United Nations Development Programme

Request for Quotation for services Reference: RFQ-2012-01-DPRK Amendment 1 DPR KOREA

I. Answers to the questions received by January 23, 2012.

1. The information about the project is very limited. Can you provide more information about the project?

Answer: Please find below, more information about the project “Small Wind Energy Development and Promotion in Rural Areas (SWEDPRA). In addition, you can find more information on-line in the following link: http://www.adaptationlearning.net/project/swedpra_dprk

Project No.: 00076431 Project Title: Small Wind Energy Development and Promotion in Rural Areas (SWEDPRA) Project Budget: US$ 1,445,000 ( of which the following expenditure were expended prior 2010: Project Development Facility: US$ 25,000, GEF: US$ 265,073.40, UNDP: US$ 76,453.18, Govt.(in-kind): US$ 77,000) Source of Funds: GEF Government cost-sharing: US$ 545,000 (in-kind) Executing Agency: UNOPS (Pre-resumption), DEX (Resumption) Implementing Agency: State Academy of Science. State Commission of Science and Technology Project Document signed: August 2005 (Pre-resumption), August 2010 (Resumption) Duration: 50 months (18+32 months) Project location: Onchon County, South Pyongan Province ,

Project Background:

The DPRK energy sector is characterized by a heavy reliance on coal and coke (over 60% of demand in 1990). Petroleum, all of which is imported, accounted for only 7% of supply in 1990, electricity another 7% and biomass provided an estimated 24%. Industrial demand accounts for nearly half of all consumption, residential about a third (half of this contributed by wood and biomass). The remaining sectors (agriculture, military, transport, commercial and non-energy) all contributed about 3 to 5% to demand. The DPRK in the 80s built a heavily industrialized, energy intensive economy, which because of reliance on coal and older technology are now energy-inefficient.

As of 1990, the economy has suffered. Much of this can be related to energy supply and demand causes. Vital infrastructure, such as that for electricity production and distribution or for transport, has declined drastically as a result. The decline has been felt nowhere more than in the agricultural sector. Moreover, electricity shortages have caused an estimated 25% reduction of irrigation capability in 1996 compared to 1990 levels. Irrigation is essential for rice production in the temperate climate of DPRK. Rural households as well have experienced an estimated 50% drop in service. Rural clinics, hospitals and schools suffer these same shortages. This has brought about declining standards of living.

1 United Nations Development Programme

Project Objective:

The objective of this project is primarily to reduce carbon emissions from thermal electricity DPR KOREA generated with fossil fuels, particularly coal. It will do this by assisting the nascent SWES industry on the road to full-scale commercialization by assisting SWES manufacturers and targeting the rural sector market, and to ensure sustainability of efforts made, also the overseas markets.

Project Strategy:

The Government of DPRK has adopted The Law on the Environmental Protection (1986), The Law on Land (1999), The Law on Forestry (1992), The Law on Protection of Beneficial Animals (1998), The Law on Water Resources (1999) and the Law on Preventing Sea Pollution. The Government Policy on Science and Technology adopted in1991 has stated that research and development activities in the area of renewable energy such as solar and wind energy should be further intensified to widen their utilization.

The Government in 1993 issued the National Action Plan for Agenda 21 focusing on a transition to sustainable development. This document has featured development of renewable energy, in particular wind energy as one of the three priorities. Later in 2002, as part of the First National Communication Report (FNCR) to the UNFCCC, the DPRK has reiterated its commitment to developing and disseminating wind energy technologies.

At the international arena, DPRK is a party to The Vienna Convention on Protection of the Ozone Layer and its Montreal Protocol as well as the UN Framework Convention on Climate Change and the Convention on Biological Diversity. DPRK acceded to the Stockholm Convention on Persistent Organic Pollutants, UN Convention to combat desertification and Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade.

Project Design and Strategic Considerations:

For the last 15 years wind has been considered a potential source of energy in the DPRK especially for off-grid stand-alone services. Although research and demonstration have been conducted these have never led to successful development of a prototype, much less wide dissemination and marketing of the technology. This Project addresses the problems of technology design and commercialization by assisting in the advancement of wind energy at selected points in the research to commercial market development chain.

The technology focus of the Project is small-scale, from 500 W to 5 kW. This size range can meet the demand of rural households as well as small-scale farm activities. Designs will be developed both on a "best practice" basis and on the basis of cost effectiveness with the limitations of DPRK industry in mind. Equipment will be provided to support the manufacture and testing of such small units. Units will be commercially ready before they are demonstrated.

The capacity building focus of the Project strengthens research, feasibility analysis, SWES design, manufacturing and marketing capabilities. The project will coordinate these important elements in wind technology development and dissemination and take a more comprehensive approach to the problems than has been attempted in the past. Full stakeholder participation is important and will be sought at all points over the project to facilitate buy-in. Major emphasis is placed on sustainable replication of the technology and sales of locally made SWES units in the overseas market. Building

2 United Nations Development Programme

of capacity will be emphasized amongst stakeholders so that at project conclusion the agencies involved will have an interest in replicating the results. Ways will be sought to further replication. The rural areas are the main beneficiary targets for this project. From applications ranging from stand-alone units to wind power plant (with power distribution systems), this sector represents the DPR KOREA greatest potential for replication because of severe electricity shortages. From a humanitarian perspective it is this sector where the need is greatest for an alternative form of energy. Moreover, the application of the SWES systems will not only sustain the development of the country’s nascent wind energy industry, but also contribute to the socio-development of the country’s rural areas.

Project Key Outputs:

• Assessed wind characteristics and energy potentials in the country, • Widely disseminated feasibility and benefits of wind energy technology applications to potential users in the country, • Established market for locally made SWES units and promoted both domestically and abroad, • Compliance of locally made SWES units with internationally acceptable quality and performance standards, • Improved manufacturing of locally made SWES units towards internationally accepted production practices and standards, • Installed, operated and monitored optimally designed and manufactured SWES units in selected sites, • Integrated of energy planning and policy making into the country’s development planning system.

Implementation status:

Project Document initially has been signed in August 2005 and it was executed by UNOPS during pre-resumption period, since August 2010 Prodoc was signed by UNDP and after resumption UNDP DEX take place. Implementing Partners remained the same: State Academy of Science and State Commission of Science and Technology. Project location places (originally two) were extended by SAOS before 2010 up to 9 comparing with the original document:

Counties where wind energy assessment have completed: 1. Yangdok county, South Pyongan province; 2. Kwail county, South Hwanghae province; 3. Cholsan county, North Pyongan province.

Counties where wind energy assessment will be conducted: 1. , North Pyongan province; 2. Yomju county, North Pyongan province; 3. Unjon county, North Pyongan province; 4. Onchon County, South Pyongan province – Only monitoring -4 May 5. Mundok county, South Pyongan province; 6. Sukchon county, South Pyongan province.

Initial overall duration was 50 months. 18 months were spent during pre-resumption and since August 2010 until April 2013 - 32 months remained.

3 United Nations Development Programme

2. Is the wind turbine grid connected or is it off -grid wind turbine?

Answer: The wind turbine is off-grid. DPR KOREA

3. Which class of wind turbine is considered? for example, 1KW to 10KW, 100KW to 1MW, etc.

Answer: The wind turbine is considered below 5 KW

II. Amendment to the deadline of the Request for Quotation.

The deadline of this Request for Quotation was extended to February 5, 2012, as detailed below. The remaining terms of the bidding document remain unchanged.

Thank you in advance for your offer.

Kind regards,

Procurement Unit. UNDP DPRK January 24, 2012

4 United Nations Development Programme

January 24, 2012 Request for Quotation for services

Reference: RFQ-2012-01-DPRK DPR KOREA Deadline to submit your offer: before 11:59 pm1 on February 5, 2012.

Post title: Provision of technical guidance and backstopping for the Small Wind Energy Development and Promotion in Rural Areas (SWEDPRA) project, for a period of one year renewable for a total Long Term Agreement (LTA) of up to three years.

Project: UNDP-GEF “Small wind energy development and promotion in rural areas (SWEDPRA)”.

Location: Home based with probably 1-week length missions in , DPRK.

Duration: Approximately 30 effective working days per year, with missions in DPRK (to be determined).

Please send your proposal/offer duly signed in electronic format (pdf, tiff, etc.) to the e-mail address [email protected] with the following subject: Offer RFQ-2012-01-DPRK.

Any question or comments regarding this Request for Quotation shall be sent to the e-mail address [email protected] not later than January 23, 2012. The answers to the questions or any modification to the Terms of Reference will be published in UNDP Procurement Notices Website2 and United Nations Global Marketplace Website (UNGM)3 site before January 24, 2012.

I. BACKGROUND.

The DPRK energy sector is characterized by a heavy reliance on coal and coke (over 60% of demand in 1990). Petroleum, all of which is imported, accounted for only 7% of supply in 1990, electricity another 7% and biomass provided an estimated 24%. Industrial demand accounts for nearly half of all consumption, residential about a third (half of this contributed by wood and biomass). The remaining sectors (agriculture, military, transport, commercial and non-energy) all contributed about 3 to 5% to demand. The DPRK in the 80s built an industrialized, energy intensive economy, which because of reliance on coal using methods and technologies that are not the most advanced, rising global oil prices, constraints arising from restricted international trading and foreign exchange environment and the resultant shortage in capital for newer and more efficient technologies now energy-inefficient.

As of 1990, the economy has suffered. Much of this can be related to energy supply and demand causes. Vital infrastructure, such as that for electricity production and distribution or for transport, has declined drastically as a result. The decline has been felt nowhere more than in the agricultural sector. Moreover, electricity shortages have caused an estimated 25% reduction of irrigation capability in 1996 compared to 1990 levels. Irrigation is essential for rice production in the temperate climate of DPRK. As it is mentioned in the SWEDPRA project document rural households as well have experienced an estimated 50% drop in service. Rural clinics, hospitals and schools suffer these same shortages. This has brought about declining standards of living.

1 All time and date references in this document are made considering Pyongyang, Democratic People’s Republic of Korea current local time. (http://www.timeanddate.com/worldclock/city.html?n=205). 2 http://procurement-notices.undp.org/index.cfm 3 http://www.ungm.org/Notices/Notices.aspx

5 United Nations Development Programme

Hope and prospects lie in renewable energy. Wind energy development is a stated priority for the DPRK, especially now that the country faces shortages of conventional fuel and electricity, hardship in the rural sector and a rising concern for pollution caused by its one indigenous source of energy, coal. The wind resource is good particularly in the east and west seacoasts. Average speeds for the DPR KOREA country are reported at 3 to 4 m/s although reliable data are difficult to find. Attempts at advancing the wind priority have not met with success in part due to lack of information, lack of ability to invest in the manufacturing sector and lack of understanding of wind technology markets. The government and UNDP have initiated a cooperation to implement a small wind energy project.

The Small Wind Energy Development and Promotion in Rural Areas (SWEDPRA) Project aims to reduce CO2 emissions by replacing thermal power generation with wind energy. At the same time it will contribute to improving the living conditions and livelihood of people in the rural areas. It will do this by building on Government stated priorities to develop an indigenous Small Wind Energy Systems (SWES) industry.

The objective of this project is primarily to promote use of environmentally friendly, sustainable and efficient energy alternatives which will among other things reduce carbon emissions from thermal electricity generated with fossil fuels, particularly coal and their harmful effects on environment. It will do this by assisting the nascent SWES industry on the road to full-scale commercialization by assisting SWES manufacturers and targeting the rural sector market, and to ensure sustainability of efforts made, also the overseas markets.

SWEDPRA Project expected outputs:

1) Assessed wind characteristics and energy potentials in the country and improved local capacity to carry out wind energy assessments on a regular basis after the Project, 2) Widely disseminated feasibility and benefits of wind energy technology applications to potential users in the country, 3) Established market for locally made SWES units and promoted both domestically and abroad, 4) Compliance of locally made SWES units with internationally acceptable quality and performance standards, 5) Improved manufacturing of locally made SWES units towards internationally accepted production practices and standards, 6) Installed, operated and monitored optimally designed and manufactured SWES units in selected sites, 7) Integration of energy planning and policy making into the country’s development planning system.

Although there are good reasons for strengthening the country’ manufacturing capability for SWES, evidence of a skilled industrial work force, which can be readily adapted to wind energy development and nascent SWES development activities already exist. But it is necessary to further strengthen of the capacity of local partners and bring international technical knowledge and experience in wind energy measurement and production areas on more regular, systematic and predictable manner through the SWEDPRA project, which will end by April 2013.

SWEDPRA will support the local manufacturing and quality improvement. However, continual technical supervision and quality assurance of these efforts (design, production, quality inspection, knowledge building and dissemination) by qualified specialized agency/ies will be needed. UNDP will seek the services of qualified individual/s or/and agency/ies in this regard.

6 United Nations Development Programme

II. OBJECTIVES.

The overall objective of this position is to provide permanent technical backstopping and guidance DPR KOREA to the UNDP Project Manager, National Project Director and Project Technical Manager and local project coordination unit with regards to the SWEDPRA project performance with the following aims:

a) To assist on the formulation of tenders, ToRs (objectives, description of activities and deliverables) to be launched in future for materials and services required internationally and locally; b) To assist on the evaluation of bids received in future for materials and services required internationally and locally; c) To structure the future project activities within the SWEDPRA Annual Work Plan and its revisions with weekly resolution including milestones and precedent conditions to be in place necessary to perform individual activities; d) To provide backstopping assistance on demand until April 2013 to address any upcoming technical subject; e) To provide new ideas and information that can be beneficial for the SWEDPRA project implementation.

Description of Activities to be undertaken by International Consultant:

The International Consultant will report to the SWEDPRA Project Manager and closely coordinate its activity and results with National Project Director. More specifically, she/he will provide technical guidance and assistance in:

I. Formulation of objectives, description of activities and deliverables of tenders to be launched in future for materials and services with technical relevance. Specifically assistance shall be provided on tenders with regards to the following subjects:

1. Optimization of blade design with regards to starting time, cut-in wind speed and overall blade aerodynamic efficiency and provision of metal templates for replication of the blade design in the workshop; 2. Optimization and establishment of an optimized production processes; 3. Writing and establishment of standardized working procedures for the manufacturing floor; 4. Establishment of standards on Wind Technology safety, production processes and power performance testing; 5. Establishment of standards on material and component requirements and testing; 6. Establishment of a Quality Management system; 7. Two IEC conform wind measurement units for power curve performance measurement and reporting and for national wind resource assessment activities; 8. National meso-scale wind map based on available data and integration into a GIS planning and steering tool; 9. Any kind of specifications and technical requirements for procurement for machinery, tools (particularly meant for the production floor) and software incl. trainings provided; 10. Training on software for wind data analysis, database establishment, wind energy and resource calculations, etc. 11. Assistance in organizing Study tours and any possible trainings to be performed;

7 United Nations Development Programme

II. Assisting in the technical evaluation of the bids obtained as response to the tenders launched and providing recommendation on the bids received.

III. Providing support and substantial feedback for SWEDPRA Annual Work plan formulation and DPR KOREA structuring with a weekly resolution the activities to be performed starting in January 2012 and attaching milestones to the overall project progress. Conditions to be met in order to implement activities as well as to reach milestones shall be clearly highlighted.

IV. Serving as permanent help desk and providing technical backstopping on a continuous base until April 2013 as to serve the Project Manager(s) in DPRK on upcoming technical matters.

III. DELIVERABLES.

I) Formulation of objectives, description of activities and deliverables of tenders to be launched in future; II) Comments provided on the bids obtained; III) Work Plan with weekly resolution, milestones and precedent conditions related to the activity performance starts; IV) Providing accurate, timely and detailed assistance and backstopping on upcoming technical subjects until April 2013; V) Bi-monthly tables that show the activities performed and the time needed; VI) Report on potential end-user preferences and satisfactions; VII) Biannual and annual report on progress on the scope of work as provided herein.

Please consider that the schedule for delivery of outputs and terms of payment will be discussed at a later stage in more detail.

IV. OUTPUTS.

The hired consultancy services will contribute to a resource efficient performance of the project in terms of time and budget. The services provided enable the Project Manger and Project Director to take most optimal decisions and to enable the project activities to be performed in an efficient way as to safeguard achievement of the project results and objectives. Specifically the UNDP Project Manager and National Project Director in DPRK will be enabled to launch in a timely manner and with the most accurate focus the necessary tenders to procure services and materials needed to achieve SWES unit production as one of the main project outcome. Also the optimization of the production process and equipping of the workshop will be supported significantly by the technical assistance provided by the hired consultancy-

V. DATE AND DURATION OF SERVICES.

It is expected to enter into a Long Term Agreement with the awarded consultant. The agreement will be initially for 1 year that might be extended for up to a total of 3 years. The expected workload per year is about 30 effective working days, including missions to DPRK upon UNDP request. The number of days necessary for each required task will be negotiated between the consultant and UNDP Project manager.

This home-based work and missions will be based only on needs and demands raised by the Project Manager on behalf of the SWEDPRA Project’s key stakeholders. Payment is a subject of satisfactory performance upon certification by UNDP Project Manager. If it is required one or more missions to DPRK it will be conducted based on additional negotiations between the Project Manger and consultant.

8 United Nations Development Programme

VI. QUALIFICATIONS.

Education. DPR KOREA Advanced university degree in physics, wind energy or machinery engineering, or related fields, or the equivalent combination of education and experience in a related area.

Experience. At least three years of adequate experience in undertaking similar assignments. Experience in working on Small Wind Energy Converters and with institutional capacity development for wind energy projects required. Good knowledge, understanding and experience of technical requirements for wind energy, especially on power curves certification of wind energy converters and wind energy calculations. Good knowledge and experience on wind energy marketing and servicing and research of end-users. Good knowledge and experience in working in DPRK and/or socialist systems/command economies will be advantages.

Personal skills. Excellent communication (especially writing), negotiation and diplomatic skills; strong analytical skills; comfortable working with a variety of people within a multicultural environment; able to work and follow up independently; ability to work under pressure and adhere to tight deadlines; strong work ethic and commitment; organized, resourceful and a team player.

Language skills. Fluent in English, both verbal and written. Knowledge of is an asset.

VII. EVALUATION.

UNDP will award contract to the offer that guarantees the best value for money. Thus, award will be made to the lowest priced technically acceptable offer. The technical criterion is described in the following table:

Maximum Technical criteria (as described in chapter IV above) Person A Person B Person C points* 1 Education 150 2 Experience 650 3 Personal skills 150

4 Language skills 50 Total 1000 *Scoring will be as follows: Scoring Scale Note Supporting evidences System Requirements submitted and supported by excellent evidence of ability to support and Excellent 100% exceed contract requirements Requirements submitted and supported by good evidence of ability to support and Good 90% exceed contract requirements Requirements submitted and supported by satisfactory evidence of ability to support Satisfactory 80% contract requirements Requirements submitted and supported by marginally acceptable or weak evidence of Poor 70% ability to support contract requirement (Clarification may be required) Requirements submitted but not supported by evidence to demonstrate ability to Very poor 60% comply with contract requirements

No submission Information has not been submitted or is unacceptable 0%

9 United Nations Development Programme

Minimum points to approve the technical evaluation: 80 % of available points. Award will be made to the lowest priced technically acceptable offer. UNDP reserves the right to award contract to more than one bidder. DPR KOREA

The procuring UNDP entity reserves the right to accept or reject any Proposal, and to annul the solicitation process and reject all Proposals at any time prior to award of contract, without thereby incurring any liability to the affected Offeror or any obligation to inform the affected Offeror or Offerors of the grounds for the Purchaser’s action. UNDP reserves the right at the time of award of contract to vary the quantity of services and goods specified in the RFQ without any change in price or other terms and conditions.

VIII. FINANCIAL OFFER.

Please fill in Form 1 attached, to express your price offer for the services required in this Request for Quotation, as well as your per diem rate including taxes. UNDP will cover your remuneration plus, if mission is requested by UNDP, the per diem expense for each day in DPRK, round trip at economy care from your place of residence to Pyongyang (including all applicable visas), in-country transportation and office space at UNDP project’s office. All prices shall be quoted in US dollars (USD) or any convertible currency. For comparison purposes, all offers expressed in other currencies but US dollars, would be converted to US dollars using the United Nations Operational Rate of Exchange4. The schedule of payments will be discussed with the successful candidate at a later stage in more detail.

Laptop and cameras are allowed into DPRK. It is not recommended to bring mobile phones. Mobile phones have to be submitted to Customs authority, which will return the device upon consultant’s departure. Hotel prices in Pyongyang start at 70 Euros per night, breakfast included. A regular meal rounds from 10 to 15 Euros. You can purchase a mobile phone at a starting cost of 200 Euros. Wireless Internet can be provided at UNDP facilities at no cost (so you might be able to use Skype for international calls).

IX. FORMS TO SUBMIT OFFER/PROPOSAL.

The person interested in the post described above, shall submit the following documents:

Document Description File Please describe in brief, the methodology or work plan you Working would like to follow to accomplish the tasks described in the No special form needed proposal Terms of References (5 pages maximum). Please fill in and sign P11 form included in the procurement Resume P11 form.doc advertisement at UNGM

Price or Use Form 1 (compulsory). Your quote shall include all cost or Form 1.doc quote taxes involved.

Legal Valid passport and DPRK Visa are required in DPRK. UNDP will process DPRK Visa documents and reimburse the cost related to its issuance.

Conditions The conditions applicable to the contract between UNDP and the awarded of contract consultant, are described below.

4 https://treasury.un.org/operationalrates/OperationalRates.aspx

10 United Nations Development Programme

Price Submission Form RFQ-2012-01-DPRK Form 1. DPR KOREA

Resident Representative United Nations Development Programme, DPRK.

Having examined the Solicitation Documents, the receipt of which is hereby duly acknowledged, I, the undersigned, offer to provide (the requested services) for the total sum of (indicate amount in number and letters) including applicable taxes, plus the per diem expenses as may be ascertained in accordance with the Price Schedule described below and made part of this Offer.

Price Schedule Daily rate Daily rate Daily rate Description of Activity/Item year 1 year 2 year 3

1. Consultancy work (home based or in DPRK).

2. Per diem expenses, for each day in DPRK

I undertake, if my Offer is accepted, to commence and complete delivery of all services specified in the contract within the time frame stipulated.

I agree to abide by this Offer for a period of 60 days from the date fixed for receiving of Offers in the Request for Quotation, and it shall remain binding upon me and may be accepted at any time before the expiration of that period.

I understand that you are not bound to accept any Offer you may receive.

Date:

Name and signature:

11 United Nations Development Programme

General Conditions of Contract for the Services of Individual Contractors

1. LEGAL STATUS: The Individual contractor shall have the legal status of an independent contractor vis-à-vis the United Nations Development Programme (UNDP), and shall not be regarded, for any purposes, as being DPR KOREA either a “staff member” of UNDP, under the UN’ Staff Regulations and Rules, or an “official” of UNDP, for purposes of the Convention on the Privileges and Immunities of the United Nations, adopted by the General Assembly of the United Nations on 13 February 1946. Accordingly, nothing within or relating to the Contract shall establish the relationship of employer and employee, or of principal and agent, between UNDP and the Individual contractor. The officials, representatives, employees or subcontractors of UNDP and of the Individual contractor, if any, shall not be considered in any respect as being the employees or agents of the other, and UNDP and the Individual contractor shall be solely responsible for all claims arising out of or relating to its engagement of such persons or entities.

2. STANDARDS OF CONDUCT: In General: The Individual contractor shall neither seek nor accept instructions from any authority external to UNDP in connection with the performance of its obligations under the Contract. Should any authority external to UNDP seek to impose any instructions on the Contract regarding the Individual contractor’s performance under the Contract, the Individual contractor shall promptly notify UNDP and shall provide all reasonable assistance required by UNDP. The Individual contractor shall not take any action in respect of its performance of the Contract or otherwise related to its obligations under the Contract that may adversely affect the interests of UNDP, and the Individual contractor shall perform its obligations under the Contract with the fullest regard to the interests of UNDP. The Individual contractor warrants that it has not and shall not offer any direct or indirect benefit arising from or related to the performance of the Contract or the award thereof to any representative, official, employee or other agent of UNDP. The Individual contractor shall comply with all laws, ordinances, rules and regulations bearing upon the performance of its obligations under the Contract. In the performance of the Contract the Individual contractor shall comply with the standards of conduct set in the Secretary General’s Bulletin ST/SGB/2002/9 of 18 June 2002, entitled “Regulations Governing the Status, Basic Rights and Duties of Officials other than Secretariat Officials, and Expert on Mission”. The individual contractor must comply with all Security Directives issued by UNDP. Failure to comply with such security directives is grounds for termination of the Contract for cause. Prohibition of Sexual Exploitation and Abuse: In the performance of the Contract, the Individual contractor shall comply with the standards of conduct set forth in the Secretary-General’s bulletin ST/SGB/2003/13 of 9 October 2003, concerning “Special measures for protection from sexual exploitation and sexual abuse”. In particular, the Individual contractor shall not engage in any conduct that would constitute sexual exploitation or sexual abuse, as defined in that bulletin. The Individual contractor acknowledges and agrees that any breach of any of the provisions hereof shall constitute a breach of an essential term of the Contract, and, in addition to any other legal rights or remedies available to any person, shall give rise to grounds for termination of the Contract. In addition, nothing herein shall limit the right of UNDP to refer any alleged breach of the foregoing standards of conduct to the relevant national authorities for appropriate legal action.

3. TITLE RIGHTS, COPYRIGHTS, PATENTS AND OTHER PROPRIETARY RIGHTS: Title to any equipment and supplies that may be furnished by UNDP to the Individual contractor for the performance of any obligations under the Contract shall rest with UNDP, and any such equipment shall be returned to UNDP at the conclusion of the Contract or when no longer needed by the Individual contractor. Such equipment, when returned to UNDP, shall be in the same condition as when delivered to the Individual contractor, subject to normal wear and tear, and the Individual contractor shall be liable to compensate UNDP for any damage or degradation of the equipment that is beyond normal wear and tear. UNDP shall be entitled to all intellectual property and other proprietary rights, including, but not limited to, patents, copyrights and trademarks, with regard to products, processes, inventions, ideas, know-how or documents and other materials which the Individual contractor has developed for UNDP under the Contract and which bear a direct relation to or are produced or prepared or collected in consequence of, or during the course of, the performance of the Contract, and the Individual contractor acknowledges and agrees that such products, documents and other materials constitute works made for hire for UNDP. However, to the extent that any such intellectual property or other proprietary rights consist of any intellectual property or other proprietary rights of the Individual contractor: (a) that pre-existed the performance by the Individual contractor of its obligations under the Contract, or (b) that the Individual

12 United Nations Development Programme

contractor may develop or acquire, or may have developed or acquired, independently of the performance of its obligations under the Contract, UNDP does not and shall not claim any ownership interest thereto, and the Individual contractor grants to UNDP a perpetual license to use such intellectual property or other proprietary right solely for the purposes of and in accordance with the requirements of the Contract. At the DPR KOREA request of UNDP, the Individual contractor shall take all necessary steps, execute all necessary documents and generally assist in securing such proprietary rights and transferring or licensing them to UNDP in compliance with the requirements of the applicable law and of the Contract. Subject to the foregoing provisions, all maps, drawings, photographs, mosaics, plans, reports, estimates, recommendations, documents and all other data compiled by or received by the Individual contractor under the Contract shall be the property of UNDP, shall be made available for use or inspection by UNDP at reasonable times and in reasonable places, shall be treated as confidential and shall be delivered only to UNDP authorized officials on completion of work under the Contract.

4. CONFIDENTIAL NATURE OF DOCUMENTS AND INFORMATION: Information and data that are considered proprietary by either UNDP or the Individual contractor or that are delivered or disclosed by one of them (“Discloser”) to the other (“Recipient”) during the course of performance of the Contract, and that are designated as confidential (“Information”), shall be held in confidence and shall be handled as follows. The Recipient of such Information shall use the same care and discretion to avoid disclosure, publication or dissemination of the Discloser’s Information as it uses with its own similar information that it does not wish to disclose, publish or disseminate, and the Recipient may otherwise use the Discloser’s Information solely for the purpose for which it was disclosed. The Recipient may disclose confidential Information to any other party with the Discloser’s prior written consent, as well as to the Recipient’s employees, officials, representatives and agents who have a need to know such confidential Information solely for purposes of performing obligations under the Contract. Subject to and without any waiver of the privileges and immunities of UNDP, the Individual contractor may disclose Information to the extent required by law, provided that the Individual contractor will give UNDP sufficient prior notice of a request for the disclosure of Information in order to allow UNDP to have a reasonable opportunity to take protective measures or such other action as may be appropriate before any such disclosure is made. UNDP may disclose Information to the extent as required pursuant to the Charter of the United Nations, resolutions or regulations of the General Assembly or its other governing bodies, or rules promulgated by the Secretary- General. The Recipient shall not be precluded from disclosing Information that is obtained by the Recipient from a third party without restriction, is disclosed by the Discloser to a third party without any obligation of confidentiality, is previously known by the Recipient, or at any time is developed by the Recipient completely independently of any disclosures hereunder. These obligations and restrictions of confidentiality shall be effective during the term of the Contract, including any extension thereof, and, unless otherwise provided in the Contract, shall remain effective following any termination of the Contract.

5. TRAVEL, MEDICAL CLEARANCE AND SERVICE INCURRED DEATH, INJURY OR ILLNESS: If the Individual contractor is required by UNDP to travel beyond commuting distance from the Individual contractor’s usual place of residence, and upon prior written agreement, such travel shall be at the expense of UNDP. Such travel shall be at economy care when by air. UNDP may require the Individual contractor to submit a Statement of Good Health from a recognized physician prior to commencement of work in any offices or premises of UNDP or before engaging in any travel required by UNDP or connected with the performance of the Contract. The Individual contractor shall provide such a Statement of Good Health as soon as practicable following such request, and prior to engaging in any such travel, and the Individual contractor warrants the accuracy of any such Statement, including, but not limited to, confirmation that the Individual contractor has been fully informed regarding the requirements for inoculations for the country or countries to which travel may be authorized. In the event of the death, injury or illness of the Individual contractor which is attributable to the performance of services on behalf of UNDP under the terms of the Contract while the Individual contractor is traveling at UNDP expense or is performing any services under the Contract in any offices or premises of UNDP, the Individual contractor or the Individual contractor’s dependents, as appropriate, shall be entitled to compensation equivalent to that provided under the UNDP insurance policy, available upon request.

6. PROHIBITION ON ASSIGNMENT; MODIFICATIONS: The Individual contractor may not assign, delegate, transfer, pledge or make any other disposition of the Contract, of any part thereof, or of any of the rights, claims or obligations under the Contract except with the prior written authorization of UNDP, and any

13 United Nations Development Programme

attempt to do so shall be null and void. The terms or conditions of any supplemental undertakings, licenses or other forms of Contract concerning any goods or services to be provided under the Contract shall not be valid and enforceable against UNDP nor in any way shall constitute an Contract by UNDP thereto, unless any such undertakings, licenses or other forms of Contract are the subject of a valid written undertaking by DPR KOREA UNDP. No modification or change in the Contract shall be valid and enforceable against UNDP unless provided by means of a valid written amendment to the Contract signed by the Individual contractor and an authorized official or appropriate contracting authority of UNDP.

7. SUBCONTRACTORS: In the event that the Individual contractor requires the services of subcontractors to perform any obligations under the Contract, the Individual contractor shall obtain the prior written approval of UNDP for any such subcontractors. UNDP may, in its sole discretion, reject any proposed subcontractor or require such subcontractor’s removal without having to give any justification therefore, and such rejection shall not entitle the Individual contractor to claim any delays in the performance, or to assert any excuses for the non-performance, of any of its obligations under the Contract. The Individual contractor shall be solely responsible for all services and obligations performed by its subcontractors. The terms of any subcontract shall be subject to, and shall be construed in a manner that is fully in accordance with, all of the terms and conditions of the Contract.

8. USE OF NAME, EMBLEM OR OFFICIAL SEAL OF THE UNITED NATIONS: The Individual contractor shall not advertise or otherwise make public for purposes of commercial advantage or goodwill that it has a contractual relationship with UNDP, nor shall the Individual contractor, in any manner whatsoever, use the name, emblem or official seal of UNDP, or any abbreviation of the name of UNDP, in connection with its business or otherwise without the written permission of UNDP.

9. INDEMNIFICATION: The Individual contractor shall indemnify, defend, and hold and save harmless UNDP, and its officials, agents and employees, from and against all suits, proceedings, claims, demands, losses and liability of any kind or nature, including, but not limited to, all litigation costs and expenses, attorney’s fees, settlement payments and damages, based on, arising from, or relating to: (a) allegations or claims that the use by UNDP of any patented device, any copyrighted material or any other goods or services provided to UNDP for its use under the terms of the Contract, in whole or in part, separately or in combination, constitutes an infringement of any patent, copyright, trademark or other intellectual property right of any third party; or (b) any acts or omissions of the Individual contractor , or of any subcontractor or anyone directly or indirectly employed by them in the performance of the Contract, which give rise to legal liability to anyone not a party to the Contract, including, without limitation, claims and liability in the nature of a claim for workers’ compensation.

10. INSURANCE: The Individual contractor shall pay UNDP promptly for all loss, destruction or damage to the property of UNDP caused by the Individual contractor, or of any subcontractor, or anyone directly or indirectly employed by them in the performance of the Contract. The Individual contractor shall be solely responsible for taking out and for maintaining adequate insurance required to meet any of its obligations under the Contract, as well as for arranging, at the Individual contractor ’s sole expense, such life, health and other forms of insurance as the Individual contractor may consider to be appropriate to cover the period during which the Individual contractor provides services under the Contract. The Individual contractor acknowledges and agrees that none of the insurance arrangements the Individual contractor may make shall, in any way, be construed to limit the Individual contractor’s liability arising under or relating to the Contract.

11. ENCUMBRANCES AND LIENS: The Individual contractor shall not cause or permit any lien, attachment or other encumbrance by any person to be placed on file or to remain on file in any public office or on file with UNDP against any monies due to the Individual contractor or to become due for any work donor or against any goods supplied or materials furnished under the Contract, or by reason of any other claim or demand against the Individual contractor.

12. FORCE MAJEURE; OTHER CHANGES IN CONDITIONS: In the event of and as soon as possible after the occurrence of any cause constituting force majeure, the Individual contractor shall give notice and full particulars in writing to UNDP of such occurrence or cause if the Individual contractor is thereby rendered unable, wholly or in part, to perform its obligations and meet its responsibilities under the Contract. The

14 United Nations Development Programme

Individual contractor shall also notify UNDP of any other changes in conditions or the occurrence of any event, which interferes or threatens to interfere with its performance of the Contract. Not more than fifteen (15) days following the provision of such notice of force majeure or other changes in conditions or occurrence, the Individual contractor shall also submit a statement to UNDP of estimated expenditures DPR KOREA that will likely be incurred for the duration of the change in conditions or the event. On receipt of the notice or notices required hereunder, UNDP shall take such action as it considers, in its sole discretion, to be appropriate or necessary in the circumstances, including the granting to the Individual contractor of a reasonable extension of time in which to perform any obligations under the Contract. In the event of and as soon as possible after the occurrence of any cause constituting force majeure, the Individual contractor shall give notice and full particulars in writing to UNDP of such occurrence or cause if the Individual contractor is thereby rendered unable, wholly or in part, to perform its obligations and meet its responsibilities under the Contract. The Individual contractor shall also notify UNDP of any other changes in conditions or the occurrence of any event, which interferes or threatens to interfere with its performance of the Contract. Not more than fifteen (15) days following the provision of such notice of force majeure or other changes in conditions or occurrence, the Individual contractor shall also submit a statement to UNDP of estimated expenditures that will likely be incurred for the duration of the change in conditions or the event. On receipt of the notice or notices required hereunder, UNDP shall take such action as it considers, in its sole discretion, to be appropriate or necessary in the circumstances, including the granting to the Individual contractor of a reasonable extension of time in which to perform any obligations under the Contract. Force majeure as used herein means any unforeseeable and irresistible act of nature, any act of war (whether declared or not), invasion, revolution, insurrection, or any other acts of a similar nature or force, provided that such acts arise from causes beyond the control and without the fault or negligence of the Individual contractor. The Individual contractor acknowledges and agrees that, with respect to any obligations under the Contract that the Individual contractor must perform in or for any areas in which UNDP is engaged in, preparing to engage in, or disengaging from any peacekeeping, humanitarian or similar operations, any delay or failure to perform such obligations arising from or relating to harsh conditions within such areas or to any incidents of civil unrest occurring in such areas shall not, in and of itself, constitute force majeure under the Contract

13. TERMINATION: Either party may terminate the Contract, in whole or in part, upon giving written notice to the other party. The period of notice shall be five (5) days in the case of Contracts for a total period of less than two (2) months and fourteen (14) days in the case of contracts for a longer period. The initiation of conciliation or arbitral proceedings, as provided below, shall not be deemed to be a “cause” for or otherwise to be in itself a termination of the Contract. UNDP may, without prejudice to any other right or remedy available to it, terminate the Contract forthwith in the event that: (a) the Individual contractor is adjudged bankrupt, or is liquidated, or becomes insolvent, applies for moratorium or stay on any payment or repayment obligations, or applies to be declared insolvent; (b) the Individual contractor is granted a moratorium or a stay or is declared insolvent; the Individual contractor makes an assignment for the benefit of one or more of its creditors; (c) a Receiver is appointed on account of the insolvency of the Individual contractor ; (d) the Individual contractor offers a settlement in lieu of bankruptcy or receivership; or (e) UNDP reasonably determines that the Individual contractor has become subject to a materially adverse change in its financial condition that threatens to endanger or otherwise substantially affect the ability of the Individual contractor to perform any of its obligations under the Contract. In the event of any termination of the Contract, upon receipt of notice of termination by UNDP, the Individual contractor shall, except as may be directed by UNDP in the notice of termination or otherwise in writing: (a) take immediate steps to bring the performance of any obligations under the Contract to a close in a prompt and orderly manner, and in doing so, reduce expenses to a minimum; (b) refrain from undertaking any further or additional commitments under the Contract as of and following the date of receipt of such notice; (c) deliver all completed or partially completed plans, drawings, information and other property that, if the Contract had been completed, would be required to be furnished to UNDP thereunder; (d) complete performance of the work not terminated; and (e) take any other action that may be necessary, or that UNDP may direct in writing, for the protection and preservation of any property, whether tangible or intangible, related to the Contract that is in the possession of the Individual contractor and in which UNDP has or may be reasonably expected to acquire an interest. In the event of any termination of the Contract, UNDP shall only be liable to pay the Individual contractor compensation on a pro rata basis for no more than the actual amount of work performed to the

15 United Nations Development Programme

satisfaction of UNDP in accordance with the requirements of the Contract. Additional costs incurred by UNDP resulting from the termination of the Contract by the Individual contractor may be withheld from any amount otherwise due to the Individual contractor from UNDP. DPR KOREA 14. NON-EXCLUSIVITY: UNDP shall have no obligation respecting, and no limitations on, its right to obtain goods of the same kind, quality and quantity, or to obtain any services of the kind described in the Contract, from any other source at any time.

15. TAXATION: Article II, section 7, of the Convention on the Privileges and Immunities of the United Nations provides, inter alia, that the United Nations, including its subsidiary organs, is exempt from all direct taxes, except charges for public utility services, and is exempt from customs restrictions, duties and charges of a similar nature in respect of articles imported or exported for its official use. In the event any governmental authority refuses to recognize the exemptions of the United Nations from such taxes, restrictions, duties or charges, the Individual contractor shall immediately consult with UNDP to determine a mutually acceptable procedure. UNDP shall have no liability for taxes, duties or other similar charges payable by the Individual contractor in respect of any amounts paid to the Individual contractor under this Contract, and the Individual contractor acknowledges that UNDP will not issue any statements of earnings to the Individual contractor in respect of any such payments.

16. AUDITS AND INVESTIGATIONS: Each invoice paid by UNDP shall be subject to a post-payment audit by auditors, whether internal or external, of UNDP or by other authorized and qualified agents of UNDP at any time during the term of the Contract and for a period of two (2) years following the expiration or prior termination of the Contract. UNDP shall be entitled to a refund from the Individual contractor for any amounts shown by such audits to have been paid by UNDP other than in accordance with the terms and conditions of the Contract. The Individual contractor acknowledges and agrees that, from time to time, UNDP may conduct investigations relating to any aspect of the Contract or the award thereof, the obligations performed under the Contract, and the operations of the Individual contractor generally relating to performance of the Contract. The right of UNDP to conduct an investigation and the Individual contractor’s obligation to comply with such an investigation shall not lapse upon expiration or prior termination of the Contract. The Individual contractor shall provide its full and timely cooperation with any such inspections, post-payment audits or investigations. Such cooperation shall include, but shall not be limited to, the Individual contractor’s obligation to make available its personnel and any relevant documentation for such purposes at reasonable times and on reasonable conditions and to grant to UNDP access to the Individual contractor’s premises at reasonable times and on reasonable conditions in connection with such access to the Individual contractor’s personnel and relevant documentation. The Individual contractor shall require its agents, including, but not limited to, the Individual contractor’s attorneys, accountants or other advisers, to reasonably cooperate with any inspections, post-payment audits or investigations carried out by UNDP hereunder.

17. SETTLEMENT OF DISPUTES: AMICABLE SETTLEMENT: UNDP and the Individual contractor shall use their best efforts to amicably settle any dispute, controversy or claim arising out of the Contract or the breach, termination or invalidity thereof. Where the parties wish to seek such an amicable settlement through conciliation, the conciliation shall take place in accordance with the Conciliation Rules then obtaining of the United Nations Commission on International Trade Law (“UNCITRAL”), or according to such other procedure as may be agreed between the parties in writing. ARBITRATION: Any dispute, controversy or claim between the parties arising out of the Contract, or the breach, termination, or invalidity thereof, unless settled amicably, as provided above, shall be referred by either of the parties to arbitration in accordance with the UNCITRAL Arbitration Rules then obtaining. The decisions of the arbitral tribunal shall be based on general principles of international commercial law. For all evidentiary questions, the arbitral tribunal shall be guided by the Supplementary Rules Governing the Presentation and Reception of Evidence in International Commercial Arbitration of the International Bar Association, 28 May 1983 edition. The arbitral tribunal shall be empowered to order the return or destruction of goods or any property, whether tangible or intangible, or of any confidential information provided under the Contract, order the termination of the Contract, or order that any other protective measures be taken with respect to the goods, services or any other property, whether tangible or

16 United Nations Development Programme

intangible, or of any confidential information provided under the Contract, as appropriate, all in accordance with the authority of the arbitral tribunal pursuant to Article 26 (“Interim Measures of Protection”) and Article 32 (“Form and Effect of the Award”) of the UNCITRAL Arbitration Rules. The arbitral tribunal shall have no authority to award punitive damages. In addition, unless otherwise expressly DPR KOREA provided in the Contract, the arbitral tribunal shall have no authority to award interest in excess of the London Inter-Bank Offered Rate (“LIBOR”) then prevailing, and any such interest shall be simple interest only. The parties shall be bound by any arbitration award rendered as a result of such arbitration as the final adjudication of any such dispute, controversy or claim.

18. PRIVILEGES AND IMMUNITIES: Nothing in or relating to the Contract shall be deemed a waiver, express or implied, of any of the privileges and immunities of the United Nations, including its subsidiary organs.

17