1 / 8

FINANCIAL-ADMINISTRATION & LOCAL BANK FUNDING

FINANCIAL-ADMINISTRATION & LOCAL BANK FUNDING. FINANCIAL-ADMINISTRATION. Procurement and NPA G uidelines L oan A greement T erms I nternal Financial Circulars (NWSDB) B udgeting – (Adequate GOSL and L ocal bank funds allocation)

armine
Download Presentation

FINANCIAL-ADMINISTRATION & LOCAL BANK FUNDING

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FINANCIAL-ADMINISTRATION & LOCAL BANK FUNDING

  2. FINANCIAL-ADMINISTRATION • Procurement and NPA Guidelines • Loan Agreement Terms • Internal Financial Circulars (NWSDB) • Budgeting – (Adequate GOSL and Local bank funds allocation) • Compliance of contract documents with ICTAD, FIDIC and SBD terms • VAT EXEMPTIONS

  3. FINANCIAL-ADMINISTRATION • Funds Management • Adequacy of loan amount • Interest Rates and Grace period • Repayment of Principal and Interest • debt covenants • Loan and Grant Components • Return on Investment and achievement of revenue targets (domestic and industrial connections based on the commercial area) • Vat exemptions

  4. Issues Related to the payments • Insufficiency of funds received from GOSL in order to made payments on time. • Submission of bills without having adequate budget allocation • Lack of payment terms in the contract documents (Ex: Not paying the demurrage on custom duty payments, release of retention, termination clauses with regard to recovery % on balance work to be completed, Tax clauses) • Scope of the contract are not properly defined in the BOQ. (Ex: Considerable extent of savings orders) • Non availability of time extensions and variation order approvals along with relevant supporting documents • Arithmetical errors and claiming of already omitted items again in the progress bill • Submission of variation order payments after the final bill

  5. Issues Related to the payments • Not provided the required documents as mentioned in the contract documents. Further, acceptability of those documents are not cerficed. • Allocated Price escalation amounts are not specified in the contract documents. However, submit the price escalation claims for the payments. • Not provided the actual bills for provisional sum items • Signatures are unable to verify. Not placed rubber stamp on the signatures of the authorized officer. (GM Circular- Including name and designation) • Non tax invoices are submitted for VAT payments

  6. Issues Related to the payments • Guarantees • Submission of conditional Guarantees • Conditional Taking over certificates are submitted and request to release the performance guarantees. • Not responding the letters send to the RSCs regarding the expiration of bonds and requirement of extensions • Directly send the letters to the bank to release guarantees without submission of completion certificates.

  7. IMPACTS OF LOCAL BANK FUNDING • Interest rates & Repayment conditions match with the revenue targets (direct cost ,other overheads, financial charges) • Determination of loan & grant components • Involvement of treasury- entering to the loan agreements. • Requirement of timely repayments due to penalties, risk of seizure of properties in case of default (debt covenants) • Circulation of funding within the country

  8. THANK YOU

More Related