འབྲུག་ནུས་ཤུགས་ཚད་འཛིན

DRUK HYDRO ENERGY LIMITED

(An Undertaking of Druk Green Power Corporation Ltd)

BIDDING DOCUMENT

FOR

HIRING OF VEHICLES FOR VARIOUS LOCATIONS

OF THE PROJECTS

Bid Ref No. DHyE/CO/CPD/08/No0068

Date: 25th January 2023
 TABLE OF CONTENTS

SECTION I – INSTRUCTION TO BIDDERS 3

ITB. 1. Definitions 3
ITB. 2. Scope 3
ITB. 3. Eligibility Criteria 4
ITB. 4. Fraud and Corruption 4
ITB. 5. Eligibility of Bidders 5
ITB. 6. Responsibility of Bidders 5
ITB. 7. Bidding Documents 5
ITB. 8. Clarifications on Bidding Documents 6
ITB. 9. Amendment of Bidding Documents 6
ITB. 10. Cost of Bidding 6
ITB. 11. Language of the Bid 6
ITB. 12. Documents Constituting the Bid 6
ITB. 13. Bid Prices 6
ITB. 14. Currencies of Bid 7
ITB. 15. Period of Validity of Bids 7
ITB. 16. Bid Security 7
ITB. 17. Submission of Bids 7
ITB. 18. Deadline for Submission of Bids 8
ITB. 19. Late Bids 8
ITB. 20. Withdrawal, Substitution or Modification of Bids 8
ITB. 21. Bid Opening 8
ITB. 22. Confidentiality 9
ITB. 23. Clarification of Bids 9
ITB. 24. Evaluation 9
ITB. 25. Comparison of Bids 10
ITB. 26. DHyE’s Right 10
ITB. 27. Letter of Award 10
ITB. 28. Signing of Lease Agreement 11
ITB. 29. Security Deposit 11
SECTION II –LEASE AGREEMENT 12
Annexure-I: Integrity Pact Statement 16
Annexure-II: Price Schedule 18

Bidding Document for Hiring of Vehicle Page 2 of 18

 SECTION I – INSTRUCTION TO BIDDERS
ITB. 1. Definitions
ITB.1.1. The following words and expressions shall have the meaning hereby assigned to them except where
the context otherwise requires.
a) “Bid” means an offer submitted by the Bidder to DHyE in accordance with the terms and
conditions set out in the Bidding Documents inviting such offers. The term “Tender” is
synonymous with the term “Bid”;
b) “Bidder” means an eligible legal entity that participates in a competitive bidding process
governed by the Bidding Documents; the terms “Bidder” and “Tenderer” are synonymous;
c) “Bidding Documents” means the set of documents sold or issued by DHyE to potential
Bidders in which the specifications, terms and conditions of the proposed procurement are
prescribed. The terms “Bidding Documents”, “Tender Documents” and “Bid Documents” are
synonymous;
d) “Day” means calendar day of the Gregorian calendar. However, "Working Day" as used herein
means all calendar days excluding Sundays and Government holidays in the Kingdom of
Bhutan;
e) “DHyE” means Druk Hydro Energy Limited;
f) “Effective Date” means the date of Letter of Award, or any other date as specified in the
Lease Agreement, from which the Time for Completion shall be determined;
g) “ITB” means Instructions to Bidders;
h) “NIT” means Notice Inviting Tender;
i) “Lessee” shall be Druk Hydro Energy Limited (DHyE);
j) “Lease Agreement” means formal agreement(s) in writing entered into simultaneously
between DHyE and the Lessor on mutually agreed terms and conditions including the Contract
Documents referred therein and amendments thereto pursuant to the Letter of Award issued
by DHyE and accepted by the Lessor;
k) “Lessor” means the owner of the Vehicle(s) under lease, whose Bid has been accepted by
DHyE and includes the legal successors or permitted assigns of the Lessor;
l) “Letter of Award” (LoA) means the letter issued by DHyE conveying the acceptance of the
Bid of the successful Bidder subject to such terms and conditions as may have been stated
therein;
m) “Month” means calendar month of the Gregorian Calendar;
n) “Party” means the DHyE or the Lessor, as the context requires, and “Parties” means both of
them;
o) “Hire Charge” means the agreed monthly hire charges payable to the Lessor as specified in
the Contract, subject to such additions and adjustments thereto or deductions there from as
may be made pursuant to the provisions of the Contract;
ITB. 2. Scope

ITB.2.1. DHyE (Druk Hydro Energy Limited), hereafter referred to as the “Employer” intends to hire the
following private vehicles for carrying out duties of its officials in the implementation of small hydro
projects for an initial period of 2 (two) years and on renewable basis, subject to DHyE’s
requirement.

These vehicles are primarily to be stationed at:

 DHyE HQ, Jigmeling,

 Burgangchhu Hydropower Project located in Nangkor Gewog, Zhemgang Dzongkhag;
 Suchhu Hydropower Project at Sangbaykha Gewog, Haa Dzongkhag and
 Yungichhu Hydropower Project located at Maedthso Gewog, Lhuentse Dzongkhag.

Bidding Document for Hiring of Vehicle Page 3 of 18

 The details of requirement of the vehicles are as follows:

Location/Project Isuzu Mahindra Mahindra Bolero Total

DMax Scorpio (4WD) Camper (4WD)
Head Office, Jigmenling 1 2 3
Burgangchhu HPP, Zhemgang 4 4
Suchhu HPP, Haa 4 4
Yungichhu HPP, Lhuentse 2 5 7
Total 1 4 13 18

ITB. 3. Eligibility Criteria

ITB.3.1. The bidder/vehicle should meet the following minimum eligibility criteria for vehicle to be
eligible for hire:

1. The Bidder shall be a Bhutanese National holding valid Citizenship Identity Card. Registration
of the vehicle shall be in the name of Bidder only; sale deed or transfer of ownership
agreement/authorization etc. shall not be considered.

2. The Vehicle should have a valid registration and insurance policy;

3. The vehicle shall meet the following minimum criteria to be considered for the bid evaluation
as detailed hereunder;

a) The vehicle should be the type and make as specified above at ITB 2;
b) Only vehicles with the initial registration number on or after 1st of January 2018 shall be
considered. The vehicle may cease to be in service of DHyE on completion of 7 years life
to be reckoned from the initial registration date.

4. The vehicle shall be well maintained and in good running & mechanical condition. DHyE will
inspect the condition of the vehicle before the issuance of LoA.
ITB. 4. Fraud and Corruption

ITB.4.1. DHyE requires that the Bidders and their respective employees shall observe the highest standards
of ethics during the bidding process and execution of contracts. In pursuance of this policy, the
terms “Corrupt practice”, “Fraudulent practice”, “Collusive practice”, “Coercive practice” and
“Obstructive practice” shall be as per definition.

ITB.4.2. DHyE will reject a Bid 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;

ITB.4.3. DHyE will declare the Bidder ineligible, either indefinitely or for a stated period of time for award
of any Contract, if at any time it determines that the Bidder has, directly or through an agent,
engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for, or in
executing, a Contract;

ITB.4.4. DHyE requires that Bidders, as a condition of admission to eligibility, execute and attach to their
Bids an Integrity Pact Statement as per Format attached at Annexure-I. Failure to provide a duly
executed Integrity Pact Statement may result in rejection of the Bid; and

ITB.4.5. DHyE will report any case of corrupt, fraudulent, collusive, coercive or obstructive practice to the
relevant agencies, including but not limited to the Anti-corruption Commission (ACC) of the
Kingdom of Bhutan, for necessary action in accordance with the statutes and provisions of the
relevant agency.

Bidding Document for Hiring of Vehicle Page 4 of 18

ITB.4.6. DHyE shall have the discretion to take any or all of the actions specified under ITB.4.2, ITB.4.3,
ITB.4.4 and ITB.4.5.

ITB. 5. Eligibility of Bidders

ITB.5.1. A Bidder shall not have conflict of interest. Any Bidder found to have a conflict of interest shall be
disqualified. Bidders may be considered to have a conflict of interest with one or more parties in
the same bidding process if they have a relationship with each other, directly or through common
third parties, that puts them in a position to have access to information about or influence on the
Bid of another Bidder, or influence the decisions of DHyE regarding this bidding process.

ITB. 6. Responsibility of Bidders

ITB.6.1. DHyE strongly encourages the Bidders to visit the respective project sites to assess the
terrain and conditions of the roads. Having participated in this bidding process, Bidders
are deemed to have complete knowledge about the site conditions with respect to the
terrain and conditions of roads and the weather conditions of all seasons.

ITB.6.2. DHyE will not assume any responsibility regarding information gathered, interpretations or
conclusions made by the Bidder or regarding information, interpretations or deductions the Bidder
may derive from the data or any report furnished by DHyE. Verbal communication or conversation
with any officer, employee of DHyE either before or after the submission of Bid shall not affect or
modify any of the terms or obligations contained herein.

ITB.6.3. It shall be the sole responsibility of Bidders to determine and to satisfy themselves by such means
as they consider necessary or desirable as to all matters pertaining to this bidding process including
in particular all factors that may affect the performance of the Contract in the event of award.

ITB. 7. Bidding Documents

ITB.7.1. The set of Bidding Documents issued for the purpose of bidding includes the sections stated below
together with any addendum/amendment to be issued.
i. Section I : Instruction to Bidders
ii. Section II : Lease Agreement
Annexure I- Integrity Pact Statement
Annexure II- Price Schedule

ITB.7.2. DHyE is not responsible for the completeness of the Bidding Documents and their addenda, if any,
if these were not obtained directly from DHyE. Bidders shall contact the following official of DHyE
for registration and request for documents, before the deadline for submission of Bid, its intention
to submit the Bid on the basis of the requested documents:

Head,
Contracts and Procurement Division,
Druk Hydro Energy Limited,
Dekiling Geog, Jigmmeling,
Contact No: 17254277

ITB.7.3. The Bidder is expected to examine all instructions, terms and conditions, and other information in
the Bidding Documents and shall be deemed to have carefully examined the Bidding Documents
and also to have satisfied himself as to the nature, character and scope. Failure to furnish all
information and documents required as per the Bidding Documents or submission of a Bid not
substantially responsive to the Bidding Documents in every respect will be at the Bidder’s risk and
may result in rejection of his Bid.

Bidding Document for Hiring of Vehicle Page 5 of 18

ITB. 8. Clarifications on Bidding Documents

ITB.8.1. The Bidder shall examine the Bidding Documents thoroughly in all respects and if any conflict,
discrepancy, error or omission is observed, Bidder may request for clarifications if any on or before
6th February 2023 which shall be replied promptly within two days in writing and also be sent to
all prospective Bidders who have downloaded the Bidding Documents. For the information of
Bidders, the clarifications shall also be emailed to the bidder.

ITB. 9. Amendment of Bidding Documents

ITB.9.1. At any time after the NIT issue date, but not later than Seven (7) days prior to the deadline for
submission of Bids, DHyE may amend the Bidding Documents by issuing an amendment
(addendum/corrigendum). This may be done either on DHyE’s own initiative or in response to
clarification requests from any prospective Bidder who have obtained the Bid Documents from
DHyE.

ITB. 10. Cost of Bidding

ITB.10.1. The Bidder shall bear all costs, direct or indirect associated with the preparation and submission of
his Bid and DHyE in no case shall be responsible or liable for these costs, regardless of the conduct
or outcome of the bidding process.

ITB. 11. Language of the Bid

ITB.11.1. The Bid, and all correspondence and documents related to the Bid shall be in English.

ITB. 12. Documents Constituting the Bid

ITB.12.1. The Bid to be prepared and submitted by the Bidder shall consist of the following documents:

a. Bid Security as per ITB 16. Bids not accompanied by the requisite Bid Security or Bids
accompanied by Bid Security of inadequate value, shall be treated as a non-responsive bid;

b. Signed Integrity Pact Statement as per format at Annexure-I at Section-IV; and

c. The Bidders should submit a copy of the:

i) Owner’s Registration Certificate of the vehicle,

ii) Valid Fitness & Emission Test Certificate; and
iii) Valid Insurance Certificate

Non-submission of this documents will lead to bid being treated as a non-responsive bid and
the bid shall be rejected.

ITB. 13. Bid Prices

ITB.13.1. The Bidders shall quote the rate and the details of the Vehicle offered for lease as per Price
Schedule at Annexure-II.

The bidders shall be required to quote only the Lump Sum Hiring Charges per month for the
vehicle. For 1 (one) vehicle, the Bidder are allowed to quote for only one location at her/his own
option depending on her/his own assessment as per the Price Schedule.

The Bidders should note that the charges for the hired vehicle (successful bidder) shall be the Lump
Sum Hiring Charges plus the cost of 1 litre of Diesel for every 8.5 Kilometre run.

ITB.13.2. The Bid Prices shall be inclusive of all taxes payable. 5% TDS as applicable shall be deducted from
the total monthly hire charges.

Bidding Document for Hiring of Vehicle Page 6 of 18

ITB. 14. Currencies of Bid

ITB.14.1. The unit rates and prices shall be quoted by the Bidder in Ngultrum (Nu.) only.

ITB. 15. Period of Validity of Bids

ITB.15.1. Bids shall remain valid up to 25th March 2023.

ITB. 16. Bid Security

ITB.16.1. The Bidder shall furnish, as part of its Bid, a Bid Security for an amount Nu. 5,000.00 (Ngultrum
Five Thousand) only, in form of Demand Draft/Cash Warrant or Bank Guarantee issued by any
financial institutes of Bhutan. The Bid Security should be in favour of Druk Hydro Energy
Limited. The Bid Security should be valid up to 25th April 2023.

ITB.16.2. Any Bid not accompanied by an adequate Bid Security shall be rejected by the Employer as non-
responsive;

ITB.16.3. The Bid Securities of unsuccessful Bidders shall be discharged/returned as promptly as possible
upon award of contract, but in any event not later than thirty (30) days after the expiry of the period
of bid validity;

ITB.16.4. The Bid Security of the successful Bidder shall be returned as promptly as possible after the
successful Bidder has signed the Contract and furnished the required Performance Security; and

ITB.16.5. The Bid Security shall be forfeited:

a) if a the particular Bidder who is determined to be the lowest evaluated bidder withdraws its Bid
during the period of Bid validity or
b) if the Bidder adopts corrupt or collusive or coercive or fraudulent practices covered under ITB
Clause 4[Fraud or Corruption] or defaults committed under Integrity Pact. Or
c) in the case of a successful Bidder, if he fails, within the specified time limit to:
i) sign the Contract Agreement
ii) deposit the Security Deposit or disagree for deduction of Security amount from the
first bill.

ITB. 17. Submission of Bids

ITB.17.1. Bids shall be delivered by hand, courier or registered post so as to reach DHyE at the address
specified below:

Head,
Contracts and Procurement Division, CO;
Druk Hydro Energy Limited,
Jigmeling, Dekiling Geog,
Sarpang.

Bidders, as an option, can also submit the Bids through electronic media to the email address
contracts_procurement@dhye.bt in pdf format with a password protection. The password shall be
submitted separately to the same email half an hour before the bid opening deadline.

ITB.17.2. Bids are to be submitted in a single closed cover envelope with superscription of the NIT reference
number and shall be sealed with adhesive or other sealant to prevent reopening and be signed across
their seals by the person authorized to sign the Bid on behalf of the Bidder.

ITB.17.3. If the envelope is not properly sealed and marked as above, DHyE shall assume no responsibility
for the misplacement or premature Opening of the Bids.

Bidding Document for Hiring of Vehicle Page 7 of 18

ITB. 18. Deadline for Submission of Bids

ITB.18.1. Bids must be received by DHyE on or before 15th February 2023 up to 1430 Hours.

ITB.18.2. DHyE may, at its discretion, extend the deadline for the submission/opening of Bids by issuing an
addendum and hosting the same on the website, in which case all rights and obligations of DHyE
and the Bidders previously subject to the original deadline shall thereafter be subject to the deadline
as extended.

ITB.18.3. In the event, the deadline for submission of Bid is extended by DHyE, the Bidders who have already
submitted their Bids within the original deadline of submission shall have the option to submit their
revised Bid in substitution either in full or in part of earlier Bid. In the absence of a revised Bid, the
original Bid shall be considered for opening and subsequent evaluation if otherwise in order.
Wherever, the Bidder has submitted the revised Bid in modification of earlier Bid, the earlier Bid
shall be returned unopened to the Bidder.

ITB. 19. Late Bids

ITB.19.1. Any Bid received by DHyE after the Bid submission deadline will be declared late, rejected and
returned unopened to the Bidder.

ITB. 20. Withdrawal, Substitution or Modification of Bids

ITB.20.1. A Bidder may withdraw, substitute or modify its Bid after it has been submitted by sending a written
withdrawal/ substitution/ modification notice prior to the deadline for submission of Bids, duly
signed by an authorized representative. The Bid requested to be withdrawn shall be returned
unopened to the Bidder.

ITB.20.2. No Bid may be withdrawn, substituted or modified in the interval between the deadline for
submission of Bids and the expiry of the period of Bid validity.

ITB.20.3. Withdrawal, substitution or modification of a Bid between the deadline for submission of Bids and
expiration of the period of Bid validity (or any extension thereto) shall result in the forfeiture of the
Bid Security.

ITB. 21. Bid Opening

ITB.21.1. DHyE will conduct the Bid Opening in the Conference Hall, CO, DHyE, Jigmeling at 1500
Hours on 15th February 2023.

ITB.21.2. Bidders or their authorized representatives who have submitted the Bids shall be allowed to attend
the Bid Opening. Bidders who chose to attend shall sign the attendance sheet provided in the record
of Bid opening with their name, designation, firm name and phone number or any other particulars
as may be required. Bidders who chose to attend the opening shall not be allowed to speak on
matters related to the Bid until and unless required by the Committee Members or by seeking
permission from the Chairperson by raising hand. Bidders who have any complain with regard to
the Bid opening shall write in the complaint sheet and duly sign the sheet.

ITB.21.3. The written withdrawal notice duly signed by an authorized representative of the Bidder for
withdrawal of Bids, if any, shall be opened first and read out and such Bids shall be returned to the
Bidder unopened.

ITB.21.4. Cover envelopes of all other Bids shall be opened one at a time. Bids not accompanied by
requisite/invalid Bid Security and signed Integrity Pact Statement will be rejected and returned to
the Bidder.

ITB.21.5. The following information shall be publicly announced during the Bid opening for the Bidders to
note:

Bidding Document for Hiring of Vehicle Page 8 of 18

 a. The name of the Bidder;
b. The presence or absence of Bid Security and its amount;
c. The total rates/prices offered;
d. Discounts offered, if any;
e. Such other details as DHyE may consider appropriate.

ITB.21.6. DHyE shall prepare a record of the Bid Opening, which shall include the information disclosed to
those present. The record of the Bid Opening shall include, as a minimum:

a. the NIT title and reference number;

b. the Bid submission deadline and time and place of Bid opening;
c. Bid prices/rates, offered by the Bidders, including any discounts offers;
d. the presence or absence of Bid Security and, if present, its amount;
e. the name of each Bidder;
f. the names and signature of attendees at the Bid Opening, and name of the Bidders they
represent (if any);
g. details of any complaints or other comments made by attendees/ representatives attending
the Bid opening, including the names and signatures of the attendees/representatives making
the complaint(s) and/or comment(s); and
h. the names, designations and signatures of the members of the Bid Opening Committee.

ITB.21.7. The Bidder’s representatives who are present shall be requested to sign the record. The omission
of a Bidder’s representative’s signature on the record shall not invalidate the contents and effect of
the record.

ITB. 22. Confidentiality

ITB.22.1. Except as may be required by law, information relating to the examination, clarification, evaluation,
comparison and qualification of Bids, and recommendation of Contract Award, or any other matter
concerning the Bid shall not be disclosed to Bidders or any other persons not officially concerned
with such process after the public opening of the Bids until issuance of the Letter of Acceptance.

ITB.22.2. Subject to above, no Bidder shall contact DHyE on any matter related to its Bid from the time of
the opening of the Bid to the time the Contract is awarded. Any attempt by a Bidder to influence
DHyE in the examination, evaluation, comparison and qualification of the Bids or Contract award
decisions may result in the rejection of its Bid.

ITB.22.3. All documents, correspondence, decisions, and other matters concerning the Contract shall be
considered of confidential and restricted nature by the Bidder and he shall not divulge or allow
access thereto by any unauthorised persons.

ITB. 23. Clarification of Bids

ITB.23.1. To assist in the examination, evaluation, comparison, and qualification of the Bids, DHyE may, at
its discretion, ask any Bidder for a clarification on its Bid including justification. Any clarification
submitted by a Bidder that is not in response to a request by DHyE shall not be considered.

ITB.23.2. 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 DHyE in the evaluation of the Bids. If a
Bidder does not provide clarifications of its Bid within the timeline notified by DHyE’s request for
clarification, its Bid may be considered as non-responsive and shall be rejected accordingly.

ITB. 24. Evaluation

ITB.24.1. DHyE shall examine the Bid to confirm that the bid is substantially responsive and all terms and
conditions specified in the Bidding Documents have been accepted by the Bidder without any
material deviation, reservation, conditionality or omission. DHyE's determination of a Bid’s
responsiveness shall be based on the contents of the Bid itself without recourse to extrinsic
evidence.

Bidding Document for Hiring of Vehicle Page 9 of 18

ITB.24.2. If a Bid is not substantially responsive to the requirements of the Bidding Documents, it shall be
rejected by DHyE and the same may not subsequently be made responsive by the Bidder by
correction of the material deviation, reservation, conditionality, or omission.

ITB.24.3. DHyE may request that the Bidder submit the necessary information or documentation, within a
reasonable period, to rectify non-material deviations 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 the Bid.

ITB. 25. Comparison of Bids

ITB.25.1. DHyE shall examine whether the Bidder/vehicle meets the minimum eligibility criteria as per ITB-
3 before further examination of the financial aspects of the Bids. The Bids which meets the
minimum eligibility criteria shall be considered for further evaluation of the financial bids.

ITB.25.2. For each location (Corporate Office at Jigmeling, Burgangchhu HPP at Zhemgang, Suchhu HPP
at Ha and Yungichhu HPP at Lhuentshe) the vehicles shall be listed in serial numbers starting from
the newest vehicle and then in descending order.

ITB.25.3. The selection of the vehicle shall be based on the Lump Sum monthly hire charges quoted by the
bidder for each of the location. The vehicle against which the quoted lump sum amount is lowest
provided which has been determined to be substantially responsive and which meets all the specified
requirements shall be selected for hire.

ITB.25.4. For locations where the requirement of the particular type of vehicle is more than one, the choice
shall be offered to next listed vehicle as per the initial registration date to match with the lowest
quoted monthly hire charges. If he/she agrees to the rates then the particular vehicle shall be hired.
If not the next in line shall be offered the same choice.

ITB.25.5. If two or more bidders have quoted or offered same rates, then the preference will be given to the
bidder(s) who has offered a newer model vehicle. In case the model of the vehicle is also same, then
the vehicle with less kM run at the time of Bid Submission shall be given the choice.

ITB.25.6. The listed serial of vehicles shall be maintained for future requirement, if any. The owners shall be
contacted if there are future requirement for particular type of vehicle.

ITB. 26. DHyE’s Right

ITB.26.1. DHyE reserves the right to accept or reject any Bid, and to annul the whole bidding process and
reject all Bids at any time prior to contract award, without thereby incurring any liability to Bidders
or any obligation to inform the affected Bidders of the grounds for such action of the DHyE.

ITB.26.2. DHyE is not bound to accept the lowest quoted rate. The evaluation criteria will also include the
condition and types or options of the vehicle, driver’s experience, etc. in addition to the minimum
requirements as specified in ITB 2.2. A detailed physical inspection of the vehicle will be carried
out by DHyE to verify the fulfillment of the above requirements.

ITB. 27. Letter of Award

ITB.27.1. Prior to the expiry of the period of Bid validity, DHyE will notify the successful Bidder by a Letter
of Award (LoA) in writing that its Bid has been accepted and indicating the rates for the lease.

ITB.27.2. Until a formal Lease Agreement is prepared and executed, the Letter of Award shall constitute a
binding Contract between DHyE and the successful Bidder.

Bidding Document for Hiring of Vehicle Page 10 of 18

ITB. 28. Signing of Lease Agreement

ITB.28.1. Within 15 (fifteen) days of the issue of LoA, the successful Bidder shall report to DHyE for the
signing of the Lease Agreement as per the terms and conditions at Section-II.

ITB. 29. Security Deposit

ITB.29.1. The vehicle owner of the hired vehicle shall deposit a sum of Nu. 10,000.00 (Ngultrum Ten
Thousand) only as a security deposit.

Bidding Document for Hiring of Vehicle Page 11 of 18

 SECTION II –LEASE AGREEMENT

LEASE AGREEMENT

This LEASE AGREEMENT is made on ........................ between Druk Hydro energy Ltd (DHyE), here-
in-after called the “LESSOR”, which expression shall include his heirs, successors, legal representatives and
assignees on the First Part, and Mr.....................................(Owner of the Vehicle) herein-in-after called the
“LESSEE” on the other part.
Whereas the LESSOR is desirous to hire Vehicle bearing Registration No. BP-.........(Vehicle Type) owned by
the LESSEE (Name............); for a fixed monthly hire charges of Nu............ (Nu. In words) only. Whereas the
LESSOR is willing to hire the above-mentioned vehicle to DHyE.
THIS DEED THEREFORE WITNESSED AS UNDER:
1. RENTAL
The vehicle is hereby leased at a monthly rate as under:
SN Description Amount (Nu)
1 Hire charges with driver per month Nu. ……………………..
2 Reimbursement towards fuel consumption Nu……..Equivalent to Cost of 1
(one) litre of Diesel for every 8.5
kM run.
3 Night halt charges for driver per night outside the Project Nu. 500.00
area.
The rental for the vehicle shall be for the period of the contract and no price escalation shall be payable
separately for whatever reason and conditions thereof.
2. DURATION
The agreement shall endure for a period of two years commencing on ……….DAY,
…………MONTH…………YEAR and shall then expire unless renewed by the mutual agreement of the
Parties. The Lessee shall have the right to extend up to a period not exceeding one year on the same terms
and conditions or not to extend the duration of the contract.
3. TERMS OF PAYMENT
The monthly payment for rental of vehicle shall be as specified under Clause 1 of this agreement. The
monthly bill shall comprise of lump sum hire charges, fuel, and night halt charges for the driver. The Lessor
shall ensure that night halt charges are paid to the driver to compensate for the expenses he had incurred
while on tour outside the project area.
The Lessee shall make the monthly payment after deduction of statutory levies, directly to the account of
the owner within 15 days after submission of bills duly verified by the Project Director/Engineer-In-
Charge/Fleet In-charge. For this purpose, the Lessor shall submit bank account and contact details at the
time of signing the agreement.
4. SECURITY DEPOSIT
The Lessor shall deposit a sum of Nu. 10,000.00 as the security deposit at the time of signing the agreement
or it shall be deducted from the first monthly bill of the vehicle. The security deposit shall be forfeited in
case the Lessor fails to comply with the terms and conditions of this agreement. The security deposit shall
be refunded within one month after the vehicle has been released by Lessee upon successful completion
of the contract duration or prior to the expiry of the contract duration as per the stipulations of this
agreement.

Bidding Document for Hiring of Vehicle Page 12 of 18

5. INSURANCE, TAXES, AND DUTIES
The Lessor shall maintain proper insurance of the vehicle, preferably comprehensive insurance and shall
comply with all the statutory requirements for plying the vehicle on hire basis on roads as per the rules of
Kingdom of Bhutan. The insurance premium, annual renewable fee, vehicle fitness & emission charge and
any other fees shall be borne by the Lessor.
6. OPERATION, MAINTENANCE & REPAIR
6.1 Operation
The vehicle shall be at the disposal of Lessee at any location within Bhutan for the entire contract period.
The vehicle shall be on duty of the Lessee on 24 hours basis even on public holidays including Sundays,
depending on the urgency of works. The vehicle shall be able to ply in all routes in Bhutan and the
adjoining states of India.

6.2 Routine Maintenance

The Lessor shall be responsible for all types of repairs and maintenance including replacement of parts,
lubricants/coolants/grease/tyres/tubes, new fitting, and spare parts etc.

The Lessor may avail two days of rest in a month with prior approval of the Project Director/Engineer-
InCharge/Fleet In-charge. These rest days shall be used only for routine maintenance of the vehicle. The
journeys performed for maintenance shall be at the cost of the Lessor.

The speedometer of the vehicle will be jointly sealed by the parties at the time of signing the agreement.
No vehicle without working speedometer shall be acceptable. In the specific cases of speedometer break
down, the permission for running the vehicle shall be obtained from the Project Director/Engineer-In-
Charge/Fleet In-charge.

6.3 Breakdown & Repair

The Lessor shall make arrangement to provide a substitute vehicle of an equivalent category within 24
hours in case the leased vehicle undergoes major repair or remain in off-road condition. Failure to provide
a substitute vehicle shall result in the levy of a penalty to the tune of Nu. 1,000.00 per day. The recovery
to this effect shall be made from the running bill of the vehicle. The hire charges for the absence period
shall not be payable. In case the Lessor fails to provide a substitute vehicle within 5 days, the contract
agreement shall be terminated automatically.

6.4 Accidents & Repair

Accidents are to be reported to the Police within 24 hours if damage has occurred or a person has been
injured. In the case of an accident, all claims, repairs etc. shall be made by the Lessor without any liability
on the Lessee.

7. DRIVER
The Lessor shall provide a driver holding valid driving vehicle license and having at least three years
experience of driving. Any changes of the driver by the Lessor shall be intimated to the Lessee in writing.
The payment of salary and other perks for the driver shall be the responsibility of the Lessor. The Lessee
shall not provide any accommodation whether temporary or permanent or pay any house rent to the driver.
The driver shall have a mobile phone with local number for better coordination with representatives of the
Lessee. The expenditure on this account shall be borne by the Lessor or the driver himself. Any
fine/penalty, if imposed due to default on the part of the driver shall be paid by the Lessor.
It is the duty and responsibility of the driver to keep daily records of the movement and mileage coverage
of the vehicle and get it properly signed by the officer using the vehicle. The officer using the vehicle shall

Bidding Document for Hiring of Vehicle Page 13 of 18

 note the initial odometer reading of the vehicle each morning and close the logbook at the end of the day.
Any mileage covered for personal use by the driver or the owner of the vehicle shall be treated as private
and no payment shall be made for this.
The vehicle shall be kept under the care of the driver. The vehicle shall be parked on the premises of the
DHyE office after duty hours. The drivers shall not misuse the vehicle by traveling to any other location
and for any other purposes without instruction failing which the contract is liable for penalty/termination.
8. THIRD-PARTY LIABILITIES
The Lessor shall be responsible for compensation payable arising out of an accident or payment to a third
party if involved. No compensation, whatsoever for damage to the vehicle, death or injury to the driver, or
any other account will be made by the Lessee caused by accident/damage to the vehicle. In case, loss to
the property of Lessee is caused due to the negligence on the part of the driver of the vehicle, such losses
shall be compensated by the Lessor.
9. TERMINATION OF THE AGREEMENT
The Lessee shall have the right to terminate this agreement in the event of the occurrence of the following
upon giving the Lessor 15 days notice in writing:
(i) Misbehaviour by the Lessor with employees of Lessee. In case of misbehaviour by the driver, the
Lessor shall be informed to replace and non-compliance to this within 5 days shall lead to
termination of the contract;
(ii) In case the Lessor fails to provide a substitute vehicle within 5 days, the contract agreement shall
be terminated automatically;
(iii) Disobedience/refusal to perform duties at any time;
(iv) Vehicle is not maintained properly;
(v) Breach of any contract clause;
(vi) Any breach of the Law of the Kingdom of Bhutan involving the criminal case, illegal activities,
etc.; agreement shall be terminated within a day;
(vii) In the event of the vehicle had crossed the 7th year reckoned from the date of registration of the
vehicle, the contract agreement shall be terminated automatically.
(viii) In case the Lessor fails to return the hired vehicle so substituted to resume duty reckoned from
the day of providing a substitute vehicle within 30 days, the contract agreement shall be liable to
be terminated. The Lessee shall have the option to terminate this agreement without assigning any
reason upon serving 15 days’ notice in writing to Lessor.
10. GOVERNING LAW
This agreement shall in all respects be governed and construed in accordance with the Laws of the
Kingdom of Bhutan.
11. RESOLUTION OF DISPUTES
Any dispute arising between the Parties shall be determined by a court of competent jurisdiction in Bhutan
and may upon agreement between the Parties be submitted for arbitration.

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed in accordance with
their respective laws the day and year first above written.

Affix Legal Affix Legal

Stamp Stamp

Bidding Document for Hiring of Vehicle Page 14 of 18

Sign for & on behalf of DHyE Signed by Vehicle Owner/Representative

Name:…………………….. Name:………………………………………
CID No……………………. CID No…………………………………….

Lessee’s witness Lessor’s witness

Signature of Lessee’s Witness

Signature of Lessor’s witness
Name:………………………………… Name:………………………………..

CID No………………………………... CID No……………………………….

Bidding Document for Hiring of Vehicle Page 15 of 18

 Annexure-I: Integrity Pact Statement
1. General:
Whereas, Head (Contracts), representing the Druk Hydro Energy Ltd (DHyE), hereinafter referred to as
the “Employer” on one part, and _________________________________________ (Name of bidder or
his/her authorized representative, with power of attorney) representing
____________________________________________ (Name of firm), hereinafter referred to as the
“Bidder” on the other part hereby execute this agreement as follows:
This agreement shall be a part of the standard bidding document, which shall be signed by both the parties at
the time of purchase of bidding documents and submitted along with the tender document. This IP is
applicable only to “large” scale works, goods and services, the threshold of which will be announced by the
government from time to time. The signing of the IP shall not apply to framework contracting such as annual
office supplies etc.
2. Objectives:
Whereas, the Employer and the Bidder agree to enter into this agreement, hereinafter referred to as IP, to
avoid all forms of corruption or deceptive practice by following a system that is fair, transparent and free from
any influence/unprejudiced dealings in the bidding process and contract administration, with a view to:
2.1 Enabling the Employer to obtain the desired contract at a reasonable and competitive price in conformity
to the defined specifications of the works or goods or services; and
2.2 Enabling bidders to abstain from bribing or any corrupt practice in order to secure the contract by
providing assurance to them that their competitors will also refrain from bribing and other corrupt
practices.
3. Scope:
The validity of this IP shall cover the bidding process and contract administration period.
4. Commitments of the Employer:
The Employer Commits itself to the following:
4.1 The Employer hereby undertakes that no officials of the Employer, connected directly or indirectly with
the contract, will demand, take a promise for or accept, directly or through intermediaries, any bribe,
consideration, gift, reward, favour, or any material or immaterial benefit or any other advantage from the
Bidder, either for themselves or for any person, organization or third party related to the contract in
exchange for an advantage in the bidding process and contract administration.
4.2 The Employer further confirms that its officials shall not favour any prospective bidder in any form that
could afford an undue advantage to that particular bidder in the bidding process and contract
administration and will treat all Bidders alike.
4.3 Officials of the Employer, who may have observed or noticed or have reasonable suspicion shall report
to the head of the employing agency or an appropriate government office any violation or attempted
violation of clauses 4.1 and 4.2.
4.4 Following report on violation of clauses 4.1 and 4.2 by the official(s), through any source, necessary
disciplinary proceedings, or any other action as deemed fit, including criminal proceedings shall be
initiated by the Employer and such a person shall be debarred from further dealings related to the bidding
process and contract administration.
5. Commitments of Bidders
The Bidder commits himself/herself to take all measures necessary to prevent corrupt practices, unfair means,
and illegal activities during any stage of the bidding process and contract administration in order to secure the
contract or in furtherance to secure it and in particular commits himself/herself to the following: -
5.1 The Bidder shall not offer, directly or through intermediaries, any bribe, gift, consideration, reward,
favour, any material or immaterial benefit or other advantage, commission, fees, brokerage or inducement
to any official of the Employer, connected directly or indirectly with the bidding process and contract
administration, or to any person, organization or third party related to the contract in exchange for any
advantage in the bidding process and contract administration.

Bidding Document for Hiring of Vehicle Page 16 of 18

5.2 The Bidder shall not collude with other parties interested in the contract to manipulate in whatsoever
form or manner, the bidding process, and contract administration.
5.3 If the bidder(s) have observed or noticed or have reasonable suspicion that the provisions of the IP have
been violated by the procuring agency or other bidders, the bidder shall report such violations to the head
of the procuring agency.
6. Sanctions for Violation:
The breach of any of the aforesaid provisions shall result in administrative charges or penal actions as per the
relevant rules and laws.
6.1 The breach of the IP or commission of any offense (forgery, providing false information,
misrepresentation, providing false/fake documents, bid rigging, bid steering or coercion) by the Bidder,
or anyone employed by him, or acting on his/her behalf (whether with or without the knowledge of the
Bidder), shall be dealt with as per the terms and conditions of the contract and other provisions of the
relevant laws, including De-barment Rules.
6.2 The breach of the IP or commission of any offense by the officials of the procuring agency shall be dealt
with as per the rules and laws of the land in vogue.
7. Monitoring and Administration:
7.1 The respective procuring agency shall be responsible for the administration and monitoring of the IP as
per the relevant laws.
7.2 The bidder shall have the right to appeal as per the arbitration mechanism contained in the relevant rules.
We, hereby declare that we have read and understood the clauses of this agreement and shall abide by it. The
parties hereby sign this Integrity Pact at (place) ____________ on (date) __________

Affix Affix
Legal Legal
Stamp Stamp

EMPLOYER BIDDER/REPRESENTATIVE

CID CID :
:

Witness: _____________________________ Witness: ___________________________

Name: Name:

CID: CID :
::

Bidding Document for Hiring of Vehicle Page 17 of 18

 Annexure-II: Price Schedule
Details of Quotation of the Vehicle offered for Lease

Sl.
Details of Vehicle To be filled by the Bidder
N0.

1 Registration No. of the Vehicle

2 Name of Owner of the Vehicle:

3 Model / Year of Make of Vehicle:

4 Date of Initial Registration:

Engine No. & Chassis No. of Vehicle offered

5
for lease:

6 Present Odometer or KM Reading:

7 Location Quoted for:

Quoted Rate Lump sum Amount (Nu. Per

8
Month)

Bidding Document for Hiring of Vehicle Page 18 of 18