Common use of Execution of the Project Clause in Contracts

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Except as the Association 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 Grant shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Recipient, through DEAT and DOT, declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall the Recipient, through DEAT and DOT, shall, as provided, inter alia, in the Tripartite Agreement referred to in paragraph (c) of this Section, cause FSRDC SAMSA, in respect of Parts A, D (1), and D (4) of the Project, and IOC, in respect of Parts B, C, D (2), D (3), and D (4) of the Project, to perform in accordance with the provisions of the Project Agreement all the its obligations of FSRDC therein set forth, shall forth take and cause to be taken all action, action including the provision of funds, facilities, services and other resources, resources necessary or appropriate to enable FSRDC SAMSA and IOC, respectively, to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make Without limitation upon the proceeds provisions of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between paragraph (a) of this Section and except as the Recipient and FSRDCthe Bank shall otherwise agree, under terms the Recipient shall, through DEAT and conditions which shall have been approved by DOT, cause the AssociationProject to be carried out in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall shall, through DOT, enter into an agreement under terms and conditions consistent with the provisions of this Agreement and acceptable to the Bank (the Tripartite Arrangement) with SAMSA and IOC. (d) The Recipient shall, through DOT, exercise its rights under the Subsidiary Grant Agreement Tripartite Arrangement in such manner as to protect the interests of the Recipient and the Association Bank and to accomplish the purposes of the Grant, and, except as the Association Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Tripartite Arrangement or any provision thereof. (a) Except as the Association 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 GEF Trust Fund Grant shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient Recipient, through DEAT and DOT, shall update have the Procurement Plan updated in accordance with guidelines acceptable to the AssociationBank, and furnish such update to the Association Bank not later than 12 months after the date of the preceding Procurement Plan, for the AssociationBank’s approval. Section 3.03. The Recipient and For the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and purposes of Section 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectivenesswithout limitation thereto, the Recipient shall have adopted shall, through DEAT and DOT: (a) prepare, on the ESMF, RPFbasis of guidelines acceptable to the Bank, and the IPDP satisfactory furnish to the Association. Section 3.05. Within Bank not later than six months from after the Closing Date of Effectiveness, or such later date as may be agreed for this purpose between the Recipient shall have appointed an accounting firm and the Bank, a plan designed to assist in ensure the fiduciary management sustainability of the Project Project; and (b) provide the Bank a reasonable opportunity to exchange views with qualifications and experience satisfactory to the Association;Recipient on said plan.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, without any limitation or restriction upon any of its other obligations under this the Loan Agreement, shall cause FSRDC to perform in accordance shall: (a) carry out the Project through RHM, with the provisions assistance of the Project Agreement all the obligations of FSRDC therein set forthBEA, shall with due diligence and efficiency and in conformity with appropriate administrative, financial and environmental practices; (b) take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, action necessary or appropriate to enable FSRDC BEA to perform such obligationsthe obligations in accordance with the Agency Agreement referred to in the provisions of this Agreement, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association.; and (c) The Recipient shall exercise its rights under cause to be provided, promptly as needed, the Subsidiary Grant Agreement in such manner as to protect funds, facilities, services and other resources required for the interests Project. Section 3.02. Without limitation upon the provisions of the Recipient Section 3.01 of this Agreement, and the Association and to accomplish the purposes of the Grant, and, except as the Association Borrower and the Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof.Borrower shall: (a) carry out the Project in accordance with the Project Operational Manual and the Implementation Program set forth in Schedule 5 to this Agreement; and (b) through MOF and RHM, enter into an agency agreement with BEA (the Agency Agreement), on such terms as shall be acceptable to the Bank, which shall include terms specifying the responsibilities of BEA in respect of procurement, financial management and disbursement aspects of Project implementation. Section 3.03. Except as the Association Borrower and the Bank shall otherwise agree, procurement of the goods, works and works, technical services, consultants’ services and training required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) . The Recipient Borrower, in accordance with the established procedure, shall update the Procurement Plan in accordance with guidelines acceptable to the AssociationBank, and furnish such update to the Association Bank not later than 12 twelve (12) months after the date of the preceding Procurement Plan, for the AssociationBank’s approval. Section 3.033.04. The Recipient and For the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, purposes of Section 9.07 and 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Bank, use of goods and servicesfurnish 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, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant a plan designed to Section 2.03 ensure the continued achievement of the Project Agreementproject’s objectives; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC Himachal Pradesh to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC Himachal Pradesh as therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC Himachal Pradesh to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC under a subsidiary grant agreement Himachal Pradesh in accordance with the Borrower’s standard arrangements for developmental assistance to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the AssociationStates of India. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approvalManual. Section 3.03. The Recipient Borrower shall: (i) participate in the exchange of views with the Association and Himachal Pradesh on the plan for the future operation of the Project to be provided by Himachal Pradesh pursuant to Section 2.03(b) of the Project Agreement; and (ii) participate with the Association and Himachal Pradesh in the Mid- term Review. Section 3.04. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project shall be carried out by FSRDC Himachal Pradesh pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from (a) The Borrower shall, at the Date request of Effectivenessthe Association, exchange views with the Association with regard to the progress of the Project, the Recipient shall have adopted the ESMF, RPFperformance of obligations under this Agreement, and the IPDP satisfactory other matters relating to the Associationpurposes of the Credit. Section 3.05. Within six months from (b) The Borrower shall promptly inform the Date Association, of Effectivenessany condition which interferes or threatens to interfere with the progress of the Project, the Recipient shall have appointed an accounting firm to assist in the fiduciary management accomplishment of the Project with qualifications and experience satisfactory to purposes of the Association;Credit, or the performance by the Borrower of its obligations under this Agreement.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any shall carry out the Project with the assistance of the Privatization Center with due diligence and efficiency and in conformity with appropriate administrative and financial practices and shall provide, promptly as needed, the funds, facilities, services and other resources required for this purpose. Section 3.02. Without limitation or restriction upon any of its other obligations under this the Loan Agreement, shall the Borrower shall: (a) cause FSRDC the Privatization Center to perform in accordance with the provisions of Project Agreement, the Subsidiary Project Agreement Management Arrangements and the Statutes, all the obligations and activities of FSRDC the Privatization Center therein set forth, shall forth which may affect the Project; and take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC the Privatization Center to perform such obligations, ; and shall not take or permit to be taken any action which would prevent or interfere with such performance.; and (b) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement Project Management Arrangements in such a manner as to protect the interests of the Recipient Borrower and the Association Bank, to comply with the provisions of this Agreement, and to accomplish the purposes of the GrantLoan, and, except as the Association Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Project Management Arrangements or any provision thereof. Section 3.03. For purposes of implementing the Project, the Borrower shall enter into subsidiary project management arrangements, satisfactory to the Bank, with the Privatization Center, whereby the Privatization Center shall be appointed executing agent of the Borrower for carrying out such activities under the Project and obligations of the Borrower as shall have been specified therein and in respect of which the Borrower shall have made all necessary provision, including, inter alia: (a) Except as the Association shall otherwise agree, procurement carrying out by the Privatization Center of Parts A and B of the goods, works Project with due diligence and efficiency and in conformity with appropriate practices and in accordance with the GKI-FPF Operational Coordination Agreement and the applicable provisions of the Schedule to the Project Agreement; (b) the carrying out by the Privatization Center of the procurement and related accounting for the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan; (c) the utilization of funds by the Privatization Center, including the proceeds of the Loan, required for the support of the operations of the Privatization Center undertaken in accordance with subparagraphs (a) and (b) of this Section, and the manner of effecting compliance with the obligations of the Borrower under Section 4.01 of this Agreement in respect of the expenditures to be made with such funds; and (d) the establishment and continuous operation by the Privatization Center of all facilities necessary for the appropriate administration of Project activities and related management functions undertaken by the Privatization Center in accordance with subparagraphs (a), (b) and (c) of this Section. Section 3.04. Without limitation upon the provisions of Section 3.03 of this Agreement, and except as the Borrower and the Bank shall otherwise agree, the Borrower shall carry out, or cause to be carried out, the Project in accordance with the Implementation Programs set forth in Schedule 5 to this Agreement and the Schedule to the Project Agreement. Section 3.05. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for Part C of the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.033.06. The Recipient Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.07, 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;and

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall: (i) carry out Parts A, B, C, D, F, H, I and J of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial and engineering practices and in accordance with such technical norms as shall be acceptable to the Association; (ii) cause FSRDC SNCS to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC SNCS therein set forth, and shall not take or permit to be taken any action which would prevent or interfere with such performance; (iii) cause PAD to perform in accordance with the provisions of the Project Agreement all the obligations of PAD therein set forth, and shall not take or permit to be taken any action which would prevent or interfere with such performance; (iv) cause ASECNA SENEGAL and AIR SENEGAL to carry out Parts C, D.1 and D.2, respectively, in accordance with the ASECNA Implementation Agreement and the AIR SENEGAL Implementation Agreement, respectively; and (v) shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceresources required for the Project. (b) The Recipient Borrower shall make available to SNCS part of the proceeds of the Grant available to FSRDC Credit for Part E of the Project, under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCSNCS, under terms and conditions which shall have been approved by the AssociationAssociation and which shall include that: (i) the proceeds of the Credit withdrawn from Categories 1 (b), 2 (a) and 3 (b) of the table in paragraph 1 of Schedule 1 be onlent with a repayment period of 20 years including a grace period of 4 years and an interest rate of 7.25% per annum; and (ii) the proceeds withdrawn from Category 4(a) be made available as a grant. (c) The Recipient Borrower shall make available to PAD part of the proceeds of the Credit for Part G of the Project under a subsidiary loan agreement to be entered into between the Borrower and PAD, under terms and conditions which shall have been approved by the Association and which shall include that: (i) the proceeds of the Credit withdrawn from Categories 1 (a) and 3 (a) of the table in paragraph 1 of Schedule 1 be onlent with a repayment period of 20 years including a grace period of 4 years and an interest rate of 7.25% per annum. (d) For the purpose of carrying out Part D.1 and Part D.2 (b) of the Project, the Borrower shall enter in an agreement with ASECNA SENEGAL under terms and conditions, which shall have been approved by the Association. (e) For the purpose of carrying out Part D.2 (a) of the Project, the Borrower shall enter in an agreement with AIR SENEGAL under terms and conditions, which shall have been approved by the Association. (f) The Borrower shall exercise its rights under the SNCS Subsidiary Grant Loan Agreement, the PAD Subsidiary Loan Agreement, the ASECNA Implementation Agreement and the AIR SENEGAL Implementation Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the SNCS Subsidiary Grant Loan Agreement, the PAD Subsidiary Loan Agreement, the ASECNA Implementation Agreement and the AIR SENEGAL Implementation Agreement or any provision thereof. (g) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts A, B, C, D, F, H, I and J of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Association and furnish to Association 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 Association, a plan for the future operation of the Project; and (b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.04. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively): (a) in respect of Part E of the Project shall be carried out by FSRDC SNCS pursuant to Section 2.03 of the SNCS Project Agreement; and (b) in respect of Part G of the Project shall be carried out by PAD pursuant to Section 2.03 of the PAD Project Agreement. Section 3.043.05. Within six months from Without limitation on the Date provisions of EffectivenessSection 3.01, the Recipient Borrower shall have adopted for the ESMFpurpose of Part B of the Project: (i) open and maintain until the completion of the Project, RPF, an account (the Project Account) in a commercial bank acceptable to the Association and the IPDP satisfactory on terms and conditions acceptable to the Association. Section 3.05. Within six months from ; (ii) deposit into the Date Project Account an initial amount equivalent to FCFA 3 billion (the Initial Deposit); (iii) thereafter annually deposit into the Project Account an amount equivalent to the Initial Deposit or any other amount required for further implementation of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management Part B of the Project with qualifications as agreed between the Borrower and experience satisfactory to the Association;; and (iv) ensure that the amounts deposited into the Project Account shall be used exclusively for the purposes of defraying the cost of expenditures incurred for the execution of Part B of the Project, and not otherwise financed out of the proceeds of the Credit.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC the North-East Provincial Council to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC the North-East Provincial Council therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC the North-East Provincial Council to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make Without limitation upon the proceeds provisions of paragraph (a) of this Section and except as the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association shall otherwise agree, the Borrower shall cause the North-East Provincial Council to: (i) carry out its obligations in accordance with the provisions of this Agreement and to accomplish the purposes of Project Agreement; and (ii) implement the GrantProject in accordance with the Operational Manual, andthe Financial Manual, the Environmental Management Framework, and the Social Safeguards Framework, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate amend or waive the Subsidiary Grant Agreement or any provision thereofthereof if, in the opinion of the Association, such amendment or waiver may materially and adversely affect the implementation of the Project. (a) The Borrower shall make the proceeds of the Credit available to the North-East Provincial Council in accordance with terms and conditions acceptable to the Association. (b) The Borrower shall take adequate and timely measures to ensure that sufficient funds from its own resources are made available to the North-East Provincial Council to carry out the Project. (a) Except as the Association shall otherwise agree, procurement of the goods, works and works, consultants’ services services, training, and Sub-grants required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said such provisions may be further elaborated in the Procurement Plan. (b) The Recipient Borrower shall cause the North-East Provincial Council to update the Procurement Plan in accordance with guidelines the terms of reference acceptable to the Association, and furnish such update to the Association not later than 12 twelve (12) months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.033.04. The Recipient and (a) Without prejudice to the Association hereby agree that the Borrower’s obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 under Section9.04 of the General Conditions (relating to insuranceensure that all goods, use of goods and works, services, plans training, and schedulesSub-grants financed out of the Credit proceeds are used exclusively for the Project, records and reportsthe Borrower shall cause the North-East Provincial Council to ensure that, maintenance and land acquisitionunder no circumstances, respectively) any proceeds of the Credit shall be carried out withdrawn, utilized, or made available for the payment of any taxes, levies, fees, or any other surcharges collected or levied by FSRDC pursuant to Section 2.03 of any group, cadre, entity or other non-governmental organization on goods, works, services, training, or Sub-grants or on the Project Agreementimportation, manufacture, procurement or supply thereof. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end: (i) shall carry out Parts B, C and D of the Project with due diligence and efficiency, and in conformity with appropriate administrative, financial and environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for such Parts of the Project; and (ii) without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, the Borrower shall cause JIRAMA to perform all its obligations set forth in the Project Agreement, shall cause FSRDC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC JIRAMA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) Without limitation upon the provisions of paragraph (a) of this Section, and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts B, C and D of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall make relend the portion of the proceeds of the Grant available Credit allocated to FSRDC Part A of the Project to JIRAMA under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCJIRAMA, under terms and conditions which shall have been approved by the Association, which shall include: (i) an adjustable interest rate equal to the London Interbank Rate (LIBOR) plus nine-tenths of one percentage point per annum, (ii) a repayment period of twenty five years, including a grace period of five years, and (iii) a requirement that the foreign exchange risk involved in the transaction shall be borne by XXXXXX. (cd) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for Parts B, C and D of the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;and

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, : (i) shall cause FSRDC to perform in accordance with the provisions carry out Part A of the Project Agreement all through MSPP with due diligence and efficiency and in conformity with appropriate administrative, technical and financial practices, and shall provide, promptly as needed, the obligations funds, facilities, services and other resources required for such Part of FSRDC therein set forththe Project; and (ii) shall cause FADC to carry out Part B of the Project with due diligence and efficiency and in conformity with appropriate administrative, technical and financial practices, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC FADC to perform such obligationscarry out the Project, and shall not take or permit to be taken any action which would prevent or interfere with such performancethe carrying out of the Project by FADC. (b) The Recipient shall make Without limitation upon the proceeds provisions of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient paragraph (a) of this Section, and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Borrower and the Association shall otherwise agree, the Recipient Borrower shall not assigncarry out Part A of the Project and shall cause FADC to carry out Part B of the Project, amend, abrogate or waive all in accordance with the Subsidiary Grant Agreement or any provision thereofImplementation Program set forth in Schedule 4 to this Agreement. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Association and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, . 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part B of the Project shall be carried out by FSRDC pursuant FADC. (a) For purposes of Part B of the Project, the Borrower shall conclude a financing agreement with FADC (hereinafter referred to Section 2.03 as the Financing Agreement), whereby it shall agree with FADC to transfer an amount not exceeding the amount of the Credit allocated to Part B of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient to FADC on a non-reimbursable basis and on such other terms and conditions as shall have adopted the ESMF, RPF, and the IPDP satisfactory be acceptable to the Association; including, but without being limited to, provisions to the following effect: (i) the amount so transferred to FADC shall be used exclusively to finance sub-projects and the operating costs of FADC; (ii) no sub-project shall be considered for approval under the Project except in accordance with criteria, and terms and conditions, set forth in a Procedures Manual adopted by FADC and approved by the Association; (iii) goods and services required under the Financing Agreement, or pursuant thereto, shall be procured in accordance with procedures acceptable to the Association, and set forth in the Procedures Manual; (iv) every sub-project involving a total investment cost in excess of the equivalent of 350,000 French Francs shall be submitted to the Association for prior review; (v) except with the prior approval of the Association, no sub-project shall involve a total investment cost in excess of the equivalent of 450,000 French Francs; (vi) in respect of every sub-project to be financed under the Financing Agreement, or pursuant thereto, the contribution of the beneficiary thereof to the cost of the sub-project shall be (A) not less than 20 percent, or (B) in exceptional cases, in relation to very poor and needy beneficiaries (as defined in the Procedures Manual), not less than 15 percent; and (vii) FADC undertakes to carry out all other Project-related obligations of the Borrower and FADC under this Agreement, or arising thereunder, in respect of Part B of the Project. (b) The Borrower shall exercise its rights under the Financing Agreement and the Procedures Manual, in such manner as to protect the interests of the Borrower and the Association, and to accomplish the purposes of the Credit; and, except as the Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the Financing Agreement or the Procedures Manual, or any provision thereof. Section 3.05. Within six months from The Borrower shall make adequate allocations in its annual budget to meet the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management global needs of the Project with qualifications health sector, including maintenance of the fiscal year 1992 level of expenditure on health (in 1992 prices), of which not less than 20 percent shall be allocated to non-wage expenditures. Section 3.06. The Borrower shall, not later than December 31, 1994, issue a public expenditure program covering fiscal years 1995-1997, for review by the Borrower and experience satisfactory the Association at every subsequent annual review and the mid-term review referred to the Association;in paragraph 1 (a) of Schedule 4 to this Agreement.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC AEDE to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC AEDE therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC AEDE to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC AEDE on a non-reimbursable basis under a subsidiary grant an agreement (hereinafter referred as the Convention) to be entered into between the Recipient Borrower and FSRDCAEDE, under terms and conditions which shall have been approved by the Association; including, but without being limited to, the provisions set forth in Part A of Schedule 3 to this Agreement. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement Convention in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Convention or any provision thereof. (d) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall assist AEDE in the carrying out of the Project in accordance with the Implementation Program set forth in Schedule 3 to this Agreement. Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall take steps, or cause AEDE to take steps, to: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation of the preceding Procurement Plan, for Project; and (b) afford the Association’s approvalAssociation a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.033.04. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC AEDE pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without shall carry out Parts A through D of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and transporta- tion practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, the Borrower shall cause FSRDC GRC to perform in accordance with the provisions provi- sions of the Project Agreement all the obligations of FSRDC GRC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC GRC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. The funds to be provided to GRC pursuant to this paragraph shall include: (i) funds cover-ing GRC’s share of required counterpart funds for capital expenditures for each quarter of the year to be paid by the Borrower to GRC before the end of each quarter; (ii) operational subsidies; (iii) a subvention for freight and passenger traffic where, and to the extent, GRC cannot charge, due to public policy decisions, adequate tariffs based on full rail costs; and (iv) an annual amount of not less than $1,500,000 equivalent in 1991 and 1992 for the purchase of spare parts, such amounts to be made available quarterly in advance, subject to GRC providing proof of spending and/or commitment in the following six months. (bc) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts A through D of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (d) The Recipient Borrower shall make relend out of the proceeds of the Grant available Credit an amount not exceeding SDR 10,100,000 to FSRDC GRC under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCGRC, under terms and conditions which shall have been approved by the AssociationAssociation which shall include interest at the rate of 8% per annum, repayment of over 20 years, including seven years of grace, and the foreign exchange risk to be borne by GRC. (ce) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part E of the Project shall be carried out by FSRDC GRC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months The Borrower shall: (a) maintain the existing Road Fund at at least its 1989 funding level in real terms; (b) allocate a minimum of $36 million equivalent in 1991, $38 million equivalent in 1992 and $39 million equivalent in 1993 from the Date Road Fund and the capital budget for the periodic road maintenance and minor works program of EffectivenessMRH; (c) allocate a minimum of $6,500,000 annually from the recurrent budget for the period of 1991-1993 for routine road main- tenance materials and plant operating costs excluding wages; (d) promptly pay into the accounts established by GHA and DFR for road maintenance works, on the basis of quarterly estimates of road maintenance needs: (i) accruals to the Road Fund, monthly in advance; and (ii) amounts allocated in the budget for road mainte- xxxxx, as and when required; and (e) ensure that the proceeds of the Road Fund shall be utilized exclusively for the payment to contractors and the Mobile Maintenance Units of GHA for road maintenance. Section 3.05. The Borrower shall: (a) furnish to the Association, not later than June 30, 1992, the Recipient findings of the study on the adequacy of road user charges; and (b) thereafter increase said charges in accordance with a timetable acceptable to the Association so that full cost recovery from road users for road maintenance will be achieved by 1994. Section 3.06. The Borrower shall have adopted the ESMF, RPF, maintain its Transport Policy Review Committee with functions and the IPDP satisfactory terms of reference acceptable to the Association. Section 3.053.07. Within six months from The Borrower shall establish, not later than June 30, 1991, a coordinating committee for improving the Date organization and efficiency of Effectivenesspublic transport facilities and operations in urban centers to be comprised of representatives of MTC, DUR, MRH, GRC, the Recipient shall have appointed an accounting firm Accra Metropolitan Authority and private vehicle owner associations. Section 3.08. The Borrower shall: (a) continue to assist hold with the Association annual joint reviews of its three-year public investment program and annual public expenditure programs in the fiduciary management of transport sector; and (b) consult with the Project Association before undertaking any new investment projects in the transport sector costing more than $5 million equivalent and not included in the public investment program. Section 3.09. The Borrower shall continue to enter into annual performance agreements with qualifications and experience satisfactory GRC incorporating performance targets acceptable to the Association;.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC OPTB to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC OPTB therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC OPTB to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend the proceeds of the Grant available Credit to FSRDC OPTB under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDC, OPTB under terms and conditions which shall have been approved by the AssociationAssociation which shall include: (i) repayments terms over a period of twenty years, including a five-year grace period on the principal amount; (ii) interest at an annual rate of 7.5% and capitalization of interest; (iii) payment, by OPTB during said grace period, of amounts equal to the commitment charges and service charges to be paid by the Borrower to the Association pursuant to Sections 2.04 and 2.05 of this Agreement, such amounts to be paid at the dates specified in Section 2.06 of this Agreement; the total amount of such payments by OPTB will be deducted from the amount of capitalized interest to be paid by OPTB; and (iv) the foreign exchange risk being borne by OPTB. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the Grant, Credit and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC OPTB pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC the Federation to perform carry out the Project through its Ministry of Finance, and such other ministries and agencies as agreed with the Administrator, with due diligence and efficiency and in accordance with the provisions Implementation Program set forth in Schedule 4 to this Agreement, as such Implementation Program shall be modified from time to time by the agreement of the Project Agreement all Recipient and the obligations of FSRDC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceAdministrator. (ba) The For purposes of the carrying out of the Project, the Recipient shall make provide the proceeds of the Grant available to FSRDC the Federation under a subsidiary grant agreement Subsidiary Grant Agreement to be entered into between the Recipient Borrower and FSRDC, the Federation under terms and conditions which shall have been approved by the AssociationAdministrator, which shall include those described in the Implementation Program set forth in Schedule 4 to this Agreement, as such Implementation Program shall be modified from time to time by the agreement of the Recipient and the Administrator. (cb) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association Administrator and to accomplish the purposes of the Grant, and, and except as at the Association Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.03. Except as the Association Administrator 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 Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) The Recipient shall cause the Federation to maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project Agreement, as said provisions may be further elaborated in of the Procurement Plandepartments or agencies of the Federation responsible for carrying out the Project or any part thereof. (b) The Recipient shall update cause the Procurement Plan Federation to: (i) have the records and accounts referred to in paragraph (a) of this Section and those for the Special Account for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Association, and Administrator; (ii) furnish such update to the Association Administrator as soon as available, but in any case not later than 12 six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Association’s approvalAdministrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating c) For all expenditures with respect to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months which withdrawals from the Date Grant Account were made on the basis of Effectivenessstatements of expenditure, the Recipient shall have adopted cause the ESMFFederation to: (i) maintain or cause to be maintained, RPFin accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the IPDP satisfactory to Administrator has received the Association. Section 3.05. Within six months audit report for the fiscal year in which the last withdrawal from the Date of EffectivenessGrant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Recipient shall have appointed an accounting firm Administrator’s representatives to assist examine such records; and (iv) ensure that such records and accounts are included in the fiduciary management annual audit referred to in paragraph (b) of this Section and that the Project 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 qualifications the procedures and experience satisfactory internal controls involved in their preparation, can be relied upon to support the Association;related withdrawals.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any shall cause the Local Entities to carry out Parts A and B of the Project and shall carry out Part C of the Project through MOH, all with due diligence and efficiency and in conformity with appropriate economic, financial, administrative, technical and public health practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without limitation or restriction upon any the provisions of its other obligations under paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Part C of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (a) The Borrower shall make available to each Local Entity its Respective Proceeds, shall under arrangements to be made between the Borrower and said Local Entity, in accordance with the provisions set forth in Schedule 6 to this Agreement. (b) The Borrower shall: (i) cause FSRDC each Local Entity to perform perform, in accordance with the provisions of the Project Agreement Implementation Arrangements to which it is a party, all of the obligations of FSRDC said Local Entity therein set forth, shall ; (ii) take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC said Local Entity to perform such obligations, and shall ; (iii) not take or permit to be taken any action which would prevent or interfere with such performance.; and (biv) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under each of the Subsidiary Grant Agreement Project Implementation Arrangements in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive any of the Subsidiary Grant Agreement Project Implementation Arrangements or any provision thereof. (a) Section 3.03. Except as the Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.04. For the purpose of Section 9.07 of the General Conditions, and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan (including the long-term strategies prepared by the Local Entities pursuant to Part F.2 of Schedule 6 to this Agreement) for the future operation of the preceding Procurement Plan, for the Association’s approval.Project; and Section 3.03. The Recipient and (b) afford the Association hereby agree that a reasonable opportunity to exchange views with the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project AgreementBorrower on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end: (i) shall carry out Part A of the Project through MEM with due diligence and efficiency, in conformity with appropriate administrative, engineering and financial practices and with due regard to ecological and environmental factors and shall provide, promptly as needed, the funds, facilities, services and other resources required for such Part of the Project; and (ii) without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, the Borrower shall cause SOLIMA to perform all its obligations set forth in the Project Agreement, shall cause FSRDC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC SOLIMA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Without limitation upon the provisions of paragraph (a) of this Section, and except as the Borrower and the Association shall make otherwise agree, the proceeds Borrower shall carry out Part A of the Grant available Project in accordance with the Implementation Program set forth in Schedule 4 to FSRDC this Agreement. (i) The Borrower shall, under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCSOLIMA, under terms and conditions which shall have been approved by the Association: (A) relend to SOLIMA a portion of the proceeds of the Credit allocated to Categories (2) (b), (3) and (4) of the table set forth in paragraph 1 of Schedule 1 to this Agree- ment, at an interest rate of eight percent (8%) per annum, with the principal to be repaid in twenty years including a five-year grace period, and with SOLIMA bearing the cost of fluctuations in the currencies so relent to it; and (B) make available to SOLIMA, on a grant basis, the portion of the proceeds of the Credit allocated to Category 2 (c) of said table. (cii) [Deleted] (d) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts C, D and E of the Project shall be carried out by FSRDC SOLIMA pursuant to Section 2.03 of the Project Agreement. . Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;[Deleted]

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agree- ment and, to this end: (i) shall carry out Parts A and B of the Project with due diligence and efficiency and in conformity with appropriate administrative and financial practices and shall provide, promptly as needed, the funds, facilities, services and other re- sources required for such Parts of the Project; and (ii) without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, the Borrower shall cause HFC to perform all its obligations set forth in the Project Agreement, shall cause FSRDC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC HFC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) Without limitation upon the provisions of paragraph (a) of this Section, and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts A and B of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall make part of the proceeds of the Grant Credit available to FSRDC HFC under a subsidiary grant financing agreement to be entered into between the Recipient Borrower and FSRDCHFC, under terms and conditions which shall have been approved by the AssociationAssociation which shall include the terms and conditions set forth in Schedule 6 to this Agreement. (cd) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Financing Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Financing Agreement or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for Parts A and B of the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part C of the Project shall be carried out by FSRDC HFC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient The Borrower shall have adopted the ESMF, RPF, prepare and the IPDP satisfactory furnish to the AssociationAssociation for its review and comments, not later than June 30, 1992, proposals for strengthening the foreclosure procedures with respect to defaults under housing loans secured by mortgages. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC DLC-BENIN to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC DLC-BENIN therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC DLC-BENIN to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make the proceeds of the Grant available to FSRDC Borrower shall, under a subsidiary grant agreement to be entered into between the Recipient Borrower and FSRDC, under DLC-BENIN (the Subsidiary Agreement) and on terms and conditions which shall have been approved by the Association, transfer the proceeds of the Credit to DLC-BENIN as a grant. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, Association and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation of the preceding Procurement Plan, for Project; and (b) afford the Association’s approvalAssociation a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.033.04. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;and

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC Bihar to perform in accordance with the provisions of carry out the Project Agreement all the obligations of FSRDC therein set forthwith due diligence and efficiency and in conformity with appropriate administrative, financial and educational practices, and shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC Bihar to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available on a grant basis to FSRDC BSPP under a subsidiary grant agreement memorandum of understanding to be entered into between the Recipient Borrower and FSRDC, under terms and conditions which shall have been approved by BSPP satisfactory to the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as Without prejudice to protect the interests any other provision of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association shall otherwise agreethis Agreement, the Recipient Borrower shall not assignensure that BSPP receives adequate resources on a six monthly basis, amendin a timely manner, abrogate or waive the Subsidiary Grant Agreement or any provision thereoffor anticipated expenditures under its approved annual work plans. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC Bihar and BSPP pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of EffectivenessThe Borrower shall carry out, or cause to be carried out in Bihar, the Recipient DPEP in accordance with the DPEP Guidelines and shall have adopted the ESMF, RPF, and the IPDP satisfactory not make any change to the DPEP or the DPEP Guidelines, including in respect of its financial and administrative procedures, which would, in the reasonable opinion of the Association, materially and adversely affect the ability of the Borrower or Bihar or BSPP to carry out the Project. Section 3.05. Within six months from the Date of EffectivenessThe Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project accordance with qualifications and experience indicators satisfactory to the Association, the carrying out of the Project and achievement of the objectives thereof; (b) carry out with the Association, Bihar and other external financiers of the Program, including UNICEF, a joint in-depth review of the Project on two occasions by December 31, 1999 and December 31, 2001; such review to include (i) a status report, in both reviews, of the positioning of teachers in the Project Districts based on Bihar’s norms, and (ii) a status report, in the latter review, of the proposed strategies to sustain the capacities and services developed under the Project, and the modalities and framework of cooperation between the Borrower’s Integrated Child Development Service and ECE under the Project; and (c) duly take into account the comments offered by the Association during each such joint review in the course of further implementation of the Project.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC FETF through the Federation and RETF through Republika Srpska to perform in accordance with the provisions respectively carry out Part A and Part B of the Project Agreement all the obligations of FSRDC therein set forthwith due diligence and efficiency and in conformity with appropriate administrative, economic, financial, managerial and environmental practices, shall take and or cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC FETF and RETF to perform such obligationscarry out their respective part of the Project, and shall not take or permit to be taken any action which would prevent or interfere with such performanceFETF and RETF carrying out their respective part of the Project. (ba) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC under a FETF and RETF, through the Federation and Republika Srpska respectively, pursuant to separate tripartite subsidiary grant agreement financing and project implementation agreements to be entered into between among the Recipient Borrower, the Federation and FSRDCFETF and the Borrower, Republika Srpska and RETF, under terms and conditions which shall have been approved by the AssociationAssociation and which shall, inter alia, include the terms and conditions specified in Schedule 5 to this Agreement. (cb) The Recipient Borrower shall exercise its rights under the FETF Subsidiary Grant Financing and Project Implementation Agreement and RETF Subsidiary Financing and Project Implementation Agreement in such a manner so as to protect the interests of the Recipient Borrower and the Association Association, and to accomplish the purposes of the GrantCredit and the objectives of FETF and RETF, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the FETF Subsidiary Grant Financing and Project Implementation Agreement or RETF Subsidiary Financing and Project Implementation Agreement, or any provision thereof. (a) Section 3.03. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project this Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC SFD to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC SFD therein set forth, shall take and cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC SFD to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC SFD under a subsidiary grant agreement Subsidiary Grant Agreement to be entered into between the Recipient Borrower and FSRDCSFD, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC SFD pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date The Borrower shall: (a) take all measures necessary on its part to enable SFD to carry out SFD’s obligations referred to under Section 2.03 (b) of, and paragraph B of EffectivenessSchedule 2 to, the Recipient Project Agreement; and (b) except as the Association shall have adopted otherwise agree, undertake not to amend the ESMF, RPF, and Operations Manual in any manner so as to reduce the IPDP satisfactory to the Associationoperational autonomy of SFD. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, shall: (i) carry out, with the assistance of AGETIP, Part B of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial and management practices and in accordance with the Implementation Program set forth in Schedule 3 to this Agreement, and shall provide, promptly as needed, the funds, facilities, services and other resources required for such Part B of the Project; (ii) cause FSRDC AGETIP to carry out Part A of the Project, with due diligence and efficiency and in conformity with appropriate administrative, financial and management practices, and in accordance with the provisions of the Convention; (iii) cause AGETIP to perform in accordance with the provisions of the Project Agreement all the obligations obli- gations of FSRDC AGETIP therein set forth, shall ; (iv) take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC AGETIP to perform such obligations, and shall not take ; and (v) refrain from taking or permit permitting to be taken any action which would prevent or interfere with such performanceperformance of AGETIP. (b) The Recipient Borrower shall make the proceeds of the Grant Credit, allocated to Part A of the Project, available to FSRDC AGETIP on a non- reimbursable basis and under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under such terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement Convention in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the Grant, Credit and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Convention or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for Part B of the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation of Part B of the preceding Procurement Plan, for the Association’s approval.Project; and Section 3.03. The Recipient and (b) afford the Association hereby agree that a reasonable opportunity to exchange views with the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project AgreementBorrower on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Tamil Nadu declares its commitment to the objectives of the Project as set forth in Schedule 2 to this the Loan Agreement, and, to this end, without shall carry out Part A of the Project through CMA with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and technical practices and environmental and social standards, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any of its other obligations under this Agreement, Tamil Nadu shall cause FSRDC cause: (i) TNUDF to perform in accordance with the provisions of the TNUDF Project Agreement all the obligations of FSRDC therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC TNUDF to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance; and (ii) CMDA to perform in accordance with the CMDA Project Agreement all the obligations therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable CMDA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under Without limitation upon the Subsidiary Grant Agreement in such manner as to protect the interests provisions of the Recipient paragraph (a) of this Section and the Association and to accomplish the purposes of the Grant, and, except as the Association Bank and Tamil Nadu shall otherwise agree, Tamil Nadu shall carry out Part A of the Recipient shall not assign, amend, abrogate or waive Project in accordance with the Subsidiary Grant Agreement or any provision thereofImplementation Program set forth in the Schedule to this Agreement. Section 2.02. (aa)(i) Except as the Association shall otherwise agree, procurement In respect of Part B.1(a) of the goodsProject, works and consultants’ services required for the Project and to be financed Tamil Nadu shall, out of the proceeds of the Grant shall be governed Loan made available to it by the provisions of Schedule 1 Borrower, onlend a portion thereof to the Project Agreement, as said provisions may TNUDF under a Subsidiary Loan Agreement to be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, entered into between Tamil Nadu and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient TNUDF under terms and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP conditions satisfactory to the Association.Bank, including: Section 3.05(A) that the Subsidiary Loan shall be denominated in Indian Rupees; (B) that TNUDF shall pay interest on the principal amount so onlent and withdrawn on a specific date (the Reference Date) and outstanding from time to time at a fixed rate set equal to the average yield of the Government of India 10-year securities issuances in the primary market (the Index) in the six (6) months preceding the Reference Date; plus a margin that is mutually acceptable to Tamil Nadu and TNUDF, with said margin not to exceed 100 basis points and to be determined for each drawdown from Tamil Nadu. Within In the event that there are no Government of India 10-year securities issuances in the primary market in the six (6) months from preceding the Date of EffectivenessReference Date, the Recipient average yield of the Government of India 10-year securities issuances in the primary market in the twelve (12) month period immediately preceding the Reference Date shall serve as the Index. TNUDF shall repay the principal amount so re-lent over a period of 20 years including therein a grace period of five (5) years; and (C) that TNUDF shall have appointed an accounting firm to assist a prepayment option in the fiduciary management event that the interest rate on an outstanding loan from Tamil Nadu to TNUDF exceeds the Index referred to subparagraph (B) of this Section 2.02(a)(i) by at least 150 basis points, or the Project with qualifications and experience current market rates, satisfactory to the Association;Bank, for lending to ULBs by financial intermediaries.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC IREDA to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC IREDA therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC IREDA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make re-lend the proceeds of the Grant available Credit to FSRDC IREDA under a subsidiary grant agreement Subsidiary Loan Agreement to be entered into between the Recipient Borrower and FSRDCIREDA, under terms and conditions which shall have been approved as prescribed by the AssociationBorrower from time to time for IREDA. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (ad) The Borrower shall: (i) no later than October 31, 2001 provide to the Association a time-based action plan for the future development of IREDA, agreed to with the Association, taking into account the recommendations referred to the Borrower by IREDA pursuant to paragraph 3 (b) of Schedule 2 to the Project Agreement; and (ii) thereafter implement such action plan in accordance with the provisions of such plan. Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC IREDA pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC the Company to carry out the Project and to perform in accordance with the provisions of the Project Agreement all the other obligations of FSRDC the Company therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC the Company to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend the proceeds of the Grant available Credit to FSRDC the Company under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDC, under the Company setting forth terms and conditions which shall have been approved by the AssociationAssociation and which shall include a rate of interest of 7.75%, a term of 20 years including a five years’ grace period and the assumption by the Company of the exchange risk. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the Grant, Credit and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC the Company pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from The Borrower shall take all such action as shall be necessary on its part to ensure that the Date provisions of Effectiveness, its Contrat-Programme with the Recipient shall have adopted the ESMF, RPF, Company be respected and the IPDP satisfactory to that no change be made thereto without prior consultation with the Association. Section 3.05. Within six months from The Borrower shall take all necessary measures required on its part to allow the Date of Effectiveness, the Recipient shall have appointed an Company to revaluate its assets and restructure its balance sheet in accordance with appropriate accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory principles acceptable to the Association;.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, shall provide promptly as needed, the funds, facilities, services and other resources required for the Project; and shall not take or permit to be taken any action which would prevent or interfere with such performance, and, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC ANE to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC ANE therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC ANE to perform such obligations, : (i) carry out the Project with due diligence and efficiency and in conformity with appropriate financial, technical, administrative, engineering and environmental practices; (ii) to perform in accordance with the provisions of the Project Agreement all the obligations of ANE therein set forth; and (iii) to provide promptly as needed, the funds, facilities, services and other resources required for the Project; and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC ANE under a subsidiary grant agreement Subsidiary Agreement to be entered into between the Recipient Borrower and FSRDCANE, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the Grant, Project and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Ssubsidiary Aagreement or any provision thereof. (d) Without limitation upon the provisions of paragraph (a) of this Section and, except as the Borrower and the Association shall otherwise agree, the Borrower shall cause assis ANE to carry in carrying out the Project in accordance with the Implementation Program set forth in Schedule 1 to the Project Agreement and the PIP. Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultantsConsultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 12 to the Project Agreement. Section 3.03. Without limitation to its obligations under Section 3.01 of this Agreement, as said provisions may the Borrower shall, for the purposes of making available its counterpart contribution for the financing of the Project: (a) open and thereafter maintain, until the completion of the Project, an account (the Meticais Project Account) in Meticais and an account (the Dollar Project Account) in Dollars, in one or more commercial banks, on terms and conditions satisfactory to the Association, to be further elaborated in used for the Procurement Plan.purposes of the Project; (b) The Recipient promptly thereafter make: (i) an an Initial Deposit (i) in Meticais of an amount equivalent to $400,000 (the Meticais Initial Deposit) into the Meticais Project Account; and (ii) an Initial Deposit (ii) in Dollars of an amount of $600,000 (the Dollar Initial Deposit) into the Dollar Project Account, both to finance the Borrower’s contribution to the Project; (c) thereafter deposit into both the Meticais and Dollar Project Accounts, respectively, by the first day of each quarter each year, such amounts as shall update be required and agreed upon with the Procurement Plan Association to timely replenish both Project Accounts back to the amount of the Initial Deposits referred to in accordance with paragraph (b) above; and (d) use the funds in both Project Accounts exclusively to finance expenditures under the Project. Section 3.04. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation of the preceding Procurement Plan, for sustainability of the Association’s approvalProject; and (b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.033.05. The Recipient Borrower shall ensure that, at all times during the execution of the Project: (a) its ANE and the Road Fund shall be maintained under terms and conditions satisfactory to the Association, including the maintenance of its functions, composition and staff with qualifications, experience and performance satisfactory to the Association; (b) the relevant Ministries and, Agencies and authorities (inter alia, MOPWH, MICOA, MPF and, ANE, DEPs and the Road Fund) shall comply with the provisions of the PIP, in particular, with respect to the appointment of individuals, with qualifications, experience, and functions satisfactory to the Association, who shall assist in ensuring proper implementation of the Project; (c) all such the measures are taken so as required on the Road Fund to ensure that the level of the road maintenance user fees, satisfactory to the Association, shall to be channeled into the Rroad Ffund and, are from time to time, as need be, adjusted in aaccordance with ing tothe agreed provision under the Letter of Development PProgram; and (d) the resourcesproceeds of the Road Fund from the road user charges shall be used solely for the purposes of defraying the cost of expenditures incurred for road maintenance operations in the territory of the Borrower. Section 3.06. The Borrower shall take all necessary measures to ensure that ANE shall comply with the provisions set forth in Section 3 of Schedule 2 to the Project Agreement. Section 3.07. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC ANE pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient declares its commitment to the objectives of shall carry out the Project through MPW (Directorate General of Highways), with due diligence and efficiency and in conformity with appropriate environmental, administrative and financial practices, and shall provide, promptly as set forth in Schedule 2 to this Agreementneeded, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceresources required for the Project. (b) The Recipient shall make Without limitation upon the proceeds provisions of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient paragraph (a) of this Section and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner except as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive carry out the Subsidiary Grant Agreement or any provision thereofProject in accordance with the Implementation Program set forth in Schedule 3 to this Agreement. (a) Section 3.02. Except as the Association Administrator 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 Grant shall be governed by the provisions of Schedule 1 4 of this Agreement. (a) The Recipient 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 Agreement, as said provisions may be further elaborated in of the Procurement Plandepartments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section including those for the Special Account for the Fiscal Year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Association, and Administrator; (ii) furnish such update to the Association Administrator as soon as available, but in any case not later than 12 six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Association’s approvalAdministrator shall have reasonably requested. Section 3.03. The Recipient (iii) Furnish to the Administrator such other information concerning said records and accounts and the Association hereby agree that audit thereof as the obligations set forth Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 accordance with paragraph (a) of the General Conditions (relating to insurance, use of goods and services, plans and schedulesthis section, records and reportsaccounts reflecting such expenditures; (ii) retain, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of until at least one year after the Project Agreement. Section 3.04. Within six months Administrator has received the audit report for the fiscal year in which the last withdrawal from the Date of EffectivenessGrant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Recipient shall have adopted the ESMF, RPF, Administrator’s representative to examine such records; and (iv) ensure that such records and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist accounts are included in the fiduciary management annual audit referred to in paragraph (b) of this Section and that the Project 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 qualifications the procedures and experience satisfactory internal controls involved in their preparation, can be relied upon to support the Association;related withdrawals

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without shall carry out Part C of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, maternal and child health and nutrition 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 (a) of this Section and except as the Borrower and the Administrator shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 3 to this Agreement. (c) Without any limitation or restriction upon any of its other obligations under this Agreement, the Borrower shall obtain from each Part C(4) State an executed Letter of Undertaking, substantially in the form set forth in Schedule 3 to this Agreement, and promptly upon its receipt forward a copy thereof to the Administrator, before such Part C(4) State participates in the carrying out of Part C(4) of the Project. (d) Without any limitation or restriction upon any of its other obligations under this Agreement, the Borrower shall cause FSRDC the Part C(4) States to perform in accordance with the provisions of the Project Agreement their respective Letters of Undertaking all the respective obligations of FSRDC the Part C(4) States therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC the Part C(4) States to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (be) The Recipient Borrower shall make the proceeds of the Grant Interim Fund Credit available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved Part C(4) States for such part of the Project as is carried out respectively by the AssociationPart C(4) States, in accordance with the Borrower’s standard arrangements for developmental assistance to the States of India. (cf) The Recipient Without any limitation or restriction upon any of its other obligations under this Agreement, the Borrower shall exercise its rights under cause the Subsidiary Grant Agreement Project States to perform in such manner as to protect accordance with the interests provisions of the Recipient and Project Agreement all the Association and to accomplish the purposes respective obligations of the GrantProject States therein set forth, andshall take or cause to be taken all action, except as including the Association shall otherwise agreeprovision of funds, facilities, services and other resources, necessary or appropriate to enable the Recipient Project States to perform such obligations, and shall not assign, amend, abrogate take or waive the Subsidiary Grant Agreement permit to be taken any action which would prevent or any provision thereofinterfere with such performance. (ag) The Borrower shall make the proceeds of the Interim Fund Credit available to the Project States for such part of the Project as is carried out respectively by the Project States, in accordance with the Borrower’s standard arrangements for developmental assistance to the States of India. Section 3.02. Except as the Association Administrator 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 Grant Interim Fund Credit shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator 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 Association Administrator, a plan designed to ensure the sustainability of the Project; and (b) afford the Administrator a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.04. The Administrator and the Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts A and B of the Project shall be carried out by FSRDC the Project States pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC Bharat Coal to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC Bharat Coal therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC Bharat Coal to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make re-lend the proceeds of the Grant available Credit to FSRDC Bharat Coal under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCBharat Coal, under terms and conditions which shall have been approved as prescribed by the AssociationBorrower from time to time for Bharat Coal. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of the Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower shall, not later than June 15, 1993, appoint an advisory panel consisting of representatives from the State of Bihar and local non-governmental organizations which would advise Bharat Coal in the review of recommendations contained in the fire fighting program and environmental management plan to be carried out under the Project. Section 3.04. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC Bharat Coal pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, and to this end, without any limitation or restriction upon any of its other obligations under this Agreementthe Development Credit Agreement shall: (i) cause La Paz to perform, shall cause FSRDC to perform in accordance with the provisions of the Project Agreement Agreement, all the obligations of FSRDC La Paz therein set forth, shall ; and (ii) take and cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC La Paz to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make transfer the proceeds of the Grant available Credit to FSRDC La Paz for purposes of carrying out the Project under a subsidiary grant agreement Subsidiary Agreement, satisfactory to the Association, to be entered into between the Recipient Borrower and FSRDC, under La Paz and which shall include the terms and conditions which shall have been approved by the Associationset forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not change, assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of the Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance maintenance, and land acquisition, respectively) in respect of the Project shall be carried out by FSRDC La Paz pursuant to Section 2.03 2.04 of the Project Agreement. Section 3.04. Within six months The Borrower shall take such measures as shall be appropriate to assist La Paz in carrying out the IMP, as the same may be revised from time to time by La Paz with the Date prior agreement of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from The Borrower shall, annually at a time requested by the Date of EffectivenessAssociation, the Recipient shall have appointed an accounting firm to assist in the fiduciary management and through completion of the Project Project: (a) review the implementation of the revenue sharing provisions of the National Tax Reform, with qualifications and experience satisfactory to the Association;; and

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Loan Agreement, shall cause FSRDC WAPDA to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC WAPDA therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC WAPDA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend the proceeds of the Grant available Loan to FSRDC WAPDA under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCWAPDA, under terms and conditions which shall have been approved by the AssociationBank which shall include the terms and conditions set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC WAPDA pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from For the Date purposes of EffectivenessSection 9.08 of the General Conditions and without limitation thereto, the Recipient shall have adopted Borrower shall: (a) prepare, on the ESMF, RPFbasis of guidelines acceptable to the Bank, and the IPDP satisfactory furnish to the Association. Section 3.05. Within Bank not later than six (6) months from after the Closing Date of Effectivenessor such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the Recipient shall have appointed an accounting firm to assist in the fiduciary management future operation of the Project Project; and (b) afford the Bank a reasonable opportunity to exchange views with qualifications and experience satisfactory to the Association;Borrower on said plan.

Execution of the Project. (a) The Recipient Tamil Nadu declares its commitment to the objectives of the Project as set forth in Schedule 2 to this the Loan Agreement, and, to this end, without shall carry out Part A of the Project through CMA with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and technical practices and environmental and social standards, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any of its other obligations under this Agreement, Tamil Nadu shall cause FSRDC cause: (i) TNUDF to perform in accordance with the provisions of the TNUDF Project Agreement all the obligations of FSRDC therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC TNUDF to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance; and (ii) CMDA to perform in accordance with the CMDA Project Agreement all the obligations therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable CMDA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under Without limitation upon the Subsidiary Grant Agreement in such manner as to protect the interests provisions of the Recipient paragraph (a) of this Section and the Association and to accomplish the purposes of the Grant, and, except as the Association Bank and Tamil Nadu shall otherwise agree, Tamil Nadu shall carry out Part A of the Recipient shall not assign, amend, abrogate or waive Project in accordance with the Subsidiary Grant Agreement or any provision thereofImplementation Program set forth in the Schedule to this Agreement. Section 2.02. (aa)(i) Except as the Association shall otherwise agree, procurement In respect of Part B.1(a) of the goodsProject, works and consultants’ services required for the Project and to be financed Tamil Nadu shall, out of the proceeds of the Grant shall be governed Loan made available to it by the provisions of Schedule 1 Borrower, onlend a portion thereof to the Project Agreement, as said provisions may TNUDF under a Subsidiary Loan Agreement to be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, entered into between Tamil Nadu and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient TNUDF under terms and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP conditions satisfactory to the Association. Section 3.05Bank, including: that the Subsidiary Loan shall be denominated in Indian Rupees; that TNUDF shall pay interest on the principal amount so onlent and withdrawn on a specific date (the Reference Date) and outstanding from time to time at a fixed rate set equal to the average yield of the Government of India 10-year securities issuances in the primary market (the Index) in the six (6) months preceding the Reference Date; plus a margin that is mutually acceptable to Tamil Nadu and TNUDF, with said margin not to exceed 100 basis points and to be determined for each drawdown from Tamil Nadu. Within In the event that there are no Government of India 10-year securities issuances in the primary market in the six (6) months from preceding the Date of EffectivenessReference Date, the Recipient shall have appointed an accounting firm to assist average yield of the Government of India 10-year securities issuances in the fiduciary management primary market in the twelve (12) month period immediately preceding the Reference Date shall serve as the Index. TNUDF shall repay the principal amount so re-lent over a period of the Project with qualifications and experience satisfactory to the Association;20 years including therein a grace period of five (5) years; and

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, the Loan Agreement shall cause FSRDC ANEP to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC ANEP therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC ANEP to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make transfer, on a grant basis, the proceeds of the Grant available Loan to FSRDC ANEP under a subsidiary grant agreement to be entered into between the Recipient Borrower and FSRDCANEP, under terms and conditions which shall have been approved by the AssociationBank. (c) The Recipient Borrower shall exercise its rights and carry out its obligations under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate suspend, abrogate, terminate or waive the Subsidiary Grant Agreement or any provision thereof. (ad) In case of discrepancy between the provisions of this Loan Agreement and the Subsidiary Agreement or between the Project Agreement and the Subsidiary Agreement, the provisions of this Loan Agreement and the Project Agreement shall prevail. Section 3.02. Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project shall be carried out by FSRDC ANEP pursuant to Section 2.03 (a) of the Project Agreement. Section 3.04. Within six months from The Borrower shall participate in the Date annual reviews referred to in Section 2.07 (c) of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the AssociationProject Agreement. Section 3.05. Within six months The Borrower shall not use Loan proceeds to finance textbooks, teachers’ salaries or any other non-incremental recurrent costs already financed by the Borrower including, but not limited to, costs financed by the Bank under Project 4381-UR. Section 3.06. The Borrower shall ensure that as a consequence of the execution of the Project: (a) no involuntary taking of land (including anything growing on or permanently affixed to land, such as buildings and crops) resulting in: (i) relocation or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood (whether or not the affected persons must move to another location) shall take place; and (b) no involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of displaced persons shall take place. Section 3.07. Without limitation to the provisions of Section 3.01 above, Borrower shall assist ANEP to: (a) implement, by not later than June 30, 2005 or such later date as the Bank may agree, the provisions set forth in ANEP’s Resolution No. 1, Acta 392, Circular 441 of November 17, 1999 (especially, paragraphs 3 to 5 of the concluding part of such resolution) in all full-time schools in the Borrower’s territory in a manner satisfactory to the Bank; (b) ensure that, by not later than June 30, 2005 or such later date as the Bank may agree, a management information system –satisfactory to the Bank- be functioning and fully implemented in at least ninety percent of all schools of more than 50 students in the Borrower’s territory; (c) reduce the frequency of textbook publishing reviews; (d) publish supplementary education materials and carry out in-service teacher training on environment, public health, race and gender issues in all full-time schools in the Borrower’s territory; (e) disseminate the lessons from the Date of Effectivenessbest practice PMEs dealing with vulnerable groups, the Recipient shall have appointed an accounting firm to assist environment and public health among all schools in the fiduciary management Borrower’s territory; (f) establish and maintain throughout Project implementation a mechanism –satisfactory to the Borrower and the Bank- to guarantee timely execution of the Project and an efficient coordination of Project activities between the PCU and the Borrower’s central council of the national administration of public education (Consejo Directivo Central de la Administración Nacional de Educación Pública- CODICEN), such mechanism to include a consultant with qualifications and experience functions satisfactory to the AssociationBank; (g) carry out, not later than in the year 2005, a student performance assessment of all sixth grade students in the Borrower’s territory; and (h) develop, by not later than 6 months after the Effective Date, or such later date as the Bank may agree, an index –satisfactory to the Bank- to track student achievement by income level. Section 3.08. The Borrower, through ANEP, shall, starting in 2005, participate in an international student assessment for primary education - satisfactory to the Borrower and the Bank - and continue to participate in the Programme for International Student Assessment..

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without shall carry out Parts A, B1, B3 and C of the Project through MOCEPH with due diligence and efficiency and in conformity with appropriate administrative, business, financial, environmental and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for Parts A, B1, B3 and C of the Project. (b) Without limitation upon the provisions of Paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts A, B1, B3 and C of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) Without any limitation or restriction upon any of its other obligations under this Agreement, shall the Borrower shall: (i) cause FSRDC to perform MEBF to: (a) carry out Part B.2 of the Project with due diligence and efficiency and in conformity with appropriate administrative, business, financial, engineering and technical practices, and (b) perform, in accordance with the provisions of the Project Agreement and Schedule 4 to this Agreement, all the obligations of FSRDC MEBF therein set forth, shall ; (ii) take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC MEBF to perform such obligations, ; and shall (iii) not take or permit to be taken any action which would prevent or interfere with such performance. (bd) The Recipient For the purposes of carrying out Part B.2 of the Project, the Borrower shall make available to MEBF the proceeds of the Grant available Financing allocated from time to FSRDC time to Categories 1, 2 (b), 3 (b), 4 and 5 (b) of the table in Paragraph 1 of Schedule 1 to this Agreement, under a subsidiary grant agreement Subsidiary Grant Agreement to be entered into between the Recipient Borrower and FSRDCMEBF, under terms and conditions which shall have been approved by the Association. (ce) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes objectives of the GrantProject, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goodsworks, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Financing shall be governed by the provisions of Schedule 1 3 to this Agreement. Section 3.03. Without limitation upon the provisions of Section 3.01 of this Agreement, and except as the Borrower and the Association shall otherwise agree, the Borrower shall: (a) open and maintain in FCFA, until the completion of the Project, a Project Account, in the Borrower’s Treasury, under terms and conditions satisfactory to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan.Association; (b) The Recipient promptly thereafter make an Initial Deposit into the Project Account in an amount equivalent to $280,000 to finance the Borrower’s initial contributions to the expenditures under the Project; (c) thereafter, at quaterly intervals, deposit into the Project Account such amounts as are estimated to be required for the ensuing three-month period and as shall update be agreed upon between the Procurement Plan Borrower and the Association; and (d) ensure that the funds deposited into the Project Account in accordance with Paragraphs (b) and (c) of this Section shall be used exclusively to finance the Borrower’s contribution to the expenditures under the Project which are not otherwise financed out of the proceeds of the Financing. Section 3.04. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation of the preceding Procurement Plan, for Project; and (b) afford the Association’s approvalAssociation a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.033.05. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part B.2 of the Project shall be carried out by FSRDC MEBF pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient 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 B and C of the Project through MIT, with due diligence and efficiency and in conformity with appropriate administrative, financial, agricultural, environmental, and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for Parts B and C of the Project; and (ii) without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC TOBB to perform in accordance with the provisions carry out Part A of the Project Agreement all the obligations of FSRDC therein set forthwith due diligence and efficiency and in conformity with appropriate administrative, financial, agricultural, environmental and technical practices, and shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC TOBB to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make Without limitation upon the proceeds provisions of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient paragraph (a) of this Section and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association Borrower and the Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive carry out Parts B and C of the Subsidiary Grant Agreement or any provision thereofProject and cause TOBB to carry out Part A of the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. (a) Section 3.02. For the purpose of carrying out Part A of the Project, the Borrower shall enter into a Subsidiary Loan Agreement with TOBB under terms and conditions satisfactory to the Bank including, without limitation, the terms and conditions set forth in Section I of the Annex to Schedule 5 to this Agreement. Section 3.03. Except as the Association Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 1 4 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project this Agreement. Section 3.04. Within six months from For the Date purposes of EffectivenessSection 9.07 of the General Conditions and without limitation thereto, the Recipient shall have adopted Borrower shall: (a) prepare, on the ESMF, RPF, basis of guidelines acceptable to the Bank and furnish to the Bank not later than six (6) months prior to the Closing Date or such later date as may be agreed for this purpose between the Borrower and the IPDP satisfactory Bank, a plan designed to ensure the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management continued achievement of the Project Project’s objectives; and (b) afford the Bank a reasonable opportunity to exchange views with qualifications and experience satisfactory to the Association;Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC the Project States to perform in accordance with the provisions of the Project Agreement all the respective obligations of FSRDC the Project States therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC the Project States to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC under a subsidiary grant agreement each Project State for such part of the Project as is carried out respectively by that Project State, in accordance with the Borrower’s standard arrangements for developmental assistance to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the AssociationStates of India. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower shall establish a panel of advisors of national repute in the fields of nutrition, maternal and child health and the social sciences related to tribal affairs by December 31, 1993, to assess annually the implementation of the Project amongst tribal populations, and the Borrower shall discuss with the Association a report of the Committee containing such assessment, as well as proposed steps arising therefrom. Section 3.04. The Borrower and the Association hereby agree that the obligations set forth in Sections Section 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project shall be carried out respectively by FSRDC the Project States pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient The Borrower shall have appointed an accounting firm to assist participate in the fiduciary management carrying out of the reviews of the Project with qualifications referred to in paragraphs 4 and experience satisfactory 7 of Schedule 2 to the Association;Project Agreement.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any shall carry out Part C of the Project through MOF, and shall carry out Part B of the Project through the CBR under arrangements satisfactory to the Bank, all with due diligence and efficiency and in conformity with appropriate financial, economic and administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for such Parts of the Project. Section 3.02. Without limitation or restriction upon any of its other obligations under this Agreement, the Borrower shall, for purposes of carrying out Part A of the Project, and unless the Bank shall cause FSRDC to perform otherwise agree: (a) solicit and approve proposals from candidate banks in accordance with the provisions eligibility criteria and procedures for approval of Institutional Development Sub-projects set forth or referred to in Schedule 5 to this Agreement; (b) cause the Participating Banks to carry out their respective Institutional Development Sub-projects in accordance with the same eligibility criteria and the terms of the Project Agreement all the obligations of FSRDC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligationsrespective Subsidiary Loan Agreements, and shall not take or permit to be taken any action which would prevent or interfere with the carrying out by such performance.Participating Banks of their respective activities under the Institutional Development Sub- projects; (bc) The Recipient shall make available to each such Participating Bank the amount of financing required for such Institutional Development Sub-project, including the applicable portions of the proceeds of the Grant available Loan as referred to FSRDC in Schedule 5 to this Agreement, under a one or more subsidiary grant agreement loan agreements to be entered into between the Recipient Borrower and FSRDCsuch Participating Bank, under terms and conditions which shall have been approved by the Association.Bank, and which shall include, without limitation, those set forth in Section III of Schedule 5 to this Agreement; and (cd) The Recipient shall exercise its rights under the Subsidiary Grant Agreement Loan Agreements in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, and except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the any such Subsidiary Grant Loan Agreement or any provision thereof. Section 3.03. For purposes of the efficient carrying out of the Project and ensuring the effective supervision of the execution of the Institutional Development Sub-projects, and without limitation on the provisions of Sections 3.01 and 3.02 of this Agreement, the Borrower shall cause to an agreement to be entered into between MOF and CBR concerning the carrying out by MOF of responsibilities connected with supervision of the performance of the Participating Banks in respect of their adherence to accreditation standards applicable under the Project, as set forth or referred to in Schedule 6 to this Agreement, in any areas which might be concerned with banking supervision requirements generally applicable to such banks under the laws and regulations of the Borrower, and other matters satisfactory to the Bank. Section 3.04. In order to facilitate the efficient carrying out of the Project, the Borrower shall establish and thereafter maintain with membership, staff and other resources and under terms of reference satisfactory to the Bank: (a) a Project Implementation Unit (PIU) to be responsible for the daily coordination of the execution of the Project; and (b) a Bank Review Unit, reporting to the MOF and CBR, and advising on such matters, as shall have been defined by the Borrower acceptable to the Bank, which may be concerned with monitoring of Participating Banks’ performance and developing of administrative or corrective measures for Participating Banks carrying out the Institutional Development Sub-projects under Part A of the Project. Section 3.05. Except as the Association Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.033.06. The Recipient Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, . 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part A of the Project shall be carried out by FSRDC pursuant to Section 2.03 of the Project AgreementParticipating Banks. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives Objectives of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall take all reasonable action within its power to cause FSRDC TOTCO and COTCO to perform in accordance with the provisions of of, respectively, the TOTCO Project Agreement and the COTCO Project Agreement, all the obligations of FSRDC of, respectively, TOTCO and COTCO therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC TOTCO and COTCO to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Xxxx Loan available to FSRDC TOTCO and COTCO under a subsidiary grant agreement funding agreements to be entered into between between, respectively, TOTCO and the Recipient Borrower and FSRDCCOTCO, Cameroon and the Borrower, under terms and conditions xxxxxx ions which shall have been approved by the AssociationBank. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant TOTCO Shareholder Funding Agreement, the TOTCO Governmental Funding Agreement, the COTCO Shareholder Funding Agreement and the COTCO Governmental Funding Agreement to which the Borrower is party, in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantXxxx Loan, and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive (except as set forth in the Subsidiary Grant Direct Agreements with the Republics and other loan and security documents entered into with the Senior Lenders (or a trustee or agent on their behalf) pursuant to which a party: (i) may be required not to exercise or may be required to cease to exercise remedies against a counterparty during a certain period of time in order for such counterparty to cure or contest the event or circumstance giving rise to such remedy or for the Senior Lenders (or their representatives) to exercise their security or substitution rights, or (ii) consents to the assignment of the Core Project Documents to the Senior Lenders) the TOTCO Shareholder Funding Agreement, the TOTCO Governmental Funding Agreement, the COTCO Shareholder Funding Agreement and the COTCO Governmental Funding Agreement to which the Borrower is a party or any provision thereof. (d) 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 assist TOTCO and COTCO in carrying out Parts B and C of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for Parts B and C of the Project and to be financed out of the proceeds of the Grant Xxxx Loan shall be governed by the provisions of of, respectively, Schedule 1 to the TOTCO Project Agreement and Schedule 1 to the COTCO Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and For the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and purposes of Section 9.08 of the General Conditions and without limitation thereto, the Borrower shall take steps to: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Bank, use 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 for its future actions to support the future operation of the Project; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan. of goods and services, plans and schedules, records and reports, maintenance reports and land acquisitionmaintenance, respectively) in respect of Part B and Part C of the Project shall be carried out out, respectively, by FSRDC TOTCO pursuant to Section 2.03 of the TOTCO Project Agreement and by COTCO pursuant to Section 2.03 of the COTCO Project Agreement. ; and (ii) Section 3.04. Within six months from 9.09 of the Date General Conditions (relating to land acquisition) in respect of Effectiveness, the Recipient shall have adopted the ESMF, RPF, Part B and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management Part C of the Project shall be carried out, respectively, by the Borrower, COTCO and TOTCO, in accordance with qualifications their respective obligations under the relevant provisions of the TOTCO Convention and experience satisfactory to the Association;COTCO Convention.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC EdD to carry out the Project and to perform in accordance with the provisions of the Project Agreement all the other obligations of FSRDC EdD therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC EdD to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend fifty percent (50%) of the proceeds of the Grant available Credit to FSRDC EdD under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCEdD, under terms and conditions which shall have been approved by the Association.Association which shall include a rate of interest of 8.5%, a term of twenty years including five years of grace and the assumption of the foreign- exchange risk by XxX. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the Grant, Credit and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (ad) The Borrower shall make available fifty percent (50%) of the proceeds of the Credit to EdD as equity participation. Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of the Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC EdD pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Loan Agreement, shall cause FSRDC BKV to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC BKV therein set forth, shall take and or cause to be taken all action, including the provision provisions of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC BKV to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) Without limitation upon the generality of the provisions of Section 3.01 (a), the Borrower shall initiate at its General Assembly the tariff increases necessary to enable BKV to meet the requirements of Section 4.02 of the Project Agreement. (c) The Recipient Borrower shall carry out Part C of the Project with due diligence and efficiency and shall provide, promptly as needed, the funds, services, facilities and other resources required for Part C of the Project. (d) The Borrower shall make available part of the proceeds of the Grant available Loan to FSRDC BKV under a subsidiary grant an agreement (Special Agreement) to be entered into between the Recipient Borrower and FSRDC, under terms and conditions BKV which shall have been approved by the AssociationBank. Such agreement shall provide, inter alia, for BKV to provide sufficient funds to the Borrower to meet the Borrower’s debt service and repayment obligations under the Loan Agreement in respect of Parts A and B of the Project. (ce) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Special Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Special Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and Without limitation upon the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 provisions of Article IX of the General Conditions Conditions, the Borrower shall: (relating a) prepare and furnish to insurancethe 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, use a plan, of goods such scope and servicesin such detail as the Bank shall reasonably request, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 for the future operation of the Project AgreementProject; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) thereafter carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Bank’s comments thereon. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project Project, as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC KWS to perform perform, in accordance with the provisions of the Project Agreement Agreement, all the obligations of FSRDC KWS therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC KWS to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make the proceeds of the Grant available to FSRDC KWS as a grant under a subsidiary grant an agreement (the Subsidiary Grant Agreement) to be entered into between the Recipient and FSRDCKWS, under terms and conditions which shall have been approved by the AssociationBank. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association Bank and to accomplish the purposes of the Grant, and, except as the Association Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and the Association hereby Bank agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC KWS pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the The Recipient shall have adopted participate in the ESMF, RPF, midterm review referred to in Section 2.07 of the Project Agreement and shall ensure that KWS shall implement the IPDP satisfactory to the AssociationProject in accordance with agreements reached during said review. Section 3.05. Within six months The Recipient shall, before carrying out any development project upstream on the Xxxx River: (a) carry out, in consultation with the Bank, an environmental impact assessment on the proposed development project to assess whether such development project will have a serious and irreversible impact on the ecology of TRPNR; and (b) implement any mitigation plan resulting from the Date environmental impact assessment referred to in paragraph (a) of Effectivenessthis Section, in consultation with the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications Bank and experience satisfactory to the Association;other interested parties.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction to upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC BCRG to perform in accordance with the provisions of the BCRG Project Agreement all the obligations of FSRDC BCRG therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC BCRG to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC BCRG under a subsidiary grant agreement to be entered into between the Recipient Borrower and FSRDCBCRG, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. Section 3.02. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall cause BCRG to: (a) Except as prepare, on the Association shall otherwise agree, procurement basis of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the sustainability of the preceding Procurement Plan, for Project; and (b) afford the Association’s approvalAssociation a reasonable opportunity to exchange views with the Borrower and BCRG on said plan. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.049.4, 9.059.5, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project shall be carried out by FSRDC BCRG pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six The Borrower shall: (a) ensure that, not later than December 31, 1998, CMG, CRG and PRIDE’s operations are carried out under the overall supervision of MSMU without interference from any other officials or agencies of the Borrower; and (b) take all appropriate action as required on its part to: (i) assist BCRG in implementing the recommendations of the study referred to under Part B.2 of the Project as they shall have been agreed upon with the Association; and (ii) achieve the transformation of CMG, CRG and PRIDE credit schemes into autonomous and financially viable entities as provided for under Part A.3 of the Project. (a) The Borrower shall carry out, jointly with the Association and BCRG, not later than eighteen months after the Effective Date, a mid-term review of the progress made in carrying out the Project. The said mid-term review shall cover, among other things: (i) progress in meeting the Project’s objectives; and (ii) the performance by the Borrower and BCRG of their respective obligations under the Project. (b) Not later than one month prior to the Midterm Review, the Borrower shall cause BCRG to furnish to the Borrower and to the Association, for review and comments, a report covering items specified in paragraph (a) above, including an evaluation of the progress achieved in the execution of the Project and recommendations resulting from the Date of Effectivenessstudies conducted under the Project. (c) Promptly after completing such review, the Recipient Borrower shall have adopted carry out or cause BCRG to carry out the ESMFrecommendations emanating from the said review, RPF, as agreed between the Borrower and the IPDP satisfactory to BCRG and the Association. Section 3.053.06. Within six months from Unless it shall have been otherwise agreed upon with the Date of EffectivenessAssociation, the Recipient Borrower shall have appointed an accounting firm to assist in not initiate any new microfinance credit scheme until the fiduciary management completion of the Project with qualifications and experience satisfactory to the Association;Project.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Interim Fund Development Credit Agreement, shall cause FSRDC the Entities to perform in accordance with the provisions of the Project Agreement Agreements all of the obligations of FSRDC the Entities therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC the Entities to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend the proceeds of the Grant available Interim Fund Credit to FSRDC the Federation and Republika Srpska for purposes of the Project under a separate subsidiary grant agreement credit agreements to be entered into between the Recipient Borrower and FSRDC, under terms the Federation and conditions which shall have been approved by the AssociationBorrower and Republika Srpska in accordance with the provisions of the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement Credit Agreements in such a manner as to protect the interests of the Recipient Borrower and the Association Administrator and to accomplish the purposes of the GrantInterim Fund Credit, and, except as the Association Administrator shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Credit Agreements or any provision thereof. (a) Section 3.02. Except as the Association Administrator 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 Grant Interim Fund Credit shall be governed by the provisions of Schedule 1 the Schedules to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approvalAgreements. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts A and B of the Project shall be carried out by FSRDC the Entities pursuant to Section 2.03 2.05 of the respective Project AgreementAgreements. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC MMCT to carry out the Project and to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC MMCT therein set forth, shall take and or cause to be taken all action, action including the provision of funds, facilities, services and other resources, resources necessary or appropriate to enable FSRDC MMCT to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make the proceeds of the GEF Trust Fund Grant available to FSRDC MMCT as a Grant (the MMCTF Grant), under a subsidiary grant agreement Subsidiary Agreement (the MMCT Subsidiary Agreement) to be entered into between the Recipient and FSRDC, MMCT under terms and conditions which shall have been approved by the AssociationBank. (c) The Recipient shall exercise its rights under the MMCT Subsidiary Grant Agreement in such a manner as to protect the interests of the Recipient and the Association Bank and to accomplish the purposes of the GEF Trust Fund Grant, and, and except as the Association Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement subsidiary agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 GEF Trust Fund Grant shall be governed by the provisions of Schedule 1 2 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.043.03. Within six months from For the Date purposes of EffectivenessSection 9.06 of the General Conditions and without limitation thereto, the Recipient shall have adopted shall: (a) prepare, on the ESMF, RPFbasis of guidelines acceptable to the Bank, and the IPDP satisfactory furnish to the AssociationBank not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Bank, a plan for the future operation of the Project; and (b) afford the Bank a reasonable opportunity to exchange views with the Recipient on said plan. Section 3.053.04. Within six months from the Date of Effectiveness, the The Recipient shall have appointed an accounting firm consult the Bank, prior to assist in making any changes to the fiduciary management composition of the Project with qualifications and experience satisfactory to the Association;TMB.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC the Federation and Republika Srpska, to perform in accordance with the provisions carry out Parts A and B of the Project Agreement all the obligations of FSRDC therein set forthProject, respectively, with due diligence and efficiency and in conformity with appropriate administrative, financial, and engineering practices and shall take and or cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC the Federation and Republika Srpska to perform such obligationscarry out the respective part of the Project, and shall not take or permit to be taken any action which would prevent or interfere with such performancethe Federation and Republika Srpska carrying out their respective part of the Project. (ba) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC under a the Federation and Republika Srpska, respectively, pursuant to separate subsidiary grant agreement financing and project implementation agreements to be entered into between the Recipient Borrower and FSRDC, the Federation and the Borrower and Republika Srpska under terms and conditions which shall have been approved by the AssociationAssociation and which shall, inter alia, include the terms and conditions specified in Schedule 5 to this Agreement. (cb) The Recipient Borrower shall exercise its rights under the Federation Subsidiary Grant Financing and Project Implementation Agreement and Republika Srpska Subsidiary Financing and Project Implementation Agreement in such a manner so as to protect the interests interest of the Recipient Borrower and the Association Association, and to accomplish the purposes of the Grant, and, Credit and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Federation Subsidiary Grant Financing and Project Implementation Agreement or Republika Srpska Subsidiary Financing Agreement, or any provision thereof. (a) Section 3.03. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project this Agreement. Section 3.04. Within six months from The Borrower shall, until completion of the Date of EffectivenessProject, the Recipient shall have adopted the ESMFmaintain MPRA with such powers, RPFfunctions, and responsibilities and such staff, funds, facilities and other resources reasonably required to carry out the IPDP Project and deemed satisfactory to by the Association. The staff of MPRA shall include such personnel as agreed with the Association. Section 3.05. Within six months from The Borrower shall ensure and shall cause the Date of Effectiveness, Federation and Republika Srpska to ensure that all Mine clearance activities are carried out and all Mines cleared under the Recipient shall have appointed an accounting firm to assist Project are promptly destroyed in the fiduciary management accordance with safety standards and guidelines of the Project with qualifications and experience satisfactory to the Association;United Nations.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project Project, as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC XXXX to perform perform, in accordance with the provisions of the Project Agreement Agreement, all the obligations of FSRDC XXXX therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC XXXX to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Credit avail- able to XXXX as a xxxxx under an agreement (the Grant available to FSRDC under a subsidiary grant agreement Agreement) to be entered into between the Recipient Borrower and FSRDCXXXX, under terms and conditions con- ditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association Associaition shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.07 of the General Conditions, and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation of the preceding Procurement Plan, for Project; and (b) afford the Association’s approvalAssociation a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.033.04. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC XXXX pursuant to Section 2.03 of the Project Agreement. Section 3.043.05. Within six months from The Borrower shall implement appropriate measures to ensure the Date high quality of Effectivenessimported and exported seeds. To that end, the Recipient Borrower shall, not later than 27 months after the Effective Date, submit to Parliament draft legislation for the establishment of a Kenya Plant Health Inspection Service (KEPHIS) which shall have adopted be responsible for quality control, including management of the ESMFplant quarantine services to facilitate the export and import of seeds. Section 3.06. The Borrower shall: (a) carry out jointly with the Association and XXXX, RPFnot earlier than 21 months and not later than 27 months after the Effective Date, a midterm review of the progress made in carrying out the Project and the IPDP satisfactory Program (referred to in this Section as the Midterm Review). The Midterm Review shall cover, among other things: (i) the effectiveness of the institutional arrangements; (ii) the effectiveness of the implementation arrangements; (iii) XXXX’s performance, functioning and management; (iv) the implementation of Project activities, particularly the decentralization of research activities; (v) the performance of ARF; and (vi) progress in involving the private sector in research activities. (b) At least four weeks prior to the Midterm Review, furnish to the Association a report describing the status of the items listed in paragraph (a) above and of Project implementation generally. (c) Not later than four weeks after the Midterm Review, prepare an action plan, acceptable to the Association. Section 3.05. Within six months from , for the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management further implementation of the Project with qualifications and experience satisfactory to the Association;and, thereafter, implement such action program.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC NPA to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC NPA therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC NPA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend the proceeds of the Grant available Credit to FSRDC NPA under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCNPA, under terms and conditions which shall have been approved by the AssociationAssociation which shall include: (i) repayment of principal in 20 years (including 5 years of grace); (ii) annual interest at the prevailing rate payable by borrowers on loans made by the Bank; and (iii) the assumption by NPA of any foreign exchange risks on proceeds of the Credit relent to it. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insuranceinsurance , use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC NPA pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from The Borrower shall increase its equity in NPA by an amount equal to the Date total amount of Effectiveness, import duties to be paid by NPA on goods which it will import for purposes of the Recipient shall have adopted the ESMF, RPF, Project. The Borrower and the IPDP Association presently estimate the said duties to amount in the aggregate in 1992 prices to $10,233,000 equivalent. (a) The Borrower shall by December 31, 1993 through its Ministry of Labour, Energy and Power carry out a study to consolidate all energy sector activities within one ministry. The terms of reference of said study shall be satisfactory to the Association. (b) The Borrower shall: (i) furnish to the Association for its review and comments the results of the said study; and (ii) carry out the recommendations of the study in accordance with a time table satisfactory to the Association. Section 3.053.06. Within six months If the Borrower at any time decides to transfer any hydro-electric power station to NPA, it shall consult and reach agreement with the Association on the appropriate measures to ensure that NPA’s finacial viability is not adversely affected by such transfer. (a) The Borrower shall, as from April 1, 1993, settle outstanding amounts owed to NPA no later than 30 days after the Date billing date. (b) The Borrower shall: (i) by April 1, 1993 (A) carry out a review of Effectivenessits debts to NPA in order to validate and reschedule, as necessary, such debts, and (B) settle in full at least 50% of all of its outstanding debts to NPA; and (ii) by October 1, 1993 settle in full all the Recipient remaining outstanding amounts of such debts. (c) The Borrower shall have appointed an accounting firm to assist not, without the Association’s approval, carry out any investment project in the fiduciary management power sector exceeding $1,000,000 equivalent per year which is not included in an investment program agreed by the Borrower and the Association. Section 3.08. The Borrower shall: (i) include in its existing petroleum pricing formula the price of the Project with qualifications fuel oil; and experience satisfactory (ii) furnish by September 1, 1992 to the Association;Association the said pricing formula (including the price of fuel oil).

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under shall carry out the Project through the Palestinian Authority with due diligence and efficiency, in conformity with appropriate administrative, economic, financial and environmental practices and in accordance with the Implementation Program set forth in Schedule 4 to this Agreement, as the same may be amended from time to time by mutual agreement of the Borrower and the Administrator, and shall cause FSRDC the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall make the proceeds of the Credit available to the Palestinian Authority under a subsidiary agreement to be entered into between the Borrower and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (c) The Borrower shall cause the Palestinian Authority (i) to perform in accordance with the provisions of the Project Subsidiary Agreement all of the obligations of FSRDC the Palestinian Authority therein set forth, shall ; (ii) to take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performancethe carrying out of the Project. (bd) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower, the Palestinian Authority and the Association Administrator and to accomplish the purposes of the GrantCredit, and, except as the Association Administrator shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association Administrator 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and For the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, purposes of Section 9.07 and 9.08 of the General Conditions and without limitation thereto, the Borrower shall cause the Palestinian Authority to: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Administrator, use of goods and servicesfurnish to the Administrator not later than six (6) months after the Closing Date, plans or such later date as may be agreed for this purpose between the Palestinian Authority and schedulesthe Administrator, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant a plan to Section 2.03 ensure the continued achievement of the Project AgreementProject’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Loan Agreement, shall cause FSRDC XPB to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC XPB therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC XPB to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend through XMG the proceeds of the Grant available Loan to FSRDC XPB under a subsidiary grant agreement loan agreements to be entered into between the Recipient Borrower and FSRDCXMG, and XMG and XPB, under terms and conditions which shall have been approved by the AssociationBank and shall include that: (i) the subsidiary loan shall be repaid over a period of 20 years, including five years of grace, and accrue interest at a rate of five percent (5%) per annum; and (ii) the commitment charges and the foreign exchange risk on the repayment of the subsidiary loan shall be borne by XPB. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement Loan Agreements in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Loan Agreements or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC XPB pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC the PEA to carry out the Project through PWA with due diligence and efficiency and in accordance with the provisions of the Implementation Program set forth in Schedule 4 to this Agreement, as the same may be amended from time to time by mutual agreement of the Borrower and the Administrator. (b) The Borrower shall make the proceeds of the Credit available to the PEA under a subsidiary agreement to be entered into between the Borrower and the PEA, under terms and conditions which shall have been approved by the Administrator. (c) The Borrower shall cause the PEA to perform in accordance with the provisions of the Project Subsidiary Agreement all of the obligations of FSRDC the the PEA therein set forth, shall cause the PEA: (i) to take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC PWA to perform such obligations, carry out the Project; and shall (ii) not to take or permit to be taken any action which would prevent or interfere with such performanceits ability to carry out the Project. (bd) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Administrator and to accomplish the purposes of the GrantCredit, and, except as the Association Administrator shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association Administrator 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and Without limitation upon the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 provisions of Article IX of the General Conditions Conditions, the Borrower, through the PEA, shall cause PWA to: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Administrator, use of goods and servicesfurnish to the Administrator, plans not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the PEA and schedulesPWA, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 a plan for the future operation of the Project AgreementProject; (b) afford the Administrator a reasonable opportunity to exchange views with PWA on said plan; and (c) thereafter, carry out said plan with due diligence and efficiency, and in accordance with appropriate practices, taking into account the Administrator’s comments thereon. Section 3.04. Within six months from The Borrower, through the Date PEA, shall cause PWA to: (a) retain, until completion of Effectivenessthe Project, the Recipient Management Firm under the Management Contract; and (b) promptly inform the Administrator of any condition, act, omission or potential dispute which shall have adopted interfere, or threaten to interfere, with the ESMF, RPF, and performance by either party of its obligations under the IPDP satisfactory to the AssociationManagement Contract. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this Agreementthe Development Credit Agreement and in accordance with its Rural Finance Development Strategy, shall cause FSRDC ADMMEC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC ADMMEC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC ADMMEC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make available to ADMMEC on a grant basis the proceeds of the Grant available to FSRDC Credit under a subsidiary grant credit agreement to be entered into between the Recipient Borrower and FSRDCADMMEC, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Credit Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Credit Agreement or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of the Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC ADMMEC pursuant to Section 2.03 2.04 of the Project Agreement. Section 3.04. Within six months from The Borrower shall, by June 30, 1995, carry out jointly with the Date Association and with the participation of EffectivenessADMMEC a midterm review of the Project and soon thereafter shall implement the recommendations of such a review. In order to facilitate this review, the Recipient Borrower shall have adopted the ESMF, RPF, cause ADMMEC to prepare and the IPDP satisfactory furnish to the Association. Section 3.05. Within six months from , not later than four weeks before the Date scheduled date of Effectivenessthis review, a report of Project activities of such scope and in such detail as the Recipient Association shall have appointed an accounting firm reasonably requested. The review shall cover inter alia: (a) overall Project performance against established and agreed key performance indicators; (b) evaluation of Project success and problems to assist in take into account for the fiduciary management future expansion of the Project with qualifications activities; (c) assessment of Project sustainability; and experience satisfactory to the Association;(d) evaluation of consultants’ performance.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC IMLRC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC IMLRC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC IMLRC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend through Inner Mongolia the proceeds of the Grant available Credit and the proceeds of the Loan to FSRDC IMLRC under a subsidiary grant agreement loan agreements to be entered into between the Recipient Borrower and FSRDCInner Mongolia, and Inner Mongolia and IMLRC, under terms and conditions which shall have been approved by the AssociationAssociation and the Bank. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement Loan Agreements in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Loan Agreements or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit, and employment of consultants to assist in carrying out the Project, shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Association and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.049 04, 9.05, 9.069 06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 2 03 of the Project AgreementAgreement by IMLRC. Section 3.04. Within six months from The Borrower shall cause MR to provide adequate investments, in a timely manner, to upgrade and expand the Date railway lines connecting with the Jitong Line, so as to enable the Jitong Line to handle the added level of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Associationfreight traffic after its completion. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, and to this end, without shall carry out Part B (2) (ii) of the Project through SSME and cause INTI to carry out Part B (2) (i) of the Project, all with due diligence and efficiency and in conformity with appropriate administrative, technical 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 any limitation or restriction upon any of its other obligations under this Agreement, the Borrower shall cause FSRDC BANADE to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC BANADE therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC BANADE to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) The Borrower shall transfer to INTI, as grant, for purposes of Part B (2) (i) of the Project, the amount allocated from time to time to Category 2 (b) in the table in paragraph 1 of Schedule 1 to this Agreement, under contractual arrangements satisfactory to the Bank. The Recipient Borrower shall not change or fail to enforce any provision of such contractual arrangements. (a) The Borrower shall make available the proceeds of the Grant available Loan allocated from time to FSRDC time to Categories 1 and 2 (a) in the table in paragraph 1 of Schedule 1 to this Agreement to BANADE, through Banco Central, under a subsidiary grant loan agreement to be entered into between the Recipient Borrower, Banco Central and FSRDCBANADE, under terms and conditions which shall have been approved by the AssociationBank, which shall include, inter alia, the following: (i) the transfer of such proceeds to Banco Central under the same terms and conditions as those applicable to the Loan pursuant to the provisions of this Agreement; (ii) the relending of such proceeds by Banco Central to BANADE under the following terms and conditions: (A) the subsidiary loan shall be made and be repayable in Australes, adjusted for inflation on the basis of the Index; and (B) interest on the outstanding principal amount of the Subsidiary Loan as adjusted for inflation, shall be set at an initial rate of 7% per annum in respect of the portion of such subsidiary loan which will be used by BANADE for the purposes of Parts A (1) (ii) and (2) and B (1) of the Project, and an initial rate of 4% per annum in respect of the portion of such subsidiary loan which will be used by BANADE for the purposes of Part A (1) (i) and (3) of the Project, such rates to be reviewed semiannually as part of the review of the interest rates applicable to Sub-loans pursuant to Section 2.08 of the Project Agreement, and if necessary in the opinion of the Bank, revised in a manner satisfactory to the Bank. (cb) The Recipient Borrower shall exercise its rights rights, and shall cause Banco Central to exercise its rights, under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, and except as the Association Bank shall otherwise agree, the Recipient Borrower and Banco Central shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.03. Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 to the Project 6 of this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.033.04. The Recipient Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts A and B (1) of the Project shall be carried out by FSRDC BANADE pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC CPC to perform in accordance with the provisions of carry out the Project Agreement all the obligations of FSRDC therein set forth, with due diligence and in conformity with appropriate administrative and financial practices and shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resourcesresources required for the Project. (b) The Borrower shall make the proceeds of the Credit available to CPC under a Funds Transfer Agreement, on a grant basis, under terms and conditions which shall have been approved by the Association. (c) The Borrower shall cause CPC to perform in accordance with the provisions of the Funds Transfer Agreement, all the obligations of CPC therein set forth and shall cause CPC to take or cause to be taken all action, including the provision of funds, facilities, services and other resources necessary or appropriate to enable FSRDC CPC to perform such obligations, obligations and shall not take or permit to be taken any action which would prevent or interfere with such performance. (bd) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Funds Transfer Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Funds Transfer Agreement or any provision thereof. (e) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall cause CPC to carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the continued achievement of the preceding Procurement Plan, for the AssociationProject’s approval.objectives; and Section 3.03. The Recipient and (b) afford the Association hereby agree that a reasonable opportunity to exchange views with the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreementborrower on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC AIB to perform perform, in accordance with the provisions of the Project Agreement all the obligations of FSRDC AIB therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC AIB to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make available to AIB, on a grant basis, the proceeds of the Grant available to FSRDC Interim Fund Credit, under a subsidiary grant an agreement to be entered into between the Recipient Borrower and FSRDC, AIB (the Convention) under terms and conditions which shall have been approved by the AssociationAdministrator. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement Convention in such manner as to protect the interests of the Recipient Borrower and the Association Administrator and to accomplish the purposes of the GrantInterim Fund Credit, and, except as the Association Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Convention or any provision thereof. (a) Section 3.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Interim Fund Credit shall be governed by the provisions of Schedule 1 2 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association Administrator hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project shall be carried out by FSRDC AIB pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Loan Agreement, shall cause FSRDC CDR to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC CDR therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC CDR to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make available as a grant the proceeds of the Grant available Loan to FSRDC CDR under a subsidiary grant agreement to be entered into between the Recipient Borrower and FSRDCCDR, under terms and conditions which shall have been approved by the AssociationBank. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC CDR pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months The Borrower shall select, from its investment program for the Date agriculture sector, sub-projects, to be financed out of Effectivenessthe proceeds of the Loan, for the Recipient shall have adopted rehabilitation, operation and maintenance of the ESMF, RPF, and the IPDP satisfactory Irrigation Schemes referred to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management under Part A.1 (b) of the Project with qualifications and experience satisfactory on the basis of criteria acceptable to the Association;Bank, including those set forth in Schedule 5 to this Agreement.

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC the Federation to perform carry out the Project through its Ministry of Finance, and such other ministries and agencies as agreed with the Administrator, with due diligence and efficiency and in accordance with the provisions Implementation Program set forth in Schedule 4 to this Agreement, as such Implementation Program shall be modified from time to time by the agreement of the Project Agreement all Recipient and the obligations of FSRDC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceAdministrator. (ba) The For purposes of the carrying out of the Project, the Recipient shall make provide the proceeds of the Grant available to FSRDC the Federation under a subsidiary grant agreement Subsidiary Grant Agreement to be entered into between the Recipient and FSRDC, the Federation under terms and conditions which shall have been approved by the AssociationAdministrator, which shall include those described in the Implementation Program set forth in Schedule 4 to this Agreement, as such Implementation Program shall be modified from time to time by the agreement of the Recipient and the Administrator. (cb) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association Administrator and to accomplish the purposes of the Grant, and, and except as at the Association Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.03. The Recipient shall maintain a PCU under terms of reference and with staffing and other resources acceptable to the Administrator. The PCU shall be headed by a director and shall have the overall responsibility for Project coordination, including coordination of the carrying out of the Project by the Ministry of Finance of the Federation, Electroprivreda, and such other ministries and agencies and institutions of the Federation as agreed with the Administrator. Section 3.04. Except as the Association Administrator 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 Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) The Recipient shall or shall cause the Federation to maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project Agreement, as said provisions may be further elaborated in of the Procurement Plandepartments or agencies of the Recipient or the Federation responsible for carrying out the Project or any part thereof. (b) The Recipient shall update or shall cause the Procurement Plan Federation to: (i) have the records and accounts referred to in paragraph (a) of this Section and those for the Special Account for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Association, and Administrator; (ii) furnish such update to the Association Administrator as soon as available, but in any case not later than 12 six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Association’s approvalAdministrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating c) For all expenditures with respect to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months which withdrawals from the Date Grant Account were made on the basis of Effectivenessstatements of expenditure, the Recipient shall have adopted or shall cause the ESMFFederation to: (i) maintain or cause to be maintained, RPFin accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the IPDP satisfactory to Administrator has received the Association. Section 3.05. Within six months audit report for the fiscal year in which the last withdrawal from the Date of EffectivenessGrant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Recipient shall have appointed an accounting firm Administrator’s representatives to assist examine such records; and (iv) ensure that such records and accounts are included in the fiduciary management annual audit referred to in paragraph (b) of this Section and that the Project 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 qualifications the procedures and experience satisfactory internal controls involved in their preparation, can be relied upon to support the Association;related withdrawals.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Loan Agreement, shall cause FSRDC ICBF to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC ICBF therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC ICBF to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Loan available to FSRDC ICBF under a subsidiary grant agreement to be entered into between the Recipient Borrower and FSRDCICBF, under terms and conditions which shall have been approved by the AssociationBank. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower shall: (a) take or cause to be taken all necessary actions to: (i) ensure that every child will be vaccinated prior to entering the Program in accordance with appropriate health practices; and (ii) establish, not later than October 31, 1990, criteria and arrangements, satisfactory to the Bank, for identifying and meeting additional health needs among HBI Participants; and (b) provide all necessary funds, facilities, services and other resources required for such purposes. Section 3.04. The Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC ICBF pursuant to Section 2.03 2.10 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC to perform in accordance with the provisions of carry out the Project Agreement all through MOARD with due diligence and efficiency and in conformity with appropriate administrative, financial and pest management practices and with due regard to ecological and environmental factors and to the obligations health and safety of FSRDC therein set forthworkers, and shall take and cause to be taken all actionprovide, including promptly as needed, the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceresources required for the Project. (b) The Recipient shall make duly and punctually perform all its obligations under the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient Conventions and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement thereunder in such manner as to protect the interests of the Recipient and the Association Bank and to accomplish the purposes of the GrantProject, andand without limitation to the generality of the foregoing, undertake all such actions as may be necessary to ensure the effective treatment and/or disposal of Obsolete Pesticides and Associated Waste under the Project. (c) Without limitation upon the provisions of paragraphs (a) and (b) of this Section, and except as the Association Recipient and the Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive carry out the Subsidiary Grant Agreement or any provision thereofProject in accordance with the implementation program set forth in Schedule 4 to this Agreement. (a) Except as the Association Bank shall otherwise agree, procurement of the goods, works and works, consultants’ services services, and Disposal Services required for the Project and to be financed out of the proceeds of the GEF Trust Fund Grant shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the AssociationBank, and furnish such update to the Association Bank not later than 12 twelve (12) months after the date of the preceding Procurement Plan, for the AssociationBank’s approval. Section 3.03. The Recipient and For the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and purposes of Section 9.08 of the General Conditions and without limitation thereto, the Recipient shall: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Bank, use of goods and servicesfurnish to the Bank not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Bank, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant a plan designed to Section 2.03 ensure the continued achievement of the Project Agreementobjectives of the Project; and (b) afford the Bank a reasonable opportunity to exchange views with the Recipient on said plan. Section 3.04. Within six months from For the Date avoidance of Effectivenessdoubt, the Bank and Recipient agree that the Project activities are potentially hazardous, involving as they do potentially dangerous chemicals; that the Bank shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management not be responsible for execution of the Project with qualifications and experience satisfactory activities, including any activities undertaken by any partners in or contractors to the Association;Project; that the Bank shall at no time during the course of the Project acquire any legal title to or obligations in respect of any Obsolete Pesticides, Associated Waste or the equipment used to dispose of, treat, handle or transport any of the same; and that the Bank shall not be liable if the Project activities cause any loss or damage of any kind whatsoever.

Execution of the Project. (a) The Recipient declares its commitment to the objectives of shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, environmental, social and forestry practices, and shall provide, promptly as set forth in Schedule 2 to this Agreementneeded, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceresources required for the Project. (b) The Recipient shall make Without limitation upon the proceeds provisions of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between paragraph (a) of this Section and except as the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive carry out the Subsidiary Grant Agreement or any provision thereofProject in accordance with the Implementation Program set forth in Schedule 4 to the Development Credit Agreement. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Danish Grant shall be governed by the provisions of Schedule 1 3 to the Development Credit Agreement. (a) The Recipient 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 Agreement, as said provisions may be further elaborated in of the Procurement Plandepartments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan 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 guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Association, and ; (ii) furnish such update to the Association as soon as available, but in any case not later than 12 six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning said records and accounts and the audit thereof as the Association shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient 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 Association has received the audit for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’s approval. representatives to examine such records; and ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section 3.03. The Recipient and the Association hereby agree that the obligations set forth 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 Sections 9.03their preparation, 9.04, 9.05, 9.06, 9.07 and 9.08 of can be relied upon to support the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreementrelated withdrawals. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient IREDA declares its commitment to the objectives of the Project as set forth in Schedule 2 to this the Development Credit Agreement, and, to this end, without any limitation or restriction upon any shall carry out Parts A.1 and B of the Project and conduct its other obligations under this Agreement, shall cause FSRDC to perform operations and affairs in accordance with the provisions of the Project Agreement all the obligations of FSRDC therein set forthsound financial standards and practices, shall take with qualified management and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligationspersonnel, and shall not take or permit to be taken any action which would prevent or interfere in accordance with such performanceits Memorandum and Articles of Association and the Policy Statement. (b) The Recipient shall make Without limitation upon the proceeds provisions of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient paragraph (a) of this Section and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association and IREDA shall otherwise agree, IREDA shall: (i) carry out Parts A.1 and B of the Recipient shall not assign, amend, abrogate or waive Project in accordance with the Subsidiary Grant Agreement or any provision thereofImplementation Program set forth in Schedule 2 to this Agreement; and (ii) make the Subloans on terms and conditions set forth in Schedule 3 to this Agreement. (a) Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for Parts A.1 and B of the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Section I of Schedule 1 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.032.03. The Recipient and the Association hereby agree that IREDA shall carry out the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 in respect of the Project Agreement. Section 3.042.04. Within six months from IREDA shall duly perform all its obligations under the Date Subsidiary Loan Agreement. Except as the Association shall otherwise agree, IREDA shall not take or concur in any action which would have the effect of Effectivenessamending, abrogating, assigning or waiving the Subsidiary Loan Agreement or any provision thereof. ˇ (a) IREDA shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the Recipient shall have adopted performance of its obligations under this Agreement and under the ESMF, RPFSubsidiary Loan Agreement, and the IPDP satisfactory other matters relating to the Associationpurposes of the Credit. Section 3.05. Within six months from (b) IREDA shall promptly inform the Date Association of Effectivenessany condition which interferes or threatens to interfere with the progress of the Project, the Recipient shall have appointed an accounting firm to assist in the fiduciary management accomplishment of the Project with qualifications purposes of the Credit, or the performance by IREDA of its obligations under this Agreement and experience satisfactory to under the Association;Subsidiary Loan Agreement.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, : (i) shall cause FSRDC VTSF to perform in accordance with the provisions carry out Part A of the Project Agreement all the obligations of FSRDC therein set forthwith due diligence and efficiency and in conformity with appropriate administrative, economic, financial, technical and environmental practices, shall take and take, or cause to be taken taken, all action, including the provision of funds, facilities, services and other resourcesresources necessary, necessary or appropriate appropriate, to enable FSRDC VTSF to perform such obligationscarry out Part A of the Project, and shall not take take, or permit to be taken taken, any action which would prevent prevent, or interfere with, the carrying out of Part A of the Project by VTSF; and (ii) shall carry out Parts B and C of the Project with such performancedue diligence and efficiency and in conformity with appropriate administrative and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for Parts B and C of the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall cause VTSF to carry out Part A of the Project, and shall carry out Parts B and C, all in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall make the proceeds of the Grant Credit allocated from time to time to Categories (2), (3) (a), (4) (a), and (5) of the table in paragraph 1 of Schedule 1 to this Agreement for Part A of the Project available to FSRDC VTSF, on a grant basis, under a subsidiary grant agreement Subsidiary Grant Agreement to be entered into between the Recipient Borrower and FSRDCVTSF, under terms and conditions which shall have been approved by the Association. (cd) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such a manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the Grant, Credit and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.07 of the General Conditions, and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the continued achievement of the preceding Procurement Plan, for the AssociationProject’s approval.objectives; and Section 3.03. The Recipient and (b) afford the Association hereby agree that a reasonable opportunity to exchange views with the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project AgreementBorrower on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient 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 B, C and D of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and agricultural practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project and (ii) without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC HORTEX to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC HORTEX therein set forthforth with respect to Part A of the Project, shall take and cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, resources necessary or appropriate to enable FSRDC HORTEX to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts B, C and D of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall make available the proceeds of the Grant available Credit allocated from time to FSRDC time to cCategory (1) of Schedule 1 to this Aagreement to HORTEX under a subsidiary grant agreement Subsidiary Grant Agreement to be entered into between the Recipient Borrower and FSRDCHORTEX, under terms and conditions which shall have been approved by the Association, which shall include, inter alia, those set forth or referred to in Schedule 5 to this Agreement. (cd) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement and in such manner as to protect the interests of the Recipient Borrower and the Association Associations, comply with its obligations under this Agreement, and to accomplish the purposes purpose of the Grant, Credit and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation of the preceding Procurement Plan, for the Association’s approval.Project; and Section 3.03. The Recipient and (b) afford the Association hereby agree that a reasonable opportunity to exchange views with the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project AgreementBorrower on said plan. Section 3.04. Within six months from In order to assist the Date Borrower in carrying out Part C of Effectivenessthe Project, the Recipient Borrower shall have adopted the ESMFenter into trust fund agreements, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months , under which FAO would provide agreed services with respect to those portions of Part C to be financed from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management proceeds of the Project with qualifications Credit and experience satisfactory to the Association;would establish trust fund accounts for this purpose.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under shall carry out the Project through the Palestinian Authority with due diligence and efficiency, in conformity with appropriate administrative, economic, financial and environmental practices and in accordance with the Implementation Program set forth in Schedule 4 to this Agreement, as the same may be amended from time to time by mutual agreement of the Borrower and the Administrator, and shall cause FSRDC the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall make the proceeds of the Credit available to the Palestinian Authority under a subsidiary agreement to be entered into between the Borrower and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (c) The Borrower shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Project Subsidiary Agreement all of the obligations of FSRDC the Palestinian Authority therein set forth, shall : (ii) to take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performancethe carrying out of the Project. (bd) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower, the Palestinian Authority and the Association Administrator and to accomplish the purposes of the GrantCredit, and, except as the Association Administrator shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association Administrator 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and For the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, purposes of Section 9.07 and 9.08 of the General Conditions and without limitation thereto, the Borrower shall cause the Palestinian Authority to: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Administrator, use of goods and servicesfurnish to the Administrator not later than six (6) months after the Closing Date, plans or such later date as may be agreed for this purpose between the Palestinian Authority and schedulesthe Administrator, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant a plan to Section 2.03 ensure the continued achievement of the Project AgreementProject’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any shall carry out the Project through the Directorate General of Urban and Rural Development of its other obligations under this AgreementMinistry of Settlements and Regional Infrastructure with due diligence and efficiency and in conformity with appropriate administrative, engineering, environmental and financial practices, and with due regard to ecological and environmental factors, and shall cause FSRDC to perform in accordance with provide, promptly as needed, the provisions of the Project Agreement all the obligations of FSRDC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceresources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (a) The Recipient Borrower shall make available out of the proceeds of the Grant available Credit the amounts allocated from time to FSRDC time to Category (1) of the table in paragraph 1 of Schedule 1 to this Agreement to selected Participating Local Governments under a subsidiary grant agreement Subsidiary Loan Agreements to be entered into between the Recipient Borrower and FSRDCthe selected Participating Local Governments, under terms and conditions which shall have been approved by the Association. (b) The Borrower shall make available out of the proceeds of the Credit to the Participating Local Governments, on a grant basis, the amount allocated from time to time to Category (2) of the table in paragraph 1 of Schedule 1 to this Agreement, in accordance with conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement Loan Agreements in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.03. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.04. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after before the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the continued achievement of the preceding Procurement Plan, for objectives of the Association’s approval.Project; and Section 3.03. The Recipient and (b) afford the Association hereby agree that a reasonable opportunity to exchange views with the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project AgreementBorrower on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC NACC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC NACC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC NACC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (ba) The Recipient Borrower shall make available to NACC, as a grant, the proceeds of the Grant available to FSRDC Credit under a subsidiary grant financing agreement to be entered into between the Recipient Borrower and FSRDC, NACC under terms and conditions which shall have been approved by the Association. (cb) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Financing Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Financing Agreement or any provision thereof. (a) Section 3.03. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.04. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the continued achievement of the preceding Procurement Plan, for Project’s objectives; and (b) afford the Association’s approvalAssociation a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.033.05. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;and

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC KCC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC KCC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC KCC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC KCC as a grant under a subsidiary grant agreement to be entered into between the Recipient Borrower and FSRDCKCC, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall cause KCC to: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation of the preceding Procurement Plan, for Project; and (b) afford the Association’s approvalAssociation a reasonable opportunity to exchange views with the Borrower on the said plan. Section 3.033.04. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) respectively shall be carried out by FSRDC KCC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Loan Agreement, shall cause FSRDC CDR to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC CDR therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC CDR to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make available as a grant to CDR the proceeds of the Grant available to FSRDC Loan under a subsidiary grant agreement to be entered into between the Recipient Borrower and FSRDCCDR, under terms and conditions which shall have been approved by the AssociationBank. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association Bank hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC CDR pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of EffectivenessThe Borrower shall, the Recipient shall have adopted the ESMFnot later than December 31, RPF1995, establish, and the IPDP satisfactory thereafter maintain, PCU within MMRA, with members whose qualifications, experience and terms of reference shall be acceptable to the AssociationBank, to provide assistance to CDR and the Participating Municipalities in carrying out their respective Project implementation functions. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under shall carry out the Project through the Palestinian Authority with due diligence and efficiency, in conformity with appropriate administrative, economic, financial and environmental practices and in accordance with the Implementation Program set forth in Schedule 4 to this Agreement, as the same may be amended from time to time by mutual agreement of the Borrower and the Administrator, and shall cause FSRDC the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall make the proceeds of the Credit available to the Palestinian Authority under a subsidiary agreement to be entered into between the Borrower and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (c) The Borrower shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Project Subsidiary Agreement all of the obligations of FSRDC the Palestinian Authority therein set forth, shall ; (ii) to take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performancethe carrying out of the Project. (bd) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower, the Palestinian Authority and the Association Administrator and to accomplish the purposes of the GrantCredit, and, except as the Association Administrator shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association Administrator 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and For the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, purposes of Section 9.07 and 9.08 of the General Conditions and without limitation thereto, the Borrower shall cause the Palestinian Authority to: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Administrator, use of goods and servicesfurnish to the Administrator not later than six (6) months after the Closing Date, plans or such later date as may be agreed for this purpose between the Palestinian Authority and schedulesthe Administrator, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant a plan to Section 2.03 ensure the continued achievement of the Project AgreementProject’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC the Harbor Bureau to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC the Harbor Bureau therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC the Harbor Bureau to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend the proceeds of the Grant available Credit and the proceeds of the Loan to FSRDC the Harbor Bureau under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCthe Harbor Bureau, under terms and conditions which shall have been approved by the AssociationAssociation and the Bank. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Association and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project AgreementAgreement by the Harbor Bureau. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC the North-East Provincial Council to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC the North-East Provincial Council therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC the North-East Provincial Council to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient shall make Without limitation upon the proceeds provisions of paragraph (a) of this Section and except as the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association shall otherwise agree, the Borrower shall cause the North-East Provincial Council to: (i) carry out its obligations in accordance with the provisions of this Agreement and to accomplish the purposes of Project Agreement; and (ii) implement the GrantProject in accordance with the Operational Manual, andthe Social Safeguard Framework, the Environmental Management Framework, and the Financial Manual, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate amend or waive the Subsidiary Grant Agreement or any provision thereofthereof if, in the opinion of the Association, such amendment or waiver may materially and adversely affect the implementation of the Project. (a) The Borrower shall make the proceeds of the Credit available to the North-East Provincial Council in accordance with terms and conditions acceptable to the Association. (b) The Borrower shall take adequate and timely measures to ensure that sufficient funds from its own resources are made available to the North East Provincial Council to carry out the Project. (a) Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said such provisions may be further elaborated in the Procurement Plan. (b) The Recipient Borrower shall cause the North East Provincial Council to update the Procurement Plan in accordance with guidelines the terms of reference acceptable to the Association, and furnish such update to the Association not later than 12 twelve (12) months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.033.04. The Recipient and (a) Without prejudice to the Association hereby agree that the Borrower’s obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 under Section 9.04 of the General Conditions (relating to insuranceensure that all goods, use of goods and works, services, plans training, and schedulesSub-Grants financed out of the Credit proceeds are used exclusively for the Project, records and reportsthe Borrower shall cause the North East Provincial Council to ensure that, maintenance and land acquisitionunder no circumstances, respectively) any proceeds of the Credit shall be carried out withdrawn, utilized, or made available for the payment of any taxes, levies, fees, or any other surcharges collected or levied by FSRDC pursuant to Section 2.03 of any group, cadre, entity or other non-governmental organization on goods, works or services, or on the Project Agreementimportation, manufacture, procurement or supply thereof. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC Andhra Pradesh to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC Andhra Pradesh therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC Andhra Pradesh to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) Without limitation upon its obligations under paragraph (a) above, the Borrower undertakes to approve and implement an annual five percent increase in the budgetary allocations of its Communes for the entire duration of the Project, beginning in Fiscal Year 2001. Section 3.02. The Recipient Borrower shall make the entire proceeds of the Grant Credit available to FSRDC under a subsidiary grant agreement Andhra Pradesh in accordance with the Borrower’s standard arrangements for development assistance to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the AssociationStates of India. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish Section 3.03. For the purposes of Section 9.06 of the Grant, and, except as the Association shall otherwise agreeGeneral Conditions and without limitation thereto, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof.Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Association, and furnish to the Association 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 Association, a plan designed to ensure the continued achievement of the objectives of the Project; and (b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.04. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project Project, and to be financed out of the proceeds of the Grant Credit, shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.033.05. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC Andhra Pradesh in respect of the Project pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any shall cause the Palestinian Authority to carry out the Project through CMWU with due diligence and efficiency, and in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation or restriction upon any the provisions of its other obligations under paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through CMWU in accordance with the Implementation Program set forth in Schedule 4 to this Agreement, . (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a Subsidiary Agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause FSRDC the Palestinian Authority: (i) to perform in accordance with the provisions of the Project Subsidiary Agreement all of the obligations of FSRDC the Palestinian Authority therein set forth, shall ; (ii) to take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performancethe carrying out of the Project. (b) The Recipient shall make the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. (ce) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Recipient, the Palestinian Authority and the Association Administrator and to accomplish the purposes of the Grant, and, except as the Association Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Except as the Association Administrator 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 Grant shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall cause the Palestinian Authority to update through CMWU, the Procurement Plan in accordance with guidelines terms of reference acceptable to the Association, Administrator and furnish such update to the Association Administrator not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;twelve

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC SF to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC SF therein set forth, shall take and cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC SF to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make available the proceeds of the Grant available Credit to FSRDC SF under a subsidiary grant agreement Subsidiary Financing Agreement to be entered into between the Recipient Borrower and FSRDCSF, under terms and conditions which shall have been approved by the Association, which shall include, inter alia, those set forth or referred to in Schedule 3 to this Agreement. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Financing Agreement and in such manner as to protect the interests of the Recipient Borrower and the Association Association, comply with its obligations under this Agreement, and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Financing Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC SF pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from The Borrower shall by June 30, 2000, lease to SF the Date two remaining seed grainages referred to in Part B.2 of Effectiveness, the Recipient shall have adopted the ESMF, RPF, Project under terms and the IPDP conditions satisfactory to the Association. Section 3.05. Within six months from The Borrower shall by June 30, 1998, take all action necessary on its part to restructure BSB and BSRTI into an autonomous technical organization with representatives of the Date of Effectivenessprivate sector engaged in silk activities having a majority on its Governing Board. To this end, the Recipient Borrower shall, by March 31, 1998, prepare and furnish to the Association, for its approval, the proposed restructuring plan. Section 3.06. Without limitation to the generality of Section 3.01 (a) hereof, the Borrower shall have appointed an accounting firm take all action necessary on its part to assist in ensure: (a) that SF will maintain and operate its facilities after completion of the fiduciary management Project; and (b) that all other facilities under the Project will be maintained and operated after completion of the Project with qualifications and experience satisfactory for the objectives set forth in Schedule 2 to the Association;this Agreement.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without shall carry out Parts A and B of the Project through DEF with due diligence and efficiency and in conformity with appropriate administrative, financial, and Forestry practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon the provisions of paragraph (a) of this Section and, except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts A and B of the Project in accordance with the Implementation Program set forth in Schedule 3 to this Agreement. (c) Without any limitation or restriction upon any of its other obligations under this Agreement, shall the Borrower shall: (i) cause FSRDC Fanalamanga to carry out Part C of the Project and to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC Fanalamanga therein set forth, shall ; (ii) take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC Fanalamanga to perform such obligations; and (iii) not take, and shall not take or permit to be taken taken, any action which would prevent or interfere with such performance. (bd) The Recipient Borrower shall make relend a part of the proceeds of the Grant available Credit to FSRDC Fanalamanga under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCFanalamanga, under terms and conditions which shall have been approved by the Association which shall provide, inter alia, that an amount equivalent to the proceeds of the Credit allocated from time to time to Category C of the table set forth in paragraph 1 of Schedule 1 to this Agreement for the carrying out of Part C of the Project shall be on-lent to Fanalamanga at an interest rate per annum equivalent to the lending rate of the International Bank for Reconstruction and Development in effect on the date of approval of the Credit by the Association, plus ten percent (10%) of such lending rate, to be repaid in 26 semi-annual installments following a grace period of seven years, with a commitment fee of 0.75% per annum on the amount undisbursed and with the foreign exchange risk on such amount on- lent to be borne by Fanalamanga. (ce) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the Grant, Credit and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit and the Swiss Contribution shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part C of the Project shall be carried out by FSRDC Fanalamanga pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient 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 Parts A, B, C, D, and E of the Project through MORPWH, and Part H through MOTC with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, and environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project; without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC KAA to perform in accordance with the provisions of the KAA Project Agreement all the obligations of FSRDC KAA therein set forth, shall take and cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC KAA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance.; and without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, shall cause KCAA to perform in accordance with the provisions of the KCAA Project Agreement all the obligations of KCAA therein set forth, shall take and cause to be taken all actions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable KCAA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall make relend part of the proceeds of the Grant available Credit to FSRDC KAA under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCKAA (KAA Subsidiary Loan Agreement), under terms and conditions which shall have been approved by the AssociationAssociation which shall include: (i) repayment of principal in 23 years including a grace period of 8 years; (ii) the payment of interest at the rate of 7% per annum; and (iii) the foreign exchange risk to be borne by the Borrower. (cd) The Recipient Borrower shall relend part of the proceeds of the Credit to KCAA under a subsidiary loan agreement to be entered into between the Borrower and KCAA (KCAA Subsidiary Loan Agreement), under terms and conditions which shall have been approved by the Association which shall include: (i) repayment of principal in 23 years including a grace period of 8 years; (ii) the payment of interest at the rate of 7% per annum; and (iii) the foreign exchange risk to be borne by the Borrower. (e) The Borrower shall exercise its rights under the KAA Subsidiary Grant Loan Agreement, and KCAA Subsidiary Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the KAA Subsidiary Grant Loan Agreement, KCAA Subsidiary Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project this Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient 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 the Part A, B, D and E of the Project [pursuant to the provisions of the Implementation Agreement] with due diligence and efficiency and in conformity with appropriate financial, technical, administrative, engineering and environmental practices, and shall provide promptly as needed the funds, facilities, services and other resources required for the Project; and (ii) without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC BE to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC BE therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC BE to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance.; (b) The Recipient Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement; (c) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall assist BE in carrying out Part C of the Project in accordance with the Implementation Program set forth in Schedule 1 to the Project Agreement; and (d) For the purposes of Part C of the Project, the Borrower shall: (i) make available part of the proceeds of the Grant available Credit to FSRDC BE under a subsidiary grant agreement to be entered into between the Recipient Borrower and FSRDC, BE (the Subsidiary Agreement) under terms and conditions which shall have been approved by the Association. ; and (cii) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the sustainability of the preceding Procurement Plan, for the Association’s approval.Project; and Section 3.03. The Recipient and (b) afford the Association hereby agree that a reasonable opportunity to exchange views with the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project AgreementBorrower on said plan. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without shall carry out Parts A, B, C, D and Part F of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, energy and environmental 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 (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the said Parts of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) Without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, the Borrower shall cause FSRDC cause: (i) PSF to perform in accordance with the provisions of the PSF Project Agreement all the obligations of FSRDC PSF therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC PSF to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance; (ii) UCC to perform in accordance with the provisions of the UCC Project Agreement all the obligations of UCC therein set forth, take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable UCC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance; and (iii) BOU to perform in accordance with the provisions of the BOU Project Agreement all the obligations of BOU therein set forth, take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable BOU to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (bd) The Recipient Borrower shall make available on a grant basis the proceeds of the Grant available Credit allocated from time to FSRDC under a subsidiary grant agreement time to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved by the Association. Categories (c3) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Except as the Association shall otherwise agree(ii), procurement of the goods(3) (b), works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (4) (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;and

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC Uttar Pradesh and EFAPB to perform in accordance with the provisions of the Project Agreement and the Memorandum of Understanding respectively, all the obligations of FSRDC Uttar Pradesh and EFAPB therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC Uttar Pradesh and EFAPB to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available on a grant basis to FSRDC under a subsidiary grant agreement to be entered into between EFAPB in accordance with the Recipient and FSRDC, under terms and conditions which shall have been approved by provisions of the AssociationMemorandum of Understanding. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as Without prejudice to protect the interests any other provision of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association shall otherwise agreethis Agreement, the Recipient Borrower shall not assignensure that EFAPB receives adequate funds on a six-monthly basis, amendin a timely manner, abrogate or waive the Subsidiary Grant Agreement or any provision thereoffor anticipated expenditures under its approved annual work plans. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC Uttar Pradesh and EFAPB pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from The Borrower shall cause Uttar Pradesh and EFAPB to carry out the Date of Effectiveness, DPEP in Uttar Pradesh in accordance with the Recipient DPEP Guidelines and shall have adopted the ESMF, RPF, and the IPDP satisfactory not make any change to the DPEP or the DPEP Guidelines, including in respect of its financial and administrative procedures, which would, in the reasonable opinion of the Association, materially and adversely affect the ability of Uttar Pradesh or EFAPB to carry out the Project or to perform any of their respective obligations under the Project. Section 3.05. Within six months from the Date of EffectivenessThe Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project accordance with qualifications and experience indicators satisfactory to the Association;, the carrying out of the Project and the achievement of the objectives thereof; and (b) carry out with the Association, Uttar Pradesh and EFAPB the reviews referred to in paragraph 11 of Schedule 2 to the Project Agreement, and after the first review, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of the first report referred to therein and the Association’s views on the matter.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC SFD to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC SFD therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC SFD to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make the proceeds of the Grant Credit available to FSRDC SFD, on a grant basis, under a subsidiary grant agreement the Subsidiary Grant Agreement to be entered into between the Recipient Borrower and FSRDCSFD, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC SFD pursuant to Section 2.03 (a) of the Project Agreement. Section 3.04. Within six months from the Date The Borrower shall: (a) take all measures necessary on its part to enable SFD to carry out SFD’s obligations referred to under Section 2.03 (b) of, and paragraph B of EffectivenessSchedule 2 to, the Recipient Project Agreement; and (b) except as the Association shall have adopted otherwise agree, undertake not to amend the ESMF, RPF, and Operations Manual in any manner so as to reduce the IPDP satisfactory to the Associationoperational autonomy of SFD. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC to perform in accordance with the provisions of carry out the Project Agreement all through the obligations of FSRDC therein set forthProject Implementing Agencies with due diligence and efficiency and in conformity with appropriate personnel management, financial and economic practices, and shall take and cause to be taken all actionprovide, including promptly as needed, the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceresources required for the Project. (b) The Recipient Without limitation or restriction upon the provisions of paragraph (a) of this Section, the Borrower shall: (i) cause the Proposed Decentralized Ministries, RDCs and such other public entities as shall make be required to carry out the proceeds Project or any Part thereof, to participate and assist in the implementation of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDCProject; and (ii) ensure that, under terms and conditions which shall have been approved unless otherwise agreed by the Association, the following Project Implementing Agencies shall have primary responsibility for carrying out the stated Part of the Project: Part A.1 - MPC Part A.2 - MF Part B - MPC (with Proposed - Decentralized - Ministries and RDCs Part C - MPC and PSM Secretariat Part D - INE Further provisions relating to the Project Implementing Agencies shall be as set forth in Part B of Schedule 4 to this Agreement. (c) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Grant, and, except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approvalthis agreement. Section 3.03. The Recipient Borrower shall: (a) enter into an agreement satisfactory to the Association (the Administrative Services Agreement) with a procurement agent acceptable to the Association for the purposes of providing administrative services for the Project on behalf of the Borrower including the contracting of consultants, arranging of training activities and procurement of goods to be financed from the proceeds of the Credit; and (b) exercise its rights under the Administrative Services Agreement in such a manner as to protect the interests of the Borrower, the Association and the Association hereby agree that Project Implementing Agencies and to accomplish the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 purposes of the General Conditions (relating to insuranceCredit, use of goods and servicesexcept as the Association shall otherwise agree, plans and schedulesshall not assign, records and reportsamend, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of abrogate or waive the Project AgreementAdministrative Services Agreement or any provision thereof. Section 3.04. Within six months The Borrower shall, for the purposes of carrying out the Project: (a) maintain, in a form and with functions and staffing satisfactory to the Association, a project coordinating unit (the PCU) having overall responsibility for the administration of the Project. Further provisions relating to the PCU shall be as set forth in Part A of Schedule 5 to this Agreement; (b) establish and maintain, not later than January 15, 1989, in a form and with functions satisfactory to the Association, a working group composed of representatives from the Date Proposed Decentralized Ministries and RDCs, and chaired by a representative of EffectivenessMPC, who shall be responsible for the formulation and review of proposals for the carrying out of the activities to be carried out under Parts B.2, B.3 and B.4 of the Project; (c) issue the necessary supreme decree for the implementation of the decentralization strategy referred to in Part X.x of the Project; (d) issue the necessary executive decree and implementing regulations establishing and maintaining in a form and with functions satisfactory to the Association the PSM Program; (e) without limitation or restriction upon the provisions of paragraph (a) of Section 3.01 of this Agreement, furnish, promptly as needed, the Recipient shall have adopted funds, facilities, services and other resources required for purposes of paragraphs (a) and (b) of this Section 3.04; and (f) at the ESMFrequest of the Association, RPFmeet with representatives of the Association and IDB, and with representatives of the IPDP Association and Switzerland, for the purposes of coordinating, and exchanging views on, the carrying out and progress in implementating Part A.2 and Parts A.l, B and C of the Project, respectively. (a) The Borrower and the Association shall, not later than November 30 of each year, exchange views on: (i) the progress achieved in carrying out the Project; and (ii) the work program for the following year for each Part of the Project. (b) Not later than four weeks prior to such exchange of views, the Borrower shall furnish to the Association a report in such detail and scope as the Association shall request, which report shall include: (i) an evaluation of progress achieved by the Borrower and by each Project Implementing Agency in the carrying out of the Project during such year; and (ii) a draft work program for each Project Implementing Agency in respect of the Part of the Project to be implemented by such Agency for the following year, including: (A) a statement of the objectives to be achieved and a description and timetable of the activities to be carried out to achieve such objectives; (B) detailed operating budgets, (C) a financing plan indicating the source of funds for each activity; (D) a procurement program detailing the goods and services to be procured; and (E) detailed staffing, training and other technical assistance plans. (c) Not later than December 31 of each year the Borrower shall furnish to the Association a finalized work program, satisfactory to the Association, by each Project Implementing Agency in respect of the Part of the Program to be implemented by such Agency for the following year including, without limitation, the details set out in subparagraph (b) (ii) of this Section 3.05. Section 3.06. The Borrower shall submit to the Association, not later than March 15, 1989, proposals, satisfactory to the Association in respect of the criteria and procedures governing the use of funds under the Credit for the pre-investment studies referred to in Part A.1 (b) of the Project. Section 3.07. The Borrower shall submit to the Association, not later than June 1, 1989, a training plan, satisfactory to the Association, for carrying out the provision of the training and technical assistance referred to in Part A.l (a) of the Project. Section 3.08. The Borrower shall appoint, not later than March 15, 1989, both the Director for the PSM Program and the Project training coordinator (referred to in Part A.l of Schedule 4 to this Agreement), both with qualifications and experience, and whose conditions and terms of referene of employment, are all acceptable to the Association. Section 3.053.09. Within six months from The Borrower shall ensure at all times that the Date of Effectiveness, Director for the Recipient shall have appointed an accounting firm to assist in the fiduciary management of PSM Program and both Project Director and the Project with training coordinator (both referred to in Part A.l of Schedule 4 to this Agreement) is each a person whose qualifications and experience satisfactory experience, and whose conditions and terms of reference of employment, are all acceptable to the Association;.

Execution of the Project. (a) The Recipient 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.3, B, C and D of the Project through TS with due diligence and efficiency and in conformity with appropriate financial, administrative, engineering, environmental and health practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project; and (ii) without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC AGETIP BURUNDI to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC AGETIP BURUNDI therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC AGETIP BURUNDI to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement; (c) the Borrower shall make the proceeds of the Grant Credit allocated to Parts A.1, A.2 and A.4 of the Project available to FSRDC AGETIP BURUNDI as a grant under a subsidiary grant agreement the AGETIP BURUNDI Convention to be entered into between the Recipient Borrower and FSRDC, under terms and conditions which shall have been approved by the Association.AGETIP BURUNDI; and (cd) The Recipient the Borrower shall exercise its rights under the Subsidiary Grant Agreement AGETIP BURUNDI Convention in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement AGETIP BURUNDI Convention or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for Parts A, B, C and D of the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation and sustainability of the preceding Procurement Plan, for Project; and (b) afford the Association’s approvalAssociation a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.033.04. Without limitation to its obligations under Section 3.01 of this Agreement, the Borrower shall: (a) open and thereafter maintain, until the completion of the Project, an account (the Project Account) in Francs Burundais, in a commercial bank, on terms and conditions satisfactory to the Association including appropriate protection against set-off, seizure and attachment; (b) promptly thereafter make an initial deposit in Francs Burundais of an amount equivalent to US$25,000 (Initial Deposit) into such account to finance the Borrower’s contribution to the Project for the first Project Year; (c) thereafter deposit into the Project Account on a semiannual basis during Project implementation such amounts as shall be required and agreed upon with the Association to timely replenish the Project Account back to the amount specified in the annual work program for the following Project Year agreed between TS and AGETIP BURUNDI; and (d) use the funds in the Project Account exclusively to finance expenditures under the Project. Section 3.05. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts A.1, A.2 and A.4 of the Project shall be carried out by FSRDC AGETIP BURUNDI pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC CBM and AGEPMF to perform in accordance with the provisions of the Project Agreement Agreements all of the obligations of FSRDC CBM and AGEPMF therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC CBM and AGEPMF to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make part of the proceeds of the Grant Credit available to FSRDC CBM as a grant under a subsidiary grant agreement (the CBM Subsidiary Agreement) to be entered into between the Recipient Borrower and FSRDCCBM, under terms and conditions which shall have been approved by the Association. (c) The Recipient Borrower shall make part of the proceeds of the Credit available to AGEPMF as a grant under a subsidiary agreement (the AGEPMF Subsidiary Agreement) to be entered into between the Borrower and AGEPMF, under terms and conditions which shall have been approved by the Association. (d) The Borrower shall exercise its rights under the Subsidiary Grant Agreement Agreements in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the Grant, Credit and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Agreements or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approvalAgreements. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out in respect of: (i) Part A.1 (b) of the Project by FSRDC CBM pursuant to Section 2.03 of the CBM Project Agreement; and (ii) Parts A.2 through D of the Project by AGEPMF pursuant to Section 2.03 of the AGEPMF Project Agreement. Section 3.04. Within six months from The Borrower shall establish and thereafter maintain, until completion of the Date Project, a Project Account in a commercial bank, into which it shall deposit in advance, no later than January 31 in each year of Effectivenessthe Project, the Recipient amount required to cover the Borrower's annual counterpart contributions to the Project for the 12 months immediately following thereafter, as such amount shall have adopted been determined by the ESMF, RPF, Borrower and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end: (i) shall carry out Part B of the Project through MOME with due diligence and efficiency in conformity with appropriate administrative, financial, engineering and public utility practices and with due regard to ecological and environmental factors and shall provide, promptly as needed, the funds, facilities, services and other resources required for such Part of the Project; and (ii) without any limitation or restriction upon any of its other obligations under this Agreement, : (A) shall cause FSRDC VRA to carry out Part A of the Project, to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC VRA therein set forth, (B) shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC VRA to perform such obligations, and (C) shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend a portion of the proceeds of the Grant available Credit to FSRDC VRA under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCVRA, under terms and conditions which shall have been approved by the AssociationAssociation which shall include provisions requiring the repayment by VRA of principal in 17 years, including 3 years of grace, payment of interest at the rate of 8% per annum, and the foreign exchange risk to be borne by VRA. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for Part B of the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Association and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part A of the Project shall be carried out by FSRDC VRA pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from The Borrower shall cause all bills payable through the Date Clearing House System to be settled on a monthly basis. Section 3.05. The Borrower shall ensure that the Power Sector Reform Committee operates under terms of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP reference satisfactory to the Association. Section 3.053.06. Within six months from the Date of EffectivenessThe Borrower shall carry out, the Recipient and shall have appointed cause VRA to carry out, in a timely manner an accounting firm to assist in the fiduciary management of the Project with qualifications and experience action plan, satisfactory to the Association, to implement the measures set out in the Environmental Assessment. Section 3.07. In carrying out Parts B.1 and B.2 of the Project, the Borrower: (a) shall cause the Power Sector Reform Committee to prepare, and provide to the Association for discussion, not later than May 31, 1995, a draft report, in scope and detail satisfactory to the Association, regarding recommendations for modifying the regulatory framework governing electricity utilities and for increasing private sector participation in the provision of electricity utility services; (b) shall cause the Power Sector Reform Committee to adopt, not later than September 30, 1995, a final report, which takes into account the comments of the Association; (c) shall, on the basis of such report, prepare, not later than December 31, 1995, an action plan, satisfactory to the Association, for modifying such regulatory framework and for increasing such private sector participation; and (d) shall thereafter implement such action plan in a timely manner. Section 3.08. In carrying out Part B.3 of the Project, the Borrower shall implement the Electricity Demand Management Program under terms of reference satisfactory to the Association, and shall operate the Electricity Demand Management Fund under terms of reference and management arrangements satisfactory to the Association. (a) The Borrower shall carry out, jointly with the Association and VRA, not earlier than 12 months and not later than 16 months following the Effective Date, a mid-term review of the progress made in carrying out the Project and the Program. This review shall cover, among other things: (i) the performance of VRA in carrying out the Project; (ii) the extent to which the institutional objectives of the Project are being achieved; (iii) the work of the Power Sector Reform Committee;

Execution of the Project. (a) The Recipient 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 through Coordination Nationale, CTNSC and the Direction du Pétrole, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, public utility, environmental and social 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 (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Borrower shall carry out Part A.5 of the Project through CTNSC and, to that end, the Borrower shall, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause FSRDC CTNSC to perform perform, in accordance with the provisions of the Project Agreement FACIL Manual, all the obligations of FSRDC CTNSC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC CTNSC to perform such obligations, ; and shall not take or permit cause to be taken any action which would prevent or interfere with such performanceperformance of CTNSC. (bd) The Recipient Borrower shall cause CTNSC to enter into Contracts with Project Operators, under which it shall make the proceeds of the Grant Credit allocated from time to time to Category (1) of the table in Schedule 1 to this Agreement, available to FSRDC under a subsidiary grant agreement to be entered into between Project Operators for the Recipient and FSRDC, purposes of carrying out Microprojects under terms and conditions which shall have been approved by the Association. (ce) The Recipient Borrower shall cause CTNSC to exercise its rights and perform its obligations under the Subsidiary Grant Agreement Contracts in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the Grant, Credit and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement Contracts or any provision thereof. (af) The Borrower shall carry out the Revenue Management Program as set out in Schedule 5 of the Loan Agreement. Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (ba) The Recipient shall update prepare, on the Procurement Plan in accordance with basis of guidelines acceptable to the Association, and furnish such update to the Association not later than 12 six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation and continued achievement of the preceding Procurement Plan, for the Association’s approval.Project; and Section 3.03. The Recipient and (b) afford the Association hereby agree that a reasonable opportunity to exchange views with the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project AgreementBorrower on said plan. Section 3.04. Within six months from the Date Without limitation to its obligations under Section 3.01 of Effectivenessthis Agreement, the Recipient shall have adopted the ESMF, RPF, Borrower shall: (a) open and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed maintain an accounting firm to assist in the fiduciary management of account (the Project with qualifications Account) in FCFA in a commercial bank on terms and experience conditions satisfactory to the Association; (b) promptly thereafter, make an initial deposit into such account, in an amount equivalent to US$60,000 to finance the Borrower’s contribution to the Project; (c) deposit into the Project Account by January 15, April 15, July 15 and October 15 in each year, until the completion of the Project, such amounts as shall be required to replenish in a timely manner, the Project Account to equal the amount of the initial deposit referred to in paragraph (b) above; and (d) use the Project Account funds exclusively to finance expenditures under the Project.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Loan Agreement, shall cause FSRDC RCC and GLE to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC RCC and GLE therein set forth, shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC RCC and GLE to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend the proceeds of the Grant available Loan to FSRDC RCC under a subsidiary grant agreement Subsidiary Loan Agreement to be entered into between the Recipient Borrower and FSRDC, RCC under terms and conditions which shall have been approved by the AssociationBank and which shall include the provisions set forth in Schedule 5 to this Agreement. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the GrantLoan, and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC RCC and GLE pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC KESH to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC KESH therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC KESH to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend the proceeds of the Grant available Credit to FSRDC KESH under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCKESH, under terms and conditions which shall have been approved by the Association which shall include: (i) ten years maturity with four years grace period; (ii) interest at a rate equal to the yield on the 10-year U.S. Treasury Bonds, plus a margin, as shall be reasonably determined by the Borrower on the basis of guidelines acceptable to the Association; and (iii) foreign exchange risk borne by KESH. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services goods required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of the Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and servicesgoods, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC KESH pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreement, and, to this end: (i) shall carry out Part B of the Project with due diligence and efficiency and in conformity with appropriate administrative and financial practices and shall provide, promptly as needed, the funds, facilities, services and other resources required for Part B of the Project; and (ii) without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC IDCOL to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC IDCOL therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC IDCOL to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Without limitation upon the provisions of paragraph (a) of this Section, and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out, or cause to be carried out, the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. (c) To assist in carrying out Part A of the Project, the Borrower shall make available the proceeds of the Grant available Credit allocated from time to FSRDC time to Categories 1 and 2 of the table set forth in paragraph 1 of Schedule 1 to this Agreement to IDCOL under a subsidiary grant agreement an Agency and Administration Agreement to be entered into between the Recipient Borrower and FSRDC, IDCOL under terms and conditions which shall have been approved by the Association, which shall include those set forth or referred to in Schedule 1 to the Project Agreement. (cd) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Agency and Administration Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Agency and Administration Agreement or any provision thereof. (a) Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for Part B of the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;and

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC PEC to perform in accordance with the provisions of the Project Agreement all the obligations of FSRDC PEC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC PEC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make relend the proceeds of the Grant available Credit to FSRDC PEC under a subsidiary grant loan agreement to be entered into between the Recipient Borrower and FSRDCPEC, under terms and conditions which shall have been approved by the AssociationAssociation which shall include the following: (i) repayment of the equivalent in terms of Yemeni Rials of the portion of the proceeds of the Credit so relent (such equivalent to be determined as of the respective date of withdrawal of the proceeds of the Credit from the Credit Account) in approximately equal semiannual installments over a period of forty (40) years, including a grace period of ten (10) years; and (ii) an interest rate of 6.5% per annum on the principal amount withdrawn and outstanding from time to time. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant Loan Agreement or any provision thereof. (d) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall cause PEC to carry out the Project in accordance with the Environmental Management Plan, the Resettlement Policy Framework and the Implementation Program set forth in Schedule 2 to the Project Agreement. (e) For the purpose of ensuring the proper management of the Project, MOE shall cause PEC to maintain the PMU throughout the life of the Project with organization, staffing, qualifications and terms of reference satisfactory to the Association. (a) Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 to the Project Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient Borrower shall cause PEC to update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 twelve (12) months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC PEC pursuant to Section 2.03 of the Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this the Development Credit Agreement, shall cause FSRDC GIOC to perform in accordance with the provisions of the Project GIOC Implementation Agreement all the obligations of FSRDC GIOC therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC GIOC to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Recipient Borrower shall make enter into an agreement with GIOC (the GIOC Implementation Agreement) under terms and conditions acceptable to the Association which shall include the obligations of GIOC in respect of the implementation of the Project, the undertaking by GIOC to carry out the obligations set forth in Sections 4.01 (a) and (b) and Article V of this Agreement, and the onlending of the proceeds of the Grant available to FSRDC under a subsidiary grant agreement to be entered into between the Recipient and FSRDC, under terms and conditions which shall have been approved Credit by the AssociationBorrower to GIOC, on the following principal terms: (i) the principal amount of the Subsidiary Loan shall be repaid in amounts equivalent (determined as of the respective dates of repayment) to the amounts withdrawn from the Credit Account or paid out of the Special Account on account of services financed out of the proceeds of the Credit; (ii) the principal amount of the Subsidiary Loan shall be repaid over a period of seven (7) years following no more than three (3) years of grace; and (iii) an interest rate on the principal amount of the Subsidiary Loan withdrawn and outstanding from time to time at a rate of 7% per annum. (c) The Recipient Borrower shall exercise its rights under the Subsidiary Grant GIOC Implementation Agreement in such manner as to protect the interests of the Recipient Borrower and the Association and to accomplish the purposes of the GrantCredit, and, and except as the Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Grant GIOC Implementation Agreement or any provision thereof. (a) Section 3.02. Except as the Association 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 Grant Credit shall be governed by the provisions of Schedule 1 3 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than 12 months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. The Recipient Before commencement of any training courses or job placement program under Part B of the Project, the Borrower shall cause GIOC to furnish to the Association for approval a detailed description of the suggested training or job placement program and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 curriculum vitae of each of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FSRDC pursuant to Section 2.03 of the Project Agreementproposed training candidates. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end: (i) shall carry out Parts A, B (b) and C of the Project through MINAGRI and Part E of the Project through MINSANTE, with due diligence and efficiency and in conformity with appropriate administrative and financial practices and shall provide, promptly as needed, the funds, facilities, services and other resources required for such Parts of the Project; and (ii) without any limitation or restriction upon any of its other obligations under this the Loan Agreement, the Borrower shall cause FSRDC UTAVA and CFC to perform all their respective obligations set forth in accordance with the provisions of the UTAVA Project Agreement all and the obligations of FSRDC therein set forth, CFC Project Agreement; shall take and or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable FSRDC UTAVA and CFC to perform such obligations, ; and shall not take or permit to be taken any action which would prevent or interfere with such performance. (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, B (b), C and E of the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. (c) The Recipient Borrower shall make available to UTAVA on a grant basis the proceeds of the Grant available Loan allocated to FSRDC Categories (8) and (9) of the table set forth in paragraph 1 of Schedule 1 to this Agreement under a subsidiary grant agreement to be entered into between the Recipient Borrower and FSRDCUTAVA, under terms and conditions which shall have been approved by the AssociationBank. (cd) The Recipient Borrower shall: (i) make available to CFC, on a grant basis, the proceeds of the Loan allocated to Category (11) of the table set forth in paragraph 1 of Schedule 1 to this Agreement; and (ii) relend to CFC the proceeds of the Loan allocated to Category (10) of said table, under a subsidiary loan agreement to be entered into between the Borrower and CFC, under terms and conditions which shall have been approved by the Bank. (e) The Borrower shall exercise its rights under the UTAVA Grant Agreement and the CFC Subsidiary Grant Loan Agreement in such manner as to protect the interests of the Recipient Borrower and the Association Bank and to accomplish the purposes of the Grant, Loan and, except as the Association Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the UTAVA Grant Agreement, the CFC Subsidiary Grant Agreement Loan Agreement, or any provision thereof. (a) Except as the Association 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 Grant Loan shall be governed by the provisions of Schedule 1 4 to the Project this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable Without limitation to its obligations under paragraph (a) of this Section and subject to the Associationprovisions of said paragraph, and furnish such update the Borrower shall employ a specialized non-governmental organization, satisfactory to the Association not later than 12 months after Bank, to assist in the date technical coordination of Part E of the preceding Procurement Plan, for the Association’s approvalProject. Section 3.03. The Recipient Bank and the Association Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts B(a) and D of the Project shall be carried out by FSRDC UTAVA and CFC, respectively, pursuant to Section 2.03 of the UTAVA Project Agreement and of the CFC Project Agreement. Section 3.04. Within six months from the Date of Effectiveness, the Recipient shall have adopted the ESMF, RPF, and the IPDP satisfactory to the Association. Section 3.05. Within six months from the Date of Effectiveness, the Recipient shall have appointed an accounting firm to assist in the fiduciary management of the Project with qualifications and experience satisfactory to the Association;