Industrial Participation Policy

Issued by the Board of Directors of the General Authority for Military Industries (GAMI)
Under a decision no. (C/1/6) dated 14/11/1440 AH, corresponding to 17/07/2019 AD
Based on the regulations of the General Authority for Military Industries (GAMI) issued by
a Council of Ministers Resolution No. (210) dated on 25/04/1440 AH, corresponding to
01/01/2019 AD.

Version 1.0.0 dated 16/01/1441 AH, corresponding to 15/09/2019 AD

15th September 2019
Contents

Principles of this Industrial Participation Policy ..............................................................................8

Application & Threshold .....................................................................................................................8
Level of Commitment ......................................................................................................................... 9
The Industrial Participation Proposal ............................................................................................. 10
Eligible Activities & Valuation Factors .............................................................................................11
Contracting Framework .................................................................................................................... 14
Performance Management ............................................................................................................... 15
Banking of Credits ............................................................................................................................ 16
Contractor Collaboration .................................................................................................................. 17

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 Definitions

The following definitions are used throughout this policy:

Term Definition

Acquisition The process of executing a program to completion aligned to satisfying a

Military and Security Entity’s operational requirement
Acquisition Policy The Saudi Military Acquisition Policy as published by GAMI from time to
time.
Bonus Credits Has the meaning given in paragraph 4.7 of this Industrial Participation
Policy.
Capability Development Development of technical and human capability and capacity in the Military
Industries in support of the Military Industry Strategy and Technology
Strategy.
Co-development Development of technology, intellectual property, know-how or any other
matter by more than one person or entity.
Contractor A business entity which secures the supply of goods and services to a Military
and Security Entity through a Supply Contract.
Credits Values attributed by GAMI towards the satisfaction of a Contractor’s
Industrial Participation Commitment.
Dual Use Goods and Goods and services which can be used for military and civil purposes.
Services
Economic Offset The Economic Offset Program of Saudi Arabia.
Program (EOP)
Export Licences Licences or approvals required to be issued by a foreign government or an
agency or a department or other instrumentality of a foreign government to
permit the transfer to an entity in Saudi Arabia or a Local Company and/or
use by such entity or company of military or dual use technology, know-how,
intellectual property or any other related matter.
Foreign Direct Investment by a foreign Contractor or its related parties in Saudi Arabia.
Investment
GAMI General Authority for Military Industries.
Foreign Company A business entity incorporated in a jurisdiction outside of Saudi Arabia.
Foreign Owned Local A directly or indirectly majority foreign owned or controlled company with a
Company commercial registration in Saudi Arabia and licensed by GAMI with local
capability.
Military Industries Designated areas for specific military industry.
Clusters
Industrial Development The series of activities to stimulate development of Military Industries in
Saudi Arabia.
Industrial Development The policy governing Industrial Development published by GAMI.
Policy (IDP)
Industrial Participation The means by which Contractors and other stakeholders can participate in
the development of military and security capabilities in Saudi Arabia in
accordance with the provisions of this Industrial Participation Policy.
Industrial Participation The agreement to be entered into between a Contractor and GAMI in respect
Agreement of a qualifying Supply Contract and in accordance with the terms of this
Industrial Participation Policy.

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 Industrial Participation Has the meaning given in paragraph 4.3 of this Industrial Participation
Commitment Policy.
Industrial Participation Has the meaning given in paragraph 4.6 of this Industrial Participation
Commitment Term Policy.
Industrial Participation The plan required to be submitted by the Contractor to GAMI as described
Proposal in paragraph 4.4 of this Industrial Participation Policy.
Legacy Obligation An outstanding offset obligation established under the Economic Offset
Program.
Local Company A company with a commercial registration in Saudi Arabia, licensed by GAMI
with local capability. This can include a Joint Venture and 100% Foreign
Owned Local Company.
Localization The value of goods and services delivered by Local Companies in respect of
Military Procurements.
Military and Security Any government entity undertaking the procurement of military equipment,
Entities works, or services, such as The Ministry of Defence, Ministry of National
Guard, Presidency of State Security, Ministry of Interior, the Royal Guard.
Military Goods and Goods and services which are used to meet the requirements of a Military
Services and Security Entity.
Military Industry The Military Industry Strategy published by GAMI from time to time.
Strategy
Military Procurement The procurement of goods, services and technologies related to the provision
of military and security capabilities including but not limited to weapons
systems, weapons, ammunition, telecommunication systems, equipment,
spare parts and services, military uniforms, service agreements,
maintenance, repair, overhaul and military operations contracts.
Performance Security An unconditional, irrevocable on-demand guarantee in favour of GAMI
issued by a Saudi Arabian financial institution licensed by Saudi Arabia
Monetary Authority and in a form approved by GAMI.
Priority Sectors The priority sectors identified in the published Military Industry Strategy.
Priority Technologies The priority technologies identified in the published Technology Strategy
RFP Request for proposal in respect of a Supply Contract published by a Military
and Security Entities as part of the Acquisition process.
Small and Medium As defined by the Small and Medium Enterprises General Authority from
Sized Enterprise (SME) time to time.
Supply Contract An agreement for the supply of Military Procurements to a Military and
Security Entities.
Supply Contract Value Has the meaning given in paragraph 4.3 of this Industrial Participation
Policy.
Technology Strategy The Technology Strategy published by GAMI from time to time.
Valuation Factor A numerical factor used to establish the value of Industrial Participation
Credits generated by an eligible activity as determined by GAMI in
accordance with this Industrial Participation Policy.

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 Introduction

The Vision 2030 was launched in 2016 to drive broad economic, technological, industrial
and social transformation in Saudi Arabia. This included activities across the economy to
generate prosperity and shape the future of Saudi Arabia. Within this vision, a key aim is
to localize a minimum of 50% of military equipment spending by 2030.

This will be achieved by focusing on maximizing utilization of existing capabilities,

developing new capabilities according to the Military Industry Strategy and establishing
strong research and technology capabilities in accordance with the Technology Strategy.
This industrial capability will play a vital role in supporting the Military and Security
Entities and establishing a strong and qualified work force.

In the next five years the focus of Industrial Development will be on building up suitably
qualified resources and skills, qualified suppliers, industrial clusters, test and evaluation
capabilities and supplier relationships to meet the demands of the Saudi Arabian Military
and Security Entities.

The purpose of this Industrial Participation Policy is to provide stakeholders with a guide
as to how Industrial Participation will be implemented to support development of the
military industrial base in Saudi Arabia.

This Industrial Participation Policy will allow Contractors which are supplying Military
Procurements to Military and Security Entities to make significant and valuable
contributions to the economy and support the delivery of the Vision 2030 objective to
localize 50% of the spending on military equipment and services by 2030 through
participation between the Contractor and Local Companies.

Where local capability and capacity exists, this Industrial Participation Policy will
encourage and incentivize Contractors to utilize and expand this capability in their supply
solutions.

Where capability or capacity does not exist, this Industrial Participation Policy creates a
framework to focus investment in the Priority Sectors to build the required capability and
capacity through investment, transfer of technology and research and development.

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 Priorities for Industrial Participation
This Industrial Participation Policy will continue to evolve and will remain aligned with
progress towards Vision 2030. The initial focus of this Industrial Participation Policy is
to support capability building in the Priority Sectors and Priority Technologies that have
been identified in the Military Industries Strategy and the Technology Strategy.

Through the Industrial Participation Policy, investment in the following types of eligible
Industrial Participation activities to build industrial capability in the Military Industries
sector will be encouraged.

Maximizing the use of existing local industrial capabilities in support of the

delivery and support of military and security capabilities.

Creating and developing industrial capacity and capability that can be utilized to
generate sustainable business in Saudi Arabia.

Transferring or developing intellectual property to establish new capability in

Saudi Arabia including transfer of technology and co-development.

Delivering research and technology projects that create and develop capability in
Saudi Arabia that is aligned to the Military Industry Strategy and Technology
Strategy.

Developing human capital capability through specialized training, development

and sustainable employment opportunities for Saudi nationals.

Supporting the development of Small and Medium Enterprises (SMEs) and other
companies in the supply chain through enhancement of capability and training and
qualification of these companies to participate in global supply chains.

Establishing a local supply chain to contribute to the development, manufacture

and support of products and services for the Military and Security Entities.

Generating opportunities to secure exports from Saudi Arabia through

involvement of Local Companies in the global supply chains.

Supporting the development of strategic capabilities to allow Saudi Arabia to

achieve self-reliance in strategic areas.

Industrial Participation activities and investments can be directly related to the delivery
of the Supply Contract or the sustainability and upgrading of military equipment
delivered under the Supply Contract. Alternatively, they can be related to the
development of wider Military Industry capability. Dual Use Goods and Services

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capability may be considered if it supports the development of Military Industry and is
sustainable.

Investments in sectors outside the Military Goods and Services or Dual Use Goods and
Services are not encouraged by this Industrial Participation Policy; the focus for GAMI is
to support implementation of the Military Industry Strategy through the building relevant
industrial capabilities in Saudi Arabia.

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 Industrial Participation Policy

Principles of this Industrial Participation Policy

Industrial Participation is a core component of any Acquisition and will be a focus of
GAMI throughout the Acquisition life cycle.

All Military Procurements will have established Industrial Participation criteria and
Industrial Participation will be taken into consideration alongside price and technical
evaluation at each major decision point in the Acquisition process.

Appropriate weighting and priority of Industrial Participation will be established through

the Acquisition process.

This Industrial Participation Policy will apply to all qualifying Supply Contracts (or
otherwise as set out in paragraph 4.2), whether delivered through direct contracts with
Contractors or through Government to Government agreements.

A core principle of this Industrial Participation Policy is that the Industrial Participation
Proposal shall be agreed prior to source selection or Supply Contract award, and an
Industrial Participation Agreement will be executed simultaneously with the execution of
the Supply Contract.

This Industrial Participation Policy will apply to Foreign Companies and Local
Companies, irrespective of ownership. This is to ensure that whoever is selected to deliver
military equipment and services is committed to support the objectives of Vision 2030.

Application & Threshold

Industrial Participation will be measured and reported as part of all Acquisitions, however
this Industrial Participation Policy will apply to the following Supply Contracts:

All Supply Contracts placed by Military and Security Entities with Contractors for
the supply of Military Goods and Services with a value equal to, or in excess of,
SAR 150 million (or equivalent) including all amendments.

The Industrial Participation Policy will apply to all Contractors (whether Foreign
Companies or Local Companies) which receive a qualifying Supply Contract from
the Military and Security Entity. GAMI may, at its discretion, apply the Industrial
Participation Policy on the sub-contractors of such a contractor for their sub
contracted responsibilities under the supply contract.

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 The Industrial Participation Policy will apply to all qualifying Supply Contracts
including those delivered on a Government-to-Government basis with Contractors
required to sign an Industrial Participation Agreement with GAMI.

At its discretion, GAMI may apply this Industrial Participation Policy to Supply
Contracts with a value lower than SAR 150 million. This may include, without
limitation, Acquisitions that are considered of strategic interest; where future
contracting activity is anticipated and it is anticipated that the threshold may be
reached in the future; extensions or amendments to existing Supply Contracts that
exceed the threshold; or a series of related Supply Contracts which may
individually fall below this threshold.

For Supply Contracts with a value below the Industrial Participation Policy threshold,
maximizing Localization remains a critical principle to increase the level of work delivered
in Saudi Arabia. The Localization requirements in respect of these Supply Contracts will
be managed through the Acquisition Process.

The Acquisition process will ensure the following:

Industrial Participation will be considered in all Acquisitions resulting in a

qualifying Supply Contract. The Industrial Participation Commitment will apply to
all qualifying Supply Contracts regardless of whether the Industrial Participation
Commitment is expressly stated in the RFP for the relevant Military Procurement.

Specific Industrial Participation evaluation criteria will be established and used as

part of the evaluation process for all Supply Contracts.

A minimum Localization requirement may be established in any specific

Acquisition program and communicated to Contractors through the RFP

Level of Commitment
The level of Industrial Participation Commitment attributable to any qualifying Supply
Contracts is set at a minimum of sixty percent (60%) of the total amount payable by the
Military and Security Entity to the Contractor under the Supply Contract, subject to any
adjustments made pursuant to the paragraphs below (the “Supply Contract Value”),
with such amount being the “Industrial Participation Commitment”.

The Industrial Participation Commitment will become effective when the Supply Contract
has been executed and becomes effective in accordance with its terms.

The value of the Industrial Participation Commitment will be adjusted to reflect any
changes to the Supply Contract Value (whether pursuant to the terms of, or arising from
an amendment to, the Supply Contract) and the Contractor must promptly inform GAMI
if any changes are made to the Supply Contract Value where a Supply Contract includes

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elements of scope that GAMI determines are not directly related to Military Procurement,
the value of such scope of work will be removed when calculating the Supply Contract
Value for the purposes of determining the Industrial Participation Commitment. If GAMI
makes such a determination, the adjusted value of the Industrial Participation
Commitment will be reflected in the Industrial Participation Agreement.

As a result, the delivery of any Localization on any element unrelated to Military

Procurement under the Supply Contract will not contribute to the delivery of the
Industrial Participation Commitment.

The Local Content and Government Procurement Authority requirements shall apply on
elements of an Acquisition not directly related to Military Procurement.

The value of the Industrial Participation Commitment will be maintained in the original
currency of the Supply Contract and the associated Industrial Participation Agreement.

The Industrial Participation Proposal

An Industrial Participation Proposal must identify and detail all aspects of the Industrial
Participation that the Contractor is proposing. This would include details of the activities
that will be performed and the associated timelines. It should identify the work packages
and Local Companies as well as including an assessment of risk and any key dependencies
beyond the program or interdependencies with other activities that need to be considered.

The Industrial Participation Proposal should also identify any areas where Export
Licenses are required and demonstrate the Contractor’s engagement with the relevant
foreign authorities to secure the transfer of the relevant items to Saudi Arabia. In addition,
the contractor will ensure that GAMI is included in all export licenses and relevant
documentation to allow for engagement in all areas of industrial participation proposal.

Prospective Contractors will be expected to develop, prior to submitting their offer, a

detailed Industrial Participation Proposal that demonstrates how the specific Industrial
Participation objectives will be addressed and how Industrial Participation Commitment
will be met.

The Industrial Participation Proposal will be required prior to source selection or Supply
Contract award and will be used in the evaluation of the tenders.

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Figure 2 shows Industrial Participation in the context of the overall Acquisition process.

Figure 1 Industrial Participation in the Acquisition Process

Eligible Activities & Valuation Factors

GAMI, through its Military Industries division is the sole authority for the approval of
eligible activities, the assignment of any Valuation Factors and the award of Credits under
this Industrial Participation Policy

This Industrial Participation Policy encourages Contractors to use any Local Company
and to assess all options for establishing sustainable capability in Saudi Arabia, including
working with the broader supply base or delivering their own on-shore capability.

In general, activities outside the Military Industry sector will not be considered for the
award of Credits but the establishment of approved Dual Use Goods and Services
capability will be considered if it supports sustainable Military Industrial capability.
GAMI will be required to approve any proposed Dual Use Goods and Services before they
will be eligible for the award of Credits.

If the requirement of this Industrial Participation Policy for Localization cannot be met
through the use of existing Local Companies, the development of additional industrial
capability in Saudi Arabia will be required.

Valuation Factors will apply to each eligible activity with the upper limit awarded to the
development of technologies and capability in the Priority Sectors and Priority
Technologies. Valuation Factors between 1 and 5 can be awarded to incentivize
Contractors to offer the most strategic capability and allows GAMI the flexibility to secure
access to these capabilities.

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These eligible activities will be assessed in 2 categories as follows:

Category A – Localization
Category B – Capability Development
Category A - Localization:
Credits will be awarded for the procurement of Military Goods and Services or approved
Dual Use Goods and Services from Local Companies with the following Valuation Factors
applied to the value of the transactions. This may include procurement of items beyond
the scope of the Supply Contract.

# Industrial Participation Contribution Valuation Factor

Purchase order to Local Company for production of Military Goods
A.1 and Services or approved Dual Use Goods and Services for Saudi 1.0
Arabia
Purchase order to Local Company for production of Military Goods
A.2 1.0 – 2.0
and Services or approved Dual Use Goods and Services for export
Technical support for the production of Military Goods and Services
A.3 1.0
or approved Dual Use Goods and Services

Credits for Localization will be provided based on the value of work that is contracted with
the Local Companies. The value of this Localization will be evaluated as the SAR value of
work performed in Saudi Arabia and may be adjusted if these Local Companies
subcontract significant portions of the work outside of Saudi Arabia.

Additional Credits can be awarded where the Contractor uses SMEs in their supply
chain for the delivery of goods and services (up to additional 0.5 on value sourced
from SMEs).

Additional Credits can be awarded where the Contractor is establishing a Local

Company as a sole source supplier for Military Goods and Services or approved
Dual Use Goods and Services (up to additional 1.0 on value sourced from sole
source supplier).

The Contractor will be responsible for providing supporting documents for

Localization that demonstrate the value of work that is retained in Saudi Arabia for
GAMI’s approval.

Credits will only be awarded for Localization for the export market once any
specific requirements of the Supply Contract for Saudi Arabia have been satisfied.

Where additional capability is developed, the value of this will be recognized under
Category B, however the additional procurement volume that it enables credited under
Category A.

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Category B - Capability Development:
Credits will be awarded for investment in Capability Development projects in Saudi
Arabia that develop technical and human capability and capacity in the Military Industry
in support of the Military Industry Strategy and Technology Strategy.

Credits will not be awarded for projects that do not deliver improvements in Military
Goods and Services or approved Dual Use Goods and Services capability. Therefore,
Industrial Participation Proposals outside of Military Goods and Services or approved
Dual Use Goods and Services sectors will not be considered under this Industrial
Participation Policy.

Qualifying projects may include Capability Development projects that will increase the
value of Localization that can be delivered. The Contractor will receive Credits for the
additional value of the Localization it enables within the Supply Contract under Category
A, in addition to Credit for Capability Development under this category B.

Credits will be awarded for direct investment into Saudi Arabia or the transfer of
capability into Saudi Arabia that will support Capability Development with the following
Valuation Factors:

# Industrial Participation Contribution Valuation Factor

Foreign Direct Investment into a Local Company to produce Military

B.1 2.0 – 5.0
Goods and Services or approved Dual Use Goods and Services

B.2 Special to type equipment 1.0 – 2.0

B.3 Transfer of technology 1.0 – 3.0

B.4 Technical / specialized training 1.0 – 2.0

Undertaking research and technology program in approved

B.5 2.0 – 5.0
technologies

The Valuation Factors of activities will be agreed with GAMI prior to the execution of the
Supply Contract.

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 Contracting Framework
The objective of this Industrial Participation Policy is, in support of the objectives of
Vision 2030, to help Contractors focus on delivery of Localization and Capability
Development in addition to the delivery of goods and services through their Supply
Contracts.

While the principles of Industrial Participation support the development of strategic

alignment and a mutual commitment to long-term partnerships, this Industrial
Participation Policy aims to create a framework which provides focus on delivering
specific and quantifiable outputs alongside the delivery of the Supply Contract.

To achieve this, an Industrial Participation Agreement will be entered into between the
Contractor and GAMI that will identify the specific Industrial Participation Commitment
of the Contactor. This Industrial Participation Agreement will be agreed and executed at
the same time as, or prior to, execution of the Supply Contract.

Industrial Participation Agreement

The Industrial Participation Agreement will set out the Industrial Participation
Commitment of the Contractor and will include the Industrial Participation Proposal,
Statements of Work for the individual projects and the Credits that will be awarded for
delivery of such projects, together with the performance management regime that will
apply.

The period in which the Industrial Participation Commitment must be achieved is:

In respect of such part of the Industrial Participation Commitment as relates to

Localization tied directly to the Supply Contract, the period under the relevant
Supply Contract in which the Contractor must substantially deliver the relevant
Military Procurement.

In respect of such part of the Industrial Participation Commitment as relates to

Capability Development or Localization not tied directly to the Supply Contract, (i)
the period under the relevant Supply Contract in which the Contractor must
substantially deliver the relevant Military Procurement (ii) plus an additional 2
years (the “Industrial Participation Commitment Period”).

The Industrial Participation Agreement will be supported by a Performance Security to

assure performance of the overall Industrial Participation Agreement.

Each Contractor shall be required to provide to GAMI the Performance Security within
30 days of execution of the Industrial Participation Agreement. The amount of the
Performance Security will be 10% of the Supply Contract Value

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At its sole discretion, and in exceptional circumstances only, GAMI may consider a
corporate guarantee in lieu of a Performance Security.

The Industrial Participation Agreement will govern the delivery of all Industrial
Participation activities and will detail the entire scope of activities to be performed, and
their respective timelines. It will include:

A detailed plan for the Localization that will be delivered as part of the Industrial
Participation Agreement.

A detailed plan for any Capability Development projects to develop capability in

Saudi Arabia to meet the balance of the Industrial Participation Commitment.
Through the Industrial Participation Agreement, GAMI will secure ownership of certain
assets and intellectual property rights related to industrial capability.

Performance Management
This Industrial Participation Policy sets out clear guidelines for the establishment and
discharge of Industrial Participation Commitments and it is important that all potential
Contractors focus on delivering the expected outcomes.

Performance Review

Regular management reviews should take place between the Contractor and GAMI to
monitor and measure the Contractor’s progress and for GAMI to award Credits against
certified performance pursuant to the Industrial Participation Agreement.
Incentives
In order to encourage the Contractor to deliver Localization, additional Credits (“Bonus
Credits”) may be banked and used towards future Industrial Participation
Commitments.

Bonus Credits of 10% of the Industrial Participation Commitment applicable to an

Industrial Participation Agreement will be awarded if GAMI determines that the
Contractor has achieved at least 30% Localization in the delivery of such Industrial
Participation Commitment.

Any Bonus Credits earned through the performance of an Industrial Participation

Agreement can be used by the Contractor to fulfil up to 25% of the Industrial
Participation Commitment in any separate Industrial Participation Agreement
subsequently entered into by the Contractor, but cannot be used to satisfy any specific
Localization requirements which may apply to such subsequent Industrial
Participation Agreement.

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Non-Performance

The value of the Industrial Participation delivered will be assessed at the end of the
Industrial Participation Commitment Period and failure by the Contractor to deliver the
Industrial Participation Commitment in accordance with the Industrial Participation
Agreement will result in GAMI being entitled to call some or all of the Performance
Security as follows:

In the event that the Contractor has achieved less than 50% of the Industrial
Participation Commitment GAMI will be entitled to liquidate 100% of the
Performance Security.

In the event that the Contractor has achieved between 50% and 100% of the Industrial
Participation Commitment, GAMI will be entitled to liquidate the Performance
Security by the value calculated as follows:
(Outstanding Value of Industrial Participation Commitment/ Industrial Participation
Commitment) * Initial Value of Performance Security
If the Contractor pays a penalty under this Industrial Participation Policy for non-
achievement of part of their Industrial Participation Commitment, they will be released
from delivering that part of the Industrial Participation Commitment.

In addition, GAMI reserves the right to exclude the Contractor from further Supply
Contracts if the Contractor, in the opinion of GAMI, has substantially failed to deliver its
Industrial Participation Commitment.

Banking of Credits
This Industrial Participation Policy allows for both pre-banking and post-banking of
Credits and recognizes any excess Credits that they generate, as described more fully
below, in order to promote long term commitments. These Credits will be accounted for
by GAMI and can be used to satisfy Industrial Participation Commitments under
Industrial Participation Agreements subsequently entered into by the Contractor.

These Credits will be recorded as Category A or Category B and can only be used against
future Industrial Participation Commitments in the same category.
Pre-banking
To be eligible for Credits any pre-banking projects must be approved by GAMI prior
to any commitment by GAMI in line with the principles of this Industrial Participation
Policy.

Projects to use Local Companies or invest in Capability Development may be initiated

prior to Supply Contract award.

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 Credit will not be provided for the sustainment of activity in Saudi Arabia commencing
prior to the approval by GAMI of the pre-banking project.
Post-banking

GAMI will maintain a register of excess Credits that have been banked and can be used
by a Contractor to satisfy any future Industrial Participation Commitment.

Excess Credits generated by a Contractor as part of the Industrial Participation

program can be banked and utilized within a period of 5 years from generation.

Up to 25% of a future Industrial Participation Commitment can be satisfied through

the use of banked Credits in the appropriate categories but cannot be used to satisfy
any specific Localization requirements.

If a Contractor establishes a Local Company in their global supply chain, Credits will
still be awarded for future exports for a period of up to 5 years beyond the termination
or expiry of the Supply Contract.

Banked Credits shall be utilized by the Contractor, or a member of the Contractors

group, and are not transferable to any other Contractor which is not in the Contractors
group.

Contractor Collaboration
Contractors can work together or with third parties to deliver projects that may enhance
the value that can be delivered to Saudi Arabia.

Industrial Participation projects that can provide relevant capability to Saudi Arabia
can be initiated between the Contractor (including group companies) and their
respective suppliers.

All parties involved in the delivery of the Industrial Participation Proposal will be
agreed by GAMI as part of the project approval process.

Where Contractors collaborate to deliver a joint project, the mechanism for the
allocation of Credits between Contractors will be agreed in advance by the Contractors
and GAMI based on the contribution of each Contractor and documented in their
respective Industrial Participation Agreements.

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 Program Management

GAMI will manage the ongoing monitoring and measuring of this Industrial Participation
Policy through an open and transparent dialogue and other communication channels
between Contractors and other stakeholders. In addition, GAMI will seek regular
feedback to ensure the Industrial Participation Policy continues to deliver its objectives
and creates a supportive environment for stakeholders.

Contractors will engage with GAMI prior to executing a Supply Contract and at the
commencement of the RFP process to develop their Industrial Participation Proposal and
execute the Industrial Participation Agreement. Following execution of the Industrial
Participation Agreement, Contractors shall report progress against the Statement of Work
set out in the Industrial Participation Agreement.

The Industrial Participation Proposal will be evaluated prior to execution of the Supply
Contract. The finalisation and valuation of the Industrial Participation Proposal will take
place through dialogue and engagement between the Contractor and GAMI, which will
apply their valuation principles to the proposals.

In the event that changes are required to the delivery of an Industrial Participation
program, the Contractor will engage with GAMI to advise on the changes and any
potential impact and negotiate and agree an amendment to the Industrial Participation
Agreement.

Progress Reporting

Contractors with Industrial Participation Commitments under this Industrial

Participation Policy will be required to attend quarterly review meetings with GAMI. At
these meetings, the parties will review existing Industrial Participation Commitments and
any future Industrial Participation Proposals to ensure alignment with GAMI’s Industrial
Development priorities and provide the opportunity to review and endorse any Credit
claims or banking applications.

Credit Claim

To claim Credits, the Contractor will submit evidence to GAMI that their Industrial
Participation Commitments have been met. GAMI will review the submission to confirm
the necessary requirements have been met and confirm or reject the claim.

GAMI reserves the right to audit and validate all submitted documents and request any
additional details and documents to demonstrate achievement of Credits. Credits will not
be awarded until GAMI is satisfied that the relevant component of the Industrial
Participation Commitment has been achieved.

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GAMI reserves the right to revoke any Credits if information subsequently comes to light
that raises questions over the validity of Credits that have previously been awarded.

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