RAILWAY TRACK UPGRADATION FOR LC POINT NO 202, 203, 204 & 205 AT BPCL HAZIRA DEPOT

(To be executed on plain paper and applicable for all tenders of value above Rs. 1-crore)

Bharat Petroleum Corporation Limited (BPCL) hereinafter referred to as "The Principal"

…................................................................. hereinafter referred to as "The Bidder/ Contractor/ Supplier"

The Principal intends to award, under laid down organization procedures, contract/s for

… ........................................................................................... The Principal values full compliance with all relevant laws

and regulations, and the principles of economic use of resources, and of fairness and transparency in its relations

with its Bidder(s), Contractor(s) and Supplier(s).

In order to achieve these goals, the Principal cooperates with the renowned international Non-Governmental

Organization "Transparency International" (TI). Following TI's national and international experience, the Principal

will appoint an Independent External Monitor who will monitor the tender process and the execution of the contract

for compliance with the principles mentioned above.

Section 1 - Commitments of the Principal:

1. The Principal commits itself to take all measures necessary to prevent corruption and to observe the following

(a) No employee of the Principal, personally or through family members, will in connection with the tender, or

the execution of the contract, demand, take a promise for or accept, for himself/ herself or third person,

any material or immaterial benefit which he/ she is not legally entitled to.

(b) The Principal will, during the tender process, treat all Bidders with equity and reason. The Principal will, in

particular, before and during the tender process, provide to all Bidders the same information and will not

provide to any Bidder confidential/ additional information through which the Bidder could obtain an

advantage in relation to the tender process or the contract execution.

(c) The Principal will exclude from the process all known prejudiced persons.

2. If the Principal obtains information on the conduct of any of its employees which is a criminal offence under the

relevant Anti-Corruption Laws of India, or if there be a substantive suspicion in this regard, the Principal will

inform its Vigilance Office and in addition can initiate disciplinary actions.

Section 2 - Commitments of the Bidder/ Contractor/ Supplier:

1. The Bidder/ Contractor/ Supplier commit itself to take all measures necessary to prevent corruption. He commits

himself to observe the following principles during his participation in the tender process and during the contract

(a) The Bidder/ Contractor/ Supplier will not, directly or through any other person or firm, offer, promise or

give to any of the Principal's employees involved in the tender process or the execution of the contract or

to any third person, any material or immaterial benefit which he/ she is not legally entitled to, in order to

obtain in exchange, any advantage of any kind whatsoever during the tender process or during the execution

of the contract.

(b) The Bidder/ Contractor/ Supplier will not enter with other Bidders into any undisclosed agreement or

Understanding, whether formal or informal. This applies in particular to prices, specifications, certifications,

subsidiary contracts, submission or non-submission of bids or any other actions to restrict competitiveness

or to introduce cartelization in the bidding process.

(c) The Bidder/ Contractor/ Supplier will not commit any offence under the relevant Anti-Corruption Laws of

India; further the Bidder/ Contractor/ Supplier will not use improperly, for purposes of competition or

personal gain, or pass on to others, any information or document provided by the Principal as part of the

business relationship, regarding plans, technical proposals and business details, including information

contained or transmitted electronically.

(d) The Bidder/ Contractor/ Supplier will, when presenting his bid, disclose any and all payments he has made,

is committed to, or intends to make to agents, brokers or any other intermediaries in connection with the

award of the contract.

(e) The Bidder/Supplier/Contractor shall make sure that the terms of this integrity Pact are also adopted by its

sub-contractors, sub-sub-contractors etc, if any and submit such adoption confirmation proof to the

2. The Bidder/ Contractor/ Supplier will not instigate third persons to commit offences outlined above or be an

accessory to such offences.

Section 3 - Disqualification from tender process and exclusion from future contracts:

If the Bidder, before contract award, has committed a transgression through a violation of Section 2 or in any other

form such as to put his reliability or credibility as Bidder into question, the Principal is entitled to disqualify the Bidder

from the tender process or to terminate the contract, if already signed, for such reason.

1. If the Bidder/ Contractor/ Supplier have committed a transgression through a violation of Section 2 such as to

put his reliability or credibility into question, the Principal is also entitled to exclude the Bidder/ Contractor/

Supplier from future contract award processes. The imposition and duration of the exclusion will be determined

by the severity of the transgression. The severity will be determined by the circumstances of the case, in

particular the number of transgressions, the position of the transgressors within the company hierarchy of the

Bidder and the amount of the damage. The exclusion will be imposed for a minimum of 6 months and maximum

2. A transgression is considered to have occurred if the Principal after due consideration of the available evidences,

concludes that no reasonable doubt is possible.

3. The Bidder accepts and undertakes to respect and uphold the Principal's absolute right to resort to and impose

such exclusion and further accepts and undertakes not to challenge or question such exclusion on any ground,

including the lack of any hearing before the decision to resort to such exclusion is taken. This undertaking is

given freely and after obtaining independent legal advice.

4. If the Bidder/ Contractor/ Supplier can prove that he has restored/ recouped the damage caused by him and has

installed a suitable corruption prevention system, the Principal may revoke the exclusion prematurely.

Section 4 - Compensation for Damages:

1. If the Principal has disqualified the Bidder from the tender process prior to the award according to Section

the Principal is entitled to demand and recover from the Bidder liquidated damages equivalent to Earnest Money

Deposit/ Bid Security.

2. If the Principal has terminated the contract according to Section 3, or if the Principal is entitled to terminate the

contract according to Section 3, the Principal shall be entitled to demand and recover from the Contractor/

Supplier liquidated damages equivalent to Security Deposit/ Performance Bank Guarantee.

3. The Bidder agrees and undertakes to pay the said amounts without protest or demur subject only to condition

that if the Bidder/ Contractor/Supplier can prove and establish that the exclusion of the Bidder from the tender

process or the termination of the contract after the contract award has caused no damage or less damage than

the amount of the liquidated damages, the Bidder/ Contractor/ Supplier shall compensate the Principal only to

the extent of the damage in the amount proved.

Section 5 - Previous Transgression:

1. The Bidder declares that no previous transgression occurred in the last 3 years with any other Company in any

country conforming to the TI approach or with any other Public Sector Enterprise in India that could justify his

exclusion from the tender process.

2. If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender process or the

contract, if already awarded, can be terminated for such reason.

Section 6 - Equal treatment of all Bidders/ Contractors/ Suppliers/ Subcontractors:

1. The Bidder/ Contractor/ Supplier undertake to demand from all subcontractors a commitment in conformity

with this Integrity Pact, and to submit it to the Principal before contract signing.

2. The Principal will enter into agreements with identical conditions as this one with all Bidders, Contractors/

Suppliers and Subcontractors.

3. The Principal will disqualify from the tender process all Bidders who do not sign this Pact or violate its provisions.

Section-7 Punitive Action against violating Bidders/ Contractors/ Suppliers/ Subcontractors:

If the Principal obtains knowledge of conduct of a Bidder, Contractor, Supplier or Subcontractor, or of an employee

or a representative or an associate of a Bidder, Contractor, Supplier or Subcontractor which constitutes corruption,

or if the Principal has substantive suspicion in this regard, the Principal will inform the Vigilance Office.

Section-8 Independent External Monitors:

1. The CVC has appointed competent and credible Independent External Monitors for this Pact.

Trimbake The task of the Monitor is to review independently and objectively, whether and to what extent the parties

Digitally signed

comply with the obligations under this agreement.

Trimbake 2. The Monitor is not subject to instructions by the representatives of the parties and performs his functions

neutrally and independently. He reports to the Chairperson of the Board of the Principal.

3. The Bidder/ Contractor/ Supplier accepts that the Monitor has the right to access without restriction to all

Project documentation of the Principal including that provided by the Bidder/ Contractor/ Supplier. The Bidder/

Contractor/ Supplier will also grant the Monitor, upon his request and demonstration of a valid interest,

unrestricted and unconditional access to this project documentation. The same is applicable to Subcontractors.

The Monitor is under contractual obligation to treat the information and documents of the Bidder/ Contractor/

Supplier/ Subcontractor with confidentially.

4. The Principal will provide to the Monitor sufficient information about all meetings among the parties related to

the Project provided such meetings could have an impact on the contractual relations between the Principal and

the Bidder/Contractor/Supplier. The parties offer to the Monitor the option to participate in such meetings.

5. As soon as the Monitor notices, or believes to notice, a violation of this agreement, he will so inform the

Management of the Principal and request the Management to discontinue or heal the violation, or to take other

relevant action. The Monitor can in this regard submit non-binding recommendation. Beyond this, the Monitor

has no right to demand from the parties that they act in a specific manner, refrain from action or tolerate action.

However, the Independent External Monitor shall give an opportunity to the Bidder/Contractor/Supplier to

present its case before making its recommendations to the Principal.

6. The Monitor will submit a written report to the Chairperson of the Board of the Principal within 8 to 10 weeks

from the date of reference or intimation to him by the 'Principal' and, should the occasion arise, submit

proposals for correcting problematic situations.

7. If the Monitor has reported to the Chairperson of the Board a substantiated suspicion of an offence under

relevant Anti-Corruption Laws of India, and the Chairperson has not, within reasonable time, taken visible action

to proceed against such offence or reported it to the Vigilance Office, the Monitor may also transmit this

information directly to the Central Vigilance Commissioner, Government of India.

8. The word 'Monitor' would include both singular and plural.

Section-9 Pact Duration:

This Pact begins when both parties have legally signed it. It expires for the Contractor/ Supplier 12-months after the

last payment under the respective contract, and for all other Bidders 6 months after the contract has been awarded.

If any claim is made/ lodged during this time, the same shall be binding and continue to be valid despite the lapse of

this pact as specified above, unless it is discharged/ determined by Chairperson of the Principal.

Section-10 Other Provisions:

1. This agreement is subject to Indian Law. Place of performance and jurisdiction is the Registered Office of the

Principal, i.e. Mumbai. The Arbitration clause provided in the main tender document/ contract shall not be

applicable for any issue / dispute arising under Integrity Pact.

2. Changes and supplements as well as termination notices need to be made in writing. Side agreements have not

3. If the Bidder/Contractor/Supplier is a partnership or a consortium, this agreement must be signed by all partners

or consortium members.

4. Should one or several provisions of this agreement turn out to be invalid, the remainder of this agreement

remains valid. In this case, the parties will strive to come to an agreement to their original intentions.

5. Any Bidder/Contractor/Supplier entering into Integrity Pact, aggrieved by any decision/action of the Principal,

shall approach the IEMs and await their decision before pursuing any other remedy available to him in law.

For the Principal for the Bidder/ Contractor/ Supplier

Place-Mumbai Witness-1: ………………………………………

(Signature/ Name/ Address)

Date: Witness-2: ……………………….………………

(Signature/ Name/ Address)

The Independent External Monitor (IEM) should be contacted on their mobile /email, only if there

are any complaints related to the tender. Details of IEM (appointed by CVC) are mentioned below-

Shri. Ramabhadran Shri. Jagadip Narayan Shri. Ganesh Vishwakarma (Ex-

Ramanujam Singh (IAS- Retd) Director, SAIL)

ADDRESS ADDRESS ADDRESS

44/24, 3rd trust Cross Street, Address : C- 54, Flat No 1801, Pavillion Height-4,

Mandavelipakkam, Chennai Bharatendu Harischandra Jaypee Greens, Wish Town,

600028. Marg, Sector 128, Noida, Gautam Budha

Anand Vihar, New Delhi- Nagar

[email protected] [email protected] [email protected]