Notification of Signed Contract Assignment Agreement and Variation Agreement of Framework Agreement by Sinoma International Engineering Co., Ltd
Sinoma International has a notification as follows:
On behalf of Sinoma International, the Board and board directors avow that there are no false records, misleading statements or major omissions in this notification. The Board and directors bear joint and several responsibility for the authenticity, accuracy and the completeness of the notification.
In December 2008, Sinoma International Engineering Co., Ltd (Sinoma International, The Company) and Nigerian Dangote Group signed Framework Agreement, which stipulates to transfer the general contracted project intended to be executed in Senegal to Nigeria. The specific location of this project will be decided by Dangote Cement Works Ltd. The Contract Price for it is 212,380,561 USD plus 19,675,378 Euro.
On June 9th, 2009, Sinoma International Engineering Co., Ltd and Dangote Cement Works Ltd of Dangote Group signed the Contract Assignment Agreement and the Variation Agreement of the Framework Agreement.
The two Parties agree to transfer the Senegal project mentioned in the Framework Agreement signed in December 2008 to the area near Obajana, Nigeria (230 KM south to Obajana, capital of Nigeria). It is a generally contracted EPC cement production line with capacity of 6000t/d. Meanwhile Variations are also made to the scope of works and the Contract Price. Dangote Cement Works Limited will replace Dangote Senegal SA and execute the contract, which will come into full force and effect on the date when the Contract is transferred.
The Contract Price after Variation: USD134,362,442 for the onshore contract; USD172,837,895 plus EUR26,657,509 for the offshore project. The exchange rate between USD and RMB is fixed at 1: 6.832.
The scope of works after Variation: the whole production line starting from the limestone crushing to cement dispatch with Sinoma responsible for a series of such works as engineering design, equipment procurement, civil construction, installation, commissioning and tests on completion, etc. The contract will come into full force and effect after the Company issues the Advance Payment Bond, and receives the Advance Payment and the L/C. The Time for Completion is 30 months, specifically: 1) clinker target date: 26 months after the Effective Date; 2) cement target date: 1 month after the coming out of clinker (27 months after the Effective Date); 3) performance test period: 3 months after the coming out of cement (which means the time for completion is 30 months after the Effective Date).
The Board of Directors
Sinoma International Engineering Co., Ltd
June 11, 2009
