring entity for

providers service delivery as and when the need arises
(25) Procurement Acquisition of goods, works, and services as may

be needed by the procuring entity to achieve its
objectives
(26) Procurement Successive stages in procurement including

process planning, choice of procedure, soliciting offers
from bidders, receipt and opening of bids,
evaluation of bids, award of contract, and
contract management
(27) Procuring entity An organ, government project, parastatal, agency

or government entity charged by the chief budget
manager with the responsibility of to managing
funds used in the procurement process
(28) Proposal Offer made by a consultant in response to a

request for proposal (RFP) addressed to the
consultant by the procuring entity on the basis
of appropriate terms of reference
(29) Provider Natural person or corporate body including a

consultant, contractor, or supplier licensed by a
competent authority to undertake business
activities
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(30) Quotation An offer made by a provider (supplier) in
response to a request for goods/supplies
addressed to the provider by the procuring entity
based on specifications
(31) Record Document relating to any stage of the

procurement or disposal process
(32) Services Object of procurement, other than works and

supplies, and shall include both professional and
non-professional and commercial types of
services as well as services which are incidental
to such services
(33) Specification Description of an object of procurement or

disposal in accordance with national and
international standards
(34) Supplier or Party to a procurement contract with the

contractor procuring entity
(35) Terms of Document prepared by the procuring entity

Reference defining the requirements for set assignment,
means to achieve the it, recommendations, and
the expected results
(36) Works Any activity associated with the construction,

demolition, repair, or renovation of a structure
(on the surface or underground) and includes the
preparation for excavation, erection, assembly,
installation; testing and commissioning of a
plant, equipment or materials; and decoration
and finishing.
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LIST OF ABREVIATIONS
BNR Banque Nationale du Rwanda
BOQ Bill of Quantities
CFR Cost and Freight
CIF Carriage Insurance and Freight
CIP Carriage and Insurance Paid
CPT Carriage Paid to Consultants
CQS Qualifications Selection
CSOPF Comprehensive Standard Operation Procedure Framework
EOI Expression of Interest
EXW Ex-Works
FBS Fixed Budget Selection
FOB Free on Board
GCC General Conditions of Contract
GoR Government of Rwanda
GPN General Procurement Notice
ICB International Competitive Bidding
IRP Independent Review Panel
IS International Shopping
LC or L/C Letter of Credit
LCS Least Cost Selection
LOI Letter of Invitation
MINECOFIN Ministry of Finance and Economic Planning
NCB National Competitive Bidding
NS National Shopping
OECD Organization for Economic Co-operation and Development
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PPL Public Procurement Law
RFP Request For Proposals
RFQ Request for Quotations
RPPA Rwanda Public Procurement Authority
RwF Rwandan Francs
SBD Standard Bidding Document
SCC Special Conditions of Contract
SPN Special Procurement Notice
SSS Single Source Selection
ToR Terms of Reference
198

INTRODUCTION

The GoR controlled companies shall comply with the following general
principles.
Procurement of goods, works, consultancies and other services shall be

undertaken using appropriate procurement methods as stipulated in the
present CSOPF. It is mandatory for all Government-controlled Companies to
comply with the CSOPF as approved by the relevant authority.
Government-controlled Companies shall uphold the principles of economy,

fairness, accountability, equity, efficiency, and transparency in the
procurement and disposal processes.

The procurement guiding principles and policies contained in this manual are
intended to:
(1) Provide guidance for Government-controlled Companies when

conducting procurement proceedings;
(2) Provide uniform principles and policies applicable to all Government-

controlled Companies in the process of conducting procurement;
(3) Promote efficiency, economy and the attainment of value for money in
the use of internally generated funds, public funds, and/or partner
funds under the custody of the procuring entity;
(4) Promote transparency and accountability in the procurement processes

handled by Government-controlled Companies; and
(5) Provide standard operating procedures, against which to measure

compliance and consistency of Government-controlled Companies in
discharging their mandate.
1.3 Application of the Manual

The Comprehensive Standard Operation Procedure Framework for
Procurement shall apply to all procurement transactions carried out by
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Government-controlled Companies using internally or externally generated
funds and/or Government funded projects falling in the competence of the
respective entities where applicable.
Where donor funded procurement is required to follow the procurement rules

of the donor or funding agency, those rules shall prevail over the procedures of
this Manual to the extent that there is no conflict. However, the procedures in
this manual will apply in all areas where they are consistent with the rules of
the donor.
1.4 Scope of the Manual

The guidelines contained in this Manual cover the whole procurement cycle
from initiation to contract completion. The manual provides guidance on the
methods and best practices of procurement. The manual also includes
guidelines for disposal of assets owned by Government-controlled Companies.
1.5 Distribution of the Manual

This Comprehensive Standard Operation Procedure Manual for Procurement
shall be distributed to Government Controlled entities for domestication and
compliance.
1.6 Review and update of the Manual

This procurement guiding procedures manual is subject to continuous
upgrading to cater for changes in the operating business environment, needs
of the procuring entity, and administrative structures and operations. The
adoption of new and improved procedures and practices shall take effect under
guidance from the line ministry and approval by MINECOFIN as the guarantor
of the manual. Such review shall be effected after every 5 years or as shall be
initiated by MINECOFIN from the date of launch.
1.7 Legal Framework

The legal and institutional framework provides foundation for the
establishment of the procurement function in Government-controlled
Companies. It is based on the 2003 Rwandan Constitution revised in 2015;
Organic Law No 001/2016 of 20/04/2016 establishing general provisions
governing Public Institutions Organic Law N° 12/2013/OL of 12/09/2013 on
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State Finances and Property; Law n°17/2018 of 13/04/2018 Governing
Companies and the Law No 45.2011 of 25.11.2011 Governing Contracts. The
suggested framework also draws upon Law No 05/2013 of 13/02/2013
modifying and completing the Law No: 12/2007 of 27/03/2007 on public
procurement as a best practice; the Ministerial Order N°001/08/10/2008; and
Min. Order No 001/14/10/TC of 19/02/2014 establishing regulations on
Public Procurement, Standard Bidding Documents and Standard Contracts.
The Framework is further based on international best practices in
procurement, namely the European Union Policy on Public Procurement in
International Trade, 2012 and International Purchasing Manual 2016.
These benchmarks render credence to the use of CSOPF by the Government-

controlled Companies. The CSOPF is intended to provide a standard
application framework for all Government-controlled Companies in their
respective operational domains.
1.8 Institutional Framework

Every Government Controlled Company shall have a supervisory board

in the form of a Board of Directors (BoD) to serve as the ultimate
decision-making organ at policy level, as stated in Art. 10. The
Management shall consult the BoD for all major decisions affecting the
company (Organic Law No 001/2016 of 20/04/2016 establishing
general provisions governing public institutions, Art. 6, 9 and 10).
The board shall be responsible for approving the annual procurement

plans, accompanying work plans, together with the budget and the HR
plans.
(2) Head of the Company
The Chief Executive Officer (Head of the Company) shall be responsible

for the day-to-day management decisions and implementation of the
company plans. The Head of the Company shall act as a direct liaison
person between the BoD, management, and staff. As the chief budget
manager of the business entity, the Head of the Company shall be the
ultimate authorizing officer of procurements involving significant
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thresholds. From time to time, the CEO shall update the Board on the
status of the prevailing procurements and seek approval whenever
deviation from the previous method of procurement is involved.
When conditions so require, the Head of the Company shall consult the
BoD for further guidance on strategic purchases of goods and services
involving significant thresholds. Such conditions may include but not
limited to the joint ventures; Thresholds requiring ten percent of the
Company share capital will require approval from the shareholders.
Such conditions may be acquisitions or mergers. The Head of the
Company may act as the Secretary to the Board in the absence of a
Company Secretary.
(3) Procurement Department
The department responsible for procurement shall ensure strategic

alignment of the procurement plans with the business objectives. The
Head of Procurement together with staff in the department shall serve
as internal consultants for the company and will facilitate the
preparation of procurement plans, policies, and practices designed to
achieve value for money in the procurement process.
As part of the strategy to achieve transparency, efficiency, and

effectiveness all Government-controlled Companies shall be required to
adopt and adhere to the CSOPF. Companies shall justify and seek the
approval of MINECOFIN before implementing any deviations from the
CSOPF.
The Procurement Department shall be required to consistently review

the CSOPF requirements against the company’s demands with a view to
sustaining relevance and applicability of the manual to the
circumstances of the company.
(4) The Head of Department (HOD)
The HOD shall be responsible for the implementation of the

procurement plan, processes and activities in a co-ordinated manner
while also ensuring compliance with company objectives.
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The HOD shall ensure that job descriptions are in place for the positions
in the procurement department, and that these are in agreement with
the company’s objective of promoting efficiency. The job descriptions
shall clearly outline the purpose of the job, principal duties, education
and qualifications required, and reporting relationships.
(5) Staff in Procurement Department
The staff shall be responsible for ensuring that their actions are in
accordance with procurement policies. They shall be held personally
responsible for actions amounting to a breach of the policy as laid out
in this manual.
(6) Internal Tender Committee
The role of the Internal Tender Committee (ITC) shall consist of

procurement management, planning, and budgeting. The ITC will also
be required to make appropriate recommendations to the Chief
Executive Officer in relation to procurements.
(7) Independent Review Panel
(a) The Independent Review Committee (IRP) shall be charged with the
responsibility of reviewing appeals in respect of procurement-related
decisions of the Internal Tender Committee in accordance with
Article 69:4 of Law N° 12/2007 of 29/03/2007 on Public
Procurement. The committee shall be constituted by the Board upon
the recommendation of the Head of the Company.
(b) At no time shall the company staff constitute more than two (2)
members of the IRP. Subsidiary companies shall constitute IRPs
composed of staff from holding companies to manifest fairness,
independence, and transparency in decision making. In case the
appellant is not satisfied with the decision of the IRP, the party shall
appeal to Rwanda Public Procurement Authority for a final ruling.
The appeals shall follow the same procedure used at first appeal.
(c) Appeals shall be made within seven (7) days following the time the
complainant became aware, or should have been aware, of the
circumstances giving rise to the complaint.
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PART TWO: GENERAL PRINCIPLES OF
PROCUREMENT
2.1 Ethical Conduct

The Government-controlled Companies, referred to as procuring entities in this
manual, shall conduct their procurement activities in an ethical and just
manner without compromising value for money. Where applicable, the
responsible entities shall apply best practices reflecting international
standards (Art. 4: Law N° 12/2007 on Public Procurement). In this case, public
procurement law is referenced as locally available best practice to emulate
where applicable.
2.2 Reporting Hierarchy

(1) The procurement units, internal tender committees, and any other
body in charge of tender award shall report to the head of the procuring
entity or other similar office depending on the organizational structure
of the entity in question.
(2) Procuring entities shall prepare comprehensive procurement reports,

which will include the following information: tenders awarded and
tenders in process; contract amount per tender versus the budget;
tenders delayed and reasons for the delay; and challenges faced
together with the envisaged solutions.
(3) Reporting forms shall form part of, and will be approved along with the
procurement report, as required by the Comprehensive Standard
Operation Procedure Manual for Procurement.
2.3 Confidentiality
(1) Unless it is required by law (Art. 17: Law N° 12/2007 on Public
Procurement), personnel involved in the procurement process shall be
prohibited from communicating to external parties any confidential or
official information obtained as a result of participating in the
procurement process.
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(2) Any information related to the analysis, clarification, and evaluation of
bids shall not be disclosed to bidders or other individuals not officially
involved in the tendering process. However, where information is
required in the interest of the procuring entity, by the head of the
procuring entity or any other authorized company staff, the persons or
team with the information shall release it for such interest only.
2.4 Conflict of Interest

(1) Conflict of interest refers to a direct or indirect industrial or family
relationship with a member of the personnel proposed by the bidder (see
Appendix 1 and 2) which may influence directly or indirectly the
outcome of the bidding process, whether positively or negatively to either
of the competing bidders. Such members are defined in Article 11 of the
Law N°05/2013 of 13/02/2013 modifying and completing the law n°
12/2007 of 27/03/2007 on public procurement.
(2) In accordance with the procurement method (insert the method) and
procedures described in the bidding document, an individual who
participates in tender evaluation shall not profit from competitive
advantage or become the subject of conflict of interest.
(3) It is within this framework that an employee, who has been appointed
to take part in the evaluation and tender award committees, shall be
required to fill a conflict of interest declaration form (see form 2.5 below).
2.5 Gratuities and Gifts

Neither members of the procuring entity’s tender committee nor staff in the
procurement unit shall ask for or accept gratuities, favours, gifts, or
commissions from bidders. Such an act shall be sanctioned in accordance with
applicable laws in Rwanda. Bidders shall provide objective and impartial
professional advice and will at all times put the interest of the client first,
without undue consideration for future work. In providing advice, bidders shall
avoid conflict with other assignments and their own corporate interests.
Conflict of interest shall include, but not be limited to, the following
circumstances (Art. 16: Law N° 12/2007 on Public Procurement):
(1) Conflict between consulting services and the procurement of goods,

works, or non-consulting services (i.e., services other than consulting
205

services covered by this manual). A firm that has been engaged to
provide goods, works, or non-consulting services for a project in a
procuring entity, or any affiliate that directly or indirectly controls, is
controlled by, or is under common control with that firm, shall be
disqualified from providing such consulting services.
(2) Conversely, a firm hired to provide consulting services for the

preparation or implementation of a project, or any affiliate that directly
or indirectly controls, is controlled by, or is under common control with
that firm, shall be disqualified from subsequently providing goods,
works, or services (other than consulting services covered by this
manual) resulting from or directly related to the consulting services for
such preparation or implementation.
(3) Conflict between consulting assignments: Neither consultants (nor

their personnel and sub-consultants), nor any affiliate that directly or
indirectly controls, is controlled by, or is under common control with
that firm, shall be hired for any assignment that, by its nature, may be
in conflict with another assignment of the consultants.
(4) Relationship with procuring entity staff: Bidders (including their

experts and other personnel and sub-consultants) that have a close
business or family relationship with professional staff who are directly
or indirectly involved in any part of the procurement process including:
(a) preparation of the TOR/technical specifications/BOQ for the

tender;
(b) selection process for the contract; and
(c) supervision of such contract may not be awarded a contract,

unless the conflict stemming from this relationship has been
resolved in a manner acceptable throughout the selection and
execution of the contract. Such relationships may include:
(i) Members of senior management of the procuring entity and

their direct relatives (first and second degree relationship,
namely spouses, children, and in-laws);
(ii) Members of the procuring entity’s Tender Committee and

their direct relatives (first and second degree relationship,
namely spouses, children, and in-laws);
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(iii) The entities in which the above-listed persons are
shareholders.
(5) A consultant shall submit only one proposal, either individually or as a

joint venture partner in another proposal. If a consultant, including a
joint venture partner, submits or participates in more than one
proposal, all such proposals shall be disqualified. This does not,
however, preclude a consulting firm from participating as a sub-
consultant, or an individual participating as a team member, in more
than one proposal when circumstances justify and if permitted by the
Request for proposal (RFP). Otherwise this shall be a conflict of interest
and an attempt to collusion.
(6) Procuring entities may decide to use the following form (2.5 below) for
each member of the evaluation team nominated to evaluate the tender
to declare the absence or presence of conflict of interest.
2.6 Declaration of Conflict of Interest Form

Thank you for agreeing to be part of the evaluation team for the tender related
to « …………………………………………………………………..…. ».
NAME POST Employer/Institution Function
1. Do you have any industrial, business or family relationship with one or

more of the bidders competing for the aforementioned service and whom
you are the evaluator of their bid/proposal?
YES NO
2. If Yes, Explain the nature of this relationship
PROFESSIONAL FAMILY
I declare on my honour that the information provided in the aforementioned
is sincere, correct and true to the best of my knowledge.
Signature: ………………………………………………..
Date: ………………………………………………………
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PART THREE: INTERNAL TENDER COMMITTEE
3.1 Introduction
A procuring entity shall establish a tender committee referred to as the Internal
Tender Committee (ITC). Members of the committee shall be appointed by the
Chief Executive Officer upon advice from the Head of Procurement and
approved by the Board or other competent authority depending on the
organizational structure. The basis for selection of members of the ITC shall
include integrity, technical expertise, gender, and experience among others
(Art. 6: OL N° 12/2013 on State Finances and Property, Art. 22: Law N°
12/2007 on Public Procurement, Public Procurement User Guide p. 142). The
ITC shall serve a single term of three years and replaced by a new team.
3.2 Composition of ITC

(1) It is advisable to constitute the ITC with an odd number of the
membership. The exact number and term limits of the ITC shall vary
depending on the organizational structure of an entity. The number can
range between 3, 5, 7, depending on the size of the procuring entity.
The Head of Procurement shall be the secretary to the ITC.
(2) ITC may be composed of other sub committees selected based their
expertise to assist in its functions when need arises.
(3) Unless the procuring entity does not have enough staff to compose the
minimum number, the following individuals shall not be appointed as
members of the ITC: Managing Director, logistics and administration
staff, finance unit staff, internal audit staff, and legal unit staff. The
staff from the units mentioned may be allowed to be part of ITC in cases
where a procuring entity lacks adequate staff from other sections to
constitute the number required.
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3.3 Functions and Duties of the Internal Tender
Committee
The functions of the ITC as prescribed in this Framework are indicative rather
than conclusive and a procuring entity may amend, add, or reduce them
depending on the nature of its business. The functions shall include:
(1) Reviewing and providing advice on bidding documents before

publication/advertisement;
(2) Opening the bids and preparing bid opening reports;
(3) Evaluation of bids in accordance with the bids evaluation criteria

established;
(4) Providing recommendations on all issues relating to procurement

tenders;
(5) Approving/recommending amendments to the procurement contract;

and
(6) Conducting market survey for development of a price list for comparison
purposes during tender evaluation.
3.4 Meetings of the Internal Tender Committee

The Internal Tender Committee shall be chaired by a chairperson or vice-
chairperson in the absence of the chairperson or any other elected member
depending on the procurement entity’s provisions of the procurement manual.
Meeting intervals will vary depending on the nature of business and it shall be
imperative to keep records of meetings.
3.5 Invitation for Internal Tender Committee Meetings

The invitation to attend ITC meetings shall be prepared by the secretary of the
ITC and sent through email or other appropriate means to all the members.
The invitation shall clearly specify the venue, agenda, and time of the meeting.
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3.6 Quorum of Internal Tender committee
The quorum of the ITC shall be two-thirds of the total number of members.
Unless in the case of official absence, delegation of powers by a member of the
ITC shall not be acceptable.
3.7 Decision Making of Internal Tender committee

The decisions of the ITC shall be made by consensus, but where consensus is
not reached then the majority decision shall prevail.
3.8 Minutes of the Internal Tender Committee

The minutes of the ITC meeting shall form part of the supporting
documentation for any procurement approvals where necessary. The minutes
shall comprise the following:
(1) Agenda, date, and venue;
(2) Items or tenders that have been evaluated and/or discussed;
(3) Recommendations made thereof.
3.9 Hiring of Experts to assist Internal Tender

committee
Procuring entities may hire consultants to assist in the evaluation of bids or
any stage in the procurement process, especially when the scope of the bid or
contract requires particular expertise not available in the Company. The ITC
shall, however, be accountable for the recommendations made and will not in
any way be bound to accept the recommendations of the hired consultant.
3.10 Allowances for Internal Tender Committee

Members
The procuring entity may or may not, depending on its discretion, determine
and give the Tender Committee Members a monthly allowance, net of taxes,
whose amount may vary from one company to another. The allowances shall
also be increased subject to approval by the respective Boards of Directors.
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3.11 Qualification of Bidders/Due Diligence
process
Prior to the evaluation of the bids of the tender, the procuring entity may need
to carry out due diligence to ascertain the background and performance record
of the bidder or affiliated entities resident in Rwanda and/or elsewhere with
respect to ownership, technical and financial capabilities, and members of the
Board. In conducting due diligence, the following conditions shall apply:
(2) Due diligence shall not be considered mandatory but will depend, for
example, on the sensitivity and amount of money involved as determined
by the respective procuring entities.
(3) Due diligence shall be conducted by an appointed team within the

procuring entity or an independent government body outside the
procuring entity. The results of the due diligence activity may lead to
disqualification of a bidder if all or the majority of members of the ITC
consent to doing so. A fair and impartial due diligence report shall be
submitted to the Head of Procurement of the procuring entity.
(4) The detailed reasons for rejection of a bidder(s) as a result of the due
diligence process shall be considered as confidential and will be known
only to the head of the procuring entity.
(5) In the event that the lowest bidder has been rejected as a result of
findings from due diligence, the second responsive bidder shall be
considered, and so on. If all bidders are rejected after due diligence, the
tender shall be cancelled and a new one issued.
3.12 Negotiation Committee

(1) Negotiations regarding the terms of contract and/or the prices are
normal and acceptable for all procurement categories, but they shall not
be considered mandatory. The Negotiation Committee is constituted
from the ITC members. The negotiation committee shall discuss and
finalise certain details of a contract with the successful bidder, prior to
contract conclusion. The contract negotiations will depend on the
proposed bidder’s offer, which could be seemingly high compared to the
market price, or other reasons as may be determined by the procuring
entity.
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(2) The constitutive number of the Negotiation Committee shall depend on
the value and complexity of the procurement, but shall in all cases not
fall below three (3). Negotiation committee shall entail members from the
user department to ensure required expertise on the procured items
during negotiations.
(3) Negotiations shall lead to a contract that is acceptable to both parties to

reduce the likelihood of disputes or the need for contract amendments.
3.13 Independent Review Panel

Bidders not satisfied with the decision of the Internal Tender Committee shall
be allowed to lodge their protests to an independent panel. As such the head of
the procuring entity, with approval from the Board of Directors, shall appoint
an Independent Review Committee on adhoc basis. Where the Board does not
exist, the committee shall be approved by senior management. The adhoc IRP
committee shall be established prior to the beginning of the tendering process
to ensure timely address to anticipated appeals.
3.14 Functions of the Independent Review Panel

(1) The independent review panel shall perform the following tasks;
(2) Review appeals submitted by dissatisfied parties.
(3) Conduct investigations where necessary to facilitate appropriate

decisions.
(4) Seek the necessary procurement documents for review before decision-
making.
(5) Prepare and submit the review reports and recommendations therein.
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PART FOUR: PROCUREMENT STAGES
4.1 Introduction
This section is structured around key stages of the procurement process and
seeks to guide the procuring entity on the activities at each stage.

All staff shall ensure that their procurement requisitions are prepared and
approved by the relevant authority before commencement of the procurement
process. A procurement requisition shall be in the form of a hard copy or an
electronic one. The approval levels for requisitions may vary from one
institution to another and shall be clarified in the procurement manuals for
procuring entities. The requisition forms for use by all staff shall be approved
by the management and will be part of the annex in the entity’s procurement
manual.

A procurement requisition shall serve the following purposes:
(1) Documenting the goods, works, or services required;
(2) Confirming the availability of funding, based on the estimated value of

the procurement requirement;
(3) Confirming that goods cannot be obtained from stores, where

appropriate; and
(4) Documenting the approval to proceed with the procurement.
4.4 The procurement stages

The stages shown in Figure 1 below are only indicative and the procuring entity
may expand them to suit its needs, but is not allowed to skip any
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Figure 4: Procurement Stages
The above The above indicative procurement cycle stems from the
procuring entity. The vertical, upward facing arrow shows the starting
point at identification of the needs; then arrows move clockwise to various
stages indicating process movement towards realization of the
procurement. The arrows lead to the final stage of acceptance and final
statement by the procuring entity on the service rendered. The above
indicative procurement cycle is further broken into smaller steps with
guidelines for a specific process as shown in the table below. The staff of
the procurement unit in the procuring entities shall be expected to refer to
the appropriate steps in this manual or make appropriate changes in their
respective manuals to customize it to their specific needs. Since the
procurement process differs for each method and type of procurement, a
combination of procedures may apply.
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Table 5: The Procurement Stages
 Procurement o Description of
Planning requirements
 Requisitioning
o Selection of a procurement
method
 Pre-qualification
 Expression of Interest
 Preparation of Invitation Notice
 Preparation of bidding document
 Publication of notices or request for quotation.
 Issue of documents
 Pre-bid meetings and site visits
 Responding to bidder requests for clarifications
 Bid receipt
 Bid opening
 Evaluation for good non-consultancy services and
works
 Evaluation for consultancy services
 Post-qualification and due diligence process
 Negotiation
 Cancellation of procurement proceedings
 Provisional notifications;
 Contract documents and purchase orders
 Contract award notices/ publication
 Debriefing unsuccessful bidders /consultants
 Administrative review
 Contract administration
 Contract extension
 Contract amendments
 Contract completion
 Contract termination
 Compilation of a list of items for disposal,
 valuation of assets, and
 disposal of assets
 Records management
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4.5 Procurement Planning and Initiation
A procuring entity shall prepare a procurement plan. This can be an annual
procurement plan or it may cover a specified period deemed as appropriate by
the entity. In the case of entities that procure goods or services for the purpose
of implementing projects for other institutions, the procedures outlined here
may not apply since it is not feasible to predict the kind of projects to be
implemented ahead of time. In such cases, internal arrangements shall be put
in place on how to execute procurement contracts depending on the agreement
between executor and client.
4.6 Procedure for Procurement Planning

(1) At the beginning of each fiscal or financial year the procurement unit
collects the departmental work plans, containing various activities that
require implementation by the end users as per the set budget.
(2) The procurement unit shall consolidate all the work plans, submit them
to the head of the company for onward transmission to the board for
approval.
(3) During the course of implementation the Procurement Plan may be

revised or updated to suit current requirements of the procuring entity.
The revision may include addition of new activities, change of dates,
scope reduction, change of the procurement method, and any other
issues as shall be deemed appropriate by the procuring entity. The
revised procurement plan revision/update shall require approval from
the Board.
(4) The procuring entities shall desist from processing un-planned tenders.
Any unplanned tenders or procurement methods shall require approval
from the head of the procuring entity or Board of Directors, depending
on the provisions of the specific Procurement Manual of the procuring
entity, prior to their execution
4.7 Thresholds for requisitions and approval

(1) The requisition tendering process of an activity that is not in the
approved procurement plan shall require approval from the head of the
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procuring entity or other relevant authority depending on the
organizational structure of the entity.
(2) Procuring entities shall set their own thresholds in their procurement
manuals regarding the approval levels for procurement requisitions. A
case in point, depending on the size of the procuring entity, a threshold
falling less than 2% of the annual budget can be approved by the Head
of the Company. A single purchase taking 25% of the annual budget of
the procuring entity shall require Board approval. Any amount reaching
10% of the procuring entity’s share capital will require shareholders’
approval.
4.8 Required documents

A user department will prepare and submit a requisition to the procurement
unit or other office charged with procurement function. The procurement unit
shall open a procurement file for the requisition, but the user department shall
also be required to keep a copy of the same document for its own records. The
requisition form shall contain, but will not be limited to, the following
information:
(1) The name of the user department raising the requisition and the contact
name;
(2) A list of the goods, works or services required, including technical

specifications, quantities and units of measure, or terms of reference
depending on the type of procurement to be initiated;
(3) Estimated units and total value for each item where applicable;
(4) Location for delivery or performance of the goods, works, or services;
(5) Date or dates of delivery, completion, or performance of the goods, works

or services;
(6) Confirmation of availability of funding. The finance office may be one of

the signatories on the requisition to confirm availability of funds;
(7) Confirmation that the items are not available from the company stores,
where appropriate; and
(8) Approval to proceed with the procurement.
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4.9 Key control mechanisms
(1) The requisition form shall be approved by the appropriate heads or
personnel in accordance with the organizational structure of the
procuring entity.
(2) Confirmation of the need for goods, works, or services listed on the
requisition form and approval to proceed with the procurement process
by the respective Head of Department or other authorized personnel in
accordance with the organizational structure of the procuring entity.
(3) The overall requisition form shall be approved by the head of the
procuring entity or other authorized personnel depending on the
thresholds set in the specific procurement manual of the procuring
entity.
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PART FIVE: DEBARMENT/BLACKLISTING OF
BIDDERS
5.1 Introduction
This part presents necessary conditions for blacklisting bidders from
participation in bidding within government controlled companies. A bidder may
be blacklisted or debarred from participation in the procurement process
subject to the manifestation of the following conditions. The debarment period
proposed in this manual is only indicative and may be adopted or amended by
the procuring entity.
5.2 Conditions for Debarment/Blacklisting a bidder

A bidder shall be blacklisted by a procuring entity under any of the following
circumstances:
(1) Providing false information in the process of submitting a bid or

prequalification application. In that case, the debarment shall take effect
for a maximum period of three (3) years;
(2) Collusion between the bidder and an official from the procuring entity
concerning the development of terms of reference or bidding document,
or connivance to interfere with the participation of competing bidders.
In that case, the debarment shall take effect for a maximum period of
four (4) years;
(3) Fraudulent pricing and connivance to interfere with fair participation of
competing bidders. In that case, the debarment shall take effect for a
maximum period of four (4) years;
(4) A breach of the law in order to obtain a contract or subcontract. In that
case, the debarment shall take effect for a maximum period of four (4)
years;
(5) Poor or non-performance of a procurement contract for reasons not
linked with the procuring entity. The debarment period will take effect
for a maximum period of three (3) years;
(6) Procuring entities have the right to reject a bid from any bidder who is
under debarment by any entity within or outside Rwanda. Recidivism
(recurring offence) shall lead to indefinite debarment.
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5.3 Procedure for Debarment
(1) A debarment procedure shall be initiated by the procurement unit,
Internal Tender Committee, or Head of the procuring entity.
(2) The debarment of firms shall be processed by the IRP; The IRP shall seek
information from all relevant parties after receiving instructions to begin
a debarment process. The final decision to debar a firm will be made by
the IRP after an exhaustive review of information.
(3) The decision by the IRP shall be final and will not be subject to further
appeal by the bidders. The debarred bidder shall be informed in writing
about the outcome of the deliberations by the IRP.
(4) A procuring entity shall publish a list of the debarred entities on its
website immediately after debarment and in at least one newspaper of
wide circulation.
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PART SIX: DEVELOPING TECHNICAL
SPECIFICATIONS FOR GOODS, NON-
CONSULTANCY SERVICES AND BILLS OF
QUANTITIES FOR WORKS

The technical specifications of the procurement needs shall be prepared by the
end user and the documents duly signed by the personnel responsible for their
preparation. The documents shall be presented in the form of an attachment
to the requisition for procurement.

The technical specifications document is a key document that is required
throughout the procurement process. Its uses include:
(1) Provide the Procurement Unit and the Internal Tender Committee with
details of what the user department needs to procure;
(2) Inform bidders of the procuring entity’s requirements through inclusion

in the bidding document or other document types issued to the bidder;
(3) Provide the technical standards for the evaluation of bids;
(4) Form part of the contract by defining the goods to be supplied;
(5) Set the technical standards against which the goods supplied can be
inspected prior to acceptance; and
(6) Avoid sub-standard supplies and hence enhance value for money.
6.3 Required Procedures

(1) Let the end user/beneficiary department raise a requisition.
(2) Begin with a general or summary specification (e.g., pick-up double

cabin).
(3) Prepare a complete list of the items required (see 6.4 for details).
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(4) Consider the purpose for which the goods are being purchased and any
special requirements (e.g., pick-up double cabin will be used by different
offices for fieldwork in and out of the city).
(5) Prepare specifications for each item required – (see 6.5 for further
details).
(6) Prepare the required delivery schedule – (see 6.6 below for further
details).
(7) Have the Head of the procuring entity sign the requisition. This function
can also be performed by any other authorized personnel in accordance
with the organizational structure and approval limits as per the
specifications contained in the approved procurement plan and budget
estimate.
(8) Have the Head of Finance or a representative also endorse the

requisition to confirm availability of funds to finance the project, budget
lines, or other possible sources.
(9) Forward the approved requisitions together with the description of

requirements to the procurement unit (or any other office with
procurement functions in its responsibility) to initiate the procurement
process. The procurement unit or its equivalent shall determine the
appropriate procurement method to apply depending on the
requirements of the procurement manual of the procuring entity.
6.4 Preparing a List of Goods

(1) The list of goods shall contain a brief description of each item required,
the user department and the quantities of each. The list of goods shall
also describe any incidental works or services required, such as
installation and commissioning, preparation of the site for installation,
or any subsequent user training.
(2) Each item shall be numbered sequentially on the list for reference
purposes. Along with the quantities, the unit of measure shall also be
specified (e.g., kilograms, litres, reams, pieces, packets, pairs, etc.)
6.5 Setting Specifications
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(1) Item specifications shall define the technical characteristics and quality
standards of goods required by the procuring entity. Well-prepared
specifications will facilitate the preparation and evaluation of bids.
(2) Where required, the procuring entity shall seek technical advice from
external specialists/consultants in preparing specifications.
(3) A specification shall contain a complete, precise, and unambiguous

description of the supplies required and shall include the following
information where appropriate:
(a) A clear definition of the scope of the proposed purchase;
(b) The purpose and objectives of the proposed purchase;
(c) A full description of the requirement;
(d) A generic specification to an appropriate level of detail;
(e) A functional description of the qualities, including any

environmental or safety features, required of the subject of the
procurement;
(f) Performance parameters, including outputs, timescales, and any

indicators or criteria by which the satisfactory performance of the
specification can be judged;
(g) Process and materials descriptions;
(h) Dimensions, symbols, terminology, language, packaging, marking,

and labelling requirements; and
(i) Any other relevant industry standard.
(4) In circumstances where an item cannot be adequately described, the

use of samples shall be acceptable. In such cases, all the potential
suppliers shall be accorded equal opportunity to examine the sample
before submitting their offers.
(5) No specification shall be issued by making reference to a particular

trademark, brand name, patent, design, type, specific origin, producer,
manufacturer, codes or numbered item. Exceptions will be made where,
for compatibility purposes, the purchase has to be made from the
previous vendor (for example, in the case of procurement of compatible
spare parts) or specific medicines
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(6) In cases where there is no other way of describing an item other than by
making reference to the above prohibitions, the word “or equivalent”
shall be added in order to make the procurement process
accommodative.
6.6 Delivery Schedule

The delivery schedule shall specify the delivery period and place for all the
goods. Where any related works or services are included, the delivery schedule
shall also state the completion period of the related works or services and the
site. The following guidance shall be taken into account when preparing the
delivery schedule:
(1) The delivery and completion periods shall be realistic. Unrealistically

short delivery or completion expectations may result in restricted
competition or prompt complaints from prospective bidders. The
contract shall specify if partial delivery is acceptable. If the contract does
not allow, then the receiving teams shall not accept the partial delivery
of goods.
(2) The delivery and completion periods are best expressed in the form of
number of days, weeks, or months from the date of contract award, as
precise dates cannot be determined until the contract has been placed.
(3) The delivery period shall take into account whether the procurement
entails standard, readily available goods or those which are likely to be
manufactured.
(4) Where appropriate, different delivery periods shall be given for different
items or the total requirement shall be split into several batches with
phased deliveries
(5) The delivery period shall take into account whether the goods are likely
to be available in Rwanda or require importing. Where the goods are
likely to be sourced internationally, the location of the goods and likely
transport times shall be considered.
6.7 Documents required during goods delivery

The following documents required during the delivery of goods are simply
indicative and may vary depending on the nature of the contract or specific
situation:
(1) A copy of the contract or the purchasing order;
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(2) Original invoice(s);
(3) Goods Received Note, Goods Delivery Note, and any other document as
may be agreed in the contract or other agreement between the two
parties.
Note: every step above is a requirement to the end user intending to procure at
any time.
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PART SEVEN: PREPARATION OF SCOPE OF
WORKS AND BILL OF QUANTITIES
7.1 Introduction
The scope of works and bills of quantities are applicable to tenders for works.
End users drawing specifications for scope of work and bill of quantities shall
do so at the same time of preparing the requisitions.

The SoW or BoQs are key documents which are used throughout the
procurement process. The documents serve the purposes of:
(1) Informing the Procurement Unit (or any other office with procurement
function) and the Internal Tender Committee about the procurement
needs of the procuring entity;
(2) Inform bidders about the procuring entity’s requirements through

inclusion in the bid document or other documents issued to bidders
when soliciting for bids;
(3) Provide the technical standard and, for some requirements, the
estimated quantities against which bids are evaluated;
(4) Form part of the contract, defining the works to be performed and the
technical standard against which the works can be inspected prior to
acceptance;
(5) Provide for some type of contracts, the rates and estimated quantities
against which actual work is measured for payment purposes.
7.3 Recommended Procedures

These guidelines constitute the procedure for preparing SoW and BoQs for the
procurement of works, including any incidental goods or related services.
The procedures are as follows:
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(1) Start with a general or summary SoW or BOQs (e.g., renovation of
washrooms on 2nd Floor etc.) This will then be developed into a design
brief for the engineer.
(2) Prepare the drawings and specifications for the works.
(3) Prepare a bill of quantity and activity schedule
(4) Prepare the required completion schedule.
(5) Prepare an overall scope of works, which will form the first part of the
description of requirements.
(6) The requisition shall be signed by the head of the procuring entity or
any other authorized personnel in accordance with the organizational
structure of the procuring entity.
Note: Alternative specialist advice shall be sought for the preparation of a

description of requirements for design and build or turnkey contracts.
7.4 Drawings for Works

Technical drawings are required to define the works required by the procuring
entity. The construction drawings shall be fully developed to show sufficient
detail to enable bidders understand the type and complexity of the work
involved and to also price their bids. In addition to the construction drawings,
a simplified map showing the geographical location shall be vital where
applicable.
7.5 Technical Specifications for Works

A set of precise and clear specifications is a prerequisite for bidders to respond
realistically and competitively to a procuring entity’s requirements without
qualifying or conditioning their bids. Specifications shall be drafted to permit
the widest possible competition and, at the same time, present a clear
statement of the required standards of workmanship, materials, and
performance of the related goods and services to be procured. This shall be
done to ensure economy, efficiency, and fairness in procurement;
responsiveness of bids; and bid evaluation. The following factors will be
considered when preparing specifications:
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(1) All goods and materials being incorporated in the works shall have the
following features: new, unused, most recent or current models, and
recent improvements in design and materials unless provided otherwise
in the Contract.
(2) Due care shall be taken to ensure that specifications are not restrictive.
In the specification of standards for goods, materials, and workmanship,
recognized international standards shall be used as much as possible.
Where national, or other, standards are used, the specifications shall
state that goods, materials, and workmanship that meet other
authoritative standards, and which ensure substantially equal or higher
quality than the standards mentioned, will also be acceptable.
(3) In case of spare parts, additions, maintenance of existing systems,
engines or any product upgrade, trouble shooting, testing, and analysis,
the procuring entity may use brand names, trade names, etc.
7.6 Bills of Quantities

A bill of quantities shall be prepared for inclusion in the bid document or any
other document issued to the contractor for the purpose of soliciting for bids,
where the requirement is a unit price contract (for lump sum contracts, see
guidance note 4 below).
Bidders shall be required to price the bill of quantities in their bids so that the
priced bill of quantities becomes part of the contract.
Payments shall be made using the rates provided in the priced bill of quantities
as per the quantity of work actually performed and which will be measured on
a regular basis.
The bill of quantities shall serve the following purposes:
(1) Provide sufficient information about the quantities of works to be

performed to enable the efficient and accurate preparation of bids.
(2) Provide a priced bill of quantities for use in the periodic valuation of
works executed once a contract has been entered into.
(3) In order to attain these objectives, works shall be itemized in the bill of
quantities in sufficient detail to distinguish between the different classes
of works, or between works of the same nature carried out in different
locations or circumstances, all of which may give rise to different cost
considerations. `
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7.7 Activity Schedule
(1) An activity schedule shall be prepared for inclusion in the bidding
document or any other document issued to bidders for the purpose of
soliciting for bids, where the requirement is a lump sum contract (for a
unit price contracts, see guidance note 3 above).
(2) Bidders shall be required to bid a lump sum price based on the activity
schedule. The successful bidder’s bid price shall become the contract
price.
(3) Price negotiations and/or other terms of the contract may be carried out
where deemed necessary in accordance with the negotiation approach
contained in the procuring entity’s specific procurement manual.
(4) The objective of the activity schedule shall be to provide a breakdown of

the activities and their associated cost, which will form the works to be
paid for on a lump sum basis. The breakdown is intended for use as
follows:
(a) As the basis for certifying interim payment to the contractor; and
(b) Assist in valuing any ordered variations.
(5) The works shall be broken down based on the nature of each activity,
and if applicable by location. A procuring entity shall determine the
degree to which the works need to be broken down based on their
complexity stated time for completion.
(6) Separate schedules can be provided for each discrete element of the
works. If the works require plant and equipment to be provided, separate
schedules for the supply of the plant and equipment only shall also be
provided.
7.8 Completion Schedule

The completion schedule shall specify the completion period and site for each
part of the works. The following guidance shall apply during when preparing
the completion schedule:
(1) The completion periods shall be realistic because unrealistically short

completion periods may result in restricted competition or prompt
complaints from prospective bidders.
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(2) The completion periods shall be expressed in the form of number of
days, weeks or months from the date of contract award or any other date
agreed upon between the two parties.
7.9 Records Required

A copy of the SoW or BOQs shall be attached to the requisition form for filing
in the procurement file. The user department shall retain a copy of the
requisition and a description of the requirements for reference.
7.10 Key Control Processes

The heads of the respective departments and directorates shall confirm their
approval of the SoW or BoQs by appending their signatures on the SoW or BoQs
document.
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PART EIGHT: DEVELOPING TERMS OF
REFERENCE FOR SERVICES
8.1 Introduction
Terms of reference (TOR) define the purpose and structure of a project. It is a
responsibility of the procuring entity to develop terms of reference for required
services.

(1) Developing a clear and elaborate Terms of Reference (ToR) is a vital step
in managing a high-quality evaluation. ToRs provide an important
overview of what is expected in an evaluation.
(2) The specific content and format for a ToR shall vary according to
organizational requirements, local practices, and type of assignment.
(3) The description of the Terms of Reference (ToR) shall be prepared at the
stage of preparing the procurement requisition.

This guideline provides the procedure for preparing terms of reference for the
procurement of consultancy services. The Terms of Reference is a key
document, which is used throughout the procurement process of a consultancy
contract and serves the following functions:
(1) Inform the Procurement Unit and Tender Committee about the
procurement needs of the user department;
(2) Inform consultants about the procuring entity’s requirements through

inclusion in the request for proposals document (RFP);
(3) Provide the terms of reference against which bids or proposals shall be
evaluated;
(4) Form part of the contract by defining the services to be supplied; and
(5) Set the technical standard and/or deliverables against which the
services performed can be judged and measured before approval.
8.4 Procedures
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(1) Start with a general or summary description of the requirement (e.g.,
preparation of financial policies and procedures).
(2) Prepare detailed ToR for the services – (see 8.5 below for the information
to include for consultancy and other services respectively).
(3) Send the description of requirements, along with the requisition, to the
Procurement Unit or any other office with a procurement function in its
mandate to initiate procurement process.
8.5 ToR for Consultancy Services

(4) The ToR for consultancy services shall be provided in sufficient detail to
enable consultants understand the services required by the procuring
entity and will also be complete, precise, and clear.
(5) Well-prepared terms of reference will facilitate the preparation of

proposals by consultants and the evaluation of bids by the procuring
entity.
(6) The precise contents of the ToR shall be determined and will vary
between assignments. The following elements of the ToR are indicative
and may vary depending on the nature of the assignment and the
requirements of the procuring entity:
(a) A brief description of the procuring entity;
(b) Purpose/objective of the assignment and what it is expected to

achieve;
(c) A description of the scope of the services required;
(d) Location(s) for performance of the services (e.g., specify the address
where services are to be performed);
(e) Role, qualifications and experience of any key staff required;
(f) Duration of the contract or expected completion date;
(g) Any facilities, services, or resources that the procuring entity shall
be required to provide;
(h) Arrangements for reporting to the procuring entity, including lines

of communication and the contact point for management and
administration of the assignment;
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(i) Specific deliverables required (such as study, inception, interim,
draft and/or final reports including schedules for such reports);
(j) Transfer of knowledge or training programs where applicable;
(k) Any other details or requirements relevant to the assignment.
8.6 Records Required

A copy of the ToR shall be attached to the procurement requisition form for
filing. The user department shall retain a copy of the requisition and ToR for
reference and follow up.
8.7 Next Steps

(1) The user department shall send the complete procurement requisition
approved by the head of the procuring entity to the procurement unit.
(2) The procurement unit shall proceed to select the appropriate

procurement method and conduct the bidding process.
8.8. Control Processes

The heads of the respective departments or directorates shall confirm their
approval by appending their signatures on the ToRs document.
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PART NINE: METHODS OF PROCURING GOODS,
NON CONSULTANCY SERVICES AND WORKS

All staff members shall comply with the following general principles:
(1) An appropriate procurement method shall be identified for all

procurement conditions and circumstances as indicated in the specific
procurement manual of the procuring entity. In case the procuring
entity does not have its customised manual, it shall refer to and follow
the guidance from CSOPF.
(2) There shall be transparency, fairness, non-discrimination, and

competition in all procurement activities without compromising value
for money.

Selecting the appropriate procurement method for a given situation so as to
attract the right bidders, enhance efficiency, and carry out a fair evaluation of
the bids.
9.3 Responsibility
The procurement unit or any other office with procurement function in its
mandate shall have the overall responsibility of providing guidance and
selecting the appropriate procurement method.
9.4 Procedures
(1) The procuring entity shall use the procurement methods specified in its
procurement manual (see requirement No 1 for details).
(2) The choice of a procurement method shall depend on the following

elements:
(a) Estimated value of what needs to be procured; or
(b) Circumstances under which the procurement is being requested.
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(3) The estimated value of the requirement shall be the main criterion for
determining the choice of procurement method in accordance with the
thresholds, but the circumstances of the requirement to procure may be
used as an additional criterion.
(4) The time lines for advertisement shall be based on the method of
procurement selected.
9.5 Procurement Methods

(1) Open Competitive Bidding
(a) Open domestic bidding shall be used to obtain the maximum

possible competition and value for money. Nothing shall prevent
a foreign or international bidder from participating in open
national competitive bidding.
(b) Open international competitive bidding (ICB) is a procurement

method which is open to participation on equal terms by all
providers, through advertisement of the procurement opportunity
in the international newspapers, magazines and journals, and
which specifically seeks to attract foreign providers. Open
international competitive bidding is used to obtain the maximum
possible competition and value for money, where national
providers may not necessarily make this achievable.
(c) The procuring entities shall set thresholds for tenders to qualify
in either national competitive or international competitive bidding
categories. A procuring entity shall also specify the other
circumstances in which tenders shall be categorised as NCB or
ICB depending on the nature of the business. A procuring entity
shall set the number of days for advertisement and will ensure
bidders are given reasonable time to prepare their bids.
(2) Restricted Bidding
(a) Restricted national bidding entails obtaining bids by direct

invitation without open advertisement. Restricted national
bidding is used to obtain competition and value for money to the
extent possible, where the value or circumstances do not justify
or permit the open bidding procedure. In restricted tendering
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only bidders appearing in the Invitation to Bid (lTB) letter are
required to submit their offers.
(b) Restricted international bidding involves obtaining bids by direct

invitation without open advertisement and the invited bidders
include foreign providers. The procuring entity shall set the
threshold and circumstances under which a tender shall be
considered restricted.
(c) Procuring entities may proceed to use the restricted tendering

method under the following conditions:
(d) For procurement of items available only from a limited number

of suppliers or service providers;
(i) If the time and cost required to examine and evaluate a large
number of bids would be disproportionate to the value of
products;
(ii) If the goods/works/services are of highly complex or

specialized in nature.
(3) Request for Quotations
(a) The request for quotation method is a simplified procurement

method which compares price quotations obtained from a
number of providers.
(b) The quotation method shall be used to obtain competition and

value for money to the extent possible, where the value or
circumstances do not justify or permit open or restricted bidding
procedures. The quotation method shall be used for works, goods
and services.
(c) Procuring entities may resort to use the request for quotations
method in respect of goods, services, or works that are readily
available in the market and have standard specifications.
(d) Procuring entities may also resort to use the request for
quotations method for the procurement of goods, services, or
construction works if:
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(i) The contract is within the threshold set by the procuring
entity to use a request for quotation.
(ii) The goods, works, or services required have not been

captured in the existing framework contracts and yet they
are urgently required for the smooth operation of the
procuring entity.
(iii) Unexpected events or circumstances have arisen which

require immediate intervention irrespective of the cost.
(iv) The needed products are out of stock and recourse to

request for quotation would be deemed the most appropriate
procurement method regardless of the cost.
(v) The delivery schedule for supplies by the contracted entities

is taking longer than expected and yet the products of those
contracts are urgently required by the procuring entity.
(4) Single-source procurement
(a) A procuring entity may procure works, goods or services by

soliciting for a bid, proposal, or price quotation from a single
qualified bidder. The single source procurement method shall, as
much as, possible be discouraged because it is less competitive
and prone to abuse.
(b) Single-sourcing procurement may be used, however, in such

circumstances as listed below, which are only indicative as the
procuring entity could modify, add, or reduce the scope depending
on the nature of its business:
(i) Supplies (spare parts, accessories) that are the subject of

industrial property, which is, protected by patent rights.
(ii) The use and/or utilization of supplies that are conditioned

by the specificity or technical compatibility of equipment
available at the procuring entity.
(iii) In case of proven deficiency (failure) of the successful bidder

selected through other methods and the emergency nature
of the procurement demands.
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(iv) Specific purchases or contracts which are urgently required
for immediate impact on improving the quality of care and
the physical environment of the Company to meet the
public's expectations. In this case, approval shall be given
by senior management of the procuring entity or any other
authority in accordance with organizational chart.
(v) In case of additional works, goods, and services in respect of

the initial tender/contract value when these cannot be
technically separated from the initial tender.
(vi) Purchases from a sole manufacturer or Authorized Dealer of

the manufacturers.
(vii) Where there is a local manufacturer for specialized materials

and equipment that meets the procuring entity’s
requirements and standards.
(viii) In case of spare parts, additions, maintenance of existing

systems, engines or any product upgrade, trouble shooting,
testing, and analysis.
(ix) In situations of emergencies due to natural hazards or

political disasters including.
(x) Unforeseen circumstances without dilatory conduct on the

part of the procuring entity.
(c) For purposes of control in respect of single sourcing, the procuring

entity shall set approval thresholds in its specific procurement
manual or seek guidance from the Board in case of non-existent of
the same. For such thresholds to hold, the procuring entity shall
use the following guidelines:
(i) How much can be single sourced without seeking approval?
(ii) How much requires prior approval from the procuring entity’s
senior management?
(iii) How much requires prior approval from procuring entity’s

Board of Directors?
(d) In cases of justifiable emergencies that may directly affect

operations, a procuring entity shall take immediate action(s) and
inform the approving authority as soon as it is practically possible.
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(e) The user department shall at all times present a justification note
to the head of the procuring entity when seeking approval to apply
the single sourcing method and such justification shall include the
reasons for selecting one company or individual for tender award.
(5) Force Account
Specific procurement activities may be carried out using staff from

the procurement entity or other specialized organs as well as
equipment from the procuring entity or other public institution. This
method shall be used where:
(a) The quantities of work involved cannot be defined in advance.
(b) Works are small and scattered or they are required in remote
locations for which qualified construction firms are unlikely to
bid at a reasonable price.
(c) The work required should be done without disrupting ongoing

operations.
(d) There are emergencies needing prompt attention.
(e) The procuring entity is required to complete works delayed by the

contractor after written warnings to the contactor did not yield
any tangible results.
(6) Community Participation
(a) The beneficiary community may participate in the delivery of

services through provision of such kind of services as labour and
local materials among others. Community participation shall be
used for community-based projects and will be executed through
award of a procurement contract to the beneficiary community.
(b) A contract shall be signed between the two parties specifying the
obligations of each party.
(c) The procuring entity shall set thresholds for applying the
community participation method, but the value of the contract
may exceed this threshold if the contract is for making terraces,
anti-erosion trenches, or planting trees. In such cases, the
procuring entity may hire an expert to support the community in
the activities.
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(d) Community participation shall be used if it is established that
the method will contribute to the economy, create employment,
and involve the beneficiary community in supporting the project.
9.6 Methods of Selecting Consultancy Services

A procuring entity shall select consultants using the procedures outlined in
this section.
(1) Quality and Cost-Based Selection
The quality and cost-based selection (QCBS) method uses a competitive

process to choose from amongst shortlisted firms on the basis of quality
of the submitted proposal and the cost of services. Cost as a factor of
selection shall, however, be used judiciously. The relative weights for
the quality and cost parameters shall be determined for individual
cases depending on the nature of the assignment.
The QCBS process shall include the following steps:
(a) Preparation of the TOR;
(b) Preparation of a cost estimate, budget, and short-listing criteria;
(c) Advertising or request for expressions of interest (procuring entities

may instead opt to advertise a request for proposals (RFP)
depending on thresholds set in the procurement manual);
(d) Preparation of the short list of consultants;
(e) Preparation and issuance of the RFP (which shall include the Letter
of Invitation (LOI), Instructions to Consultants (ITC), the TOR, and
the proposed draft contract);
(f) Receipt of technical and financial proposals;
(g) Evaluation of technical proposals;
(h) Public opening of financial proposals;
(i) Evaluation of financial proposals;
(j) Final evaluation of quality and cost; and,
(k) Negotiations and award of contract.
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(2) Terms of Reference (TOR)
(a) The procuring entity shall be responsible for preparing the TOR
for the assignment.
(b) The TOR shall be prepared by a person(s) or firm specialized in

the area of the assignment.
(c) The scope of the services described in the TOR shall be

compatible with the available budget. The TOR shall define
clearly the objectives, goals, and scope of the assignment and
provide background information (including a list of existing
relevant studies and basic data) to facilitate the consultants’
preparation of their proposals.
(d) If transfer of knowledge or training is an objective, it shall be

specifically outlined along with details of the number of staff to
be trained, etc., to enable the consultants to estimate the
required resources.
(e) The TOR shall list the services and surveys necessary to carry
out the assignment and the expected outputs (for example,
reports, data, maps, surveys, etc.). However, the TOR shall not
be too detailed and inflexible so that competing consultants may
propose methodology and staffing options.
(f) Firms shall be encouraged to comment on the TOR in their

proposals. The PE and consultants’ respective responsibilities
shall be clearly defined in the TOR.
(3) Cost Estimate (Budget)
A carefully prepared cost estimate is essential for setting aside realistic

budgetary resources for a given task. The cost estimate shall be based on
the procuring entity’s assessment of the resources needed to carry out the
assignment including experts’ time, logistical support, and physical inputs
(for example, vehicles, laboratory equipment etc). Costs shall be divided
into two broad categories as (a) fee or remuneration (according to the type
of contract used) and (b) reimbursable items. The cost of experts’ time shall
be estimated based on a realistic assessment of required international and
241

national expertise. The RFP shall indicate the estimated level of experts’
time inputs or the estimated total cost of the contract, but not detailed
estimates such as fees.
(4) Short Listing of Consultants
(a) The procuring entity shall be responsible for preparing short lists
of consultants by giving priority to firms with the relevant
qualifications. Short lists shall have no limit, but if a procuring
entity fails to get qualified firms at the short listing stage, then
direct soliciting for interest from qualified firms may be the next
option. The latter decision may be based on the firm’s own
knowledge or assistance by other entities which have undertaken
a similar assignment.
(b) The short list may consist entirely of national consultants (firms
registered in the country) if the assignment is below the ceiling
established in the procurement entity’s Manual.
(c) For the purpose of establishing a short list, nationality of a firm

shall refer to the country in which it is registered or incorporated
or the nationality of its lead partner in the case of joint ventures.
(d) The short list shall consist of consultants of the same category
with similar business objectives, corporate capacity, experience
and field of expertise in addition to having undertaken
assignments of a similar nature and complexity. Government-
owned enterprises or institutions and not-for-profit organizations
(NGOs, universities, UN Agencies, etc.) shall not normally be
included in the same short list along with private sector firms,
unless they operate as commercial entities. This criterion shall
be indicated in the request for expression of interest (REOI).
(e) The short list shall not include individual consultants. If the
same firm is considered for inclusion in short lists of concurrent
assignments, the procuring entity shall assess the firm’s overall
capacity to perform multiple contracts before actually including
it in more than one short list.
(5) Request for Proposals (RFP)
The RFP shall include the following documents:
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(a) Letter of invitation
(b) Instructions to consultants and data sheet
(c) Terms of reference (TOR)
(d) Proposed contract type
The contract can be either one time purchase, framework contract or

indefinite quantity contract.
Unless modified by the procuring entity to suit specific objectives, the

following procedures shall be used in managing the request for
proposals:
(i) The procuring entity shall use the applicable RFPs with minimal
changes as necessary to address project-specific conditions.
Any changes to the RFP shall be introduced through the RFP
data sheet.
(ii) The procuring entity shall list all the documents included in the
RFP and may use an electronic system to distribute the RFP
provided that there is confidence in the adequacy of such a
system. If the RFP is distributed electronically, the procuring
entity shall ensure the security of the system to avoid
modifications.
(iii) The procuring entity shall ensure that the electronic

distribution of the RFP does not restrict access by short-listed
consultants.
(6) Letter of Invitation (LOI)
The LOI shall state the intention of the procuring entity to enter into
a contract for the provision of consulting services; source of funds;
client details; and date, time, and address for submission of
proposals.
(7) Instructions to Consultants and Data Sheet
(a) The ITC shall contain all the necessary information to help
consultants in preparing responsive proposals. It shall be aimed at
bringing as much transparency as possible to the selection
procedure by providing information on the following elements:
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evaluation process and evaluation criteria, weights of the factors
considered in the evaluation criteria, and minimum qualifying
score. The ITC shall indicate either an estimate of the key experts’
inputs to propose or leave it to the consultants to propose the
criteria.
(b) The ITC shall also specify the proposal validity period taking into
account the evaluation of proposals, decision on award,
management review, and finalization of contract negotiations.
(8) Receipt and Opening of Proposals
(a) The procuring entity shall allow adequate time for consultants to
prepare their proposals in accordance with the publication period
stated in the procurement manual. The time allowed shall depend
on the assignment, but will not be less than the publication period
contained in the entity’s procurement manual.
(b) The procuring entity may provide more time for consultants to
prepare their proposals in the case of assignments requiring the
establishment of a sophisticated methodology, preparation of
multidisciplinary master plans, and any other sophisticated
contract.
(c) During this interval, the procuring entity shall answer queries
from firms seeking clarification about the information provided in
the RFP. The procuring entity shall provide any such clarification
in writing and will copy the same to all firms on the short list
(those intending to submit proposals). Where necessary, the
procuring entity shall extend the deadline for submission of
proposals.
(d) Proposals shall be submitted using the PE’s officially recognised

method, including electronic submission, especially where PE’s
modes of communication permit doing so. It is encouraged that
where communication means at the PE permit use of electronic
method, the later shall be preferred to promote fairness and
transparency in the procurement process.
(e) The technical and financial proposals shall be submitted at the

same time in separate sealed envelopes to safeguard the integrity
244

of the process. No amendments to the proposals shall be accepted
after the deadline, but amended proposals may be submitted
before such a deadline.
(f) A committee of officials drawn by the procuring entity from the

relevant departments (technical, finance, and legal as will be
appropriate) shall open all the technical proposals received upon
expiry of the deadline for the submission of proposals at the
designated place as stipulated in the RFP. The committee shall
read aloud the names of the consultants that submitted
proposals, presence or absence of duly sealed financial envelopes,
and any other information deemed appropriate. During the
opening of technical proposals, in the presence of consultants
wishing to attend, the procuring entity shall neither reject nor
discuss the merits of any submitted proposal.
(g) All proposals received after the deadline shall be declared as late
and shall be returned promptly without opening.
(9) Clarification and Alteration of Proposals
Consultants shall neither be requested nor permitted to alter their

proposals in any way after the deadline for the submission of
proposals.
(10) Evaluation of Proposals
The evaluation of proposals shall be carried out in two stages based

on quality and cost. The evaluators of technical proposals shall not
have access to the financial proposals before completing the
evaluation at this stage. The evaluation shall be carried out in full
conformity with the provisions of the RFP.
(11) Evaluation of Technical Proposals
(a) The procuring entity shall ensure quality evaluation of technical

proposals as a guarantee to quality services. Each technical
proposal shall be evaluated by the tender evaluation committee
consisting of at least three and no more than seven members,
including qualified specialists in the sector of the assignment
under consideration. Each member of the evaluation committee
shall be required to declare and certify non-existence of conflict
of interest before being allowed to take part in the evaluation.
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(b) Members of the tender evaluation committee shall evaluate
proposals in accordance with the evaluation criteria specified in
the RFP, independently of each other, and without any external
influence from any person or entity. The RFP describes the
criteria for evaluation along with the relative maximum scores
and the minimum technical score below which a proposal will be
rejected as having been non-responsive. The indicative range for
the overall minimum technical score ranges between 70 and 90.
The maximum score for each criterion and the minimum overall
technical score shall be determined based on the nature and
complexity of the specific assignment.
(c) The criteria, at the minimum, shall include the following factors:
(a) consultant’s relevant experience for the assignment, (b)
quality of the methodology proposed, (c) qualifications of the key
experts proposed, (d) transfer of knowledge, if required in the
TOR, and (e) extent of participation of nationals among key
experts in the performance of the assignment if required. These
elements shall fall within the indicative range of scores specified
below.
Consultant’s specific experience: 0 to 10

Methodology: 20 to 50
Key experts: 30 to 60
Transfer of knowledge (where applicable): 0 to 10
Participation by national experts (where applicable): 0 to 10
Total: 100
(d) The procuring entity shall divide these broad criteria into sub-
criteria, and the latter shall then be scored on the basis of the
weights assigned to them. For example, methodology may
contain the sub-criteria as innovation and level of detail, but in
all cases the number of sub-criteria shall be confined to the
essentials.
(e) The procuring entity shall review the qualifications and

experience of the proposed key experts based on their curricula
246

vitae, which must be accurate, complete, and signed by an
authorized official of the consulting firm and the individual
proposed. The individuals shall be rated in the following three
sub-criteria, as considered relevant to the task:
(i) General qualifications: general education and training,

length of experience, positions held, previous
assignments as team expert, and experience
in developing countries among others;
(ii) Adequacy for the assignment: education, training, and

experience in the specific sector, field, and subject relevant
to the particular assignment; and
(iii) Experience in the region: knowledge of the local language,

culture, administrative system, and government
organization among others.
(f) Procuring entities shall evaluate each proposal on the basis of its
responsiveness to the RFP. A proposal shall be considered
unsuitable and will be rejected at this stage if it fails to comply
with important aspects described in the RFP. Technical proposals
containing any material financial information shall be declared
nonresponsive.
(g) A proposal shall be rejected for failure to achieve the overall

minimum technical score specified in the RFP. At the end of the
evaluation process, the procuring entity shall prepare a Technical
Evaluation Report using the standard form of evaluation report
or any other report acceptable to management. The report shall
substantiate the results of the evaluation and justify the total
technical scores assigned to each proposal by describing the
relative strengths and weaknesses of the proposals. Large
differences in the individual scores given to a proposal for the
same criterion or sub-criterion by different members shall be
addressed and a justification provided in the Technical
Evaluation Report.
(h) In the case of contracts that are subject to prior approval in

accordance with approval levels set in the procurement manual
for the procuring entity, the Technical Evaluation Report,
including the detailed evaluation sheets of each committee
247

member, shall be submitted to the approving authority for review
and a declaration of no objection. All records relating to the
evaluation, such as individual score sheets, shall be retained in
accordance with requirements of the procuring entity.
(12) Communicating with Bidding Consultants
Upon completion of the Technical Evaluation Report, the procuring

entity shall inform the consultants whose proposals fell below the
minimum qualifying technical score or were considered
nonresponsive to the RFP and TOR about the intention to return their
unopened financial proposals after completion of the tendering
process. The procuring entity shall inform each of the above
consultants about their overall technical score and details of the
scores obtained for each criterion and sub-criterion where applicable.
The consultants shall be allowed a period within which to lodge any
protests in accordance with the appeal mechanisms set out in the
procuring entity’s procurement manual. The procuring entity shall
simultaneously notify the consultants whose technical proposals
secured the minimum overall score.
(13) Evaluation of Financial Proposals
(a) The opening date for financial proposals shall be set to allow for
sufficient time in order for the consultants to attend. The
financial proposals shall be opened in the presence of
representatives of the consultants who choose to attend (in
person or online).
(b) The procuring entity shall read aloud and record the name of the
consultant, scores obtained in the technical evaluation (including
the breakdown by criterion), and total prices offered during
opening of the financial proposals. The procuring entity shall also
prepare the minutes of the opening meeting.
(c) The procuring entity shall evaluate and compare the financial
proposals in accordance with the following procedures.
(d) The technical proposal shall be evaluated, together with the

financial proposal, in order to make comparisons for final score.
The formula below (for combined score) shall be applied:
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S = Ts x TW% + Fs x FW%
Where:
S = Combined score (for QCBS)
TS = Technical score
FS = Financial score
TW = Weight of technical score percentage (70-90%)
FW = Weight of financial score percentage (10-30%)
TW+FW = 1 (Always)
Calculation of financial score:
Fs= (LfX100)/Fi
Where:
Lf = Lowest proposal
Fi = The proposal to be evaluated
The stated prices shall be converted to a single currency selected by the

procuring entity (local currency or fully convertible foreign currency) as
stated in the RFP. The procuring entity shall make this conversion by
using the selling (exchange) rates for the currencies as quoted by an official
source (such as the Central Bank). The rates offered by the National Bank
of Rwanda will be used in this case.
The bidder that scores highly in the combined score will be declared the
winner and awarded the notification pending the appeal from non-satisfied
bidders. In case none of the bidders appeals the decision, the procuring
entity will proceed to award final notification to the prospective winner and
proceed to contract negotiation, drafting and signature.
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PART TEN: OTHER METHODS OF SELECTING
CONSULTANTS
10.1 Introduction
(1) This section describes other methods of selecting consultants, other
than the Quality and Cost Based Selection method, and the
circumstances under which these methods are acceptable. These other
methods include a) selection under Fixed Budget, b) Least-Cost
Selection, c) Selection based on the Consultants’ Qualifications (CQS)
and d) Single-Source Selection (SSS). The QCBS is appropriate for the
following types of assignments:
(a) Complex or highly specialized assignments for which it is difficult

to define precise Terms of Reference (TOR) and the required input
from the consultants, and for which the client expects the
consultants to demonstrate innovation in their proposals (for
example, country economic or sector studies, multi-sector
feasibility studies, design of a hazardous waste remediation plant
or of an urban master plan, financial sector reforms);
(b) Assignments that have a high downstream impact and in which

the objective is to have the best experts (for example, feasibility
and structural engineering design of such major infrastructure
as large dams, policy studies of national significance,
management studies of large government agencies); and,
(c) Assignments that can be carried out in substantially different

ways, such that proposals will not be comparable (for example,
management advice, and sector and policy studies in which the
value of the services depends on the quality of the analysis).
(2) In QBS, the RFP may request submission of a technical proposal only
(without the financial proposal), or request submission of both
technical and financial proposals at the same time, but in separate
envelopes (two-envelope system). The RFP shall provide either the
estimated budget or the estimated time of key experts, specifying that
this information is given as an indication only and that consultants
shall be free to propose their own estimates.
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(3) If technical proposals alone were invited, after evaluating the technical
proposals using the same methodology as in QCBS, the Procuring
Entity shall ask the consultant with the highest ranked technical
proposal to submit a detailed financial proposal. The Procuring Entity
and the consultant shall then negotiate the financial proposal and the
contract. All other aspects of the selection process shall be identical to
those of QCBS.
(4) If consultants were requested to provide financial proposals initially

together with the technical proposals, safeguards shall be built in as
in QCBS to ensure that the financial proposal of only the selected firm
is opened and the rest returned unopened, after the negotiations are
successfully concluded.
10.2 Selection under a Fixed Budget (FBS)

This method is appropriate only when the assignment is simple and can be
precisely defined and when the budget is fixed. The RFP shall indicate the
available budget and request the consultants to provide their best technical
and financial proposals in separate envelopes, within the budget. The TOR shall
be particularly well-prepared to ensure that the budget is sufficient for the
consultants to perform the expected tasks. The RFP shall clearly indicate
whether the budget includes taxes or levies payable in the Borrower country,
and the price of any inputs provided by the client. The evaluation of all
technical proposals shall be carried out first as in the QCBS method. Proposals
that exceed the indicated budget shall be rejected. The consultant who has
submitted the highest ranked technical proposal among the rest shall be
selected and invited to negotiate a Contract.
10.3 Least-Cost Selection (LCS)

This method is generally appropriate for selecting consultants for assignments
of a standard or routine nature (audits, engineering design of noncomplex
works, and so forth) where well-established practices and standards exist.
Under this method, a “minimum” qualifying mark for the “quality” is
established. Proposals, to be submitted in two envelopes, are invited from a
short list. Technical proposals are opened first and evaluated. Those securing
less than the minimum qualifying mark are rejected, and the financial
proposals of the rest shall be opened. The firm with the lowest price shall then
251

be selected. Under this method, the minimum qualifying mark shall be
established.
10.4 Selection Based on the Consultants’

Qualifications (CQS)
This method may be used for small assignments or emergency situations
declared by the Procuring Entity and in accordance with rules of the PE’s
Procurement Manual for which the need for issuing an RFP, and preparing and
evaluating competitive proposals is not justified. In such cases, the Procuring
Entity shall prepare the TOR and obtain expressions of interest that include
information on their experience and qualifications, eventually through an REOI
as may be needed, from as many firms as possible, and at least three qualified
firms with relevant experience. Firms having the required experience and
competence relevant to the assignment shall be assessed and compared, and
the best qualified and experienced firm shall be selected. Only the selected firm
shall be asked to submit a combined technical and financial proposal and, if
such proposal is responsive and acceptable, be invited to negotiate a Contract.
Both technical and financial aspects of the proposal may be negotiated. If the
negotiations fail with the selected firm, the second ranked consultant shall be
resorted to and so forth. The minutes of negotiations shall be prepared and
signed by both parties.
10.5 Single-Source Selection (SSS)

Single-source selection of consultants does not provide the benefits of
competition in regard to quality and cost, lacks transparency in selection, and
could encourage unacceptable practices. Therefore, single-source selection
shall be used only in exceptional cases. The justification for single-source
selection shall be examined in the context of the overall interests of the
Procuring Entity.
Single-source selection may be appropriate in the following cases, and only if

it presents a clear advantage over competition: (a) for tasks that represent a
natural continuation of previous work carried out by the firm (see next
paragraph); (b) in exceptional cases, such as, but not limited to, in response to
natural disasters and for emergency situations; (c) for very small assignments;
or (d) when only one firm is qualified or has experience of exceptional worth for
the assignment.
252

ANNEXES
ANNEX 1: PROCURING ENTITY: PROCUREMENT

PLAN FORMAT
Financi Procurement Tender Tender Allocated Tender

al year plan No. Type Title Budget Method
253

ANNEX 2: THE BIDDING DOCUMENT FOR GOODS
AND RELATED SERVICES
This is a standard bidding document. It can be modified or customized to suit

the needs of the procuring entity.
COMPANY LOGO
[Indicate name of Procuring Entity]
Standard Bidding Document for Goods and Related Services
Title of the Tender: ………………………………………………….
Tender Reference Number: ………………………………………………….
Procurement Method: ………………………………………………….
Date of Issue: ………………………………………………….
254

PREFACE
(1) This Standard Bidding Document (SBD) has been prepared by Rwanda
Public Procurement Authority (RPPA) for use by the Procuring Entities
(PEs) for the procurement of goods. The procedures and practices
presented in this SBD have been developed to reflect the requirements
of the Public Procurement Procedures provided in the Law No 12/2007
of 27/03/2007 on public procurement as modified and completed by
the Law N°05/2013 of 13/02/2013 and the Ministerial Order No ……
establishing the public procurement procedures and Standard Bidding
documents. These procedures also reflect the best international
procurement practices.
(2) This SBD for the Procurement of Goods and Related services is suitable
for use under both National and International open tender. It is also
suitable for the National and International restricted tender.
(3) The SBD is comprised of three parts, namely: the Bidding procedures,
Supply requirements and the Contract.
(4) Before using this SBD, the user shall be familiar with the law on Public
Procurement and Implementing Regulations and shall read the User’s
manual which has been prepared to provide guidance to public officials
in the conduct of the procurement process.
SBD for Procurement of Goods and related Services
SUMMARY
PART 1 – BIDDING PROCEDURES
Section I. Instructions to Bidders (ITB)
This Section provides information to help Bidders prepare their bids.

Information is also provided on the submission, opening, and evaluation of
bids and on the award of Contracts. Section I contains provisions that are
to be used without modification.
255

Section II. Bid Data Sheet (BDS)
This Section includes provisions that are specific to each procurement and
that supplement Section I, Instructions to Bidders.
Section III. Evaluation and Qualification Criteria
This Section specifies the criteria to be used to determine the lowest

evaluated bid, and the Bidder’s qualification requirements to perform the
contract.
Section IV. Bidding Forms
This Section includes the forms to be submitted with the Bid namely: the
bid form, Price Schedules, Bid Security, the Manufacturer’s Authorization,
etc.
PART 2 – SUPPLY REQUIREMENTS
Section V. Supply Requirements
This Section includes the List of Goods and Related Services, the Delivery
and Completion Schedules, the Technical Specifications and the Drawings
that describe the Goods and Related Services to be procured.
PART 3 – CONTRACT
Section VI. General Conditions of Contract (GCC)
This Section includes the general clauses to be applied in all contracts. The
text of the clauses in this Section shall not be modified.
Section VII. Specific Conditions of Contract (SCC)
This Section includes clauses specific to each Contract that modify or

supplement Section VI, General Conditions of Contract.
256

Section VIII: Contract Forms
This Section includes the form for the Agreement, which, once completed,
incorporates corrections or modifications to the accepted bid that are
permitted under the Instructions to Bidders, the General Conditions of
Contract, and the Special Conditions of Contract.
The forms for Performance Security and Advance Payment Security, when
required, shall only be completed by the successful Bidder after Contract
award.
257

PART 1 – BIDDING PROCEDURES
TENDER NOTICE (TN) / INVITATION FOR BIDS (IFB)
Section I. Instructions to bidders, Bid Data Sheet (BDS)
General
Contents of Bidding Documents
Preparation of Bids
Submission and Opening of Bids
Evaluation and Comparison of Bids
Award of Contract
Section II. Bid Data Sheet (BDS)
Domestic Preference (ITB 33)
Evaluation Criteria (ITB 34.3 (d))
Multiple Contracts (ITB 34.6)
Postqualification Requirements (ITB 36.2)
Bidder Information Form
Joint Venture (JV) Partner Information Form
Bid Submission Form
Price Schedule Forms
Price Schedule: Goods Manufactured Outside Rwanda, to be imported
Price Schedule: Goods Manufactured Outside Rwanda, already imported
Price Schedule: Goods Manufactured in Rwanda
Price and Completion Schedule - Related Services
258

Bid Security (Bank Guarantee)
Manufacturer’s Authorization
PART 2 – SUPPLYING REQUIREMENTS
Notes for Preparing the Schedule of Requirements
List of Goods and Delivery Schedule
List of Related Services and Completion Schedule
Technical Specifications
Drawings
Inspections and Tests
PART 3 - CONTRACT
Section VI. General Conditions of Contract
Section VII. Special Conditions of Contract
Section VIII. Contract Forms
259

PART 1 – Bidding Procedure
Tender Notice (TN) / Invitation for Bids (IFB)
[Insert the title of the tender]
[Insert tender Number]
(1) The (Insert the name(s), of the Procuring Entity) (hereinafter called
“Client”) funded by (Insert the name(s), of the Funding agency) towards
the cost of (Insert the title of the Project). The Client intends to apply a
portion of the funds to eligible payments under the contract for which
this Bidding Document is issued.
(2) The [insert name of Procuring Entity] invites eligible bidders to submit
bids for the supply of [insert tender name] as indicated in detail in the
statement of Requirements.
(3) Tender Documents in both French and English may be obtained from
[indicate place] upon presentation of proof payment of a non-
refundable fee of [indicate amount in words and figures ] to Account
N° [indicate Account number] opened at [indicate name of bank].
(4) Tender Documents may be obtained on any working day from

[indicate place, date and time]
(5) All bids [insert “shall” or “shall not”] be accompanied by a [insert “Bid
Security” as appropriate and if required] of [insert amount in local
currency or an equivalent amount not exceeding 2 % of the estimated
budget, in a freely convertible currency.
(6) Enquiries regarding this tender may be addressed to [indicate title and
complete address of official in charge].
(7) Well printed bids, properly bound and presented in [indicate the
number of copies] one of which is the original must reach the [indicate
official responsible for receiving bids] at the address mentioned above
Not later than [indicate date and time]. Late bids will be rejected and
returned unopened.
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(8) Bids will be opened in the presence of bidders or their representatives
who choose se to attend at [indicate place, date and exact time]
(9) The Outer envelope shall clearly indicate the tender name and title
(10) Bidding will be conducted in accordance with the Law N° 12/2007 of

27/03/2007 on Public Procurement as modified and completed to
date
[Indicate date and position of person signing the Notice].
Instructions to Bidders
Section I. Instructions to Bidders
A. General
1.0 Scope of Bid
(1) The Procuring Entity indicated in the Bidding Data Sheet (BDS),
issues these Bidding Documents for the supply of Goods and
Related Services incidental thereto as specified in Section V,
Schedule of Requirements. The name and identification number of
this (International or National) Competitive Bidding (ICB/NCB)
procurement are specified in the BDS. The name, identification, and
number of lots are provided in the BDS.
(2) Throughout these Bidding Documents:
(a) “Client/Procuring Entity” means the agency with which the

selected Consultant signs the Contract for the Services.
(b) “Contract” means the agreement between the Procuring Entity

and the successful bidder.
(c) “Data Sheet” means such part of the Instructions to Bidders

used to reflect specific assignment conditions.
(d) “Day” means calendar day.
(e) “Government” means the Government of the Republic of

Rwanda.
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(f) “Instructions to Bidders” (Sections I and II of the Bidding
Document) means the document which provides Bidders with
all information needed to prepare their Bids.
(g) “SBD” means the Standard Bidding Document, which must be

used by the Client as a guide for the preparation of the Bidding
Document.
(h) “Sub-Contractor” means any person or entity with whom the

Bidder subcontracts any part of the Supplies.
(i) The “lowest – evaluated bid” means a bid which is substantially

responsive and offers the lowest price.
2.0 Source of Funds
The Procuring Entity (hereinafter called “Client”) specified in the BDS has
received funds (hereinafter called “funds”) from the source of funds or
financing agency specified in the BDS toward the cost of the project
named in the BDS. The Client intends to apply a portion of the funds
to the payments under the contract for which these Bidding
Documents are issued.
3.0 Fraud and Corruption
(1) Rwanda Public Procurement Policy requires that all bidders,

suppliers, and contractors, their subcontractors and the procuring
entities representatives, observe the highest standard of ethics
during the procurement and execution of such contracts. In
pursuance of this policy, Rwanda Public Procurement Authority
defines, for the purposes of this provision, the terms set forth below
as follows:
(a) “Corrupt practice” means the offering, giving, receiving, or

soliciting, directly or indirectly, of anything of value to influence
a civil servant or Government entity.
(b) “Fraudulent practice” means any act or omission, including a

misrepresentation, that knowingly or recklessly misleads or
attempts to mislead a civil servant to obtain a financial or other
benefit or to avoid an obligation.
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(c) “Collusive practice” means arrangement between two or more
parties designed to achieve an improper purpose, including
influencing another party or the civil servant.
(d) “Coercive practice” means any act intending to harm or threaten

to harm directly or indirectly persons, their works or their
property to influence their participation in the procurement
process or affect its performance.
(e) “Obstructive practice” is:
(i) Deliberately destroying, falsifying, altering or concealing of

evidence material to the investigation or making false
statements to investigators in order to materially impede a
RPPA investigation into allegations of a corrupt, fraudulent,
coercive or collusive practice; and/or threatening,
harassing or intimidating any party to prevent it from
disclosing its knowledge of matters relevant to the
investigation or from pursuing the investigation; or
(ii) Acts intended to materially impede the exercise of the

RPPA’s inspection and audit rights provided for under sub-
clause 3.1 (e) below.
(2) Rwanda Public Procurement Authority will reject a proposal for

award if it determines that the bidder recommended for award has,
directly or through an agent, engaged in corrupt, fraudulent,
collusive, coercive or obstructive practices in competing for the
contract in question.
(3) Rwanda Public Procurement Authority will sanction a firm or

individual, including declaring ineligible, either indefinitely or for a
stated period of time, to be awarded a contract if it at any time
determines that the firm has, directly or through an agent, engaged
in corrupt, fraudulent, collusive, coercive or obstructive practices in
competing for, or in executing, a contract.
(4) Rwanda Public Procurement Authority will have the right to require
that a provision be included in bidding documents and in contracts,
requiring bidders, suppliers, and contractors and their sub-
contractors to permit the RPPA to inspect their accounts and records
and other documents relating to the bid submission and contract
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performance and to have them audited by auditors appointed by the
RPPA.
(5) Furthermore, Bidders shall be aware of the provision stated in Sub-

Clause 3.1 of the General Conditions of Contract.
4.0 Eligible Bidders
(1) Eligible bidders for public procurement are those who deal in
commercial activities and registered as businesses or those holding
professional licenses or exercising any liberal profession. Other
bidders eligible for public procurement are provided for in public
procurement regulations.
(2) To be eligible bidders may be required to prove that they are

members of a professional body or that they abide by any other
rules or procedures set by Rwanda Public Procurement Authority
in collaboration with stakeholders in public procurement.
(3) Participation is open on equal conditions to all Entities or persons

fulfilling the requirements herein except where:
(a) The bidder is currently blacklisted.
(b) The bidder has been prosecuted and found guilty in court,
including any appeals process on corruption charges.
(c) The bidder is bankrupt.
(d) The Bidder has been excluded in accordance with regional or

international conventions.
(4) This criterion shall also apply to the proposed subcontractors or

suppliers for any part of the Contract including Related Services.
(5) A Bidder shall not have a conflict of interest. All bidders found to
have conflict of interest shall be disqualified. Bidders may be
considered to have a conflict of interest with one or more parties in
this bidding process, if they:
(6) Are or have been associated in the past, with a firm or any of its
affiliates, for the preparation of the design, specifications, and other
documents to be used for the procurement of the goods to be
purchased under these Bidding Documents; or
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(7) Submit more than one bid in this bidding process, except for
alternative offers permitted under ITB Clause 13. However, this
does not limit the participation of subcontractors in more than one
Bid.
(8) A Bidder that is under a declaration of ineligibility by the RPPA in

accordance with ITB Clause 3, at the date of contract award, shall
be disqualified. The list of debarred firms is available at the website
specified in the BDS. Government-owned enterprises shall be
eligible only if they can establish that they:
(a) Are legally and financially autonomous.
(b) Operate under commercial law.
(c) Are not a dependent agency of the purchaser.
(d) Bidders shall provide such evidence of their continued

eligibility satisfactory to the Purchaser, as the Procuring Entity
shall reasonably request.
5.0 Eligible Goods and Related Services
(1) All the Goods and Related Services to be supplied under the
Contract may have their origin in any country.
(2) For purposes of this Clause, the term “goods” includes

commodities, raw material, machinery, equipment, and
industrial plants; and “related services” includes services such as
insurance, installation, training, and initial maintenance.
(3) The term “origin” means the country where the goods have been
mined, grown, cultivated, produced, manufactured or processed;
or, through manufacture, processing, or assembly, another
commercially recognized article results that differs substantially
in its basic characteristics from its components.
(4) Contents of Bidding Documents.
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6.0 Sections of Bidding Documents
The Bidding Documents consist of Parts 1, 2, and 3, which include all

the Sections indicated below, and shall be read in conjunction with
any Addendum issued in accordance with ITB Clause 8. Each page of
the bidding document shall bear the procuring entity’s stamp.
PART 1 Bidding Procedures
Section I. Instructions to Bidders (ITB)
Section II. Bidding Data Sheet (BDS)
PART 2 Supply Requirements
Section V. Schedule of Requirements
PART 3 Contract
Section VI. General Conditions of Contract (GCC)
Section VII. Special Conditions of Contract (SCC)
(1) The Invitation for Bids issued by the Procuring Entity is part
of the Bidding Documents.
(2) The Procuring Entity is not responsible for the incompleteness

of the Bidding Documents and their addendum, if they were
not obtained directly from the Purchaser.
(3) The Bidder is expected to examine all instructions, forms,

terms, and specifications in the Bidding Documents. Failure to
furnish all information or documentation required by the
Bidding Documents may result in the rejection of the bid.
(4) Administrative documents required to bidders shall refer to the

Laws in force in the bidders’ home country.
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7.0 Clarification of Bidding Documents
Any bidder may request in writing to the procuring entity, at its

address mentioned in the BDS, for clarifications on the bidding
document. The Procuring Entity shall respond to any request for
clarification within seven (7) days from the day of its reception. The
Procuring Entity shall communicate and forward, without disclosing
the source of the request for clarification, to all bidders the copies of
the clarifications that were given in response to the request by the
Procuring Entity. Should the Procuring Entity deem it necessary to
amend the Bidding Documents as a result of a clarification, it shall
do so following the procedure under ITB Clause 8 and ITB Sub-Clause
24.3.
8.0 Modification to the Bidding Documents
(1) Before the deadline for submission of bids, on its own initiative or
in response to bidders’ concerns, the Procuring Entity may modify
the bidding document by issuing addenda.
(2) Any addendum thus issued shall be part of the bidding document
and shall be communicated and forwarded in writing to all bidders
who had bought the bidding document and shall be made public
through the communication channel that the Procuring Entity
used to advertise the initial tender notice. Bidders who were given
copies of addendum after they had bought the bidding document
shall acknowledge receipt of each addendum in writing to the
Procuring Entity.
(3) To give prospective Bidders reasonable time in which to take an

addendum into account in preparing their bids, the Procuring
Entity may, at its discretion, extend the deadline for the
submission of bids, pursuant to ITB Sub-Clause 24.3.
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Preparation of Bids
9.0 Cost of Bidding
The Bidder shall bear all costs associated with the preparation and submission
of its bid, and the Procuring Entity shall not be responsible or liable for those
costs, regardless of the conduct or outcome of the bidding process. The
procuring entity shall not be liable for any consequences related to the rejection
of all bids or the cancellation of the procurement proceedings due to the
reasons provided for by the law on public procurement as modified and
completed to date, unless it is proved that it was a consequence of its
irresponsible conduct.
However, the Procuring Entity may charge a fee for obtaining copies of the
bidding documents determined by the procurement regulations. The cost of the
bidding document shall only be equivalent to the amount of money required to
cover costs of its reproduction and its distribution.
10.0 Language of Bid
The Bid, as well as all correspondence and documents relating to the bid
exchanged by the Bidder and the Purchaser, shall be written in the language
specified in the BDS. Supporting documents and printed literature that are
part of the Bid may be in another language provided they are accompanied by
an accurate translation of the relevant passages into the language specified in
the BDS, in which case, for purposes of interpretation of the Bid, such
translation shall govern.
11.0 Documents Comprising the Bid
(1) The Bid shall comprise the following:

(a) Bid submission form and Price schedules well printed and properly
organized.
(b) Copy of Trading License.
(c) Original or a certified copy of the Social Security certificate.
(d) Original or a certified copy of the tax clearance certificate.
(e) Bid security (if any).
(f) Declaration of commitment (if applicable).
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(g) Detailed description of the essential technical and performance
characteristics of the goods to be supplied establishing conformity
to technical specifications provided.
(h) Proof of purchase of tender document.
(i) Appropriate samples /catalogues (if required).
(j) A certificate of origin of the supplies and the manufacturer’s

authorisation.
(k) References of similar tenders executed (if required).
(l) Written confirmation authorizing the signatory of the Bid to commit

the Bidder.
(m) Any other information that the bidder considers important to the
award process as it may be indicated in the BDS.
(2) In case of a Joint Venture (JV), each member of the association shall
provide the documents stated in 11.1(b), (c), (d), (f) and (j).
12.0 Bid Submission Form and Price Schedules
(1) The Bidder shall submit the Bid Submission Form using the
form furnished in Section IV, Bidding Forms. This form must
be completed without any alterations to its format, and no
substitutes shall be accepted. All blank spaces shall be filled
in with the information requested.
(2) The Bidder shall submit the Price Schedules for Goods and
Related Services, according to their origin as appropriate,
using the forms furnished in Section IV, Bidding Forms.
13.0 Alternative Bids
Unless otherwise specified in the BDS, alternative bids shall not be considered.
14.0 Bid Prices and Discounts
(1) The prices and discounts quoted by the Bidder in the Bid Submission
Form and in the Price Schedules shall conform to the requirements
specified below.
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(2) All lots and items must be listed and priced separately in the Price
Schedules.
(3) The price to be quoted in the Bid Submission Form shall be the total
price of the bid, excluding any discounts offered.
(4) The Bidder shall quote any unconditional discounts and indicate the
method for their application in the Bid Submission Form.
(5) The INCOTERMS to be used shall be governed by the rules prescribed

in the current edition, published by The International Chamber of
Commerce, as specified in the BDS.
(6) Prices shall be quoted as specified in each Price Schedule included in

Section IV, Bidding Forms. The dis-aggregation of price components is
required solely for the purpose of facilitating the comparison of bids by
the Procuring Entity. This shall not in any way limit the Procuring
Entity’s right to contract on any of the terms offered. In quoting prices,
the Bidder shall be free to use transportation through carriers registered
in any country. Similarly, the Bidder may obtain insurance services from
any country. Prices shall be entered in the following manner:
(a) For Goods manufactured in Rwanda:
(i) The price of the Goods quoted EXW (ex-works, ex-factory, ex

warehouse, ex showroom, or off-the-shelf, as applicable),
including all customs duties and sales and other taxes already
paid or payable on the components and raw material used in
the manufacture or assembly of the Goods.
(ii) Any Rwandan sales tax and other taxes which will be payable
on the Goods if the contract is awarded to the Bidder.
(iii) The price for inland transportation, insurance, and other local
services required to convey the Goods to their final destination
(Project Site) specified in the BDS.
(b) For Goods manufactured outside Rwanda, to be imported:
(i) The price of the Goods, quoted CIP named place of destination,
in Rwanda, or CIF named port of destination, as specified in
the BDS;
(ii) The price for inland transportation, insurance, and other local
services required to convey the Goods from the named place of
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destination to their final destination (Project Site) specified in
the BDS;
(iii) In addition to the CIP prices specified in (b)(i) above, the price
of the Goods to be imported may be quoted FCA (named place
of destination) or CPT (named place of destination), if so
specified in the BDS.
(c) For Goods manufactured outside Rwanda, already imported:
[For previously imported Goods, the quoted price shall be

distinguishable from the original import value of these Goods
declared to customs and shall include any rebate or mark-up
of the local agent or representative and all local costs except
import duties and taxes, which have been and/or have to be
paid by the Purchaser. For clarity the bidders are asked to
quote the price including import duties, and additionally to
provide the import duties and the price net of import duties
which is the difference of those values].
(i) The price of the Goods, including the original import value
of the Goods; plus any mark-up (or rebate); plus any other
related local cost, and custom duties and other import
taxes already paid or to be paid on the Goods already
imported.
(ii) The custom duties and other import taxes already paid
(need to be supported with documentary evidence) or to be
paid on the Goods already imported.
(iii) The price of the Goods, obtained as the difference between

(i) and (ii) above.
(iv) Any Rwandan sales and other taxes which will be payable
on the Goods if the contract is awarded to the Bidder.
(v) The price for inland transportation, insurance, and other

local services required to convey the Goods from the named
place of destination to their final destination (Project Site)
(d) For Related Services, other than inland transportation and

other services required to convey the Goods to their final
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destination, whenever such Related Services are specified in
the Schedule of Requirements:
(i) The price of each item comprising the Related Services

(inclusive of any applicable taxes).
(ii) Prices quoted by the Bidder shall be fixed during the

Bidder’s performance of the Contract and not subject to
variation on any account, unless otherwise specified in the
BDS. A Bid submitted with an adjustable price quotation
shall be treated as non-responsive and shall be rejected,
pursuant to ITB Clause 30. However, if in accordance with
the BDS, prices quoted by the Bidder shall be subject to
adjustment during the performance of the Contract, a bid
submitted with a fixed price quotation shall not be rejected,
but the price adjustment shall be treated as zero.
(iii) If so indicated in ITB Sub-Clause 1.1, bids are being invited

for individual contracts (lots) or for any combination of
contracts (packages). Unless otherwise indicated in the
BDS, prices quoted shall correspond to 100 % of the items
specified for each lot and to 100% of the quantities
specified for each item of a lot. Bidders wishing to offer any
price reduction (discount) for the award of more than one
Contract shall specify the applicable price reduction in
accordance with ITB Sub-Clause 14.4 provided the bids for
all lots are submitted and opened at the same time.
15.0 Currencies of Bid
(1) The Bidder shall quote in Rwandan Francs the portion of the bid
price that corresponds to expenditures incurred in Rwanda
Francs, unless otherwise specified in the BDS.
(2) The Bidder may express the bid price in any freely convertible
currency. If the Bidder wishes to be paid in a combination of
amounts in different currencies, it may quote its price accordingly
but shall use no more than two currencies in addition to the
Rwanda Francs.
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(3) The rates of exchange to be used by the Bidder in arriving at the
local currency equivalent and the percentages mentioned in para.
15.1 above shall be the selling rates for similar transactions
established by Central Bank or any other authority specified in the
BDS prevailing on the deadline for submission of bids or on any
other date specified in the bidding document. These exchange
rates shall apply for all payments so that no exchange risk shall
be borne by the Bidder. If the Bidder uses other rates of exchange,
the provisions of ITB Clause 26.1 shall apply; in any case,
payments shall be computed using the rates quoted in the Bid.
16.0 Documents Establishing the Conformity of the Goods and Related

Services
(1) To establish the conformity of the Goods and Related Services to the
Bidding Documents, the Bidder shall furnish as part of its Bid the
documentary evidence that the Goods conform to the technical
specifications and standards specified in Section V, Schedule of
Requirements.
(2) The documentary evidence may be in the form of literature, drawings

or data, and shall consist of a detailed item by item description of the
essential technical and performance characteristics of the Goods and
Related Services, demonstrating substantial responsiveness of the
Goods and Related Services to the technical specification, and if
applicable, a statement of deviations and exceptions to the provisions
of the Schedule of Requirements.
(3) The Bidder shall also furnish a list giving full particulars, including
available sources and current prices of spare parts, special tools, etc.,
necessary for the proper and continuing functioning of the Goods
during the period specified in the BDS following commencement of the
use of the goods by the Procuring Entity.
(4) Standards for workmanship, process, material, and equipment, as well

as references to brand names or catalogue numbers specified by the
Procuring Entity in the Schedule of Requirements, are intended to be
descriptive only and not restrictive. The Bidder may offer other
standards of quality, brand names, and/or catalogue numbers,
provided that it demonstrates, to the Procuring Entity’s satisfaction,
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that the substitutions ensure substantial equivalence or are superior
to those specified in the Schedule of Requirements.
17.0 Documents Establishing the Qualifications of the Bidder
The documentary evidence of the Bidder’s qualifications to perform the contract

if its bid is accepted shall establish to the Procuring Entity’s satisfaction:
(4) That, if required in the BDS, a Bidder that does not manufacture or
produce the Goods it offers to supply shall submit the Manufacturer’s
Authorization using the form included in Section IV, Bidding Forms, to
demonstrate that it has been duly authorized by the manufacturer or
producer of the Goods to supply these Goods in Rwanda.
(5) That, if required in the BDS, in case of a Bidder not doing business
within Rwanda, the Bidder is or will be (if awarded the contract)
represented by an Agent in Rwanda equipped and able to carry out the
Supplier’s maintenance, repair and spare parts-stocking obligations
prescribed in the Conditions of Contract and/or Technical
Specifications.
(6) That the Bidder meets each of the qualification criterion specified in
Section III, Evaluation and Qualification Criteria.
18.0 Bids Validity Period
(1) ids shall remain valid for the period specified in the BDS after the bid
submission deadline date prescribed by the Purchaser. A bid valid for a
shorter period shall be rejected by the Procuring Entity as non-
responsive.
(2) In exceptional circumstances, prior to the expiration of the bid validity
period, the Procuring Entity may request bidders to extend the period of
validity of their bids. The request and the responses shall be made in
writing. If a Bid Security is requested in accordance with ITB Clause 19,
it shall also be extended for a corresponding period. A Bidder may refuse
the request without forfeiting its Bid Security.
19.0 Bid Security
(1) The Bidder shall furnish, as part of its bid, a Bid Security, if required,
as specified in the BDS.
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(2) The Bid Security shall be in the amount specified in the BDS and
denominated in Rwanda Francs or a freely convertible currency, and
shall:
(a) At the bidder’s option, be in the form of either a guarantee from a

banking institution or another authorised financial institution.
(b) Be issued by a reputable institution selected by the bidder and

located in any country. If the financial institution, other than a
bank, issuing the guarantee is located outside Rwanda, it shall
have a correspondent financial institution located in Rwanda to
make it enforceable.
(c) Be substantially in accordance with one of the forms of bid security

included in section iv, bidding forms, or other form approved by the
procuring entity prior to bid submission.
(d) Be payable promptly upon written demand by the procuring entity

in case the conditions listed in ITB clause 19.5 are invoked.
(e) Be submitted in its original form; copies will not be accepted.
(f) Remain valid for a period of 28 days beyond the validity period of
the bids, as extended, if applicable, in accordance with ITB Clause
18.2.
(3) If a Bid Security is required in accordance with ITB Sub-Clause 19.1,

any bid not accompanied by a substantially responsive Bid Security in
accordance with ITB Sub-Clause 19.1, shall be rejected by the Procuring
Entity as non-responsive.
(4) A bid security issued by a local institution to guarantee a bid that was
sent by a foreign bidder from his/her country before the bid submission
deadline, may be presented on the opening date and shall be considered
as part of that bid.
(5) The Bid Security of unsuccessful Bidders shall be returned as promptly

as possible upon the successful Bidder’s furnishing of the Performance
Security pursuant to ITB Clause 42.
(6) The Bid Security may be forfeited:
(a) If a Bidder withdraws its bid during the period of bid validity
specified by the Bidder on the Bid Submission Form, except as
provided in ITB Sub-Clause 18.2; or
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(b) If the successful Bidder fails to:
(i) Sign the Contract in accordance with ITB Clause 41;
(ii) Furnish a Performance Security in accordance with ITB Clause

42;
(c) If the successful Bidder refuses corrections of its financial offer
(7) The Bid Security of a Joint Venture (JV) must be in the name of the JV
that submits the bid.
(8) If a bid security is not required in the BDS, and
(9) If a Bidder withdraws its bid during the period of bid validity specified
by the Bidder on the Letter of Bid Form, except as provided in ITB 18
(2) or
(10) If the successful Bidder fails to: sign the Contract in accordance with
ITB 41; or furnish a performance security in accordance with ITB 42;
The Procuring Entity may, ask the RPPA to declare the Bidder
disqualified to be awarded a contract for a period of time pursuant to
the law on public procurement.
20.0 Format and Signing of Bid
(1) The Bidder shall prepare one original of the documents comprising the
bid as described in ITB Clause 11 and clearly mark it “ORIGINAL.” In
addition, the Bidder shall submit copies of the bid, in the number
specified in the BDS and clearly mark them “COPY.” In the event of any
discrepancy between the original and the copies, the original shall
prevail.
(2) The original and all copies of the bid shall be typed in indelible ink,
stamped and signed by a person duly authorized to sign on behalf of the
Bidder.
(3) Any interlineation, erasures, or overwriting shall be valid only if they are
signed or initialled by the person signing the Bid.
A. Submission and Opening of Bids
21.0 Submission, Sealing and Marking of Bids
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(1) Bidders may always submit their bids by mail or by hand.
(2) Bidders submitting bids by mail or by hand, shall enclose the original
and each copy of the Bid, including alternative bids, if permitted in
accordance with ITB Clause 13, in separate sealed envelopes, duly
marking the envelopes as “Original” and “Copy.” These envelopes
containing the original and the copies shall then be enclosed in one
single envelope. The rest of the procedure shall be in accordance with
ITB sub-Clauses 21.2 and 21.3.
(3) The envelopes containing the original and the copies shall be enclosed
in one single envelope:
(a) The inner envelopes shall bear the name and address of the Bidder.
(b) The outer envelopes must be anonymous and be addressed to the

Procuring Entity in accordance with ITB Sub-Clause 22.1.
(c) The outer envelopes must bear the specific identification of this
bidding process indicated in ITB 1.1 and any additional
identification marks as specified in the BDS.
(d) Bear a warning not to open before the time and date for bid opening,
in accordance with ITB Sub-Clause 25.1.
(4) If all envelopes are not sealed and marked as required, the Procuring
Entity will assume no responsibility for the misplacement or premature
opening of the bid.
22.0 Deadline for Submission of Bids
(1) Bids must be received by the Procuring Entity at the address and no
later than the date and time specified in the BDS.
(2) The Procuring Entity may, at its discretion, extend the deadline for the
submission of bids by amending the Bidding Documents in accordance
with ITB Clause 8, in which case all rights and obligations of the
Procuring Entity and Bidders previously subject to the deadline shall
thereafter be subject to the deadline as extended.
23.0 Late Bids
The Procuring Entity shall not consider any bid that arrives after the deadline
for submission of bids, in accordance with ITB Clause 22. Any bid received by
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the Procuring Entity after the deadline for submission of bids shall be declared
late, rejected, and returned unopened to the Bidder.
24.0 Withdrawal, Substitution, and Modification of Bids
(1) A Bidder may withdraw, substitute, or modify its Bid after it has been
submitted by sending a written notice in accordance with ITB Clause
21, duly signed by an authorized representative, and shall include a
copy of the authorization (the power of attorney) in accordance with ITB
Sub-Clause 20.2, (except that no copies of the withdrawal notice are
required). The corresponding substitution or modification of the bid
must accompany the respective written notice. All notices must be:
(a) Submitted in accordance with ITB Clauses 20 and 21 (except that

withdrawal notices do not require copies), and in addition, the
respective envelopes shall be clearly marked “Withdrawal,”
“Substitution,” or “Modification”.
(b) Received by the Procuring Entity prior to the deadline prescribed

for submission of bids, in accordance with ITB Clause 22.
(2) Bids requested to be withdrawn in accordance with ITB Sub-Clause 24.1

shall be returned unopened to the Bidders.
(3) No bid may be withdrawn, substituted, or modified in the interval

between the deadline for submission of bids and the expiration of the
period of bid validity specified by the Bidder on the Bid Submission Form
or any extension thereof.
25.0 Bid Opening
(1) The Procuring Entity shall conduct the bid opening in public at the
address, date and time specified in the BDS.
(2) Only envelopes that are opened and read out at Bid opening shall be
considered further.
(3) All other envelopes shall be opened one at a time, reading out: the
name of the Bidder and whether there is a modification; the Bid
Prices, including any discounts and alternative offers; the presence of
a Bid Security or Bid-Securing Declaration, if required; and any other
details as the Procuring Entity may consider appropriate. Only
discounts and alternative offers read out at Bid opening shall be
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considered for evaluation. No Bid shall be rejected at Bid opening
except for late bids, in accordance with ITB Sub-Clause 23.
(4) The Procuring Entity shall prepare a record of the Bid opening that
shall include, as a minimum: the name of the Bidder and whether
there is a withdrawal, substitution, or modification; the Bid Price, per
lot if applicable, including any discounts, and alternative offers if they
were permitted; and the presence or absence of a Bid Security, if one
was required. The Bidders’ representatives who are present shall be
requested to sign the attendance sheet. A copy of the record shall be
distributed to all Bidders who submitted bids in time, and posted
online when electronic bidding is permitted.
B. Evaluation and Comparison of Bids
26.0 Confidentiality
(1) (Information relating to the examination, evaluation, comparison, and

post-qualification of bids, and recommendation of contract award, shall
not be disclosed to bidders or any other persons not officially concerned
with such process until publication of the Contract Award.
(2) Any effort by a Bidder to influence the Procuring Entity in the

examination, evaluation, comparison, and post-qualification of the bids
or contract award decisions may result in the rejection of its Bid.
(3) Notwithstanding ITB Sub-Clause 26.2, from the time of bid opening to
the time of Contract Award, if any Bidder wishes to contact the
Procuring Entity on any matter related to the bidding process, it shall
do so in writing.
27.0 Clarification of Bids
To assist in the examination, evaluation, comparison and post-qualification of

the bids, the Procuring Entity may, at its discretion, ask any Bidder for a
clarification of its Bid. Any clarification submitted by a Bidder in respect to its
Bid and that is not in response to a request by the Procuring Entity shall not
be considered. The Procuring Entity’s request for clarification and the response
shall be in writing. No change in the prices or substance of the Bid shall be
sought, offered, or permitted, except to confirm the correction of arithmetic
errors discovered by the Procuring Entity in the Evaluation of the bids, in
279

accordance with ITB Clause 29. At his/her own initiative, a bidder may provide
clarifications on his/her bid but which shall not change its price or substance.
28.0 Responsiveness of Bids
(1) The Procuring Entity’s determination of a bid’s responsiveness is to be

based on the contents of the bid itself.
(2) A substantially responsive Bid is one that conforms to all the terms,
conditions, and specifications of the Bidding Documents without
material deviation, reservation, or omission. A material deviation,
reservation, or omission is one that:
(a) Affects in any substantial way the scope, quality, or performance of

the Goods and Related Services specified in the Contract.
(b) Limits in any substantial way, inconsistent with the Bidding

Documents, the Procuring Entity’s rights or the Bidder’s obligations
under the Contract.
(c) If rectified would unfairly affect the competitive position of other

bidders presenting substantially responsive bids.
(3) If a bid is not substantially responsive to the Bidding Documents, it

shall be rejected by the Procuring Entity and may not subsequently be
made responsive by the Bidder by correction of the material deviation,
reservation, or omission.
29.0 Non conformities, Errors, and Omissions
(1) Provided that a Bid is substantially responsive, the Procuring Entity may
waive any non-conformities or omissions in the Bid that do not
constitute a material deviation.
(2) Provided that a bid is substantially responsive, the Procuring Entity may
request that the Bidder submit the necessary information or
documentation, within a reasonable period of time, to rectify
nonmaterial nonconformities or omissions in the bid related to
documentation requirements. Such omission shall not be related to any
aspect of the price of the Bid. Failure of the Bidder to comply with the
request may result in the rejection of its Bid.
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(3) Provided that the Bid is substantially responsive, the Procuring Entity
shall correct arithmetical errors on the following basis:
(a) If there is a discrepancy between the unit price and the line item
total that is obtained by multiplying the unit price by the quantity,
the unit price shall prevail and the line item total shall be corrected,
unless in the opinion of the Procuring Entity there is an obvious
misplacement of the decimal point in the unit price, in which case
the line item total as quoted shall govern and the unit price shall
be corrected;
(b) If there is an error in a total corresponding to the addition or

subtraction of subtotals, the subtotals shall prevail and the total
shall be corrected; and
(c) If there is a discrepancy between words and figures, the amount in

words shall prevail, unless the amount expressed in words is
related to an arithmetic error, in which case the amount in figures
shall prevail subject to (a) and (b) above.
(d) If the Bidder that submitted the lowest evaluated Bid does not
accept the correction of errors, its Bid shall be rejected.
30.0 Preliminary Examination of Bids
(1) The Procuring Entity shall examine the bids to confirm that all
documents and technical documentation requested in ITB Clause 11
have been provided, and to determine the completeness of each
document submitted.
(2) The Procuring Entity shall confirm that the following documents and
information have been provided in the Bid. If any of these documents
or information is missing, the offer shall be rejected.
(a) Bid Submission Form, in accordance with ITB Sub-Clause 12.1;
(b) Price Schedules, in accordance with ITB Sub-Clause 12.2;
(c) Bid Security, in accordance with ITB Clause 19, if applicable.
31.0 Examination of Terms and Conditions; Technical Evaluation
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(1) The Procuring Entity shall examine the Bid to confirm that all terms and
conditions specified in the GCC and the SCC have been accepted by the
Bidder without any material deviation or reservation.
(2) The Procuring Entity shall evaluate the technical aspects of the Bid
submitted in accordance with ITB Clause 16 and 17, to confirm that all
requirements specified in Section 6, Schedule of Requirements of the
Bidding Documents have been met without any material deviation or
reservation.
(3) If, after the examination of the terms and conditions and the technical
evaluation, the Procuring Entity determines that the Bid is not
substantially responsive in accordance with ITB Clause 28, it shall reject
the Bid.
32.0 Conversion to Single Currency
For evaluation and comparison purposes, the Procuring Entity shall convert all
bid prices expressed in amounts in various currencies into an amount in a
single currency specified in the BDS, using the selling exchange rates
established by the source and on the date specified in the BDS.
33.0 Domestic Preference
Domestic preference shall not be a factor in bid evaluation, unless otherwise

34.0 Evaluation of Bids
(1) The Procuring Entity shall evaluate each bid that has been determined,
up to this stage of the evaluation, to be substantially responsive.
(2) To evaluate a Bid, the Procuring Entity shall only use all the factors,
methodologies and criteria defined in ITB Clause 34. No other criteria or
methodology shall be permitted.
(3) To evaluate a Bid, the Procuring Entity shall consider the following;
(a) Evaluation will be done for Items or Lots, as specified in the BDS;
and the Bid Price as quoted in accordance with clause 12.
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(b) Price adjustment for correction of arithmetic errors in accordance
with ITB Sub-Clause 29.3.
(c) Price adjustment due to discounts offered in accordance with ITB

Sub-Clause 14.4.
(d) Adjustments due to the application of the evaluation criteria

specified in the BDS from amongst those set out in Section III,
Evaluation and Qualification Criteria.
(e) Adjustments due to the application of a margin of preference, in

accordance with ITB Clause 33 if applicable.
(4) The Procuring Entity’s evaluation of a bid will exclude and not take into
account:
(a) In the case of Goods manufactured in Rwanda, sales and other

similar taxes, which will be payable on the goods if a contract is
awarded to the Bidder;
(b) In the case of Goods manufactured outside Rwanda, already

imported or to be imported, customs duties and other import taxes
levied on the imported Good, sales and other similar taxes, which
will be payable on the Goods if the contract is awarded to the
Bidder;
(c) Any allowance for price adjustment during the period of execution
of the contract, if provided in the bid.
(5) The Procuring Entity’s evaluation of a bid may require the consideration
of other factors, in addition to the Bid Price quoted in accordance with
ITB Clause 14. These factors may be related to the characteristics,
performance, and terms and conditions of purchase of the Goods and
Related Services. The effect of the factors selected, if any, shall be
expressed in monetary terms to facilitate comparison of bids, unless
otherwise specified in Section III, Evaluation and Qualification Criteria.
The factors, methodologies and criteria to be used shall be as specified
in ITB 36.3 (d).
(6) If so specified in the BDS, these Bidding Documents shall allow Bidders
to quote separate prices for one or more lots, and shall allow the
Procuring Entity to award one or multiple lots to more than one Bidder.
The methodology of evaluation to determine the lowest-evaluated lot
283

combinations is specified in Section III, Evaluation and Qualification
Criteria.
35.0 Comparison of Bids
The Procuring Entity shall compare all substantially responsive bids to

determine the lowest-evaluated bid, in accordance with ITB Clause 34.
36.0 Post-qualification of the Bidder
(1) The Procuring Entity shall determine to its satisfaction whether the
Bidder that is selected as having submitted the lowest evaluated and
substantially responsive bid is qualified to perform the Contract
satisfactorily.
(2) The determination shall be based upon an examination of the

documentary evidence of the Bidder’s qualifications submitted by the
Bidder, pursuant to ITB Clause 17.
(3) An affirmative determination shall be a prerequisite for award of the

Contract to the Bidder. A negative determination shall result in
disqualification of the bid, in which event the Procuring Entity shall
proceed to the next lowest evaluated bid to make a similar
determination of that Bidder’s capabilities to perform satisfactorily.
37.0 Procuring Entity’s Right to Accept Any Bid, and to Reject Any or All
Bids
The Procuring Entity reserves the right to accept or reject any bid, and to annul
the bidding process and reject all bids at any time prior to contract award,
without thereby incurring any liability to Bidders.
C. Award of Contract
38.0 Award Criteria
The Procuring Entity shall award the Contract to the Bidder whose offer has
been determined to be the lowest evaluated bid and is substantially responsive
to the Bidding Documents, provided further that the Bidder is determined to
be qualified to perform the Contract satisfactorily.
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39.0 Procuring Entity’s Right to Vary Quantities at Time of Award
At the time the Contract is awarded, the Procuring Entity reserves the right to
increase or decrease the quantity of Goods and Related Services originally
specified in Section VI, Schedule of Requirements, provided this does not
exceed the percentages specified in the BDS, and without any change in the
unit prices or other terms and conditions of the bid and the Bidding
Documents.
40.0 Notification of Award
Before the expiry of the bid validity period, the Procuring Entity shall
simultaneously notify the successful and the unsuccessful bidders of the
provisional outcome of the bids evaluation.
The notification shall specify that the major elements of the procurement
process would be made available to the bidders upon request and that they
have seven (7) days in which to lodge a protest, if any, before a contract is
signed with the successful bidder.
(1) The successful bidder may be required to provide a performance

security in accordance with the procurement regulations. Such a
security shall not exceed 10 % of the contract Price.
(2) Upon signature of a contract, the Procuring Entity shall finally notify
other bidders that their bids were not successful and will discharge
their bid security, pursuant to ITB Clause 19.4.
(3) Until a formal Contract is prepared and executed, the notification of
award shall constitute a binding Contract.
(4) The written contract shall base on the bidding document, the
successful bid, any clarification received and accepted, and any
correction made and negotiations agreement between the Procuring
Entity and the successful bidder.
41.0 Signing of Contract
(1) Promptly after notification, the Procuring Entity shall send the
successful Bidder the Agreement and the Special Conditions of
Contract.
285

(2) Within 15 (fifteen) and 21(twenty one) days for National Competitive
Bidding and International Competitive Bidding respectively, after receipt
of the Agreement, the successful Bidder shall sign, date, and return it
to the Client.
(3) Notwithstanding ITB 41.2 above, in case signing of the Contract

Agreement is prevented by any export restrictions attributable to the
Employer, to the country of the Employer, or to the use of the
products/goods, systems or services to be supplied, where such export
restrictions arise from trade regulations from a country supplying those
products/goods, systems or services, the Bidder shall not be bound by
its bid, always provided, however, that the Bidder can demonstrate to
the satisfaction of the Procuring Entity that signing of the Contact
Agreement has not been prevented by any lack of diligence on the part
of the Bidder in completing any formalities, including applying for
permits, authorizations and licenses necessary for the export of the
products/goods, systems or services under the terms of the Contract.
42.0 Performance Security
(1) Within 15 and 21 days for National Competitive Bidding and

International Competitive Bidding respectively, after receipt of
notification of award from the Procuring Entity, the successful Bidder,
if required, shall furnish the Performance Security in accordance with
the GCC, using for that purpose the Performance Security Form
included in Section VIII Contract forms, or another Form acceptable to
the Procuring Entity.
(2) Failure of the successful Bidder to submit the above-mentioned

Performance Security or sign the Contract shall constitute sufficient
grounds for the annulment of the award and forfeiture of the Bid
Security or execution of the Bid-Securing Declaration. In that event the
Procuring Entity may award the Contract to the next lowest evaluated
Bidder, whose offer is substantially responsive and is determined by
the Procuring Entity to be qualified to perform the Contract
satisfactorily.
286

This Section complements the Instructions to Bidders. It contains the criteria

that the Procuring Entity may use to evaluate a bid and determine whether a
Bidder has the required qualifications. No other criteria shall be used.
[The Procuring Entity shall select the criteria deemed appropriate for the
procurement process, insert the appropriate wording using the samples below
or other acceptable wording, and delete the text in italics].
Contents
1. Domestic Preference (ITB 33)
2. Evaluation Criteria (ITB 34.3 (d))
3. Multiple Contracts (ITB 34.6)
4. Postqualification Requirements (ITB 36.2)
1. Domestic Preference (ITB 33)
If the Bidding Data Sheet so specifies, the Procuring Entity will grant a margin
of preference to goods manufactured in Rwanda for the purpose of bid
comparison, in accordance with the procedures outlined in subsequent
paragraphs.
Bids will be classified in one of three groups, as follows:
(1) Group A: Bids offering goods manufactured in Rwanda, for which:
(a) Labor, raw materials, and components from within Rwanda account
for more than thirty (30) percent of the EXW price; and
(b) The production facility in which they will be manufactured or

assembled has been engaged in manufacturing or assembling such
goods at least since the date of bid submission.
(2) Group B: All other bids offering Goods manufactured in Rwanda.
(3) Group C: Bids offering Goods manufactured outside Rwanda that have
been already imported or that will be imported.
To facilitate this classification by the Procuring Entity, the Bidder shall

complete whichever version of the Price Schedule furnished in the Bidding
Documents as appropriately provided. However, the completion of an incorrect
287

version of the Price Schedule by the Bidder shall not result in rejection of its
bid, but merely in the Procuring Entity’s reclassification of the bid into its
appropriate bid group.
The Procuring Entity will first review the bids to confirm the appropriateness
of, and to modify as necessary, the bid group classification to which bidders
assigned their bids in preparing their Bid Forms and Price Schedules.
All evaluated bids in each group will then be compared to determine the lowest
evaluated bid of each group. Such lowest evaluated bids shall be compared
with each other and if as a result of this comparison a bid from Group A or
Group B is the lowest, it shall be selected for the award.
If, as a result of the preceding comparison, the lowest evaluated bid is from
Group C, the lowest evaluated bid from Group C bids will then be further
compared with the lowest evaluated bid from Group A, after adding to the
evaluated bid price of goods offered in the bid for Group C, for the purpose of
further comparison only an amount equal to ten (10) percent of the CIP (named
place of destination) bid price. The lowest-evaluated bid determined from this
last comparison shall be selected for the award.
2. Evaluation Criteria (ITB 34.3 (d))
The Procuring Entity’s evaluation of a bid may take into account, in addition
to the Bid Price quoted in accordance with ITB Clause 14.6, one or more of the
following factors as specified in ITB Sub-Clause 34.3(d) and in BDS referring
to ITB 34.3(d), using the following criteria and methodologies.
(1) Delivery schedule. (as per INCOTERMS specified in the BDS)
The Goods specified in the List of Goods are required to be delivered

within the acceptable time range (after the earliest and before the final
date, both dates inclusive) specified in Section VI, Delivery Schedule. No
credit will be given to deliveries before the earliest date, and bids offering
delivery after the final date shall be treated as nonresponsive. Within
this acceptable period, an adjustment, as specified in BDS Sub-Clause
34.3(d), will be added, for evaluation purposes only, to the bid price of
bids offering deliveries later than the “Earliest Delivery Date” specified
in Section VI, Delivery Schedule.
(2) Deviation in payment schedule. [Insert one of the following]
288

(a) Bidders shall state their bid price for the payment schedule outlined
in the SCC. Bids shall be evaluated on the basis of this base price.
Bidders are, however, permitted to state an alternative payment
schedule and indicate the reduction in bid price they wish to offer
for such alternative payment schedule. The Procuring Entity may
consider the alternative payment schedule and the reduced bid price
offered by the Bidder selected on the basis of the base price for the
payment schedule outlined in the SCC.
or
(b) The SCC stipulates the payment schedule specified by the Procuring
Entity. If a bid deviates from the schedule and if such deviation is
considered acceptable to the Procuring Entity, the bid will be
evaluated by calculating interest earned for any earlier payments
involved in the terms outlined in the bid as compared with those
stipulated in the SCC, at the rate per annum specified in BDS Sub-
Clause 34.3 (d).
(3) Cost of major replacement components, mandatory spare parts, and

service. [insert one of the following]
(a) The list of items and quantities of major assemblies, components,

and selected spare parts, likely to be required during the initial
period of operation specified in the BDS Sub-Clause 16.3, is in the
List of Goods. An adjustment equal to the total cost of these items,
at the unit prices quoted in each bid, shall be added to the bid price,
for evaluation purposes only.
or
(b) The Procuring Entity will draw up a list of high-usage and high-value
items of components and spare parts, along with estimated
quantities of usage in the initial period of operation specified in the
BDS Sub-Clause 16.3. The total cost of these items and quantities
will be computed from spare parts unit prices submitted by the
Bidder and added to the bid price, for evaluation purposes only.
(4) Availability in Rwanda of spare parts and after sale services for
equipment offered in the bid.
An adjustment equal to the cost to the Procuring Entity of establishing

the minimum service facilities and parts inventories, as outlined in BDS
289

Sub-Clause 34.3(d), if quoted separately, shall be added to the bid price,
for evaluation purposes only.
(5) Projected operating and maintenance costs.
Operating and maintenance costs. An adjustment to take into account

the operating and maintenance costs of the Goods will be added to the
bid price, for evaluation purposes only, if specified in BDS Sub-Clause
34.3(d). The adjustment will be evaluated in accordance with the
methodology specified in the BDS Sub-Clause 34.3(d).
(6) Performance and productivity of the equipment. [insert one of the

following]
(a) Performance and productivity of the equipment. An adjustment

representing the capitalized cost of additional operating costs over
the life of the plant will be added to the bid price, for evaluation
purposes if specified in the BDS Sub-Clause 34.3(d). The adjustment
will be evaluated based on the drop in the guaranteed performance
or efficiency offered in the bid below the norm of 100, using the
methodology specified in BDS Sub-Clause 34.3(d).
or
(b) An adjustment to take into account the productivity of the goods

offered in the bid will be added to the bid price, for evaluation
purposes only, if specified in BDS Sub-Clause 34.3(d). The
adjustment will be evaluated based on the cost per unit of the actual
productivity of goods offered in the bid with respect to minimum
required values, using the methodology specified in BDS Sub-Clause
34.3(d).
(7) Specific additional criteria.

Other specific additional criteria to be considered in the evaluation and
the evaluation method shall be detailed in BDS Sub-Clause 34.3(d)].
3. Multiple Contracts (ITB 34.6)
The Procuring Entity shall award multiple contracts to the Bidder that offers
the lowest evaluated combination of bids (one contract per bid) and meets the
post-qualification criteria (this Section III, Sub-Section ITB 36.2 Post-
Qualification Requirements).
290

The Procuring Entity shall:
(1) Evaluate only lots or contracts that include at least the percentages of
items per lot and quantity per item as specified in ITB Sub Clause 14.8.
(2) Take into account;
(a) The lowest-evaluated bid for each lot.
(b) The price reduction per lot and the methodology for its application
as offered by the Bidder in its bid.
4. Post-qualification Requirements (ITB 36.2)
After determining the lowest-evaluated bid in accordance with ITB Sub-Clause

35.1, the Procuring Entity shall carry out the post-qualification of the Bidder
in accordance with ITB Clause 36, using only the requirements specified.
Requirements not included in the text below shall not be used in the evaluation
of the Bidder’s qualifications.
(1) Financial Capability
The Bidder shall furnish documentary evidence that it meets the

following financial requirement(s): [list the requirement(s)].
(2) Experience and Technical Capacity

The Bidder shall furnish documentary evidence to demonstrate that it
meets the following experience requirement(s): [list the requirement(s)].
(3) The Bidder shall furnish documentary evidence to demonstrate that the
Goods it offers meet the following usage requirement: [list the
requirement(s)].
Table of Forms
(1) Bidder Information Form
(2) Joint Venture (JV) Partner Information Form
(3) Bid Submission Form
(4) Price Schedule Forms
291

(5) Price Schedule: Goods Manufactured Outside Rwanda, to be imported
(6) Price Schedule: Goods Manufactured Outside Rwanda, already

imported
(7) Price Schedule: Goods Manufactured in Rwanda
(8) Price and Completion Schedule - Related Services
(9) Bid Security (Bank Guarantee)
(10) Manufacturer’s Authorization
Bidder Information Form
[The Bidder shall fill in this Form in accordance with the instructions indicated
below. No alterations to its format shall be permitted and no substitutions shall
be accepted.]
Date: [insert date (as day, month and year) of Bid Submission]
Tender No.: [insert number of tender notice]
Page ________ of_ ______ pages
1. Bidder’s Legal Name [insert Bidder’s legal name]
2. In case of Joint Venture (JV), legal name of each party: [insert legal name
of each party in JV]
3. Bidder’s actual or intended Country of Registration: [insert actual or

intended Country of Registration]
4. Bidder’s Year of Registration: [insert Bidder’s year of registration]
5. Bidder’s Legal Address in Country of Registration: [insert Bidder’s legal

address in country of registration]
6. Bidder’s Authorized Representative Information
292

Name: [insert Authorized Representative’s name]
ID/Passport Number [Insert the ID or Passport Number]
Address: [insert Authorized Representative’s Address]
Telephone/Fax numbers: [insert Authorized Representative’s telephone/fax

numbers]
Email Address: [insert Authorized Representative’s email address]
7. Attached are copies of original documents of: [check the box(es) of the
attached original documents]
Articles of Incorporation or Registration of firm named in 1, above, in
accordance with ITB Sub-Clauses 4.1 and 4.2.
In case of JV, letter of intent to form JV or JV certified agreement, in
accordance with ITB Sub-Clause 4.1.
In case of government controlled companies controlled companies from
Rwanda, documents establishing legal and financial autonomy and
compliance with commercial law, in accordance with ITB Sub-Clause 4.5.
Joint Venture (JV) Partner Information Form
The Bidder shall fill in this Form in accordance with the instructions
indicated below
Page ________ of_ ______ pages
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1. Bidder’s Legal Name: [insert Bidder’s legal name]
2. JV’s Party legal name: [insert JV’s Party legal name]
3. JV’s Party Country of Registration: [insert JV’s Party country of

registration]
4. JV’s Party Year of Registration: [insert JV’s Part year of registration]
5. JV’s Party Legal Address in Country of Registration: [insert JV’s Party legal
address in country of registration]
6. JV’s Party Authorized Representative Information
Name: [insert name of JV’s Party authorized representative]
ID/Passport Number [Insert ID or Passport Number]
Address: [insert address of JV’s Party authorized representative]
Telephone/Fax numbers: [insert telephone/fax numbers of JV’s Party

authorized representative]
Email Address: [insert email address of JV’s Party authorized

representative]
7. Attached are copies of original documents of: [check the box(es) of the
attached original documents]
Articles of Incorporation or Registration of firm named in 2, above, in

accordance with ITB Sub-Clauses 4.1 and 4.2.
In case of government controlled companies from Rwanda, documents

establishing legal and financial autonomy and compliance with
commercial law, in accordance with ITB Sub-Clause 4.5
294

Bid Submission Form
[The Bidder shall fill in this Form in accordance with the instructions indicated.
No alterations to its format shall be permitted and no substitutions shall be
accepted.]
Or
Invitation for Bid No.: [insert No of IFB]
Alternative No.: [insert identification No if this is a Bid for an alternative]
To: [insert complete name of Purchaser]
We, the undersigned, declare that:
(a) We have examined and have no reservations to the Bidding Documents,

including Addenda No.: ______________[insert the number and issuing date of
each Addenda];
(b) We offer to supply in conformity with the Bidding Documents and in

accordance with the Delivery Schedules specified in the Schedule of
Requirements the following Goods and Related Services
_______________________ [insert a brief description of the Goods and Related
Services];
(c) The total price of our Bid, excluding any discounts offered in item (d)
below, is: ______________________________[insert the total bid price in words
and figures, indicating the various amounts and the respective currencies];
(d) The discounts offered and the methodology for their application are;
Discounts: If our bid is accepted, the following discounts shall

apply._______ [Specify in detail each discount offered and the specific item
of the Schedule of Requirements to which it applies].
295

Methodology of Application of the Discounts: The discounts shall be
applied using the following method: __________ [Specify in detail the
method that shall be used to apply the discounts];
(e) Our bid shall be valid for the period of time specified in ITB Sub-Clause
18.1, from the date fixed for the bid submission deadline in accordance
with ITB Sub-Clause 22.1, and it shall remain binding upon us and may
be accepted at any time before the expiration of that period;
(f) If our bid is accepted, we commit to obtain a performance security in

accordance with ITB Clause 42 and GCC Clause 18 for the due performance
of the Contract;
(g) We have no conflict of interest in accordance with ITB Sub-Clause 4.2;
(h) Our firm, its affiliates or subsidiaries—including any subcontractors or

suppliers for any part of the contract—has not been declared ineligible by
the RPPA, under Rwanda laws or official regulations, in accordance with
ITB Sub-Clause 4.3;
(i) We understand that this bid, together with your written acceptance thereof
included in your notification of award, shall constitute a binding contract
between us, until a formal contract is prepared and executed.
(j) We understand that you are not bound to accept the lowest evaluated bid
or any other bid that you may receive.
Signed: _______________ [insert signature and stamp of person whose name and
capacity are shown]
In the capacity of _______[insert legal capacity of person signing the Bid

Submission Form]
296

Name: ____________ [insert complete name of person signing the Bid Submission
Form]
Duly authorized to sign the bid for and on behalf of:_____ [insert complete name
of Bidder]
Dated on ____________ day of __________________, _______ [insert date of signing]
Price Schedule Forms
[The Bidder shall fill in these Price Schedule Forms in accordance with the
instructions indicated. The list of line items in column 1 of the Price Schedules
shall coincide with the List of Goods and Related Services specified by the
Procuring Entity in the Schedule of Requirements.]
297

Price Schedule: Goods Manufactured outside Rwanda, to be imported
Date:_________________________
(Group C bids, goods to be imported)
Tender No: ___________________
Currencies in accordance with ITB Sub-Clause 15
Alternative No: ________________
Page N ______ of ______________
1 2 3 4 5 6 7 8 9 10
Line Descript Descri Count Deliver Quantity Unit price CIP Price Price per line item for Total Price per
Item ion of ption ry of y Date and CIP [insert per line inland transportation Line item
N Goods of the Origin as physical place of item and other services (Col. 7+8)
contai define unit destination] (Col. 5x6) required in Rwanda to
ner (if d by in convey the Goods to
requir INCOT accordance their final destination
ed) ERMS with ITB specified in BDS
14.6(b)(i)
[inse [insert [descri [insert [insert [insert [insert unit [insert total [insert the [insert total price
rt name of be the countr quoted number of price CIP per CIP price corresponding price per of the line item]
num good] quality y of Deliver units to be unit] per line line item]
ber of the origin y Date] supplied item]
of contai of the and name
the ner] Good] of the
item] physical
unit]
298

Total Price
Name of Bidder [insert complete name of Bidder]

Signature and stamp of Bidder [signature of person signing the Bid]
Date [Insert Date]
Price Schedule: Goods Manufactured outside Rwanda, already imported
Date:_______________________________
(Group C bids, Goods already imported) Tender No: _________________________
Alternative No: _____________________
Page N ____________ of _____________
1 2 3 4 5 6 7 8 9 10 11 12 13
299

Line Descript Descripti Count Deliver Quantit Unit Custom Unit Price Price per Price per line Sales and Total Price
Item ion of on of the ry of y Date y and price Duties and net of line item item for inland other per line
N Goods container Origin as physica includin Import custom net of transportation taxes paid item
(if
defined l unit g Taxes paid duties and Custom and other or payable (Col. 9+10)
required)
by Custom per unit in import Duties services required per item if
INCOT Duties accordanc taxes, in and in Rwanda to Contract
ERMS and e with ITB accordance Import convey the goods is
Import 14.6(c)(ii), with ITB Taxes to their final awarded
Taxes [to be 14.6 (c) (iii) paid, in destination, as (in
paid, in supported (Col. 6 accordanc specified in BDS accordanc
accorda by minus e with ITB in accordance e with ITB
nce with documents Col.7) 14.6(c)(i) with ITB 14.6 14.6(c)(iv)
ITB ] (Col. 58) (c)(v)
14.6(c)(i
)
[insert [insert [describe [insert [insert [insert [insert [insert [insert unit [ insert [insert price per [insert [insert total
numbe name of the countr quoted number unit custom price net of price per line item for sales and price per
r of the Goods] quality of y of Deliver of units price per duties and custom line item inland other line item]
item] the origin
y Date] to be unit] taxes paid duties and net of transportation taxes
container of the
supplie per unit] import custom and other payable
] Good]
d and taxes] duties and services required per item if
name of import in Rwanda] Contract
the taxes] is
physica awarded]
l unit]
300

Total Bid
Price
Name of Bidder [insert complete name of Bidder]

Signature and stamp of Bidder [signature of person signing the Bid]
Date [insert date]
301

Price Schedule: Goods Manufactured in Rwanda
Date:_______________________
Rwanda (Group A and B bids) Tender No: _________________
______________________ Alternative No: _____________
Page N _________ of ________
1 2 3 4 5 6 7 8 9 10 11
Line Item Descrip Descrip Delivery Quantity Unit Total Price per line Cost of local Sales and other Total Price
N tion of tion of Date as and price EXW item for inland labour, raw taxes payable per line
Goods the defined physical EXW price per transportation materials per line item if item
contain by unit line item and other and Contract is (Col. 6+7)
er (if INCOTE (Col. 45) services components awarded (in
require RMS required in from with accordance with
d) Rwanda to origin in ITB 14.6(a)(ii)
convey the Rwanda
Goods to their % of Col. 5
final
destination
302

[insert [insert [describ [insert [insert [insert [insert [insert the [Insert cost [insert sales and [insert total
number name of e the quoted number EXW total corresponding of local other taxes price per
of the Good] quality Delivery of units unit EXW price per line labour, raw payable per line item]
item] of the Date] to be price] price per item] material and item if Contract
contain supplied line item] components is awarded]
er] and from within
name of the
the Purchase’s
physical country as a
unit] % of the
EXW price
per line item]
Total Price
Name of Bidder [insert complete name of Bidder] Signature and stamp of Bidder [signature of person signing the Bid] Date [insert
date]
303

Price and Completion Schedule - Related Services
Date:__________________________
Currencies in accordance with ITB Sub-Clause 15 Tender No: ____________________
Alternative No: ________________
Page N __________ of __________
1 2 3 4 5 6 7
Service Description of Services Country Delivery Date Quantity and physical Unit price Total Price per
N (excludes inland of Origin at place of unit Service
transportation and other Final (Col. 5*6 or
services required in destination estimate)
Rwanda to convey the
goods to their final
destination)
[insert [insert name of Services] [insert [insert [insert number of units to [insert unit price [insert total
number of country delivery date be supplied and name of per item] price per item]
the Service ] of origin at place of the physical unit]
of the final
Services] destination
per Service]
Total Bid Price
304

Name of Bidder [insert complete name of Bidder] Signature and stamp of Bidder [signature of person signing the Bid] Date [insert date]
305

Bid Security (Bank Guarantee)
[The Bank shall fill in this Bank Guarantee Form in accordance with the
instructions indicated.]
________________________________
[Bank’s Name, and Address of Issuing Branch or Office]
Beneficiary: ___________________ [Name and Address of Procuring Entity]
Date: ________________
BID GUARANTEE No.: _________________
We have been informed that [name of the Bidder] (hereinafter called "the
Bidder") has submitted to you its bid dated (hereinafter called "the Bid") for the
execution of [name of contract] under Tender Notice / Invitation for Bids No.
[Tender Notice /IFB number] (“the Tender/ IFB”).
Furthermore, we understand that, according to your conditions, bids must be

supported by a bid guarantee.
At the request of the Bidder, we [name of Bank] hereby irrevocably undertake

to immediately pay you any sum or sums not exceeding in total an amount of
[amount in figures] ([amount in words]) upon receipt by us of your first demand
in writing accompanied by a written statement stating that the Bidder is in
breach of its obligation(s) under the bid conditions, because the Bidder:
(a) Has withdrawn its Bid during the period of bid validity specified by the
Bidder in the Form of Bid; or
(b) Having been notified of the acceptance of its Bid by the Procuring Entity
during the period of bid validity, (i) fails or refuses to execute the Contract
Form; or (ii) fails or refuses to furnish the performance security, if required,
in accordance with the Instructions to Bidders; or
(c) Refuses to accept the correction of errors in its bid price in accordance with
the Instructions to Bidders.
This guarantee will expire: (a) if the Bidder is the successful bidder, upon our
receipt of copies of the contract signed by the Bidder and the performance
security issued to you upon the instruction of the Bidder; or (b) if the Bidder is
not the successful bidder, upon the earlier of (i) our receipt of a copy of your
306

notification to the Bidder of the name of the successful bidder; or (ii) thirty (30)
days after the expiration of the Bid Validity Period.
Consequently, any demand for payment under this guarantee must be received
by us at the office on or before that date.
___________ [Name, Position, signature(s) and stamp of the authorised bank

official(s)]
307

Manufacturer’s Authorization
[The Bidder shall require the Manufacturer to fill in this Form in accordance with
the instructions indicated. This letter of authorization shall be on the letterhead
of the Manufacturer and shall be signed by a person with the proper authority to
sign documents that are binding on the Manufacturer. The Bidder shall include
it in its bid, if so indicated in the BDS.]
Tender No.: [insert number of bidding process]
Alternative No.: [insert identification No if this is a Bid for an alternative]
To: [insert complete name of Purchaser]
WHEREAS
We [insert complete name of Manufacturer], who are official manufacturers of

[insert type of goods manufactured], having factories at [insert full address of
Manufacturer’s factories], do hereby authorize [insert complete name of Bidder]
to submit a bid the purpose of which is to provide the following Goods,
manufactured by us [insert name and or brief description of the Goods], and to
subsequently negotiate and sign the Contract.
We hereby extend our full guarantee and warranty in accordance with Clause
27 of the General Conditions of Contract, with respect to the Goods offered by
the above firm.
Signed: [insert signature(s) and stamp of authorized representative(s) of the

Manufacturer]
Name: [insert complete name(s) of authorized representative(s) of the

Manufacturer]
Title: [insert title]
Duly authorized to sign this Authorization on behalf of: [insert complete name of
Bidder]
Dated on ____________ day of __________________, _______ [insert date of signing]
308

ANNEX 3 – SUPPLYING REQUIREMENTS
1. Notes for Preparing the Schedule of Requirements
The Schedule of Requirements shall be included in the bidding documents by

the Procuring Entity, and shall cover, at a minimum, a description of the goods
and services to be supplied and the delivery schedule.
The objective of the Schedule of Requirements is to provide sufficient

information to enable bidders to prepare their bids efficiently and accurately,
in particular, the Price Schedule, for which a form is provided in Section IV. In
addition, the Schedule of Requirements, together with the Price Schedule, shall
serve as a basis in the event of quantity variation at the time of award of
contract pursuant to ITB Clause 41.
The date or period for delivery shall be carefully specified, taking into account
(a) the implications of delivery terms stipulated in the Instructions to Bidders
pursuant to the INCOTERMS rules (i.e., EXW, or CIF, CIP, FOB, FCA terms—
that “delivery” takes place when goods are delivered to the carriers), and (b) the
date prescribed herein from which the Procuring Entity’s delivery obligations
start (i.e., notice of award, contract signature, opening or confirmation of the
letter of credit).
309

List of Goods and Delivery Schedule
[The Procuring Entity shall fill in this table, with the exception of the column “Bidder’s offered Delivery date” to be filled by the
Bidder]
Line Item Descriptio Descripti Type, Quantit Physical Final Delivery (as per INCOTERMS) Date
n of Goods on of the size and y unit (Project
N Earliest Latest Bidder’s
container weight Site)
Delivery Delivery offered
(if of the Destinatio
Date Date Delivery date
required) packing n as
[to be
material specified
provided by
in BDS
the bidder]
[insert item [insert [describe [Describe [insert [insert [insert place [insert the [insert the [insert the
No] description the quality the type, quantity physical of Delivery] number of number of number of days
of Goods] of the size and of item unit for days days following the
container] weight of to be the following the following the date of
the supplie quantity] date of date of effectiveness
packing d] effectiveness effectiveness the Contract]
material] the Contract] the Contract]
310

1. List of Related Services and Completion Schedule
[This table shall be filled in by the Purchaser. The Required Completion Dates should be realistic, and consistent with
the required Goods Delivery Dates (as per INCOTERMS)]
Place where Final
Service Description of Service Quantity Physical Unit Services shall be Completion

performed Date (s) of
Services
[insert Service [insert description of Related [insert [insert [insert name of the [insert required
No] Services] quantity of physical unit Place] Completion
items to be for the items] Date(s)]
supplied]
1. If applicable
311

ANNEX 2 TO THE PROCUREMENT MANUAL
This is a standard request for proposal. It can be modified or customized by

the procuring entity to suit its needs
2. Technical Specifications
The purpose of the Technical Specifications (TS), is to define the technical

characteristics of the Goods and Related Services required by the Procuring
Entity. The Procuring Entity shall prepare the detailed TS take into account
that:
(1) The TS constitute the benchmarks against which the Procuring Entity
will verify the technical responsiveness of bids and subsequently evaluate
the bids. Therefore, well-defined TS will facilitate preparation of
responsive bids by bidders, as well as examination, evaluation, and
comparison of the bids by the Procuring Entity.
(2) The TS shall require that all goods and materials to be incorporated in
the goods be new, unused, and of the most recent or current models, and
that they incorporate all recent improvements in design and materials,
unless provided for otherwise in the contract.
(3) The TS shall make use of best practices. Samples of specifications from
successful similar procurements in the same country or sector may
provide a sound basis for drafting the TS.
(4) The RPPA encourages the use of metric units.
(5) Standardizing technical specifications may be advantageous, depending

on the complexity of the goods and the repetitiveness of the type of
procurement. Technical Specifications should be broad enough to avoid
restrictions on workmanship, materials, and equipment commonly used
in manufacturing similar kinds of goods.
(6) Standards for equipment, materials, and workmanship specified in the

Bidding Documents shall not be restrictive. Recognized international
standards should be specified as much as possible. Reference to brand
names, catalogue numbers, or other details that limit any materials or
items to a specific manufacturer should be avoided as far as possible.
Where unavoidable, such item description should always be followed by
the words “or substantially equivalent.” When other particular standards
or codes of practice are referred to in the TS, whether from the Borrower’s
or from other eligible countries, a statement should follow other
authoritative standards that ensure at least a substantially equal quality,
then the standards mentioned in the TS will also be acceptable.
(7) Reference to brand names and catalogue numbers should be avoided as

far as possible; where unavoidable the words “or at least equivalent” shall
always follow such references.
(8) Technical Specifications shall be fully descriptive of the requirements in

respect of, but not limited to, the following:
(a) Standards of materials and workmanship required for the production

and manufacturing of the Goods.
(b) Detailed tests required (type and number).
(c) Other additional work and/or Related Services required to achieve

full delivery/completion.
(d) Detailed activities to be performed by the Supplier, and participation

of the Procuring Entity thereon.
(e) List of detailed functional guarantees covered by the Warranty and

the specification of the liquidated damages to be applied in the event
that such guarantees are not met.
(9) The TS shall specify all essential technical and performance

characteristics and requirements, including guaranteed or acceptable
maximum or minimum values, as appropriate. Whenever necessary, the
Procuring Entity shall include an additional ad-hoc bidding form (to be
an Attachment to the Bid Submission Sheet), where the Bidder shall
provide detailed information on such technical performance
characteristics in respect to the corresponding acceptable or guaranteed
values.
Page | 313

When the Procuring Entity requests that the Bidder provides in its bid a part or
all of the Technical Specifications, technical schedules, or other technical
information, the Procuring Entity shall specify in detail the nature and extent
of the required information and the manner in which it has to be presented by
the Bidder in its bid.
[If a summary of the Technical Specifications (TS) has to be provided, the

Procuring Entity shall insert information in the table below. The Bidder shall
prepare a similar table to justify compliance with the requirements]
“Summary of Technical Specifications. The Goods and Related Services shall

comply with following Technical Specifications and Standards:
Page | 314

Item No Name of Goods or Technical Specifications and
Related Service Standards
[insert item No] [insert name] [insert TS and Standards]
Detailed Technical Specifications and Standards [whenever necessary].
[Insert detailed description of TS]

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________]
Page | 315

2. Drawings
These Bidding Documents includes [insert “the following” or “no”] drawings.
[If documents shall be included, insert the following List of Drawings]
List of Drawings
Drawing Nr. Drawing Name Purpose
The following inspections and tests shall be performed: [insert list of inspections
and tests]
Page | 316

ANNEX 4 - CONTRACT
REPUBLIC OF RWANDA
Contract for the Supply of .......................
By and Between
Name of the Procuring Entity : …………………………….................................
And
…………………………………...
Contract number: …………………….
Contract amount and currency: …………………………
Contract duration: ………………..
Contract administrator/Manager: ………………….
Date of Contract: ……………………..
Page | 317

Table of Clauses
1. OBJECT OF THE CONTRACT

2. DEFINITIONS
3. INTERPRETATION
4. CONTRACT DOCUMENTS
5. FRAUD AND CORRUPTION
6. ENTIRE AGREEMENT
7. AMENDMENT
8. NO WAIVER
9. SEVERABILITY
10. LANGUAGE
11. JOINT VENTURE, CONSORTIUM OR ASSOCIATION
12. NOTICES
13. GOVERNING LAW
14. SETTLEMENT OF DISPUTE
15. INSPECTION AND AUDIT BY RPPA
16. SCOPE OF SUPPLY
17. DELIVERY AND DOCUMENTS
18. SUPPLIER'S RESPONSIBILITY
19. CONTRACT PRICE
20. TERMS OF PAYMENT
21. TAXES AND DUTIES
22. PERFORMANCE SECURITY
23. COPYRIGHT
24. CONFIDENTIAL INFORMATION
25. SUBCONTRACTING
26. SPECIFICATIONS AND STANDARDS
27. PACKING AND DOCUMENTS
28. INSURANCE
29. TRANSPORTATION
30. INSPECTION AND TESTS
31. LIQUIDATED DAMAGES
Page | 318

32. WARRANTY
33. PATENT INDEMNITY
34. LIMITATION OF LIABILITY
35. CHANGE IN LAWS AND REGULATIONS
36. FORCE MAJEURE
37. CHANGE ORDERS AND CONTRACT AMENDMENTS
38. EXTENSION OF TIME
39. TERMINATION
40. ASSIGNMENT
41. EXPORT RESTRICTIONS
This CONTRACT hereinafter referred to as the “Contract” is entered into by and

between Name of Procuring Entity” represented by Mr/Mrs/Ms……………………,
the ……………… of the ……… “name of the Procuring Entity” (Hereinafter
referred to as “the Procuring Entity” and …………….. Ltd/Co, ........
incorporated in (Country) ………………… under the Registry number
……………………. Represented by Mr/Mrs/Ms ……………………….., ID/PC
N°………………………………………..issued at………………………………………the
……………… of the company Hereinafter referred to as the “Supplier”
WHEREAS
(a) the Procuring Entity has requested the Supplier to supply goods and related
services as specified in the General Conditions of Contract attached to this
Contract (hereinafter called the “Goods”);
(b) the Supplier, having represented to the Procuring Entity that they have the
required capacity, have agreed to supply the goods and related services on
the terms and conditions set forth in this Contract;
(c) the Procuring Entity has received funds from the [Insert the name of the
funding Institution], hereinafter called the (“Funding Institution”) towards
the cost of the goods and related services and intends to apply a portion of
the proceeds of these funds to payments under this Contract;
Page | 319

Or
(c) the Procuring Entity has received Government funds and intends _______
Or
(c) the Procuring Entity has decided to allocate a portion of its own budget to
finance ________
NOW THEREFORE the parties hereby agree as follows:
1. The following documents attached hereto shall be deemed to form an

integral part of this Contract:
(a) The General Conditions of Contract;

(b) The Special Conditions of Contract;
(c) The list of goods, technical specifications and supply requirements;
(d) Contract negotiations minutes;
(e) The bidding document; and,
(e) The bid.
2. The mutual rights and obligations of the Procuring Entity and the Supplier
shall be as set forth in the Contract, in particular:
(a) the Supplier shall supply the goods and related services in accordance
with the provisions of the Contract; and,
(b) the Procuring Entity shall make payments to the Supplier in

accordance with the provisions of the Contract.
IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be

signed in their respective names as of the day and year hereunder written.
For and on behalf of [name of the Procuring Entity]
Page | 320

[Authorized Representative]
For and on behalf of [name and legal status of Supplier]
1. Object of the Contract
1.1 The object of this Contract is to supply to the Procuring Entity the goods
and related services as specified in the list of goods and related services,
technical specifications and supply requirements.
2. Definitions
2.1 The following words and expressions shall have the meanings hereby
assigned to them:
(1) “Contract” means the Contract Agreement entered into between the
Procuring Entity and the Supplier, together with the Contract Documents
referred to therein, including all attachments, appendices, and all
documents incorporated by reference therein.
(2) “Contract Documents” means the documents listed in the Contract

Agreement, including any amendments thereto.
(3) “Contract Price” means the price payable to the Supplier as specified in the
Contract Agreement, subject to such additions and adjustments thereto or
deductions therefrom, as may be made pursuant to the Contract.
(4) “Day” means calendar day unless provided otherwise.
(5) “Completion” means the fulfilment of the Related Services by the Supplier
in accordance with the terms and conditions set forth in the Contract.
Page | 321

(6) “Force majeure” means an event or situation beyond the control of the
Supplier that is not foreseeable, is unavoidable, and its origin is not due to
negligence or lack of care on the part of the Supplier. Such events may
include, but not be limited to, acts of the Procuring Entity in its sovereign
capacity, wars or revolutions, fires, floods, epidemics, quarantine
restrictions, and freight embargoes.
(7) “GCC” means the General Conditions of Contract.
(8) “Goods” means all of the commodities, raw material, machinery and
equipment, and/or other materials that the Supplier is required to supply
to the Procuring Entity under the Contract.
(9) “Procuring Entity” means the entity purchasing the Goods and Related
Services, as specified in the SCC.
(10) “Related Services” means the services incidental to the supply of the goods,
such as insurance, installation, training and initial maintenance and other
such obligations of the Supplier under the Contract.
(11) “SCC” means the Special Conditions of Contract.
(12) “Subcontractor” means any natural person, private or government entity,

or a combination of the above, to whom any part of the Goods to be supplied
or execution of any part of the Related Services is subcontracted by the
Supplier.
(13) “Supplier” means the natural person, private or government entity, or a

combination of the above, whose bid to perform the Contract has been
accepted by the Procuring Entity and is named as such in the Contract
Agreement.
(14) “The Project Site,” where applicable, means the place named in the SCC.
3. Interpretation
3.1 If the context so requires it, masculine also means feminine, singular also
means plural and vice versa.
Page | 322

3.2 Incoterms
(1) Unless inconsistent with any provision of the Contract, the meaning of any
trade term and the rights and obligations of parties thereunder shall be as
prescribed by INCOTERMS;
(2) The terms EXW, CIP, FCA, CFR and other similar terms, when used, shall
be governed by the rules prescribed in the current edition of INCOTERMS
specified in the SCC and published by the International Chamber of
Commerce in Paris, France.
4 Contract Documents
Subject to the order of precedence set forth in the Contract Agreement, all
documents forming the Contract (and all parts thereof) are intended to be
correlative, complementary, and mutually explanatory. The Contract Agreement
shall be read as a whole.
5 Fraud and Corruption
If the Procuring Entity determines that the Supplier has engaged in corrupt,
fraudulent, collusive, coercive or obstructive practices, in competing for or in
executing the Contract, then the Procuring Entity may, after giving 14 days’
notice to the Supplier, terminate the Supplier's employment under the Contract
and cancel the contract, and the provisions of Clause 3.1 of IS shall apply. For
the purposes of this Sub-Clause:
(1) “corrupt practice” means the offering, giving, receiving, or soliciting, directly
or indirectly, of anything of value to influence a civil servant or Government
entity the action of a public official in the procurement process or in contract
execution;
(2) “fraudulent practice” means any act or omission, including a

misrepresentation, that knowingly or recklessly misleads or attempts to
mislead a civil servant to obtain a financial or other benefit or to avoid an
obligation or omission of facts in order to influence a procurement process
or the execution of a contract;
Page | 323

(3) “collusive practice” means arrangement between two or more parties
designed to achieve an improper purpose, including influencing another
party or the civil servant Bidders, with or without the knowledge of the
Procuring Entity, designed to establish bid prices at artificial, non-
competitive levels; and
(4) “coercive practice” means any act intending to harm or threaten to harm
directly or indirectly persons, their works or their property to influence their
participation in the procurement process or affect its performance harming
or threatening to harm, directly or indirectly, persons or their property to
influence their participation in the procurement process or affect the
execution of a contract;
(5) “obstructive practice” is;
(a) deliberately destroying, falsifying, altering or concealing of evidence

material to the investigation or making false statements to investigators
in order to materially impede an investigation into allegations of a
corrupt, fraudulent, coercive or collusive practice; and/or threatening,
harassing or intimidating any party to prevent it from disclosing its
knowledge of matters relevant to the investigation or from pursuing the
investigation; or
(b) acts intended to materially impede the exercise of RPPA’s inspection and
audit rights provided for under Clause 10 [Inspections and Audits by
RPPA].
5.2 Should any employee of the Supplier be determined to have engaged in

corrupt, fraudulent, collusive, coercive, or obstructive practice during the
purchase of the Goods, then that employee shall be removed.
6.0 Entire Agreement
The Contract constitutes the entire agreement between the Procuring Entity and
the Supplier and supersedes all communications, negotiations and agreements
(whether written or oral) of the parties with respect thereto made prior to the
date of Contract.
Page | 324

7 Amendment
7.1 No amendment or other variation of the Contract shall be valid unless it is

in writing, is dated, expressly refers to the Contract, and is signed by a duly
authorized representative of each party thereto.
7.2 The amendment shall not affect the substance and the nature of the original
Contract, and any amendment increasing 20% of the Contract shall require a
new tender.
8 No waiver
8.1 Subject to GCC Sub-Clause 4.5(b) below, no relaxation, forbearance, delay,

or indulgence by either party in enforcing any of the terms and conditions of the
Contract or the granting of time by either party to the other shall prejudice,
affect, or restrict the rights of that party under the Contract, neither shall any
waiver by either party of any breach of Contract operate as waiver of any
subsequent or continuing breach of Contract.
8.2 Any waiver of a party’s rights, powers, or remedies under the Contract
must be in writing, dated, and signed by an authorized representative of the
party granting such waiver, and must specify the right and the extent to which
it is being waived.
9 Severability
If any provision or condition of the Contract is prohibited or rendered invalid or

unenforceable, such prohibition, invalidity or unenforceability shall not affect
the validity or enforceability of any other provisions and conditions of the
Contract.
10 Language
Page | 325

1. The Contract as well as all correspondence and documents relating to the
Contract exchanged by the Supplier and the Purchaser, shall be written in
the language specified in the SCC. Supporting documents and printed
literature that are part of the Contract may be in another language provided
they are accompanied by an accurate translation of the relevant passages in
the language specified, in which case, for purposes of interpretation of the
Contract, this translation shall govern.
2. The Supplier shall bear all costs of translation to the governing language and
all risks of the accuracy of such translation, for documents provided by the
Supplier.
11 Joint Venture, Consortium or Association
If the Supplier is a joint venture, consortium, or association, all of the parties

shall be jointly and severally liable to the Procuring Entity for the fulfilment of
the provisions of the Contract and shall designate one party to act as a leader
with authority to bind the joint venture, consortium, or association. The lead
company serving as the authorized representative of others shall provide as part
of their bid a written agreement confirming its representation and the scope of
its powers. The composition or the constitution of the joint venture, consortium,
or association shall not be altered without the prior consent of the Procuring
Entity.
12 Notices
1. Any notice given by one party to the other pursuant to the Contract shall be
in writing to the address specified in the SCC. The term “in writing” means
communicated in written form with proof of receipt.
2. A notice shall be effective when delivered or on the notice’s effective date,

whichever is later.
13 Governing Law
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The Contract shall be governed by and interpreted in accordance with the laws
of Rwanda.
14 Settlement of Disputes
14.1 Amicable Settlement
The Parties shall use their best efforts to settle amicably all disputes arising out
of or in connection with this Contract or the interpretation thereof.
14.1 Other ways of dispute settlement
Any dispute between the Parties as to matters arising pursuant to this Contract
which cannot be settled amicably within thirty (30) days after receipt by one
Party of the other Party’s request for such amicable settlement may be
submitted by either Party for settlement in accordance with the provisions
specified in the SCC.
15 Inspections and Audit by RPPA
The Supplier shall permit RPPA and/or persons appointed by RPPA to inspect
the Supplier’s offices and/or the accounts and records of the Supplier and its
sub-contractors relating to the performance of the Contract, and to have such
accounts and records audited by auditors appointed by RPPA if required by
RPPA. The Supplier’s attention is drawn to Clause 3, which provides, inter alia,
that acts intended to materially impede the exercise of RPPA’s inspection and
audit rights provided for under Clause 10 constitute a prohibited practice
subject to contract termination as well as to be excluded from participating in
public procurement.
16 Scope of Supply
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The Goods and Related Services to be supplied shall be as specified in the list
of goods and related services, technical specifications and supply requirements.
17 Delivery and Documents
Subject to GCC Sub-Clause 33.1, the Delivery of the Goods and Completion of
the Related Services shall be in accordance with the Delivery and Completion
Schedule specified in list of goods, related services and technical specifications.
The details of shipping and other documents to be furnished by the Supplier are
18 Supplier’s Responsibilities
18.1 The Supplier shall supply all the Goods and Related Services included in
the Scope of Supply in accordance with GCC Clause 11, and the Delivery and
Completion Schedule, as per GCC Clause 12.
19 Contract Price
19.1 Prices charged by the Supplier for the Goods supplied and the Related
Services performed under the Contract shall not vary from the prices quoted by
the Supplier in its bid, with the exception of any price adjustments authorized
in the SCC.
20 Terms of Payment
20.1 The Contract Price, including any Advance Payments, if applicable, shall
be paid as specified in the SCC.
20.2 The Supplier’s request for payment shall be made to the Procuring Entity
in writing, accompanied by invoices describing, as appropriate, the Goods
delivered and Related Services performed, and by the documents submitted
pursuant to GCC Clause 13 and upon fulfilment of all other obligations
stipulated in the Contract.
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20.3 Payments shall be made promptly by the Purchaser, but in no case later
than forty five (45) days after submission of an invoice or request for payment
by the Supplier, and after the Procuring Entity has accepted it.
20.4 The currencies in which payments shall be made to the Supplier under
this Contract shall be those in which the bid price is expressed. However,
Entities registered in Rwanda or those owned by Rwandan nationals shall only
be paid in Rwanda currency.
20.5 In the event of a disputed invoice, the Procuring Entity shall notify the
supplier in writing of the disputed amount within three (3) days of the invoice
date, specifically identifying the reason for the dispute, and pay all undisputed
amounts owed while the dispute is under negotiation. Upon the resolution of a
disputed invoice, the Procuring Entity shall pay the remaining portions, if any,
of such invoice.
21 Taxes and Duties
21.1 For goods manufactured outside Rwanda, the Supplier shall be entirely
responsible for all taxes, stamp duties, license fees, and other such levies
imposed outside Rwanda.
21.2 For goods Manufactured within Rwanda, the Supplier shall be entirely
responsible for all taxes, duties, license fees, etc., incurred until delivery of the
contracted Goods to the Purchaser.
21.3 If a specific law provides for tax exemptions, reductions, allowances or

privileges the Procuring Entity shall use its best efforts to enable the Supplier
to benefit from any such tax exemptions, reductions, allowances or privileges.
22 Performance Security
22.1 If required in the SCC, within the period specified by the procurement
regulation, the Supplier shall, provide a performance security for the
performance of the Contract in the amount specified in the SCC.
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22.2 The proceeds of the Performance Security shall be payable to the
Procuring Entity as compensation for any loss resulting from the Supplier’s
failure to complete its obligations under the Contract.
22.3 As specified in the SCC, the Performance Security, if required, shall be

denominated in the currency (ies) of the Contract or in a freely convertible
currency acceptable to the Purchaser; and shall be in one of the format
stipulated by the Procuring Entity in the SCC, or in another format acceptable
to the Purchaser.
22.4 The Performance Security shall be discharged by the Procuring Entity and
returned to the Supplier in two phases. The first half shall be returned within
thirty (30) days following provisional acceptance of goods (if there is any), and
the second half shall be returned within thirty (30) days following the final
acceptance of goods.
23 Copyright
23.1 The copyright in all drawings, documents, and other materials containing
data and information furnished to the Procuring Entity by the Supplier herein
shall remain vested in the Supplier, or, if they are furnished to the Procuring
Entity directly or through the Supplier by any third party, including suppliers
of materials, the copyright in such materials shall remain vested in such third
party
24 Confidential Information
24.1 The Procuring Entity and the Supplier shall keep confidentiality and shall
not, without the written consent of the other party hereto, divulge to any third
party any documents, data, or other information furnished directly or indirectly
by the other party hereto in connection with the Contract, whether such
information has been furnished prior to, during or following completion or
termination of the Contract. Notwithstanding the above, the Supplier may
furnish to its Subcontractor such documents, data, and other information it
receives from the Procuring Entity to the extent required for the Subcontractor
to perform its work under the Contract, in which event the Supplier shall obtain
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from such Subcontractor an undertaking of confidentiality similar to that
imposed on the Supplier under GCC Clause 19.
24.2 The Procuring Entity shall not use such documents, data, and other
information received from the Supplier for any purposes unrelated to the
contract. Similarly, the Supplier shall not use such documents, data, and other
information received from the Procuring Entity for any purpose other than the
performance of the Contract.
24.3 The obligation of a party under GCC Sub-Clauses 19.1 and 19.2 above,
however, shall not apply to information that:
(a) The Procuring Entity or Supplier need to share with RPPA or other
institutions participating in the financing of the Contract;
(b) Now or hereafter enters the public domain through no fault of that party;
(c) Can be proven to have been possessed by that party at the time of disclosure
and which was not previously obtained, directly or indirectly, from the other
party; or
(d) Otherwise lawfully becomes available to that party from a third party that
has no obligation of confidentiality.
24.4 The above provisions of GCC Clause 19 shall not in any way modify any
undertaking of confidentiality given by either of the parties hereto prior to the
date of the Contract in respect of the Supply or any part thereof.
24.5 The provisions of GCC Clause 19 shall survive completion or termination,

for whatever reason, of the Contract.
25 Subcontracting
25.1 The Supplier shall notify the Procuring Entity in writing of all
subcontracts awarded under the Contract if not already specified in the bid.
Such notification, in the original bid or later shall not relieve the Supplier from
any of its obligations, duties, responsibilities, or liability under the Contract.
25.2 Subcontracts shall comply with the provisions of GCC Clauses 5 and 12.
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26 Specifications and Standards
26.1 Technical Specifications and Drawings:
(a) The Goods and Related Services supplied under this Contract shall conform
to the technical specifications and standards mentioned in Section V,
Schedule of Requirements and, when no applicable standard is mentioned,
the standard shall be equivalent or superior to the official standards whose
application is appropriate to the Goods’ country of origin.
(b) The Supplier shall be entitled to disclaim responsibility for any design, data,
drawing, specification or other document, or any modification thereof
provided or designed by or on behalf of the Procuring Entity, by giving a
notice of such disclaimer to the Purchaser.
(c) Wherever references are made in the Contract to codes and standards in
accordance with which it shall be executed, the edition or the revised version
of such codes and standards shall be those specified in the Schedule of
Requirements. During Contract execution, any changes in any such codes
and standards shall be applied only after approval by the Procuring Entity
and shall be treated in accordance with GCC Clause 33.
27 Packing and Documents
27.1 The Supplier shall provide such packing of the Goods as is required to
prevent their damage or deterioration during transit to their final destination,
as indicated in the Contract. During transit, the packing shall be sufficient to
withstand, without limitation, rough handling and exposure to extreme
temperatures, salt and precipitation, and open storage. Packing case size and
weights shall take into consideration, where appropriate, the remoteness of the
goods’ final destination and the absence of heavy handling facilities at all points
in transit.
27.2 The packing, marking, and documentation within and outside the
packages shall comply strictly with such special requirements as shall be
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expressly provided for in the Contract, including additional requirements, if any,
specified in the SCC, and in any other instructions ordered by the Purchaser.
28 Insurance
28.1 Unless otherwise specified in the SCC, the Goods supplied under the
Contract shall be fully insured—in a freely convertible currency—against loss
or damage incidental to manufacture or acquisition, transportation, storage,
and delivery, in accordance with the applicable INCOTERMS or in the manner
29 Transportation
29.1 Unless otherwise specified in the SCC, responsibility for arranging

transportation of the Goods shall be in accordance with the specified
INCOTERMS.
30 Inspections and Tests
30.1 The Supplier shall at its own expense and at no cost to the Procuring
Entity carry out all such tests and/or inspections of the Goods and Related
Services as are specified in the SCC.
30.2 The inspections and tests may be conducted on the premises of the
Supplier or its Subcontractor, at point of delivery, and/or at the Goods’ final
destination, or in another place in Rwanda as specified in the SCC. Subject to
GCC Sub-Clause 25.3, if conducted on the premises of the Supplier or its
Subcontractor, all reasonable facilities and assistance, including access to
drawings and production data, shall be furnished to the inspectors at no charge
to the Purchaser.
30.3 The Procuring Entity or its designated representative shall be entitled to

attend the tests and/or inspections referred to in GCC Sub-Clause 25.2,
provided that the Procuring Entity bear all of its own costs and expenses
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incurred in connection with such attendance including, but not limited to, all
travelling and board and lodging expenses.
30.4 Whenever the Supplier is ready to carry out any such test and inspection,
it shall give a reasonable advance notice, including the place and time, to the
Purchaser. The Supplier shall obtain from any relevant third party or
manufacturer any necessary permission or consent to enable the Procuring
Entity or its designated representative to attend the test and/or inspection.
30.5 The Procuring Entity may require the Supplier to carry out any test
and/or inspection not required by the Contract but deemed necessary to verify
that the characteristics and performance of the Goods comply with the technical
specifications codes and standards under the Contract, provided that the
Supplier’s reasonable costs and expenses incurred in the carrying out of such
test and/or inspection shall be added to the Contract Price. Further, if such test
and/or inspection impedes the progress of manufacturing and/or the Supplier’s
performance of its other obligations under the Contract, due allowance will be
made in respect of the Delivery Dates and Completion Dates and the other
obligations so affected.
30.6 The Supplier shall provide the Procuring Entity with a report of the results
of any such test and/or inspection.
30.7 The Procuring Entity may reject any Goods or any part thereof that fail to
pass any test and/or inspection or do not conform to the specifications. The
Supplier shall either rectify or replace such rejected Goods or parts thereof or
make alterations necessary to meet the specifications at no cost to the
Purchaser, and shall repeat the test and/or inspection, at no cost to the
Purchaser, upon giving a notice pursuant to GCC Sub-Clause 25.4.
30.8 The Supplier agrees that neither the execution of a test and/or inspection
of the Goods or any part thereof, nor the attendance by the Procuring Entity or
its representative, nor the issue of any report pursuant to GCC Sub-Clause
25.6, shall release the Supplier from any warranties or other obligations under
the Contract.
31 Liquidated Damages
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31.1 If the Supplier fails to deliver by the Date(s) of delivery period specified in
the Contract, the purchaser may without prejudice to other available remedies
for the purchaser, deduct from the Contract Price, as liquidated damages, a sum
equivalent to 1‰ of the total of the contract price for each day of delay until
actual delivery or performance, up to a maximum deduction of the 5% of the
contract price. Once the maximum is reached, the purchaser may terminate the
contract or extend its duration until full completion. However such extension of
the contract shall not exceed the period specified in SCC and penalties shall
continue to accrue until full completion of the contract or termination.
32 Warranty
32.1 The Supplier warrants that all the Goods are new, unused, and of the
most recent or current models, and that they incorporate all recent
improvements in design and materials, unless provided otherwise in the
Contract.
32.2 Subject to GCC Sub-Clause 21(b), the Supplier further warrants that the
Goods shall be free from defects arising from any act or omission of the Supplier
or arising from design, materials, and workmanship, under normal use in the
conditions prevailing in the country of final destination.
32.3 Unless otherwise specified in the SCC, the warranty shall remain valid for
twelve (12) months after the Goods, or any portion thereof as the case may be,
have been delivered to and accepted at the final destination indicated in the
SCC, or for eighteen (18) months after the date of shipment from the port or
place of loading in the country of origin, whichever period concludes earlier.
32.4 In case of any defect the Procuring Entity shall give notice to the Supplier
stating the nature of any such defects together with all available evidence
thereof, promptly following the discovery thereof. The Procuring Entity shall
afford all reasonable opportunity for the Supplier to inspect such defects.
32.5 Upon receipt of such notice, the Supplier shall, within the period specified
in the SCC, expeditiously repair or replace the defective Goods or parts thereof,
at no cost to the Purchaser.
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32.6 If having been notified, the Supplier fails to remedy the defect within the
period specified in the SCC, the Procuring Entity may proceed to take within a
reasonable period such remedial action as may be necessary, at the Supplier’s
risk and expense and without prejudice to any other rights which the Procuring
Entity may have against the Supplier under the Contract.
33 Patent Indemnity
33.1 The Supplier shall, subject to the Procuring Entity’s compliance with GCC
Sub-Clause 28.2, indemnify and hold harmless the Procuring Entity and its
employees and officers from and against any and all suits, actions or
administrative proceedings, claims, demands, losses, damages, costs, and
expenses of any nature, including attorney’s fees and expenses, which the
Procuring Entity may suffer as a result of any infringement or alleged
infringement of any patent, utility model, registered design, trademark,
copyright, or other intellectual property right registered or otherwise existing at
the date of the Contract by reason of:
(a) the installation of the Goods by the Supplier or the use of the Goods in the
country where the Site is located; and
(b) the sale in any country of the products produced by the Goods.
33.2 Such indemnity shall not cover any use of the Goods or any part thereof
other than for the purpose indicated by or to be reasonably inferred from the
Contract, neither any infringement resulting from the use of the Goods or any
part thereof, or any products produced thereby in association or combination
with any other equipment, plant, or materials not supplied by the Supplier,
pursuant to the Contract.
33.3 If any proceedings are brought or any claim is made against the Procuring
Entity arising out of the matters referred to in GCC Sub-Clause 28.1, the
Procuring Entity shall promptly give the Supplier a notice thereof, and the
Supplier may at its own expense and in the Procuring Entity’s name conduct
such proceedings or claim and any negotiations for the settlement of any such
proceedings or claim.
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33.4 If the Supplier fails to notify the Procuring Entity within thirty (30) days
after receipt of such notice that it intends to conduct any such proceedings or
claim, then the Procuring Entity shall be free to conduct the same on its own
behalf.
33.5 The Procuring Entity shall, at the Supplier’s request, afford all available
assistance to the Supplier in conducting such proceedings or claim, and shall
be reimbursed by the Supplier for all reasonable expenses incurred in so doing.
33.6 The Procuring Entity shall indemnify and hold harmless the Supplier and
its employees, officers, and Subcontractors from and against any and all suits,
actions or administrative proceedings, claims, demands, losses, damages, costs,
and expenses of any nature, including attorney’s fees and expenses, which the
Supplier may suffer as a result of any infringement or alleged infringement of
any patent, utility model, registered design, trademark, copyright, or other
intellectual property right registered or otherwise existing at the date of the
Contract arising out of or in connection with any design, data, drawing,
specification, or other documents or materials provided or designed by or on
behalf of the Procuring Entity.
34 Limitation of Liability
34.1 Except in cases of criminal negligence or wilful misconduct,
(a) the Supplier shall not be liable to the Procuring Entity, whether in contract,
tort, or otherwise, for any indirect or consequential loss or damage, loss of
use, loss of production, or loss of profits or interest costs, provided that this
exclusion shall not apply to any obligation of the Supplier to pay liquidated
damages to the Procuring Entity and
(b) the aggregate liability of the Supplier to the Procuring Entity, whether under
the Contract, in tort or otherwise, shall not exceed the total Contract Price,
provided that this limitation shall not apply to the cost of repairing or
replacing defective equipment, or to any obligation of the supplier to
indemnify the Procuring Entity with respect to patent infringement
35 Change in Laws and Regulations
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35.1 If after the deadline for submitting bids any law, regulation, ordinance,
order or bylaw having the force of law is enacted, promulgated, abrogated, or
changed in the place of Rwanda where the Site is located (which shall be deemed
to include any change in interpretation or application by the competent
authorities) that subsequently affects the Delivery Date and/or the Contract
Price, then such Delivery Date and/or Contract Price shall be correspondingly
increased or decreased, to the extent that the Supplier has thereby been affected
in the performance of any of its obligations under the Contract.
Paid or credited if the same has already been accounted for in the price
adjustment provisions where applicable, in accordance with GCC Clause 14.
35.2 Notwithstanding the foregoing, such additional or reduced cost shall not
be separately Except in case of Force Majeure, as provided under GCC Clause
31, a delay by the Supplier in the performance of its Delivery and Completion
obligations shall render the Supplier liable to the imposition of liquidated
damages pursuant to GCC Clause 25, unless an extension of time is agreed
upon, pursuant to GCC Sub-Clause 33.1.
36 Force Majeure
36.1 The Supplier shall not be liable for forfeiture of its Performance Security,
liquidated damages, or termination for default if and to the extent that its delay
in performance or other failure to perform its obligations under the Contract is
the result of an event of Force Majeure.
36.2 If a Force Majeure situation arises, the Supplier shall promptly notify the
Purchaser in writing within five (5) days of such condition and the cause thereof.
The party claiming Force Majeure shall use its persistent, good faith and
commercially reasonable efforts to overcome the event of Force Majeure. Unless
otherwise directed by the Purchaser in writing, the Supplier shall continue to
perform its obligations under the Contract as far as is reasonably practical, and
shall seek all reasonable alternative means for performance not prevented by
the Force Majeure event.
37 Change Orders and Contract Amendments
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37.1 The Procuring Entity may at any time order the Supplier, through notice
in accordance GCC Clause 8, to make changes within the general scope of the
Contract in any one or more of the following:
(a) drawings, designs, or specifications, where Goods to be furnished under the

Contract are to be specifically manufactured for the Purchaser;
(b) the method of shipment or packing;
(c) the place of delivery; and
(d) the Related Services to be provided by the Supplier.
37.1 If any such change causes an increase or decrease in the cost of, or the
time required for, the Supplier’s performance of any provisions under the
Contract, an equitable adjustment shall be made in the Contract Price or in the
Delivery/Completion Schedule, or both, and the Contract shall accordingly be
amended. Any claims by the Supplier for adjustment under this Clause must
be asserted within thirty (30) days from the date of the Supplier’s receipt of the
Procuring Entity’s change order.
37.2 Prices to be charged by the Supplier for any Related Services that might
be needed but which were not included in the Contract shall be agreed upon in
advance by the parties and shall not exceed the prevailing rates charged to other
parties by the Supplier for similar services.
37.3 Subject to the above, no variation in or modification of the terms of the

Contract shall be made except by written amendment signed by the parties and
in the limits provided for by the law on public procurement as modified and
completed to date.
38 Extensions of Time
38.1 If at any time during performance of the Contract but not later the period
specified in SCC, the Supplier or its subcontractors should encounter
conditions impeding timely delivery of the Goods or completion of Related
Services pursuant to GCC Clause 12, the Supplier shall promptly notify the
Procuring Entity in writing of the delay, its likely duration, and its cause. As
soon as practicable after receipt of the Supplier’s notice, the Procuring Entity
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shall evaluate the situation and may at its discretion extend the Supplier’s time
for performance, in which case the extension shall be ratified by the parties by
amendment of the Contract. Unless and until the Supplier receives a notification
of the new extended delivery date, there shall be no extension to the date.
39 Termination
39.1 Termination for Default
(1) The Procuring Entity, without prejudice to any other remedy for breach of
Contract, by written notice of default sent to the Supplier, may terminate
the Contract in whole or in part:
(a) if the Supplier fails to deliver any or all of the Goods within the period
specified in the Contract, or within any extension thereof granted by
the Procuring Entity pursuant to GCC Clause 33;
(b) if the Supplier fails to perform any other obligation under the Contract;
or
(c) if the Supplier, in the judgment of the Procuring Entity has engaged in
fraud and corruption, as defined in GCC Clause 3, in competing for or
in executing the Contract.
(2) In the event the Procuring Entity terminates the Contract in whole or in
part, pursuant to GCC Clause 34.1(a), the Procuring Entity may procure,
upon such terms and in such manner as it deems appropriate, Goods or
Related Services similar to those undelivered or not performed, and the
Supplier shall be liable to the Procuring Entity for any additional costs for
such similar Goods or Related Services. However, the Supplier shall
continue performance of the Contract to the extent not terminated.
39.2 Termination for Insolvency.
The Procuring Entity may at any time terminate the Contract by giving notice to
the Supplier if the Supplier becomes bankrupt or otherwise insolvent. In such
event, termination will be without compensation to the Supplier, provided that
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such termination will not prejudice or affect any right of action or remedy that
has accrued or will accrue thereafter to the Purchaser
39.3 Termination for Convenience.
(1) The Procuring Entity, by notice sent to the Supplier, may terminate the
Contract, in whole or in part, at any time for its convenience. The notice of
termination shall specify that termination is for the Procuring Entity’s
convenience, the extent to which performance of the Supplier under the
Contract is terminated, and the date upon which such termination becomes
effective.
(2) The Goods that are complete and ready for shipment within thirty (30) days
after the Supplier’s receipt of notice of termination shall be accepted by the
Procuring Entity at the Contract terms and prices. For the remaining Goods,
the Procuring Entity may elect:
(a) to have any portion completed and delivered at the Contract terms and
prices; and/or
(b) to cancel the remainder and pay to the Supplier an agreed amount for
partially completed Goods and Related Services and for materials and
parts previously procured by the Supplier.
40 Assignment
Neither the Procuring Entity nor the Supplier shall assign, in whole or in part,
their obligations under this Contract, except with prior written consent of the
other party.
41 Export Restriction
Notwithstanding any obligation under the Contract to complete all export

formalities, any export restrictions attributable to the Procuring Entity, to
Rwanda, or to the use of the products/goods, systems or services to be supplied,
which arise from trade regulations from a country supplying those
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products/goods, systems or services, and which substantially impede the
Supplier from meeting its obligations under the Contract, shall release the
Supplier from the obligation to provide deliveries or services, always provided,
however, that the Supplier can demonstrate to the satisfaction of the Procuring
Entity and of RPPA that it has completed all formalities in a timely manner,
including applying for permits, authorizations and licenses necessary for the
export of the products/goods, systems or services under the terms of the
Contract. Termination of the Contract on this basis shall be for the purchaser’s
convenience pursuant to Sub-Clause 39.3.
1. Object of the Contract
1.1 The object of this Contract is to supply to the Procuring Entity the goods
and related services as specified in the list of goods and related services,
technical specifications and supply requirements.
2. Definitions
2.1 The following words and expressions shall have the meanings hereby
assigned to them:
1. “Contract” means the Contract Agreement entered into between the

Procuring Entity and the Supplier, together with the Contract
Documents referred to therein, including all attachments, appendices,
and all documents incorporated by reference therein.
2. “Contract Documents” means the documents listed in the Contract

3. “Contract Price” means the price payable to the Supplier as specified in

the Contract Agreement, subject to such additions and adjustments
thereto or deductions therefrom, as may be made pursuant to the
Contract.
4. “Day” means calendar day unless provided otherwise.
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5. “Completion” means the fulfilment of the Related Services by the
Supplier in accordance with the terms and conditions set forth in the
Contract.
6. “Force majeure” means an event or situation beyond the control of the

Supplier that is not foreseeable, is unavoidable, and its origin is not due
to negligence or lack of care on the part of the Supplier. Such events
may include, but not be limited to, acts of the Procuring Entity in its
sovereign capacity, wars or revolutions, fires, floods, epidemics,
quarantine restrictions, and freight embargoes.
7. “GCC” means the General Conditions of Contract.
8. “Goods” means all of the commodities, raw material, machinery and

equipment, and/or other materials that the Supplier is required to
supply to the Procuring Entity under the Contract.
9. “Procuring Entity” means the entity purchasing the Goods and Related
Services, as specified in the SCC.
10. “Related Services” means the services incidental to the supply of the
goods, such as insurance, installation, training and initial maintenance
and other such obligations of the Supplier under the Contract.
11. “SCC” means the Special Conditions of Contract.
12. “Subcontractor” means any natural person, private or government

entity, or a combination of the above, to whom any part of the Goods to
be supplied or execution of any part of the Related Services is
subcontracted by the Supplier.
13. “Supplier” means the natural person, private or government entity, or a

combination of the above, whose bid to perform the Contract has been
accepted by the Procuring Entity and is named as such in the Contract
Agreement.
14. “The Project Site,” where applicable, means the place named in the SCC.
3. Interpretation
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3.1 If the context so requires it, masculine also means feminine, singular also
means plural and vice versa.
3 Incoterms
Unless inconsistent with any provision of the Contract, the meaning of any trade
term and the rights and obligations of parties thereunder shall be as prescribed
by INCOTERMS;
The terms EXW, CIP, FCA, CFR and other similar terms, when used, shall be
governed by the rules prescribed in the current edition of INCOTERMS specified
in the SCC and published by the International Chamber of Commerce in Paris,
France.
4 Contract Documents
Subject to the order of precedence set forth in the Contract Agreement, all
documents forming the Contract (and all parts thereof) are intended to be
correlative, complementary, and mutually explanatory. The Contract Agreement
shall be read as a whole.
5 Fraud and Corruption
5.1 If the Procuring Entity determines that the Supplier has engaged in corrupt,
fraudulent, collusive, coercive or obstructive practices, in competing for or in
executing the Contract, then the Procuring Entity may, after giving 14 days’
notice to the Supplier, terminate the Supplier's employment under the Contract
and cancel the contract, and the provisions of Clause 3.1 of IS shall apply. For
the purposes of this Sub-Clause:
1 “corrupt practice”1 means the offering, giving, receiving, or soliciting,

directly or indirectly, of anything of value to influence a civil servant or
Government entity the action of a public official in the procurement
process or in contract execution;

1
“another party” refers to a public official acting in relation to the procurement process or contract
execution]. In this context, “public official” includes World Bank staff and employees of other
organizations taking or reviewing procurement decisions.
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2 “fraudulent practice”2 means any act or omission, including a
mislead a civil servant to obtain a financial or other benefit or to avoid an
obligation or omission of facts in order to influence a procurement process
or the execution of a contract;
3 “collusive practice”3 means arrangement between two or more parties

designed to achieve an improper purpose, including influencing another
party or the civil servant Bidders, with or without the knowledge of the
Procuring Entity, designed to establish bid prices at artificial, non-
competitive levels; and
4 “coercive practice”4 means any act intending to harm or threaten to harm

directly or indirectly persons, their works or their property to influence
their participation in the procurement process or affect its performance
harming or threatening to harm, directly or indirectly, persons or their
property to influence their participation in the procurement process or
affect the execution of a contract;
5 “obstructive practice” is;
deliberately destroying, falsifying, altering or concealing of evidence material to

the investigation or making false statements to investigators in order to
materially impede an investigation into allegations of a corrupt, fraudulent,
coercive or collusive practice; and/or threatening, harassing or intimidating any
party to prevent it from disclosing its knowledge of matters relevant to the
investigation or from pursuing the investigation; or
acts intended to materially impede the exercise of RPPA’s inspection and audit
rights provided for under Clause 10 [Inspections and Audits by RPPA].

2
a “party” refers to a public official; the terms “benefit” and “obligation” relate to the procurement
process or contract execution; and the “act or omission” is intended to influence the procurement
process or contract execution.
3
“parties” refers to participants in the procurement process (including public officials) attempting to
establish bid prices at artificial, non competitive levels.
4
a “party” refers to a participant in the procurement process or contract execution.
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5.2 Should any employee of the Supplier be determined to have engaged in
corrupt, fraudulent, collusive, coercive, or obstructive practice during the
purchase of the Goods, then that employee shall be removed.
6 Entire Agreement
date of Contract.
7 Amendment
7.1 No amendment or other variation of the Contract shall be valid unless it is

in writing, is dated, expressly refers to the Contract, and is signed by a duly
authorized representative of each party thereto.
7.2 The amendment shall not affect the substance and the nature of the original
Contract, and any amendment increasing 20% of the Contract shall require a
new tender.
8 No waiver
8.1 Subject to GCC Sub-Clause 4.5(b) below, no relaxation, forbearance, delay,

or indulgence by either party in enforcing any of the terms and conditions of the
Contract or the granting of time by either party to the other shall prejudice,
affect, or restrict the rights of that party under the Contract, neither shall any
waiver by either party of any breach of Contract operate as waiver of any
subsequent or continuing breach of Contract.
Any waiver of a party’s rights, powers, or remedies under the Contract must be
in writing, dated, and signed by an authorized representative of the party
granting such waiver, and must specify the right and the extent to which it is
being waived.
9 Severability

Page | 346

Contract.
10 Language
10.1 The Contract as well as all correspondence and documents relating to the
Contract exchanged by the Supplier and the Purchaser, shall be written in the
language specified in the SCC. Supporting documents and printed literature
that are part of the Contract may be in another language provided they are
accompanied by an accurate translation of the relevant passages in the
language specified, in which case, for purposes of interpretation of the Contract,
this translation shall govern.
The Supplier shall bear all costs of translation to the governing language and
Supplier.
11 Joint Venture, Consortium or Association
If the Supplier is a joint venture, consortium, or association, all of the parties

shall be jointly and severally liable to the Procuring Entity for the fulfilment of
the provisions of the Contract and shall designate one party to act as a leader
with authority to bind the joint venture, consortium, or association. The lead
company serving as the authorized representative of others shall provide as part
of their bid a written agreement confirming its representation and the scope of
its powers. The composition or the constitution of the joint venture, consortium,
or association shall not be altered without the prior consent of the Procuring
Entity.
12 Notices
Any notice given by one party to the other pursuant to the Contract shall be in
writing to the address specified in the SCC. The term “in writing” means
communicated in written form with proof of receipt.
A notice shall be effective when delivered or on the notice’s effective date,

whichever is later.
13 Governing Law
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The Contract shall be governed by and interpreted in accordance with the laws
of Rwanda.
14 Settlement of Disputes
14.1 Amicable Settlement
The Parties shall use their best efforts to settle amicably all disputes arising out
of or in connection with this Contract or the interpretation thereof.
Other ways of dispute settlement
Any dispute between the Parties as to matters arising pursuant to this Contract
which cannot be settled amicably within thirty (30) days after receipt by one
Party of the other Party’s request for such amicable settlement may be
submitted by either Party for settlement in accordance with the provisions
15. Inspections and Audit by RPPA
The Supplier shall permit RPPA and/or persons appointed by RPPA to inspect
the Supplier’s offices and/or the accounts and records of the Supplier and its
sub-contractors relating to the performance of the Contract, and to have such
accounts and records audited by auditors appointed by RPPA if required by
RPPA. The Supplier’s attention is drawn to Clause 3, which provides, inter alia,
that acts intended to materially impede the exercise of RPPA’s inspection and
audit rights provided for under Clause 10 constitute a prohibited practice
subject to contract termination as well as to be excluded from participating in
public procurement.
16. Scope of Supply
The Goods and Related Services to be supplied shall be as specified in the list
of goods and related services, technical specifications and supply requirements.
17 Delivery and Documents
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Subject to GCC Sub-Clause 33.1, the Delivery of the Goods and Completion of
the Related Services shall be in accordance with the Delivery and Completion
Schedule specified in list of goods, related services and technical specifications.
The details of shipping and other documents to be furnished by the Supplier are
17. Supplier’s Responsibilities
18.1 The Supplier shall supply all the Goods and Related Services included in
the Scope of Supply in accordance with GCC Clause 11, and the Delivery and
Completion Schedule, as per GCC Clause 12.
18. Contract Price
19.1 Prices charged by the Supplier for the Goods supplied and the Related
Services performed under the Contract shall not vary from the prices quoted by
the Supplier in its bid, with the exception of any price adjustments authorized
in the SCC.
19. Terms of Payment
The Contract Price, including any Advance Payments, if applicable, shall be paid
as specified in the SCC.
The Supplier’s request for payment shall be made to the Procuring Entity in
writing, accompanied by invoices describing, as appropriate, the Goods
delivered and Related Services performed, and by the documents submitted
pursuant to GCC Clause 13 and upon fulfilment of all other obligations
stipulated in the Contract.
Payments shall be made promptly by the Purchaser, but in no case later than
forty five (45) days after submission of an invoice or request for payment by the
Supplier, and after the Procuring Entity has accepted it.
The currencies in which payments shall be made to the Supplier under this
Contract shall be those in which the bid price is expressed. However, Entities
registered in Rwanda or those owned by Rwandan nationals shall only be paid
in Rwanda currency.
Page | 349

In the event of a disputed invoice, the Procuring Entity shall notify the supplier
in writing of the disputed amount within three (3) days of the invoice date,
specifically identifying the reason for the dispute, and pay all undisputed
amounts owed while the dispute is under negotiation. Upon the resolution of a
disputed invoice, the Procuring Entity shall pay the remaining portions, if any,
of such invoice.
20. Taxes and Duties
For goods manufactured outside Rwanda, the Supplier shall be entirely

responsible for all taxes, stamp duties, license fees, and other such levies
imposed outside Rwanda.
For goods Manufactured within Rwanda, the Supplier shall be entirely

responsible for all taxes, duties, license fees, etc., incurred until delivery of the
contracted Goods to the Purchaser.
If a specific law provides for tax exemptions, reductions, allowances or privileges

the Procuring Entity shall use its best efforts to enable the Supplier to benefit
from any such tax exemptions, reductions, allowances or privileges.
21. Performance Security
If required in the SCC, within the period specified by the procurement

regulation, the Supplier shall, provide a performance security for the
performance of the Contract in the amount specified in the SCC.
The proceeds of the Performance Security shall be payable to the Procuring

Entity as compensation for any loss resulting from the Supplier’s failure to
complete its obligations under the Contract.
As specified in the SCC, the Performance Security, if required, shall be

denominated in the currency (ies) of the Contract or in a freely convertible
currency acceptable to the Purchaser; and shall be in one of the format
stipulated by the Procuring Entity in the SCC, or in another format acceptable
to the Purchaser.
The Performance Security shall be discharged by the Procuring Entity and

returned to the Supplier in two phases. The first half shall be returned within
thirty (30) days following provisional acceptance of goods (if there is any), and
Page | 350

the second half shall be returned within thirty (30) days following the final
acceptance of goods.
22. Copyright
23.1 The copyright in all drawings, documents, and other materials containing
data and information furnished to the Procuring Entity by the Supplier herein
shall remain vested in the Supplier, or, if they are furnished to the Procuring
Entity directly or through the Supplier by any third party, including suppliers
of materials, the copyright in such materials shall remain vested in such third
party.
23. Confidential Information
The Procuring Entity and the Supplier shall keep confidentiality and shall not,
without the written consent of the other party hereto, divulge to any third party
any documents, data, or other information furnished directly or indirectly by
the other party hereto in connection with the Contract, whether such
information has been furnished prior to, during or following completion or
termination of the Contract. Notwithstanding the above, the Supplier may
furnish to its Subcontractor such documents, data, and other information it
receives from the Procuring Entity to the extent required for the Subcontractor
to perform its work under the Contract, in which event the Supplier shall obtain
from such Subcontractor an undertaking of confidentiality similar to that
imposed on the Supplier under GCC Clause 19.
The Procuring Entity shall not use such documents, data, and other information
received from the Supplier for any purposes unrelated to the contract. Similarly,
the Supplier shall not use such documents, data, and other information
received from the Procuring Entity for any purpose other than the performance
of the Contract.
The obligation of a party under GCC Sub-Clauses 19.1 and 19.2 above, however,
shall not apply to information that:
The Procuring Entity or Supplier need to share with RPPA or other institutions
participating in the financing of the Contract;
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Now or hereafter enters the public domain through no fault of that party;
Can be proven to have been possessed by that party at the time of disclosure
and which was not previously obtained, directly or indirectly, from the other
party; or
Otherwise lawfully becomes available to that party from a third party that has
no obligation of confidentiality.
The above provisions of GCC Clause 19 shall not in any way modify any
undertaking of confidentiality given by either of the parties hereto prior to the
date of the Contract in respect of the Supply or any part thereof.
The provisions of GCC Clause 19 shall survive completion or termination, for

whatever reason, of the Contract.
24. Subcontracting
The Supplier shall notify the Procuring Entity in writing of all subcontracts
awarded under the Contract if not already specified in the bid. Such notification,
in the original bid or later shall not relieve the Supplier from any of its
obligations, duties, responsibilities, or liability under the Contract.
Subcontracts shall comply with the provisions of GCC Clauses 5 and 12.
25. Specifications and Standards
26.1 Technical Specifications and Drawings:
The Goods and Related Services supplied under this Contract shall conform to
the technical specifications and standards mentioned in Section V, Schedule of
Requirements and, when no applicable standard is mentioned, the standard
shall be equivalent or superior to the official standards whose application is
appropriate to the Goods’ country of origin.
The Supplier shall be entitled to disclaim responsibility for any design, data,
drawing, specification or other document, or any modification thereof provided
or designed by or on behalf of the Procuring Entity, by giving a notice of such
disclaimer to the Purchaser.
Wherever references are made in the Contract to codes and standards in

accordance with which it shall be executed, the edition or the revised version of
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such codes and standards shall be those specified in the Schedule of
Requirements. During Contract execution, any changes in any such codes and
standards shall be applied only after approval by the Procuring Entity and shall
be treated in accordance with GCC Clause 33.
26. Packing and Documents
The Supplier shall provide such packing of the Goods as is required to prevent
their damage or deterioration during transit to their final destination, as
indicated in the Contract. During transit, the packing shall be sufficient to
withstand, without limitation, rough handling and exposure to extreme
temperatures, salt and precipitation, and open storage. Packing case size and
weights shall take into consideration, where appropriate, the remoteness of the
goods’ final destination and the absence of heavy handling facilities at all points
in transit.
The packing, marking, and documentation within and outside the packages
shall comply strictly with such special requirements as shall be expressly
provided for in the Contract, including additional requirements, if any, specified
in the SCC, and in any other instructions ordered by the Purchaser.
27. Insurance
Unless otherwise specified in the SCC, the Goods supplied under the Contract
shall be fully insured—in a freely convertible currency—against loss or damage
incidental to manufacture or acquisition, transportation, storage, and delivery,
in accordance with the applicable INCOTERMS or in the manner specified in the
SCC.
28. Transportation
Unless otherwise specified in the SCC, responsibility for arranging

transportation of the Goods shall be in accordance with the specified
INCOTERMS.
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29. Inspections and Tests
The Supplier shall at its own expense and at no cost to the Procuring Entity
carry out all such tests and/or inspections of the Goods and Related Services
as are specified in the SCC.
The inspections and tests may be conducted on the premises of the Supplier or
its Subcontractor, at point of delivery, and/or at the Goods’ final destination, or
in another place in Rwanda as specified in the SCC. Subject to GCC Sub-Clause
25.3, if conducted on the premises of the Supplier or its Subcontractor, all
reasonable facilities and assistance, including access to drawings and
production data, shall be furnished to the inspectors at no charge to the
Purchaser.
The Procuring Entity or its designated representative shall be entitled to attend

the tests and/or inspections referred to in GCC Sub-Clause 25.2, provided that
the Procuring Entity bear all of its own costs and expenses incurred in
connection with such attendance including, but not limited to, all travelling and
board and lodging expenses.
Whenever the Supplier is ready to carry out any such test and inspection, it
shall give a reasonable advance notice, including the place and time, to the
Purchaser. The Supplier shall obtain from any relevant third party or
manufacturer any necessary permission or consent to enable the Procuring
Entity or its designated representative to attend the test and/or inspection.
The Procuring Entity may require the Supplier to carry out any test and/or
inspection not required by the Contract but deemed necessary to verify that the
characteristics and performance of the Goods comply with the technical
specifications codes and standards under the Contract, provided that the
Supplier’s reasonable costs and expenses incurred in the carrying out of such
test and/or inspection shall be added to the Contract Price. Further, if such test
and/or inspection impedes the progress of manufacturing and/or the Supplier’s
performance of its other obligations under the Contract, due allowance will be
made in respect of the Delivery Dates and Completion Dates and the other
obligations so affected.
The Supplier shall provide the Procuring Entity with a report of the results of
any such test and/or inspection.
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The Procuring Entity may reject any Goods or any part thereof that fail to pass
any test and/or inspection or do not conform to the specifications. The Supplier
shall either rectify or replace such rejected Goods or parts thereof or make
alterations necessary to meet the specifications at no cost to the Purchaser, and
shall repeat the test and/or inspection, at no cost to the Purchaser, upon giving
a notice pursuant to GCC Sub-Clause 25.4.
The Supplier agrees that neither the execution of a test and/or inspection of the
Goods or any part thereof, nor the attendance by the Procuring Entity or its
representative, nor the issue of any report pursuant to GCC Sub-Clause 25.6,
shall release the Supplier from any warranties or other obligations under the
Contract.
30. Liquidated Damages
31.1 If the Supplier fails to deliver by the Date(s) of delivery period specified in
the Contract, the purchaser may without prejudice to other available remedies
for the purchaser, deduct from the Contract Price, as liquidated damages, a sum
equivalent to 1‰ of the total of the contract price for each day of delay until
contract price. Once the maximum is reached, the purchaser may terminate the
contract or extend its duration until full completion. However such extension of
the contract shall not exceed the period specified in SCC and penalties shall
continue to accrue until full completion of the contract or termination.
31. Warranty
The Supplier warrants that all the Goods are new, unused, and of the most
recent or current models, and that they incorporate all recent improvements in
design and materials, unless provided otherwise in the Contract.
Subject to GCC Sub-Clause 21(b), the Supplier further warrants that the Goods
shall be free from defects arising from any act or omission of the Supplier or
arising from design, materials, and workmanship, under normal use in the
conditions prevailing in the country of final destination.
Unless otherwise specified in the SCC, the warranty shall remain valid for twelve
(12) months after the Goods, or any portion thereof as the case may be, have
been delivered to and accepted at the final destination indicated in the SCC, or
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for eighteen (18) months after the date of shipment from the port or place of
loading in the country of origin, whichever period concludes earlier.
In case of any defect the Procuring Entity shall give notice to the Supplier stating
the nature of any such defects together with all available evidence thereof,
promptly following the discovery thereof. The Procuring Entity shall afford all
reasonable opportunity for the Supplier to inspect such defects.
Upon receipt of such notice, the Supplier shall, within the period specified in
the SCC, expeditiously repair or replace the defective Goods or parts thereof, at
no cost to the Purchaser.
If having been notified, the Supplier fails to remedy the defect within the period
specified in the SCC, the Procuring Entity may proceed to take within a
reasonable period such remedial action as may be necessary, at the Supplier’s
risk and expense and without prejudice to any other rights which the Procuring
Entity may have against the Supplier under the Contract.
32. Patent Indemnity
The Supplier shall, subject to the Procuring Entity’s compliance with GCC Sub-
Clause 28.2, indemnify and hold harmless the Procuring Entity and its
administrative proceedings, claims, demands, losses, damages, costs, and
expenses of any nature, including attorney’s fees and expenses, which the
Procuring Entity may suffer as a result of any infringement or alleged
copyright, or other intellectual property right registered or otherwise existing at
the date of the Contract by reason of:
the installation of the Goods by the Supplier or the use of the Goods in the
country where the Site is located; and
the sale in any country of the products produced by the Goods.
33.2 Such indemnity shall not cover any use of the Goods or any part thereof
other than for the purpose indicated by or to be reasonably inferred from the
Contract, neither any infringement resulting from the use of the Goods or any
part thereof, or any products produced thereby in association or combination
Page | 356

with any other equipment, plant, or materials not supplied by the Supplier,
If any proceedings are brought or any claim is made against the Procuring Entity
arising out of the matters referred to in GCC Sub-Clause 28.1, the Procuring
Entity shall promptly give the Supplier a notice thereof, and the Supplier may
at its own expense and in the Procuring Entity’s name conduct such
proceedings or claim and any negotiations for the settlement of any such
proceedings or claim.
If the Supplier fails to notify the Procuring Entity within thirty (30) days after
receipt of such notice that it intends to conduct any such proceedings or claim,
then the Procuring Entity shall be free to conduct the same on its own behalf.
The Procuring Entity shall, at the Supplier’s request, afford all available
assistance to the Supplier in conducting such proceedings or claim, and shall
be reimbursed by the Supplier for all reasonable expenses incurred in so doing.
The Procuring Entity shall indemnify and hold harmless the Supplier and its
employees, officers, and Subcontractors from and against any and all suits,
actions or administrative proceedings, claims, demands, losses, damages, costs,
and expenses of any nature, including attorney’s fees and expenses, which the
Supplier may suffer as a result of any infringement or alleged infringement of
any patent, utility model, registered design, trademark, copyright, or other
intellectual property right registered or otherwise existing at the date of the
Contract arising out of or in connection with any design, data, drawing,
specification, or other documents or materials provided or designed by or on
behalf of the Procuring Entity.
33. Limitation of Liability
34.1 Except in cases of criminal negligence or wilful misconduct,
the Supplier shall not be liable to the Procuring Entity, whether in contract,
tort, or otherwise, for any indirect or consequential loss or damage, loss of use,
loss of production, or loss of profits or interest costs, provided that this
exclusion shall not apply to any obligation of the Supplier to pay liquidated
damages to the Procuring Entity and
Page | 357

the aggregate liability of the Supplier to the Procuring Entity, whether under the
Contract, in tort or otherwise, shall not exceed the total Contract Price, provided
that this limitation shall not apply to the cost of repairing or replacing defective
equipment, or to any obligation of the supplier to indemnify the Procuring Entity
with respect to patent infringement
34. Change in Laws and Regulations
35.1 If after the deadline for submitting bids any law, regulation, ordinance,
order or bylaw having the force of law is enacted, promulgated, abrogated, or
changed in the place of Rwanda where the Site is located (which shall be deemed
to include any change in interpretation or application by the competent
authorities) that subsequently affects the Delivery Date and/or the Contract
Price, then such Delivery Date and/or Contract Price shall be correspondingly
increased or decreased, to the extent that the Supplier has thereby been affected
in the performance of any of its obligations under the Contract.
Paid or credited if the same has already been accounted for in the price
adjustment provisions where applicable, in accordance with GCC Clause 14.
35.2 Notwithstanding the foregoing, such additional or reduced cost shall not
be separately Except in case of Force Majeure, as provided under GCC Clause
31, a delay by the Supplier in the performance of its Delivery and Completion
obligations shall render the Supplier liable to the imposition of liquidated
damages pursuant to GCC Clause 25, unless an extension of time is agreed
upon, pursuant to GCC Sub-Clause 33.1.
35. Force Majeure
The Supplier shall not be liable for forfeiture of its Performance Security,
liquidated damages, or termination for default if and to the extent that its delay
in performance or other failure to perform its obligations under the Contract is
If a Force Majeure situation arises, the Supplier shall promptly notify the
Purchaser in writing within five (5) days of such condition and the cause thereof.
commercially reasonable efforts to overcome the event of Force Majeure. Unless
Page | 358

otherwise directed by the Purchaser in writing, the Supplier shall continue to
perform its obligations under the Contract as far as is reasonably practical, and
shall seek all reasonable alternative means for performance not prevented by
the Force Majeure event.
36. Change Orders and Contract Amendments
37.1 The Procuring Entity may at any time order the Supplier, through notice
in accordance GCC Clause 8, to make changes within the general scope of the
Contract in any one or more of the following:
drawings, designs, or specifications, where Goods to be furnished under the

Contract are to be specifically manufactured for the Purchaser;
(a) the method of shipment or packing;

(b) the place of delivery; and
(c) the Related Services to be provided by the Supplier.
If any such change causes an increase or decrease in the cost of, or the time
required for, the Supplier’s performance of any provisions under the Contract,
an equitable adjustment shall be made in the Contract Price or in the
Delivery/Completion Schedule, or both, and the Contract shall accordingly be
amended. Any claims by the Supplier for adjustment under this Clause must
be asserted within thirty (30) days from the date of the Supplier’s receipt of the
Procuring Entity’s change order.
Prices to be charged by the Supplier for any Related Services that might be
needed but which were not included in the Contract shall be agreed upon in
advance by the parties and shall not exceed the prevailing rates charged to other
parties by the Supplier for similar services.
Subject to the above, no variation in or modification of the terms of the Contract

shall be made except by written amendment signed by the parties and in the
limits provided for by the law on public procurement as modified and completed
to date.
37. Extensions of Time
If at any time during performance of the Contract but not later the period
specified in SCC, the Supplier or its subcontractors should encounter
Page | 359

conditions impeding timely delivery of the Goods or completion of Related
Services pursuant to GCC Clause 12, the Supplier shall promptly notify the
Procuring Entity in writing of the delay, its likely duration, and its cause. As
soon as practicable after receipt of the Supplier’s notice, the Procuring Entity
shall evaluate the situation and may at its discretion extend the Supplier’s time
for performance, in which case the extension shall be ratified by the parties by
amendment of the Contract. Unless and until the Supplier receives a notification
of the new extended delivery date, there shall be no extension to the date.
38. Termination
Termination for Default
The Procuring Entity, without prejudice to any other remedy for breach of
Contract, by written notice of default sent to the Supplier, may terminate the
Contract in whole or in part:
if the Supplier fails to deliver any or all of the Goods within the period specified
in the Contract, or within any extension thereof granted by the Procuring Entity
pursuant to GCC Clause 33;
if the Supplier fails to perform any other obligation under the Contract; or
if the Supplier, in the judgment of the Procuring Entity has engaged in fraud
and corruption, as defined in GCC Clause 3, in competing for or in executing
the Contract.
In the event the Procuring Entity terminates the Contract in whole or in part,
pursuant to GCC Clause 34.1(a), the Procuring Entity may procure, upon such
terms and in such manner as it deems appropriate, Goods or Related Services
similar to those undelivered or not performed, and the Supplier shall be liable
to the Procuring Entity for any additional costs for such similar Goods or Related
Services. However, the Supplier shall continue performance of the Contract to
the extent not terminated.
39. Termination for Insolvency.
The Procuring Entity may at any time terminate the Contract by giving notice to
the Supplier if the Supplier becomes bankrupt or otherwise insolvent. In such
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event, termination will be without compensation to the Supplier, provided that
such termination will not prejudice or affect any right of action or remedy that
has accrued or will accrue thereafter to the Purchaser
Termination for Convenience.
The Procuring Entity, by notice sent to the Supplier, may terminate the
Contract, in whole or in part, at any time for its convenience. The notice of
termination shall specify that termination is for the Procuring Entity’s
Contract is terminated, and the date upon which such termination becomes
effective.
The Goods that are complete and ready for shipment within thirty (30) days after
the Supplier’s receipt of notice of termination shall be accepted by the Procuring
Entity at the Contract terms and prices. For the remaining Goods, the Procuring
Entity may elect:
to have any portion completed and delivered at the Contract terms and prices;
and/or
to cancel the remainder and pay to the Supplier an agreed amount for partially
completed Goods and Related Services and for materials and parts previously
procured by the Supplier.
Assignment
Neither the Procuring Entity nor the Supplier shall assign, in whole or in part,
their obligations under this Contract, except with prior written consent of the
other party.
Export Restriction
Notwithstanding any obligation under the Contract to complete all export

formalities, any export restrictions attributable to the Procuring Entity, to
Rwanda, or to the use of the products/goods, systems or services to be supplied,
which arise from trade regulations from a country supplying those
products/goods, systems or services, and which substantially impede the
Supplier from meeting its obligations under the Contract, shall release the
Page | 361

Supplier from the obligation to provide deliveries or services, always provided,
however, that the Supplier can demonstrate to the satisfaction of the Procuring
Entity and of RPPA that it has completed all formalities in a timely manner,
including applying for permits, authorizations and licenses necessary for the
export of the products/goods, systems or services under the terms of the
Contract. Termination of the Contract on this basis shall be for the purchaser’s
convenience pursuant to Sub-Clause 39.3.
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Section VII. Specific Conditions of Contract
The following Special Conditions of Contract (SCC) shall supplement and / or amend
the General Conditions of Contract (GCC). Whenever there is a conflict, the provisions
herein shall prevail over those in the GCC.
[The Procuring Entity shall select insert the appropriate wording using the samples
below or other acceptable wording, and delete the text in italics]
GCC 2.1(i) The Procuring Entity is: [Insert complete legal name of the Purchaser]
GCC 2.1 (n) The Project Site(s)/Final Destination(s) is/are: [Insert name(s) and
detailed information on the location(s) of the site(s)]
GCC 3.2 (b) The version edition of INCOTERMS shall be [insert date of current
edition]
GCC 10.1 The language shall be: [insert the name of the language]
GCC 12.1 For notices, the Procuring Entity’s address shall be:
Attention: [ insert full name of person, if applicable]
Street Address: [insert street address and number]
Floor/ Room number: [insert floor and room number, if applicable]
City: [insert name of city or town]
Telephone: [include telephone number, including country codes]
Facsimile number: [insert facsimile number, including country codes]
Electronic mail address: [insert e-mail address, if applicable]
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GCC 9.2 The rules of procedure for dispute settlement proceedings pursuant to
GCC Clause 14 shall be as follows:
Option for mediation:
“If the parties fail to resolve the dispute by the method of amicable
settlement, the dispute shall be submitted to mediation in accordance
with Kigali International Arbitration Centre mediation rules in force in a
period of thirty (30) days from the date the request for mediation was
submitted”.
Parties agree to share equally the costs of the mediation but which
shall not include the expenses incurred by each party for its own legal
representation.”
Option for litigation:
“If the parties cannot settle the dispute amicably or by mediation

within thirty (30) days after appointment of the mediators, the matter
shall be referred to national courts of competent jurisdiction.”
Option for arbitration:
(i) “Any dispute or difference between the Parties as to the

interpretation or implementation of this Agreement or in respect of
any matter or thing arising under, out of or in connection with this
Agreement that cannot be settled by amicable settlement or mediation
(when provided for), shall be settled by arbitration in accordance with
Kigali International Arbitration Centre (KIAC) rules.
(ii) The number of arbitrators to the proceedings shall be

…..(Choose the number of arbitrators/can be one or three).
(iii) The seat for arbitration shall be ……… (Choose the seat).
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(iv) The language for arbitration proceedings shall be …..(Choose
the language).
(v) The award rendered by the arbitrator(s) shall be final and

binding and shall be enforced by any Court of competent jurisdiction.
The party seeking enforcement shall be entitled to an award of all costs
including legal fees to be paid by the party against whom enforcement
is ordered.
In case the other party wishes to use a different arbitration

mechanism namely UNICTRAL, EACJ, or any other the Procuring
Entity shall seek for advice from the Ministry of Justice/Attorney
General’s Office.
Notwithstanding any reference to arbitration herein, the parties shall

continue to perform their respective obligations under the Contract
unless they otherwise agree; and the Procuring Entity shall pay the
Supplier any money due the Supplier.
GCC 13 The governing law shall be the laws of Rwanda
GCC 17 Details of Shipping and other Documents to be furnished by the

Supplier are [insert the required documents, such as a negotiable bill of
lading, a non-negotiable sea way bill, an airway bill, a railway
consignment note, a road consignment note, insurance certificate,
Manufacturer’s or Supplier’s warranty certificate, inspection certificate
issued by nominated inspection agency, Supplier’s factory shipping
details etc].
The above documents shall be received by the Procuring Entity before

arrival of the Goods and, if not received, the Supplier will be
responsible for any consequent expenses.
Page | 365

GCC 19 The prices charged for the Goods supplied and the related Services
performed [insert “shall” or “shall not,” as appropriate] be adjustable.
If prices are adjustable, the following method shall be used to calculate

the price adjustment [see attachment to these SCC for a sample Price
Adjustment Formula]
GCC 20.1 Sample provision
GCC 20.1—The method and conditions of payment to be made to the

Supplier under this Contract shall be as follows:
Payment of foreign currency portion shall be made in ( )

[currency of the Contract Price] in the following manner:
(i) Advance Payment: Twenty (20) percent of the Contract Price

shall be paid within thirty (30) days of signing of the Contract,
and upon submission of claim and a bank guarantee for
equivalent amount valid until the Goods are delivered and in the
form provided in the bidding documents or another form
acceptable to the Procuring Entity.
(ii) On Shipment: The Supplier shall be paid Seventy (70) percent of

the Contract Price of the Goods shipped upon presentation of all
shipping documents including the bill of loading, insurances and
any other required document according to the INCOTERMS used.
(iii) On Acceptance: Ten (10) percent of the Contract Price of Goods

received shall be paid within forty (45) days of receipt of the Goods
upon submission of claim supported by the acceptance certificate
issued by the Procuring Entity.
Payment of local currency portion shall be made in [currency]

within forty (45) days of presentation of claim supported by a
certificate from the Procuring Entity declaring that the Goods have
been delivered and that all other contracted Services have been
performed.
Page | 366

All payments will be made within fifteen (45) days after receipt and
approval of the supplier’s invoice and shall be paid to the following
account:
Account Holder: ……………………..
Account number: ……………..………
Bank Name: ……………………..
Bank Address: ……………………..
Note: Payment can be made through confirmed and irrevocable letter

of credit opened in favour of the Supplier in a bank in its country,
upon submission of documents specified in GCC Clause 12 upon
approval by the Ministry of Finance and Economic Planning.
GCC 22.1 A Performance Security [ insert “shall” or “shall not” be required]
[If a Performance Security is required, insert “the amount of the

Performance Security shall be: [insert amount]
[The amount of the Performance Security is usually expressed as a

percentage of the Contract Price. The percentage varies according to the
Procuring Entity’s perceived risk and impact of non performance by the
Supplier. A percentage(%) between 5 and 10 is used under normal
circumstances]
GCC 22.3 If required, the Performance Security shall be in the form of : [insert
“a Bank Guarantee” or ”]
If required, the Performance security shall be denominated in [insert

“a freely convertible currency acceptable to the Procuring Entity” or “ the
currencies of payment of the Contract, in accordance with their portions
of the Contract Price”]
Page | 367

GCC 22.4 Discharge of the Performance Security shall take place: [ insert date if
different from the one indicated in sub clause GCC 17.4]
GCC 27.2 The packing, marking and documentation within and outside the
packages shall be: [insert in detail the type of packing required, the
markings in the packing and all documentation required]
GCC 28 The insurance coverage shall be as specified in the INCOTERMS.
If not in accordance with INCOTERMS, insurance shall be as follows:
[insert specific insurance provisions agreed upon, including coverage,

currency an amount]
GCC 29 Responsibility for transportation of the Goods shall be as specified in

the INCOTERMS.
If not in accordance with INCOTERMS, responsibility for

transportations shall be as follows: [insert “The Supplier is required
under the Contract to transport the Goods to a specified place of final
destination within Rwanda, defined as the Project Site, transport to
such place of destination in Rwanda, including insurance and storage,
as shall be specified in the Contract, shall be arranged by the Supplier,
and related costs shall be included in the Contract Price”; or any other
agreed upon trade terms (specify the respective responsibilities of the
Procuring Entity and the Supplier)]
GCC 30.1 The inspections and tests shall be: [insert nature, frequency,
procedures for carrying out the inspections and tests]
GCC 30.2 The Inspections and tests shall be conducted at: [insert name(s) of
location(s)]
Page | 368

GCC 31 The liquidated damage shall be: [insert number] % per day
The maximum amount of liquidated damages shall be: [insert number]

%
Once the contract is not terminated while the maximum of liquidated

damages of 5% is reached, the contract extension shall not exceed
[insert time period ]
GCC 32.3 The period of validity of the Warranty shall be: [insert number] days
For purposes of the Warranty, the place(s) of final destination(s) shall

be:
[insert name(s) of location(s)]
GCC 32.5 The period for repair or replacement shall be: [insert number(s)] days.
GCC 32.6 The period for repair the defect shall be: [insert number(s)] days.
GCC 38 The period for notification of the cause and the likely duration of delay
[insert time period]
Attachment: Price Adjustment Formula
If in accordance with GCC 19, prices shall be adjustable, the following method
shall be used to calculate the price adjustment:
14.2 Prices payable to the Supplier, as stated in the Contract, shall be subject
to adjustment during performance of the Contract to reflect changes in
the cost of labour and material components in accordance with the
formula:
P1 = P0 [a + bL1 + cM1] - P0
L0 M0
Page | 369

Where a+b+c = 1
In which:
P1 = adjustment amount payable to the Supplier.

P0 = Contract Price (base price).
a = fixed element representing profits and overheads included in the
Contract Price and generally in the range of five (5) to fifteen (15)
percent.
b = estimated percentage of labour component in the Contract Price.
c = estimated percentage of material component in the Contract
Price.
L0, L1 = labour indices applicable to the appropriate industry in the
country of origin on the base date and date for adjustment,
respectively.
M0, M1 = material indices for the major raw material on the base date and
date for adjustment, respectively, in the country of origin.
The coefficients a, b, and c as specified by the Procuring Entity are as follows:
a = [insert value of coefficient]

b = [insert value of coefficient]
c = [insert value of coefficient]
The Bidder shall indicate the source of the indices and the base date indices in
its bid.
Base date = thirty (30) days prior to the deadline for submission of the bids.
Date of adjustment = [insert number of weeks] weeks prior to date of shipment

(representing the mid-point of the period of manufacture).
The above price adjustment formula shall be invoked by either party subject to
the following further conditions:
Page | 370

(a) No price adjustment shall be allowed beyond the original delivery dates
unless specifically stated in the extension letter. As a rule, no price
adjustment shall be allowed for periods of delay for which the Supplier
is entirely responsible.
The Procuring Entity will, however, be entitled to any decrease in the prices of
the Goods and Services subject to adjustment.
(b) If the currency in which the Contract Price P0 is expressed is different

from the currency of origin of the labour and material indices, a
correction factor will be applied to avoid incorrect adjustments of the
Contract Price. The correction factor shall correspond to the ratio of
exchange rates between the two currencies on the base date and the
date for adjustment as defined above.
(C) No price adjustment shall be payable on the portion of the Contract

Price paid to the Supplier as advance payment.
Page | 371

Table of Forms
1. CONTRACT AGREEMENT
2. PERFORMANCE SECURITY
3. BANK GUARANTEE FOR ADVANCE PAYMENT
1. Contract Agreement
This CONTRACT hereinafter referred to as the “Contract” is entered into by and

between “Name of the Procuring Entity” represented by
Mr/Mrs/Ms……………………, the ……………… of “Name of the Procuring Entity”
(Hereinafter referred to as “the Procuring Entity” and ……………. Ltd/Co, ........
……………………. Represented by Mr/Mrs/Ms ………………………., ID/PC
N°………………………………………. issued at………………………………………the
……………… of the company Hereinafter referred to as the “Supplier”
WHEREAS
(a) the Procuring Entity has requested the Supplier to supply goods and related
services as specified in the General Conditions of Contract attached to this
Contract (hereinafter called the “Goods”);
(b) the Supplier, having represented to the Procuring Entity that they have the
required capacity, have agreed to supply the goods and related services on
the terms and conditions set forth in this Contract;
(c) the Procuring Entity has received funds from the [Insert the name of the
funding Institution], hereinafter called the (“Funding Institution”) towards
the cost of the goods and related services and intends to apply a portion of
the proceeds of these funds to payments under this Contract;
Page | 372

Or
(c) the Procuring Entity has received Government funds and intends _______
Or
(c) the Procuring Entity has decided to allocate a portion of its own budget to
finance ________
NOW THEREFORE the parties hereby agree as follows:
1. The following documents attached hereto shall be deemed to form an

integral part of this Contract:
(a) The General Conditions of Contract;
(b) The Special Conditions of Contract;
(c) The list of goods, technical specifications and supply requirements;
(d) Contract negotiations minutes;
(e) The bidding document; and,
(f) The bid.
2. The mutual rights and obligations of the Procuring Entity and the Supplier
shall be as set forth in the Contract, in particular:
(a) the Supplier shall supply the goods and related services in accordance
with the provisions of the Contract; and
(b) the Procuring Entity shall make payments to the Supplier in

accordance with the provisions of the Contract.
IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be

signed in their respective names as of the day and year hereunder written.
Page | 373

For and on behalf of [name of the Procuring Entity]
For and on behalf of [name and legal status of Supplier]
Page | 374

2. Performance Security
[The Bank, as requested by the successful Bidder, shall fill in this form in
accordance with the instructions indicated]
Date: [insert date (as day, month, and year) of Bid Submission]
Tender No. and title: [insert no. and title of bidding process]
Bank’s Branch or Office: [insert complete name of Guarantor]
Beneficiary: [insert complete name of Purchaser]
PERFORMANCE GUARANTEE No.: [insert Performance Guarantee number]
We have been informed that [insert complete name of Supplier] (hereinafter called
"the Supplier") has entered into Contract No. [insert number] dated [insert day
and month], [insert year] with you, for the supply of [description of Goods and
related Services] (hereinafter called "the Contract").
Furthermore, we understand that, according to the conditions of the Contract,

a Performance Guarantee is required.
At the request of the Supplier, we hereby irrevocably undertake to pay you any
sum(s) not exceeding [insert amount(s5) in figures and words] upon receipt by us
of your first demand in writing declaring the Supplier to be in default under the
Contract, without cavil or argument, or your needing to prove or to show
grounds or reasons for your demand or the sum specified therein.
This guarantee shall expire, no later than the . . . Day/month/year…, and

any demand for payment under it must be received by us at this office on or
before that date. However, before that expiration date, if the planned contract
execution period has been delayed or extended, or its value increased, the
contractor shall respectively extend the validity period of this performance
security or increase its amount accordingly.

5
The Bank shall insert the amount(s) specified in the SCC and denominated, as specified in the SCC,
either in the currency(ies) of the Contract or a freely convertible currency acceptable to the
Purchaser.
Page | 375

This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC
Publication No. 458, except that subparagraph (ii) of Sub-article 19(a) is hereby
excluded.
[Signatures of authorized representatives of the Bank and the Supplier]
Page | 376

3. Bank Guarantee for Advance Payment
[The Bank, as requested by the successful Bidder, shall fill in this form in
accordance with the instructions indicated on a bank’s letterhead.]
Date: [insert date (as day, month, and year) of Bid Submission]
Tender No. and title: [insert number and title of bidding process]
Beneficiary: [insert legal name and address of Purchaser]
ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee

no.]
We, [insert legal name and address of bank], have been informed that [insert
complete name and address of Supplier] (hereinafter called "the Supplier") has
entered into Contract No. [insert number] dated [insert date of Agreement] with
you, for the supply of [insert types of Goods to be delivered] (hereinafter called
"the Contract").
Furthermore, we understand that, according to the conditions of the Contract,

an advance is to be made against an advance payment guarantee.
At the request of the Supplier, we hereby irrevocably undertake to pay you any
sum or sums not exceeding in total an amount of [insert amount(s)6 in figures
and words] upon receipt by us of your first demand in writing declaring that the
Supplier is in breach of its obligation under the Contract because the Supplier
used the advance payment for purposes other than toward delivery of the Goods.
It is a condition for any claim and payment under this Guarantee to be made
that the advance payment referred to above must have been received by the
Supplier on its account [insert number and domicile of the account]
This Guarantee shall remain valid and in full effect from the date of the advance
payment received by the Supplier under the Contract until the received advance
is totally refunded by the supplier.

6
The Bank shall insert the amount(s) specified in the SCC and denominated, as specified in the SCC,
either in the currency(ies) of the Contract or a freely convertible currency acceptable to the
Purchaser.
Page | 377

This Guarantee is subject to the Uniform Rules for Demand Guarantees, ICC
Publication No. 458.
_____________________
[signature(s) and stamp of authorized representative(s) of the Bank]
Page | 378

STANDARD CONTRACT FOR THE SUPPLY OF GOODS
FOR
NATIONAL CONTRACTS
REPUBLIC OF RWANDA
Contract for the Supply of.....................................
by and between
Name of the Procuring Entity: ..........................................
And
……….........................................................................
Contract number: ………………………………..…………….
Contract amount and currency: ………………..…………..
Contract duration: ……………………………………………..
Contract administrator/Manager: ………………………….
Date of Contract: ………………………………………..……..
Page | 379

THIS CONTRACT (“Contract”) hereinafter referred to as the “Contract” is
entered into by and between “Name of the Procuring Entity” represented by
Mr/Mrs/Ms……………………, the ……………… of the “name of the Procuring
Entity” (Hereinafter referred to as the “Purchaser” and …………….. Ltd/Cie, a
….. incorporated in (Country) ………………… under the Registry number
……………………. Represented by
Mr/Mrs/Ms…………………………………………………………………………….,
ID/PC N°………………………………………………………………………………………,
issued at…………………………………., the ……………… of the company
Hereinafter referred to as the “Supplier”
Article One: Definitions
The following words and expressions shall have the meanings hereby assigned
to them:
(1) “Contract” means the Contract Agreement entered into between the
............... and ............, together with the Contract Documents
referred to therein, including all attachments, appendices, and all
documents incorporated by reference therein.
(2) “Contract Documents” means the documents listed in the Contract

(3) “Contract Price” means the price payable to the Supplier as specified
in the Contract Agreement, subject to such additions and
adjustments thereto or deductions there from, as may be made
(4) “Completion” means the fulfilment of the Related Services by the

Supplier in accordance with the terms and conditions set forth in
this Contract.
(5) “Day” means calendar day.
(6) “Force Majeure” means an event or situation beyond the control of

the Supplier that is not foreseeable, is unavoidable, and its origin is
Page | 380

not due to negligence or lack of care on the part of the Supplier. Such
events may include, but not be limited to, wars or revolutions, fires,
floods, epidemics, quarantine restrictions, and freight embargoes.
(7) “Goods” means all of the commodities, raw material, machinery and
equipment, and/or other materials that the Supplier is required to
supply to the Procuring Entity under the Contract.
(8) “Procuring Entity” means the ........................ (name of institution)
(9) “Related Services” means the services incidental to the supply of the
goods, such as insurance, installation, training and initial
maintenance and other such obligations of the Supplier under the
Contract.
(10) “Subcontractor” means any natural person, private or government

entity, or a combination of the above, to which any part of the Goods
to be supplied or execution of any part of the related services is
subcontracted by the Supplier.
(11) “Supplier” means ............... (name of the supplier)
(12) “Purchaser” means the ..................... (name of the institution)
(13) “Corrupt practice means” the offering, giving, receiving, or soliciting,

directly or indirectly, of anything of value to influence a civil servant
or Government entity;
(14) “Fraudulent practice” means any act or omission, including a
misrepresentation, that knowingly or recklessly misleads or attempts
to mislead a civil servant to obtain a financial or other benefit or to
avoid an obligation;
(15) “Collusive practice” means arrangement between two or more parties
designed to achieve an improper purpose, including influencing
another party or the civil servant;
(16) “Coercive practice” means any act intending to harm or threaten to
harm directly or indirectly persons, their works or their property to
influence their participation in the procurement process or affect its
performance;
Page | 381

(17) “Obstructive practices” means destroying, falsifying, altering or
concealing of evidence material to the investigation or making false
statements to investigators deliberately in order to materially impede
investigations into allegations of a corrupt, coercive or collusive
practice: and/or threatening, harassing or intimidating any party to
prevent him/her from disclosing his/her knowledge of matters
relevant to the investigation or from pursuing the investigations.
Article 2: The Object of the Contract

The object of this contract is to supply to the Purchaser the goods as listed in
Annex I: list of goods, quantities and technical specifications in accordance with
their specifications detailed in Annex I.
Article 3: Contract Documents

This contract and its Annex I:
(1) List of goods and Technical Specifications of the goods

(2) Notification Letter
(3) Negotiation minutes
(4) Tender document
(5) Bid
Article 4: Language
All notices, correspondence, documentation or communications of whatsoever
nature, reports submitted or prepared under or in connection with this Contract
shall be in the .................................................. language.
Supporting documents and printed literature that are part of the Contract may
be in another language provided they are accompanied by an accurate
translation of the relevant passages in the language specified, in which case, for
purposes of interpretation of the Contract, this translation shall govern.
Page | 382

The Supplier shall bear all costs of translation to the governing language and
Supplier.
Article 5: Notices
Each party chooses as its address for all purposes under this Contract whether
for serving any court process or documents, giving any notice, or making any
other communications of whatsoever nature and for any other purpose arising
from this Contract as follows:
“Name of Procuring Entity”:
……………………………………………….
……………………………………………….
………………………………………………
The Purchaser
……………………………….……………..
………………………………………………
………………………………………………
Any notice required or permitted under this Contract shall be valid and effective
only if in writing, and shall be deemed to have been received on the date of
delivery.
Any party may by notice to the other party, change its chosen address to another
physical address and such change shall take effect on the eighth (8th) day after
the date of receipt by the party who last receives the notice.
Article 6: Contract management

The ………….. in charge of ……….. shall ensure the management of this contract
on behalf of the Purchaser.
Page | 383

Article 7: Governing Law
“This Contract shall be governed by and construed in accordance with the laws
of the Republic of Rwanda.
The Parties have further agreed that if the provisions of this Contract are
inconsistent with the effective laws of the Republic of Rwanda, the inconsistent
provision shall be amended and brought in conformity with the law.
Invalidity of one or more provision or articles of this Contract shall not invalidate
any other provisions or the Contract as a whole. If a provision is found to be
invalid or contravenes national legislation, the parties will agree on amendment
of the provision and in the case of disagreement, the matter shall be referred to
the Minister of Justice/Attorney General for legal advice. In case the matter is
not resolved, it shall be submitted to the competent courts of Rwanda for an
equitable solution”.
Article 8: Settlement of Disputes
(1) Amicable solution:
Any dispute or differences between the parties arising out of this Contract shall
in the first instance be settled amicably by submitting such a dispute to a panel
of senior representatives of the Parties to consider and resolve the Dispute. Each
senior representative serving on such panel shall have full authority to settle
the Dispute.
(2) Litigation:
If the parties cannot settle the dispute amicably, the matter shall be referred to
the national courts of competent jurisdiction.
(3) Arbitration:
(a) If the dispute cannot be amicably settled by the parties, the matter
shall be referred to and finally resolved by arbitration in accordance
with the Rules of Kigali International Arbitration Centre (KIAC).
Page | 384

(b) The number of arbitrators to the proceedings shall be one (or three
depending on the size of the contract) appointed in accordance with
the rules.
(c) The seat of arbitration shall be in Rwanda.
(d) The language of arbitration shall be…… (choose the language).
(e) The award rendered by the arbitrator(s) shall be final and binding and
shall be enforced by any Court of competent jurisdiction. The party
seeking enforcement shall be entitled to an award of all costs incurred
is ordered.
Article 9: Inspections and Audit by the Procuring Entity
The Supplier shall permit the Procuring Entity and/or persons appointed by the
Procuring Entity to inspect the Supplier’s offices and/or the accounts and records
of the Supplier and its sub-contractors in order to evaluate the performance of the
Contract by the Supplier, and to have such accounts and records audited by
auditors appointed by the Procuring Entity if required.
Article 10: Duties and Obligations of the Supplier
The Supplier shall supply items whose specifications, details and quantities are
detailed in the Technical Specifications herewith attached as Annex 1.
Article 11: Delivery Period and place of delivery

(1) Delivery of goods, unless otherwise provided for in this Contract shall be
effected within .......... (Days/months/years) starting from the date of
signing of this Contract by both parties.
(2) The place of delivery shall be at .........................
Page | 385

Article 12: Packaging, Marking and Delivery
(1) All Goods shall be packaged in accordance with the provisions of the
Technical Specifications. Where no provisions are made in the Technical
Specifications for packaging, the Goods shall be properly packed for long
term storage in containers suitable to protect the contents against damage
through rough handling and for over-storage in transit or whilst in store.
Packing case size and weights shall take into consideration, where
appropriate, the remoteness of the goods’ final destination and the absence
of heavy handling facilities at all points in transit.
(2) Unless otherwise stated in this Contract, all containers (including packing
cases, boxes, tins drums and wrappings) supplied by the Supplier shall be
considered as non-returnable, and their cost having been included in the
price of the Goods.
(3) Where necessary, the Supplier shall:
(a) clearly mark the outside of each consignment or package with the
Supplier's name and full details of the destination in accordance with
the Purchaser’s order and include a packing note stating the contents
thereof;
(b) on dispatch of each consignment, send to the Purchaser at the address

for delivery of the Goods, an advice note specifying the means of
transport, weight, number or volume as appropriate and the point and
date of dispatch;
(c) send to the Purchaser a detailed priced invoice as soon as is reasonably

practical after dispatch of the Goods; and,
(d) State on all communications in the relevant order number and code
number (if any).
(4) Goods shall be delivered on the days, between the times and at the address
stated in this Contract.
(5) Should the Supplier fail to supply any of the Goods on the date or dates or
within the period or periods specified thereof, or should he fail to replace
any rejected Goods as required by the Contract, the Supplier shall be liable
to make good to the Purchaser all loss and damage occasioned by such
Page | 386

failure, including any reasonable price (whether greater than the
appropriate Contract price or not) paid by the Purchaser in purchasing the
Goods on which default has been made, from a source other than the
Supplier. In such an event the Purchaser shall be at liberty to retain the
amount of any such loss or damage from any money due by the Purchaser
to the Supplier but without prejudice to other methods of recovery open to
the Purchaser.
Article 13: Quality
(1) All Goods supplied shall comply with the requirements of the Technical
Specifications, or shall conform in all respects to the sample which form
part of the Contract.
(2) All Goods covered by this Contract shall be the subject of the Purchaser’s
inspection and test at all times before, during or after manufacture. The
Supplier shall furnish without extra charge all reasonable facilities and
assistance for the safe and convenient inspection or test required by the
Purchaser. Such inspections may be carried out on the Supplier’s premises
or at such other place as deemed appropriate by inspectors.
(3) If the Supplier fails to supply Goods, materials, workmanship or services in

accordance with the provisions of the Contract, the Purchaser may reject
any part of the Goods by giving written notice to the Supplier specifying the
reason for rejection and whether replacement Goods are required and within
what time.
(4) All rejects shall be held at the Supplier’s risk and expense including all
transportation and handling costs until returned to or collected by the
Supplier. All rejects shall be replaced or rectified and made good at the
Supplier’s expense within the specified replacement period to the full
satisfaction of the inspectors and in conformity with the standards,
specification or samples specified in this Contract.
(5) In the event of the Supplier failing to remove such rejected Goods within
twenty (20) days of notification of the rejection, the Purchaser shall be at
liberty to return them at the Supplier’s risk, the cost of carriage being
recoverable from the Supplier.
Page | 387

Article 14: Contract price
(1) The contract price is ……………………. Rwanda Francs (......... RWF) all
taxes included.
(2) The contract price is fixed and cannot be revised during the course of the
contract, or during any extension of time thereof.
(3) The contract price includes any fees, expenses or any other cost that the
Supplier might incur in relation with this contract and no reimbursable
shall be claimed by the Supplier.
Article 15: Billing and Payment modalities
(1) The Supplier shall be paid upon presentation to and approval by the
Purchaser of an invoice of the goods supplied and accepted by the
Purchaser.
(2) Each invoice shall be accompanied with the delivery note specifying the
goods supplied and approved by the Purchaser and any other document
specified in the contract documents. No invoice shall be accepted by the
Client nor delays in payment considered if the invoice is not accompanied
by such documents.
(3) In the event of a disputed invoice, the Purchaser shall notify the Supplier in
writing of the disputed amount within three (3) days of the invoice date,
amounts owed while the dispute is under negotiation. Upon the resolution
of a disputed invoice, the Purchaser shall pay the remaining portions, if any,
of such invoice.
(4) All payments will be made within fifteen (45) days after receipt and approval
of the supplier’s invoice and shall be paid to the following account:
(a) Account Holder: ………………………………
(b) Account number: ………………………………
Page | 388

(c) Bank Name: ………………………………
(d) Bank Address: …………….………………..
(5) Notwithstanding the foregoing or anything to the contrary contained herein,

the Supplier may, in its sole discretion and with thirty (30) days prior written
notice to Purchaser, change the account to which such payments are to be
made, subject to the requirements by relevant authorities.
Article 16: Performance Security
(1) The Supplier shall, before signature of this Contract, provide a Performance
Security in a form of ................................................... for the performance
of the Contract equivalent to............................. percentage of the total cost
of the contract.
(2) The proceeds of the Performance Security shall be payable to the Purchaser
as compensation for any loss resulting from the Supplier’s failure to
complete its obligations under this Contract.
(3) However, the performance Security shall be discharged by Purchaser and

returned to the Supplier in two instalments. 50% of the performance security
shall be returned not later than thirty (30) days following the date of
provisional acceptance of supplies, and the remaining 50% shall be returned
not later than thirty (30) days following the date of final acceptance of
supplies.
Article 17: Confidential Information
(1) The “Purchaser” and the “Supplier” shall keep confidentiality and shall not,
without the written consent of the other party hereto, divulge to any third
party any documents, data, or other information furnished directly or
indirectly by the other party hereto in connection with the Contract, whether
such information has been furnished prior to, during or following
completion or termination of the Contract.
Page | 389

(2) Notwithstanding the above, the Supplier may furnish to its Subcontractor
such documents, data, and other information it receives from the Procuring
Entity to the extent required for the Subcontractor to perform its work under
the Contract, in which event the Supplier shall obtain from such
Subcontractor an undertaking of confidentiality similar to that imposed on
the Supplier.
(3) The Procuring Entity shall not use such documents, data, and other
information received from the Supplier for any purposes unrelated to the
Contract. Similarly, the Supplier shall not use such documents, data, and
other information received from the Procuring Entity for any purpose other
than the performance of the Contract.
Article 18: Subcontracting
The Supplier shall engage no subcontractor to perform any work or services in

connection with this Contract unless the Supplier shall have notified in writing
the Purchaser of the identity of the proposed subcontractor and the Purchaser
shall have notified in writing the Supplier of its approval of the engagement of
the subcontractor. The approval by the Purchaser of the engagement of a
subcontractor shall not relieve the Supplier of any of its obligations under this
Contract or from its responsibility for the work or services performed by the
subcontractor. In any way no subcontract shall exceed 20% of the main
contract, and the terms of any subcontract shall be subject to and in conformity
with the provisions of this Contract.
Article 19: Penalties

If the Supplier fails to deliver by the Date(s) of delivery period specified in the
Contract, the purchaser may without prejudice to other available remedies for
the purchaser, deduct from the Contract Price, as liquidated damages, a sum
equivalent to 1‰ of the total of the Contract Price for each day of delay until
Contract Price. Once the maximum is reached, the Purchaser may terminate
the contract or extend its duration until full completion. However such
extension of the Contract shall not exceed..................... days/month and
Page | 390

penalties shall continue to accrue until full completion of the Contract or
termination.
Article 20: Force Majeure
(1) The Supplier shall not be liable for forfeiture of its Performance Security,
liquidated damages, or termination for default if and to the extent that the
delay in performance or other failure to perform contractual obligations is
(2) If a Force Majeure situation arises, the Supplier shall promptly notify the
Purchaser in writing within five (5) days of such condition and the cause
thereof. The party claiming Force Majeure shall use its persistent, good faith
and commercially reasonable efforts to overcome the event of Force Majeure.
Unless otherwise directed by the Purchaser in writing, the Supplier shall
continue to perform its obligations under the Contract as far as is
reasonably practical, and shall seek all reasonable alternative means for
performance not prevented by the Force Majeure event.
Article 21: Change in Laws and Regulations
(1) If after the deadline for submitting bids any law, regulation, ordinance, order
or bylaw having the force of law is enacted, promulgated, abrogated, or
changed in the place of Rwanda where the Site is located (which shall be
deemed to include any change in interpretation or application by the
competent authorities) that subsequently affects the Delivery Date and/or
the Contract Price, then such Delivery Date and/or Contract Price shall be
correspondingly increased or decreased, to the extent that the Supplier has
thereby been affected in the performance of any of its obligations under the
Contract.
(2) Notwithstanding the foregoing, such additional or reduced cost shall not be
separately paid or credited if the same has already been accounted for in
the price adjustment provisions where applicable.
Page | 391

Article 22: Change Orders and Contract Amendments
(1) The Purchaser may at any time order the Supplier through writing notice, to
make changes within the general scope of the Contract in any one or more of
the Quantities of Items and/ or Designs,
(2) If any such change causes an increase or decrease in the cost of, or the time
required for, the Supplier’s performance of any provisions under the
Contract, an equitable adjustment shall be made in the Contract Price or in
the Delivery/Completion Schedule, or both, and the Contract shall
accordingly be amended. Any claims by the Supplier for adjustment under
this Clause must be asserted within five (5) days from the date of the
Supplier’s receipt of change order.
(3) Prices to be charged by the Supplier for any Related Services that might be
needed but which were not included in the Contract shall be agreed upon in
advance by the parties and shall not exceed 20% of the contract price.
(4) Subject to the above, no variation or modification of the terms of the Contract
shall be made except by written amendment signed by the parties.
Article 23: Extensions of Time
(1) If at any time during performance of the Contract, the Supplier should
encounter conditions impeding timely delivery of the Goods, the Supplier
shall promptly but no later than.............. (days/month(s)) prior to the
expiration of the contract, notify the Purchaser in writing of the delay, its
likely duration, its cause and put forward a new anticipated delivery. As soon
as practicable after receipt of the Supplier’s notice, the Purchaser shall
evaluate the situation and may at its discretion extend the Supplier’s time
for performance, in which case the extension shall be ratified by the parties
by amendment of the Contract. Unless and until the Supplier receives a
notification of the new extended delivery date, there shall be no extension to
the date.
(2) Except in case of Force Majeure, as provided under Clause 20, a delay by
the Supplier in the performance of its Delivery and Completion obligations
Page | 392

shall render the Supplier liable to the imposition of liquidated damages,
unless an extension of time has been agreed upon.
Article 24: Termination
(1) The Purchaser, without prejudice to any other remedy for breach of
Contract, by written notice of default sent to the Supplier, may terminate
the Contract in whole or in part:
(a) If the Supplier fails to perform any or all of its obligations within the
period specified in this Contract, or within any extension thereof
granted by the Purchaser.
(b) If the Supplier fails to perform any other obligation under the Contract;
or
(c) If the Supplier or any of its employee, agent, in the judgment of the
Purchaser has engaged in corrupt, fraudulent, collusive, coercive or
obstructive practices, in competing for or in executing this Contract.
(d) If the supplier becomes bankrupt or otherwise insolvent.
In case of force majeure if there is no remedy within ........ (...) days from the day
of notice of the event.
(2) Termination for Convenience

(a) The Purchaser, by notice sent to the Supplier, may terminate the
Contract, in whole or in part, at any time for its convenience. The notice
of termination shall specify that termination is for the Purchaser’s
Contract is terminated, and the date upon which such termination
becomes effective.
(b) The Goods that are complete and ready for shipment or delivery within
....... ( days/months) after the Supplier’s receipt of notice of termination
shall be accepted by the Purchaser at the Contract terms and prices. For
the remaining Goods, the Purchaser may elect:
Page | 393

(i) to have any portion completed at the Contract terms and prices;
and/or
(ii) to cancel the remainder and pay to the Supplier an agreed amount for
partially supplied goods and Related Services and for materials and
parts previously procured by the Supplier.
Article 25: Assignment
The Supplier shall not assign or operate any other transfer of its rights under
this contract, in whole or in part, its obligations under this Contract, except
with prior written consent of the other party. Prior to any such assignment, the
assignee will be obliged to sign an undertaking to comply with all obligations
under this contract. Any attempt assignment not complied with the manner
prescribed herein shall be null and void.
Article 26: Warranties
(1) The Supplier warrants that all the Goods are new, of good quality,
unused, and of the most recent or current models and that they
incorporate all recent improvements in design and materials,
(2) The Supplier warrants that goods supplied shall be free from all defects
which can harm its normal use.
(3) The Supplier warrants remedying the defects within the reasonable time
at his/her risks and expenses and without prejudice to any other rights
which the Purchaser may have according to the Contract.
(4) The Supplier further warrants that the Goods shall be free from defects
arising from any act or omission of the Supplier or arising from design,
materials, and workmanship, under normal use in the conditions
prevailing in the country.
(5) The Purchaser shall give notice to the Supplier stating the nature of any
such defects together with all available evidence thereof, promptly
following the discovery thereof. The Purchaser shall afford all reasonable
opportunity for the Supplier to inspect such defects.
Page | 394

(6) Upon receipt of such notice, the Supplier shall, within the period of five
(5) working days, expeditiously repair or replace the defective Goods or
parts thereof, at no cost to the Client.
(7) If having been notified, the Supplier fails to remedy the defect within the
period specified, the Purchaser may proceed to take within a reasonable
period such remedial action as may be necessary including but not limited
to the application of penalties for delay to correct defects as provided by
the Procurement law, at the Supplier’s risk and expense and without
prejudice to any other rights which the Purchaser may have against the
Supplier under the Contract.
(8) The Supplier shall provide a warranty period of twelve (12) months to
every client, unless otherwise agreed upon by parties during contract
negotiations, starting from the date of official acceptance of the last
delivery.
Article 27: Patent indemnity
(1) The Supplier shall, subject to prior Purchaser’s notification specified in

the paragraph b, indemnify and hold harmless the Purchaser and its
administrative proceedings, claims, demands, losses, damages, costs,
and expenses of any nature, including attorney’s fees and expenses,
which the Purchaser may suffer as a result of any infringement or alleged
copyright, or other intellectual property right registered or otherwise
existing at the date of the Contract.
(2) If any proceedings are brought or any claim is made against the
Purchaser arising out of the matters referred to in paragraph a, the
Purchaser shall promptly give the Supplier a notice thereof, and the
Supplier may at its own expense and in the Purchaser’s name conduct
such proceedings or claim and any negotiations for the settlement of any
such proceedings or claim.
Page | 395

(3) If the Supplier fails to notify the Purchaser within thirty (30) days after
receipt of such notice that it intends to conduct any such proceedings or
claim, then the Purchaser shall be free to conduct the same on its own
behalf.
Article 28: Miscellaneous
(1) Entire Agreement:
date of Contract.
(2) Waiver:
(a) No relaxation, forbearance, delay, or indulgence by either party in

enforcing any of the terms and conditions of the Contract or the granting
of time by either party to the other shall prejudice, affect, or restrict the
rights of that party under the Contract, neither shall any waiver by either
party of any breach of Contract operate as waiver of any subsequent or
continuing breach of Contract.
(b) Any waiver of a party’s rights, powers, or remedies under the Contract
must be in writing, dated, and signed by an authorized representative of
the party granting such waiver, and must specify the right and the extent
to which it is being waived
(3) Severability:

Contract.
Page | 396

Article 29: Counterparts
This Contract may be executed in two counterparts, each of which shall be
deemed an original, and both of which together shall constitute one and the
same instrument.
Article 30: Date of effectiveness of the Contract

This Contract shall come into effect on the Date of Signature and remain in force
until its expiration or until the two parties will have completely fulfilled their
obligations, or the time the Contract is terminated by either party in conditions
set forth in Article 23 of this Contract.
“Name of Procuring Entity”
Represented by: …………………………………….
Name: ……………………………………
Title: ……………………………………
The Supplier
Represented by: ……………………………………
Name: ……………………………………
Title: …………………………………...
Date: ……………………………………
Page | 397

ANNEX 5: LIST OF GOODS, SUPPLY REQUIREMENTS
AND TECHNICAL SPECIFICATIONS OF THE GOODS
THE REPUBLIC OF RWANDA
[Indicate name of Procuring Entity]
STANDARD REQUEST FOR PROPOSALS SELECTION OF CONSULTANTS

FOR SMALL SERVICES
Title of the Tender:
Tender Reference Number:
Procurement Method:
Date of Issue:
Page | 398

Selection of Consultants
LIST OF CONTENTS
Section 1. Letter of Invitation (LOI)
Section 2. Instructions to Consultants
Definitions
1. Introduction
2. Clarification and Amendment of RFP Documents
3. Preparation of Proposals
4. Submission, Receipt, and Opening of Proposals
5. Proposal Evaluation
6. Negotiations
7. Award of Contract
8. Confidentiality
Instructions to Consultants, Data Sheet
Section 3. Technical Proposal - Standard Forms
Section 4. Financial Proposal - Standard Forms
Section 6. Standard Form of Contract
Page | 399

Section 1. Letter of Invitation (LOI)
Invitation No ………………………….
Dear Mr./Ms. (Insert the name of Consultant)
1. The (Insert the name(s), of the Procuring entity) (hereinafter called ‘’Client”)
has received funds from (Insert the name(s), of the Funding agency) towards
the cost of preparation of (Insert the title of the Project). The Client intends to
apply a portion of the funds to eligible payments under the contract for
which this Request for Proposals is issued.
2. The (Insert the name(s), of the Procuring entity) now solicits proposals to
provide the following consulting services: (Insert the title of the
tender)………………………… More details on the services are provided in the
Terms of Reference.
3. This Request for Proposal (RFP) has been addressed to the following short-
listed Consultants:
(or, is open to all interested consultants fulfilling the requirements herein )
Consultant’s name Address Country of

origin
It is not permissible to transfer this invitation to any other Consultant.
Page | 400

4. A Consultant will be selected under a (Insert the procurement method, e.g.:
QCBS, etc.) and procedures described in this RFP, in accordance with the
Law on Public Procurement as modified and completed to date.
5. The RFP includes the following documents:
Section 1 - Letter of Invitation
Section 2 - Instructions to Consultants (including Data Sheet)
Section 3 - Technical Proposal - Standard Forms
Section 4 - Financial Proposal - Standard Forms
Section 5 - Terms of Reference
Section 6 - Standard Forms of Contract
6. Please inform us in writing at the following address:

(Insert the name(s), address (es), and telephone numbers of the Procuring
entity) upon receipt:
(a) That you received the Letter of Invitation; and

(b) Whether you will submit a proposal alone or in association ( if the
association is allowed).
Yours sincerely,
(Insert the Signature, name(s) and Title of the Procuring entity Representative)
Section 2. Instructions to Consultants

Definitions
(1) “Client/Procuring Entity” means the agency with which the selected
Consultant signs the Contract for the Services.
Page | 401

(2) “Consultant” means any entity or person that may provide or provides the
Services to the Client under the Contract.
(3) “Contract” means the agreement between the procuring entity and the
successful bidder.
(4) “Data Sheet” means such part of the Instructions to Consultants used to
reflect specific country and assignment conditions.
(5) “Day” means calendar day including holidays unless provided otherwise.
(6) “Government” means the Government of the Republic of Rwanda.

(7) “Instructions to Consultants” (Section 2 of the RFP) means the document which
provides short listed Consultants with all information needed to prepare their
Proposals.
(8) “LOI” (Section 1 of the RFP) means the Letter of Invitation being sent by the
Client to the short listed Consultants.
(9) “Personnel” means professionals and support staff provided by the

Consultant or by any Sub-Consultant and assigned to perform the Services
or any part thereof; “Foreign Personnel” means such professionals and
support staff who at the time of being so provided had their domicile outside
the Government’s country; “Local Personnel” means such professionals
and support staff who at the time of being so provided had their domicile
inside the Government’s country.
(10) “Proposal” means the Technical Proposal and the Financial Proposal.
(11) “RFP” means the Request For Proposal to be prepared by the Client for the
selection of Consultants, based on the Standard Request for Proposals.
(12) “SRFP” means the Standard Request for Proposals, which must be used by
the Client as a guide for the preparation of the RFP.
(13) “Services” means the work to be performed by the Consultant pursuant to

the Contract.
(14) “Sub-Consultant” means any person or entity with whom the Consultant
subcontracts any part of the Services.
(15) “Terms of Reference” (TOR) means the document included in the RFP as
Section 5 which explains the objectives, scope of work, activities, tasks to
Page | 402

be performed, respective responsibilities of the Client and the Consultant,
and expected results and deliverables of the assignment.
1. Introduction
(1) The Client named in the Data Sheet will select a consulting
Consultant/organization (the Consultant) from those listed in the Letter
of Invitation, in accordance with the method of selection specified in the
Data Sheet.
(2) The short-listed Consultants are invited to submit a Technical Proposal

and a Financial Proposal, or a Technical Proposal only, as specified in the
Data Sheet, for consulting services required for the assignment named in
the Data Sheet. The Proposal will be the basis for contract negotiations
and ultimately for a signed Contract with the selected Consultant.
(3) Consultants should familiarize themselves with local conditions and take
them into account in preparing their Proposals. To obtain first-hand
information on the assignment and local conditions, Consultants are
encouraged to visit the Client before submitting a proposal and to attend
a pre-proposal conference if one is specified in the Data Sheet. Attending
the pre-proposal conference is optional. Consultants should contact the
Client’s representative named in the Data Sheet to arrange for their visit
or to obtain additional information on the pre-proposal conference.
Consultants should ensure that these officials are advised of the visit in
adequate time to allow them to make appropriate arrangements.
(4) The Client will timely provide at no cost to the Consultants the inputs and
facilities specified in the Data Sheet, assist the Consultant in obtaining
licenses and permits needed to carry out the services, and make available
relevant project data and reports.
(5) Consultants shall bear all costs associated with the preparation and
submission of their proposals and contract negotiation. The Client is not
bound to accept any proposal, and reserves the right to annul the
selection process at any time prior to Contract award, without thereby
incurring any liability to the Consultants.
Page | 403

2. Conflict of Interest
(1) Rwanda Public Procurement policy requires that Consultants provide

professional, objective, and impartial advice and at all times hold the
Client’s interests paramount, strictly avoid conflicts with other
assignments or their own corporate interests, act without any
consideration for future work and in accordance with the law on public
procurement as completed and modified to date.
(2) Without limitation on the generality of the foregoing, Consultants, and

any of their affiliates, shall be considered to have a conflict of interest
and shall not be recruited, under any of the circumstances set forth
below:
3. Conflicting activities
A Consultant that has been engaged by the Client to provide goods, works or
services other than consulting services for a project, and any of its affiliates,
shall be disqualified from providing consulting services related to those goods,
works or services. Conversely, a Consultant hired to provide consulting services
for the preparation or implementation of a project, and any of its affiliates, shall
be disqualified from subsequently providing goods or works or services other
than consulting services resulting from or directly related to the Consultant’s
consulting services for such preparation or implementation. For the purpose of
this paragraph, services other than consulting services are defined as those
leading to a measurable physical output, for example surveys, exploratory
drilling, aerial photography, and satellite imagery.
4. Conflicting assignments
A Consultant (including its Personnel and Sub-Consultants) or any of its

affiliates shall not be hired for any assignment that, by its nature, may be in
conflict with another assignment of the Consultant to be executed for the same
or for another Client. For example, a Consultant hired to prepare engineering
design for an infrastructure project shall not be engaged to prepare an
independent environmental assessment for the same project, and a Consultant
Page | 404

assisting a Client in the privatization of public assets shall not purchase, nor
advise purchasers of, such assets. Similarly, a Consultant hired to prepare
Terms of Reference for an assignment should not be hired for the assignment in
question.
5. Conflicting relationships
A Consultant (including its Personnel and Sub-Consultants) that has a business

or family relationship with a member of the Client’s staff who is directly or
indirectly involved in any part of (i) the preparation of the Terms of Reference of
the assignment, (ii) the selection process for such assignment, or (iii)
supervision of the Contract, shall not be awarded a Contract.
(1) Consultants have an obligation to disclose any situation of actual or

potential conflict that impacts their capacity to serve the best interest of
their Client, or that may reasonably be perceived as having this effect.
Failure to disclose said situations may lead to the disqualification of the
Consultant or the termination of its Contract.
(2) No current employees of the Client shall work as Consultants in

government ministries, departments or agencies. Recruiting former
government employees of the Client to work for their former ministries,
departments or agencies is acceptable provided no conflict of interest
exists.
6. Unfair Advantage
If a short-listed Consultant could derive a competitive advantage from having

provided consulting services related to the assignment in question, the Client
shall make available to all short-listed Consultants together with this RFP all
information that would in that respect give such Consultant any competitive
advantage over competing Consultants.
7. Fraud and Corruption
(1) The Rwanda public procurement regulations require that all procuring
entities, as well as Consultants participating public procurement adhere
Page | 405

to the highest ethical standards, both during the selection process and
throughout the execution of a contract. In pursuance of this policy, the
Rwanda public procurement laws and regulations:
(a) defines, for the purpose of this paragraph, the terms set forth below as
follows:
(i) “corrupt practice” means offering, giving, receiving, or soliciting, directly

or indirectly, of anything of value to influence a civil servant or
Government entity
(ii) “fraudulent practices” means any act or omission, including a

mislead a civil servant to obtain a financial or other benefit or to avoid
an obligation
(iii) “collusive practices” means means arrangement between two or more

parties designed to achieve an improper purpose, including influencing
another party or the civil servant
(iv) “coercive practices” means any act intending to harm or threaten to

harm directly or indirectly persons, their works or their property to
influence their participation in the procurement process or affect its
performance
(v) “Obstructive practices” means destroying, falsifying, altering or

concealing of evidence material to the investigation or making false
statements to investigators deliberately in order to materially impede
investigations into allegations of a corrupt, coercive or collusive practice:
and/or threatening, harassing or intimidating any party to prevent
him/her from disclosing his/her knowledge of matters relevant to the
investigation or from pursuing the investigations.
(a) require rejection of a proposal for award if it is determined that the

Consultant recommended for award has, directly or through an agent,
engaged in corrupt, fraudulent, collusive or coercive practices in competing
for the contract in question;
(b) require sanctions to a Consultant, including declaring the Consultant
ineligible, either indefinitely or for a stated period of time, to be awarded
any contract if at any time it is determined that the Consultant has, directly
Page | 406

through an agent, engaged in corrupt, fraudulent, collusive or coercive
practices in competing for, or in executing a contract; and
(c) gives the right to require that, a provision be included requiring
Consultants to permit the procuring entity to inspect their accounts and
records and other documents relating to the submission of proposals and
contract performance, and have them audited by auditors appointed by
client.
(2) Consultants, their Sub-Consultants, and their associates shall not be

under a declaration of ineligibility for corrupt and fraudulent practices
in accordance with the above para. 1.7.
(3) Consultants shall furnish information on commissions and gratuities, if

any, paid or to be paid to agents relating to this proposal and during
execution of the assignment if the Consultant is awarded the Contract,
as requested in the Financial Proposal submission form (Section 4).
8. Single Proposal
Short-listed Consultants may only submit one proposal. If a Consultant submits

or participates in more than one proposal, such proposals shall be disqualified.
However, this does not limit the participation of the same Sub-Consultant,
including individual experts, to more than one proposal.
9. Proposal Validity
The Data Sheet indicates how long Consultants’ Proposals must remain valid
after the submission date. During this period, Consultants shall maintain the
availability of Professional staff nominated in the Proposal. The Client will make
its best effort to complete negotiations within this period. Should the need arise,
however, the Client may request Consultants to extend the validity period of
their proposals. Consultants who agree to such extension shall certify that they
maintain the availability of the Professional staff nominated in the Proposal, or
in their confirmation of extension of validity of the Proposal, Consultants could
submit new staff in replacement, who would be considered in the final
Page | 407

evaluation for contract award. Consultants who do not agree have the right to
refuse to extend the validity of their Proposals.
Section 3: Clarification and Amendment of RFP

Documents
(1) Consultants may request a clarification of any of the RFP documents up

to the number of days indicated in the Data Sheet before the proposal
submission date. Any request for clarification must be sent in writing, or
by standard electronic means to the Client’s address indicated in the Data
Sheet. The Client will respond in writing, or by standard electronic means
and will send written copies of the response (including an explanation of
the query but without identifying the source of inquiry) to all Consultants.
Should the Client deem it necessary to amend the RFP as a result of a
clarification, it shall do so following the procedure under para. 2.2.
(2) At any time before the submission of Proposals, the Client may amend the
RFP by issuing an addendum in writing or by standard electronic means.
The addendum shall be sent to all Consultants and will be binding on
them. Consultants shall acknowledge receipt of all amendments. To give
Consultants reasonable time in which to take an amendment into account
in their Proposals the Client may, if the amendment is substantial, extend
the deadline for the submission of Proposals.
1. Preparation of Proposals
(1) The Proposal (see para. 1.2), as well as all related correspondence
exchanged by the Consultants and the Client, shall be written in the
language (s) specified in the Data Sheet.
(2) In preparing their Proposal, Consultants are expected to examine in

detail the documents comprising the RFP. Material deficiencies in
providing the information requested may result in rejection of a Proposal.
Page | 408

(3) While preparing the Technical Proposal, Consultants must give
particular attention to the following:
(a) If a short-listed Consultant considers that it may enhance its expertise for
the assignment by associating with other Consultants in a joint venture or
sub-consultancy, it may associate with either (a) non-short-listed
Consultant(s), or (b) short-listed Consultants if so indicated in the Data
Sheet. In case of association with non-short-listed Consultant(s), the short-
listed Consultant shall act as association leader. In case of a joint venture,
all partners shall be jointly and severally liable and shall indicate who will
act as the leader of the joint venture.
(b) The estimated number of Professional staff-months or the budget for

executing the assignment shall be shown in the Data Sheet, but not both.
However, the Proposal shall be based on the number of Professional staff-
months or budget estimated by the Consultants.
(c) For fixed-budget-based assignments, the available budget is given in the

Data Sheet, and the Financial Proposal shall not exceed this budget, while
the estimated number of Professional staff-months shall not be disclosed.
(d) Alternative professional staff shall not be proposed, and only one
curriculum vitae (CV) may be submitted for each position.
2. Language
Documents to be issued by the Consultants as part of this assignment must be

in the language(s) specified in the Reference Paragraph 3.1 of the Data Sheet. If
Reference Paragraph 3.1 indicates two languages, the language in which the
proposal of the successful Consultant will be submitted shall govern for the
purpose of interpretation. It is desirable that the Consultant’s Personnel have a
working knowledge of the Client’s national language.
3. Technical Proposal Format and Content
(1) Depending on the nature of the assignment, Consultants are required to submit a
Full Technical Proposal (FTP), or a Simplified Technical Proposal (STP). The Data
Sheet indicates the format of the Technical Proposal to be submitted. Submission
of the wrong type of Technical Proposal will result in the Proposal being deemed
Page | 409

non-responsive. The Technical Proposal shall provide the information indicated in
the following paragraphs from (a) to (g) using the attached Standard Forms (Section
3). Paragraph (c) (ii) indicates the recommended number of pages for the
description of the approach, methodology and work plan of the STP. A page is
considered to be one printed side of A4 or letter size paper.
(2) (a) For the FTP only: a brief description of the Consultants’ organization and an
outline of recent experience of the Consultants and, in the case of joint venture,
for each partner, on assignments of a similar nature is required in Form TECH-
2 of Section 3. For each assignment, the outline should indicate the names of
Sub-Consultants/ Professional staff who participated, duration of the
assignment, contract amount, and Consultant’s involvement. Information
should be provided only for those assignments for which the Consultant was
legally contracted by the Client as a corporation or as one of the major
Consultants within a joint venture. Assignments completed by individual
Professional staff working privately or through other consulting Consultants
cannot be claimed as the experience of the Consultant, or that of the
Consultant’s associates, but can be claimed by the Professional staff
themselves in their CVs. Consultants should be prepared to substantiate the
claimed experience if so requested by the Client.
(b) For the STP the above information is not required and Form TECH-2 of Section
3 shall not be used.
(3) (a) For the FTP only: comments and suggestions on the Terms of Reference including
workable suggestions that could improve the quality/ effectiveness of the
assignment; and on requirements for counterpart staff and facilities including:
administrative support, office space, local transportation, equipment, data, etc. to
be provided by the Client (Form TECH-3 of Section 3).
(b) For the STP Form TECH-3 of Section 3 shall not be used; the above comments
and suggestions, if any, should be incorporated into the description of the
approach and methodology (refer to following sub-para. 3.4 (c) (ii)).
(1) (a) For the FTP, and STP: a description of the approach, methodology and work
plan for performing the assignment covering the following subjects: technical
approach and methodology, work plan, and organization and staffing schedule.
Guidance on the content of this section of the Technical Proposals is provided
under Form TECH-4 of Section 3. The work plan should be consistent with the
Page | 410

Work Schedule (Form TECH-8 of Section 3) which will show in the form of a
bar chart the timing proposed for each activity.
(b) For the STP only: the description of the approach, methodology and work plan
should normally consist of about 10 pages, including charts, diagrams, and
comments and suggestions, if any, on Terms of Reference and counterpart staff
and facilities.
(5) The list of the proposed Professional staff team by area of expertise, the position
that would be assigned to each staff team member, and their tasks (Form TECH-5
of Section 3).
(6) Estimates of the staff input (staff-months of foreign and local professionals) needed
to carry out the assignment (Form TECH-7 of Section 3). The staff-months input
should be indicated separately for home office and field activities, and for foreign
and local Professional staff.
(7) CVs of the Professional staff signed by the staff themselves or by the authorized
representative of the Professional Staff (Form TECH-6 of Section 3).
(8) For the FTP only: a detailed description of the proposed methodology and staffing
for training, if the Data Sheet specifies training as a specific component of the
assignment.
(5) The Technical Proposal shall not include any financial information. A
Technical Proposal containing financial information may be declared non
responsive.
4. Financial Proposals
The Financial Proposal shall be prepared using the attached Standard Forms
(Section 4). It shall list all costs associated with the assignment, including (a)
remuneration for staff (foreign and local, in the field and at the Consultants’
home office), and (b) reimbursable expenses indicated in the Data Sheet. If
appropriate, these costs should be broken down by activity and, if appropriate,
into foreign and local expenditures. All activities and items described in the
Technical Proposal must be priced separately; activities and items described in
the Technical Proposal but not priced, shall be assumed to be included in the
prices of other activities or items.
Page | 411

5. Taxes
(1) The Consultant may be subject to local taxes (such as: value added or
sales tax, social charges or income taxes on non resident Foreign
Personnel, duties, fees, levies) on amounts payable by the Client under
the Contract. The Client will state in the Data Sheet if the Consultant is
subject to payment of any local taxes.
(2) 3.8. Consultants may express the price of their services in a maximum of three
freely convertible currencies, singly or in combination. The Client may require
Consultants to state the portion of their price representing local cost in the
national currency if so indicated in the Data Sheet.
(3) Commissions and gratuities, if any, paid or to be paid by Consultants

and related to the assignment will be listed in the Financial Proposal
Form FIN-1 of Section 4.
6. Submission, Receipt, and Opening of Proposals
(1) The original proposal (Technical Proposal and, if required, Financial

Proposal; see para. 1.2) shall contain no interlineations or overwriting,
except as necessary to correct errors made by the Consultants
themselves. The person who signed the proposal must initial such
corrections. Submission letters for both Technical and Financial
Proposals should respectively be in the format of TECH-1 of Section 3,
and FIN-1 of Section 4.
(2) An authorized representative of the Consultants shall initial all pages of

the original Technical and Financial Proposals. The authorization shall
be in the form of a written power of attorney accompanying the Proposal
or in any other form demonstrating that the representative has been
dully authorized to sign. The signed Technical and Financial Proposals
shall be marked “ORIGINAL”.
(3) The Technical Proposal shall be marked “ORIGINAL” or “COPY” as

appropriate. The Technical Proposals shall be sent to the addresses
referred to in para. 4.5 and in the number of copies indicated in the Data
Sheet. All required copies of the Technical Proposal are to be made from
Page | 412

the original. If there are discrepancies between the original and the
copies of the Technical Proposal, the original governs.
(4) The original and all copies of the Technical Proposal shall be placed in
a sealed envelope clearly marked “TECHNICAL PROPOSAL” Similarly, the
original Financial Proposal (if required under the selection method
indicated in the Data Sheet) shall be placed in a sealed envelope clearly
marked “FINANCIAL PROPOSAL” followed by the number and the name of
the assignment, and with a warning “DO NOT OPEN WITH THE TECHNICAL
PROPOSAL.” The envelopes containing the Technical and Financial
Proposals shall be placed into an outer envelope and sealed. This outer
envelope shall bear the submission address, reference number and title
of the Loan, and be clearly marked “DO NOT OPEN, EXCEPT IN PUBLIC”.
The Client shall not be responsible for misplacement, losing or
premature opening if the outer envelope is not sealed and/or marked as
stipulated. This circumstance may be case for Proposal rejection. If the
Financial Proposal is not submitted in a separate sealed envelope duly
marked as indicated above, this will constitute grounds for declaring the
Proposal non-responsive.
(5) The Proposals must be sent to the address/addresses indicated in the

Data Sheet and received by the Client no later than the time and the
date indicated in the Data Sheet, or any extension to this date in
accordance with para. 2.2. Any proposal received by the Client after the
deadline for submission shall be returned unopened.
(6) The Client shall open the Technical Proposal immediately after the
deadline for their submission. The envelopes with the Financial Proposal
shall remain sealed and securely stored.
7. Proposal Evaluation
From the time the Proposals are opened to the time the Contract is awarded,
the Consultants should not contact the Client on any matter related to its
Technical and/or Financial Proposal. Any effort by Consultants to influence the
Client in the examination, evaluation, ranking of Proposals, and
Page | 413

recommendation for award of Contract may result in the rejection of the
Consultants’ Proposal.
Evaluators of Technical Proposals shall have no access to the Financial

Proposals until the technical evaluation is concluded.
8. Evaluation of Technical Proposals
The evaluation committee shall evaluate the Technical Proposals on the basis of
their responsiveness to the Terms of Reference, applying the evaluation criteria,
sub-criteria, and point system specified in the Data Sheet. Each responsive
Proposal will be given a technical score (St). A Proposal shall be rejected at this
stage if it does not respond to important aspects of the RFP, and particularly
the Terms of Reference or if it fails to achieve the minimum technical score
indicated in the Data Sheet.
9. Financial Proposals for Quality Based Selection (QBS)
Following the ranking of technical Proposals, when selection is based on quality

only (QBS), the first ranked Consultant is invited to negotiate its proposal and
the Contract in accordance with the instructions given under clause 6 of these
Instructions.
Section 5: Public Opening and Evaluation of Financial Proposals

(only for QCBS, FBS, and LCS)
1. (a) After the technical evaluation is completed, the Client shall inform the
Consultants who have submitted proposals the technical scores obtained
by their Technical Proposals, and shall notify those Consultants whose
Proposals did not meet the minimum qualifying mark or were considered
non responsive to the RFP and TOR, that their Financial Proposals will be
returned unopened after completing the selection process. The Client
shall simultaneously notify in writing Consultants that have secured the
minimum qualifying mark, the date, time and location for opening the
Financial Proposals. The opening date shall not be sooner than seven days
Page | 414

after the notification date. The notification may be done by hand with
acknowledgement of receipt or be sent by registered letter, cable, telex,
facsimile.
(a) Financial Proposals shall be opened publicly in the presence of the

Consultants’ representatives who choose to attend. The name of the
Consultants and the technical scores of the Consultants shall be read
aloud. The Financial Proposal of the Consultants who met the minimum
qualifying mark will then be inspected to certify that they have remained
sealed and unopened. These Financial Proposals shall be then opened,
and the total prices read aloud and recorded. Consultants’ attendance at
the opening of Financial Proposals is optional.
(b) The Evaluation Committee will correct any computational errors. When
correcting computational errors, in case of discrepancy between a partial
amount and the total amount, or between word and figures the formers
will prevail. In addition to the above corrections, as indicated under para.
3.6, activities and items described in the Technical Proposal but not
priced, shall be assumed to be included in the prices of other activities
or items. In case an activity or line item is quantified in the Financial
Proposal differently from the Technical Proposal, (i) if the Time-Based
form of contract has been included in the RFP, the Evaluation Committee
shall correct the quantification indicated in the Financial Proposal so as
to make it consistent with that indicated in the Technical Proposal, apply
the relevant unit price included in the Financial Proposal to the corrected
quantity and correct the total Proposal cost, (ii) if the Lump-Sum form of
contract has been included in the RFP, no corrections are applied to the
Financial Proposal in this respect. Prices shall be converted to a single
currency using the selling rates of exchange, source and date indicated
in the Data Sheet.
(c) In case of QCBS, the lowest evaluated Financial Proposal (Fm) will be
given the maximum financial score (Sf) of 100 points. The financial scores
(Sf) of the other Financial Proposals will be computed as indicated in the
Data Sheet. Proposals will be ranked according to their combined
technical (St) and financial (Sf) scores using the weights (T = the weight
Page | 415

given to the Technical Proposal; P = the weight given to the Financial
Proposal; T + P = 1) indicated in the Data Sheet: S = St x T% + Sf x P%.
The Consultant achieving the highest combined technical and financial
score will be invited for negotiations.
(d) In the case of Fixed-Budget Selection, the Client will select the
Consultant that submitted the highest ranked Technical Proposal within
the budget. Proposals that exceed the indicated budget will be rejected.
In the case of the Least-Cost Selection, the Client will select the lowest
proposal among those that passed the minimum technical score. In both
cases the evaluated proposal price according to para. 5.6 shall be
considered, and the selected Consultant is invited for negotiations.
2. Negotiations
Negotiations will be held at the date and address indicated in the Data Sheet.
The invited Consultant will, as a pre-requisite for attendance at the negotiations,
certify availability of all Professional staff. Failure in satisfying such
requirements may result in the Client proceeding to negotiate with the next-
ranked Consultant. Representatives conducting negotiations on behalf of the
Consultant must have written authority to negotiate and conclude a Contract.
3. Technical negotiations
Negotiations will include a discussion of the Technical Proposal, the proposed

technical approach and methodology, work plan, and organization and staffing,
and any suggestions made by the Consultant to improve the Terms of Reference.
The Client and the Consultants will finalize the Terms of Reference, staffing
schedule, work schedule, logistics, and reporting. These documents will then be
incorporated in the Contract as “Description of Services”. Special attention will
be paid to clearly defining the inputs and facilities required from the Client to
ensure satisfactory implementation of the assignment. The Client shall prepare
minutes of negotiations which will be signed by the Client and the Consultant.
Page | 416

4. Financial negotiations
If applicable, it is the responsibility of the Consultant, before starting financial

negotiations, to contact the local tax authorities to determine the local tax
amount to be paid by the Consultant under the Contract. The financial
negotiations will include a clarification (if any) of the Consultant’s tax liability
in the Republic of Rwanda, and the manner in which it will be reflected in the
Contract; and will reflect the agreed technical modifications in the cost of the
services. In the cases of QCBS, Fixed-Budget Selection, and the Least-Cost
Selection methods, unless there are exceptional reasons, the financial
negotiations will involve neither the remuneration rates for staff nor other
proposed unit rates. For other methods, Consultants will provide the Client with
the information on remuneration rates described in the Appendix attached to
Section 4 - Financial Proposal - Standard Forms of this RFP.
5. Availability of Professional staff/experts
Having selected the Consultant on the basis of, among other things, an
evaluation of proposed Professional staff, the Client expects to negotiate a
Contract on the basis of the Professional staff named in the Proposal. Before
contract negotiations, the Client will require assurances that the Professional
staff will be actually available. The Client will not consider substitutions during
contract negotiations unless both parties agree that undue delay in the selection
process makes such substitution unavoidable or for reasons such as death or
medical incapacity. If this is not the case and if it is established that Professional
staff were offered in the proposal without confirming their availability, the
Consultant may be disqualified. Any proposed substitute shall have equivalent
or better qualifications and experience than the original candidate and be
submitted by the Consultant within the period of time specified in the letter of
invitation to negotiate.
Page | 417

6. Conclusion of the negotiations
Negotiations will conclude with a review of the draft Contract. To complete

negotiations the Client and the Consultant will initial the agreed Contract. If
negotiations fail, the Client will invite the Consultant whose Proposal received
the second highest score to negotiate a Contract.
7. Award of Contract
(1) After completing negotiations the Client shall award the Contract to the
best selected Consultant, and promptly notify all Consultants who have
submitted proposals. After Contract signature, the Client shall return
the unopened Financial Proposals to the unsuccessful Consultants.
(2) The Consultant is expected to commence the assignment on the date

and at the location specified in the Data Sheet.
8. Confidentiality
Information relating to evaluation of Proposals and recommendations

concerning awards shall not be disclosed to the Consultants who submitted the
Proposals or to other persons not officially concerned with the process, until the
publication of the award of Contract. The undue use by any Consultant of
confidential information related to the process may result in the rejection of its
Proposal and may be subject to the sanctions under the law on public
procurement.
Page | 418

Instructions to Consultants, Data Sheet
Paragraph
Reference
1.1 Name of the Client: (Insert the name of the client)
Method of selection: (Insert the procurement method, e.g.: QCBS,

etc.)
1.2 Financial Proposal to be submitted together with Technical

Proposal: YES __/NO _______
Name of the assignment is:
(Insert the name of the assignment or title of the tender.)
1.3 A pre-proposal conference will be held: YES ________

/NO__________
The Client’s representative is: (Insert the name, address and Title
of the Procuring entity Representative)
Is there any pre-bid conference: Yes/No
1.4 The Client will provide the following inputs and facilities:
______________________________________________
1.6.1 The Client envisages the need for continuity for downstream work:
YES _________ /NO____________
1.11 Proposals must remain valid __________ after the submission date,
i.e. until: [Insert date]
2.1 Clarifications may be requested not later than ____________ (Insert

number of days not less than 21 days for International Tenders and
14 days for National Tenders) before the submission date.
Page | 419

The address for requesting clarifications is:
_______________________
(Insert the name and full address of the Procuring entity)
3.1 Proposals shall be submitted in FRENCH OR ENGLISH
3.3 (a) Short-listed Consultants may associate with other short-listed

Consultants: YES_____ / NO_________
3.3 (b) The estimated number of key personnel is :.............staff/month

for the Team leader
The available budget is ______________________
( Indicate the budget for Fixed Budget Method only)
3.4 The format of the Technical Proposal to be submitted is:

______________
3.4 (g) Training is a specific component of this assignment:

YES_____/NO______
3.6 Reimbursable expenses to be included in the Financial Proposal

are:
(1) a per diem allowance in respect of Personnel of the Consultant

for every day in which the Personnel shall be absent from the
home office and, as applicable, outside the Republic of Rwanda
for purposes of the Services;
(2) cost of necessary travel, including transportation of the

Personnel by the most appropriate means of transport and the
most direct practicable route;
(3) cost of office accommodation, investigations and surveys;
Page | 420

(4) cost of applicable international or local communications such
as the use of telephone and facsimile required for the purpose of
the Services;
(5) cost, rental and freight of any instruments or equipment
required to be provided by the Consultants for the purposes of the
Services;
(6) cost of printing and dispatching of the reports to be produced

for the Services;
(7) other allowances where applicable and provisional or fixed

sums (if any); and
(8) cost of such further items required for purposes of the

Services not covered in the foregoing.
3.7 Amounts payable by the Client to the Consultant under the

contract to be subject to local taxation:
YES__________/NO_____________
3.8 Consultant to state local cost in the national currency:

YES___/NO___/
Optional___
4.3 Consultant must submit the original and _______ copies of both
the Technical Proposal and Financial Proposal.
4.5 The Proposal submission address is:

(Insert the name and address of the Procuring entity)
Proposals must be submitted no later than the following date and

time:
Page | 421

5.2 Criteria, sub-criteria, and point system for the evaluation of Full
Technical Proposals are:
1° General experience of the firm in the field: 5 to 15 points;
2° Relevant experience in similar services: 10 to 20 points;

[Insert sub-criteria]
3° Quality of the methodology proposed: 20 to 30 points;

4° Qualifications and experience of the key personnel proposed for

the mission: 40 to 60 points;
5° Transfer of knowledge or technology: 0 to 10 points (where

applicable);
6° Participation of Nationals: 5 to 10 points (where required).
Total points for the four criteria: 100
The minimum technical score St required to pass is : (Insert the

minimum score)
5.6 The single currency for price conversions is: ( Insert the currency
e.g: US$)
Page | 422

The source of official selling rates is: (Insert the source e.g.: BNR)
The date of exchange rates is: (Insert the date e.g.: Date of opening
of the Financial Proposal)
5.7 The formula for determining the financial scores is the following:
Sf = 100 x Fm / F, in which Sf is the financial score, Fm is the lowest
price and F the price of the proposal under consideration.
The weights given to the technical and Financial Proposals are:

T=_________ [Normally between 0.7 and 0.9], and
P=_________ [Normally between 0.1 and 0.3]
6.1 Address for contract negotiations:

(Insert the name and address of the Procuring entity
7.2 Expected date for commencement of consulting services : [Insert

date] at [Insert location]:
Page | 423

Section 3. Technical Proposal - Standard Forms
[Comments in brackets [ ] provide guidance to the short-listed Consultants for

the preparation of their Technical Proposals; they should not appear on the
Technical Proposals to be submitted.]
Refer to Reference Paragraph 3.4 of the Data Sheet for format of Technical
Proposal to be submitted, and paragraph 3.4 of Section 2 of the RFP for
Standard Forms required and number of pages recommended.
TECH-1 Technical Proposal Submission Form
TECH-2 Consultant’s Organization and Experience

A Consultant’s Organization
B Consultant’s Experience
TECH-3 Comments or Suggestions on the Terms of Reference and on

Counterpart Staff and Facilities to be Provided by the Client
A On the Terms of Reference
B On the Counterpart Staff and Facilities
TECH-4 Description of the Approach, Methodology and Work Plan for

Performing the Assignment
TECH-5 Team Composition and Task Assignments
TECH-6 Curriculum Vitae (CV) for Proposed Professional Staff
TECH-7 Staffing Schedule
TECH-8 Work Schedule
Page | 424

Form TECH-1: Technical Proposal Submission Form
[Location, Date]
To: [Name and address of Client]
Dear Sirs:
We, the undersigned, offer to provide the consulting services for [Insert title
of assignment] in accordance with your Request for Proposal dated [Insert
Date] and our Proposal. We are hereby submitting our Proposal, which
includes this Technical Proposal, and a Financial Proposal sealed under a
separate envelope1.
We are submitting our Proposal in association with: [Insert a list with full
name and address of each associated Consultant]2
We hereby declare that all the information and statements made in this
Proposal are true and accept that any misinterpretation contained in it may
lead to our disqualification.
If negotiations are held during the period of validity of the Proposal, i.e.,
before the date indicated in Paragraph Reference 1.11 of the Data Sheet,
we undertake to negotiate on the basis of the proposed staff. Our Proposal
is binding upon us and subject to the modifications resulting from Contract
negotiations.
We undertake, if our Proposal is accepted, to initiate the consulting services

related to the assignment not later than the date indicated in Paragraph
Reference 7.2 of the Data Sheet.
We understand you are not bound to accept any Proposal you receive.
Page | 425

We remain,
Yours sincerely,
Authorized Signature :
Name and Title of Signatory:
Name of Consultant:
Address:
1 [In case Paragraph Reference 1.2 of the Data Sheet requires to submit a
Technical Proposal only, replace this sentence with: “We are hereby submitting
our Proposal, which includes this Technical Proposal only.”]
2 [Delete in case no association is foreseen.]
Page | 426

Form TECH-2 Consultant’s Organization and Experience
A - Consultant’s Organization
[Provide here a brief (two pages) description of the background and organization
of your Consultant/entity and each associate for this assignment.]
Page | 427

B - Consultant’s Experience
[Using the format below, provide information on each assignment for which your
Consultant, and each associate for this assignment, was legally contracted either
individually as a corporate entity or as one of the major Entities within an
association, for carrying out consulting services similar to the ones requested
under this assignment.]
Assignment name: Approx. value of the contract (in

currency: Rwanda francs or freely
convertible currency]
Country: Duration of assignment (months):
Location within country:
Name of Client: Total No of staff-months of the
assignment:
Address: Approx. value of the services provided
by your Consultant under the
contract (in currency: US$, Euro, RWF,
etc…):
Start date (month/year): No of professional staff-months
Completion date (month/year): provided by associated Consultants:
Name of associated Consultants, if Name of senior professional staff of

any: your Consultant involved and
functions performed (indicate most
significant profiles such as Project
Director/Coordinator, Team Leader):
Narrative description of Project:
Description of actual services provided by your staff within the assignment:
Consultant’s Name: and Signature
Page | 428

Form TECH-3 Comments and Suggestions on the Terms of
Reference and on Counterpart Staff and Facilities to be Provided
by the Client
A - On the Terms of Reference
[Present and justify here any modifications or improvement to the Terms of

Reference you are proposing to improve performance in carrying out the
assignment (such as deleting some activity you consider unnecessary, or adding
another, or proposing a different phasing of the activities). Such suggestions
should be concise and to the point, and incorporated in your Proposal.]
Page | 429

B - On Counterpart Staff and Facilities
[Comment here on counterpart staff and facilities to be provided by the Client

according to Paragraph Reference 1.4 of the Data Sheet including: administrative
support, office space, local transportation, equipment, data, etc.]
Page | 430

Form TECH-4 Description of Approach, Methodology and Work
Plan for Performing the Assignment
Page | 431

Form TECH-5 Team Composition and Task Assignments
Professional Staff
Area of Position
Name of Staff Consultant Task Assigned
Expertise Assigned
Page | 432

Form TECH-6 Curriculum Vitae (CV) for Proposed Professional
Staff
1. Proposed Position [only one candidate shall be nominated for each

position]:
2. Name of Consultant [Insert name of Consultant proposing the staff]:
3. Name of Staff [Insert full name]:
4. Date of Birth:
Nationality:
5. Education [Indicate college/university and other specialized education of

staff member, giving names of institutions, degrees obtained, and dates of
obtainment]:
6. Membership of Professional Associations:
7. Other Training [Indicate significant training since degrees under 5 -

Education were obtained]:
8. Countries of Work Experience: [List countries where staff has worked

in the last ten
years]:
9. Languages [For each language indicate proficiency: good, fair, or poor in

speaking, reading, and writing]:
10. Employment Record [Starting with present position, list in reverse order
every employment held by staff member since graduation, giving for each
employment (see format here below): dates of employment, name of
employing organization, positions held.]:
Page | 433

From [Year]: To [Year]:
Employer:
Positions held:
11. Detailed Tasks 12.Work Undertaken that Best Illustrates

Assigned Capability to Handle the Tasks Assigned
[Among the assignments in which the staff has

[List all tasks to be been involved, indicate the following information
performed under this for those assignments that best illustrate staff
assignment] capability to handle the tasks listed under point
11.]
Name of assignment or project:
Year:
Location:
Client:
Main project features:
Positions held:
Activities performed:
Page | 434

13. Certification:
I, the undersigned, certify that to the best of my knowledge and belief, this CV
correctly describes myself, my qualifications, and my experience. I understand
that any wilful misstatement described herein may lead to my disqualification
or dismissal, if engaged.
Date:
[Name and Signature of staff member or authorized representative of the staff]
Day/Month/Year
Page | 435

FORM TECH-7 Staffing Schedule
Total staff-month
Staff input (in the form of a bar chart)2
N° Name of Staff input
1 2 3 4 5 6 7 8 9 10 11 12 n Home Field Total
Foreign
[Ho
me]
1
[Fiel
d]
Subtotal
Local
Page | 436

[Ho
me]
1
[Fiel
d]
Subtotal
Total
1 For Professional Staff the input should be indicated individually; for Support Staff it should be indicated by
category (e.g.: draftsmen, clerical staff, etc.).
2 Months are counted from the start of the assignment. For each staff indicate separately staff input for home and
field work.
3 Field work means work carried out at a place other than the Consultant's home office.
Full time input

Part time input
Page | 437

Form TECH-8 Work Schedule
Months2
Activity1
1 2 3 4 5 6 7 8 9 10 11 12 n
1 Indicate all main activities of the assignment, including delivery of reports (e.g.: inception, interim, and final reports),
and other benchmarks such as Client approvals. For phased assignments indicate activities, delivery of reports, and
benchmarks separately for each phase.
2 Duration of activities shall be indicated in the form of a bar chart.
Page | 438

Section 4. Financial Proposal - Standard Forms
[Comments in brackets [ ] provide guidance to the shortlisted Consultants

for the preparation of their Financial Proposals; they should not appear
on the Financial Proposals to be submitted.]
Financial Proposal Standard Forms shall be used for the preparation of

the Financial Proposal according to the instructions provided under
para. 3.6 of Section 2. Such Forms are to be used whichever is the
selection method indicated in para. 4 of the Letter of Invitation.
[The Appendix “Financial Negotiations - Breakdown of Remuneration Rates”

is to be only used for financial negotiations when Quality-Based
Selection, Selection Based on Qualifications, or Single-Source Selection
method is adopted, according to the indications provided under para.
6.3 of Section 2.]
FIN-1 Financial Proposal Submission Form
FIN-2 Summary of Costs
FIN-3 Breakdown of Costs by Activity
FIN-4 Breakdown of Remuneration
FIN-5 Reimbursable expenses
Appendix: Financial Negotiations - Breakdown of Remuneration Rates
Page | 439

FORM FIN-1 FINANCIAL Proposal Submission Form
[Location, Date]
To: [Name and address of Client]
Dear Sirs:
We, the undersigned, offer to provide the consulting services for [Insert title
of assignment] in accordance with your Request for Proposal dated [Insert
Date] and our Technical Proposal. Our attached Financial Proposal is for
the sum of [Insert amount(s) in words and figures1]. This amount is
exclusive of the local taxes, which shall be identified during negotiations
and shall be added to the above amount.
Our Financial Proposal shall be binding upon us subject to the

modifications resulting from Contract negotiations, up to expiration of the
validity period of the Proposal, i.e. before the date indicated in Paragraph
Reference 1.11 of the Data Sheet.
Commissions and gratuities paid or to be paid by us to agents relating to

this Proposal and Contract execution, if we are awarded the Contract, are
listed below2:
We understand you are not bound to accept any Proposal you receive.
We remain,
Yours faithfully,
Authorized Signature [In full and initials]:

Name and Title of Signatory:
Name of Consultant:
Address:
Page | 440

1 Amounts must coincide with the ones indicated under Total Cost of
Financial proposal in Form FIN-2.
2 If applicable, replace this paragraph with: “No commissions or gratuities

have been or are to paid by us to agents relating to this Proposal and
Contract execution.”
Page | 441

FORM FIN-2 Summary of Costs
Costs
Item [Indicate [Indicate [Indicate [Indicate
Foreign Foreign Foreign Local
Currency # 1]1 Currency # 2]1 Currency # 3]1 Currency]
Total Costs of Financial Proposal 2
1 Indicate between brackets the name of the foreign currency. Maximum of three currencies; use as many columns as
needed, and delete the others.
2 Indicate the total costs, net of local taxes, to be paid by the Client in each currency. Such total costs must coincide
with the sum of the relevant Subtotals indicated in all Forms FIN-3 provided with the Proposal.
Page | 442

FORM FIN-3 BREAKDOWN of Costs by Activity1
Group of Activities (Phase):2 Description:3
Costs
[Indicate [Indicate [Indicate [Indicate

Cost component
Foreign Foreign Foreign Local
Currency # 1]4 Currency # 2]4 Currency # 3]4 Currency]
Remuneration5
Reimbursable Expenses 5
Subtotals
1 Form FIN-3 shall be filled at least for the whole assignment. In case some of the activities require different modes of
billing and payment (e.g.: the assignment is phased, and each phase has a different payment schedule), the
Consultant shall fill a separate Form FIN-3 for each group of activities. For each currency, the sum of the relevant
Subtotals of all Forms FIN-3 provided must coincide with the Total Costs of Financial Proposal indicated in Form FIN-
2.
2 Names of activities (phase) should be the same as, or correspond to the ones indicated in the second column of Form
TECH-8.
3 Short description of the activities whose cost breakdown is provided in this Form.
Page | 443

4 Indicate between brackets the name of the foreign currency. Use the same columns and currencies of Form FIN-2.
5 For each currency, Remuneration and Reimbursable Expenses must respectively coincide with relevant Total Costs
indicated in Forms FIN-4, and FIN-5.
Page | 444

FORM FIN-4 BREAKDOWN of Remuneration1
(This Form FIN-4 shall only be used when the Time-Based Form of Contract has been included in the RFP)
Group of Activities (Phase):
[Indicate [Indicate [Indicate

Staff- Input5 [Indicate
Foreign Foreign Foreign
Name2 Position3 month (Staff- Local
Currency # Currency # Currency #
Rate4 months) Currency]6
1]6 2]6 3]6
Foreign Staff
[Home]
[Field]
Local Staff
[Home]
[Field]
Page | 445

Total
Costs
1 Form FIN-4 shall be filled for each of the Forms FIN-3 provided.
2 Professional Staff should be indicated individually; Support Staff should be indicated per category (e.g.: draftsmen,
clerical staff).
3 Positions of Professional Staff shall coincide with the ones indicated in Form TECH-5.
4 Indicate separately staff-month rate and currency for home and field work.
5 Indicate, separately for home and field work, the total expected input of staff for carrying out group of activities or as
indicated in the Form.
For each staff indicate the remuneration in the column of the relevant currency, separately for home and field work.
Remuneration = Staff-month Rate X Input.
Page | 446

FORM FIN-5 BREAKDOWN of Remuneration1
(This Form FIN-5 shall only be used when the Lump-Sum Form of Contract
has been included in the RFP. Information to be provided in this Form shall
only be used to establish payments to the Consultant for possible additional
services requested by the Client)
Name2 Position3 Staff-month Rate4
Foreign Staff
[Home]
[Field]
Local Staff
[Home]
[Field]
1 Form FIN-4 shall be filled in for the same Professional and Support Staff
listed in Form TECH-7.
2 Professional Staff should be indicated individually; Support Staff should be

indicated per category (e.g.: draftsmen, clerical staff).
3 Positions of the Professional Staff shall coincide with the ones indicated in
Form TECH-5.
4 Indicate separately staff-month rate and currency for home and field work
Page | 447

Form FIN-6 BREAKDOWN of Reimbursable Expenses1
(This Form FIN-6 shall only be used when the Time-Based Form of Contract has been included in the RFP)
Group of Activities (Phase):

[Indicate [Indicate [Indicate
[Indicate
Unit Quanti Foreign Foreign Foreign
N° Description2 Unit Local
Cost3 ty Currency # Currency # Currency #
Currency]4
1]4 2]4 3]4
Per diem allowances Day
International flights5 Trip
Miscellaneous travel Trip
Communication costs
between [Insert place] and
[Insert place]
Drafting, reproduction of
Equipment, instruments,
materials, supplies, etc.
Shipment of personal effects Trip
Use of computers, software
Laboratory tests.
Subcontracts
Local transportation costs
Office rent, clerical
Page | 448

Training of the Client’s
personnel 6
Total Costs
1 Form FIN-5 should be filled for each of the Forms FIN-3 provided, if needed.
2 Delete items that are not applicable or add other items according to Paragraph Reference 3.6 of the Data Sheet.
3 Indicate unit cost and currency.
Indicate the cost of each reimbursable item in the column of the relevant currency. Cost = Unit Cost x Quantity.
5 Indicate route of each flight, and if the trip is one- or two-ways.
6 Only if the training is a major component of the assignment, defined as such in the TOR.
Page | 449

FORM FIN-7 BREAKDOWN of Reimbursable Expenses
(This Form FIN-7 shall only be used when the Lump-Sum Form of Contract has
been included in the RFP. Information to be provided in this Form shall only
be used to establish payments to the Consultant for possible additional services
requested by the Client)
Description1 Unit Unit Cost2
Per diem allowances Day
International flights3 Trip

Miscellaneous travel Trip
expenses
Communication costs
between [Insert place] and
Drafting, reproduction of
reports
Equipment, instruments,
materials supplies etc
Shipment of personal Trip
effects
Use of computers,
software
Laboratory tests.
Subcontracts
Local transportation
costs
Office rent, clerical
assistance
Training of the Client’s
personnel 4
1 Delete items that are not applicable or add other items according to
Paragraph Reference 3.6 of the Data Sheet.
2 Indicate unit cost and currency.
3 Indicate route of each flight, and if the trip is one- or two-ways.
4 Only if the training is a major component of the assignment, defined as such

in the TOR.
Page | 450

FORM FIN-8 CONSULTANT’S REPRESENTATIONS
REGARDING COSTS AND CHARGES
Consulting Consultant: Country:

Assignment: Date:
We hereby confirm that:
(a) the basic salaries indicated in the attached table are taken from the
Consultant’s payroll records and reflect the current salaries of the staff
members listed which have not been raised other than within the normal
annual salary increase policy as applied to all the Consultant’s staff;
(b) attached are true copies of the latest salary slips of the staff members listed;
(c) the away from headquarters allowances indicated below are those that the
Consultants have agreed to pay for this assignment to the staff members
listed;
(d) the factors listed in the attached table for social charges and overhead are
based on the Consultant’s average cost experiences for the latest three years
as represented by the Consultant’s financial statements; and
(e) said factors for overhead and social charges do not include any bonuses or
other means of profit-sharing.
[Name of Consulting Consultant]
Signature of Authorized Representative Date
Name:
Title:
Page | 451

FORM FIN- 9 CONSULTANT’S REPRESENTATIONS REGARDING COSTS AND

CHARGES
(Expressed in [insert name of currency])
Personnel 1 2 3 4 5 6 7 8
Basic Away Proposed Proposed
Salary per Social from Fixed Rate Fixed Rate
Overhe Subto
Name Position Working Charg Fee2 Headquar per Working per Working
ad1 tal
Month/Day es1 ters Month/Day/ Month/Day/
/Year Allowance Hour Hour1
Home Office
Field
1. Expressed as percentage of 1
2. Expressed as percentage of 4
Page | 452

SECTION 5. TERMS OF REFERENCE
Terms of Reference normally contain the following sections:
(a) Background,
(b) Objectives,
(c) Outputs,
(d) Scope of the Services,
(e) Training (when appropriate),
(f) Reports and Time Schedule, and,
(g) Data, Local Services, Personnel, and Facilities to be provided by the
Procuring Entity.
Page | 453

SECTIONS 6. STANDARD CONTRACT FOR

CONSULTANCY SERVICES
REPUBLIC OF RWANDA
Consultancy Contract
For ………………………………….
by and between
Name of the Procuring Entity: ........................................
And
…………………………………………………….
Contract number: …………………….
Contract amount and currency: …………………………
Contract duration: ………………..
Contract administrator/Manager: ………………….
Date of Contract: ……………………..
Page | 454

CONSULTANCY SERVICES CONTRACT
This Consultancy Services Contract Hereinafter referred to as the “Contract” is

entered into by and between “Name of Procuring Entity” represented by
Mr/Mrs/Ms……………………, the ……………… of “Name of Procuring
Entity”(Hereinafter referred to as “the Client” and …………….. Ltd/Cie, a …..
……………………. Represented by Mr/Mrs/Ms ……………………….., ID/PC
N°…………………………issued at………………………….., the ……………… of the
Company hereinafter referred to as the “Consultant”
Introduction
Whereas:
1. …………………
2. …………………
3. …………………
4. ………………...
Now therefore the parties hereby agree as follows
Article One: The object of this Contract
The object of this Contract is to provide the Client with the consultancy services
for the …………………………………, as detailed in the terms of reference attached
to this Contract as Annex I. and constituting integral part of this contract.
Article 2: Definitions
(1) Contract means, this agreement entered into between ………. and …….Ltd
together with the Contract documents referred to in this Contract that may
include any amendments thereto.
Page | 455

(2) Contract Documents mean the documents listed under Article 4 of this
Contract including any amendments thereto.
(3) Contract Price means the total price payable to the Consultant as specified
in the Contract Agreement, subject to such additions and adjustments
thereto or deductions there from, as may be made pursuant to the
Contract
(4) Completion means the fulfilment of the related services by the Consultant
in accordance with the terms and conditions set forth in the Contract
Documents and with the requirements of the profession.
(5) Day means calendar day.
(6) Force Majeure shall include, without limitation: Acts of God; acts of war,
terrorism or the public enemy, strikes, lockouts or other civil disturbances,
riots, hurricanes, floods, fires, explosions or destruction from any
involuntary cause of any character either similar or dissimilar to the
foregoing reasonably beyond the control of the party failing to perform.
(7) In writing means communicated in written form with proof of receipt
(8) Subcontractor means any natural person, private or government entity,

or a combination of the above, to which any part of the assignment to be
performed or execution of any part of the related services is subcontracted
by the Consultant;
(9) Corrupt practice means the offering, giving, receiving, or soliciting, directly or
indirectly, of anything of value to influence a civil servant or Government entity;
(10) fraudulent practice means any act or omission, including a misrepresentation,

that knowingly or recklessly misleads or attempts to mislead a civil servant to
obtain a financial or other benefit or to avoid an obligation;
(11) Collusive practice means arrangement between two or more parties designed to
achieve an improper purpose, including influencing another party or the civil
servant;
Page | 456

(12) Coercive practice means any act intending to harm or threaten to harm directly
or indirectly persons, their works or their property to influence their participation
in the procurement process or affect its performance;
(13) Obstructive practices means destroying, falsifying, altering or concealing of

evidence material to the investigation or making false statements to investigators
deliberately in order to materially impede investigations into allegations of a
corrupt, coercive or collusive practice: and/or threatening, harassing or
intimidating any party to prevent him/her from disclosing his/her knowledge of
matters relevant to the investigation or from pursuing the investigations.
Article 3: Management of the contract
The ………….. in charge of ……….. shall ensure the management of this contract
on behalf of the Client.
Article 4: Contract Documents
The services shall be performed in accordance with the Contract Documents

listed below in the order of their priority.
(1) This Contract
(2) Annex I: Terms of reference
(3) The minutes of negotiations
(4) The Notification
(5) The Request for proposal
(6) The proposal, both technical and financial
Should there be any conflict or ambiguity between any of the above listed
documents, priority shall be given in the order as listed above.
Page | 457

Article 5: Consultant's General Responsibilities
(1) The Consultant shall perform its obligations under this Contract with due
diligence and efficiency and in conformity with sound professional,
administrative and financial practices.
(2) The Consultant shall act at all times so as to protect, and not be in conflict
with, the interests of the Client, and shall take all reasonable steps to keep
all costs and expenses at a reasonable level.
(3) The Consultant shall be responsible for work or services performed by its
agents, servants, employees, subcontractors and independent contractors in
connection with this Contract. To this end, and without limiting the generality
of the foregoing, the Consultant shall select reliable persons who will perform
effectively and conform to the highest standards of professional, moral and
ethical conduct.
(4) The Consultant shall respect and abide by all applicable laws, regulations
and ordinances, and shall take all reasonable measures to ensure that its
agents, servants, employees, subcontractors and independent contractors do
so.
(5) The consultant shall, at all times in relation with this contract, be a liable
advisor of the client in accordance with professional ethics.
(6) The Consultant shall not be allowed to take any decision on behalf of the
Client without the latter’s prior written consent.
(7) The Consultant shall refrain from anything that may compromise his/her
independence during the performance of the assignment.
Article 6: Location
The Services shall be performed at ………………………………….(place).
Article 7: Duties and Obligations of the Parties
7.1 The Consultant shall, among others:
Page | 458

(1) Perform the duties and obligations under this Contract as specified in the
Terms of reference;
(2) Submit reports and other required deliverables in the time and conditions
specified in the terms of reference;
(3) …………………………..
(4) ………………………….
7.2 The Client shall:
(1) Pay the invoices submitted by the Consultant within the time limit specified
in this contract.
(2) Provide all documentation, materials, or any necessary information in its

possession required for the good performance of the service;
(3) Approve all required reports or give relevant recommendations within

fifteen (15) days. If the client fails to approve or give any feedback within
that period the report shall be considered as approved ;
Article 8: Deliverables and Penalty on Delayed Reports
The Consultant shall submit to the Client reports or deliverables as specified in the
terms of reference on Services rendered during the period reported on. In the event
that such report or deliverable is not timely submitted to the Client by the
Consultant within the period specified in the terms of reference, the Consultant
shall incur a penalty fee of 1‰ of the total of the contract price for each day of
delay until such report has been delivered to the Client. Once the maximum is
reached, the Client may terminate the Contract or extend its duration until full
completion. However such extension of the Contract shall not
exceed..................... days/month and penalties shall continue to accrue until
full completion of the contract or termination.
Article 9: Contract Price
(1) The Contract Price for the consultancy services is ………….. (Rwandan
Francs) (RwF ………….) all taxes Inclusive. The Contract Price is fixed and
Page | 459

cannot be revised during the course of the Contract, or during any

extension of time thereof.
(2) The contract price includes any fees, expenses or any other cost that the
Consultant might incur in relation with this Contract and no reimbursable
shall be claimed by the Consultant.
Article 10: Billing and Payment modalities
(1) The Consultant shall be paid upon presentation to and approval by the
Client of an invoice according to the payment periodicity specified in the
terms of reference.
(2) Each invoice shall be accompanied with a report as required in the terms
of reference and approved by the Client. No invoice shall be accepted by
the Client nor delays in payment considered if the invoice is not
accompanied by such a report.
(3) In the event of a disputed invoice, the Client shall notify the Consultant in
writing of the disputed amount within three (3) days of the invoice date,
amounts owed while the dispute is under negotiation. Upon the resolution
of a disputed invoice, the Client shall pay the remaining portions, if any,
of such invoice.
(4) All payments shall be paid to the following account:
(a) Account Holder: ……………………..
(b) Account number: …………………
(c) Bank Name: ………………
(d) Bank Address: ………………..
(5) Notwithstanding the foregoing or anything to the contrary contained

herein, the Consultant may, in its sole discretion and with thirty (30) days
Page | 460

prior written notice to Client, change the account to which such payments
are to be made, subject to the requirements by relevant authorities.
Article 11: Duration of the Contract
This Contract is concluded for a period of …………… (…) days/months/years

starting from the date of signing of this Contract by both parties, unless
terminated earlier or extended by agreement of the parties in an executed
addendum to this Contract.
Article 12: Termination:
In the event of unsatisfactory performance remedial measures shall be

undertaken failure to which termination of the Contract will be an available
option to the aggrieved party in accordance with the termination clauses under
this Contract.
(1) Subject to the relevant articles of this Contract, either party may, upon
giving thirty (30) days written notice identifying specifically the basis for
such notice, terminate this Contract for breach of a material term or
condition of this Contract unless the party receiving the notice cures such
breach within such thirty (30) day period.
(2) The Client may at any time and without assigning cause, terminate this
Contract by giving at least thirty (30) days prior written notice of
termination to the Consultant. During such period, the Contract shall
remain in full force and effect and both parties shall continue to perform
in accordance with this Contract.
(3) The Client may terminate this contract by serving a seven (7) day written
notice:
(a) If, in the judgment of the Client, the Consultant has engaged in fraud
and corruption, in competing for or in executing this Contract;
(b) If the Consultant has been declared insolvent or bankrupt by a

competent court.
Page | 461

(c) The Consultant has subcontracted this contract without informing and
agreeing with the Client;
(d) The Consultant refuses to use the prescribed materials as expected by
the Client;
(e) The Consultant fails to observe the laws and rules of Rwanda, to comply
with any final decision reached as a result of court or arbitration
proceedings, or the Client’s instructions;
(f) The Consultant demonstrates general negligence, alienation or
involves himself in some activities that dispose the Client’s rights
(g) The Consultant fails to start the work for three (3) consecutive days
from the date of signing this contract.
(4) The contract shall be automatically terminated when the Consultant

deserts his duties.
Upon termination of this Contract, the Client shall pay to the Consultant
remuneration for Services satisfactorily performed prior to the effective date
of termination, without prejudice to any remedy available to the client.
Article 13: Relationship
Nothing contained in this Contract shall be construed as establishing or creating

between the Client and the Consultant the relationship of master and servant,
principal and agent or employer and employee; it being understood that the
Consultant is an independent contractor in relation to the Client. No person
engaged by the Consultant in connection with the performance of any obligation
under this Contract shall be regarded as an agent, servant, employee of the
Client, and the Consultant shall be solely responsible for all claims by such
persons arising out of or in connection with their engagement by the
Consultant. The Consultant shall inform such persons of the foregoing.
Page | 462

Article 14: Assignment of Personnel
Other than persons specifically named in this Contract, no person shall be assigned
by the Consultant to work or perform services in connection with this Contract
until after the Consultant has notified of the Client of the identity of such
proposed persons and has provided the Client with their curricula vitae, and
the Client has notified the Consultant that the Client approves of such
assignments.
Article 15: Removal and/or replacement of Personnel
(1) Except as the Client may otherwise agree, no changes shall be made in the
personnel. If for any reason beyond the reasonable control of the
Consultant, it becomes necessary to replace any of the personnel, the
Consultant shall promptly provide as a replacement a person of equivalent
or better qualifications, subject to a written approval of the Client of the
proposed personnel.
(2) If the Client (i) finds that any of the personnel has committed a criminal
action or, or (ii) has reasonable cause to be dissatisfied with the
performance of any of the personnel then the Consultant shall, at the
Client’s written request specifying the grounds therefore, promptly provide
as a replacement a person with equivalent or better qualifications
(3) Such withdrawal or replacement shall not be a cause for suspension of the
Contract.
(4) Any costs or expenses resulting from any withdrawal or replacement of

persons pursuant to paragraph a. and b. of this Article shall be borne by
the Consultant, and the payment to be made by the Client for any of the
personnel provided as a replacement shall not exceed the payment which
would have been made in respect of the personnel replaced.
Page | 463

Article 16: Workmen's Compensation and other Insurance
(1) The Consultant shall take out and maintain:

(a) All applicable workmen's compensation and liability insurance with
respect to its agents, servants and employees performing work or
services in connection with this Contract;
(b) Liability insurance in an appropriate amount for death, bodily injury or

damage to property arising from the operation of any vehicles, boats or
airplanes or other equipment owned or leased by the Consultant or its
agents, servants, employees, subcontractors and independent
contractors performing work or services in connection with this
Contract;
(c) Comprehensive general liability insurance in an appropriate amount for

all claims for death,
(d) bodily injury or damage to property, including, but not limited to,
products liability, arising from acts performed or omissions committed
by the Consultant, its agents, servants, employees, subcontractors and
independent contractors in connection with this Contract; and
(e) Such other insurance as may be agreed upon between the Client and
the Consultant.
(2) The Consultant shall ensure that all policies of insurance referred to above,
other than for workmen's compensation, shall name the Client and, where
appropriate, subcontractors and independent contractors concerned, as
additional insured parties.
(3) Upon request by the Client, the Consultant shall provide evidence, to the
reasonable satisfaction of the Client, of the insurance referred to above and
shall give the Client reasonable advance notice of any proposed changes
related to such insurance.
(4) The Client undertakes no responsibility to provide life, health, accident,

travel or any other insurance coverage which may be necessary or desirable
Page | 464

in respect of any persons performing services in connection with this

Contract.
Article 17: Source of Instructions
The Consultant, its agents, servants, employees, subcontractors and

independent contractors, shall neither seek nor accept instructions from any
authority external to the Client in connection with the performance of their
obligations under this Contract, and shall refrain from any action which may
adversely affect the Client. The Consultant shall take all reasonable measures to
ensure that its agents, servants, employees, subcontractors and independent
contractors comply with the provisions of this Article.
Article 18: Officials not to Benefit
The Consultant warrants that no Government official or employee has been or

will be, directly or indirectly, offered or given any inducement or benefit in
connection with this Contract or the award thereof.
Article 19: Subcontracting
The Consultant shall engage no subcontractor to perform any work or services

in connection with this Contract unless the Consultant shall have notified the
Client of the identity of the proposed subcontractor and the Client shall have
notified the Consultant of its approval of the engagement of the subcontractor.
The approval by the Client of the engagement of a subcontractor shall not relieve
the Consultant of any of its obligations under this Contract or from its
responsibility for the work or services performed by the subcontractor. The terms
of any subcontract shall be subject to and in conformity with the provisions of
this Contract.
Article: 20: Fraud and Corruption
If the Procuring Entity determines that the Consultant, his employees, agents,
subcontractors, or any other person acting in the name or on the account of the
consultant, has engaged in corrupt, fraudulent, collusive, coercive or obstructive
practices in competing for or in executing the contract, then the procuring entity
may after giving 15 days’ notice to the consultant terminate the Contract.
Page | 465

Article 21: Assignment
The Consultant shall not assign, transfer, pledge or make other disposition of
this Contract or any part thereof or of any of the Consultant's rights, claims or
obligations under this Contract except after obtaining the prior written approval
of the Client.
Article 22: Confidential Nature of Documents
(1) All maps, drawings, photographs, mosaics, plans, manuscripts, records,

reports, recommendations, estimates, documents and all other data
(referred to hereinafter in this Article as "documents") compiled by or
received by the Consultant or its agents, servants, employees,
subcontractors or independent contractors in connection with this
Contract shall be the property of the Client, shall be treated as confidential
and shall be delivered only to duly authorized Client’s officials on
completion of work or services under this Contract or termination of the
Contract, or as may otherwise be required by the Client.
(2) In no event shall the contents of such documents or any information

known or made known to the Consultant by reason of its association with
the Client be made known by the Consultant or its agents, servants,
employees, subcontractors or independent contractors to any
unauthorized person without written approval of the Client.
(3) Subject to the provisions of this Article, the Consultant may retain a copy
of documents produced by the Consultant.
(4) The Consultant shall take all reasonable measures to ensure that its
agents, servants, employees, subcontractors and independent contractors
comply with the provisions of this Article.
(5) The obligations in this Article do not lapse upon termination of this
Contract.
Page | 466

Article 23: Use of Name, Emblem or Official Seal of the Client
The Consultant, its agents, servants, employees, subcontractors and

independent contractors shall not advertise or otherwise make public the fact
that it is performing, or has performed, work or services for the Client or use the
name, emblem or official seal of the Client or any abbreviation of the name of the
Client in connection with its business for advertising purposes or for any other
purposes. The Consultant shall take all reasonable measures to ensure
compliance with this provision by its agents, servants, employees,
subcontractors, and independent contractors. This obligation does not lapse
upon termination of the Contract.
Article 24: Copyright, Patents and Other Proprietary Rights
(1) All intellectual property and other proprietary rights, including but not
limited to patents, copyrights and trademarks with regard to maps,
drawings, photographs, mosaics, plans, manuscripts, records, reports,
recommendations, estimates, documents and other materials, (referred to
hereinafter in this Article as "materials") except pre-existing materials,
publicly or privately owned, collected or prepared in consequence of or in
the course of the performance of this Contract, shall become the sole
property of Client, which shall have the sole right to publish the same in
whole or in part and to adapt and use them as may seem desirable, and
to authorize all translations and extensive quotations there from. If the
Consultant incorporates in its materials any previously published or
unpublished materials, it shall obtain permission for the publication, use
and adaptation in any language free of cost to the Client from the persons
in whom any existing copyrights therein may be vested and produce
evidence to the Client of such permission.
(2) The Consultant agrees that it will forthwith disclose and assign to the
Client all discoveries, processes, or inventions, made or conceived in
whole or in part by it alone or in conjunction with others relating to or
arising out of this Contract, and the said discoveries, processes, or
inventions, shall become and remain the property of the Client, whether
or not patent applications are filed thereon.
Page | 467

(3) Upon request by the Client and at its expense, the Consultant shall take
all necessary steps, execute all necessary documents and generally assist
the Client in securing such proprietary rights and transferring them to
the Client in compliance with the requirements of the applicable law.
(4) The obligations in this Article do not lapse upon termination of the
Contract.
Article 25: Equipment and Materials Furnished by the Client
Equipment and materials made available to the Consultant by the Client, or

purchased by the Consultant with funds provided by the Client, shall be the
property of the Client and shall be marked accordingly. Upon termination or
expiration of this Contract, the Consultant shall make available to the Client an
inventory of such equipment and materials and shall dispose of such equipment
and materials in accordance with the Client’s instructions.
Article 26 - Amendments
No modification of or change in this Contract, waiver of any of its provisions or

additional contractual provisions shall be valid or enforceable unless previously
approved in writing by the parties to this Contract or their duly authorized
representatives in the form of an amendment to this Contract duly signed by the
parties hereto.
Article 27: Liability
The Consultant shall be liable to fully indemnify, defend and hold harmless the
Client for and against all and any losses or damages which the Client may suffer
or incur (whether directly or indirectly) as a result of the breach of this Contract
by the Consultant or as a result of damages caused by the Consultant’s
employees.
Article 28: Limitation of Liability
Neither the Consultant, nor any of its officer, director, principal, employee, its
agents, servants, employees, subcontractors or independent contractors shall be
Page | 468

liable to the Client for any loss incurred by the Client in connection with the
matter to which this Contract relates, except a loss resulting from the willful
misconduct or gross negligence on the part the Consultant. Under no
circumstances shall the Consultant be liable to Client for any special, incidental,
indirect, punitive or consequential loss or damage of any nature except as
provided for under this Contract.
Article 29: Approval and Consents
An approval or consent by a party under this Contract shall only be valid if in

writing but shall not relieve the other party from responsibility for complying
with the requirements of this Contract nor shall it be construed as a waiver of
any rights under this Contract except as and to the extent otherwise expressly
provided in such approval or consent, or elsewhere in this Contract.
Article 30: Force Majeure
(1) If either party is rendered unable, wholly or in part, by Force Majeure (as
hereinafter defined) or any other cause of any kind not reasonably within
its control, to perform or comply with any obligation or condition of this
Contract, upon giving written notice to the other party within five (5) days
of the occurrence of the Force Majeure event, such obligation or condition
and liability therefore shall be suspended during the continuance of the
inability so caused; however, such period shall not exceed sixty (60) days
from the giving of written notice. Upon expiration of the sixty (60) days
from the giving of written notice, if the event of Force Majeure has not been
overcome, this Contract may be terminated at the option of either party.
commercially reasonable efforts to overcome the event of Force Majeure.
Strikes or labor trouble shall be deemed beyond the reasonable control of
the party claiming Force Majeure, and such party shall under no
circumstances be required to make any concessions or concede any
demands to the party or parties causing the strike or labor trouble.
Page | 469

(2) Any period within which a Party shall, pursuant to this Contract, complete
any action or task, shall be extended for a period equal to the time during
which such Party was unable to perform such action as a result of Force
Majeure.
Article 31: Entire Agreement and Severability
This Contract constitutes the entire agreement of the parties regarding the
subject matter hereof, and supersedes all prior agreements and understandings,
both written and oral, between the parties with respect to the subject matter
hereof.
Article 32 - Good Faith
The Parties undertake to act in good faith with respect to each other's rights
under this Contract and to adopt all reasonable measures to ensure the
realization of the objectives of this Contract.
Article 33: Governing Law, Dispute resolution and Language
(1) Governing Law

(a) “This Contract shall be governed by and construed in accordance with
the laws of the Republic of Rwanda.
(b) The Parties have further agreed that if the provisions of this Contract
are inconsistent with the effective laws of the Republic of Rwanda, the
inconsistent provision shall be amended and brought in conformity
with the law.
(c) Invalidity of one or more provision or articles of this Contract shall not
invalidate any other provisions or the Contract as a whole. If a provision
is found to be invalid or contravenes national legislation, the parties
will agree on amendment of the provision and in the case of
disagreement, the matter shall be referred to the Minister of
Justice/Attorney General for legal advice. In case the matter is not
resolved, it shall be submitted to the competent courts of Rwanda for
an equitable solution”.
Page | 470

(2) Dispute Resolution
(a) Amicable solution:
Any dispute or differences between the parties arising out of this

Contract shall in the first instance be settled amicably by submitting
such a dispute to a panel of senior representatives of the Parties to
consider and resolve the Dispute. Each senior representative serving on
such panel shall have full authority to settle the Dispute.
(b) Litigation:
“If the parties cannot settle the dispute amicably, the matter shall be
referred to national courts of competent jurisdiction.”
Or
(c) Arbitration:
If the dispute cannot be amicably settled by the parties, the matter shall
be referred to and finally resolved by arbitration in accordance with the
Rules of Kigali International Arbitration Center (KIAC).
The number of arbitrators to the proceedings shall be one (or three

depending on the size of the contract) appointed in accordance with the
rules.
The seat of arbitration shall be in Rwanda.
The language of arbitration shall be…… (choose the language).
The award rendered by the arbitrator(s) shall be final and binding and
shall be enforced by any Court of competent jurisdiction. The party
seeking enforcement shall be entitled to an award of all costs incurred
is ordered.
Page | 471

(3) Language
All notices, correspondence, documentation or communications of
whatsoever nature, reports submitted or prepared under or in connection
with this Contract shall be in the English language.
Article 34: Waiver
No waiver of any provision or of any breach of this Contract shall constitute a

waiver of any other provisions or any other or further breach, and no such waiver
shall be effective unless made in writing and signed by an authorized
representative of the party to be charged with such a waiver. Nor shall a one-
time waiver of a single provision constitute a permanent waiver of that party’s
rights under said provision.
Article 35: Notice
Each party chooses as its address for all purposes under this Contract whether
for serving any court process or documents, giving any notice, or making any
other communications of whatsoever nature and for any other purpose arising
from this Contract as follows:
“Name of Procuring Entity”:

……………………..……….
………………….…………..
………………….…………..
The Client
……………………..……….
………………….…………..
………………….…………..
Any notice required or permitted under this Contract shall be valid and effective
only if in writing, and shall be deemed to have been received on the date of its
reception.
Any party may by notice to the other party, change its chosen address to another
physical address and such change shall take effect on the eighth (8) day after
the date of receipt by the party who last receives the notice.
Page | 472

Article 36: Counterparts
This Contract may be executed in two counterparts, each of which shall be

deemed an original, and both of which together shall constitute one and the same
instrument.
Article 37: Entry into Force
This Contract comes into force on the date of its signature by both parties.
For and on behalf of “Name of Procuring Entity”
Represented by: …………………………………
Name: …………………………………
Title: …………………………………
For and on behalf of the Consultant
Represented by: …………………………………
Name: …………………………………
Title: …………………………………
Date: __________________
Page | 473

APPENDICES
Appendix 1: Identification of the member of evaluation

team
Signature
NAME POST Employer/Institution Function
Thank you for agreeing to be part of the evaluation team for the tender related
to « …………………………………………………………………..…. ».
Page | 474

Appendix 2: Declaration of absence of Conflict of

Interest Form
1. Do you have any industrial, business or family relationship with one or
more of the Entities competing for the aforementioned service and whom you
are the evaluator of their bid/proposal?
□ YES □ NO
2. If Yes, Explain the nature of this relationship

□ PROFESSIONAL □ FAMILY
__________________________________________________________________________
________________________________________________________________________
I declare on my honour that the aforementioned information is sincere,

correct and true to the best of my knowledge.
Signature: ………………………………………………
Date: …………………………………………………..
Page | 475

VOLUME 1:
STANDARD OPERATION
PROCEDURE FRAMEWORK
FOR HUMAN RESOURCE
MANAGEMENT
k2019
Page | 476

TABLE OF CONTENTS
VOLUME 4: STANDARD OPERATION PROCEDURE FRAMEWORK FOR HUMAN

RESOURCE MANAGEMENT ................................................................................. 476
DEFINITION OF TERMS ....................................................................................... 481
FOREWORD ...............................................................................................................
............................................................................................................................. 487
PART ONE: COMPANY GOVERNANCE AND MANAGEMENT STRUCTURE ............ 488
1.1 Policy Objectives and Purpose ........................................................................... 488
1.3 Key Documents Involved.................................................................................... 488
COMMUNICATION WITHIN AND OUTSIDE THE COMPANY .................................. 492
1.5 Correspondence with the Board of Directors ...................................................... 492
1.6 Communicating the Decisions of the Board ....................................................... 492
1.7 Guidelines on All Correspondences .................................................................... 492
1.8 Electronic Communication ................................................................................ 492
1.9 Access to Restricted Information ........................................................................ 492
1.10 Research on the Premises of the Company ........................................................ 493
1.11 Property rights and intellectual property rights.................................................. 493
1.12 Retention of Records .......................................................................................... 493
1.13 Use of Company Seals and Stamps .................................................................... 493
PART TWO: RECRUITMENT, SELECTION, AND APPOINTMENT............................ 494
2.5 Approved Staff Structure ................................................................................... 496
2.6 Types of Employment Appointment ................................................................... 497
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2.7 Insurance Requirement ..................................................................................... 500

RECRUITMENT AND APPOINTMENT PROCEDURE ................................................... 501
2.8 Preparation of Human Resource Plans ............................................................... 501
2.9 Vacancy Declaration .......................................................................................... 501
2.10 Job Advertisements ........................................................................................... 501
2.11 Application Forms ............................................................................................. 502
2.12 Shortlisting ........................................................................................................ 502
2.13 Selection ............................................................................................................ 502
2.14 Offer of Appointment ......................................................................................... 502
2.15 Appointment Documents ................................................................................... 503
2.16 Probation ........................................................................................................... 503
2.17 Non Discrimination............................................................................................ 504
2.18 Persons with Disabilities .................................................................................... 504
2.19 Appointment of Foreigners ................................................................................. 504
2.20 Vertical Promotions ........................................................................................... 505
2.21 Horizontal promotion ......................................................................................... 505
2.22 Dates of Promotion ............................................................................................ 505
TRANSFERS ......................................................................................................... 505
2.23 Transfer from One Workstation to Another ........................................................ 505
2.24 Re-designation ................................................................................................... 506
2.25 Control Mechanism ........................................................................................... 506
PART THREE: EMPLOYMENT TERMS AND CONDITIONS ..................................... 508
3.1 Policy objectives and purpose ............................................................................ 508
3.5 Job Grades and Salary Structure ...................................................................... 508
3.6 Monthly Salary .................................................................................................. 509
3.7 Thirteenth Month Salary.................................................................................... 509
3.8 Overtime ............................................................................................................ 509
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3.9 Calculation and Suspension of Salary ............................................................... 509

3.10 Annual Incremental Dates ................................................................................. 509
3.11 Salary in Advance .............................................................................................. 510
3.12 Allowances......................................................................................................... 510
BENEFITS ............................................................................................................ 514
3.14 Allocation of Company Houses .......................................................................... 514
3.15 Company Car Loan and Mortgage Scheme ......................................................... 514
3.16 Medical Scheme ................................................................................................. 514
3.17 Medical Assistance ............................................................................................ 514
3.18 Travelling while on Duty .................................................................................... 515
3.19 Travelling by Company Vehicles ........................................................................ 515
3.20 Use of Personal Vehicles while on Duty ............................................................. 515
3.21 Company Transport on Bereavement ................................................................. 515
3.22 Performance Bonus ........................................................................................... 515
3.23 Fidelity Bonus ................................................................................................... 516
3.24 Recognition Award ............................................................................................. 516
3.25 Transition Mechanism ....................................................................................... 516
3.26 Control Mechanism....................................................................................... 517
PART FOUR: TERMINATION OF EMPLOYMENT.................................................... 518
4.5 Resignation........................................................................................................ 519
4.6 Termination of Employment .............................................................................. 519
PROCEDURE FOR TERMINATION OF SERVICE ................................................... 520
4.7 Termination of Appointment During Leave or Suspension ................................. 520
4.8 Compulsory Retirement Age .............................................................................. 520
4.9 Early Retirement ............................................................................................... 520
4.10 Retirement on Medical Grounds ........................................................................ 521
Page | 479

4.11 Dismissal........................................................................................................... 521

4.12 Death ................................................................................................................ 521
4.13 Termination for Other Reasons .......................................................................... 521
4.14 Rwanda Social Security Board (RSSB) Benefits .................................................. 522
4.15 Certificate of Employment.................................................................................. 523
4.16 Testimonials and Letters of Commendation ....................................................... 523
4.17 Key Control Mechanisms/Processes .................................................................. 523
Page | 480

DEFINITION OF TERMS
(1) Allow Means to accept an appeal or review.
(2) Appeal Means to apply for re-examination of a decision or process.
(3) Appellant Means an individual/organization appealing against a

decision or process that is thought to be incorrect or unfair.
(4) Applicant Means an individual requesting the Board to review its

decision.
(5) Application for Means to request that a decision be reconsidered due to new
Review facts, evidence or a mistake that has been noted.
(6) Authority Means institutionalized and legal power inherent in a

particular job, function, or position that is meant to enable
its holder to successfully carry out his or her responsibility.
(7) Basic Salary An employee’s salary excluding allowances.
(8) Bereavement The state of loss of a loved one who is a member of the
nucleus family.
(9) Board of This refers to the body responsible for corporate governance
Directors of a Government Company appointed by the Minister in
charge of the company or appointed in any other way
prescribed by the Law or by various Policies creating the
company.
(10) Bondee An employee who is serving a training bond obligation
(11) Head of the Refers to the most senior employee in a Government

Company Company who is responsible to the Board of Directors of the
company and who is the authorized and Head of the
Company in respect of exercise of executive powers of the
company. The Head of the Company may act as the
Page | 481

Secretary to the Board in the absence of a Company

Secretary
(12) Child The biological offspring or legally adopted child. For purpose
of records, the names of the children must be declared at the
time of birth or adoption if it occurs during employment in
the service of the Government Company. Copies of birth
certificates or legal adoption papers will be required in either
case.
(13) Company An employee appointed by the Board of Directors to act as

Secretary the Secretary to the Board
(14) Constitution Rwanda's Constitution of 2003 as amended to-date
(15) Conviction Means being found guilty as charged.
(16) Criminal offence Means a misconduct that breaches governing laws governing
crime.
(17) Delegated The powers of the Board that have been assigned to any
Authority one or more of its members, staff, body or Authority to
exercise on its behalf.
(18) Delegated powers Means those functions for which the Board of Directors of
the Government Company is responsible but have been
assigned to Head of the Company.
(19) Disallow Means to reject an appeal or application for review.
(20) Disciplinary Means due process of justice and any lawful punishment.
Control
(21) Discipline Means conforming to service rules and regulations which

prescribe expected conduct and behaviour of individual
employees
(22) Gross Salary An employee’ monthly salary including allowances
Page | 482

(23) Head of the The top management employee appointed to take full
Company responsibility on the finances, assets and liabilities of the
respective Government Company.
(24) Head of A director or manager in charge of a unit responsible for

Department specialised operations in the Government Company
(25) Human Resource The management committee responsible for decisions

Advisory affecting staff. It is appointed by the Head of Company on
Committee from among the heads of departments.
(26) Immediate Includes the nucleus family, employee’s parents, and

Family siblings. All should be declared at the time of employment or
as relationship is officially declared.
(27) Interdiction Means barring an employee from performing official duties

for certain reasons when the employee is suspected to have
transgressed against regulations or procedures.
(28) Job Rotation A job design technique in which employees are moved
between two or more jobs in a planned manner with the
objective of exposing them to different experiences and wider
variety of skills to enhance job satisfaction and to cross-train
them.
(29) Leave Year Refers to the period commencing 1st January to 31st
December for each year.
(30) Major Offence Means a serious crime which upon conviction the
imprisonment is over six months (6)
(31) Memorandum of Means any agreement setting out the rules of engagement
Understanding between two or more willing entities.
(32) Minister A government employee responsible for policy direction,

coordination and overall supervision of a government
Ministry
(33) Minor offence Means any crime which upon conviction the imprisonment is
six months or below.
Page | 483

(34) Next-of-Kin The name of the person provided by the employee for the
purpose of contact during emergency and in case of death.
(35) Net Salary An employee’s take-home pay after all deductions from the
gross salary.
(36) Nucleus Family Refers to the employee, spouse and children.
(37) Offence Means a crime for which conviction may lead to

imprisonment as a penalty
(38) Officer Means an employee of a government company.
(39) Penalty Means a punishment imposed for a violation of law or rule.
(40) Permanent This is the Administrative head of a Ministry

Secretary
(41) Pro-rata Is the computation of benefits for the period served in

relation to the full-term entitlement
(42) Reimbursable Refers to those allowances where an employee gets

Allowances reimbursement on the expenditure incurred in the course of
duty.
(43) Relevant Courses Courses covering; core competencies, knowledge, skills and
attitudes including courses on the ability to assimilate
technology to enable employees create and seize
opportunities for social advancement, economic growth and
individual fulfilment.
(44) Remunerative Refers to those allowances paid to an employee every month,

Allowance in addition to salary as a form of compensation for additional
responsibilities.
(45) Salary A form of periodic payment from an employer to an employee

which may be specified in an employment contract.
(46) Show cause letter Means a letter requiring an employee to explain why
disciplinary action should not be taken against him or her
on account of misconduct.
Page | 484

(47) Spouse Refers to the legal marriage partner of an employee as

specified under the laws of Rwanda
(48) Staff The approved number of positions a Government Company

Establishment is allowed at any given time.
(49) Surety/guarantor Refers to a person who formally accepts responsibility to

guarantee and/or redeem the bond obligation of a bondee
who defaults or appears in a Court of Law in respect of the
same.
(50) Suspension Barring an employee from performing the functions of his

office on account of gross misconduct or conviction of a
serious criminal offence pending finalization of a case.
(51) Tour of Duty Refers to the period of employment contract in the company
service awarded to employees from the mainstream civil
service performing specialized or assigned duties.
(52) Training Bond Refers to formal agreement between the Government

Company and their employees who are selected for approved
training that oblige them to serve in the company for a
specific period of time on completion of training.
(53) Vesting Period Refers to the period after which ownership of benefits built
up in a contributory pension scheme is transferred to the
member including the employer contributions and returns
thereof.
(54) Wages It is payment for piece of work where each job hour or other
unit is paid separately rather than on a periodic basis.
(55) Work Station The entire area accessed by a worker when performing his
job tasks or work cycle
This is a Comprehensive Standard Operating Framework (CSOF) for Human

Resource Management for the Government of Rwanda controlled companies.
The manual is formulated with due regard to gender; thus where reference is
made either to ‘he’ or ‘she’ only, it shall be construed to mean and include
Page | 485

reference to both ‘he’ and ‘she’ and where reference is made to spouse, it shall
be construed to mean and include reference to both ‘Husband’ and ‘wife’
where applicable and vice versa.
Page | 486

INTRODUCTION
This Manual is designed to acquaint the employees of the Rwanda Government-
controlled Companies with the policies and procedures governing human
resource management and the working conditions, benefits, and policies
affecting their employment in these companies.
The information contained in this Manual applies to all employees of the

Government-controlled Companies. Abiding by the policies and procedures
described in this Manual is a condition of continued employment with Rwanda
Government-controlled Companies. The manual is a summary of company
policies and procedures which are presented here only for information and as a
guide. The employee will be responsible for reading, understanding, and
complying with the provisions of this Manual.
The Manual incorporates provisions of the Constitution, Organic Law governing

Public Institutions, Labour Laws, Regulations and policies that govern various
aspects of industrial relations in the labour industry.
It is important to note that these policies are just some of the rules and
regulations governing government companies. They should therefore, be read
alongside other relevant laws, where applicable, for better interpretation and
application of the Manual.
Where clarification on any of these regulations is required, it should be sought

from the Head of Human Resource function who may consult with the Head of
the Company or the Board of Directors.
It should be noted that it is the intention of government that all government

companies embrace the use of technology and put in place plans to automate all
human resource processes within the next five years starting with Leave and
Performance Management processes.
Page | 487

PART ONE: COMPANY GOVERNANCE AND

MANAGEMENT STRUCTURE
1.1 Policy Objectives and Purpose

The purpose of this policy is to delineate roles and responsibilities of different levels
of authority and to outline an effective communication channel.

It is the intention of the Government that government companies’ governance
structure is known, roles and responsibilities of all individuals and bodies charged
with decision-making authority are also clear. In order to enhance clarity of roles it
is further recognized that communication flow to or from staff must relevant, easy to
access, accurate, and appropriate in both content and quantity.

(1) The Constitution of The Republic of Rwanda of 2003 Revised in 2015;
(2) Organic Law No.001/2016 of 20/04/2016 establishing general provisions governing
Public Institutions;
(3) Organic Law N° 12/2013/OL of 12/09/2013 on State Finances and Property,
(4) Law N° 13/2009 of 27/05/2009 Regulating Labour in Rwanda;
(5) Law N° 05/2015 of 30/03/2015 governing the organization of Pension Schemes;
(6) Law N°17/2018 of 13/04/2018 Governing Companies and other relevant policies that
remain applicable from time to time.

(1) Minister for Finance and Economic Planning
Responsible for initiating and reviewing of procedures governing the

operations of the government companies including the human resource
operating framework. It is also responsible for recommending members of
the board for appointment by the cabinet.
(2) The Role of the Line Ministry
Page | 488

Together with the Ministry of Finance and Economic Planning, line ministry
is responsible for recommendation for appointment of the members of the
Board of Directors subject to the provisions of Article 86 of the Constitution.
(3) The Board of Directors
Every Government Controlled Company must have a Board of Directors. The

Board of Directors is the ultimate decision maker at policy level of the
company, as stated in Art. 10 of Organic Law No.001/2016 of 20/04/2016
establishing general provisions governing public institutions. The Board must
be consulted for any major decision made by the management of the
company. (Organic Law No.001/2016 of 20/04/2016 establishing general
provisions governing public institutions, Art. 6, 9, and 10).
In general the role of the Board shall include;
(a) Setting strategic goals.
(b) Securing and continually monitoring organizational performance;
(c) Ensuring compliance with statutory requirements.
(d) Ensuring human resource management issues are managed in a manner

to inspire confidence in existing employees as to attract top talents.
(e) Managing risks.
(f) Focusing on guidance and strategic oversight of the company operations;
(g) Approving annual targets for the Performance Contract before

finalization for signature.
(h) Guiding and directing management on implementation of strategy and

performance contract through periodic reviews and evaluation.
(i) The Chairperson of the Board of Directors will sign performance contract
with the line ministry on behalf of the company.
The boards may delegate some of their roles to management to ensure speedy
decision making. Among the roles that may be delegated are decisions required
to be taken in regard to matters affecting junior to medium level employees. The
Board will decide the level of jobs to be delegated.
Page | 489

(4) The Human Resource Advisory Committee

(a) The Head of the Company may constitute a Human Resource Advisory
Committee (HRAC) from among the heads of department. The HRAC, where
constituted, will handle human resource management issues and make
recommendations to the Board where serious decisions affecting staff are
required.
(b) The HRAC shall be a management committee and shall make decisions on
discipline, transfers, training, contested performance appraisal decisions
forwarded from departments and any other staff decision that may require
formal discussion. The committee will make recommendations to the Board on
issues that require Board level decisions such as promotions, suspensions,
dismissal, etc.
(c) The Chairperson of the committee shall be the deputy leader of the company or
any other senior officer appointed by the head of the company.
(5) Head of the Company
(a) The Head of Company's role includes being the overall responsible person for all
day-to-day management decisions and for implementing the Company's Human
Resources plans. The Head of Company acts as a direct liaison person between
the Board, Management and the staff.
(b) The Head of Company may act as the Secretary to the Board in the absence of
a Company Secretary.
(6) The Head of Human Resource Management
(a) Responsible for strategically aligning business objectives with

management of the human resource.
(b) Act as the internal resource person for the company and facilitate
preparation of policies and practices designed to improve the ability of
the company to attract and retain competent staff. As part of strategies
to retain productive staff the department must devise strategies of
maintaining a high level of employee motivation.
(c) Ensure that the company has a Comprehensive Standard Operational

Procedure Manual and the manual is aligned to this comprehensive
framework. Further, that the procedures and regulations prepared from
it relating to human resource management are implemented.
Page | 490

(7) Heads of Department (HOD)
(a) Responsible for all day-to-day management decisions made in a

department as the department’s contribution to the company’s
objectives.
(b) Ensuring that all human resource issues affecting staff in his
department are handled as soon as they occur.
(c) Ensuring that job descriptions exist for all new and existing positions in
the department. The job descriptions should clearly outline the purpose
of the job, principal duties, critical competencies, education and
qualifications required, and the reporting relationships.
(8) The Role of Staff
Staff are responsible for ensuring that their actions are carried out in
accordance with human resource policies. They are personally held
responsible for their actions should these actions fall short of the
requirements of the policies laid out in this manual.
Page | 491

COMMUNICATION WITHIN AND OUTSIDE THE

COMPANY
1.5 Correspondence with the Board of Directors

(1) All correspondences with the Board should be addressed to the Secretary of
(2) Complaints lodged against the Head of Company, shall be addressed to the
Chairman of the Board.
1.6 Communicating the Decisions of the Board

The Secretary to the Board shall communicate all decisions of the Board.
1.7 Guidelines on All Correspondences

(1) It is of great importance that communication within and outside of the company is
given due attention and dispensed expeditiously.
(2) Communication within the company should be precise giving the background to the
issue and stating clearly what action is required of the recipient.
(3) It is good practice to confine each letter to one subject for the purpose of placing in
different files.
(4) The responsibility of ensuring that correspondence reaches its destination rests with
the sender.
(5) The Head of Company will sign any information the company wishes to communicate
to the public through the media.
1.8 Electronic Communication

Government-controlled Companies are encouraged to use electronic means of
communication such as use of e-mail and telephones in order to save time and
resources. Social media may be used for follow up or reminders.
1.9 Access to Restricted Information

(1) The passwords are used as a means of protecting confidential electronic information.
Staff who hold passwords to such confidential information should not share the
Page | 492

passwords otherwise they will be held responsible in the event of unauthorized

access.
(2) Mechanisms to prevent hackers should be established by the IT department or unit

as the case may be to safeguard against information loss and exposure of company
secrets.
1.10 Research on the Premises of the Company

An employee or any member of the public who would like to carry out research in
the premises or involving staff of the company will be required to seek approval of
the Head of Company prior to commencement of the research.
1.11 Property rights and intellectual property rights

Consultants and employees who write articles, reports, publications or give talks and
lectures in their capacities as employees of the company shall not own copyright of
these articles, reports, publications, talks or lectures. The copyrights will belong to
the Company and such consultants or employees are liable for any misuse of such
information to the detriment of the company.
1.12 Retention of Records

Human Resource records shall be retained in accordance with the guidelines issued
by the Rwanda Archives and Library Services Authority (RALSA).
1.13 Use of Company Seals and Stamps

Official seals and stamps belonging to the company will be kept under lock and key
and only authorized employee will be allowed to handle them.
Page | 493

PART TWO: RECRUITMENT, SELECTION, AND

APPOINTMENT

To provide a framework and core principles for recruitment, selection, and mobility
in line with relevant legislation and equal opportunities best practice, to ensure that
the most suitable person is appointed and merit based selection is accomplished.

The Government-controlled Companies shall be committed to ensuring that the
recruitment and selection for all positions is fair, open, and transparent and complies
with all relevant legislations. Applicants will not be discriminated against based on,
background, culture, religion, gender or economic circumstances. Positions will be
offered based on competency, qualification and enthusiasm for the position.
To ensure that this happens and that new employees have “competencies at the gate”
strategies must be put in place to bring in new employees on merit. All recruitments
shall be conducted in an open and transparent manner without undue influence from
any stakeholders, shareholders, members of the Board or any member of staff. Before
recruitment, it must be confirmed that a position within the approved organization
structure is vacant. A job description for the position must be prepared and a
confirmation of a budget for the position given.
Where a company employs the use of recruitment software (e-recruitment) then the
company will modify these regulations to suit the use of e-recruitment provided that
the cardinal principle of bring in employees on merit must be adhered to.

(1) Organic Law No.001/2016 of 20/04/2016 Establishing general provisions
governing Public Institutions, and
(2) Organic Law N° 13/2009
Page | 494


(1) Line Ministry
The Minister in charge of the Line Ministry will be responsible for authorizing the
initial organization structure following approval by the Board. The Board may
thereafter effect minor reviews of the structure and the line ministry shall be informed
on the changes made.

Responsible for recruitment, shortlisting, and selection for all positions in the
company. The Board may delegate recruitment and selection authority to the
Head of the Company for middle management and junior positions. When this
happens the delegation shall be in writing and shall indicate the grades below
which management may recruit and select. The procedure for recruitment for
delegated positions will remain the same as that for other jobs.
The Board must approve all positions for recruitment. Effectively this is done
during approval of the budget.
(3) The Head of the Company
Will be responsible for recruitment, shortlisting, and selection for all delegated
positions in the company. The Head of Company will sign all the appointment
letters for all employees recruited by the company. The appointment letter for
the
(4) Head of Human Resource Management
(a) Responsible for refinement of all job descriptions and preparation of job
advertisements.
(b) He/she will assist in the shortlisting and selection candidates for the
management and Board selection committees.
(5) Head of Department
(a) Responsible for reporting vacancies and drafting job descriptions.
(b) Providing technical assistance in the shortlisting and selection of

candidates for the management and board selection committees.
Page | 495

(6) Head of Internal Audit
Responsible for audit of recruitment procedures and systems.
2.5 Approved Staff Structure

(1) Each government company shall have an approved number of employees referred to
as an “Approved Staff Structure” supported by an organization structure. The overall
Staff Establishment (approved number of positions a Government Company is allowed
at any given time. will be prepared by management and approved by the Board of
Directors.
(2) The Staff Establishment shall have details of job grades in each department of the
company, the number of positions in each job grade, the number of positions filled
and the number of vacancies available. Sample Staff Establishment template is
shown in Appendix 1.
(3) The Staff Structure shall be in line with Article 5o of Law N° 22/2002 Of 09/07/2002
on General Statutes for Rwanda Public Service and be valid for a period of five (5)
years or any other such period as may be approved by respective boards.
(4) The power to vary the number of employees in the Company rests with the Board
with the line ministry being notified of such changes.
(5) During the annual budget each department will review their Approved Staff
Structure and propose, with justifications, any changes they may wish to effect
regarding recruitment, promotions, or trainings. The human resource budget for
each company will be based on the Approved Staff Structure.
(6) For vacancies to be filled an appropriate budgetary provision will be made by the
department.
(7) Departmental proposals on vacancies to fill as well budgetary provision will be

collated by the department in charge of human resource management and presented
to the Board for approval.
(8) Power to make appointments in each government company rests with the Board.
Notwithstanding this provision, the Head of Company shall exercise delegated
powers to make appointment on behalf of the Board, for certain posts as may be
allowed by the Board. Such delegated powers shall be in writing and signed by the
Chairperson of the Board and the Board must be notified of such appointments.
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(9) On recommendation of the Head of Company the Board may convert contract terms
into permanent terms provided that the employee for whom terms of service is being
considered for change is below the age of 50.
(10) For conversion into permanent or contract terms of service staff under all the other
types of employment contracts shall be subjected to an open internal or external
competitive recruitment process.
(11) The Board may declare that management level jobs above a certain grade be on
contract terms of service.
2.6 Types of Employment Appointment

There shall be nine types of employment appointments under a government
controlled company. These include; Permanent employees; Contract employees;
Temporary employees; Interns; Attachment employees; Part-time employees; Casual
workers; Volunteers; and Consultants.
(1) Permanent Employees
These are full time employees who are generally guided by regular work
schedules and who are on open ended contracts spelling permanent terms
and conditions of service to the company. This type of contract runs until the
employee attains retirement age of sixty-five (65) or until such a time that the
employee disengages from the employment of the company through other
means as explained in this manual.
The Board may convert the terms of employment for an employee from
contract to permanent.
(2) Contract Employees
These are employees appointed for a specified period of time of one year or more
and who enjoy all the benefits of employment in the company for the duration of
their contract. The company may pay these employees a gratuity at the end of
the contract at rates set by respective Boards.
Contract appointments shall be limited to a period approved by the Board,

renewable subject to satisfactory performance and fulfilment of other terms of
the contract.
(3) Temporary Employees
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These are employees appointed for periods of between one month and one year
on agreed terms and conditions to undertake a specified piece of work. These
employees may also be engaged to relieve staff who have proceeded on maternity,
study leave or who are otherwise temporarily away from work. The staff may also
be employed on seasonal basis such as when there is a temporary demand for
certain services or when funding of a project is uncertain. Staff on temporary
appointments will not be entitled to benefits beyond that is stated in their letter
of appointment subject to minimum legislative requirements.
(4) Casual Employees
These are employees hired on a day to-day basis to do specified work and who
are paid for each hour or day worked in line with the labour laws.
(5) Interns
These are persons who after completing their training programmes, are attached
to a department of the company for the purpose of gaining experience or
technical skills for a specific period of time (Art. 39-41 of the Law n° 13/2009 of
27/05/2009 regulating Labour in Rwanda). Interns must apply for internship
positions and be issued with a letter indicating the terms and conditions of their
internship. The interns may be paid a stipend at rates determined by the Board
from time to time.
An intern shall be retained within the organization for a period not exceeding six
(6) months or as required by the professional body governing their respective
industries. Internship may be renewed once if in the opinion of the Head of
Company there is a good reason to do so.
An internship position will not be construed to be a position-in-waiting for a full-

time employment.
Interns are not substantive employees of the company and therefore cannot
enjoy other benefits given by the company.
The Board shall approve any transport honoraria paid to an intern.
Attachment employees
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These are persons who while still under training, are attached to a department
of the company for the purpose of completing their training programme and
gaining exposure to work environment for specific period of time.
Persons seeking attachment positions must apply and be issued with a letter
indicating the terms and conditions of their attachment. The attachment
employees may be paid a stipend at rates determined by the Board from time to
time.
An employee on attachment shall be retained within the organization for a period

not exceeding three (3) months. Attachment may be renewed once if in the
opinion of the Head of Company there is a good reason to do so.
An attachment position will not be construed to be a position-in-waiting for a

full-time employment.
Attachment staff are not substantive employees of the company and therefore
cannot enjoy other benefits given by the company.
The Board shall approve any transport honoraria paid to a student on

attachment.
Each Company Board will issue a comprehensive policy on internship and

attachment.
(7) Volunteers
These are persons who offer to work for the company without any remuneration.
The Company may give them an honorarium during or at the end of their service
to meet their transport expenses. A Volunteer shall express their interest to do
voluntary work in writing and the company will issue them with a letter allowing
them to do the same within its premises. The company will set out the terms and
conditions that will govern the volunteer worker within the organization.
A volunteer shall be retained within the organization for a period not exceeding
one (1) year on a continuous basis unless authorised by the Head of Company.
Voluntary work will not be construed to be a position-in-waiting for a full-time

employment.
The Board shall approve any transport honoraria paid to a volunteer staff.
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(8) Part-time Employees
A Government company may engage the services of an individual on a part-time

basis for jobs whose scope do not require work on fulltime basis. This shall be
particularly in areas that may require professional or technical skills that are
not available in-house. Such individuals shall be issued with a contract
stipulating nature and scope of the job, periods in which they are expected to
work, and the expected outputs.
In such cases the individuals shall be paid at rates determined by the Board. If
the engagement is for a longer period exceeding one (1) year, then payment on a
retainer basis may be considered.
(9) Professional Consultants
A Government company may engage a consultant due to his specialised skills

for specific assignment. The terms of hiring a consultant, tasks to be performed,
duration of the assignment and remuneration shall be stipulated in the terms of
reference (ToR) for the job.
Departments wishing to recruit the services of a consultant will submit, in writing,

the specification of the services required including scope of work to the Head of
Company. The Head of Company, will then cause the services of the consultant to be
procured in line with procurement procedures.
The consultancy contract may be extended if the specific task is not complete within
the stipulated time but shall not be renewed except in consultations with the Board.
2.7 Insurance Requirement

A company may require that an employee on internship, attachment, volunteer,
consultancy or part-time basis provide their own insurance against accidents at the
place of work or sign an indemnity declaration releasing the company from liability
in the event of accidental injury.
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RECRUITMENT AND APPOINTMENT PROCEDURE
2.8 Preparation of Human Resource Plans

The Human Resource Management department will coordinate the preparation of the
Human Resource Plans (HRP). The plans shall be based on the Approved Staff
Structure and projected needs of the departments and shall be prepared as part of
the HR Budget for each department.
2.9 Vacancy Declaration

The HOD shall report all vacant posts to the Head of Company and who will in turn
declare all the vacant positions to the Board for approval to employ. All vacancies will
only be declared against the Approved Staff Structure and annual Human Resource
Plan.
2.10 Job Advertisements

Once the Board’s approval is obtained the Head of Human Resource management
will refine the job descriptions and prepare advertisements.
(1) Internal Adverts
Priority shall be given to internal employees for job openings in the company.
The head of HR will post adverts in places where staff can see them such as
company websites and notice board. Such adverts shall remain open for at
least seven (7) days.
(2) External Adverts
In the event that there are no suitable internal candidates, the head of Human
Resource shall place adverts in a newspaper of national circulation and in the
company website. The adverts shall remain open for not less than fourteen (14)
calendar days from the date of advertisement.
The Board may also declare that jobs above a certain grade be competitive
sourced from the open market.
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2.11 Application Forms

Applicants may fill on-line application forms for companies that have on-line
application systems. For the other companies applicants will apply by completing an
application form as designed by respective companies. Sample Application for
Employment Form is attached as Appendix 2.
2.12 Shortlisting
The human resource unit will prepare a long list of all applicants. The long list will
be a summary of the applicants’ details that would be considered during shortlisting.
Such details will include; Name, Gender, Contact, ID Number, Academic and
Professional Qualifications, Relevant Experience, and Comments.
The long list will be presented to the management or Board committee for shortlisting.
While shortlisting care will be taken to ensure diversity of meriting candidates.
2.13 Selection
The Board or management committee (for delegated positions) will prepare and
approve interview guides which will then be used to select suitable candidates for the
advertised posts. Companies may use a variety of selection methods in order to
increase level of objectivity in the process. During selection interviews candidates
shall present original and certified copies of their certificates and testimonials.
2.14 Offer of Appointment
Upon completion of the interview process the successful candidates will be offered
jobs in writing while the unsuccessful ones will also be informed in writing. The job
offer will include the title of the position, and remunerative terms and conditions of
the employment. The offer must be accepted in writing by the candidate within 14
days after which a letter of contract is issued stating job title, date of appointment,
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duration of employment, place of work, remuneration, detailed terms and conditions

of employment and terms of leave and termination.
In the event that the candidate does not accept the offer within the 14 days or declines
the offer then the second best qualified candidate may be offered the job. If the second
best candidate also turns down the offer then the recruitment process shall be
repeated.
All letters of offer of appointment and contract of employment shall be signed by the
head of the company on delegated authority form the Board.
The letter of offer of appointment and contract of employment for the head of the
company shall be signed by the appointing authority.
2.15 Appointment Documents

(1) A candidate on first appointment shall provide original and copies the
following documents or as required by respective Boards; Copies of academic
and professional certificates duly notarised; National identity card; 2 Coloured
passport size photograph; Bank account details (copy of bank card); Medical
certificate from a recognized medical doctor, Practicing or membership certificate
of professional association (if applicable), Criminal records certificate from the
police; and Rwanda Social Security Board registration card where applicable.
(2) Original documents will be used to confirm the copies and returned to
the employee.
(3) The company will endeavour to confirm that professional staff are of good
standing in their professional association, if any.
2.16 Probation
A candidate who is appointed into a contract position of more than one year or a
permanent position will be appointed on probation for a maximum period of six (6)
months. (Art. 20: Law n° 13/2009).
Within the first three (3) months of the probationary appointment the supervisor and
head of department will appraise the employee and make a recommendation to the
Head of Company on whether or not the employee should be confirmed.
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If the employee is not fit for confirmation, then the probation period may be extended
once. If at the end of the additional period there is no improvement, then appointment
will be terminated. Provided that the probation must be ended in writing and within
six months of appointment.
If at the end of six months, the probation appointment is not terminated then the
employee stands confirmed automatically. If this happens however the company shall
still issue a letter of confirmation.
The Board will be responsible for confirming employees into the permanent
establishment. The Head of the Company may also confirm certain levels of
employees as may be delegated by the Board in writing.
Employees appointed to contract positions will similarly be confirmed into those

positions following the same procedure.
2.17 Non Discrimination

A Government Company shall be an equal opportunity employer and will not
discriminate against an employee on any grounds including race, sex, pregnancy,
marital status, health status, ethnic or social origin, colour, age, disability, religion,
conscience, belief, culture, language, or birth. (Art. 12: Law n° 13/2009 du
27/05/2009).
The Government Company will endeavour to have a gender balanced service.
2.18 Persons with Disabilities

Persons with disability shall be accorded preferential opportunities for employment
provided that they have the necessary qualifications and are suitable for such
employment. (Art. 97: Law n° 13/2009 du 27/05/2009 regulating labour in Rwanda).
The Company shall provide facilities and effect such modification, whether physical,
administrative or otherwise, in the workplace as may be reasonably required to
accommodate persons with disabilities. (Art. 98: Law n° 13/2009).
2.19 Appointment of Foreigners
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Where the company is unable to recruit a Rwandan citizen for any position for lack
of required skills and competencies for the said position, the Board may recruit a
non-citizen on contractual terms. (Art. 18: Law n° 13/2009).
Where a foreign employee is engaged, the company shall facilitate the application for
a work permit.
2.20 Vertical Promotions

Vertical Promotions will constitute movement from a job of a lower grade to a job of
a higher grade. It shall be based on qualifications, work performance, availability of
vacancies and other requirements as indicated in respective career guidelines for
each professional group as prepared by respective Boards.
Each company will take due regard to equal opportunities in selecting candidates for
vertical promotion.
2.21 Horizontal promotion

Horizontal promotion will constitute movement in salary from a lower salary to a
higher salary within the same job grade. It shall be based on work performance.
2.22 Dates of Promotion

The effective date of an employee’s promotion will be the date as determined by the
Board.
TRANSFERS
Transfers shall take the form of physical movement from one work station to another
or one department to another.
2.23 Transfer from One Workstation to Another

This shall apply where;
(1) Movement has been necessitated by exigencies of service.

(2) The employee has requested for it.
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Where an employee requests for a transfer, such a request shall be in writing through
the supervisor and the head of department to the head of human resource
management. The request may be granted only if there is a vacancy in to
station/department where the staff wishes to go and the absence of the employee will
not cause disruption of work in the section he proposes to leave.
Such transfers when initiated by the Company may attract payment of allowances
with adequate justifications made to the Board. Provided that;
The transfer causes the employee to move 30 or more kilometres from his current
place of work, and
The transfers is for more than two months (Art. 78: Law N° 13/2009).
2.24 Re-designation
A Company may, on its own motion, or upon request by an employee, change the title
of a position for reasons of availability of a vacancy in a position that a particular
employee has competencies in. When this happens it will be referred to as Re-
designation of the position-holder. Re-designation shall not be a promotion but shall
be movement to a position in the same grade as the one the employee currently holds.
2.25 Control Mechanism

The following documents will be used for control mechanisms in the recruitment,
selection and appointment of staff;
(1) Availability of an Approved Staff Structure
(2) Proof of budgetary allocation
(3) Availability of a detailed job description and person specifications
(4) A complete long list of applicants
(5) A complete list of shortlisted candidates with criteria used to short list
(6) Interview score records and minutes of interview decisions.
(7) Appointment letters,
(8) Rejection letters for unsuccessful candidates
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Page | 507

PART THREE: EMPLOYMENT TERMS AND

CONDITIONS
3.1 Policy objectives and purpose

To clarify the rights and obligations of an employee and employer. They serve to
attract, motivate and retain a skilled and productive workforce. They include salary,
allowances, housing, transport, terminal benefits, leave, conducive work
environment, and employee welfare and wellness.
The Board shall review the terms and conditions of employment from time to time in
response to labour market forces as well as the cost of living adjustments.

Government-controlled Companies will endeavour to attract, motivate, and retain all
its productive employees. The government companies will therefore provide
competitive terms and conditions of service including industry competitive
remunerations salaries and benefits.

Law N° 13/2009) regulating labour in Rwanda
LAW N°86/2013 establishing the general statutes for public service

The Board of Directors shall be responsible for setting terms and conditions of
employment in the company.
SALARY AND ALLOWANCES PROCEDURE
3.5 Job Grades and Salary Structure

Each company Board of Directors will prepare a salary structure based on job-grades.
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On appointment, an employee will be given a salary in his/her job grade.
The basic monthly salary of the employee will be determined by his/her job
position, grade and step in accordance with the salary structure.
3.6 Monthly Salary

All employees will be paid salary in arrears on a monthly basis in Rwandan
currency through their respective bank accounts (Art. 80: Law N° 13/2009).
To avoid pecuniary embarrassment an employee shall not over-commit their

salaries in loans and other voluntary deductions beyond two thirds (2/3) of their
basic salaries.
3.7 Thirteenth Month Salary

Subject to ability to pay, the Board of Directors may approve payment to staff in active
service a thirteenth month salary equivalent to one month’s gross salary subject to
statutory deductions at the end of each calendar year provided that the employee will
have served for at least nine (9) months during the calendar year.
3.8 Overtime
Work carried out beyond normal working hours may be compensated by awarding
the employee time off or by way of pay and will be reserved for lower level staff as
determined by the Board.
3.9 Calculation and Suspension of Salary

Salary of staff shall be calculated from the date of commencement of duty and
suspended on the date following his/her termination of employment.
In case the staff dies while in service, the salary and allowances shall cease from the
day following that on which the death occurred.
3.10 Annual Incremental Dates

Subject to the approval of the Board the company may increase the basic salaries of
all employees to mitigate the rising cost of living and in recognition of additional
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experience at such rates as may be determined by the Board from time to time. An
employee’s annual incremental date shall be the first date of the first month of the
financial year provided that the employee will have worked for at least one year.
The annual increment shall be different from a salary review which is periodic and
affect all employees including vacant positions.
The annual increment shall also be different from the performance –based pay which
only affects the good performers.
3.11 Salary in Advance

An employee may request for a salary in advance of not more than one month’s gross
pay (less statutory deductions) in the event of an unforeseen emergency. The Head of
Company may grant the request subject to availability of funds. The salary so
advanced must be recovered within 3 months.
Under exceptional circumstances an employee may be given a salary in advance

recoverable beyond three months. When this happens the balance of advanced salary
unrecovered shall attract the fringe benefits tax.
An employee may not be given the salary in advance more than 2 (two) times in any
period of 12 months.
Employees serving on probation may not be given a salary in advance.
No new salary in advance can be granted without clearing the previous advance -
3.12 Allowances
Allowances are additional payments that a company may give employee to cushion
them against expenses incurred in relation to the work. The following are some of the
allowances that may be payable by the company and the circumstances under which
they are payable.
(1) House Allowance and House Rent
House allowance is payable to all employees according to their job grades as

determined by respective boards of directors.
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Employee occupying company houses will receive their house allowances and
pay rent equivalent to the value of the house as shall be determined by the
Board from time to time.
(2) Work Transport Allowance
To cushion employees from expenses incurred travelling to and from work

each company shall pay a reasonable commuter allowance where employees
are not provided with company transport. The rates of the allowances will be
determined by the Board.
(3) Leave Allowance
Leave allowance is paid to assist employees travel to their leave destinations

to rest or have a change of activities for the purpose of recuperation. Subject
to the ability to pay, a company may grant all employees a leave allowance.
For ease of administration the allowance, if granted, shall be paid once a year
for all employees when they take at least half of their leave days. (Art. 55: Law
N° 13/2009 regulating Labour in Rwanda).
The leave allowance shall be a percentage of the basic salary as determined

by the Board of Directors from time to time.
(4) Entertainment Allowance
The Head of the Company and the deputy is required from time to time to
provide hospitality and entertainment to official guests. Such employees and
any other who is required to entertain guests, may be paid an Entertainment
Allowance which must be accounted for.
(5) Extraneous Allowance
Extraneous allowance may be paid to employees whose work require that they
frequently work beyond normal working hours. The rates and eligibility for
payment shall be determined by the Board.
As a guide, examples of such staff include Administrative Assistants/

Secretaries, Personal Assistants, and Drivers attached to offices of the head
of the company, deputy head of company, head of departments who are
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frequently required to organize their work schedules around the schedules of

the supervisors.
Staff receiving Extraneous Allowance will not be paid overt-time.
(6) Acting Allowance
This is an allowance payable to an employee appointed to act in a higher

position than that of his substantive appointment due to absence or
resignation of the substantive office holder. The acting allowance will be
determined by the Board from time to time and can only be paid to an
employee who acts in the position for at least one month (Art. 60;2 Law
N°86/2013 of 11/09/2013 establishing the General Statutes for Public
Service).
An employee may only act for 12 months after which he or she should be
confirmed, the acting responsibility renewed, or the position substantively
filled.
(7) Special Duty Allowance
This is an allowance payable to an employee deployed to assist in a position

equivalent to or below the one they substantively hold due to the absence or
resignation of the substantive office holder.
The special duty allowance will be determined by the Board from time to time
but shall in any case not be less than 20% of the employee’s Basic pay and
can only be paid to an employee who takes on these additional responsibilities
for at least one month.
An employee may only take on these responsibilities for 12 months after

which the special duty responsibility shall be renewed, or the position
substantively filled.
(8) Responsibility Allowance
Employees whose jobs require that they are held personally responsible for
critical decisions affecting the company may receive a responsibility
allowance approved and set by the Board subject to the availability to pay.
Examples of such positions are heads of the company deputy heads of the
company and heads of department.
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(9) Communication Allowance
Where applicable the Board shall approve payment of a monthly

Communication Allowance for positions above a certain grade depending on
need. It will also be at the discretion of the Board to approve payment of this
allowance to other positions that may not qualify by virtue of grade but whose
duties require frequent use of telecommunication such groups may include
Secretaries, Drivers, and Messengers.
(10) Local Daily Mission Allowance (Local Per diem)
Where an employee is required to travel on duty within the country the Board
of Directors shall set and approve the applicable Local Daily Mission
Allowance.
(11) International Mission Allowance (International Per diem)
Where an employee travels outside the country on duty for a short mission
(30 days or less) the Company will pay International Mission Allowance at the
rate approved by the International Civil Servants Commission DSA Circular
ICSC/CIRC/DSA/507 (2017) as the maximum rate applicable for the head of
company. The Board may vary the rates downwards to cater for other levels
of employees who are allowed to travel abroad.
For longer stay missions the employee may be given an additional monthly
housing allowance (not more than three times his normal housing allowance)
to accord him a reasonable accommodation as will be approved by the Board.
(12) Staff Imprest
Where an employee is travelling on duty for an estimated duration then the

staff will be advanced an amount estimated to be adequate for the duration
of the work.
This amount shall be accounted for within 14 days of return of the employee
by way of production of proof of expenditure (receipts)
(13) Transfer allowance
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Paid to staff transferred by the employer when such transfer causes the
employee to move 30 or more kilometres from his current place of work, and
the transfer is for more than two months. Must be set by the Board.
BENEFITS
3.14 Allocation of Company Houses

If a Government Company provides institutional houses for employees the employees
would be required to pay rent at rates determined by the Board from time to time.
Occupation of such houses shall be in accordance to regulations be set by the Board

from time to time.
Allocation of company houses will be as per regulations approved by the board.
3.15 Company Car Loan and Mortgage Scheme

As government companies grow and stabilize the companies may consider extending
a Car Loan and Mortgage scheme to its employees.
When this happens, each company, under the authority and guide of the
MINECOFIN, shall prepare their own rules and regulations governing such schemes.
3.16 Medical Scheme

Each government company shall provide to its employees a Medical Scheme through
an insurance cover or as an agreement with a medical service provider. (Art. 69: LAW
N°86/2013).
3.17 Medical Assistance

The Government Company may provide medical assistance to cover in-patient
medical expenses incurred by employees subject to availability of funds upon
exhaustion of the medical cover entitlement within a financial year.
The board may put in place special arrangements to consider cases where adequate
cover has not been provided through the insurance companies.
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3.18 Travelling while on Duty

When travelling by road on transfer or on duty outside the duty station, an employee
will be eligible to claim applicable reimbursements of the amount of the fare paid on
production of travel receipts.
3.19 Travelling by Company Vehicles

Every effort will be made to reduce costs and employees will, where possible, travel
together in one vehicle when going to the same or close destinations on duty. Where
company vehicles are not available employees will be given an allowance to facilitate
use of public transport.
3.20 Use of Personal Vehicles while on Duty

Where company vehicles are unavailable and employees are required to use personal
vehicles for official duty then such use must be authorized by the Head of Company
for the purpose of reimbursement of expenditure. Rate of such reimbursement will
be as set by the board.
3.21 Company Transport on Bereavement

If an employee or a member of his nucleus family passes on the company will provide
transport (or an amount equivalent) to the bereaved family. Where the company gives
cash the amount will be set by the board.
In addition the company shall also provide a token contribution to defray funeral
expenses.
3.22 Performance Bonus

The company may pay a Performance Bonus at its sole discretion depending on the
overall company and individual employee performance during the financial year. Only
staff in active service at the time of declaration of the bonus shall be eligible to
performance bonus. Staff who retired in the year shall also be eligible on a pro rata
basis.
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3.23 Fidelity Bonus

At the occasion of certain anniversaries, staff shall be entitled to a fidelity bonus for
services rendered based on the length of their service to the company as follows;
1˚ ten (10) years of employment: 1 gross monthly salary
2˚ twenty (20) years of employment: 2 gross monthly salary
3˚ thirty (30) years of employment: 4 gross monthly salary
4˚ forty (40) years of employment: 6 gross monthly salary
Staff whose career in the government company ends within six (6) months before the
anniversary date which grants him/her the right to the fidelity bonus, shall benefit
from the bonus provided for except if him/her departure is due to dismissal or
resignation.
In addition to bonus provided in this section, recognition of faithfulness to the

government company shall be embodied by a certificate and a Gold Medal for thirty
(30) years of career in the company, a Silver Medal and a Bronze Medal respectively
for twenty (20) years and the ten (10) years of career.
The implementation of this section shall not be retrospective but shall take effect after
promulgation of this Framework.
3.24 Recognition Award

There shall be an annual ceremony for recognition of the Employee of the Year and
any other special award as may be determined the company management.
3.25 Transition Mechanism

Where these allowances are new, companies are required to budget for them before
implementation.
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3.26 Control Mechanism

Request for payments of any non-remunerative allowance shall be made to the Head
of the Company who shall approve based on;
Availability of an authorised list of allowances payable to staff, and
Proper justification for the request.
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PART FOUR: TERMINATION OF EMPLOYMENT

To ensure termination is managed and compliant with the provisions of relevant
legislation and workplace agreements.

Government-controlled Companies will endeavour to make termination of
employment humane, smooth and compliant with the relevant laws so that employees
still working for the companies remain loyal to the company and productive.

(1) Law N° 13/2009 Law regulating labour in Rwanda.
(2) ILO Convention 158 Termination of Employment Convention, 1982.

(1) Employees
Employees have the responsibility of initiating voluntary termination of

employment.
(2) Supervisor and Department Head
In the event of involuntary termination, the heads of department shall submit

complaints to the disciplinary committee.
(3) Disciplinary Committee
Accords employee chance to defend themselves and dismisses the complaint,

warns or dismisses the employee.
A number of reasons may lead to termination of employment and these include

resignation, retirement, and dismissal.
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4.5 Resignation
An employee who wishes to resign from his position in the company shall notify the
Head of Company in writing giving 15 days’ notice for employees who have worked
for less than one year and one month’s notice in all other cases. Notice period is not
applicable for employees who are on probation. Such an employee will remain in
service until his resignation notice is accepted in writing.
The acceptance of the resignation shall be notified to the employee within the notice
period as set by the laws governing labour. The Head of Company may also give
conditions to be fulfilled before the resignation is accepted. Should the company fail
to communicate to the employee within the notice period then the resignation shall
be considered effected.
An employee who has resigned shall fill a clearance form and prepare a handing over
report within the notice period before he is released from the service of the company.
The handing over report shall be given to the head of the section/unit or to any other
staff to whom this responsibility is delegated.
The head of human resource management shall schedule and conduct an exit
interview with the departing employee to discuss reasons behind his resignation and
record feedback on his satisfaction or otherwise with the job, working environment,
career development opportunities and any other suggestion that may help the
Institution to improve.
4.6 Termination of Employment

The employment of staff serving on contract or probationary terms may be terminated
by the company in accordance with the provisions of labour legislations by giving
appropriate period of notice or gross salary in lieu of notice. Provided that termination
without notice initiated by the employer shall require that the employer pays the
employee dismissal compensation in accordance with the law.
The employee serving on notice initiated by the employer shall have a right to one
absence per week to look for employment.
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PROCEDURE FOR TERMINATION OF SERVICE

An employee whose services are about to be terminated for reasons such as
performance shall be notified of such intention and be given a chance to improve
within a given period of time.
If improvement is not observed within the agreed time then the employee shall have
the services terminated by giving notice of termination or pay as contained in this
framework.
If the reason for intended termination is because of poor conduct then the employee
shall be given a chance to show cause why his employment may not be terminated
for the cited reasons. Such an employee will also be required to defend themselves in
a disciplinary committee.
If the written as well as the oral submission of defence in (3) above is considered
inadequate such an employee will have his services terminated by giving notice of
termination or pay as contained in this framework.
4.7 Termination of Appointment During Leave or

Suspension
In case of termination of the employment contract by the employer during paid leave
or suspension, the notice period and or payment in lieu will be doubled.
4.8 Compulsory Retirement Age

All employees shall retire from the Service on attaining the mandatory retirement age
of Sixty-Five (65).
An employee who retires at the age of Sixty-Five (65) having served the company for
at least 15 years may be given a supplementary bonus which is equal to twelve (12)
times his/her basic salary.
4.9 Early Retirement

An employee on attaining the age of 60 years and having served the company for at
least 15 years may voluntarily retire any time thereafter without losing his retirement
benefits.
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Such an employee may be given a supplementary bonus which is equal to six (6)
times his basic salary.
4.10 Retirement on Medical Grounds

The Head of the Company may consider for retiring an employee on medical grounds
with full benefits if in his/her views, employee is unfit for continued employment due
to his/her health condition. Provided that a competent medical officer certifies that
the employee is incapable of performance of his regular duties due to the illness.
4.11 Dismissal
Dismissal refers to termination of appointment arising out of disciplinary
proceedings.
The head of the company shall sign dismissal letters.
An employee who is a member of retirement benefits scheme shall, on dismissal, be

eligible to terminal benefits as provided in the regulations governing the company
retirement scheme.
4.12 Death
Upon death of an employee, the legal beneficiary shall be paid death allowance
equivalent to a lump sum of six (6) times the last monthly gross salary of the diseased.
A funeral indemnity shall be given as approved by the Board but in any case such
indemnity shall not be less than RwF 700,000; (Art. 37: Law N° 13/2009).
Where possible the Board may buy an insurance cover for the funeral indemnity.
4.13 Termination for Other Reasons
(1) Incompetence and poor work performance:
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An employee who scores less than 50% during performance evaluation will be
warned and placed on a Performance Improvement Programme and given six
months within which to improve his or her performance. If after the six months
there is no improvement, then the employee may be dismissed due to poor
performance.
(2) Retrenchment:
In the event that the company changes its operations for whatever reasons
and the change occasions reduction in jobs then, upon approval of the Board
and concurrence of the line ministry, an employee may be laid off in
accordance with Article 26 of the Laws Regulating Labour in Rwanda.
(3) End of a fixed term contract.
(4) Job abandonment/Desertion:
An employee will be considered to have abandoned the job if the employee is

absent for fifteen (15) consecutive days and all documented efforts to locate
him bear no fruits. Such an employee may be dismissed.
(5) Disciplinary action:
If an employee is engaged in an act of gross misconduct he may be dismissed.
4.14 Rwanda Social Security Board (RSSB) Benefits

An employee who is a member of the RSSB shall be eligible for terminal benefits
under the relevant law.
Such an employee will also be paid his prorated salary, leave balance and any other
allowances that may be due to him at the time of leaving.
Such an employee will also be required to repay any excess leave days and salary
advances taken.
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4.15 Certificate of Employment

Certificate of Employment will be given to an employee upon his retirement,
resignation, dismissal or termination of appointment (Art. 38: Law N° 13/2009).
4.16 Testimonials and Letters of Commendation

Employee who wish may request their heads of department to write letters of
commendation or testimonials for them as they leave employment under whichever
circumstances.
4.17 Key Control Mechanisms/Processes

Control document to be used to confirm return of company assets upon termination
is the Clearance Form. See Appendix 3 for a Sample Clearance Form.
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PART FIVE: LEAVE
5.1 Policy Objectives and Purpose,

To allow a flexible time for an employee to rest, recreate and meet personal, family,
work and community commitments without compromising the achievement of
company objectives. The policy applies to all employees.

(1) Law N° 13/2009 Law regulating labour in Rwanda
(2) ILO Holidays with Pay Convention (Revised), 1970 (No. 132)

(1) Head of Company/Head of department
Authorise employee to proceed on leave.
(2) Human Resource/Admin unit of the department
To work out balance of leave days.
(3) Supervisor
To recommend and effect continuity of work while employee is away.
(4) Employee
To apply for the leave and arrange for continuity of work while away.
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5.4 Types of Leave

The following are the types of leave that an employee may access while in the
employment of the company; Annual Leave; Maternity Leave; Paternity Leave; Child
Adoption Leave; Unpaid Leave; Incidental Leave; Leave for Sportsmen/women; Sick
Leave; Terminal Leave; Nursing family member leave; Study leave; and Standing for
election leave.
LEAVE PROCEDURE
5.5 Application for Leave
(1) Application for leave should be submitted in a prescribed Leave Application

form to the supervisor at least ten (10) days before date of commencement of
the leave (See sample Leave Application Form in Appendix 4).
(2) In the vent that an employee applies for and is grated leave that lasts more
than fifteen (15) working days, the employee will be required to prepare brief
handing over notes to his supervisor covering the most important pending
work. This will ensure smooth flow of work while the employee is on leave.
(3) An employee should not proceed on leave before approval by the Head of
Company or Head of Department as may be applicable.
(4) After approval, the Head of the Company/Head of Department shall submit
the filled leave form to the Human Resource Department for updating the leave
records and filing.
5.6 Annual Leave (Art. 53: Law N° 13/2009)

(1) Every employee has a right to leave. Annual leave is granted by the head of
the functional unit or Head of the Company.
(2) Commencement of annual leave will be guided by the departmental leave

plan. Commencement date may be postponed due to exigencies of duty but
may not be pushed to the following leave year.
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(3) Each Section in each department shall prepare their leave plan ensuring that
staff leave periods are spread throughout the year. A copy of the leave plan
shall be forwarded to the head of human resource management.
(4) The head of human resource management will prepare a leave plan template
to guide the company.
(5) The leave year shall be 1st January to 31st December.
(6) An employee will be eligible for annual leave at the commencement of a ‘leave
year’ except in the case of a newly appointed employee who will be required
to serve for a minimum of six (6) months before being granted annual leave
on prorated basis.
(7) A new employee will however be allowed other types of leave that are
emergency in nature.
(8) All employees shall be entitled to at least 21 days annual leave which excludes
Saturdays, Sundays and Public Holidays. Each company will prescribe their
own minimal leave days for their employees provided that these days are not
less than 21 days per year.
(9) Companies shall ensure that each employee gets an additional one leave day
after every three years of service.
(10) Annual leave must be taken within the leave year it falls due. Deferment of
annual leave from one leave year to another shall be permitted subject to the
provisions of the Law regulating labour in Rwanda N° 13/2009 of
27/05/2009. For leave to be carried forward without lose the employee MUST
apply for the leave and prove that the employer turned down the application.
(11) If an employee applies for leave and the supervisor turns down leave
application due to demands of the job and the employee, for whatever
reasons, cannot carry over the leave to the following year then the employee
may be allowed to commute the leave into cash. When such leave is
commuted it shall be calculated based on the basic salary of the employee
and it shall not be for more than 15 days per year.
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5.7 Maternity Leave (Art. 65: Law N° 13/2009)

(1) All female employees will be granted maternity leave with full salary for a
minimum period of twelve (12) weeks exclusive of the annual leave due for the
year. Provided that 80% of the salary paid to the employee during the last 6
weeks of maternity shall be recovered from RSSB as required by statutes.
(2) Should it be necessary to extend maternity leave beyond the 12 weeks, then
the employee will be produce a medical certificate to that effect. Such
extension shall be treated as paid sick leave and regulated as such.
(3) An application for maternity leave supported by a medical certificate indicating

the date on which maternity leave should commence should be submitted to
the Head of the Company.
(4) A woman who delivers a still-born or who’s infant of less than one month of
age dies shall benefit from a leave of four (4) weeks as of the day the event
occurred.
5.8 Paternity Leave

(1) A male employee will be eligible for a maximum period of five (5) working days
paternity leave upon production of a notification of birth of the child.
(2) In this regard, it is clarified that in the case of a male employee with more than
one wife, he will be entitled to paternity leave once in each leave year.
5.9 Adoption Leave

(1) It is recognized that where an employee opts to adopt a child then such an
employee will be rescuing such a child from unfavourable circumstances in
life and that such an employee will take on the full responsibility of bringing
up and educating the child to become a productive Rwandan citizen in future.
For this to happen then the new member of the family should be integrated
with the family and be given time to bond. For this reason, an employee who
adopts a child who is below five (5) years will be granted a Child Adoption
Leave.
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(2) An employee who has been granted adoption rights under the child adoption
statutes and wishes to take leave for purposes of bonding and integrating the
child into the family, will be entitled to Child Adoption Leave equivalent to and
treated as Maternity Leave and subject to production of an adoption order.
5.10 Unpaid Leave

Unpaid leave may be granted by the Head of Company on the recommendations of
Human Resource Management Department to attend an urgent private affair of
exceptional nature not exceeding thirty (30) calendar days.
5.11 Incidental Leave (Art. 58: Law N° 13/2009)

This is unpaid leave granted to an employee due to exigencies outside the workplace
which are beyond the employee’s control.
5.12 Sick Leave (Art. 61-62: Law N° 13/2009)

(1) An employee may be granted sick leave subject to the maximum period as
indicated below:
(a) All employees will be granted up to three months’ sick leave with full pay,
followed by three months without pay in the event that the employee does
not resume duty.
(b) On the expiry of the six months, if the employee still is unable to resume
duty then the company may terminate his services.
(2) An employee on sick leave as a result of an accident or occupational disease

will be entitled to full pay during sick leave. Additionally, the employee will be
compensated as per Articles 15-17 of Law N° 06/2003 of 22/03/2003
Modifying and Completing the Decree Law of August 22, 1974 Concerning
Organization of Social Security.
(3) Sick leave may be authorized by registered medical practitioners for up to a

maximum of twenty two (22) days. Should it be necessary to allow absence
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from duty in excess of this period, the medical practitioner shall provide
reasons.
5.13 Retirement Leave

Within the last month of work an employee who is due for retirement will be entitled
to thirty (30) calendar days leave. This leave will be in addition to the annual leave
and will not be compensated if not taken.
5.14 Nursing Family Member Leave

This is paid leave which may be given to an employee who has a member of the
nucleus family who is ill. The duration of this leave will be 5 days in one calendar
year or as may be determined by the Board.
5.15 Study Leave

This is paid leave which may be given to an employee who is pursuing an approved
full time study programme sponsored by the company or government or a
development partner.
5.16 Standing for Election Leave

This is an unpaid leave for up to 30 days which may be given to an employee who
wishes to present himself as a candidate for an elective post.
5.18 Religious Holiday

Employees whose religion require that they have a festival or holiday which are not
gazetted as holidays will be allowed leave of absence without loss of pay for not more
than four (4) days in a leave year, subject to exigencies of duty.
5.19 Public Holidays

A government company shall observe all official holidays in Rwanda. The official
public holidays are as follows;
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(1) 1st January: New Year’s Day
(2) 2nd January: Day after New Year’s Day
(3) 1st February: National Heroes Day
(4) Good Friday
(5) 7th April: Genocide Against the Tutsis Memorial Day
(6) 1st May: Labour day
(7) 1st July: Independence Day
(8) 4th July: Liberation day
(9) Friday of first week of August: Umuganura Day
(10) 15th August: Assumption day
(11) 25th December: Christmas day
(12) 26th December: Boxing day
(13) Eid-El-Fitr: the date shall be announced each year by Rwanda Moslems
Community (RMC)
(14) Eid-Al-Adha: the date shall be announced each year by Rwanda Moslems
Community (RMC)
5.20 Leave Compensative Indemnity

A compensation indemnity is paid in lieu of the leave when an employee leaves
employment before taking his leave days and is calculated as provided for in article
53 of the Law N° 13/2009 of 27/05/2009, regulating labour in Rwanda.
5.21 Key Control Mechanisms Processes

The following shall be used as control mechanism of for leave;
(1) Use of Leave Application Forms with at least three levels of authority.
(2) Use of leave records during approval of each leave application.
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PART SIX: HEALTH AND SAFETY AT WORK

To continuously reduce incidences of work related injuries, fatalities, diseases,
disasters and loss of national assets and to improved employee awareness regarding
safety, health and environment at workplace.

It is the intention of the Government that a healthy and safe working environment is
provided for the employees. The Government-controlled Companies will therefore put
in place systems, procedures, and equipment that eliminate or minimize the effect of
any hazardous materials or situations.

(1) Ministerial Order N°01/MIFOTRA/15 of 15/01/2015 Determining Modalities
of Establishing and Functioning of Occupational Health and Safety
Committees;
(2) Law N° 13/2009 of 27/05/2009 Regulating Labour in Rwanda;
(3) ILO- Occupational Safety and Health Convention, 1981 (No. 155).

a. Head of the Company
b. Maintain healthy and safe working environments for employees under their
respective companies.
c. Appoint a senior employee to be in charge of Environment, Health and Safety.
d. Senior employee in charge of environment, health and safety
(2) Organise periodic emergency evacuation drills and talks on environment,

health and safety. Such talks and drills shall be no less that once per year.
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(3) All employees
(4) Responsible for ensuring safety to themselves and others when performing
their duties.
WORK ENVIRONMENT, HEALTH AND SAFETY

PROCEDURE
6.5 Emergency Preparedness

All government companies shall put in place measures to ensure preparedness in the
event of a disaster such as fire, earth quake, flooding, terror attack etc (Art. 9, 1-3:
Ministerial Order N°01/Mifotra/15 OF 15/01/2015).
6.6 Fire Precautions

The Company will ensure that fire protection equipment, facilities, and measures are
provided and enforced in the buildings used by employees. The equipment and
facilities must be adequate and maintained as advised by Occupational Safety and
Health Officers and Fire Officers.
6.7 Medical Reviews for Exposed Employees

All employees working in hazardous occupations will undergo periodic medical
reviews in order to detect and treat any conditions that may affect them.
6.8 First Aid Box

The Head of Company will ensure that employees have access to an emergency box
of first aid needed in case of accident.
6.9 Personal Protection

All employees who are exposed to conditions that may be injurious to them will be
provided with adequate protective garments, equipment and appliances.
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6.10 Compensation to Injured Employees

Work injuries are divided into four categories:
(1) Permanent total incapacity
(2) Permanent partial incapacity
(3) Temporary incapacity and
(4) Fatal injury leading to death of a worker
Compensation for work injury is given as per Articles 15-17 of Law N° 06/2003 of
22/03/2003 Modifying and Completing the Decree Law of August 22, 1974
Concerning Organization of Social Security.
In the event that an employee leaves employment as a result of injury sustained from
employment, he shall in addition to statutory compensation be given one month’s
gross salary as an exgratia pay.
6.11 Counselling Support

Company employees who are facing psychological or career problems and who need
guidance and counselling services may be supported by the company or referred to a
professional where available.
6.12 Support for Staff Affected by HIV/AIDS

(1) The Company will put in place care and support programmes for the infected
and affected employees to enable them remain productive in company service.
(2) The Board of each company will also prepare a company HIV/AIDS prevention
and support policy in line with ILO code of practice on HIV/AIDS and the world
of work.
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6.13 Smoking
All Company Government premises are designated Non-Smoking Zones. Employees
are required to refrain from smoking within the compounds of these premises at all
times.
6.14 Rehabilitation of Employees Affected by Drug Abuse

Addiction to drugs or other substances of dependence will be treated like any other
disease and where possible support will be given to employees who suffer from
addiction to drugs. Where support is not effective the employee’s services may be
terminated on medical grounds.
6.15 Workplace Recreation

Each company shall avail its employees at least one hour every week for recreation
preferably on Friday afternoons as per government policy.
6.16 Key Control Mechanisms and Processes

An annual environment, health and safety audit will be carried out and report
reviewed to ensure compliance.
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PART SEVEN: PERFORMANCE MANAGEMENT,

TRAINING AND DEVELOPMENT

To provide a system of continuous improvement, timely feedback, and open, honest
communication between the company and its employees.
7.2 Key documents involved

(1) Results Based Performance Management for Rwanda - Policy Paper-8/2015.
(2) Ministerial Order Nº 07 of 13/07/2010 Determining the Implementation

Modalities for Professional Training and its Related Leave.

Employees are valuable members of the Government-controlled Companies.
Fostering a positive working environment for the employees is critical in retention
efforts. One component of a positive working environment is committing to concepts
of continuous improvement, timely feedback, and open, honest communication. It is
important that the government company provides feedback to employees on their
performance. This includes both celebrating an employee’s successes and working
with the employee to resolve and improve performance deficiencies through training
and capacity building.

(1) Portfolio Coordination Unit (PCU) shall:
(a) Review government companies’ strategic plans, follow up their

implementation, report the findings to the Minister in charge of finance;
(b) Set overall guidelines for performance contracts for all government
companies’
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(2) Line Ministry
(a) Responsible for approving moderating company annual targets and;
(b) Signing performance contracts with the Chairperson of the company.
(a) Setting the overall objectives and strategies of the company and approving
annual targets for the company.
(b) Appraising the performance of the Head of the Company.
(c) Handling as a last resort, the appeals on performance appraisals.
(a) Converting company strategies into annual company targets and

approving departmental annual targets.
(b) Appraising the performance of the Department Heads.
(5) Heads of Department
(a) Converting company targets into departmental targets and approving

sectional and individual employee annual targets.
(b) Appraising the performance of the Sectional Heads.
(6) Heads of Section
(a) Converting department targets into section targets and setting individual
employee annual targets.
(b) Appraising the performance of the individual employees.
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PERFORMANCE MANAGEMENT PROCEDURE
7.5 Performance Contracting (PC)

Performance Contracts are a way of the company setting its performance targets
based on their mandates, functions and strategic objectives.
7.6 Staff Performance Appraisal

Individual staff performance is measured using the staff performance appraisal (SPA)
form. The SPA begins by setting negotiated targets based on the individual employee’s
job description, section priority objectives and targets as well as departmental
performance contract. A sample Staff Performance Appraisal form is attached as in
Appendix 5.
7.7 Scope of Application

(1) The SPA shall apply to all categories of staff who are not in charge of
departments, sections or units. Head of departments, sections, or units will
use departments, sections, or units Performance Contracts as their
Performance Appraisal tools.
(2) All newly employed employees on probation will be required to set performance
targets with the supervisors and complete the Staff Performance Appraisal
forms within one (1) month of employment. The staff should thereafter be
appraised within four (4) months of their appointment after which their
appointment shall be confirmed, deferred or terminated.
(3) All promoted/redeployed employees will be required to set new performance

targets with the supervisor and complete the Staff Performance Appraisal
forms within one (1) month of promotion/ redeployment.
(4) At the end of the appraisal year section heads will appraise their staff and a
summary report of the appraisal shall be forwarded to the Human Resource
Advisory Committee for moderation before transmission to the Board.
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(5) The performance appraisal report shall form the basis for placement,
promotion, retention, training/capacity development, mobility and separation
of staff within and across the company.
7.8 Setting of Performance Targets

(1) Prior to the beginning of the performance period, departments of companies
will prepare Performance Contracts (PC) based on the company strategic plans
and departmental priorities. From the departmental PCs, section PCs will be
prepared. From the section PCs individual staff performance targets will be
derived.
(2) The departmental PCs will form the individual performance appraisal targets
for the department heads. Similarly, the Section PCs will form the individual
performance appraisal targets of the section or unit heads. From the Section
or Unit PCs individual staff performance appraisal targets will be prepared.
(3) The department PC will be signed between the Head of Company and the head
of department. The section PC will be signed between the head of department
and the head of section. The staff performance appraisal forms will be signed
between the section head/supervisor and the individual staff.
7.9 Periodic Reviews

All supervisors will be expected to have half-yearly review meetings with their staff to
ensure targets are on course or are modified and to address any challenges identified.
7.10 Annual Appraisal

The annual appraisal takes place at the end of the appraisal period and is evidence-
based. The appraisee will gather evidence of achievement of targets for discussion
and award of scores.
7.11 Recognition of Performance

(1) The overall goal of the Rewards and Sanctions is to establish a basis for
rewarding exemplary performance and administering sanctions for poor
performance.
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(2) The Board of Directors will be responsible for the administration of the rewards
and sanctions policy. The Board will also handle cases of appeals after
employees have exhausted all review mechanisms.
7.12 Appeals on Staff Performance Appraisal

Appeals on performance assessment shall be submitted to the Human Resource
Advisory Committee for consideration.
TRAINING AND CAPACITY BUILDING -PROCEDURE
7.13 Training and Capacity Building Policy

(1) Each company shall develop a training and capacity building policy which
shall guide implementation of training procedures. The said policy shall also
guide on the allowances payable to employees on training. (Art. 3: Ministerial
Order Nº 07 OF 13/07/2010).
(2) Trainings shall be based on identified training needs as assessed every two
years by the companies.
(3) The department responsible for human resource management shall keep a
skills inventory where all trainings attended by staff whether sponsored by the
company or not shall be recorded.
7.14 Induction of New Employees

(1) New employees need orientation on the job in order for them to settle down to
a productive life, faster.
(2) The head of human resource management will coordinate an induction

training within one month of appointment for newly recruited employees.
(3) Where there is significant change in duties and responsibilities induction

training will also be organised for employees who are on transfer, promotion
and re-designation.
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7.15 Bonding Trainees

(1) Employees proceeding on company sponsored programmes of training lasting
at least six (6) months and or costing a certain minimum amount shall be
bonded for a period ranging between one (1) and five (5) years. Specific
provisions will be made by respective Boards.
(2) The bond amount will be the total cost of the training.
(3) In case of default, the bondee will be required to redeem the bond amount on
pro-rata basis.
(4) An employee of a government company leaving the service of one company to

another government company or to other government services will NOT be
required to redeem the bond amount.
7.16 Training application

An employee who wishes to go for training whether sponsored by the company or by
self shall apply for the training using a prescribed Training Application form (see
Appendix 6 for a sample form). The training application form forms training records
for the purpose of approving the training and keeping a skills bank.
7.17 Annual Leave While on Training

An employee who has been away on training shall forfeit his annual leave for the
entire period of training.
7.18 Workshops and Conferences

Staff attending workshops and conferences will be facilitated by way of allowances
reasonable enough to enable the employee to afford decent accommodation and meals
as well as necessary transport. Respective Boards will set these allowances.
7.19 Training while on Probation

As a general rule staff serving on probation will not be allowed to go for sponsored
training until after confirmation. An employee on probation may however be allowed
to proceed on a training if such a training is designed for implementation of new
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policy, procedure or system that will operate within the section in which the new
employees is based and the employee will be required to be part of the team
implementing it.

The following will be used as the control mechanisms and processes;-
(1) Availability of company strategic plan.
(2) Availability of annual work plan.
(3) Availability of company, departmental, and section performance contracts.
(4) Availability of individuals staff Performance Appraisal form.
(5) Minutes of the board adopting annual performance results.
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PART EIGHT: CONDUCT OF EMPLOYEES

To ensure fair, efficient, and equitable decisions are made regarding compliance with
company policies and regulations.

(1) Law N° 13/2009 regulating labour in Rwanda.
(2) Ministerial Order Nº 20/19.19 OF 21/07/2009 Modifying and completing

Ministerial Order N° 15/19 OF 13/06/2003 Concerning Weekly Hours Within
Public Service).

It is the policy of the Government to encourage fair, efficient and equitable solutions
for problems arising out of the employment relationship between the government
companies and their employees and to meet the requirements of laws of Rwanda.

The BoD shall have the ultimate responsibility on discipline of the employees
in terms of appeals and dismissal.
(2) Human Resource Advisory Committee (HRAC)
Responsible for reviewing all disciplinary decisions such as interdictions. The

Committee may suspend an employee and refer the case to the Board for cases
that warrant dismissal.
Responsible for all disciplinary decisions from warnings and up to suspension

of employees. The Head of Company will refer cases of interdictions and
suspensions to the HRAC or to the Board for review.
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(4) Head of Human Resources
Responsible for all disciplinary decisions from warnings up to interdiction of

employees.
(5) Heads of Department/Sections
Responsible for all disciplinary decisions in the department/section from

warnings up to severe reprimand.
8.5 Office Hours

This will be set by the Board depending on the operations of the company and as
regulated by labour laws.
8.6 Public Holidays

Public holidays shall be as determined by a Presidential Order and be considered as
official holidays.
EMPLOYEE DISCIPLINE -PROCEDURE
8.7 Guiding Principles

The disciplinary control in a government company is governed by the rules of natural
justice as guided by the following principles:
(1) Procedural fairness, where an employee must be allowed adequate opportunity

to prepare and present his/her case;
(2) The deciding authority must be unbiased when hearing and making decisions;
(3) Decisions must be based upon logical proof or material evidence.
8.8 Disciplinary Procedure

The following shall be observed while processing discipline cases:
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(1) If criminal proceedings are instituted against an employee or where an

employee has been acquitted of a criminal charge in a court of law, the Board
shall not be prevented from dismissing him or otherwise punishing him on
any other charge arising out of his conduct in the matter.
(2) Where an employee has been charged with desertion of duty, the letter shall
be addressed and posted to his/her last known address by registered mail.
(3) Disciplinary cases shall be dealt with promptly and finalized within a period
of six (6) months. Where it is found impracticable to do so the Head of the
Company shall report individual cases to the Board explaining the reason for
the delay.
8.9 Interdiction
(1) The interdiction process entails the following:
(a) Interdiction may be effected in cases where an employee has been charged
with gross misconduct where criminal proceedings have been instituted
against an employee. A sample letter of interdiction is provided in the
Appendix 7.
(b) If the misconduct is one which can lead to dismissal but is not of criminal
nature the employee shall be served with a ‘Show Cause Letter’ which
shall also contain a communication on interdiction, a sample of which is
provided in Appendix 8.
(2) An employee on interdiction shall be entitled to half of his basic salary, full
house allowance and medical insurance cover where applicable.
(3) An employee who is on interdiction shall not enter the premises of the
company without the permission of the Head of the Company or any other
employee who is empowered to give such permission.
(4) If HRAC or the Board finds that the employee was culpable but the offence
does not warrant dismissal then the Committee or the Board may lift the
interdiction but restore only such proportion of the withheld salary as the
Committee or Board will deem appropriate. Sample letter lifting interdiction is
as in Appendix 9.
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(5) Interdiction shall be lifted by HRAC for middle management and junior
positions or the Board for senior management positions.
8.10 Suspension
(1) Suspension process will be as follows:
(a) If an employee has been convicted of a serious criminal offence or is found

culpable of a gross misconduct which can lead to dismissal, he or she shall
be served with a letter of suspension, a sample of which is provided in the
Appendix 10.
(b) An employee who is on suspension shall not enter the premises of the
company without the permission of the Head of the Company or any other
employee who is empowered to give such permission.
(c) An employee who is on suspension shall not be entitled to any salary but
shall be paid full house allowance and medical insurance cover where
applicable.
(d) An employee whose suspension has been lifted shall be served with a
decision letter, a sample of which is provided in Appendix 11. Any withheld
salary, allowances and benefits shall be restored with effect from the date
it was withheld.
(e) If the Board finds that the employee was culpable but the offence does not
warrant dismissal, then the Board may lift the suspension but restore only
such proportion of the withheld salary as the Board will deem appropriate.
(2) Suspension shall only be lifted by the HRAC for middle management and
junior positions or the Board for senior management positions.
8.11 Criminal Cases

In the event that a court of law acquits an employee in a case arising out of a criminal
offence in the workplace, such acquittal will not prohibit the Head of the Company
from dismissing or otherwise punishing such an employee as a result of his
involvement in the offence. Article 4 of the Presidential Order No 65/01 of
Page | 545

04/03/2014 Determining Modalities of Imposing Disciplinary Sanctions to Public

Servants.
8.12 Gross Misconduct

The offences that amount to gross misconduct which may lead to summary dismissal
are, but not limited to, the following:
(1) Persistent infraction of minor offenses;
(2) Persistent poor performance;
(3) Being drunk or intoxication during working hours;
(4) Sexual harassment;
(5) Unauthorized use or disclosure of confidential information;
(6) Using abusive or insulting language or behaving in a manner likely to cause

a breach of the peace;
(7) Insubordination;
(8) Criminal conviction;
(9) Negligence of duty;
(10) Incarceration for more than fourteen (14) days following arrest for an offence.
8.13 Punishments
(1) The following constitute an array of punishment available for erring
employees; -
(a) Recovery of cost or part of the cost of any loss or breakage caused by
default or negligence.
(b) Reprimand (including severe reprimand).
(c) Deferment of salary increment.
(d) Stoppage of increment.

Page | 546

(e) Reduction in rank.
(f) Dismissal.
(2) Before an employee can be subjected to any of the above punishments the
employee will be given a chance to Show Cause why such a punishment may
not be meted on him. A sample of such letter is attached as Appendix 12.
8.14 Code of Conduct

(1) Professionalism
A company employee is required to carry out his duties professionally and with
respect.
(2) Membership to Professional Bodies
(a) An employee who is a member of a professional body shall observe the

ethical and professional requirements of that body.
(b) Where it is a requirement that a professional must be licenced or be a

member of a professional body to practice then the company shall pay such
licence fees. Provided that this payment will be limited to only one
professional body per year.
(3) Financial integrity
An employee of a government company shall not use the office to unlawfully

or wrongfully enrich himself or herself or any other person.
(4) Financial Embarrassment
Over committing one’s salary may lead to financial embarrassment which is

regarded as interfering with integrity and efficiency and harmonious working
relationships.
(5) Conflict of interest
(a) An employee will ensure that there is no conflict of his personal interests
and those of the company while performing the duties of his office. Where
such interest exist the employee shall declare them to his supervisor and
Page | 547

excuse himself from the procedure being taken leading to a decision.

“Personal interest” includes the interest of a spouse, relative, or business
associate.
(b) If employees within the company develop relationships that lead to

marriage, then one of the employees shall be transferred to another
department/section such that there is no possibility of a direct reporting
relationship between the husband and wife.
(6) Care of property
An employee shall take all reasonable steps to ensure that property that is
entrusted to his care is adequately protected and not misused or
misappropriated.
(7) Bullying
An employee shall not bully any other employee or person within or outside
the company.
(8) Sexual Harassment
An employee shall not sexually harass a member of the public or fellow

employee. “Sexually harass” includes doing any of the following, if the person
doing it knows or ought to know that it is unwelcome:
(i) Making a request or exerting pressure for sexual activity or favours;
(ii) Making intentional or careless physical contact that is sexual in nature;

and
(iii) Making gestures, noise, jokes or comments including innuendos,

regarding another person’s sexuality.
(9) Cronyism Nepotism
An employee shall not practice undue favouritism to their friends, associates

or relatives at the expense of the service.
(10) Reporting improper orders
Page | 548

An employee shall report to the Head of the Company or the Board, as the case
may be, any order required of him that he shall consider improper or
unethical.
(11) Uniforms for Officers
Employees offering common services such as Hosts, Stewards, Receptionists,

Guards, Drivers and Support Staff and are required to wear uniforms will be
issued with a minimum of two (2) sets of appropriate uniform annually.
(12) Dress Code
Government company employee must be appropriately dressed and groomed

to project a positive image of the company and portray a sense of
professionalism.

The following will be used to effect controls on the disciplinary policy;
(1) Availability of this human resource manual to act as a guide.
(2) The provision for appeals to higher offices or bodies in the event of
dissatisfaction with a discipline decision.
(3) Exercising right to access information for the purpose of defence during
disciplinary procedure.
Page | 549

PART NINE - COURT CASES AND LABOUR

RELATIONS
9.1 Policy Objectives Purpose

To act as a general guide in handling cases where an employee sues a government
company following a disciplinary process.

(1) Law N°21/2012 of 14/06/2012 relating to the civil, commercial, labour and
administrative procedure.
(2) Law N° 13/2009 regulating labour in Rwanda.

It is in the interest of government that there be harmonious existence between its
companies and their employees. For this reason, government companies will
endeavour to create an atmosphere of cordial relations with their employees.

The Head of the Company
Responsible for ensuring that all that is required by the courts are availed without
delay.
COURT CASES -PROCEDURE

If the company is sued for a decision it made out of a disciplinary procedure the
following shall apply:
(1) The Head of Company shall inform the Board and forward all the relevant
information relating to the case.
Page | 550

(2) Head of Company shall ensure that they cooperate with the court in availing
evidence and witnesses as may be required for successful handling of the court
case.
(3) The company shall comply with the court orders in consultation with the Board
including when a notice of appeal has been filed.
9.5 Labour Relations

(1) The Board shall appoint a team to engage Trade Unions representing employees
in negotiating Labour Collective Conventions. The Company and the Unions
shall negotiate Labour Collective Conventions setting out the terms and
conditions of service for the employees.
(2) Activities of the trade unions will be guided by the labour law.
9.6 Resolution of Labour Disputes

It is good practice that the Government-controlled Companies have good working
relations with the employee unions in order to maintain industrial harmony.
However, should a trade dispute arise concerning any aspect of the
employer/employee relationship, the resolution of that dispute will be as provided for
in the Law regulating labour in Rwanda N° 13/2009 of 27/05/2009.

The Head of Company with approval of the board may procure the services of a
competent legal practitioner to guide and defend the position of the company on the
mater.
Page | 551

Appendix 1: Sample Staff Establishment
Company Logo
Staff Establishment for 2017 -2021
Department ……………………………..
No. of No. In No. of

S No. Job Title Job Grade
Positions Place Vacancies
1.
2.
3.
4.
5.
Page | 552

Appendix 2: Sample Application for Employment

Form
Company Logo
APPLICATION FOR EMPLOYMENT FORM
(To be completed by All Job Applicants)
Please fill the form legibly in ink.
PART I PERSONAL DETAILS
1. Name……………………………………………………………………………
(capitals, surname first)
Sex: Male Female (Tick)
Maiden name if a married woman……………………………………………………….………
Postal Address…………………………………………..…………………………………..……….
Physical Address…………………..…………………………………………………….……...…..
Tel. No:……………………………………… Alternative No:…………………………………….
E. mail……….…………………..……………………………………………………………………..
Page | 553

2. (a) For Rwanda Citizens

Date of birth ……………..………… Region of Birth ……….……..… Passport / Identity
Card No…………………… (Attach a copy)
(b) For Non-Citizens
Date of birth ……..………………..………… Country of origin……..………………….……….
Entry permit No. ………………….………… Date Issued …….……….………………….…..

Valid for………………….. Passport No. ………………..……… Date issued ….…………….
Date of expiry …..………………… Date of Arrival in Rwanda ………………………….……
3. Marital status ………………………………... (single, married, widower, widow, divorced)

If married, full name of spouse……………………………………………………………...…….
In case married, husband’s/ wife’s occupation and address

……………………………………………………………….……………………………………………
…………………………………………………………………………………………………………….
Number of children …………….….. Aged respectively………………………………...………
4. Languages spoken 1. …………………..…… 2. ……………..……… 3. ……………………….
5. Do you suffer from any physical impairment?

No Yes
If so give details
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
Page | 554

PART II EDUCATIONAL BACKGROUND
Universities and Colleges From To Degrees, Diploma

attended in order from the latest (Month, (Month, Certificates and other
Year) Year) relevant qualifications
PART III EMPLOYMENT PARTICULARS AND CAREER HISTORY
a) Give full particulars of all your employment since leaving school or college (including
services with the Armed Forces) and periods of unemployment. Attach copies (not
originals) of available testimonials. IT IS ESSENTIAL THAT THESE PARTICULARS ARE
GIVEN IN FULL. If space is insufficient, a separate sheet of paper may be attached.
Name and full address of Position DATE (Month and Year)

employer and department
From To
Page | 555

b) 1. Advertised vacancy for which application is made
……………………………………………….…………………………………………….………………
Advertisement No. ……………………….……………………………………………………………
2. Present Employer …………..………………………………Station ………...……………….
Present substantive title…………. ……………………………….………………………………..
a) Date of appointment to it …………..………………………….…………………….……….
b) Present basic salary per month (RF) ……………………………………………………….
c) Present terms of service …………………………. (temporary, contract, probationary,

permanent)
PART IV CHARACTER
The Government-controlled Company only appoints persons of good character. The company
is therefore guided by the constitution and other relevant laws in relation to employee
character and integrity.
Please read the guidance carefully before completing this section.
Page | 556

It is essential that you answer all the following questions fully. Where you have
answered yes, please include any mitigating information you would like the company
to take into account when considering your application. If you are in any doubt please
include all relevant information. This is a continuing responsibility throughout the
process for any matter that may arise up to the point of appointment.
1. Have you ever been convicted of, or cautioned for any criminal offence or are any other
proceedings pending against you?
No Yes
If yes, please give details of the case and any penalty for each offence:
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
(The fact of an applicant declaring that he/she has been convicted of an offence will not
necessarily debar him/her from employment in the company. Each case will be considered
on its merits having regard to the nature and the circumstances of the offence).
2. Have you ever been dismissed or otherwise removed from the employment by any
employer?
No Yes
If yes give details

…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
3. (i) Have you at any time:
a) Been adjudged bankrupt?

No Yes
b) Been sued to judgment for any debt?

Page | 557

No Yes
If yes, please provide details including any issues relating to the adherence of any
agreement made or details about any such proceedings pending?
Date (s) Details
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
(ii) What is your loan exposure with financial institutions? Please give details
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
4. Have you ever had an action brought against you for professional negligence, without the
matter being dismissed, or are any such proceedings pending?
No Yes
Date (s) Details
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
5. Is there any additional information which should be brought to the attention of the
company, which might call into question your eligibility for employment.
No Yes
Date(s) Details
……………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………
Page | 558

……………………………………………………………………………………………………………………
PART V DECLARATIONS
Declaration of interest
Are you related to any of member of the Board of Directors or senior employee of the
Company? If so, please give details below:
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………….……
…………………………………………………………………………………………………………….……
Final declaration
I declare that the information that I have given on this form is true and to the best of my
knowledge and belief.
Signature of applicant: …………………………………………………. Date: ……………………….…
Page | 559

Appendix 3: Sample Clearance Form
Company Logo
DATE ………………………………
CLEARANCE FORM
PART I
Name of the Officer Leaving…………………………………………………………...……………..……..
Designation…………………………………………… Payroll /No………………………………..………
Department……………………………………………… Station…………..………………………………
REASONS FOR LEAVING THE SERVICE

Retirement
Resignation
Dismissal
Transfer
Others Specify …………………….………….
Effective Date …………………………………………………………..
OFFICER LEAVING SERVICE
1. I certify that to the best of my knowledge I do/do not owe any money, stores or materials,
which were under my charge in my place of work (state nature of liabilities)
Signature………………………………………… Date………………………………………………
Page | 560

PART II
To be completed by Section/Departments heads

1. HEAD OF DEPARTMENT
I certify that the above named employee has /has no company liabilities as follows:-.
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Name..……………………………………………………….
Signature……………………………………..
Official Stamp …………………………….……… Date ……………………………………………
2. I. C. T
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
I have also deleted his email account from the official company email and received his
password for computer/laptop that was company issued.
Name…………………………………………………
Signature…………………………….……………..
Official Stamp……………………………………………… Date …………………………………….
3. PROCUREMENT
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
Name…………………………………………………
Signature……….……………………………………
Official Stamp………….……………..……………….. Date ………………………………………….
Page | 561

4. FINANCE
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Name…………………………………........................
Signature……………………………………..
Official Stamp…………………………………….…….. Date ………………………………………….
5. HUMAN RESOURCE
Advance Salary ----------------------------------------------------------------------------------------
Leave extra days --------------------------------------------------------------------------------------
Name…………………………………………….…………...
Signature…………………………………….
Official Stamp…………………………………………… Date ………………………………………….
6. CLEARED /NOT CLEARED - (HEAD OF THE COMPANY)
Name………………………………………………………...
Signature……………………………………..
Official Stamp………………….……………………….. Date ………………………………………….
Page | 562

Appendix 4: Sample Leave Application Form
COMPANY LOGO
Directorate of Human Resource Management
APPLICATION FOR LEAVE FORM
TO BE COMPLETED IN TRIPLICATE (Note that all leave days must be applied for within the
leave year. Carrying over, if any, will be based on leave applied for but declined by the
approving authority)
PART 1- TO BE COMPLETED BY APPLICANT

Name of employee………………………………………………Payroll Number …………….………
Designation ..………………………………………..…………..
No. of days applied for………………… Duration from……………….. To…………………..…….
Last leave taken from…………………….……………………… To ………………………….……….
Type of leave applied for [tick] a) Annual b) maternity/paternity
c) incidental d) sick Other Specify

………………………………………………………………………………………….………………………
Leave Address/Phone No(s).…………………………….………………………………..………………
Signature ………………………………………………………… Date……………………………...
____________ ____ _______________ ____________ _________
PART II- RECOMMENDATION BY IMMEDIATE SUPERVISOR

Recommended: Satisfactory arrangement can and will be made for the duties of the above
mentioned employee during his/her leave.
Duties to be performed by; Name……………………………………………… Signature ………………
Not Recommended: For the following reasons ………………………………………….…………
…………….………………………………………………………………………….……………………………
Page | 563

………..…………………………………………………………………………………………………………
Signature……………………………..………… Designation………….……………...…………
Date……..………..…..………..
_______________ __ ______
PART III- LEAVE ASSESSMENT BY HUMAN RESOURCE DEPARTMENT
Leave due as of date of application ………..… Leave applied for……...… Balance …………
Signature …………………………..………… Designation……………………………..…………….

Date……………………….…
PART IV- APPROVAL OF LEAVE
Leave Approved/ Not Approved Signature

……………………..………………
Head of Company/HOD
Date ..………..…………………………………
Page | 564

Appendix 5: Sample Staff Performance Appraisal

Form
COMPANY LOGO
PREAMBLE
1. The Staff Performance Appraisal (SPA) is a component of Performance Management

System in the Government Company and integrates individual employee work planning,
target setting, execution of targets, performance reporting, feedback and appraisal.
2. The overall objective of the SPA is to manage performance of employees
3. This appraisal report will be completed by employees in all sections of the company
(excluding heads of these sections)
4. The staff and the supervisor will set Specific Measurable Achievable Realistic Time
bound (SMART) targets aligned to the Company/Departmental/Section/Unit objectives as
indicated in the annual work plan.
5. The SPA form shall be filled by the staff in consultation with the supervisor at the
beginning of the appraisal year.
6. The staff and the supervisor should read the SPA guidelines prior to embarking on the
actual appraisal.
7. The completed SPA report shall be submitted to the Head of Department for summary
and onward transmission to the Human Resource for company level summary and then to
the Board through the Head of Company.
8. In the event of a dispute the complaining staff will write to the Human Resource
Advisory Committee (HRAC) which will deliberate on the complaint and make a ruling. HRAC
ruling will then be delivered to the staff and the Board.
9. Performance rating scores shall be based on verifiable evidence.
Rating Scale: The following rating shall be used to indicate the level of performance
by an employee
Page | 565

Achievement of Performance Targets Rating Scale

Achievement higher than 110% of the agreed Excellent 110% +
Achievement up to 100% of the agreed performance Very 100%
targets. Good
Achievement between 80% and 99% of the agreed Good 80% - 99%
performance targets.
Achievement between 51% and 79% of the agreed
Fair 51% - 79%
performance targets.
Achievement between 0% and 50% of the agreed 50% and
Poor
performance targets. Below
STAFF PERFORMANCE APPRAISAL TARGETS AND REPORT
Performance Appraisal Period: From ………………………….. To ……….……………..
Section 1: Employment Details
(i) Personal No..................................... Surname………………..…… First

Name………………..……..
(ii) Other Names………………………..
(iii) Designation ...................................Terms of Service ……………………. Pay Grade
…………………
(iv) Department……………………………………… Section ………………………
Unit………………..……
(v) Duty Station ……………………………........
(vi) Supervisor’s Name…………………………………………….

Designation……………………………….
Section 2(a): Individual Performance Targets derived from the Departmental /

Section / Unit / Supervisor’s Work Plan
(A) (B) (C) (D)
Agreed Performance Performance Achieved results Performance
Indicator(s) in line with the Appraisal Score
Targets
performance (See Rating
indicator Scale)
Page | 566

(To be completed by the

(To be completed by the staff in consultation Supervisor in consultation with
with the Supervisor at the beginning of the the staff at the end of the
1
Total appraisal score on performance targets

Mean appraisal score (%)
Section 2(b): To be signed at the beginning of the appraisal period
The Appraisee’s commitment to achieve the agreed individual performance targets.

Name of Appraisee………….………………………………………………………………..……
Signature…………………………….……..
Date ………………………………………....
Supervisor’s Name……………………………….. Signature………..…………………Date

…………………………
Section 2(c): Staff Training and Development Needs

Appraisee’s training and development needs in order of priority as Identified by the
appraisee and supervisor based on performance gaps
1. ……………………………………………………………………………………………………
2. ……………………………………………………………………………………………………
Page | 567

Section 3: Mid-Year Review

Agreed Performance Targets Remarks
Indicator (s)
Performance changed or added (Indicate Level of
Targets Achievement)
1
2
3
4
5
Supervisor’s Name ………………………………………………………………………………
Signature ………………………………..…………….... Date ………....................................

Section 4:
Supervisor’s comments on appraisee’s performance at the end of the year including
any factors that hindered performance (Please indicate if the appraissee requires to
be put on a performance improvement programme. If so, indicate the type)
...............................................................................................................................
...............................................................................................................................
Supervisor’s Name
...............................................................................................................................
Signature……………………………Date …………………………………………………...
Section 5: Appraisee’s comments on his/her performance at the end of the year

including any factors that hindered performance
...............................................................................................................................
...............................................................................................................................
Appraisee’ Name …….…………………………………………….……………………………….
Page | 568

Signature……………………………Date ……………………………………………………...
Section 6: Recommendation of rewards or sanctions to the Board by the Human

Resource Departmental
(i) Reward type (Bonus, Commendation letter etc)....................................................
(ii) Sanction (Warning, Separation, etc.) .................................................................. (iii)

Minute No…………………………Meeting held on ………………………………......
Signed:
Chairperson: Name..................................................………………..........................
Signature ........................………………….… Date: …......................….....................
Secretary: Name...........................................................…………….....……………..…
Signature .........................…………………. Date:……...........................…..…..........
Approved/ Not Approved
………………………………………………………………………………………………………..
………………………………………………………..….……………………………………………
Name ....................................................................................................................
Signature ..............................................................Date: ......................................
Page | 569

Appendix 6: Sample Training Application Form
COMPANY LOGO
Directorate of Human Resource Management
DATE…………………...………
TRAINING APPLICATION FORM
TO BE FILLED IN DUPLICATE
SECTION I: TO BE COMPLETED BY APPLICANT
1. Name: ___________________________________________ Payroll No:
2. Tel: ____________________________ e-mail
3. Section______________________________________ Facility Name:
4. Date of Employment:________________________ Date Confirmed:
Course/Programme applied for:
5. Admission Letter / Course Content Attached: Yes: __________________ No:
6. Duration of Course & Mode of study:
7. Training Institution/ Organization:
8. Institution recognized by Government/ Other bodies (specify):
9. Training Institution Location/ Country:
10. Telephone: ________________________ Email:
11. Cost of Training in RFs. A. Tuition

B. Travel, Accommodation, Etc.:
Total
Page | 570

12. Course Objectives/ Contents

a.
b.
c.
d.
e.
f.
HISTORY OF PREVIOUS TRAININGS ATTENDED WITHIN THE LAST TWO YEARS
Indicate whether funded by the Company/Government/Development Partner or Self-sponsored.
Course/Programme Funded by
1.
2.
3.
4.
5.
Add more sheets if list is longer than 5
SECTION II: TO BE COMPLETED BY SUPERVISOR
Does the course meet identified training needs? Yes___________________ No
Is it possible to re-assign the staff duties to other staff in the section? Yes____________ No
Number of department/section staff taking other trainings at the time that this training is scheduled
Course recommended / Not recommended
Comments if any:
Page | 571

I confirm that other employees in the same cadre and grade have not been unfairly discriminated
against in identification and recommendation for this training.
Signature: _________________________ date: ________________________ Stamp:
SECTION III: TO BE COMPLETED BY DEPARTMENT/COMPANY ACCOUNTANT
Annual departmental training and travel budget is RFs _______________. Available departmental training
and travel budget is RFs. ________________________. In my view this training and travel budget IS/IS
NOT* sufficient for this application.
Signature: __________________ date: _______________________ Stamp:
SECTION IV: TO BE COMPLETED BY HEAD OF DEPARTMENT
I have/have no objection in spending the amount indicated
Signature: ________________________ date: _______________________ Stamp:
SECTION IV: TO BE COMPLETED BY HR TRAINING SECTION.
The employee submitted/did not submit report the last time she/he was trained (if applicable).
Signature: __________________ date: _______________________
SECTION IV: TO BE COMPLETED BY DIRECTOR HRM (SECRETARY, HRAC)
Training Approved / Not approved under minute of

the HR Advisory Committee meeting of
Comments if any:
Signature: _____________________Date: ____________________________ Stamp:
Page | 572

MANDATORY REQUIREMENT:
Staff will be required to prepare a training report within two weeks after the training and submit a
signed copy to the Head of Department/Section and a copy to the Directorate of Human Resource
Management for filing and future reference. Also, a certified copy of the certificate issued, if any, must
be attached to the report.
*A template for report is attached at the end of this application form.
I agree to abide by the above requirements.
SIGNED: ________________________________________ DATE:
BACK TO OFFICE TRAINING REPORT TEMPLATE
Every employee sponsored for training by Count/National Government or development partner is

required to prepare a bound Back-to-Office report within two weeks from date of completion of the
training. The report should be NOT MORE than 20 pages of typed papers (including preliminaries and
appendices).
The report should include the following;
A. Title page
 Company name
 Name of trainee
 Personnel Number
 Department / Section
 Name of training attended
 Training dates
 Training Institution,
 City, and
 Country if international
B. Other pages
 Table of contents
 Introduction
 Course Objectives
Page | 573

 Brief discussion of the training content. Give your thoughts about each topic covered. (do not
attach actual handouts or slides).
 Conclusion
 Recommendations
 Appendix (Pictures taken, certificates, etc.)
The report should be signed by the employee and submitted to the Head of Section/Department and a
copy to Human Resource Directorate for filing.
Page | 574

Appendix 7: Sample letter of Interdiction

following a Criminal Charge
(Letter Head)
To ………………………………….
………………………………………. (Register mail to last known address)
Dear Sir/Madam,
INTERDICTION UPON CRIMINAL CHARGE
It has been reported to this office that you were arrested and charged in a court
of law with the offence of ……………………………………………………. (Set out
particulars).
In view of the foregoing, you are hereby interdicted from exercising the duties of your
office with effect from the date you were charged/date of this letter (whichever is
applicable) pending finalization of your case.
While on interdiction, you will be paid half salary and you should not b e
p r o h i b i t e d f r o m a c c e s s i n g your duty station without the express permission
from your immediate supervisor.
(Signed)
Head of the Company
Copy to: Supervisor
Page | 575

Appendix 8: Sample Letter of Show Cause and

Interdiction following Gross Misconduct
(Letter Head) Date……………
To ……………………………….....
……………………………………......
Thro’ ……………………………......
(Supervisor)
Dear Sir or Madam,
SHOW CAUSE AND INTERDICTION

It has been reported to this office that you …………………………………………
(Set out the particulars of the misconduct together with dates)
To facilitate investigations on the alleged misconduct, it has been decided that you
be and are hereby interdicted from exercising the duties of your office from the date
of this letter pending finalization of your case.
While on interdiction, you will be paid half salary, full house allowance, medical
allowance (if applicable) or where applicable medical insurance premium remitted.
Further, you should not access your duty station without the express permission of
your immediate supervisor.
Yours faithfully
(Signed)
Head of the Company
Page | 576

Appendix 9: Sample Letter Lifting

Interdiction
(Letter head)
To …………………………………….….
……………………………………..…….
Thro’………………………………….….
(Supervisor)
Dear Sir/Madam
LIFTING OF INTERDICTION
Further to our letter Ref. No.…………………… dated …………………(the

interdiction letter) and after due consideration of your case, it has been
decided that the interdiction imposed on you be and is hereby lifted with
effect from………………. (the date of lifting the interdiction). Your salary
withheld during the interdiction shall be released (or as the case may be).
You should acknowledge within one month from the date of this letter that
you have read and understood the contents herein.
Yours faithfully
(Signed)
Head of the Company
Page | 577

Appendix 10: Sample Letter of Suspension
(Letter Head)
To ………………………………......
……………………………..............
Thro’ ………………………..…......
(Supervisor)
Dear Sir or Madam,
SUSPENSION
It has been reported to this office that you were convicted of a serious
criminal offence namely (set out particulars).
Or
Having considered your representations and investigation report on
…………….…. (state alleged offence), your general conduct and work
performance has been found wanting and warrants dismissal on account of
gross misconduct.
Consequently, it has been decided that you be and are hereby suspended from
exercising the duties of your office from the date of this letter pending finalization
of your case. While on suspension, you will not be entitled to any salary but you
will be paid your full house allowance, medical allowance or where applicable
medical insurance premium will be remitted.
Further, while on suspension you should not access your duty station without
the express permission of your immediate supervisor.
Yours faithfully
(Signed)
Head of the Company
Page | 578

Appendix 11: Sample Letter Lifting Suspension
(Letter head)
To ………………………………………….
…………………………………….……..….
Thro’………………………………………..
(Supervisor)
……………………………………………… Dear Sir/Madam,
LIFTING OF SUSPENSION
Further to our letter Ref. No………………dated ……………. (the suspension letter) and
after due consideration of your case it has been decided that, the suspension
imposed on you be and is hereby lifted with effect from………. (the date of the
suspension). Your salary withheld during the interdiction shall be released (or as
the case may be).
However, you are hereby warned that a repeat of the same or similar misconduct
in future may lead to commencement of proceedings for your dismissal from the
service.
In view of this decision, you are required to report to this office on ……… and not
later than
…….(Reasonable time).
You are required to acknowledge within one month from the date of this letter that
you have read and understood the contents herein.
Your faithfully
(Signed)
Head of the Company
Page | 579

Appendix 12: Sample Show Cause Letter
(Letter Head)
To ……………………………......
……………………………..............
Thro’ ……………………………......
(Supervisor)
Dear Sir or Madam,
ABSENCE FROM DUTY WITHOUT REASONABLE CAUSE
It has been reported that you absented yourself from duty on……………………
(State the particulars of the absence including number of days and specific dates)
In view of the above, your dismissal from the service on account of absence
from duty without reasonable cause is contemplated, but before this is done,
you are hereby called upon to show cause why the intended action should not
be taken.
Your representation if any, should reach this office within…………….. (State

reasonable time) from the date of this letter failure to which the
contemplated action will be taken without further reference to you.
Yours faithfully
………………………………………………….
(Signed)
Head of the Company
Page | 580

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REPUBLIC OF RWANDA

MINISTRY OF FINANCE AND ECONOMIC PLANNING

MAIN TABLE OF CONTENT .....................................................................2

GENERAL INTRODUCTION ............................................................. 3

B. Objectives of the Framework ........................................... 4

D. Revision of the Framework .............................................. 5

E. Date of Commencement .................................................. 5

VOLUME 1: FINANCE STANDARD OPERATION PROCEDURE

VOLUME 2: DIVIDEND POLICY ................................................... 178

VOLUME 3: STANDARD OPERATION PROCEDURE FRAME WORK

VOLUME 4: STANDARD OPERATION PROCEDURE FRAMEWORK

The GoR decided to develop the Comprehensive Standard Operation

B. Objectives of the Framework

All Government-controlled Companies shall adhere to the framework set

D. Revision of the Framework

CCAF : Customer Credit Approval Form

CRL : Central Receipt Log

CSOPF : Comprehensive Standard Operation Procedure Framework

EFT : Electronic Funds Transfer

FIFO : First in First out

FSOPF : Finance Standard Operation Procedure Framework

GCC : Government-controlled Companies

GoR : Government of Rwanda

HOF : Head of Finance

HOC : Head of Company

IAS : International Accounting Standards

IASB : International Accounting Standards Board

IFRIC : International Financial Reporting Interpretation Committee

IPSAS : International Public sector Accounting Standard

IFRS : International Financial Reporting Standards

LIFO : Last in First Out

MINECOFIN : Ministry of Finance and Economic Planning

MMRC : Management Material Review Committee

PCAR : Petty Cash Advance Request

PCV : Petty Cash Voucher

RDB : Rwanda Development Board

SIC : Standards Interpretation Committee

SMT : Senior Management Team

1.1 General Definitions

(2) Risk management - A continuing process of identifying, analysing,

(a) Financial risks such as cost of claims and liability judgments;

(b) Operational risks such as labour strikes;

(c) Perimeter risks including weather or political change; and

(d) Strategic risks including management changes or loss of

(3) Internal controls - Methods put in place by a company to ensure that

(4) Procedure - A fixed, step-by-step sequence of activities or course of

(5) Third line of defence - Is comprised of independent assurance

(10) Budget reallocation - Is the Reclassification within the same cost

(3) This Finance Standard Operation Procedure Framework (FSOPF) is

(a) Best practice procedures, and

(b) Key controls required to mitigate the identified risks.

(4) This FSOPF recognises the fact that Government-controlled Companies

1.3 Format of the Policies

(1) Policy objectives/purpose- This explains what each policy aims to

(3) Key documents involved - These refer to important documents that

(5) Individual procedures and associated responsibility areas/roles - The

(7) Specimen forms and formats which may be provided as appendices - In

1.4 Impact of Industry on Accounting Policy Choice

5. RwandAir Ltd Aviation IAS 18, IFRS 15

King Faisal Hospital

7. Prime Holdings Sarl Investment IAS 36

8. Rutongo Mines Mining IFRS 6

Rwanda Grains and

10 Ngali Holdings Investment IFRS 13