Gulf Cooperation Council Interconnection Authority (GCCIA) Proposal for Oman Border IRU Dark Fiber Commercial Proposal TO TELECOM OPERATOR GCC INTERCONNECTION AUTHORITY 5 th September 2018
Contents INTRODUCTION... 2 1. PAYMENT TERMS... 3 2. DELIVERY... 3 3. MAINTENANCE... 3 4. ACCESS TO GCCIA SUBSTATIONS POPS... 4 5. INSURANCE... 4 6. VALIDITY... 4 7. LICENSING... 4 1
Commercial Proposal to TELECOM OPERATOR INTRODUCTION Gulf Cooperation Council Interconnection Authority (GCCIA) a joint stock Company dully registered in the Kingdom of Saudi Arabia, having its Head Office and address for the purposes of this proposal at the GCCIA Headquarters Building, P.O. Box 3894 Dammam 31481 Saudi Arabia. The GCCIA owns 400 KV Electricity Transmission and Fiber Optic Networks that interconnect the independent power systems and telecom operators of the GCC member states: State of Kuwait, Kingdom of Saudi Arabia, Kingdom of Bahrain, State of Qatar and United Arab Emirates. The Fiber Optic Network is consisting of a double circuit 48 Fibers in each circuit from Kuwait, through Saudi Arabia to Bahrain, Qatar and UAE. The GCCIA fiber optic network is in operation since 2008 with availability of 100%. Most of the telecom operators in the region are currently using the GCCIA Fiber Optic Network. In response to interest from TELECOM OPERATOR in Kindem Saudi Arabia hereafter called the Customer requesting an offer from GCCIA for the purchase an Indefeasible Rights of Use (IRU) for dark fibers for a period of 15 years pending the final Agreement terms and conditions. The Fiber communication Route Details which GCCIA offers in response to Customer requirements are described in Exhibit A. Any connectivity cost outside the GCCIA PoP boundaries is not included in the price. The offered prices for the purchase of Single Pair on IRU basis, including IRU price, annual operation & Maintenance Fee for fifteen (15) years, are shown in tables below with two options: 1. Option 1: SEGMENT ONE-TIME PAYMENT USD$ FOR 15 YEARS FOR ALL SEGMENT * ANNUAL OPERATION & MAINTENANCE USD$/year FOR YEARS 1-15 * Revenue Share** Salwa GCCIA PoP to Oman Border 6,000,000 290,000 17.5% *VAT, CITC charge or any Tax is not included and shall be add as extra and pay by the customer. The VAT is 5% in 2018. CITC charge is 6% year in 2018, 9% on 2019 and 11 % in 2020. 2
2. Option 2: Segment ANNUAL PAYMENT USD$ FOR 15 YEARS * ANNUAL OPERATION & MAINTENANCE USD$/year* FOR YEARS 1-15 Revenue Share** Salwa GCCIA PoP to Oman Border 600,000 290,000 17.5% *VAT, CITC charge or any Tax is not included and shall be add as extra and pay by the customer.the VAT is 5% in 2018. CITC charge is 6% in 2018, 9% on 2019 and 11 % in 2020 ** Customer shall pay GCCIA 17.5 % of the revenue generated from the IRU and Capacity Sale services on the proposed link in Exhibit A. 1. PAYMENT TERMS 1.1 All Costs to connect the Customer service to GCCIA PoP (the Connection Costs ) shall be incurred by and borne solely by Customer. 1.2 On the Ready for Service ( RFS ) Date, immediately following handover and acceptance, GCCIA shall provide Customer with an invoice for three months advance payment. GCCIA s obligation to deliver the Customer service shall be contingent upon the payment in full of such amount. 1.3 Customer shall pay the GCCIA Invoice, in immediately available funds, within sixty (60) days of the Ready for Service Date.. 1.4 On the date of Delivery, GCCIA will notify Customer in writing that the Customer service is available for use and complies with the specifications (the Delivery Notice ).. 2. DELIVERY 2.1 GCCIA will deliver the IRU dark fibers within Twelve Months (12) Months from the date GCCIA receive a request from Customer. 3. MAINTENANCE 3.1 GCCIA will maintain the Customer IRU dark fibers and shall provide SLA. All maintenance charges for Scheduled & Unscheduled Maintenance and/or repairs are included with the proposal price. GCCIA will not supply Customer any optical or electrical equipment, or other facilities ancillary to the GCCIA IRU dark fibers. 3
4. ACCESS TO GCCIA SUBSTATIONS POPS 4.1 GCCIA will provide Customer with reasonable access to all GCCIA POPs but only if accompanied by a GCCIA representative(s) in accordance with the GCCIA Operational Procedures and Safety Rules. 5. INSURANCE 5.1 Customer shall at all times during the Term of the Contract, at its own cost and expense, carry and maintain appropriate insurance coverage in accordance with industry standards with reputable insurers. 6. VALIDITY 6.1 The offer validity expires on 4 th October 2018. 7. LICENSING Customer shall complying with any requirements applicable to the respective rights and obligations under this proposal that are imposed by any governmental agency, regulatory agency or authority, such as licensing for capacity, licensing for import of optical transmission equipotent etc. The Customer shall procure that its customers and/or their end users shall comply with (together the Applicable Laws ): (a) any term in any regulatory or governmental license, authorization, consent, permission, approval or guidance; and (b) any law, statute, regulation or instruction of any governmental, supranational or other regulatory authority or agency of competent jurisdiction. 4
Exhibit A GCCIA s FIBER CONNECTIVITY NETWOK Connectivity Proposal GCCIA Salwa PoP GCCIA Oman Border PoP 5
GCCIA Network JASRA Bahrain Submarine Cable 94 km GCCIA HQ Dammam - 45 km Silla UAE 110km 244km GHUNAN 120 km LZS Qatar 107 km SALWA FADHILI locations of the GCCIA POPs Substation Latitude Longitude Al Zour (Kuwait) 28 42'21.70"N 48 21'16.78"E Al Fadhili (Saudi Arabia) 26 53'45.07"N 49 20'41.65"E Ghunan (Saudi Arabia) 26 4'7.79"N 49 53'33.49"E Al Jasrah (Bahrain) 26 9'58.75"N 50 28'52.09"E Salwa (Saudi Arabia) 24 33'0.52"N 50 53'16.19"E LZS-GCC(Qatar) 25 11'23.00"N 51 31'26.23"E RAQ (Saudi Arabia) 25 59'12.11"N 50 6'4.64"E Oman Border () 22.140607 N 55.496384 E Silaa (UAE) 24 6'27.46"N 51 37'14.28"E 700 km Oman Border AL ZOUR Kuwait V. 1.4 305 km Segment Details: Segment Km Al Zour (Kuwait) Al Fadhili (Saudi Arabia) 305 Al Fadhili (Saudi Arabia) Ghunan (Saudi Arabia) 120 Ghunan (S.Arabia) Ras Qurayyah (Saudi Arabia) 41 Ras Qurayyah (Saudi Arabia) Jasrah (Bahrain) 52 Ghunan (Saudi Arabia) Salwa (Saudi Arabia) 244 Salwa (Saudi Arabia) LZS-GCC(Qatar) 107 Salwa (Saudi Arabia) Silaa (UAE) 110 Salwa (Saudi Arabia) Oman Border (Soudi Arabia) 700 6