SECTION 160

(1) The Administration’s contracting partner may, upon simple request to the Project Owner or the Delegated Project Owner, and without any justification, obtain a “start-off” advance whose tax inclusive amount may not exceed 20% (twenty per cent) of the initial contract price for works or intellectual service contracts and 40% (forty per cent) for supply contracts. 62 (2) The rates referred to above shall be calculated based on the initial contract amount, or the amounts corresponding to each tranche for tranche contracts. (3) In the case of blanket purchase contracts, the start-up advance amount shall be calculated based on the maximum amount budgeted for a given period. (4) The start-up advance shall be refunded by deduction from the amounts owed to the contract holder during the execution of the contract, in accordance with the contract terms and conditions. Such refund shall start when the amount of services provided under the contract, expressed in basic price, reaches or exceeds 40% (forty per cent) of the initial price of the contract or of the tranche, and end when the rate reaches 80% (eighty per cent). Where the contract does not provide for payment on account and is subject to payment threshold, the start-off advance shall be deducted once from the single payment (5) The start-off advance must be fully guaranteed by a banking institution governed by Cameroonian law or an approved first-rate financial institution, in accordance with the instruments in force. (6) The start-off advance referred to in (1) above shall be paid to the Administration’s contracting partner in accordance with the terms and conditions laid down in the Special Administrative Clauses. (7) The payment provided for in (6) above shall be made after the required guarantees have been provided, in accordance with the provisions of this code.