PERFORMANCE GUARANTEE (Bank Guarantee)

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					                                                                                        Form 5.9




           PERFORMANCE GUARANTEE (Bank Guarantee)


Employer/Beneficiary           Deutsche Gesellschaft für Technische Zusammenarbeit
                               German Technical Cooperation

                               INTEGRATED FOOD SECURITY PROGRAME
                               TRINCOMALEE (IFSP) - FFW 02.3836.0
                               42 Huskison Street, 31000 Trincomalee


Contractor:                    …………………………………………………………………

Contract date:                 …………………………………………………………………

Contract No:                   …………………………………………………………………

                               Project No: FFW 02.3836.0

Object of supply/Performance:…………………………………………………………………

Contract price                 LKR……………………………………………………………

We hereby undertake vis-à-vis the beneficiary to guarantee fulfilment of all of the
contractor’s obligations arising from the afore-mentioned contract, including any
incidental claims, up to the amount of

                               LKR……………………..(10% of the contract price).
                               (in words:……………………………………………..).

Explicitly waiving all objections and defences, we undertake to render said payment
upon receipt of the beneficiary’s first written demand, provided that the latter states that
the contractor has failed to observe all or part of his contractual obligations.

This bank guarantee shall take effect with the award of the contract to the contractor
only. It shall expire on return of the guarantee document.

The law of the Socialist Republic of Sri Lanka shall govern this guarantee. The place of
jurisdiction for all disputes arising from this guarantee shall be Colombo, Sri Lanka.



…………………………..
(Signature of the guarantor)