The new MINMAP circular (N°000014/C/MINMAP/CAB) provides a clearer and more structured framework for managing guarantees in public contracts in Cameroon. Here are the essential points for all actors in the sector:

The central role of the Deposits and Consignments Fund (CDEC)

The CDEC is the main body responsible for managing guarantees. It ensures the consignment, conservation, restitution, and realization of guarantees. It is invested with full powers to act in the name and on behalf of the Project Owner or Delegated Project Owner.

Types of accepted guarantees

The main guarantee is the

bond or retention money. However,other guarantees may also be accepted, such as:

• The surety of an approved banking institution or financial body.
• The personal and joint and several suretyship.
• The certified cheque.
• The banker's draft.
• The legal mortgage.

These alternative guarantees are generally reserved for national SMEs and civil society organizations.

Amounts and validity periods

The circular sets clear percentages for each type of bond:

• Bid bond or provisional bond: a maximum of 2% of the provisional TTC cost. Its validity period is extended by thirty (30) days beyond the validity of the offers.
• Final bond: a minimum of 2% and a maximum of 5% of the initial TTC amount. It must be constituted within twenty (20) days following the notification of the contract, and in all cases, before the first payment.
• Advance payment bond: 100% of the advance payment granted.
• Retention money or performance bond: a maximum of 10% of the initial TTC amount.

Restitution of guarantees

Guarantees are restituted upon fulfillment of contractual obligations. The CDEC has amaximum of fifteen (15) working days from the receipt of the release to complete the restitution. If this deadline is not met, the CDEC is liable forlate payment interest. For the bid bond, the publication of the award decision serves as the release and non-retained bidders have fifteen (15) working days to withdraw their offers.