CARIBBEAN DEVELOPMENT BANK RENEWS AND EXPANDS AGREEMENT TO USE FIDIC STANDARD CONTRACTS FOR A FURTHER FIVE YEARS

CDB is the leading source for development financing in the Caribbean and is committed to supporting inclusive and sustainable growth and good governance in the region.

Under the terms of the agreement, FIDIC has granted the CDB a non-exclusive licence to refer to the 12 major FIDIC contracts (see list in notes below) for projects they finance and the documents will be used as part of the bank’s standard bidding documents. The list of contracts now include the reprints of the 2022 FIDIC Rainbow Suite, the latest FIDIC Green book 2021 and the Emerald Book contract for Underground Works and the Dredgers contract.

The suite of contracts covered by the agreement with FIDIC covers a wide range of international construction and infrastructure work and the CDB’s move represents a further key endorsement for FIDIC contracts from a major international funding organisation, following similar agreements signed with the World Bank and many other multilateral development banks around the world.

FIDIC president Catherine Karakatsanis said: “I am delighted that the CDB has renewed and expanded its agreement with FIDIC to be used as an accepted form of contract for use with their standard bidding documents. As well as being another major development for FIDIC, this move will create more certainty in the market, as by facilitating the use of FIDIC contacts on major projects the CDB is saying that they endorse the fair and balanced approach that these documents offer to parties on major construction contracts. We know that the certainty that FIDIC contracts bring make it easier to get projects underway as many of the common commercial risks are clearly addressed in the contracts and all parties understand their obligations and responsibilities.

“I look forward to the CDB’s continuing endorsement of these contracts providing additional comfort to the financial, institutional and private equity investors operating in the global market to adopt the use of FIDIC standard procurement contracts as an effective tool to mitigate the risk associated with major infrastructure projects and assets.”

Commenting on the signing of the agreement, Therese Turner-Jones, acting vice president of operations at the Caribbean Development Bank, said: “We are delighted to be renewing this agreement with FIDIC, as it provides our clients with the ability to use internationally recognised and balanced forms of contract to further their project-specific and development objectives across the Caribbean region and beyond. We look forward to working with FIDIC for another five years.”

Photo caption for image supplied: FIDIC president Catherine Karakatsanis and Therese Turner-Jones, acting vice president of operations at the Caribbean Development Bank, at the online signing of the FIDIC contracts agreement.

FIDIC, the International Federation of Consulting Engineers, is the global representative body for national associations of consulting engineers and represents over one million engineering professionals and 40,000 firms in around 100 countries worldwide. The buildings and infrastructure sector in which FIDIC members work contributes around US$36trillion to global GDP.

The Caribbean Development Bank is a regional financial institution established in 1970 for the purpose of contributing to the harmonious economic growth and development of its borrowing member countries (BMCs). In addition to the 19 BMCs, CDB’s membership includes four regional, non-borrowing members (Brazil, Colombia, Mexico, and Venezuela) and five non-regional, non-borrowing members (Canada, China, Germany, Italy and the United Kingdom). CDB’s total assets as at 31 December 2023, stood at US$3.43bn. These include US$2.03bn of Ordinary Capital Resources and US$1.40bn of special funds resources. The bank is rated Aa1 Stable by Moody’s, AA+ Stable by Standard & Poor’s and AA+ Stable by Fitch Ratings. Read more at caribank.org.

The 12 FIDIC contract documents covered by the FIDIC/CDB agreement are as follows: –

1. Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer (“Red book”), First edition 1999;
2. Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer (“Red book”), Second edition 2017, Reprinted 2022 with amendments;
3. Conditions of Contract for Plant & Design-Build for Electrical & Mechanical Plant & for Building & Engineering Works Designed by the Contractor (“Yellow book”), First edition 1999;
4. Conditions of Contract for Plant & Design-Build for Electrical & Mechanical Plant & for Building & Engineering Works Designed by the Contractor (“Yellow book”), Second edition 2017, Reprinted 2022 with amendments;
5. Conditions of Contract for EPC Turnkey Projects (Silver book), First edition 1999;
6. Conditions of Contract for EPC Turnkey Projects (Silver book), Second Edition, 2017), Reprinted 2022 with amendments; 
7. Client/Consultant Model Services Agreement (”White book”), Fifth Edition 2017;
8. Conditions of Contract for Design, Build and Operate Projects (“Gold book”) First Edition 2008;
9. The Short Form of Contract (“Green Book”), First Edition, 1999;
10. The Short Form of Contract (“Green Book”), Second Edition, 2021;
11. Conditions of Contract for Underground Works (Emerald book), First Edition, 2019, Reprinted in 2023 with amendments; and
12. Form of Contract for Dredging and Reclamation Works, Second Edition, 2016.