BANK OF MAURITIUS REQUEST FOR PROPOSAL (RFP) Consultancy Services for the Implementation of IFRS 9 by. Bank of Mauritius

Transcription

1 BANK OF MAURITIUS REQUEST FOR PROPOSAL (RFP) Consultancy Services for the Implementation of IFRS 9 by Bank of Mauritius MARCH 2018

2 1 BID Information Sheet 4 2 INTRODUCTION STATEMENT OF PURPOSE STATEMENT OF INTENT... 6 PART A - SUPERVISION DIVISION.. 6 A CONTEXT OF ASSIGNMENT... 6 A.1 SCOPE AND DELIVERABLES... 6 A.1.1 TO CONDUCT A REVIEW AND ASSESSMENT... 6 A.1.2 TO UNDERTAKE IMPACT ASSESSMENT... 8 A.1.3 DEVELOPMENT OF MACROECONOMIC VARIABLES... 8 A.1.4 TRAINING AND KNOWLEDGE... 9 A.2 PROJECT DURATION PART B - ACCOUNTING AND BUDGETING DIVISION B CONTEXT OF ASSIGNMENT B.1 SCOPE AND DELIVERABLES B.1.1 TRANSFORMATION ROADMAP FOR TRANSITION TO IFRS B.1.2 CLASSIFICATION AND MEASUREMENT. 11 B.1.3 POLICIES, PROCESSES AND GOVERNACE FRAMEWORK B.1.4 MODEL DEVELOPMENT B.1.5 ACCOUNTING, FINANCIAL DESIGN AND REPORTING B.1.6 HEDGE ACCOUNTING B.1.7 TRAINING PLANS AND ONGOING ASSISTANCE B.2 PROJECT DURATION INSTRUCTIONS TO BIDDERS AND GENERAL CONDITIONS PRELIMINARIES AND GENERAL INFORMATION ELIGIBLE BIDDERS CONSULTANT PROFILE PAYMENT TERMS QUALIFICATIONS OF BIDDERS COST OF BIDDING CONTENTS OF BID DOCUMENT REQUEST FOR CLARIFICATIONS BID CURRENCIES VALIDITY OF BIDS AMENDMENT OF DOCUMENTS Page ii

3 3.12 FORMAT AND SIGNING OF BIDS SEALING AND MARKING OF BIDS DEADLINE FOR SUBMISSION OF BIDS MODIFICATION AND WITHDRAWALS OF BIDS PRESENTATION TO THE BANK PERFORMANCE BOND OR BANK GUARANTEE CONTRACT AGREEMENT AND GOVERNING LAW 20 4 NON-DISCLOSURE AND CONFIDENTIALITY 20 5 LIQUIDATED DAMAGES...21 Page iii

4 1 BID Information Sheet Name of Bid Consultancy Services for IFRS 9 Name of address of issuer Bank of Mauritius Sir William Newton Street Port Louis Mauritius Addressee Chairperson - Tender Committee Tender.Committee@bom.mu Closing date of bid 6 April 2018 Validity Period 150 days as from closing date of bid e-tendering Not Available Deadline for sending queries 23 March 2018 Bid Currency Mauritian Rupees (MUR) for local bidders and United States Dollar (USD) for foreign bidders Language of Bid English Page 4

5 2 INTRODUCTION Request for proposal (RFP) for the provision of Consultancy Services with respect to the Implementation of IFRS 9 by the Bank of Mauritius. 2.1 Statement of Purpose The Bank of Mauritius (Bank) is the Central Bank of the Republic of Mauritius. Its primary objective is to maintain price stability and to promote orderly and balanced economic development. Other objectives of the Bank are to regulate credit and currency in the best interests of the economic development of Mauritius and to ensure the stability and soundness of the financial system of Mauritius. The Bank is also responsible for the regulation and supervision of the operations and activities of financial institutions under its purview. For this purpose, the Bank may, from time to time issue instructions or guidelines or impose requirements on or relating to the operations and activities of financial institutions. In July 2014, the International Accounting Standards Board introduced the final version of International Financial Reporting Standards 9- Financial Instruments (IFRS 9) which addresses the classification, measurement, impairment and hedge accounting for financial instruments. In particular, IFRS 9 introduced an expected loss impairment model and replaced International Accounting Standard 39- Financial Instruments: Recognition and Measurement, which recognised the impairment of financial assets using an incurred loss model. IFRS 9 addresses the accounting for financial instruments and contains three main topics: classification and measurement of financial instruments, impairment of financial assets and hedge accounting. The effective date for the adoption of IFRS 9 was 1 January The Bank is responsible for the preparation and fair presentation of the financial statements in conformity with the accounting principles applicable to central banks and best international practices pursuant to section 31(1) of the Bank of Mauritius Act 2004 and in accordance with International Financial Reporting Standards. In a similar manner, the Bank needs to review its Accounting systems and processes for the purpose of implementing IFRS 9, with Date of Initial Application (DIA) being 1st July The Bank is seeking consultancy services for the implementation of the IFRS 9 for both the Supervision and Accounting and Budgeting Divisions ( the Project ). The requirements for the Supervision Division are elaborated in Part A of the bid documents while those for the Accounting and Budgeting Division are in Part B of the bid documents. The RFP document is not a recommendation, an offer or invitation to enter into a contract, agreement or any other arrangement, in respect of the services. The provision of the services is subject to observance of a selection process and appropriate documentation being agreed between the Bank and any successful bidder(s) as identified by the Bank, after completion of the selection process as detailed in this document. Page 5

6 2.2 Statement of Intent The general intent of this document is to identify the most qualified bidder(s) to assist the Bank of Mauritius ( BOM or Bank ) for the implementation of IFRS 9 for both the Supervision and Accounting and Budgeting Divisions. This document is meant for the exclusive purpose of Bidding as per the Specifications, Terms, Conditions and Scope indicated and shall not be transferred, reproduced or otherwise used for purposes other than for which it is specifically issued. PART A SUPERVISION DIVISION A. Context of Assignment The Bank has to set up a supervisory and regulatory framework for ensuring that financial institutions under its purview comply with the requirements of IFRS9 for preparation of their financial statements. The Bank will implement the above framework to, amongst others, review financial institutions existing systems, databases and related internal controls as well as models/tools used to accurately classify and measure financial instruments and to calculate impairment in line with IFRS 9. The Bank accordingly invites RFP from consultant(s) of international repute and proven track record for developing a supervisory and regulatory framework in view of the implementation of IFRS 9 by financial institutions under the purview of the Bank as per scope and deliverables detailed below. A.1 Scope and of Services A.1.1 To conduct a review and an assessment of the implementation of IFRS 9 by financial institutions licensed by the Bank. a) To collect information from financial institutions through surveys and/or through participation in meetings, workshops and other forums in order to evaluate: i) whether policies and procedures, risk management framework and governance adopted by financial institutions pertaining to the implementation of IFRS 9, are adequate; Page 6

7 ii) iii) iv) the impact of IFRS 9 on other accounting standards and its relative implications for financial institutions; the processes put in place by financial institutions to know the level, nature and components of credit risk upon initial recognition of the lending exposure and to ensure that subsequent changes in credit risk can be tracked and determined; the criteria adopted by financial institutions for classifying an asset under the different stages and the analysis conducted for transferring an asset from stage 3 to stage 2 and stage 2 to stage 1 and vice versa; v) the criteria considered by financial institutions for assessing the impact of forwardlooking information and macroeconomic factors; vi) vii) the basis used by financial institutions for creating groups of portfolios of exposures with shared credit risk characteristics; the Expected Credit Loss (ECL) assessment and measurement methods to be applied to each exposure or portfolio and the appropriateness thereof; viii) the appropriateness of the inputs, data and assumptions used in the allowance estimation process (such as historical loss rates, PD, LGD estimates and economic forecasts), how the life of an exposure or portfolio is determined (including how expected prepayments have been considered), the historical time period over which loss experience is evaluated, and any qualitative adjustments; ix) conditions that would generally lead to changes in ECL measurement methods, inputs or assumptions from period to period (eg the time horizon over which expectations to be formed would change; or the circumstances under which an exposure originally monitored on a collective basis would be removed from the group for individual assessment); x) the relevant internal and external factors that may affect ECL estimates, such as underwriting standards and industry, geographical, economic and political factors; xi) xii) the rationale used to assess and measure ECL; the financial institutions policies and procedures on write-offs, restructuring and recoveries of exposures; xiii) the validation process of the models used for ECL measurement (eg back tests); xiv) the process used for valuation of collateral in the computation of the ECL and provisions; xv) the overall adequacy of allowances. Page 7

8 b) To design appropriate supervisory tools with respect to the deliverables above and provide assistance to the Bank s staff in interpreting and analysing the results of the IFRS 9, impact appraisal by financial institutions from a regulatory point of view and its potential bearing on the stability and performance of the financial sector. The assistance should be adequately documented through the drafting of a manual. c) To carry out an impact analysis of IFRS 9 on financial institutions financial position and performance (including profit and capital). d) To review the adequacy of the comparatives (i.e financial statements of past year) A.1.2 To undertake impact assessment of IFRS 9 implementation on the Bank s current supervisory and regulatory framework. a) To conduct a gap analysis between the current regulatory framework for credit impairment and the requirements under IFRS 9. The gap analysis will consist of: i) an impact assessment of the requirements under IFRS 9 on the existing regulatory framework to identify any amendment to be made thereon; ii) a review of the existing Guideline on Credit Impairment Measurement and Income Recognition, Guideline on Public Disclosure of Information and Guideline on Credit Risk Management for the implementation of IFRS 9 and credit impairment returns submitted to the Bank. b) To provide the Bank with a report on the gap analysis, propose revisions to existing guidelines and develop appropriate supervisory tools pertaining to IFRS 9 to assist the Bank s staff for the oversight of financial institutions. c) To participate in meetings, workshops, videoconferences and other forums in view of providing guidance to the Bank s staff in assessing progress achieved in the IFRS 9 application by financial institutions and advising those institutions facing difficulties in their implementation efforts. d) To provide support on technical aspects post implementation of the supervisory framework. Page 8

9 A.1.3 To use information collected by the Mauritius Credit Information Bureau (MCIB) on an aggregate basis in view of developing macroeconomic variables (such as probability of default, loss given default and expected loss) for IFRS 9. a) To conduct an examination of data and information currently collected by the MCIB in view of determining their use and enhancement for macro-economic and default modelling; b) To conduct a gap assessment between the information available in the MCIB database and the requirements of IFRS 9; c) To draft a report on how the MCIB database may be used in the implementation of IFRS 9 by financial institutions; d) To build a roadmap to improve the collection of information by the MCIB and the leveraging of the information for the purpose of implementing IFRS 9. A.1.4 To provide training and knowledge transfer to the Bank a) To identify knowledge and skills gaps of staff involved in the supervision of financial institutions in view of the implementation of IFRS 9; b) To provide the Bank with a detailed capacity building programme to meet the training requirements of the staff encompassing all features of IFRS 9 and the deliverables. The programme should include the following; i) the duration of the training; ii) a general awareness session providing an overview of the requirements of the IFRS 9 for all levels of staff and management; iii) training on the supervisory and regulatory framework throughout the project implementation. iv) manual of procedures, including checklists, and learning materials for the ongoing monitoring of financial institutions and the assistance of staff during on-site examinations. c) The appropriate training manual should be provided to the Bank at mutually agreed stages; Page 9

10 d) The training programme should be conducted within the premises of the Bank; A.2 Project Duration The implementation of the project for the Supervision Division should last for a period of three years as from the award of the contract to the successful bidder. PART B ACCOUNTING AND BUDGETING DIVISION B. Context of Assignment The Bank is seeking consultancy services with respect to the technical and operational issues involved with the implementation of IFRS 9 at the Bank. The consultant will be expected to meet the undermentioned objectives a. Conduct a readiness assessment with regard to IFRS 9 requirements and develop a transformation roadmap to adopt the new requirements within stipulated timelines; b. Design and develop different work streams encompassing Classification & Measurement, Policy, Process and Governance, Model Development, Accounting & Financial reporting, Hedge Accounting and Training & Knowledge Transfer. In order to achieve the above objectives and functions, the following activities will, as a minimum, be required for the implementation of IFRS 9 by the Bank: (i) Assessment of the current state of affairs namely with regard to the Strategic Asset Allocation (SAA) adopted by the Bank, investment strategy, business models and the various investment portfolios. (ii) Classification and measurement for different financial assets. (iii) Assessment and enhancement of policies, processes and governance framework. (iv) Model identification and development for the computation of Expected Credit Loss (ECL) for different financial assets. (v) Assessment and enhancement to accounting and reporting requirements. (vi) Application of Hedge Accounting Valuation methodologies and advise on appropriate Accounting software/solutions. (vii) Develop training plans and conduct training/workshops. Page 10

11 B.1 Scope and of Services B.1.1 Transformation Roadmap for Transition to IFRS 9 a) To assess SAA, investment strategy, business model, various portfolios, low risk option and impairment estimation. b) To assess other financial assets. c) To produce a gap assessment and transformation plan. d) To produce a road map with clear milestones of deliverables and targets. B.1.2 Classification and Measurement a) To identify business model & cash flow characteristics to drive classification and measurement of all financial assets. b) To identify practical expedient method for assets with low risk. c) To conduct Solely Payments of Principal and Interest (SPPI) tests and Business Model tests on the domestic and foreign financial assets. d) To advise on possible scenarios for business models based on existing portfolio holdings and potential changes future financial assets might bring to the business model. e) To analyse the implications of assigning the individual financial assets of the Bank into Amortised Cost, Fair value through other comprehensive income (FVOCI) and Fair value through profit and loss (FVTPL) models. f) To document the process for ongoing SPPI & Business Model tests for future use. B.1.3 Policies, Processes and Governance Framework a) To review accounting policies with respect to IFRS 9 requirements and propose amendments, if any. b) To assess credit risk policy and advise on sound credit risk practices involved with the implementation and on-going application of ECL accounting frameworks. Page 11

12 c) To design standard operating procedures for IFRS 9 including internal controls that can be added to ensure operational effectiveness as well as efficiency. d) To advise on interaction and responsibilities between various divisions with regard to credit risk modeling approaches, impairment calculations, data management and governance. B.1.4 Model Development a) To review existing portfolio holdings to identity assets with low credit risk for practical expedient approach and high credit risks for impairment. b) To develop Impairment models for high risk financial assets based on the business model assessment for financial assets. c) To develop a sound statistical ECL model for 12 month and lifetime expected losses. d) To implement an ECL model for domestic and foreign assets and provide advice on sources of data such as macroeconomic data to be used in impairment models. e) To design the framework for the estimation of Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) for computation of Expected Credit Loss. f) Develop debit/credit value adjustments computation models. B.1.5 Accounting, Financial Design and Reporting a) To assess the impact of financial assets designation on financial position. b) To advise on accounting entries for reclassification and transition on adoption of IFRS 9. Also, to assess the chart of accounts and propose opening of new accounts, if any. c) To assist in updating the Bank s Accounting Procedures Manual and accounting workflows. d) To assist in setting out accounting policies and disclosures for the current period as well as comparative period notes. e) To provide guidance on additional schedules required to produce in financial statements when transiting and for subsequent reporting periods. Page 12

13 B.1.6 Hedge Accounting a) To conduct a comprehensive practical understanding of Hedge Accounting for derivatives for the Bank s staff. b) To assist in accounting for various derivatives instruments including but not limited to Interest Rate Swaps, Cross Currency Swaps, Swaps, Swaptions, Options (including both transaction related and time period related hedging), Currency Forwards, Interest Rate Caps and Floors, Futures, Single name index and Credit Default Swaps (CDS). c) The applicable accounting framework for cash bonds when there is intensive use of derivatives to manage factor exposure. d) To assist in writing up formal documentation on justifying the purpose of doing hedge accounting and elaborating on mechanics of effectiveness measurement taking into account risk management strategy and objectives. e) To write procedures manual for derivatives accounting. f) To assess current accounting platform for handling derivatives accounting and make recommendations thereon. B.1.7 Training Plans and Ongoing Assistance a) To perform training needs assessment to determine training required to help the Bank s personnel throughout the transition. b) To develop a training programme suited to the Bank s requirements and organise workshops to ensure all the Bank s personnel are properly acquainted with the subject matter. c) To provide guidance documentation for the Bank s personnel to use on ongoing basis. d) Post implementation review of items including but not limited to, models and validation of accounting workflows and data quality. Page 13

14 B.2 Project Duration The implementation of the project for the Accounting and Budgeting Division should be for a period of 18 months as from the award of the contract to the successful bidder. 3 INSTRUCTIONS TO BIDDERS AND GENERAL CONDITIONS 3.1 Preliminaries and General Information Bidders may submit their proposals for either Part A or Part B or both Parts of the RFP. Part A is independent of Part B. There are different criteria and timelines for each Part. Bidders must submit separate costs for Part A and Part B The Bank reserves the right, if necessary, to select the most appropriate bidder or combination of proposals from different bidders Bidders may note that there are different selection criteria for Part A and Part B. Qualification for one Part does not automatically entail eligibility for the other Part Bidders must take note of the different timelines of the two Parts. 3.2 Eligible Bidders Bidders must prove that they have already provided similar services to central Banks or related financial institutions The bidder must warrant that it is a going concern/firm, financially solvent, i.e., able to meet all its debts as and when they fall due. The Bidder s net worth should be positive The bidder should have had an annual turnover of Rs100 million or more in each of the previous three financial years i.e , & The bidder should have made profits for the past three years in succession i.e , & The bidder must have experience of executing projects in at least 2 banks or large organizations (project size of more than Rs50 million) in the past 3 years. Page 14

15 3.3 Consultant(s) Profile The Consultant(s) should have in-depth experience in IFRS 9 implementation including credit risk and analytics and credit risk modelling The Consultant(s) should also have strong technical knowledge and understanding of IFRS 15 and IFRS The Consultant(s) should be well-versed in building and validating statistical models particularly credit risk models The Consultant(s) should have experience in stress testing, Internal Capital Adequacy Assessment Process (ICAAP) and credit grading The Consultant(s) should have a comprehensive understanding of the regulatory frameworks and compliance requirements associated with financial/banking services as well as related working experience; The Consultant(s) should provide references for assignments performed in similar areas. 3.4 Payment Terms The terms and conditions of payment will be mutually agreed with the successful bidder. The Bank reserves the right: To retain all the Intellectual Property Rights to the deliverables under this consultancy; To reject any proposal which does not comply with the requirements of the RFP; To waive or change any formalities or inconsistencies in the deliverables; To extend the time for submission of proposal; To modify the RFP document, by an amendment that would be notified on the Bank s website; To independently ascertain information from the banks and other Institutions / companies to which the bidder has already extended services for similar assignment; To modify the project duration stipulated in Clauses A.2 and B.2 above for the completion of the assignment; To accept or reject a particular bid or to annul the whole bidding exercise at its sole discretion without assigning any reason whatsoever and without incurring any liability whatsoever. Page 15

16 3.5 Qualifications of the Bidders All bidders shall provide a description of the proposed work method and schedule Bidders shall provide all relevant information about their company profiles and CVs of staff who would be working on the project. Non-compliance with this section may entail rejection of bids. 3.6 Cost of bidding Bidders shall bear all costs associated with the preparation and submission of their bid. The BOM will, under no circumstances, be responsible or liable for any cost there of regardless of the conduct or outcome of the bidding process This RFP document is offered to interested bidders at no cost. 3.7 Contents of bid documents The RFP comprises of the following documents: a. Bid Information Sheet b. Part A- Supervision Division c. Part B- Accounting and Budgeting Division d. Instructions to Bidders and General Conditions Bidders are expected to examine all instructions, forms, terms, and specifications in the RFP. Failure to provide a substantially responsive bid to the requirements of this RFP in every respect may result in the rejection of the bid. 3.8 Request for Clarifications All prospective bidders wishing to request for clarifications on the content, form and/or any other details contained in this RFP documents may write to the BOM using the contact details below. Chairperson - Tender Committee Bank of Mauritius Sir William Newton Street Port Louis Mauritius Tender.Committee@bom.mu Page 16

17 3.9 Bid Currencies All quoted prices shall be in Mauritian Rupees (MUR) for local bidders and United States Dollar (USD) for foreign bidders Validity of Bids All bids should remain valid for 150 days starting from the closing day of the bid, unless otherwise specified in this RFP. Bids containing validity for period less than 150 days will be considered as non-responsive In exceptional circumstances, the BOM reserves the right to solicit an extension of a bid s period of validity. The request and the responses thereto shall be made in writing. Any extension of validity period should not entail any modification of the bid Amendment of Documents The BOM for any reason whatsoever whether on its own initiative or in response to a clarification requested by a prospective bidder, may amend the bid documents by issuing an addendum anytime, before the closing date of the bid Format and Signing of Bid The bidder shall prepare two copies of the bid, with clear indication of ORIGINAL BID and COPY OF BID on each as appropriate. In the event of any discrepancy between them, the ORIGINAL BID shall prevail. In addition, bidders must submit one complete electronic copy in Microsoft Word or PDF format on CD or DVD or memory stick All copies of the bid shall be typed or written in indelible ink signed by the bidder, or any other person having the due authority to sign on behalf of the bidder. All pages of the bid, except for un-amended printed literature, shall be initialled by the person or persons signing the bid The bid shall have no interlineations, erasures, or overwriting except as necessary to correct errors made by the bidder, in which case such corrections shall be initialled by the person or persons signing the bid Sealing and Marking of Bids The bidder shall seal the original and each copy of PART A and PART B bids in separate envelopes, duly marking the envelopes as Part A bid or Part B bid with the mention ORIGINAL or COPY as appropriate. The envelopes shall then be sealed in an outer envelope and marked ORIGINAL or COPY as appropriate. Page 17

18 All envelopes shall clearly be marked as Consultancy Services for Implementation of IFRS9 by BOM on their top left-hand corner. All inner and outer envelopes should be addressed to the BOM at the address given in this RFP. Outer envelopes should have clear indication of the name and address of Bidders in order to enable the bid to be returned unopened in case it is declared LATE The BOM will not entertain any liability for any bid s misplacement or premature opening, if outer envelopes are not sealed, and marked as prescribed above Deadline for Submission of Bids Bids must be received by the BOM at the address given in the invitation to bid no later than 6 April The BOM at its discretion, may extend the deadline for the submission of bids by amending the bid documents, in which case all rights and obligations of the BOM and candidates previously subject to the deadline will thereafter be subject to the deadline as extended Electronic submission shall not be permitted. Late bids will be rejected Modification and withdrawal of bids Bids may be modified or withdrawn after submission provided that written notice of the modification, including substitution, or withdrawal of the bid is received by the Bank prior to the closing date of the invitation to bid All notices must be deposited in Tender Box B, or sent by courier services to reach the address below no later than 6 April 2018 at hours (Mauritius time) at latest. Notices received after the above mentioned date and time will not be entertained. Electronic communication of notices will not be considered as valid. Chairperson -Tender Committee Bank of Mauritius Sir William Newton Street Port Louis MAURITIUS Page 18

19 Withdrawal notices may be sent by electronic means provided that they are followed by a signed confirmation copy, postmarked no later than the closing date and time of the invitation to bid No bid may be modified, substituted or withdrawn after the deadline for submission of bids The Bank may at any time terminate the present exercise before contract award, and shall be neither liable to any person for the termination nor obliged to inform bidders of the grounds of its action The Bank shall give prompt notice of the termination to the bidders Presentation to the Bank Bidders may, during the evaluation of the bids, be invited, at short notice, to make a presentation on their proposal to the Bank The presentation may be conducted either at the Bank s premises in Port Louis, Mauritius or by video conferencing. Any cost incurred with respect to the presentation shall be borne by the bidder Performance Bond or Bank Guarantee The successful bidder(s) may be required to provide the Bank with a performance bond or a bank guarantee, as appropriate, amounting to 10 per cent of the quoted bid amount, prior to start of work The performance bond or bank guarantee shall be issued by a bank in Mauritius and shall expire upon satisfactory completion and commissioning of the Project. Page 19

20 3.18 Contract Agreement and Governing Law A formal written agreement will be entered into with the successful bidder(s). This agreement shall be governed by the laws of Mauritius and the bidder shall agree to submit to the exclusive jurisdiction of the Courts of Mauritius any dispute which has not been amicably resolved The Bank reserves the right to modify or exclude any consideration, information or requirement contained in the invitation to bid, and to add new considerations, information or requirements at any stage of the procurement process, including during negotiations with the selected bidder It is understood that all specifications shall be construed in the sense that provides the best execution of the contract. 4 NON-DISCLOSURE AND CONFIDENTIALITY 4.1 Participants to this RFP are de facto under strict non-disclosure and confidentiality agreement with the BOM and each party therefore mutually undertakes: not to use or circulate the Confidential Information within its own organisation except solely to the extent necessary for the purposes intended by its disclosure, and not to use the Confidential Information in any way which would or might be harmful to the other party; to ensure that all persons to whom the Confidential Information is disclosed are made aware of its confidential nature and of their obligations under this Agreement; to effect and maintain adequate security measures to safeguard the Confidential Information from unauthorised access, use and misappropriation; and to notify the other party of any unauthorised use, copying or disclosure of the Confidential Information of which it becomes aware and to provide all reasonable assistance to the party to terminate such unauthorised use and/or disclosure The successful bidder(s) with whom the BOM will enter into a contract for the provision of the consultancy services as prescribed in this RFP will accordingly be required, prior to the provision of the services to make a Declaration of Confidentiality in terms of Section 26(1) (b) of the Bank of Mauritius Act Page 20

21 5 LIQUIDATED DAMAGES 5.1 The successful bidder(s) with whom the BOM will enter into a contract for the provision of the consultancy services as prescribed in this RFP and to the satisfaction of the BOM, will be required to pay liquidated damages for delays in the provision of those services up to a sum equal to 0.5% of the value thereof to the BOM for each week that delivery is delayed up to a maximum of 10% of the contract amount. Page 21