Loan Number 3990 RU
LOAN AGREEMENT
BETWEEN RUSSIAN FEDERATION AND INTERNATIONAL
BANK FOR RECONSTRUCTION AND DEVELOPMENT
(Moscow, 22.V.1996)
Agreement, dated May 22, 1996, between Russian Federation (the
Borrower) and International Bank for Reconstruction and
Development (the Bank).
Whereas: (A) 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;
(B) Parts B and D.2 of the Project will be carried out by the
Participating Regions (as such term is defined hereinbelow) and
Parts C and D.3 of the Project will be carried out by Moscow City
(Moscow City), all with the Borrower's assistance and, as part of
such assistance, the Borrower will make available to Participating
Regions and Moscow City a part of the proceeds of the Loan as
provided in this Agreement; 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) The second sentence of Section 5.01 is modified to read:
"Except as the Bank and the Borrower shall otherwise agree, no
withdrawals shall be made: (a) on account of expenditures in the
territories of any country which is not a member of the Bank or
for goods produced in, or services supplied from, such
territories; or (b) for the purpose of any payment to persons or
entities, or for any import of goods, if such payment or import,
to the knowledge of the Bank, is prohibited by a decision of the
United Nations Security Council taken under Chapter VII of the
Charter of the United Nations."
(c) 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 and in the
Preamble to this Agreement have the respective meanings therein
set forth and the following additional terms have the following
meanings:
(a) "FHD" means the Federal Highway Department within MOT and
includes any successor or successors thereto;
(b) "Federal PIU" means the Project Implementation Unit
referred to in paragraph 2 of Schedule 5 to this Agreement;
(c) "Moscow City" means Moscow City, a subject of the Russian
Federation (an administrative subdivision of the Borrower), and
includes any successor or successors thereto;
(d) "Moscow City PIU" means the Moscow City Project
Implementation Unit referred to in paragraph 12(b) of Schedule 5
to this Agreement;
(e) "Moscow City Subsidiary Loan Agreement" means the agreement
entered into between the Borrower and Moscow City pursuant to
Section 3.01(d) of this Agreement, as the same may be amended from
time to time, and such term includes all schedules and agreements
supplemental to the Moscow City Subsidiary Loan Agreement;
(f) "MOT" means the Ministry of Transport of the Borrower and
includes any successor or successors thereto;
(g) "Participating Region" and "Participating Regions" mean,
singularly and collectively, the region or regions selected for
participation in the Project pursuant to paragraph 5(a) of
Schedule 5 to this Agreement;
(h) "Participating Regions Subsidiary Loan Agreement" and
"Participating Regions Subsidiary Loan Agreements" mean,
singularly and collectively, the agreement or agreements entered
into separately between the Borrower and each of the Participating
Regions pursuant to Section 3.01(c) of this Agreement, as the same
may be amended from time to time, and such terms include all
schedules and agreements supplemental to any Participating Regions
Subsidiary Loan Agreement or all Participating Regions Subsidiary
Loan Agreements respectively;
(i) "Regional PIU" means the Project Implementation Unit
referred to in paragraph 11(b) of Schedule 5 to this Agreement;
and
(j) "Special Accounts" means the accounts referred to in
Section 2.02 (b) of this Agreement.
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 three hundred fifty million dollars
(350,000,000 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,
works 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 Parts A and D.1,
Parts B and D.2 (separately in respect of each of the
Participating Regions), and Parts C and D.3 of the Project, open
and maintain in Dollars separate special deposit accounts in a
commercial bank or banks acceptable to the Bank on terms and
conditions satisfactory to the Bank, including appropriate
protection against set-off, seizure or attachment. Deposits into,
and payments out of, each of the respective Special Accounts shall
be made in accordance with the provisions of Schedule 6 to this
Agreement.
Section 2.03. The Closing Date shall be December 31, 2001 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 per cent (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 March 15 and September 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:
(i) shall carry out Parts A and D.I of the Project through MOT
and FHD, and
(ii) shall cause each of the Project Regions to carry out Parts
B and D.2 of the Project and Moscow City to carry out Parts C and
D.3 of the Project with due diligence and efficiency and in
conformity with appropriate administrative, engineering and
financial practices and shall provide, promptly as needed, the
funds, facilities, services and other resources required for such
Parts of the Project.
(b) Without limitation upon the provisions of paragraph (a) of
this Section, and except as the Borrower and the Bank shall
otherwise agree, the Borrower shall carry out Parts A and D.1 of
the Project and cause the Participating Regions and Moscow City to
carry out Parts B and D.2 and Parts C and D.3, respectively, of
the Project in accordance with the Implementation Program set
forth in Schedule 5 to this Agreement.
(c) The Borrower shall relend a portion of the proceeds of the
Loan to Participating Regions under separate subsidiary loan
agreements to be entered into between the Borrower and each of the
Participating Regions, under terms and conditions, compatible with
the terms and conditions of this Loan Agreement, which shall have
been approved by the Bank including but not limited to the
following:
(i) the Borrower shall onlend to each of the Participating
Regions an amount in various currencies that shall have an
aggregate value equivalent to the amount, agreed by the Bank, from
a total sum of thirty five million dollars (35,000,000 USD)
(Subsidiary Loan for purposes of this subsection);
(ii) term of the Subsidiary Loan shall be twelve to fifteen
years, including a three to five year grace period;
(iii) the Borrower shall charge a commitment fee at a rate
equal to the rate of commitment charge payable under Section 2.04
of this Agreement;
(iv) the Borrower shall charge interest on the principal amount
of the Subsidiary Loan withdrawn and outstanding from time to time
at a rate of 150 - 250 basis points above the rate payable under
Section 2.05 of this Agreement;
(v) the repayment of principal amount of the Subsidiary Loan
shall be the equivalent to the value (determined as of the date or
respective dates of repayment) of currency or currencies withdrawn
from the Loan Account or paid out of the Special Account on
account of expenditures for Parts B and D.2 of the Project; and
(vi) the terms and conditions specified in paragraph 11 of
Schedule 5 to this Agreement.
(d) The Borrower shall relend a portion of the proceeds of the
Loan to Moscow City under a subsidiary loan agreement to be
entered into between the Borrower and Moscow City, under terms and
conditions, compatible with the terms and conditions of this Loan
Agreement, which shall have been approved by the Bank including
but not limited to the following:
(i) the Borrower shall onlend an amount in various currencies
that shall have an aggregate value equivalent to the amount of
fifty million dollars (50,000,000 USD) (Subsidiary Loan for
purposes of this subsection);
(ii) term of the Subsidiary Loan shall be twelve to fifteen
years, including a three to five year grace period;
(iii) the Borrower shall charge a commitment fee at a rate
equal to the rate of commitment charge payable under Section 2.04
of this Agreement;
(iv) the Borrower shall charge interest on the principal amount
of the Subsidiary Loan withdrawn and outstanding from time to time
at a rate of 150 - 250 basis points above the rate payable under
Section 2.05 of this Agreement;
(v) the repayment of principal amount of the Subsidiary Loan
shall be the equivalent to the value (determined as of the date or
respective dates of repayment) of currency or currencies withdrawn
from the Loan Account or paid out of the Special Account on
account of expenditures for Parts C and D.3 of the Project; and
(vi) the terms and conditions specified in paragraph 12 of
Schedule 5 to this Agreement.
(e) The Borrower shall exercise its rights under the
Participating Regions Subsidiary Loan Agreements in such manner as
to protect the interests of the Borrower and the Bank and to
accomplish the purposes of the Loan, and, except as the Bank shall
otherwise agree, the Borrower shall not assign, amend, abrogate or
waive the Participating Regions Subsidiary Loan Agreements or any
provision thereof.
(f) The Borrower shall exercise its rights under the Moscow
City Subsidiary Loan Agreement in such manner as to protect the
interests of the Borrower and the Bank and to accomplish the
purposes of the Loan, and, except as the Bank shall otherwise
agree, the Borrower shall not assign, amend, abrogate or waive the
Moscow City Subsidiary Loan Agreement or any provision thereof.
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.
Section 3.03. For the purposes of Section 9.08 of the General
Conditions and without limitation thereto, the Borrower shall:
(a) prepare, on the basis of guidelines acceptable to the Bank,
and furnish to the Bank not later than six (6) months after the
Closing Date or such later date as may be agreed for this purpose
between the Borrower and the Bank, a plan designed to ensure the
sustainability of the Project; and
(b) afford the Bank a reasonable opportunity to exchange views
with the Borrower on said plan.
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 Parts A and
D.1 of the Project.
(b) The Borrower shall:
(i) have the records and accounts referred to in paragraph (a)
of this Section including those for the Special Accounts 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.
Section 4.02. The Borrower shall 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
Participating Regions and Moscow City responsible for carrying out
Parts B and D.2 and Parts C and D.3, respectively, of the Project.
(b) The Borrower shall cause each of the Participating Regions
and Moscow City to:
(i) have its records, accounts and financial statements and the
records and accounts for their respective 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:
(A) certified copies of its financial statements for such year
as so audited; and
(B) 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
such records, accounts and financial statements 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 cause each of the Participating
Regions and Moscow City to:
(i) maintain, 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
Remedies of the Bank
Section 5.01. Pursuant to Section 6.02 (1) of the General
Conditions, the following additional events are specified:
(a) Any of the Participating Regions or Moscow City shall have
failed to perform any of its obligations under the Participating
Regions Subsidiary Loan Agreement or Moscow City Subsidiary Loan
Agreement, respectively.
(b) As a result of events which have occurred after the date of
the Loan Agreement, an extraordinary situation shall have arisen
which shall make it improbable that any of the Participating
Regions or Moscow City will be able to perform its obligations
under the Participating Regions Subsidiary Loan Agreement or
Moscow City Subsidiary Loan Agreement, respectively.
Section 5.02. Pursuant to Section 7.01 (h) of the General
Conditions, the following additional event is specified, namely,
that any event specified in paragraph (a) of Section 5.01 of this
Agreement shall occur and shall continue for a period of sixty
days after notice thereof shall have been given by the Bank to the
Borrower.
Article VI
Effective Date; Termination
Section 6.01. The following event is specified as an additional
condition to the effectiveness of the Loan Agreement within the
meaning of Section 12.01 (c) of the General Conditions, namely,
that FHD has opened a Project bank account for the purposes of
Parts A and D.1 of the Project with an initial deposit in local
currency of the Borrower equivalent to at least five hundred
thousand dollars (500,000 USD) pursuant to paragraph 10 of
Schedule 5 to this Agreement.
Section 6.02. The date sixty (60) days after the date of this
Agreement is hereby specified for the purposes of Section 12.04 of
the General Conditions.
Article VII
Representative of the Borrower; Addresses
Section 7.01. The 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 7.02. 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
103097, 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 248423 (RCA)
Washington, D.C. 82987 (FTCC)
64145 (WUI) or
197688 (TRT)
SCHEDULE 1
WITHDRAWAL OF THE PROCEEDS OF THE LOAN
1. The table below sets forth the Categories of items (goods,
works and services) 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-------------------¬
¦ Category ¦ Amount of the ¦ % of ¦
¦ ¦ Loan Allocated ¦ Expenditures ¦
¦ ¦ (Expressed in ¦ to be Financed ¦
¦ ¦Dollar Equivalent)¦ ¦
+-------------------------+------------------+-------------------+
¦(1) Civil works ¦ ¦ 72% ¦
¦ ¦ ¦ ¦
¦(a) under Part A.1 ¦ 228,800,000 ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(b) under Part B.1 ¦ 25,300,000 ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(c) under Part C.1 ¦ 45,000,000 ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(2) Vehicles, Equipment, ¦ ¦100% of foreign ¦
¦ Materials and ¦ ¦expenditures, ¦
¦ Supplies ¦ ¦100% of local ¦
¦ ¦ ¦expenditures ¦
¦ ¦ ¦(ex-factory ¦
¦ ¦ ¦cost) and 70% ¦
¦ ¦ ¦of local ¦
¦ ¦ ¦expenditures for ¦
¦ ¦ ¦other items ¦
¦ ¦ ¦procured locally ¦
¦ ¦ ¦ ¦
¦(a) under Part A.2 ¦ 15,300,000 ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(b) under Part B.2 ¦ 4,300,000 ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(3) Consultants' ¦ ¦100% ¦
¦ Services and ¦ ¦ ¦
¦ Training ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(a) under Part D.1 ¦ 20,900,000 ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(b) under Part D.2 ¦ 5,400,000 ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦(c) under Part D.3 ¦ 5,000,000 ¦ ¦
¦ of the Project ¦ ¦ ¦
¦ ¦ ¦ ¦
¦ TOTAL ¦ 350,000,000 ¦ ¦
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.
3. Notwithstanding the provisions of paragraph 1 above, no
withdrawals shall be made in respect of:
(a) payments made for expenditures prior to the date of this
Agreement, except that withdrawals, in an aggregate amount not to
exceed 5,000,000 USD, may be made in respect of Categories 1(a)
and 3(a) on account of payments made for expenditures before that
date but after April 30, 1995;
(b) Categories 1(b), 2(b) and 3(b) in respect of each of the
Participating Regions, separately, unless the Bank has received
evidence, satisfactory to it, that the concerned Participating
Regions Subsidiary Loan Agreement has become effective and that it
has been duly authorized and is legally binding upon the parties
thereto in accordance with its terms; and
(c) Categories 1(c) and 3(c), unless the Bank has received
evidence, satisfactory to it, that Moscow City Subsidiary Loan
Agreement has become effective and that it has been duly
authorized and is legally binding upon the parties thereto in
accordance with its terms.
4. The Bank may require withdrawals from the Loan Account to be
made on the basis of statements of expenditure for expenditures
for goods, works, and services under contracts costing less than
50,000 USD equivalent, under such terms and conditions as the Bank
shall specify by notice to the Borrower.
SCHEDULE 2
DESCRIPTION OF THE PROJECT
The objectives of the Project are to:
(i) improve the technical condition of selected high priority
bridges on the federal and regional road systems and interchanges
with high traffic levels on federal highways;
(ii) assist in reform of the institutional structure of road
administration and the contracting industry;
(iii) strengthen the capabilities of FHD to manage the bridges
under its jurisdiction;
(iv) reduce a backlog of bridge rehabilitation and maintenance
on regional roads for up to five Participating Regions and Moscow
City; and
(v) improve the administrative, technical and financial
relationship of FHD and the regions of the Russian Federation.
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
Federal Bridges
1. Rehabilitation, repair, reconstruction, replacement and
widening of about 200 - 300 selected federal road bridges and the
improvement of 2 - 3 interchanges on the federal highways,
including grade separation.
2. Provision of equipment, materials and supplies required for
the management of bridges.
Part B
Bridges under Participating Regions
1. Rehabilitation, repair, reconstruction, replacement and
widening of about 20 selected local bridges in each of the
Participating Regions.
2. Provision of vehicles, equipment, materials and supplies
required for the maintenance of bridges.
Part C
Bridges under Moscow City
1. Rehabilitation, repair, reconstruction, replacement and
widening of about 20 selected bridges in Moscow City.
Part D
Technical Assistance
1. Provision of technical assistance to the Borrower for
strengthening of the federal road and bridge management
administration and system including:
(a) provision of project implementation (including selection of
federal bridges and procurement) and supervision support to the
Federal PIU and FHD;
(b) designing of federal bridge works and supervision of such
works;
(c) improvement of the FHD bridge management system and
extending it to regional road administrations;
(d) training of federal road and bridge staff in bridge
maintenance and bridge management system; and
(e) improvement of the administrative, technical and financial
relationship of FHD and the regions of the Russian Federation.
2. Provision of technical assistance to the Participating
Regions for strengthening of the regional road and bridge
management administration and system, including:
(a) provision of project implementation (including selection of
regional bridges and procurement) and supervision support to the
Regional PIUs and the concerned regional road administrations;
(b) designing of regional bridge works and supervision of such
works; and
(c) training of regional road and bridge staff in bridge
maintenance and bridge management system.
3. Provision of technical assistance to the Department of
Engineering of Moscow City for the implementation of the Project,
including:
(a) provision of project implementation (including selection of
Moscow City bridges and procurement) and supervision support to
the Moscow City PIU;
(b) designing of Moscow City bridge works and supervision of
such works; and
(c) training of Moscow City road and bridge staff in bridge
maintenance and bridge management system.
The Project is expected to be completed by June 30, 2001.
SCHEDULE 3
AMORTIZATION SCHEDULE
------------------------------------T----------------------------¬
¦ Date Payment Due ¦ Payment of Principal ¦
¦ ¦(expressed in dollars) <*> ¦
+-----------------------------------+----------------------------+
¦On each March 15 and September 15 ¦ ¦
¦ ¦ ¦
¦ beginning September 15, 2001 ¦ ¦
¦ through September 15, 2012 ¦ 14,585,000 ¦
¦ ¦ ¦
¦and on March 15, 2013 ¦ 14,545,000 ¦
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 not ¦ 0.35 ¦
¦more than six years before ¦ ¦
¦maturity ¦ ¦
¦ ¦ ¦
¦More than six years but not ¦ 0.65 ¦
¦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
General
Goods and works shall be procured in accordance with the
provisions of Section I of the "Guidelines for Procurement under
IBRD Loans and IDA Credits" published by the Bank in January 1995
(the Guidelines) and the following provisions of this Section, as
applicable.
Part B
International Competitive Bidding
1. Except as otherwise provided in Part C of this Section,
goods and works shall be procured under contracts awarded in
accordance with the provisions of Section II of the Guidelines and
paragraph 5 of Appendix 1 thereto.
2. The following provisions shall apply to goods and works to
be procured under contracts awarded in accordance with the
provisions of paragraph 1 of this Part B.
(a) Prequalification
Bidders for civil works shall be prequalified in accordance
with the provisions of paragraph 2.09 and 2.10 of the Guidelines.
(b) Preference for domestically manufactured goods
The provisions of paragraphs 2.54 and 2.55 of the Guidelines
and Appendix 2 thereto shall apply to goods manufactured in the
territory of the Borrower.
(c) Dispute Review Board
Each contract for works estimated to cost 50,000,000 USD
equivalent or more shall include the provisions for a dispute
review board set forth in the standard bidding documents for works
referred to in paragraph 2.12 of the Guidelines.
Part C
Other Procurement Procedures
1. National Competitive Bidding
(a) Works under Part A.1 of the Project, estimated to cost
3,000,000 USD equivalent or less per contract and 10,000,000 USD
equivalent or less in the aggregate, may be procured under
contracts awarded in accordance with the provisions of paragraphs
3.3 and 3.4 of the Guidelines.
(b) Works for each of the Participating Regions under Part B.1
of the Project, estimated to cost 1,000,000 USD equivalent or less
per contract and 1,000,000 USD equivalent or less in the
aggregate, may be procured under contracts awarded in accordance
with the provisions of paragraphs 3.3 and 3.4 of the Guidelines.
(c) Works under Part C.1 of the Project, estimated to cost
1,000,000 USD equivalent or less per contract and 1,000,000 USD
equivalent or less in the aggregate, may be procured under
contracts awarded in accordance with the provisions of paragraphs
3.3 and 3.4 of the Guidelines.
2. International Shopping
(a) Except as provided in paragraphs 3(a) and 4 hereof, goods
under Part A.2 of the Project, estimated to cost 300,000 USD
equivalent or less per contract and 400,000 USD equivalent or less
in the aggregate, may be procured under contracts awarded on the
basis of international shopping procedures in accordance with the
provisions of paragraphs 3.5 and 3.6 of the Guidelines.
(b) Except as provided in paragraphs 3(b) and 4 hereof, goods
for each of the Participating Regions under Part B.2 of the
Project, estimated to cost 300,000 USD equivalent or less per
contract and 400,000 USD equivalent or less in the aggregate, may
be procured under contracts awarded on the basis of international
shopping procedures in accordance with the provisions of
paragraphs 3.5 and 3.6 of the Guidelines.
3. National Shopping
(a) Except as provided in paragraph 4 hereof, goods under Part
A.2 of the Project, estimated to cost 50,000 USD equivalent or
less per contract and 200,000 USD equivalent or less in the
aggregate, may be procured under contracts awarded on the basis of
national shopping procedures in accordance with the provisions of
paragraphs 3.5 and 3.6 of the Guidelines.
(b) Except as provided in paragraph 4 hereof, goods for each of
the Participating Regions under Part B.2 of the Project, estimated
to cost 50.000 USD equivalent or less per contract and 100,000 USD
equivalent or less in the aggregate, may be procured under
contracts awarded on the basis of national shopping procedures in
accordance with the provisions of paragraphs 3.5 and 3.6 of the
Guidelines.
4. Direct Contracting
Goods under Part A.2 and B.2 of the Project which are of a
proprietary nature and costing 100,000 USD equivalent or less in
the aggregate, may, with the Bank's prior agreement, be procured
in accordance with the provisions of paragraph 3.7 of the
Guidelines.
Part D
Review bv the Bank of Procurement Decisions
1. Procurement Planning
Prior to the issuance of any invitations to prequalify for
bidding or to bid for contracts, the proposed procurement plan for
the Project shall be furnished to the Bank for its review and
approval, in accordance with the provisions of paragraph 1 of
Appendix 1 to the Guidelines. Procurement of all goods and works
shall be undertaken in accordance with such procurement plan as
shall have been approved by the Bank, and with the provisions of
said paragraph 1.
2. Prior Review
With respect to:
(a) each contract for goods and works under Part A hereof;
(b) the first contract for works under Part C.1 hereof; and
(c) each contract for goods under Part C.4 hereof, the
procedures set forth in paragraphs 2 and 3 of Appendix 1 to the
Guidelines shall apply.
3. Post Review
With respect to each contract not governed by paragraph 2 of
this Part, the procedures set forth in paragraph 4 of Appendix 1
to the Guidelines shall apply.
Section II. EMPLOYMENT OF CONSULTANTS
1. Consultants' services for Part D of the Project shall be
procured under contracts awarded in accordance with the provisions
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 Consultant Guidelines). For complex,
time-based assignments, such contracts shall be based on 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, other standard forms acceptable to the Bank
shall be used.
2. Notwithstanding the provisions of paragraph 1 of this
Section, the provisions of the Consultant 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:
(a) contracts for the employment of consulting firms estimated
to cost less than 75,000 USD equivalent each; or
(b) contracts for the employment of individuals estimated to
cost less than 50,000 USD equivalent each. However, said
exceptions to prior Bank review shall not apply to:
(a) the terms of reference for such contracts;
(b) single-source selection of consulting firms;
(c) assignments of a critical nature, as reasonably determined
by the Bank;
(d) amendments to contracts for the employment of consulting
firms raising the contract value to 75,000 USD equivalent or
above; or
(e) amendments to contracts for the employment of individual
consultants raising the contract value to 50,000 USD equivalent or
above.
SCHEDULE 5
IMPLEMENTATION PROGRAM
1. FHD shall, under the general supervision and guidance of
MOT, be responsible for the overall coordination of Project
activities and providing information relating thereto to the Bank.
2. The Borrower shall maintain and strengthen the Project
Implementation Unit (Dorinvest), established under the Highway
Rehabilitation and Maintenance Project (Loan No. 3706 RU), in the
FHD for the purpose of implementing Parts A and D.1 of the
Project.
3. The Borrower shall carry out an Action Plan, comprising the
following measures, agreed with the Bank, in a manner satisfactory
to the Bank:
(a) clearing the backlog of bridge rehabilitation and
maintenance on federal roads;
(b) implementing a program to improve the bridge management
system in FHD;
(c) improving the administrative, technical, and financial
relationship of FHD and the regions of the Russian Federation;
(d) strengthening the capabilities of FHD to assess
environmental impacts of bridge works; and
(e) improvement of bridge management in the Participating
Regions.
4. The Borrower shall carry out Parts A and D.1 of the Project
in accordance with a Project Implementation Schedule agreed with
the Bank.
5. (a) The Borrower shall, in consultation with the Bank and in
accordance with selection criteria and schedule acceptable to the
Bank, select the region or regions for participation in the
Project from the following five subjects of the Russian Federation
(administrative subdivisions of the Borrower): Tver Region,
Vologda Region, Leningrad Region, Kirov Region, and Novgorod
Region including any successor or successors thereto.
(b) The Borrower shall select bridges and interchanges to be
included in Part A of the Project in accordance with the
methodology and criteria agreed with the Bank.
6. Without limiting the generality of its obligation under
Section II of Schedule 4 hereof, the Borrower shall, by November
30, 1996, engage consultants, under terms of reference
satisfactory to the Bank, for engineering design of bridge works
selected under Part A of the Project and included in the
Borrower's 1997 - 99 bridge works schedule.
7. The Borrower shall, by December 31, 1996, discuss with the
Bank the recommendations of the road financing study carried out
under the Highway Rehabilitation and Maintenance Project (Loan No.
3706 RU), and, thereafter, take measures for improving the road
financing system for federal and regional roads.
8. The Borrower shall, within one month after the end of each
calendar quarter, furnish to the Bank a quarterly progress report
of the implementation of Parts A and D.1 of the Project for the
previous quarter in form and detail satisfactory to the Bank.
9. The Borrower shall, by December 31, 1998, carry out a mid-
term review, in consultation with the Bank, for evaluating the
overall progress in the implementation of Parts A and D.1 of the
Project and adopting such measures as may be necessary to resolve
any issues in respect thereof.
10. The Borrower shall:
(a) cause FHD to open a Project bank account for the purposes
of Parts A and D.1 of the Project with an initial deposit in local
currency of the Borrower equivalent to at least five hundred
thousand dollars (500,000 USD); and
(b) within twelve months of the effectiveness of this Agreement
increase and, until completion of the Project, maintain the said
account with a minimum balance, through quarterly replenishments,
equivalent to one million dollars (1,000,000 USD) or such other
amount as may be agreed by the Bank from time to time.
11. The Borrower shall under the Participating Regions
Subsidiary Loan Agreements cause each of the Participating
Regions, inter alia, to:
(a) declare its commitment to the objectives of the Project as
set forth in Schedule 2 to this Agreement, and, to this end, to
carry out Parts B and D.2 of the Project with due diligence and
efficiency and in conformity with appropriate administrative,
financial, and engineering practices, and to provide, promptly as
needed, the funds, facilities, services and other resources
required for Parts B and D.2 of the Project;
(b) within one month of the date of effectiveness of the
relevant Participating Regions Subsidiary Loan Agreement,
establish and maintain a Project Implementation Unit in its
respective road administration, with adequate staff, funding and
facilities for the purpose of implementing Parts B and D.2 of the
Project. Without limiting the generality of the foregoing, each of
the Participating Regions shall assign to its respective Regional
PIU on a full-time basis at least the following:
(i) a Project manager,
(ii) a bridge engineer, and
(iii) a bilingual secretary;
(c) carry out Parts B and D.2 of the Project in accordance with
a Project Implementation Schedule agreed with the Borrower and the
Bank;
(d) select bridges to be included in Part B of the Project in
accordance with the methodology and criteria agreed with the
Borrower and the Bank;
(e) without limiting the generality of its respective
obligation under Section II of Schedule 1 hereof, engage
consultants, under terms of reference satisfactory to the Borrower
and the Bank:
(i) within two months of the date of effectiveness of the
relevant Participating Regions Subsidiary Loan Agreement, for
strengthening the capacity of its respective Regional PIU; and
(ii) within four months of the date of effectiveness of the
relevant Participating Regions Subsidiary Loan Agreement, for
engineering design of bridge works selected under Part B of the
Project and included in its respective bridge works schedule;
(f) within one month after the end of each calendar quarter,
furnish to the Borrower and the Bank a quarterly progress report
of the implementation of Parts B and D.2 of the Project for the
previous quarter in form and detail satisfactory to the Borrower
and the Bank;
(g) after one year of the date of effectiveness of the relevant
Participating Regions Subsidiary Loan Agreement, carry out a
review, in consultation with the Borrower and the Bank, for
evaluating the overall progress in the implementation of Parts B
and D.2 of the Project and adopting such measures as may be
necessary to resolve any issues in respect thereof;
(h) within one month of the date of effectiveness of the
relevant Participating Regions Subsidiary Loan Agreement, open a
Project bank account for the purposes of Parts B and D.2 of the
Project with an initial deposit in local currency of the Borrower
equivalent to at least three hundred thousand dollars (300,000
USD) and, until completion of the Project, maintain the said
account with a minimum balance, through quarterly replenishments,
equivalent to the said amount or such other amount as may be
agreed by the Borrower and the Bank from time to time;
(i) duly perform all its obligations under its Participating
Regions Subsidiary Loan Agreement and except as the Borrower and
the Bank may otherwise agree, not take or concur in any action
which would have the effect of amending, abrogating, assigning or
waiving its Participating Regions Subsidiary Loan Agreement or any
provision thereof;
(j) exchange views with the Borrower and the Bank with regard
to the progress of Parts B and D.2 of the Project, the performance
of its obligations under the relevant Participating Regions
Subsidiary Loan Agreement, and other matters relating to the
purposes of the Loan; and
(k) promptly inform the Borrower and the Bank of any condition
which interferes or threatens to interfere with the progress of
Parts B and D.2 of the Project, the accomplishment of the purposes
of the Loan, or the performance by it of its obligations under its
Participating Regions Subsidiary Loan Agreement.
12. The Borrower shall under the Moscow City Subsidiary Loan
Agreement cause Moscow City, inter alia, to:
(a) declare its commitment to the objectives of the Project as
set forth in Schedule 2 to this Agreement, and, to this end, to
carry out Parts C and D.3 of the Project with due diligence and
efficiency and in conformity with appropriate administrative,
financial, and engineering practices, and to provide, promptly as
needed, the funds, facilities, services and other resources
required for Parts C and D.3 of the Project;
(b) within one month of the date of effectiveness of the Moscow
City Subsidiary Loan Agreement, establish and maintain a Project
Implementation Unit in its Engineering Department, with adequate
staff, funding and facilities for the purpose of implementing
Parts C and D.3 of the Project. Without limiting the generality of
the foregoing, Moscow City shall assign to its PIU on a full-time
basis at least the following:
(i) a Project manager;
(ii) a bridge engineer; and
(iii) a bilingual secretary;
(c) carry out Parts C and D.3 of the Project in accordance with
a Project Implementation Schedule agreed with the Borrower and the
Bank;
(d) select bridges to be included in Part C of the Project in
accordance with the methodology and criteria agreed with the
Borrower and the Bank;
(e) without limiting the generality of its obligations under
Section II of Schedule 1 hereof, engage consultants, under terms
of reference satisfactory to the Borrower and the Bank:
(i) within two months of the date of effectiveness of the
Moscow City Subsidiary Loan Agreement, for strengthening the
capacity of the Moscow City PIU; and
(ii) within four months of the date of effectiveness of the
Moscow City Subsidiary Loan Agreement, for engineering design of
bridge works selected under Part C of the Project and included in
Moscow City's bridge works schedule;
(f) within one month after the end of each calendar quarter,
furnish to the Borrower and the Bank a quarterly progress report
of the implementation of Parts C and D.3 of the Project for the
previous quarter in form and detail satisfactory to the Borrower
and the Bank;
(g) after one year of the date of effectiveness of the Moscow
City Subsidiary Loan Agreement, carry out a review, in
consultation with the Borrower and the Bank, for evaluating the
overall progress in the implementation of Parts C and D.3 of the
Project and adopting such measures as may be necessary to resolve
any issues in respect thereof;
(h) within one month of the date of effectiveness of the Moscow
City Subsidiary Loan Agreement, open a Project bank account for
the purposes of Parts C and D.3 of the Project with an initial
deposit in local currency of the Borrower equivalent to at least
five hundred thousand dollars (500,000 USD) and, until completion
of the Project, maintain the said account with a minimum balance,
through quarterly replenishments, equivalent to the said amount or
such other amount as may be agreed by the Borrower and the Bank
from time to time;
(i) duly perform all its obligations under the Moscow City
Subsidiary Loan Agreement and except as the Borrower and the Bank
may otherwise agree, not take or concur in any action which would
have the effect of amending, abrogating, assigning or waiving the
Moscow City Subsidiary Loan Agreement or any provision thereof;
(j) exchange views with the Borrower and the Bank with regard
to the progress of Parts C and D.3 of the Project, the performance
of its obligations under the Moscow City Subsidiary Loan
Agreement, and other matters relating to the purposes of the Loan;
and
(k) promptly inform the Borrower and the Bank of any condition
which interferes or threatens to interfere with the progress of
Parts C and D.3 of the Project, the accomplishment of the purposes
of the Loan, or the performance by Moscow City of its obligations
under the Moscow City Subsidiary Loan Agreement.
SCHEDULE 6
SPECIAL ACCOUNTS
1. For the purposes of this Schedule:
(a) the term "eligible Category" means:
(i) Categories 1(a), 2(a), and 3(a) set forth in the table in
paragraph 1 of Schedule 1 to this Agreement in respect of Parts A
and D.1 of the Project;
(ii) Categories 1(b), 2(b) and 3(b) set forth in said table in
respect of Parts B and D.2 of the Project; and
(iii) Categories 1(c) and 3(c) set forth in the said table in
respect of Parts C and D.3 of the Project;
(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 5,000,000 USD in respect of the Special Account for Parts A and
D.1 of the Project (Special Account A), an amount equivalent to
1,000,000 USD in respect of each of the Special Accounts for the
respective Participating Regions for Parts B and D.2 of the
Project (Special Accounts B, C, D, E, and F respectively), and an
amount equivalent to 2,000,000 USD in respect of the Special
Account for Parts C and D.3, of the Project (Special Account G),
to be withdrawn from the Loan Account and deposited into the
respective 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 in respect of Special Account A, an
amount equivalent to 300,000 USD each in respect of Special
Accounts B, C, D, E, and F, and an amount equivalent to 500,000
USD in respect of Special Account G, until:
(i) in respect of Special Account A, the aggregate amount of
withdrawals from the Loan Account allocated to Categories 1(a),
2(a), and 3(a) plus the total amount of all outstanding special
commitments entered into by the Bank pursuant to Section 5.02 of
the General Conditions for Parts A and D.1 of the Project shall be
equal to or exceed the equivalent of 5,000,000 USD;
(ii) in respect of each of the Special Accounts B, C, D, E, and
F, the aggregate amount of withdrawals from the Loan Account
allocated to Categories 1(b), 2(b), and 3(b) plus the total amount
of all outstanding special commitments entered into by the Bank
pursuant to Section 5.02 of the General Conditions for Parts B and
D.2 of the Project for each of the Participating Regions
respectively shall be equal to or exceed the equivalent of
1,000,000 USD; and
(iii) in respect of Special Account G, the aggregate amount of
withdrawals from the Loan Account allocated to Categories 1(c) and
3(c) plus the total amount of all outstanding special commitments
entered into by the Bank pursuant to Section 5.02 of the General
Conditions for Parts C and D.3 of the Project shall be equal to or
exceed the equivalent of 2,000,000 USD.
2. Payments out of the respective 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 respective Special Account has been duly opened, withdrawals
of the Authorized Allocation and subsequent withdrawals to
replenish the respective 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 deposit into
the respective 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 into
the respective Special Account such amount or amounts as the
Borrower shall have requested.
(b) (i) For replenishment of the respective Special Account,
the Borrower shall furnish to the Bank requests for deposits into
the respective 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
respective 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 respective 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 respective
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 any 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;
(b) if the Borrower shall have failed to furnish to the Bank,
within the period of time specified in Section 4.01 (b) (ii) of
this Agreement, any of the audit reports required to be furnished
to the Bank pursuant to said Section in respect of the audit of
the records and accounts for the Special Accounts;
(c) if, at any time, the Bank shall have notified the Borrower
of its intention to suspend in whole or in part the right of the
Borrower to make withdrawals from the Loan Account pursuant to the
provisions of Section 6.02 of the General Conditions; or
(d) once the total unwithdrawn amount of the Loan allocated to
the eligible Categories for the respective Special Account, minus
the total amount of all outstanding special commitments 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
respective 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 any 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 respective 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 any 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 any 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
Accounts.
(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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