Unless defined, indicated or the context required otherwise, all capitalized terms used in this letter will bear the meaning ascribed to them in the Offshore Procurement Contract.
Subject to Clause 37.5“Duty to Notify” of the Offshore Procurement Contract, the Offshore ProcurementContractor hereby notifies the Owner about his awareness of an Relief Eventpursuant to the Clause 37.1 “Right to Relief”, 37.2 “Certain Definitions” and37.3 “Threshold Requirements” as follows:
Such “Relief Event”we call it a logistics relief event, it’s the consequence resulted from the conflict between xxxx. Currently, the conflict area is not onlylimited to the Gaza Strip, it has been expanded to part of the the Red Sea,which is near the sea area of Yemen. In the sea area of Yemen, the vessel traffic is under the attack danger from certain military organization withinYemen, which may force the forwarders to change the shipping routes so as to avoid such risks, one of the alternatives is to adopt the shipping route rounding the Cape of Good Hope.
In light of the uncontrollable nature of this international event, as stipulated in Clause 37.3 (d) regarding events beyond reasonable control, both the impacts and potential mitigation measures are subject to fluidity. As per our obligations outlined in Clause 37.6, an initial analysis has been conducted as follows. Provided that the Project is located in xxx, in theview of forwarders, currently there are two potential alternatives, one is to adopt the shipping route rounding the Cape of Good Hope, the other is to adopt all land transportation. As per the forwarders’ estimation,in general, the difference of the delivery time between these two alternatives and the original is as follows:
Sr.No. Shipping Route Estimated Delivery Time to Site
1 Adoption of Red Sea Shipping Route 60 days
2 Adoption of Rounding the Cape of Good Hope Route 70 days
3 Adoption of All Land Transportation 80 days
Apparently, either alternative is adopted, the delivery time will be affected and prolonged. To mitigate such impacts to the delivery time, the initial measures we can workout may include squeezing the PO issuance time, equipment manufacturing time,FAT time etc. In the meantime, the joint efforts by both Owner and Procurement Contractor should be advocated and required to the maximum extent. Such joint efforts can be especially reflected in expediting the design approval.
Notwithstanding any possible alternative or any mitigation measure, the impacts to the implementation cost of the logistics may not be avoided. Currently, the forwarders are still assessing the impacts from the risks resulted from theconflict sea area near Yemen. Upon receiving the updates from the forwarders,the Procurement Contractor shall immediately update the same to the Owner. Such updates may include both the time and cost impacts to the Project Implementation along with respective potential mitigation measures.
In the event the xxx Conflict is unlikely to end within a short time, its duration will cross over the Project Construction Period, especially when its duration crosses over the bulk shipment time. Such an event shall constitute a Relief Event which we name it a a logistics relief event, as it fully satisfiesthe Clause 37.3 “Threshold Requirements”. Under such circumstance, the Procurement Contractor shall exercise his rights under Clause 37.1 “Right toRelief”, seeking for a relief from the Owner, meanwhile the Procurement Contractor shall assist the Owner with the efforts to the maximum level toacquire the equivalent relief under the PPA.
It is imperative to emphasize that the dynamic nature ofthe situation requires continuous assessment. We earnestly request the Owner's proactive response and collaboration, as outlined in Clause 37.1(a), to facilitate prompt adjustments to our strategies in adherence to contractual obligations. Such collaboration is essential to minimizing the adverse effectsof the event on the project's interests, aligning with the principlesarticulated in the contract.
The letter is without prejudice to the Offshore Procurement Contractor’s rights, interests, and remedies under the Offshore Procurement Contract, other ancillary agreements, and the applicable law, and all such rights are hereby reserved. All legal rights are fully reserved.
网友评论