Loan Number 3844 RU
LOAN AGREEMENT
(PORTFOLIO DEVELOPMENT PROJECT)
BETWEEN RUSSIAN FEDERATION AND INTERNATIONAL
BANK FOR RECONSTRUCTION AND DEVELOPMENT
(Washington, 7.VII.1995)
Agreement, dated July 7, 1995, between Russian Federation (the
Borrower) and International Bank for Reconstruction and
Development (the Bank).
Whereas the Borrower, having satisfied itself as to the
feasibility and priority of the Project described in Schedule 2 to
this Agreement, has requested the Bank to assist in the financing
of the Project; and
Whereas the Bank has agreed, on the basis, inter alia, of the
foregoing, to extend the Loan to the Borrower upon the terms and
conditions set forth in this Agreement;
Now therefore the parties hereto hereby agree as follows:
Article I
General Conditions; Definitions
Section 1.01. The "General Conditions Applicable to Loan and
Guarantee Agreements" of the Bank, dated January 1, 1985, with the
modifications set forth below (the General Conditions) constitute
an integral part of this Agreement:
(a) The last sentence of Section 3.02 is deleted.
(b) In Section 6.02, sub-paragraph (k) is re-lettered as sub-
paragraph (1) and a new sub-paragraph (k) is added to read:
"(k) An extraordinary situation shall have arisen under which
any further withdrawals under the Loan would be inconsistent with
the provisions of Article III, Section 3 of the Bank's Articles of
Agreement."
Section 1.02. Unless the context otherwise requires, the
several terms defined in the General Conditions have the
respective meanings therein set forth and the following additional
terms have the following meanings:
(a) "Center" means the Borrower's Federal Center for Project
Finance and Technical Assistance, established on April 4, 1994
pursuant to Government Ordinance 277;
(b) "Sub-project" means a particular study or project selected
by agreement between the Borrower and the Bank pursuant to
paragraph 3 of Schedule 5 to this Agreement;
(c) "Special Account" means the account, referred to in Section
2.02 (b) of this Agreement; and
(d) "Project Preparation Advance" means the project preparation
advance granted by the Bank to the Borrower pursuant to an
exchange of letters dated December 28, 1994 and January 25, 1995
between the Borrower and the Bank.
Article II
The Loan
Section 2.01. The Bank agrees to lend to the Borrower, on the
terms and conditions set forth or referred to in the Loan
Agreement, various currencies that shall have an aggregate value
equivalent to the amount of forty million dollars (40,000,000
USD), being the sum of withdrawals of the proceeds of the Loan,
with each withdrawal valued by the Bank as of the date of such
withdrawal.
Section 2.02. (a) The amount of the Loan may be withdrawn from
the Loan Account in accordance with the provisions of Schedule 1
to this Agreement for expenditures made (or, if the Bank shall so
agree, to be made) in respect of the reasonable cost of goods and
services required for the Project described in Schedule 2 to this
Agreement and to be financed out of the proceeds of the Loan.
(b) The Borrower may, for the purposes of the Project, open and
maintain in dollars a special deposit account in a commercial bank
on terms and conditions satisfactory to the Bank, including
appropriate protection against set off, seizure or attachment.
Deposits into, and payments out of, the Special Account shall be
made in accordance with the provisions of Schedule 6 to this
Agreement.
(c) Promptly after the Effective Date, the Bank shall, on
behalf of the Borrower, withdraw from the Loan Account and pay to
itself the amount required to repay the principal amount of the
Project Preparation Advance withdrawn and outstanding as of such
date and to pay all unpaid charges thereon. The unwithdrawn
balance of the authorized amount of the Project Preparation
Advance shall thereupon be cancelled.
Section 2.03. The Closing Date shall be December 31, 1998 or
such later date as the Bank shall establish. The Bank shall
promptly notify the Borrower of such later date.
Section 2.04. The Borrower shall pay to the Bank a commitment
charge at the rate of three-fourths of one percent (3/4 of 1%) per
annum on the principal amount of the Loan not withdrawn from time
to time.
Section 2.05. (a) The Borrower shall pay interest on the
principal amount of the Loan withdrawn and outstanding from time
to time, at a rate for each Interest Period equal to the Cost of
Qualified Borrowings determined in respect of the preceding
Semester, plus one-half of one percent (1/2 of 1%). On each of the
dates specified in Section 2.06 of this Agreement, the Borrower
shall pay interest accrued on the principal amount outstanding
during the preceding Interest Period, calculated at the rate
applicable during such Interest Period.
(b) As soon as practicable after the end of each Semester, the
Bank shall notify the Borrower of the Cost of Qualified Borrowings
determined in respect of such Semester.
(c) For the purposes of this Section:
(i) "Interest Period" means a six-month period ending on the
date immediately preceding each date specified in Section 2.06 of
this Agreement, beginning with the Interest Period in which this
Agreement is signed.
(ii) "Cost of Qualified Borrowings" means the cost, as
reasonably determined by the Bank and expressed as a percentage
per annum, of the outstanding borrowings of the Bank drawn down
after June 30, 1982, excluding such borrowings or portions thereof
as the Bank has allocated to fund:
(A) the Bank's investments; and
(B) loans which may be made by the Bank after July 1, 1989
bearing interest rates determined otherwise than as provided in
paragraph (a) of this Section.
(iii) "Semester" means the first six months or the second six
months of a calendar year.
(d) On such date as the Bank may specify by no less than six
months' notice to the Borrower, paragraphs (a), (b) and (c)(iii)
of this Section shall be amended to read as follows:
"(a) The Borrower shall pay interest on the principal amount of
the Loan withdrawn and outstanding from time to time, at a rate
for each Quarter equal to the Cost of Qualified Borrowings
determined in respect of the preceding Quarter, plus one-half of
one percent (1/2 of 1%). On each of the dates specified in Section
2.06 of this Agreement, the Borrower shall pay interest accrued on
the principal amount outstanding during the preceding Interest
Period, calculated at the rates applicable during such Interest
Period."
"(b) As soon as practicable after the end of each Quarter, the
Bank shall notify the Borrower of the Cost of Qualified Borrowings
determined in respect of such Quarter."
"(c) (iii) 'Quarter' means a three-month period commencing on
January 1, April 1, July 1 or October 1 in a calendar year."
Section 2.06. Interest and other charges shall be payable
semiannually on January 15 and July 15 in each year.
Section 2.07. The Borrower shall repay the principal amount of
the Loan in accordance with the amortization schedule set forth in
Schedule 3 to this Agreement.
Article III
Execution of the Project
Section 3.01. (a) The Borrower declares its commitment to the
objectives of the Project as set forth in Schedule 2 to this
Agreement, and, to this end, shall carry out the Project with due
diligence and efficiency and in conformity with appropriate
financial, technical and administrative practices, and shall
provide, promptly as needed, the funds, facilities, services and
other resources required for the Project.
(b) Without limitation upon the provisions of paragraph (b) of
this Section, the Borrower shall carry out the Project in
accordance with the Implementation Program set forth in Schedule 5
to this Agreement, as such Schedule may be amended from time to
time by agreement between the Borrower and the Bank.
Section 3.02. Except as the Bank shall otherwise agree,
procurement of the goods, works, and consultants' services
required for the Project and to be financed out of the proceeds of
the Loan shall be governed by the provisions of Schedule 4 to this
Agreement.
Article IV
Financial Covenants
Section 4.01. (a) The Borrower shall maintain or cause to be
maintained records and accounts adequate to reflect in accordance
with sound accounting practices the operations, resources and
expenditures in respect of the Project of the departments or
agencies of the Borrower responsible for carrying out the Project
or any part thereof.
(b) The Borrower shall:
(i) have the records and accounts referred to in paragraph (a)
of this Section including those for the Special Account for each
fiscal year audited, in accordance with appropriate auditing
principles consistently applied, by independent auditors
acceptable to the Bank;
(ii) furnish to the Bank as soon as available, but in any case
not later than six months after the end of each such year, the
report of such audit by said auditors, of such scope and in such
detail as the Bank shall have reasonably requested; and
(iii) furnish to the Bank such other information concerning
said records and accounts and the audit thereof as the Bank shall
from time to time reasonably request.
(c) For all expenditures with respect to which withdrawals from
the Loan Account were made on the basis of statements of
expenditure, the Borrower shall:
(i) maintain or cause to be maintained, in accordance with
paragraph (a) of this Section, records and accounts reflecting
such expenditures;
(ii) retain, until at least one year after the Bank has
received the audit report for the fiscal year in which the last
withdrawal from the Loan Account was made, all records (contracts,
orders, invoices, bills, receipts and other documents) evidencing
such expenditures;
(iii) enable the Bank's representatives to examine such
records; and
(iv) ensure that such records and accounts are included in the
annual audit referred to in paragraph (b) of this Section and that
the report of such audit contains a separate opinion by said
auditors as to whether the statements of expenditure submitted
during such fiscal year, together with the procedures and internal
controls involved in their preparation, can be relied upon to
support the related withdrawals.
Article V
Termination
Section 5.01. The date one hundred and twenty (120) days after
the date of this Agreement is hereby specified for the purposes of
Section 12.04 of the General Conditions.
Article VI
Representative of the Borrower; Addresses
Section 6.01. The Minister of Finance or the Deputy Minister of
Finance of the Borrower is designated as representative of the
Borrower for the purposes of Section 11.03 of the General
Conditions.
Section 6.02. The following addresses are specified for the
purposes of Section 11.01 of the General Conditions:
For the Borrower:
Ministry of Finance
Ilyinka Street 9
103009 Moscow
Russian Federation
Telex:
112008
For the Bank:
International Bank for
Reconstruction and Development
1818 H Street, N. W.
Washington, D. C. 20433
United States of America
Cable address: Telex:
INTBAFRAD 197688 (TRT),
Washington, D. C. 248423 (RCA),
64145 (WUI) or
82987 (FTCC)
In witness whereof, the parties hereto, acting through their
duly authorized representatives, have caused this Agreement to be
signed in their respective names in the District of Columbia,
United States of America, as of the day and year first above
written.
SCHEDULE 1
WITHDRAWAL OF THE PROCEEDS OF THE LOAN
1. The table below sets forth the Categories of items to be
financed out of the proceeds of the Loan, the allocation of the
amounts of the Loan to each Category and the percentage of
expenditures for items so to be financed in each Category:
-------------------T------------------T--------------------------¬
¦ ¦ Amount of the ¦ % of ¦
¦ Category ¦ Loan Allocated ¦ Expenditures ¦
¦ ¦ (Expressed in ¦ to be Financed ¦
¦ ¦Dollar Epuivalent)¦ ¦
+------------------+------------------+--------------------------+
¦(1) Goods under ¦ 2,000,000 ¦100% of foreign ¦
¦ Part A of ¦ ¦expenditures, 100% of ¦
¦ the Project ¦ ¦local expenditures ¦
¦ ¦ ¦(ex-factory cost) and ¦
¦ ¦ ¦70% of local expenditures ¦
¦ ¦ ¦for other items procured ¦
¦ ¦ ¦locally ¦
¦ ¦ ¦ ¦
¦(2) Technical ¦ 21,500,000 ¦100% ¦
¦ assistance ¦ ¦ ¦
¦ and training ¦ ¦ ¦
¦ under Part A ¦ ¦ ¦
¦ of the Project¦ ¦ ¦
¦ ¦ ¦ ¦
¦(3) Works under ¦ 1,500,000 ¦100% of foreign ¦
¦ Part A of ¦ ¦expenditures and 70% of ¦
¦ the Project ¦ ¦local expenditures ¦
¦ ¦ ¦ ¦
¦(4) Goods under ¦ 4,500,000 ¦100% of foreign ¦
¦ Part B of ¦ ¦expenditures, 100% of ¦
¦ the Project ¦ ¦local expenditures ¦
¦ ¦ ¦(ex-factory cost) and ¦
¦ ¦ ¦70% of local expenditures ¦
¦ ¦ ¦for other items procured ¦
¦ ¦ ¦locally ¦
¦ ¦ ¦ ¦
¦(5) Technical ¦ 3,500,000 ¦100% ¦
¦ Assistance ¦ ¦ ¦
¦ and training ¦ ¦ ¦
¦ under Part B ¦ ¦ ¦
¦ of the Project¦ ¦ ¦
¦ ¦ ¦ ¦
¦(6) Technical ¦ 3,000,000 ¦100% ¦
¦ Assistance ¦ ¦ ¦
¦ and training ¦ ¦ ¦
¦ under Part C ¦ ¦ ¦
¦ of the Project¦ ¦ ¦
¦ ¦ ¦ ¦
¦(7) Works under ¦ 3,500,000 ¦100% of foreign ¦
¦ Part C of the ¦ ¦expenditures and 70% of ¦
¦ Project ¦ ¦local expenditures ¦
¦ ¦ ¦ ¦
¦(8) Refunding of ¦ 500,000 ¦Amount due pursuant to ¦
¦ Project ¦ ¦Section 2.02 (c) of this ¦
¦ Preparation ¦ ¦Agreement ¦
+------------------+------------------+--------------------------+
¦ TOTAL ¦ 40,000,000 ¦ ¦
L------------------+------------------+---------------------------
2. For the purposes of this Schedule:
(a) the term "foreign expenditures" means expenditures in the
currency of any country other than that of the Borrower for goods
or services supplied from the territory of any country other than
that of the Borrower; and
(b) the term "local expenditures" means expenditures in the
currency of the Borrower or for goods or services supplied from
the territory of the Borrower; provided, however, that if the
currency of the Borrower is also that of another country from the
territory of which goods or services are supplied, expenditures in
such currency for such goods or services shall be deemed to be
"foreign expenditures."
3. Notwithstanding the provisions of paragraph 1 above, no
withdrawals shall be made in respect of payments made for
expenditures prior to the date of this Agreement.
SCHEDULE 2
DESCRIPTION OF THE PROJECT
The objectives of the Project are to assist the Borrower in:
(i) developing sound proposals for future projects suitable for
Bank financing;
(ii) strengthening capacity to coordinate and manage the flow
of external assistance;
(iii) improving the implementation capabilities of local
institutions involved in the execution of projects; and
(iv) developing the local consulting industry.
The Project consists of the following parts, subject to such
modifications thereof as the Borrower and the Bank may agree upon
from time to time to achieve such objectives:
Part A
Fund for Project Preparation Activities
1. Establishment and operation of a fund for the financing and
carrying out of preparatory activities for future projects for
which Bank financing has been or is expected to be requested.
2. Pilot projects related to project preparatory activities as
described in Part A.1 above.
Part B
Strengthening of Foreign Assistance Management and
Coordination
Improving the institutional and operational capability of the
Center and other designated government organizations to manage and
coordinate externally financed activities through the acquisition
of equipment, employment of consultants and the provision of
training, including study tours.
Part C
Business Opportunities Bureau
1. Establishment of a business opportunities bureau, carrying
out of business outreach programs, including seminars, to provide
local firms advice and training on opportunities and requirements
for competing for externally financed contracts and establishment
of a database on enterprises with a potential interest in
participating in the bidding procedures under such contracts.
2. Refurbishment of premises of the business opportunities
bureau.
* * *
The Project is expected to be completed by June 30, 1998.
SCHEDULE 3
AMORTIZATION SCHEDULE
-----------------------------------T-----------------------------¬
¦ Date Payment Due ¦ Payment of Principal ¦
¦ ¦ (expressed in dollars) <*> ¦
+----------------------------------+-----------------------------+
¦On each January 15 and July 15 ¦ ¦
¦ beginning July 15, 2000 ¦ ¦
¦ through July 15, 2011 ¦ 1,665,000 ¦
¦ ¦ ¦
¦On January 15, 2012 ¦ 1,705,000 ¦
L----------------------------------+------------------------------
--------------------------------
<*> The figures in this column represent dollar equivalents
determined as of the respective dates of withdrawal. See General
Conditions, Sections 3.04 and 4.03.
PREMIUMS ON PREPAYMENT
Pursuant to Section 3.04 (b) of the General Conditions, the
premium payable on the principal amount of any maturity of the
Loan to be prepaid shall be the percentage specified. for the
applicable time of prepayment below:
---------------------------T-------------------------------------¬
¦ Time of Prepayment ¦ Premium ¦
+--------------------------+-------------------------------------+
¦ ¦The interest rate (expressed as a ¦
¦ ¦percentage per annum) applicable to ¦
¦ ¦the Loan on the day of prepayment ¦
¦ ¦multiplied by: ¦
¦ ¦ ¦
¦Not more than three years ¦ 0.18 ¦
¦ before maturity ¦ ¦
¦ ¦ ¦
¦More than three years but ¦ 0.35 ¦
¦ not more than six ¦ ¦
¦ years before maturity ¦ ¦
¦ ¦ ¦
¦More than six years but ¦ 0.65 ¦
¦ not more than 11 years¦ ¦
¦ before maturity ¦ ¦
¦ ¦ ¦
¦More than 11 years but not¦ 0.88 ¦
¦ more than 15 years ¦ ¦
¦ before maturity ¦ ¦
¦ ¦ ¦
¦More than 15 years before ¦ 1.00 ¦
¦maturity ¦ ¦
L--------------------------+--------------------------------------
SCHEDULE 4
PROCUREMENT AND CONSULTANTS' SERVICES
Section I. PROCUREMENT OF GOODS AND WORKS
Part A
International Competitive Bidding
1. Except as provided in Part C hereof, goods shall be procured
under contracts awarded in accordance with procedures consistent
with those set forth in Sections I and II of the "Guidelines for
Procurement under IBRD Loans and IDA Credits" published by the
Bank in May 1992 (the Guidelines), and in accordance with the
following additional procedures.
(a) When contract award is delayed beyond the original bid
validity period, such period may be extended once, subject to and
in accordance with the provisions of paragraph 2.59 of the
Guidelines, by the minimum amount of time required to complete the
evaluation, obtain necessary approvals and clearances and award
the contract. The bid validity period may be extended a second
time only if the bidding documents or the request for extension
shall provide for appropriate adjustment of the bid price to
reflect changes in the cost of inputs for the contract over the
period of extension. Such an increase in the bid price shall not
be taken into account in the bid evaluation. With respect to each
contract made subject to the Bank's prior review in accordance
with the provisions of Part D.1 (a) of this Section, the Bank's
prior approval will be required for:
(i) a first extension of the bid validity period if the period
of extension exceeds sixty (60) days; and
(ii) any subsequent extension of the bid validity period.
(b) In the procurement of goods in accordance with this Part A,
the Borrower shall use the relevant standard bidding documents
issued by the Bank, with such modifications thereto as the Bank
shall have agreed to be necessary for the purposes of the Project.
Where no relevant standard bidding documents have been issued by
the Bank, the Borrower shall use bidding documents based on other
internationally recognized standard forms agreed with the Bank.
2. To the extent practicable, contracts shall be grouped in bid
packages estimated to cost the equivalent of 300,000 USD or more
each.
Part B
Preference for Domestic Manufacturers
In the procurement of goods in accordance with the procedures
described in Part A 1 hereof, goods manufactured in the Russian
Federation may be granted a margin of preference in accordance
with, and subject to, the provisions of paragraphs 2.55 and 2.56
of the Guidelines and paragraphs 1 through 4 of Appendix 2
thereto.
Part C
Other Procurement Procedures
1. Items or groups of items estimated to cost less than the
equivalent of 300,000 USD or less per contract and up to an
aggregate amount not to exceed the equivalent of 3,500,000 USD,
may be procured under contracts awarded on the basis of comparison
of price quotations obtained from at least three suppliers from at
least three different countries eligible under the Guidelines, in
accordance with procedures acceptable to the Bank.
2. Items or groups of items estimated to cost the equivalent of
50,000 USD or less per contract and up to an aggregate amount not
to exceed the equivalent of 500,000 USD may be procured under
contracts awarded on the basis of comparison of price quotations
obtained from at least three suppliers eligible under the
Guidelines, in accordance with procedures acceptable to the Bank.
3. Goods which the Bank agrees:
(a) are of a proprietary nature;
(b) the timely supply thereof is critical for efficient project
execution; or
(c) need to be compatible with other installed equipment, up to
an aggregate amount not to exceed the equivalent of 500,000 USD,
may be purchased from suppliers on the basis of negotiated
contracts pursuant to procedures acceptable to the Bank.
4. (a) Subject to the provision of paragraph 4 (b) below, works
may be procured under contracts awarded on the basis of
competitive bidding, advertised locally, in accordance with
procedures satisfactory to the Bank.
(b) Works estimated to cost less than the equivalent of 50,000
USD per contract, up to an aggregate amount not to exceed the
equivalent of 800,000 USD, may be procured under contracts awarded
on the basis of comparison of price quotations obtained from at
least three contractors, eligible under the Guidelines, in
accordance with procedures acceptable to the Bank.
Part D
Review by the Bank of Procurement Decisions
1. Review of invitations to bid and of proposed awards and
final contracts:
(a) With respect: (i) to each contract awarded in accordance
with Parts A and C.3; and (ii) the first two contracts awarded in
accordance with Parts C.1, C.2 and C.4, the procedures set forth
in paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply.
Where payments for such contract are to be made out of the Special
Account, such procedures shall be modified to ensure that the two
conformed copies of the contract required to be furnished to the
Bank pursuant to said paragraph 2 (d) shall be furnished to the
Bank prior to the making of the first payment out of the Special
Account in respect of such contract.
(b) With respect to each contract not governed by the preceding
paragraph, the procedures set forth in paragraphs 3 and 4 of
Appendix 1 to the Guidelines shall apply. Where payments for such
contract are to be made out of the Special Account, said
procedures shall be modified to ensure that the two conformed
copies of the contract together with the other information
required to be furnished to the Bank pursuant to said paragraph 3
shall be furnished to the Bank as part of the evidence to be
furnished pursuant to paragraph 4 of Schedule 6 to this Agreement.
(c) The provisions of the preceding subparagraph (b) shall not
apply to contracts on account of which withdrawals from the Loan
Account are to be made on the basis of statements of expenditure.
2. The figure of 15% is hereby specified for purposes of
paragraph 4 of Appendix 1 to the Guidelines.
Section II. EMPLOYMENT OF CONSULTANTS
1. In order to assist the Borrower in carrying out the Project,
the Borrower shall, or shall cause its department or agency
responsible for the execution of a Sub-project to, employ
consultants whose qualifications, experience and terms and
conditions of employment shall be satisfactory to the Bank. Such
consultants shall be selected in accordance with principles and
procedures satisfactory to the Bank on the basis of the
"Guidelines for the Use of Consultants by World Bank Borrowers and
by The World Bank as Executing Agency" published by the Bank in
August 1981 (the Consultants' Guidelines). For complex, time-based
assignments, the Borrower shall employ such consultants under
contracts using the standard form of contract for consultants'
services issued by the Bank, with such modifications as shall have
been agreed by the Bank. Where no relevant standard contract
documents have been issued by the Bank, the Borrower shall use
other standard forms agreed with the Bank.
2. Notwithstanding the provisions of paragraph 1 of this
Section, the provisions of the Consultants' Guidelines requiring
prior Bank review or approval of budgets, short lists, selection
procedures, letters of invitation, proposals, evaluation reports
and contracts shall not apply to contracts estimated to cost less
than 100,000 USD equivalent each for firms and 50,000 USD
equivalent each for individuals. However, this exception to prior
Bank review shall not apply to the terms of reference for such
contracts with firms or to the employment of individuals, to
single source selection of firms, to assignments of a critical
nature as reasonably determined by the Bank and to amendments of
contracts raising the contract value to 50,000 USD equivalent or
above for individuals and 100,000 USD or above for consulting
firms.
SCHEDULE 5
IMPLEMENTATION PROGRAM
1. The Center shall be responsible for the overall coordination
of all Project activities. It shall cause all activities under the
Project (hereinafter referred to as the Sub-projects) to be
carried out in accordance with the provisions of this Agreement.
For this purpose, the Borrower shall establish and monitor
arrangements, satisfactory to the Bank, for ensuring effective
coordination among the departments and agencies of the Borrower
involved in the implementation of the Project.
2. The purpose and scope of each Sub-project, the method of
implementation thereof and the specific allocation thereto of
proceeds of the Loan shall be determined by agreement between the
Borrower and the Bank.
Criteria for Sub-project Eligibility
3. A Sub-project shall be one of the following:
(a) under Part A of the Project, preparatory activities,
including consultants' services, goods and rehabilitation works
needed to carry out such activities, for projects for which
financing by the Bank, under loans made or to be made by the Bank
other than the Loan, has been or is expected to be requested;
(b) under Part B of the Project:
(i) a program to strengthen the capacity and capability of
institutions in the Russian Federation for project planning and
implementation and economic development, including, inter alia,
training and overseas study tours and the acquisition of
equipment; and
(ii) a program for overall development of the administration
and management of technical and financial assistance; and
(c) under Part C of the Project:
(i) the refurbishment of Center premises which house the
business opportunities bureau;
(ii) development of a data base on enterprises with a potential
interest in bidding in externally financed projects;
(iii) business outreach, including information and marketing
programs; or
(iv) training programs on procurement procedures for interested
local firms.
4. A Sub-project shall have no equally suitable financing
available from other external financing agencies.
Sub-project proposals
5. Except as the Bank may otherwise agree, the Borrower shall
submit, for each Sub-project, the following to the Bank for its
approval:
(a) a description of the studies and work to be carried out in
connection with the proposed Sub-project, including a time
schedule for, the purposes and objectives of, and the benefits
expected from, such Sub-project;
(b) the proposed selection procedures, qualifications, terms of
reference and duration of service for any consultants to be
engaged for the purposes of the proposed Sub-project;
(c) a description of the role of the department or agency or
personnel of the Borrower to be responsible for the execution of
the proposed Sub-project and counterpart staff, if any, to be
supplied by the Borrower;
(d) a general description of the arrangements to be made by the
executing agencies for the provision of office space, secretariat
facilities, transportation and other operational facilities
required for the Sub-project to proceed efficiently;
(e) estimated foreign and local costs of the proposed
Subproject broken down by major items and showing amounts to be
financed by the Borrower and out of the proceeds of the Loan,
respectively, and an estimated disbursement schedule; and
(f) measures to be taken to comply with paragraphs 6 (b) and
(c) below.
6. Consultants
(a) Consultants shall be employed as provided in Section II of
Schedule 4 to this Agreement.
(b) The Borrower shall take or cause to be taken all reasonable
measures to facilitate the work of consultants in the performance
of their services for the Project and make available to them all
information relevant to the Sub-project concerned.
(c) The Borrower shall not permit the amendment or waiver of
any of the terms and conditions of employment of consultants
employed for any Sub-project, or the grant of any material
extension of time or any approval of sub-contracts or
modifications thereof, or the agreement to substitute personnel of
such consultants, without prior agreement between the Borrower and
the Bank. The Borrower shall promptly inform the Bank if it
proposes to suspend payments under or terminate any contract with
such consultants.
(d) The Borrower shall cause the consultants employed for the
Project promptly to furnish to the Bank copies of the documents
prepared by them for the Project, including reports and draft
thereof, in such number as the Bank shall reasonably request.
(e) The Borrower shall establish arrangements and procedures,
satisfactory to the Bank, for supervising and directing the work
of any consultants employed for Sub-projects and reviewing the
reports and recommendations of such consultants.
7. The Borrower shall prepare, under guidelines satisfactory to
the Bank, and furnish to the Bank, without limitation in the
provisions of Section 9.07 (a) (iii) of the General Conditions,
semi-annual progress reports on the carrying out of the Project,
to be provided to the Bank by March 31 and September 30 in each
year, for the periods ending December 31 and June 30,
respectively.
SCHEDULE 6
SPECIAL ACCOUNT
1. For the purposes of this Schedule:
(a) the term "eligible Categories" means Categories (1) through
(7) set forth in the table in paragraph 1 of Schedule 1 to this
Agreement;
(b) the term "eligible expenditures" means expenditures in
respect of the reasonable cost of goods and services required for
the Project and to be financed out of the proceeds of the Loan
allocated from time to time to the eligible Categories in
accordance with the provisions of Schedule 1 to this Agreement;
and
(c) the term "Authorized Allocation" means an amount equivalent
to 3,000,000 USD to be withdrawn from the Loan Account and
deposited into the Special Account pursuant to paragraph 3 (a) of
this Schedule, provided, however, that unless the Bank shall
otherwise agree, the Authorized Allocation shall be limited to an
amount equivalent to 1,000,000 USD until the aggregate amount of
withdrawals from the Loan Account shall be equal to or exceed the
equivalent of 3,000,000 USD.
2. Payments out of the Special Account shall be made
exclusively for eligible expenditures in accordance with the
provisions of this Schedule.
3. After the Bank has received evidence satisfactory to it that
the Special Account has been duly opened, withdrawals of the
Authorized Allocation and subsequent withdrawals to replenish the
Special Account shall be made as follows:
(a) For withdrawals of the Authorized Allocation, the Borrower
shall furnish to the Bank a request or requests for a deposit into
the Special Account of an amount or amounts which do not exceed
the aggregate amount of the Authorized Allocation. On the basis of
such request or requests, the Bank shall, on behalf of the
Borrower, withdraw from the Loan Account and deposit in the
Special Account such amount or amounts as the Borrower shall have
requested.
(b) (i) For replenishment of the Special Account, the Borrower
shall furnish to the Bank requests for deposits into the Special
Account at such intervals as the Bank shall specify.
(ii) Prior to or at the time of each such request, the Borrower
shall furnish to the Bank the documents and other evidence
required pursuant to paragraph 4 of this Schedule for the payment
or payments in respect of which replenishment is requested. On the
basis of each such request, the Bank shall, on behalf of the
Borrower, withdraw from the Loan Account and deposit into the
Special Account such amount as the Borrower shall have requested
and as shall have been shown by said documents and other evidence
to have been paid out of the Special Account for eligible
expenditures. All such deposits shall be withdrawn by the Bank
from the Loan Account under the respective eligible Categories,
and in the respective equivalent amounts, as shall have been
justified by said documents and other evidence.
4. For each payment made by the Borrower out of the Special
Account, the Borrower shall, at such time as the Bank shall
reasonably request, furnish to the Bank such documents and other
evidence showing that such payment was made exclusively for
eligible expenditures.
5. Notwithstanding the provisions of paragraph 3 of this
Schedule, the Bank shall not be required to make further deposits
into the Special Account:
(a) if, at any time, the Bank shall have determined that all
further withdrawals should be made by the Borrower directly from
the Loan Account in accordance with the provisions of Article V of
the General Conditions and paragraph (a) of Section 2.02 of this
Agreement; or
(b) once the total unwithdrawn amount of the Loan allocated to
the eligible Categories, less the amount of any outstanding
special commitment entered into by the Bank pursuant to Section
5.02 of the General Conditions with respect to the Project, shall
equal the equivalent of twice the amount of the Authorized
Allocation. Thereafter, withdrawal from the Loan Account of the
remaining unwithdrawn amount of the Loan allocated to the eligible
Categories shall follow such procedures as the Bank shall specify
by notice to the Borrower. Such further withdrawals shall be made
only after and to the extent that the Bank shall have been
satisfied that all such amounts remaining on deposit in the
Special Account as of the date of such notice will be utilized in
making payments for eligible expenditures.
6. (a) If the Bank shall have determined at any time that any
payment out of the Special Account:
(i) was made for an expenditure or in an amount not eligible
pursuant to paragraph 2 of this Schedule; or
(ii) was not justified by the evidence furnished to the Bank,
the Borrower shall, promptly upon notice from the Bank:
(A) provide such additional evidence as the Bank may request;
or
(B) deposit into the Special Account (or, if the Bank shall so
request, refund to the Bank) an amount equal to the amount of such
payment or the portion thereof not so eligible or justified.
Unless the Bank shall otherwise agree, no further deposit by the
Bank into the Special Account shall be made until the Borrower has
provided such evidence or made such deposit or refund, as the case
may be.
(b) If the Bank shall have determined at any time that any
amount outstanding in the Special Account will not be required to
cover further payments for eligible expenditures, the Borrower
shall, promptly upon notice from the Bank, refund to the Bank such
outstanding amount.
(c) The Borrower may, upon notice to the Bank, refund to the
Bank all or any portion of the funds on deposit in the Special
Account.
(d) Refunds to the Bank made pursuant to paragraphs 6 (a), (b)
and (c) of this Schedule shall be credited to the Loan Account for
subsequent withdrawal or for cancellation in accordance with the
relevant provisions of this Agreement, including the General
Conditions.
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