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About us Members Positions Issue May 2017
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Dear Reader,

All presentations and photos from the latest EIC Conference, held in Copenhagen on 20-21 April 2017, are available for download on the EIC conference website. The upcoming EIC Autumn Conference will be held in Paris on 12-13 October 2017 with a Workshop on “The Global Infrastructure Financing Gap”. Save the date!

Sincerely,
Your EIC Team

Headlines
EIC Spring Conference in Copenhagen

On 20-21 April 2017, EIC Delegates, Associated Member Companies and Partners met for the spring 2017 EIC Conference jointly organised by EIC and its Danish Member Federation, Dansk Byggeri, in Copenhagen. Read more...

EIC Meeting with DG DEVCO on new EU External Investment Plan

A delegation of EICs Working Group “Africa”, led by its Chairman Hervé Ronot, met on 25 April 2017 in Brussels with the Director for Sustainable Growth and Development of the European Commission’s DG DEVCO, Roberto Ridolfi. Read more...

Meeting of the EIC Working Group “Contract Conditions“ 

The EIC Working Group “Contract Conditions” met on 22 May 2017 in London with its two associated UK law firms, Pinsent Masons and Fenwick Elliott, in order to exchange views on the pre-release version of the FIDIC Yellow Book update. Read more...


News from Bruessels
Review of the EIB Complaint Mechanism

The European Investment Bank (EIB) Group will soon be launching a public consultation on the review of the EIB Group Complaints Mechanism Policy. Read more...


Multilateral & International Issues
50th Annual Meeting of the Asian Development Bank

Held from 4-7 May 2017 under the theme “Building Together the Prosperity of Asia,” the Annual Meeting of the Asian Development Bank (ADB) was also a celebration of ADB’s 50 years of development work in Asia and the Pacific. Read more...

Brief Notices

G20 launches Global Infrastructure Connectivity Alliance 

The Global Infrastructure Connectivity Alliance (GICA) strives to promote cooperation, knowledge exchange, and meaningful progress in the field of global inter-connectivity. GICA is a G20 initiative whose Secretariat is hosted by the World Bank. The objectives of the alliance are, among others, to optimise infrastructure financing for infrastructure connectivity programs and to develop solutions to close gaps in global infrastructure connectivity. Read more...


Members' Corner

ICC revises International Arbitration Rules

On 1st March 2017 the International Chamber of Commerce (ICC) revised its international arbitration rules. These are the most widely used international arbitration rules worldwide, and are particularly important for the construction industry.  A large number of ICC cases involve construction, engineering and energy law disputes from all around the world.  The ICC is the default arbitration institute for the FIDIC contracts. An important new process is the “expedited procedure”.  The rules now provide for a sole arbitrator to be appointed quickly, and to deliver an award within six months for a dispute with a value less than US$2 million.  
Read the full article by Nicholas Gould, Partner Fenwick Elliott LLP and Visiting Professor, King’s College London...



 
Headlines

EIC Spring Conference in Copenhagen

Copenhagen   On 20-21 April 2017, EIC Delegates, Associated Member Companies and Partners met for the spring 2017 EIC Conference jointly organised by EIC and its Danish Member Federation, Dansk Byggeri, in Copenhagen.

Workshop on “Sustainable Solutions for Urban Areas”

The customised Workshop dealt with the topic of “Sustainable Solutions for Urban Areas” and examined the respective business opportunities for European international contractors in the light of the UN Sustainable Development Goals (SDGs) and was opened by Denmark’s Foreign Minister, Mr. Anders Samuelsen, who emphasised the importance of the Sustainable Development Goals as a roadmap for shaping and implementing Danish national policies and regulation. The inter-active discussion focused particularly on the SDGs with a significant impact on the construction industry, namely Clean Water and Sanitation (Goal 6), Industry, Innovation and Infrastructure (Goal 9) and Sustainable Cities and Communities (Goal 11).

European contractors contribute to the UN Sustainable Development Goals

It was established that European international contractors contribute in many ways to achieve the SDGs in relation to urban areas. For instance, they build public transport systems, such as light rail, tram and metro transit systems, which provide useful alternatives to carbon intensive urban individual transport, they provide “green” residential and business premises which offer our clients lower operating costs and they deliver solutions to mitigate the effects of climate change and the severity of extreme events, such as flooding, heat waves and storm surges, in particular in coastal areas.

Links:
Conference Presentations and Photos

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Headlines

EIC Meeting with DG DEVCO on new EU External Investment Plan 

Brussels   A delegation of EICs Working Group “Africa”, led by its Chairman Hervé Ronot, met on 25 April 2017 in Brussels with the Director for Sustainable Growth and Development of the European Commission’s DG DEVCO, Roberto Ridolfi.

New EU PRAG for Design-Build projects

The EU Commission informed EIC that the revision of the tendering and contractual documents for Design-Build contracts and the preparation of the tendering and contractual documents for Design-Build and Operate contracts are carried out concomitantly. EIC recalled its critical position with respect to the somewhat unfair General Contract Conditions, as published in the EU PRAG in January 2017, cf. http://ec.europa.eu/europeaid/prag/document.do?nodeNumber=5.8, in particular with regard to the far-reaching responsibilities of the contractor, and warned that, as a consequence, the EU Commission should expect in that case higher bid prices.

New European Fund for Sustainable Development (EFSD)

DG DEVCO further briefed EIC about the new EU External Investment Plan (EIP), which is currently under preparation. Under this initiative, the EU will move forward its development agenda from providing grants to public partners to providing guarantees to the private sector through various “investment windows” to be launched after consultation with the EU Member States. Under a new EU Regulation, which should be adopted during summer 2017, the EU is launching for the first time a contingency from the EU budget for other Development Finance Institutions other than the EIB.

The EIC delegation concluded that EIC will need to illustrate both the constrains and the preconditions for European international contractors to take advantage of the new investment opportunities under the EIP. To start the discussion, the EIC Secretariat shall organise another Meeting of the EIC Working Group “Africa” end of June in Paris.

Links:
Draft Regulation

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Headlines

Meeting of the EIC Working Group “Contract Conditions“

London   The EIC Working Group “Contract Conditions” met on 22 May 2017 in London with its two associated U.K. law firms, Pinsent Masons and Fenwick Elliott, in order to exchange views on the pre-release version of the FIDIC Yellow Book update.

New Risk Allocation raises insurance issues

EIC’s Working Group “Contract Conditions” and associated members alike felt uncomfortable with the proposed new Risk Allocation, as published in the December 2016 version, attempting to limit the Employer’s risks to a closed catalogue of risks and subjecting the Contractor to “all other risks than those listed” in the catalogue. Such risk allocation might be considered by the insurance market as uninsurable, in which case the new contracts suite would be dysfunctional in one of its most critical aspects. Participants also shared the view that any unlimited liability on the Contractor for direct and consequential damages and losses as a result of errors in the design of the Works not being fit for purpose could not be reconciled with the requirements of a fair and balanced standard contract form.

NEC family of contracts to be updated in June

The Working Group “Contract Conditions” also discussed with its U.K. associated members about the new features to be expected from the publication of the new suite of NEC Contracts, the form which has been successfully used on some high profile UK projects, including the London Olympics, Heathrow Terminal 2, HS2 and Crossrail. The update suite of contracts, titled “NEC4”, will become available within the next few weeks and aspires to enable project collaboration not only across the UK, but also internationally. The Working Group considered the possibility to comment publicly on the structure and principles of the NEC4 form following its publication and whether or not it can be used in civil law countries.

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News from Bruessels

Review of the EIB Complaint Mechanism

Luxemburg   The European Investment Bank (EIB) Group will soon be launching a public consultation on the review of the EIB Group Complaints Mechanism Policy.

EIB Complaints Mechanism in place since 2010

The EIB Complaints Mechanism Principles, Terms of Reference and Rules of Procedure provides members of the public who are, or feel, affected by the Bank's decisions, actions or omissions with a comprehensive tool enabling an alternative and pre-emptive resolution of disputes. The current EIB Complaints Mechanism Policy was approved by the Board of Directors on 2 February 2010 following a public consultation that took place in 2009. 

Publication of draft revised policy and consultation meeting

The public consultation process will be officially launched with the publication of a draft revised policy, which is expected on 29 May 2017. A consultation meeting is planned to take place on 29 June 2017 in Brussels. This meeting will be open to all stakeholders interested in a direct exchange with EIB staff about the issues at stake within the review. More information, including time and venue of the meeting, will be announced in the coming weeks.

Links:
EIB Consultation Complaints Mechanism

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Multilateral & International Issues

50th Annual Meeting of the Asian Development Bank (ADB) 

Yokohama   Held from 4-7 May 2017 under the theme “Building Together the Prosperity of Asia,” the Annual Meeting of the Asian Development Bank (ADB) was also a celebration of ADB’s 50 years of development work in Asia and the Pacific.

Ongoing Consultations for a new long-term strategy

During the meeting, ADB President, Mr. Takehiko Nakao, explained that the institution was elaborating a new long-term strategy called “Strategy 2030”. Investment in infrastructure through extensive cooperation with the private sector shall be an ADB priority under Strategy 2030, including enhanced support for infrastructure projects that incorporate advanced technologies. The ADB shall especially focus on how to promote investment in high-calibre infrastructure projects in emerging nations.

In 2016, the total ADB operations, including co-financing and technical assistance, reached $31.7 billion. ADB’s loan and grant approvals reached a record high of $17.5 billion, a 9% increase from the previous year. Climate finance reached $3.7 billion, up from $2.6 billion in 2015. Co-financing with public and private partners increased to $13.9 billion.

Links:
ADB Factsheet

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Picture Credits: eyetronic / fotolia.com

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