Common use of Execution of the Project Clause in Contracts

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, through the PCU, with due diligence and efficiency and in conformity with appropriate financial, administrative, legal and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal technical and technical financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAssociation, and furnish to the BankAssociation, on or about February 15 of each year during the implementation of the Project December 31, 2005, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project February 28, 2006, or such later date as the Bank Association shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAssociation’s views on the matter. Section 3.04. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementAssociation, carry out the Project in accordance with an operational manual, satisfactory and furnish to the Bank 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 be prepared by ensure the PCU, said manual to include specific rules and procedures for Project implementationcontinued achievement of the Project’s objectives; and (b) afford the Operational Manual may be amended by Association a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower Recipient declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall shall, carry out the Project, Project through the PCU, MoH with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (a) Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient, through the MoH, 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 Without limitation upon the purposes provisions of Section 9.07 of 3.01 and except as the General Conditions Recipient and without limitation theretothe Association shall otherwise agree, the Borrower Recipient shall: (a) prepare, on carry out the basis of guidelines acceptable Project in accordance with the Operational Manual satisfactory to the Bank, Association and furnish to in full compliance with 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 the future operation provisions of the Project;Environmental Management Plan and in a timely manner; and (b) afford maintain the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation PIU until completion of the ProjectProject in a legal and organizational form, with staff, resources and under terms of reference, all satisfactory to the Association. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower Recipient shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAssociation, and furnish to the BankAssociation, on or about February 15 of each year during the implementation of the Project March 31, 2008, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project May 31, 2008, or such later date as the Bank Association shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAssociation’s views on the matter. Section 3.05. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Recipient, through the MoH, shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementAssociation, carry out the Project in accordance with an operational manual, satisfactory and furnish to the Bank Association 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 Association, a plan designated to be prepared by ensure the PCU, said manual to include specific rules and procedures for Project implementationcontinued achievement of the Project; and (b) afford the Operational Manual may be amended by the Borrower from time Association a reasonable opportunity to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement exchange views with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, Recipient on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreementsaid plan. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal technical and technical administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project;; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project May 31, 2003, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project June 30, 2003, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeengineering, legal and technical practices, public utility practices and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 9.08 of the General Conditions and without any limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower Bank and the BankBorrower, a plan for the future operation of the Project;; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators agreed with the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project January 30, 1998 a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project March 31, 1998, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s Bank views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, Project through the PCU, MLSP with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal environmental and technical social practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project December 31, 2006, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project March 31, 2007, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. Section 3.04. The MLSP shall maintain the PMU until completion of the Project with staff, resources and terms of reference satisfactory to the Bank. Section 3.05. the Borrower shall adopt and maintain the Project Operational Manual in form and content satisfactory to the Bank, and shall not assign, amend, abrogate or waive the Operational Manual without a prior approval from the Bank. Section 3.06. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementBank, carry out the Project in accordance with an operational manual, satisfactory 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 to be prepared by the PCUBank, said manual to include specific rules and procedures a plan for Project implementationthe future operation of the Project; and (b) afford the Operational Manual may be amended by Bank a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, through Project under the PCUoverall supervision of MPSP, with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeagricultural, legal environmental and technical engineering 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, the Borrower shall: (i) open and thereafter maintain in GF and in the name of the Project (the Project Account) in a commercial bank on terms and conditions satisfactory to the Association; and (ii) thereafter deposit into the Project Account on the first day of every calendar quarter commencing on January 1, 1993, an amount equivalent to budgetary allocations required to cover anticipated expenditures for the Project over that quarter. (c) Amounts deposited into the Project Account pursuant to paragraph (b) above shall be used only to make payments to meet expenditures made or to be made in respect of the reasonable cost of goods and services for the Project. Section 3.02. Except as the Bank Borrower and the Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project Project, and to be financed out of the proceeds of the Loan Credit, shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For the purposes of Section 9.07 of carrying out the General Conditions and without limitation theretoProject, the Borrower shall: (a) prepare, on the basis of guidelines acceptable conclude contractual arrangements with relevant institutions satisfactory to the BankAssociation to (i) provide required expert advice (including technical, informational and managerial and training) to agricultural operators and agricultural associations, and furnish to (ii) strengthen 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 performance of small- and the Bank, a plan for the future operation of the Projectmedium-scale agricultural enterprises; (b) afford conclude with FGPCA an agreement satisfactory to the Bank a reasonable opportunity Association aimed at facilitating access to exchange views with the Borrower on said plan; andcredit for small- and medium-scale enterprises specializing in agricultural exports; (c) carry out an in-depth review (the mid-term review)i) not later than October 31, jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter1997, take all measures required on its part to ensure that wharf facilities in Benty and Fandie and all accessories related thereto including any relevant access roads are gazetted and classified into the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf public domain of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal engineering, financial and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (a) Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than twelve (12) months after the date of the preceding Procurement Plan, for the Bank’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 Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project;; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) submit to the Bank, within thirty (30) days of the end of each calendar quarter, quarterly progress reports, in form and substance satisfactory to the Bank; (c) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project December 31, 2006, a mid-term review report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph sub-paragraph (a) of this Sectionparagraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project Project, protection of the environment, and the achievement of the objectives thereof of the Project during the period following such date; and (cd) review with the Bank, by April 15 of each year during the implementation of the Project March 31, 2007, or such later date as the Bank shall request, the report referred to in sub-paragraph (bc) of this Sectionparagraph, and, thereafter, 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 said report and the Bank’s views on the matter. Section 3.05. The Borrower shall: (a) The Borrower shall, without limitation submit annually to the other provisions Bank: (i) reports of this Agreement, carry out statutory and its own inspections of the Project in accordance with an operational manual, satisfactory to Xxxxx dam; and (ii) reports on the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementationimplementation of their recommendations; and (b) discuss the Operational Manual inspections and reports with the Bank and undertake additional measures suggested by the Bank in consultation with Romania’s National Commission for Dam Safety. Section 3.06. The Borrower shall: (a) submit the updated emergency preparedness plan (EPP) for the Project: (i) in draft for Bank review no later than March 31, 2005; and (ii) in final form for Bank records no later than December 31, 2005; and (b) keep the Bank informed of future reviews and updates of the EPP. Section 3.07. The Borrower shall implement the Environmental Management Section 3.08. Not later than December 31, 2005, or such later date as may be amended by agreed between the Borrower from time to timeand the Bank, in the Borrower shall enter into a manner concession contract, satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement for its public domain assets with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this AgreementGuarantor. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project and, to this end, shall carry out the Project, through SESAB, with the PCUassistance of: (i) Micro-Regions and Eligible Micro-Regions with respect of Parts A.1 and A.2 of the Project; (ii) the Municipality of Salvador with respect to Part A.3 of the Project, and (iii) Eligible Municipalities (and FUNASA, if applicable, following the requirements of the Indigenous Peoples Framework), with respect of Part C.3 of the Project, all with due diligence and efficiency and in conformity with appropriate financialhealth, economic, technical, administrative, legal financial, environmental and technical social practices, including the Indigenous Peoples Framework when applicable, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall: (i) maintain, during the implementation of the Project, a Project coordination unit (PCU) with functions and responsibilities satisfactory to the Bank, at all times headed by a Project coordinator and assisted by staff in adequate numbers, all with qualifications and experience acceptable to the Bank; and (ii) not later than three months after the Effective Date, strengthen the financial management and procurement capacity of the PCU in a manner satisfactory to the Bank. (c) The Borrower shall, through SESAB, enter into an agreement with each Eligible Municipality under terms and conditions satisfactory to the Bank, substantially in accordance with the terms of the model Subproject Implementation Agreement, set forth in the Operational Manual, setting forth, inter alia, in respect of each Subproject: (i) the Eligible Municipality’s obligation: (A) to carry out the Subproject and to meet the performance benchmarks related thereto; (B) to procure the goods, works and services in accordance with: (I) the requirements of this Agreement; and (II) the contracting procedures and schedule specified in the procurement plan for all goods, works and services; (C) to keep records and accounts for the expenditures financed under the Subproject; (D) to enable the Bank to review the Eligible Municipality’s accounts and other information as the Bank shall reasonably request in respect of the Subproject; and (E) in the event that there are Indigenous Peoples to be affected by the Subproject, to coordinate with FUNASA and other agencies, as needed, and enter into the necessary agreements, to: (i) prepare the Indigenous Action Plan in accordance with the Indigenous Peoples Framework; and (ii) carry out the Indigenous Action Plan; (ii) the technical, financial and procurement requirements for the implementation of the Subproject, including annual procurement reviews of the Subproject by independent experts; (iii) SESAB’s right to suspend disbursements, or cancel amounts to be disbursed, as the case may be, in the event of noncompliance by the Eligible Municipality with the obligations set forth in the Subproject Implementation Agreement; and (iv) a list of expenditures that are eligible for financing by the proceeds of the Loan, including those related to the Indigenous Action Plan when such Plan is needed. (d) The Borrower shall, through SESAB, enter into an agreement or agreements with all of the municipalities of the Micro-Region and all of the municipalities of the Eligible Micro-Region under terms and conditions satisfactory to the Bank, setting forth, in respect of the implementation of Parts A.1 and A.2 of the Project: (i) each of the municipalities’ respective obligations in the Eligible Micro-Regions; (ii) the governance arrangements for the Micro-Region or Eligible Micro-Region and the respective obligations of the governing body or system thereof as appropriate; and (iii) SESAB’s respective obligations. (e) The Borrower shall, before commencing the preparation of an Indigenous Action Plan, enter into a cooperation agreement with FUNASA to set forth that FUNASA shall, in the event that a Subproject is carried out in an Eligible Municipality where Indigenous Peoples could be affected, comply with the requirements of the Indigenous Peoples Framework and carry out the Indigenous Action Plans, as applicable to FUNASA. (f) The Borrower shall exercise its rights and carry out its obligations under the Salvador Implementation Agreement and the FUNASA Cooperation Agreement, and each of the Subproject Implementation Agreements and Micro-Region Strengthening Agreements, in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the Salvador Implementation Agreement or the FUNASA Cooperation Agreement or any Subproject Implementation Agreement or Micro-Region Strengthening Agreement. (g) Without limitation upon the provisions of paragraph (a) above, the Borrower shall carry out the Project in accordance with: (i) the Performance Indicators; and (ii) in respect of Part C.3 of the Project, if applicable, the Indigenous Peoples Framework. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For The Borrower shall carry out the purposes of Section 9.07 of Project in accordance with an operational manual, satisfactory to the General Conditions and without limitation theretoBank, the Borrower shallsaid manual to include, inter alia: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan procedures for the future operation carrying out, monitoring and evaluation of the ProjectProject (including the procurement, financial and environmental requirements thereof); (b) afford the Bank a reasonable opportunity to exchange views with Environmental Management Actions; (c) the Borrower on said plancriteria for the approval, implementation and monitoring of Subprojects; (d) the criteria for the establishment of Eligible Micro-Regions and for the implementation and monitoring of Parts A.1 and A.2 of the Project; and (ce) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the a model agreement for implementation of Subprojects. In case of any conflict between the Projectterms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation LetterPerformance Indicators, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year not later than twelve months after the Effective Date and yearly thereafter during the implementation period of the Project implementation, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said such report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) (i) review with the Bank, by April 15 of within no more than two months after each year during the implementation of the Project or such later date as the Bank shall requestreports’ preparation, the report reports referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure Section and progress in the efficient completion implementation of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementationIntegrated Development Program; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, PIU with due diligence and efficiency and in conformity with appropriate financial, administrative, legal administrative and technical financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works, and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the The Borrower shall: (a) prepare, open a bank account (the Project Account) in a commercial bank on the basis of guidelines terms and conditions acceptable to the Bank, and furnish Association with an initial deposit equivalent 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 the future operation of the Project$50,000; (b) afford maintain said account during the Bank execution of the Project with a reasonable opportunity minimum balance equivalent to exchange views with the Borrower on said plan$50,000 through semi-annual replenishments; and (c) carry out an in-depth review (use the mid-term review), jointly with the Bank, on the progress achieved in funds of said Project Account exclusively for financing the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, Association and furnish to the Bank, Association on or about February 15 of each year during the implementation of the Project January 15, 1999, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project March 31, 1999, or such later date as the Bank Association shall request, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the Bank’s Association views on the matter. Section 3.05. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementAssociation, carry out the Project in accordance with an operational manual, satisfactory and furnish to the Bank 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 be prepared by ensure the PCU, said manual to include specific rules and procedures for Project implementationcontinued achievement of the Project; and (b) afford the Operational Manual may be amended by Association a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower (a) AISCO declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to the Development Credit Agreement and, to this end, shall carry out Parts D (1) and (2) of the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal engineering and technical agricultural practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for Parts D (1) and (2) of the Project. Section 3.022.02. AISCO shall, by May 15 of each year, prepare and furnish to the Borrower for approval a peasant sector fertilizer procurement schedule setting forth the following: (a) the amount and type of fertilizer to be procured; (b) the schedule on which the fertilizer would be required; and (c) the estimated total foreign exchange required for the procurement of the fertilizer and the sources of such foreign exchange. Section 2.03. AISCO shall, by June 30, 1989: (a) prepare a revised stock management and control operational program to improve control over stocks currently stored in about 750 stores operated by MOA; (b) develop a comprehensive set of operational, management and staff development policies to improve staff efficiency; (c) prepare a comprehensive management information system and an operational plan, including the implementation costs of such plan; (d) carry out a review of the financial structure and requirements of AISCO; and (e) prepare an operational plan to improve the financial control and internal audit procedures of AISCO. Section 2.04. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this the Development Credit Agreement. Section 3.032.05. For AISCO shall carry out the purposes of Section 9.07 obligations set forth in Sections 9.03 through 9.08 of the General Conditions (relating to insurance, use of goods and without limitation theretoservices, the Borrower shall: plans and schedules, records and reports, maintenance and land acquisition, respec- tively) in respect of this Agreement and Parts D (a1) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (62) 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 the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.042.06. Throughout the course of the Project implementation, the Borrower AISCO shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at duly perform all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower Subsidiary Loan Agreement and the Bank and to accomplish the purposes of the Loan; and (ii) except Financing Agreement. Except as the Bank may Association shall otherwise agree, the Borrower AISCO shall not assigntake or concur in any action which would have the effect of amending, amendabrogating, abrogate, suspend, waive, terminate assigning or fail to enforce waiving the UNDP Subsidiary Loan Agreement or the Financing Agreement or any provision thereof. Section 2.07. (a) AISCO shall, at the request of the Association, exchange views with the Association with regard to the progress of Parts D (1) of the Project (in conjunction with AIDB) and Part D (2) of the Project, the performance of its obligations under this Agreement and under the Subsidiary Loan Agreement.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out Parts A, B, D and E of the ProjectProject through MPA, MIA, MOJ and MOF, respectively, and Part C of the Project through the PCUMEC, MOF and MOC, as appropriate, with due diligence and efficiency and in conformity with appropriate financial, administrative, legal administrative and technical financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For The Borrower, through MEC: (a) shall establish, and thereafter maintain, the purposes PCU within MEC with qualified staff in sufficient numbers, and with functions and responsibilities satisfactory to the Association; the PCU shall be headed by a Project Coordinator, under terms of Section 9.07 reference and with experience and qualifications satisfactory to the Association, who shall have the responsibility, inter alia, of ensuring that the coordination of all Project activities is managed by the PCU; and (b) shall maintain RAIMB, throughout the duration of the General Conditions implementation of the Project, under terms of reference and without limitation theretowith members, satisfactory to the Association. Section 3.04. By October 31 in each year, commencing with October 31, 1994, the Borrower shall: (a) prepare, on the basis of guidelines acceptable provide to the Bank, Association for its review and furnish to comments 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 proposed annual public sector reform program for the future operation following year to include, without limitation: undertaken; (i) a statement of objectives to be achieved and of activities to be (ii) detailed investment and operating budgets for such activities; (iii) explicit targets to be achieved in such year in respect of proposed actions and reforms; (iv) an implementation schedule including monitoring targets to assess progress achieved throughout the Projectyear; (v) training and other technical assistance plans; and (vi) a procurement program detailing goods (including all equipment) and services to be procured; (b) afford the Bank Association a reasonable opportunity to exchange views with review and comment on the Borrower on said plan; andproposed annual public sector reform program; (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to timeincorporate, in a manner satisfactory to the BankAssociation, the Association’s comments on the proposed program; and (d) adopt a final annual public sector reform program satisfactory to facilitate continued Project implementationthe Association by no later than the first working day of each calendar year of the Project. Section 3.05. In case each quarter ending on March 31, June 30, and September 30, or on such other dates and for such other periods as the Association may otherwise agree, the PCU shall prepare a progress report, comparing actual and forecast progress and evaluating such progress against project monitoring indicators agreed with the Association including, inter alia, standard agreed performance indicators monitoring the physical, financial and operational progress of any conflict between the terms individual subcomponents and aggregating performance of all components of the Operational Manual Project; and those shall provide such progress report to the Association no later than thirty days after each such quarter; and shall prepare an annual progress report including information concerning the quarter ending December 31 in each year, and shall provide such annual progress report to the Association by no later than March 1 in the following year. Section 3.06. Without limitation to Section 3.01 of this Agreement, the terms in each fiscal year throughout implementation of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement shall make adequate allocation in its annual budget to provide, promptly as needed, the funds, facilities, services and other resources required for the carrying out of retraining under Part A of the Project, and for the PCU. Section 3.07. (a) By no later than October 31 in each year, commencing on October 31, 1994, the Borrower shall carry out, jointly with the United Nations Development Programme Association, a review (UNDPbeing, in the case of 1996, the midterm review,) of the progress made in carrying out the Project and the Program. This review shall cover, among other things: (i) the performance of MEC, MIA, MOC, MOF, MOJ and MPA in implementing the Project; (ii) the effectiveness of the PCU; (iii) the availability of the Borrower’s counterpart funding and the adequacy of its budgetary allocations for the Project; (iv) the results of the studies undertaken under terms and conditions satisfactory the Project; (v) the effectiveness of training provided under the Project; and (vi) the degree of achievement of the Project’s objectives in light of the monitoring indicators agreed upon with the Association. (b) The Borrower shall transmit to the Bank Association, at least thirty days prior to each such review described in paragraph (a) above, a report in such scope and detail as the UNDP Agreement)Association shall request, includingdescribing, inter alia, UNDP’s obligation to maintain, on behalf the status of the Borrower, records items listed in such paragraph and accounts adequate to reflect the operations, resources of Project and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this AgreementProgram implementation generally. (ic) The Borrower shall exercise its rights and carry out its obligations under Based on the UNDP agreement review undertaken in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and accordance with (iia) except as the Bank may otherwise agreeabove, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail promptly prepare an action plan acceptable to enforce the UNDP Agreement or any provision thereofAssociation for the further implementation of the Project and the Program and shall thereafter implement such action plan in a manner satisfactory to the Association.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCUExecuting Agencies as set forth in the Annex to Schedule 2 to this Agreement, with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal technical and technical management practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For The Borrower shall ensure that the purposes PIU is at all times headed by a coordinator with qualifications, terms of Section 9.07 reference and experience satisfactory to the Bank, who shall be assisted by qualified staff in adequate numbers and by consultants, acceptable to the Bank, advising on the following matters: procure- ment, disbursements, privatization, financial sector reform, and general project supervision. (a) The Borrower shall: (i) carry out all studies included in the Project under terms of reference satisfactory to the Bank which, when applicable, shall include specific programs or plans of action to meet the objectives of the General Conditions Project; (ii) promptly after the completion of each study, furnish to the Bank copy of its findings and without limitation theretorecommendations including such programs or plans of action; and (iii) afford the Bank a reasonable opportunity to comment on such findings, recommendations and programs or plans of action. (b) The Borrower undertakes to carry out the programs and plans of action referred to in paragraph (a) of this Section as required to meet the objectives of the Project as set forth in Schedule 2 to this Agreement. Section 3.05. Regarding the training programs to be carried out under the Project, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after for approval the Closing Date or content of each of such later date programs as may be agreed well as the schedule for this purpose between the Borrower and the Bank, a plan for the future operation of the Projectits implementation; (b) afford select the Bank a reasonable opportunity beneficiaries of such training programs in accordance with criteria satisfactory to the Bank; (c) not later than September 30 of each year exchange views with the Borrower Bank on said planthe training programs to be carried out in the following calendar year; and (cd) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory furnish to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring such scope and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date detail as the Bank shall reasonably request, on the report referred to in paragraph (b) results of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project each training program and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and benefits to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailderived therefrom. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives objective of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical education 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. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For the purposes of Section 9.07 The Borrower shall maintain until completion of the General Conditions and without limitation thereto, Project the Borrower shall: (a) prepare, on the basis PCU with terms of guidelines acceptable reference satisfactory to the BankAssociation, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may which shall be agreed for this purpose between the Borrower and the Bank, a plan responsible for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the overall implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with benchmarks and indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives objective thereof; (b) prepare, under terms of reference satisfactory to the BankAssociation, and furnish to the BankAssociation, on or about February 15 of each year during the implementation of the Project by July 31, 1998 (i) a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives objective thereof during the period following such date; and (ii) a specific report detailing the application by the Borrower of (A) the Ready Reckoner Formula in the recruitment of teachers in accordance with paragraph 4 of Schedule 4 to this Agreement; and (B) other implementation benchmarks agreed with the Association including, inter alia, whether the Cadre Committee is operating in a manner satisfactory to the Association, and the teacher transfer policy established in 1995 is being implemented, and whether the allocation of funds in each province for quality inputs and school maintenance has reached the targets specified in paragraph 2 of Schedule 4 to this Agreement; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project September 30, 1998 or such later date as the Bank Association shall request, the report reports referred to in paragraph (b) of this Section, and, and thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives objective thereof, based on the conclusions and recommendations of the said report reports and the BankAssociation’s views on the matter. Section 3.05. For the purposes of Section 9.07 of the General Conditions, and without limitation thereto, the Borrower shall: (a) The Borrower shall, without limitation prepare and furnish to the other provisions 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, of this Agreementsuch scope and in such detail as the Association shall reasonably request, carry out for the Project in accordance with an operational manual, satisfactory to future operation of the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementationProject; and (b) afford the Operational Manual may be amended by Association a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, Project through the PCU, XXXX with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeenvironmental, legal and technical practices, social practices and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, Bank and furnish to the Bank, on or about February 15 of each year during the implementation of the Project March 1, 2006, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project May 1, 2006, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) Section 3.04. The Borrower shallshall maintain PCU until completion of the Project with staff, without limitation resources and terms of reference satisfactory to the other provisions of this AgreementBank. Section 3.05. The Borrower shall maintain the Operational Manual, carry out the Project including SIG Guidelines, in accordance with an operational manual, form and content satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogateabrogate or waive the Operational Manual without obtaining the prior approval from the Bank. The Operational Manual shall cover, suspendinter alia, waivethe following matters: (a) eligibility criteria for SIGs; (b) the principles and procedures to be followed for the approval of SIGs; (c) procurement procedures to be followed for the procurement of goods, terminate works and consultants’ services required for the implementation of school development plans and to be financed out of the proceeds of the Loan and the Dutch Grant, including prior review requirements for the first ten (10) school procurement plans; (d) regional allocation of the Grant funds; and (e) the indicators to be utilized by PCU in monitoring the progress of the Project. Section 3.06. 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 Bank, and furnish to the Bank not later than six (6) months after the Closing Date or fail such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; and afford the Bank a reasonable opportunity to enforce exchange views with the UNDP Agreement or any provision thereofBorrower on said plan.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, /EFAP with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeengineering, legal environmental, and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services works required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, Association and furnish to the Bank 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 BankAssociation, a plan for the future operation of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, Association and furnish to the Bank, Association on or about February 15 of each year during the implementation of the Project October 31, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project November 30, or such later date as the Bank Association shall request, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the BankAssociation’s views on the matter. Section 3.05. The Borrower shall maintain the PCU/EFAP with powers, functions and staffing satisfactory to the Association. Section 3.06. The Borrower shall: (a) The Borrower shallby December 31, without limitation to 1998, prepare a plan for the other provisions monitoring of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to possible adverse effects on the Bank and environment of the works to be prepared by carried out under the PCU, said manual to include specific rules and procedures for Project implementationProject; (b) identify possibly required mitigation measures; and (bc) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory xxxxxxx proposed mitigation measures to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual Association for review and those of this Agreement, the terms of this Agreement shall prevailcomment. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, MMG with due diligence and efficiency and in conformity with appropriate admini- strative, financial, administrativeengineering, legal mining and technical 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 Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For the purposes purpose 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 BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for the future operation of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout Without limitation upon the course provisions of the Project implementationSection 3.01 of this Agreement, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) open and maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the a Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, Account in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under commercial bank on terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement.Association; (ib) The Borrower shall exercise its rights and carry out its obligations under deposit into the UNDP agreement in such a manner as Project Account an initial amount equi- valent to protect $300,000; (c) thereafter, deposit into the interest Project Account by the first day of each calendar year, an amount equivalent to the Borrower and the Bank and to accomplish budgetary allocation appropriated for the purposes of the LoanProject in accordance with the provisions of paragraph 3 (b) of Schedule 4 to this Agreement; and (iid) except as ensure that funds deposited into the Bank may otherwise agree, Project Account shall be used only for the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce purposes of defraying the UNDP Agreement or any provision thereofcost of expenditures incurred in the execution of the Project.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCUMEP, with due diligence and efficiency and in conformity with appropriate financialeducational, administrative, legal engineering, financial and technical economic practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation to the provisions of paragraph (a) hereof, the Borrower shall: (i) maintain in Banco Central a separate account, in Colones, in the name of MEP (the Project Account), for the exclusive purpose of making payments out of such account to meet expenditures incurred in respect of the Project; and (ii) replenish the Project Account, every three-month period, with an amount in Colones sufficient, in the opinion of the Bank, to finance the counterpart expenditures for the Project for each following six-month period, out of the Borrower’s own resources other than the Loan or the IDB Loan. Section 3.02. Except as the Bank shall otherwise agreeThe Borrower, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation theretothrough MEP, the Borrower shall: (a) prepare, on the basis of guidelines acceptable furnish to the Bank, and furnish to the Bank by not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower June 30 in each year, starting in 1993, a report, in form and substance satisfactory to the Bank, a plan for the future operation containing an assessment of the Projectprogress in the carrying out of the Project in the preceding fiscal year; (b) afford furnish to the Bank a reasonable opportunity to exchange views with Bank, by August 31 in each year, starting in 1992, the Borrower on said plan; andproposed Annual Work Plan for the following fiscal year, for the Bank’s review and comment; (c) carry out an in-depth review (the mid-term review), jointly by September 30 in each year, starting in 1992, together with the Bank, on such proposed Annual Work Plan and the progress in the carrying out of the Project, in accordance with terms of reference satisfactory to the Bank, such review to include, inter alia: (i) an analysis of the Borrower’s performance and budget allocation in respect of the Project in the previous year; and (ii) an analysis of the progress achieved in the implementation decentralization of the activities carried out by MEP; and (d) immediately thereafter, revise such Annual Work Plan, taking into account the Bank’s comments thereon. Section 3.03. The Borrower shall, in respect of houses to be constructed under Part A.6 of the Project, take all action necessary to ensure that such houses shall be occupied by either: (i) teachers holding qualification certificates or university teaching degrees (not less than diplomado), satisfactory to the Bank; or (ii) other teachers, provided, however, that such other teachers, prior to occupying any such house, shall have entered into a formal agreement with the Borrower, through MEP, assuming the obligation to undertake certification training course, preferably outside the teachers working hours, such formal agreement to be satisfactory to the Bank. Section 3.04. Throughout the course The Borrower shall, in respect of the Project implementationland for each construction site required for the carrying out of Parts A.5, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation A.6 and A.7 of the Project, headed by a Project coordinator (provide to the Project Coordinator) and assisted by staff in adequate numbersBank evidence, all with qualifications and experience satisfactory to the Bank with functions and responsibilities Bank, as set forth in part of the Operational ManualAnnual Work Plan, that it holds a legal title to such land or that it has a right to build thereon. Section 3.05. The Borrower shall: : (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basisby not later than August 31 in each year, starting in accordance with the indicators set forth in the Implementation Letter1992, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during Bank a proposed plan for the implementation of the Project a report integrating the results of the monitoring teacher certification and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services upgrading programs under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures Part A.3 of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.;

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, through the PCUOVPM, with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical practices, and shall provide, promptly as needed, the funds, facilities, services 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, through OVPM, in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works, and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. Without limitation to its obligations under Section 3.01 of this Agreement, the Borrower shall: (a) open and maintain an account (the Project Account) in Cape Verde Escudo in BCV on terms and conditions satisfactory to the Association; (b) promptly thereafter, deposit the Initial Deposit into such account to finance the Borrower’s contribution to the Project; (c) deposit into the Project Account until the completion of the Project, such amounts as shall be required to replenish in a timely manner the Project Account in an amount equal to at least the expected expenditures of the following quarter; and (d) use the Project Account funds 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 BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for designed to ensure the future operation sustainability of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financialadmin- istrative, administrativeagricultural, legal engineering, environmental and technical financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement pro- curement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this AgreementAgree- ment. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation theretoThe Borrower shall enter into, or cause to be entered into, the Borrower shallfollowing financing arrangements which shall be in form and substance satisfactory to the Bank: (a) prepare, on the basis of guidelines acceptable to the Bank, Financing Agreements between MOF 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, each PTP that receives a plan for the future operation portion of the ProjectLoan as equity; (b) afford the Bank a reasonable opportunity Subsidiary Loan Agreements between MOF, BBD and BEII, respectively, with respect to exchange views with the Borrower on said planLoan funds on-lent to BBD and BEII; and (c) carry out an inCredit Agreements between BBD or BEII, as the case may be, and the relevant PTP with respect to all funds for a specific site, if relevant, on-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Projectlent to such PTP. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all timesprepare, during the implementation of the Projector cause to be prepared, headed by a June 30, 1989, for each Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience PTP an action plan satisfactory to the Bank with functions Bank, to improve financial and responsibilities as set forth in the Operational Manualother aspects of such PTP. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate , by December 31, 1990, furnish, or cause to enable it to monitor and evaluate on an ongoing basisbe furnished, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bankan action plan, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued bring existing PTP factories into compliance with the Borrower’s effluent control regulations. Section 3.06. The Borrower shall, for each Project implementation. In case of any conflict between PTP, select and train the terms relevant factory managers, assistant factory managers and maintenance engineers, and shall appoint such persons at least six months prior to the estimated commissioning date of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailrelevant factory. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out Parts A and B of the Project, Project through the PCUMOA, and Part C thereof through the MOA, MOEB and other agencies of the Borrower, all with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativetechnical, legal engineering, and technical 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 Bank shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project;; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project September 30, 1999, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project October 31, 1999, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. Section 3.05. The Borrower shall: (a) The Borrower shallmaintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner indicators satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the Borrower’s national investment program in the irrigation sector; (b) prepare, under terms of reference satisfactory to the Operational Manual Bank, and those furnish to the Bank, on or about September 30, 1997, September 30, 1998, September 30, 1999, September 30, 2000, September 30, 2001, and September 30, 2002, respectively, an annual report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this AgreementSection during the period preceding the date of said report, and setting out the measures deemed appropriate to ensure that the Borrower’s investments in the irrigation sector are appropriate and consistent with the objectives of the Project and, specifically, the terms Borrower’s obligation under Section 3.01 (a) of this Agreement shall prevail. (a) For to make available the purposes of providing assistance to the Borrower in the procurement of goods funds and services under other resources required for the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (iic) except review with the Bank, by October 31, 1997, October 31, 1998, October 31, 1999, October 31, 2000, October 31, 2001, and October 31, 2002, respectively, or such later date as the Bank may otherwise agreeshall request, the Borrower shall not assignannual reports referred to in paragraph (b) of this Section, amendand, abrogatethereafter, suspendcontinue its implementation of the national investment program in the irrigation sector, waive, terminate or fail taking into account the Bank’s views on the matter and the Borrower’s obligations under Section 3.01 (a) of this Agreement to enforce make available the UNDP Agreement or any provision thereoffunds and other resources required for the Project.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal health and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the ProjectProject and the Program; and (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. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for designed to ensure the future operation continued achievement of the objectives of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout Without limitation upon the course provisions of Section 3.01 of this Agreement, the Borrower shall: (a) open and maintain a Project Account in a commercial bank on terms and conditions satisfactory to the Association; (b) deposit into the Project Account an initial amount equivalent to $200,000; (c) thereafter, replenish the Project Account through quarterly deposits, March 15, June 15, September 15 and December 15 of each year until the Closing Date, its counterpart funds required pursuant to the annual work program for the respective year, established in accordance with the procedures set fort in paragraph 5 of Schedule 4 to this Agreement; and (d) ensure that funds deposited into the Project Account shall be used only for the purposes of defraying the cost of expenditures incurred in the execution of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation which are not financed out of the Project, headed by a Project coordinator (proceeds of the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational ManualCredit. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate by May 30, 2000, carry out the Beneficiaries Assessment referred to enable it to monitor and evaluate on an ongoing basis, under Part E (2) of the Project in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAssociation; (b) promptly thereafter, and furnish submit to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating Association the results of the monitoring said Beneficiaries’ Assessment for its review and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; andcomments; (c) review with finalize the Bank, Beneficiaries Assessment by April 15 of each year during taking duly into account the implementation comments made by the Association; and promptly implement the recommendations of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matterBeneficiaries Assessment. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives objective of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency in accordance with the MOU and in conformity with appropriate administrative, financial, administrative, legal trade and technical transportation practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of In implementing the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in satisfactory to the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, Association and furnish to the BankAssociation on December 31 in each year, on or about February 15 of each year during the implementation of the Project commencing December 31, 2001, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project including, inter alia, the actions taken on the recommendations made by NTTFC concerning modifications/improvements to specific trade and transport facilitation procedures, practices, documentation rules and regulations during the twelve-month period preceding the date of said report and setting out report; (c) in each of the reports referred to in paragraph (b) above, also recommend the measures recommended to ensure the efficient carrying out completion of the Project and the achievement of the objectives thereof during thereof, including, for the period following such datesucceeding calendar year: (i) an annual work plan; and (ii) a budget proposal for the carrying out of the Project; and (cd) review with the Bank, Association by April 15 February 28 of each year during the implementation execution of the Project Project, or such later date as the Bank Association shall requestagree, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the BankAssociation’s views on the matter. Section 3.04. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementAssociation, carry out the Project in accordance with an operational manual, satisfactory and furnish to the Bank Association 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 Association, a plan designed to be prepared by ensure the PCU, said manual to include specific rules and procedures for Project implementationcontinued achievement of the Project’s objectives; and (b) afford the Operational Manual may be amended by Association a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal administrative and technical financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, Association and furnish to the Bank 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 BankAssociation, a plan for designed to ensure the future operation sustainability of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, Association and furnish to the Bank, Association on or about February 15 April 30 and October 31 of each year during the implementation of the Project year, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 May 31 and November 30 of each year during the implementation of the Project year, or such later date as the Bank Association shall request, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the BankAssociation’s views on the matter. Section 3.05. The Borrower shall: (a) The Borrower shall, without limitation to maintain the other provisions of this Agreement, carry out the Project in accordance Ad Hoc Committee with an operational manual, terms and conditions satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementationAssociation; and (b) maintain the Operational Manual may be amended by the Borrower from time to timePIU with adequate staffing, in a manner powers and functions satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailAssociation. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Following completion of construction of the facilities under Parts A and B under the Project, the Borrower shall, in accordance with the terms and conditions of the Transfer Agreement, transfer said facilities to EP(S) for their operation and maintenance. Section 3.03. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.033.04. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the The Borrower shall: (a) prepareshall carry out, on the basis of guidelines acceptable terms of reference and a timetable satisfactory to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a an action plan for the future operation rehabilitation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved power plants in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational ManualSerbia. Section 3.05. The Borrower shall: (a) maintain policies complete a study of load characteristics of end-users and, by January 31, 1992, furnish to the Bank for review and procedures adequate to enable it to monitor comment the findings and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out recommendations of the Project and the achievement of the objectives thereof;said study; and (b) prepareon the basis of terms of reference satisfactory to the Bank and the results of the study referred to in paragraph (a) of this Section, promptly initiate the cost of service study included in Part D (3) of the Project, and, promptly upon the completion of said study, furnish to the Bank for review and comment, the findings and recommendations thereof. Section 3.06. The Borrower shall: (a) carry out, on the basis of terms of reference and a timetable satisfactory to the Bank, the study included in Part D (4) of the Project on the long-term mining development plan for the power plant at Kolubara; and (b) prior to initiating any works for the expansion of the facilities constructed under the Project or the development or expansion of any other mines to supply the Kolubara B thermal power plant, furnish to the Bank for review and comment the findings and recommendations of said study. Section 3.07. The Borrower shall carry out, on the basis of terms of reference and a timetable satisfactory to the Bank, the long-term program of regional air quality monitoring included in Part D (5) of the Project and, thereafter, take all measures necessary to ensure compliance with emission quality standards of Serbia. Section 3.08. The Borrower shall: (a) by June 30, 1992, carry out, on the basis of terms of reference satisfactory to the Bank, the study included in Part D (2) of the Project to identify the measures necessary to improve its accounting and financial management system and furnish to the Bank, on or about February 15 of each year during Bank for review and comment the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions findings and recommendations of said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementationstudy; and (b) the Operational Manual may be amended by the Borrower from time to timethereafter, put into effect, in accordance with a manner timetable satisfactory to the Bank, the recommendations agreed with the Bank for improving its accounting and financial management system. Section 3.09. The Borrower shall, by October 31 of each year, beginning with its fiscal year ending on December 31, 1992, furnish to facilitate continued Project implementation. In case of any conflict between the terms Bank for review and comment its proposed investment program, together with the associated financing plan, for each of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailBorrower’s 1992 through 1996 fiscal years. Section 3.10. The Borrower shall: (a) For beginning with the purposes fiscal year commencing on January 1, 1993, furnish to the Bank for review and comment, by November 30 of providing assistance each year, the proposed agreement with EP(S) for the allocation to the Borrower in the procurement and EP(S) of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of revenues received by the Borrower and the Bank and to accomplish the purposes EP(S) from their respective operations, for each of the Loanits 1992 through 1996 fiscal years; and (iib) except as thereafter, enter into said proposed agreement for the respective year, taking into consideration the Bank’s comments thereon. Section 3.11. The Borrower shall, together with EP(S) in accordance with the provisions of Section 2.02 of the EP(S) Agreement: (a) prepare, on the basis of the on-going study on under- ground mines in Serbia being carried out by the Belgrade Mining Institute and the Belgrade Institute for Economic Efficiency, an action program for restructuring said underground mines; and (b) by March 31, 1992, furnish to the Bank may otherwise agreefor review and comment the findings and recommendations of said study, together with the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereofproposed action program.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrativeengineering, legal environmental and technical public utility practices, and shall provide, or cause to be provided, 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 Bank and the Borrower shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the The Borrower shall: : (a) prepare, on the basis following an exchange of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 by October 31 in each year, a CPP for the following fiscal year of each year the Borrower, which shall set forth, in a manner consistent with the Borrower’s obligations under this Agreement: (i) the generation and transmission system expansion targets for the Borrower, including the components of the capital expenditures program to be carried out during the implementation concerned fiscal year and the investments under such components to be financed from the proceeds of the Project Loan; (ii) the financial targets for the Borrower, including a report integrating financial projection showing whether the results of the monitoring and evaluation activities performed pursuant to paragraph Borrower would comply with its obligations under Section 5.03 (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report Agreement; and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (biii) the Operational Manual may be amended by the Borrower from time to timeBorrower’s levels of services, in a manner satisfactory to the Bankborrowing needs, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual financing plan and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods tariff levels and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.structures;

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, DOSFEA with due diligence and efficiency and in conformity with appropriate financial, administrative, legal administrative and technical capacity building 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. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for designed to ensure the future operation sustainability of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout Without limitation upon the course provisions of Section 3.01 of the Project implementationAgreement, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies open and procedures adequate to enable it to monitor and evaluate on thereafter maintain, until completion of the Project, an ongoing basis, in accordance with the indicators set forth account in the Implementation Letter, the carrying out Central Bank of the Project Gambia on terms and conditions acceptable to the achievement of the objectives thereofAssociation; (b) prepare, under terms of reference satisfactory deposit into the Project Account an initial amount 0f $20,000 equivalent to the Bank, and furnish Borrower’s estimated counterpart contribution to the Bank, on or about February 15 of each year during the implementation costs of the Project a report integrating for the results first four months of the monitoring Project Implementation, and evaluation activities performed pursuant to paragraph (a) of this Sectionthereafter at quarterly intervals, on the progress achieved in the carrying out of deposit into the Project during Account the period preceding estimated amount required for expenditures for the date of said report and setting out following quarter as agreed by the measures recommended to ensure the efficient carrying out of the Project Borrower and the achievement of the objectives thereof during the period following such dateAssociation in each annual work plan; and (c) review with ensure that the Bank, by April 15 of each year during the implementation of amounts deposited in the Project or such later date as the Bank shall request, the report referred to Account in paragraph accordance with paragraphs (a) and (b) of this Section, and, thereafter, take all measures required to ensure Section will be used exclusively for the efficient completion of Xxxxxxxx’s counterpart expenditures under the Project and the achievement not otherwise financed out of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms proceeds of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailCredit. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its Beneficiary and the Recipient declare their commitment to the objectives objective of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, the Recipient shall carry out Part E.2 of the Project, through and shall enter into the PCUInter-Institutional Agreement to require the following: IDEAM to carry out Parts A, B and E.1 of the Project; INVEMAR to carry out Parts C.1 and C.4 of the Project; CORALINA to carry out Parts C.2, C.3 and C.5 of the Project; and INS to carry out Part D of the Project; all in accordance with the terms of the Operational Manual, with due diligence and efficiency and in conformity with appropriate administrative, social, financial, administrative, legal public utility and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (a) Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For (b) The Recipient shall update the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than six (6) 12 months after the Closing Date or such later date as may be agreed of the preceding Procurement Plan, for this purpose between the Borrower Bank’s approval. Section 3.03. The Recipient shall: (a) enter into one written agreement with all the Executing Agencies, on terms and conditions satisfactory to the Bank, a plan setting forth respective responsibilities for the future operation implementation of those Parts of the Project in which each of the Executing Agencies participates; said arrangement to include, inter alia, the obligation of each Executing Agency to, with respect to its corresponding Part of the Project: (i) provide the necessary facilities, services and other resources to supplement those provided through the Recipient; (ii) assist the Recipient in the implementation of the corresponding Annual Operational Plan and in achieving Recipient’s compliance with the terms of this Agreement; and (iii) follow the provisions of the Operational Manual; (b) afford exercise its rights and comply with its obligations under the Inter-Institutional Agreement throughout Project implementation in such a manner as to protect its interests, the interests of the Beneficiary and the Bank, and to accomplish the objective and purposes of the GEF Trust Fund Grant, and except as the Bank a reasonable opportunity may otherwise agree, the Recipient shall not assign, amend, abrogate, suspend, waive, terminate or fail to exchange views with enforce the Borrower on said planInter-Institutional Agreement or any provision thereof; and (c) carry out an in-depth review (In case of any conflict among the mid-term review), jointly with the Bank, on the progress achieved in the implementation terms of the ProjectInter-Institutional Agreement and those of this Agreement, the terms of this Agreement shall prevail. Section 3.04. Throughout the course of the At all times during Project implementation, the Borrower Recipient shall maintain require IDEAM (pursuant to the Inter-Institutional Agreement) to maintain: (a) a team, responsible for overall Project coordination unit within SB. The Borrower shall ensure that planning, coordination, implementation, supervision, technical monitoring and evaluation, and with a structure, functions and responsibilities satisfactory to the PCU is at all timesBank, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by with staff in adequate numbersnumbers and with adequate qualifications, all with qualifications and experience operating under terms of reference satisfactory to the Bank Bank; and (b) a committee, with structure and functions satisfactory to the Bank, co-chaired by representatives of the Beneficiary’s Ministries of the Environment, Social Protection, and responsibilities as set forth Energy, the Executing Agencies and other public sector representatives, for the overall supervision and guidance of Project execution, all in accordance with the terms of the Operational Manual. Section 3.05. Without limitation upon the provisions of Section 3.01 of this Agreement, the Recipient shall issue an operational manual satisfactory to the Bank, containing, inter alia, specific provisions on detailed arrangements for the carrying out of the Project, including: (a) the procurement, financial management and disbursement requirements thereof; (b) a model to be used in the preparation of FMRs; (c) the Inter-Institutional Agreement; (d) a model to be used in the preparation of the Annual Operational Plans; the Performance Indicators; and the Environmental Assessment. In case of any conflict among the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.06. The Borrower shallRecipient shall require IDEAM (pursuant to the Inter-Institutional Agreement) to: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation LetterPerformance Indicators, the carrying out of the Project and the achievement of the objectives objective thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the BankBank (and to Acción Social), on or about February 15 of each not later than six months after the Effective Date and every year thereafter during the implementation period of the Project implementation, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives objective thereof during the period following such date; and; (c) review with the Bank, by April 15 of each year during the implementation of the Project shortly after such reports’ preparation or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives objective thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matter; and (d) carry out an in-depth Project review (the mid-term review), jointly with the Bank by not later than June 30, 2009, of such scope as set forth in the Operational Manual, on the progress achieved in the implementation of the Project. Section 3.07. (a) The Borrower Recipient, with the assistance of, and in agreement with the Executing Agencies shall, without limitation to the other provisions : not later than November 30 of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for each year of Project implementation; and (b) , starting on the Operational Manual may be amended by the Borrower from time to timeEffective Date, in a manner satisfactory furnish to the Bank, for its review, a Project operational plan for the following calendar year, such plan to facilitate continued Project implementation. In case of any conflict between specify: (A) the terms activities to be financed out of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf proceeds of the Borrower, records GEF Trust Fund Grant during the respective calendar year; (B) the implementation schedule; and accounts adequate to reflect (C) the operations, resources required financial and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loanhuman resources; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, acting through MINVU in respect of Part A and Parts B.1 (b), B.2, B.4, B.5 and, when applicable, Part B.3 of the PCUProject, and acting through its Superintendencia de Bancos e Instituciones Financieras in respect of Parts B.1 (a) and, when applicable, Part B.3 of the Project, all with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal land development and technical housing practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. The Borrower shall allocate the funds to be provided to the SERVIUs under XXXXX’s Programs in a manner, acceptable to the Bank, which takes into account the collection efficiency of each SERVIU in respect of the housing loan portfolio of such SERVIU. (a) The Borrower agrees that it shall throughout the execution of the Project take all necessary action, including provision of all necessary facilities, staff and other resources to permit the taking of prompt judicial action in respect of all debtors in default of their loans to the SERVIUs under the housing programs of MINVU and all debtors in default of their complementary loans provided by BEC or other bank or banks, as the case may be, in connection with said housing programs. (b) Without prejudice to the generality of Section 3.03 (a) above, the Borrower agrees that it shall throughout the execution of the Project maintain, through contractual provisions and otherwise, the right to initiate foreclosure proceedings in respect of any loan secured by a mortgage, granted by MINVU to a Beneficiary under any of MINVU’s Programs, as soon as any payment of principal, interest or other charges on such loan shall have been ninety (90) days in arrears. Section 3.04. The Borrower shall not commence, or allow to be commenced, any process involving a general renegotiation of loans made under MINVU’s Programs, or of payment incentives in respect of such loans, except as the Bank may otherwise agree by written notice to the Borrower. (a) The Borrower agrees that the collection efficiency targets of MINVU and the SERVIUs shall be the following: (i) the total number of Loan Program Beneficiaries who are in arrears for less than one hundred twenty (120) days on their Loan Program Payments shall constitute: (A) at least 80% of the total number of Loan Program Beneficiaries in the year 1989 and 1990 and in each quarter of such years, (B) at least 85% of the total number of Loan Program Beneficiaries in the year 1991 and in each quarter of such year, and (C) at least 90% of the total number of Loan Program Beneficiaries in the year 1992 and in each quarter of such year and in each year and quarter thereafter; and (ii) in respect of Loan Program Awards made through each SERVIU, the total number of Loan Program Beneficiaries of the SERVIU who are in arrears for less than one hundred twenty (120) days on their Loan Program Payments shall constitute: (A) at least 70% of the total number of Loan Program Beneficiaries of the SERVIU in the year 1989 and 1990 and in each quarter of such years, (B) at least 75% of the total number of Loan Program Beneficiaries of the SERVIU in the year 1991 and in each quarter of such year, and (C) at least 80% of the total number of Loan Program Beneficiaries of the SERVIU in the year 1992 and in each quarter of such year and in each year and quarter thereafter. (b) Not later than each April 30, July 31, October 31 and January 31, the Borrower shall provide to the Bank information, satisfactory to the Bank, concerning (i) the Borrower’s compliance with the requirements established for MINVU and each SERVIU in the foregoing paragraph (a) in respect of the quarter ending March 31, June 30, September 30 and December 31, respectively, and (ii) all investments made by the Borrower under MINVU’s Programs during such quarter, specifying the investments made by MINVU and each SERVIU in respect of each of MINVU’s Programs. (c) Not later than January 31 in each year, the Borrower shall provide to the Bank information, satisfactory to the Bank, concerning (i) the Borrower’s compliance with the requirements established for MINVU and each SERVIU in paragraph (a) above in respect of the immediately preceding year; and (ii) all investments made by the Borrower under MINVU’s Programs during such preceding year, specifying the investments made by MINVU and each SERVIU in respect of each of MINVU’s Programs. (d) Without limitation to any provision of this Agreement, the Borrower shall, in the event that any of the information referred to in paragraphs (b) and (c) above shows that the Borrower has not met the requirements established for MINVU and each SERVIU in paragraph (a) above in respect of the year or quarter covered by such information, take all necessary measures, satisfactory to the Bank, in order to meet such requirements for each of the following years or quarters, as the case may be. Section 3.06. The Borrower shall make available to MINVU at least 90% of all revenues arising from payments from recipients of financial assistance under all housing programs of MINVU, including all debt service payments and other payments by Beneficiaries under MINVU’s Programs. All revenues made available to MINVU pursuant to the foregoing sentence shall be used for MINVU’s Programs or other housing investments acceptable to the Bank. Section 3.07. Not later than September 30 of each year prior to completion of the Project, the Borrower shall provide to the Bank for the Bank’s review and comment, the proposed housing investment program of MINVU, including investments under MINVU’s Programs, for the following calendar year. The Borrower agrees that its annual housing investment program for MINVU for each year during the execution of the Project shall be satisfactory to the Bank. Section 3.08. The Borrower shall take all action necessary to ensure that its total expenditures for housing investments, including, without limitation, expenditures financed from the proceeds of the Loan, shall not exceed the equivalent of two hundred fifty million dollars ($250,000,000) during any calendar year until the completion of the Project. Section 3.09. The Borrower shall take the appropriate governmental action, satisfactory to the Bank, to enable MINVU’s Upgrading Program to become effective starting not later than November 1, 1989. Section 3.10. The Borrower shall carry out the Housing Subsidy Action Plan set forth in Schedule 6 to this Agreement. (a) The Borrower shall by means of its agreements with BEC, dated May 2, 1988 and May 18, 1987, (herein referred to as the "BEC Agreements") or by means of arrangements, satisfactory to the Bank, with one or more other banks, ensure until the completion of the Project the full availability of mortgage credits to qualifying Beneficiaries under MINVU’s Unified Subsidy Program and MINVU’s Public/Private Partnership Program. (b) The Borrower shall use its best efforts to amend the BEC Agreements or to enter into an agreement with one or more other banks, concerning the granting by BEC or such banks, as the case may be, of mortgage credits to the Beneficiaries of MINVU’s Basic Housing Program (other than Level 1 of said Program). So long as the Borrower has not entered into such amendment or such agreement and to the extent that such amendment or agreement does not ensure the full availability of the respective mortgage credits to qualifying Beneficiaries, the Borrower through MINVU shall grant such credits to qualifying Beneficiaries. Section 3.12. Loans made to the Beneficiaries under XXXXX’s Programs during the execution of the Project shall be indexed using a method acceptable to the Bank based on either (i) a U.F. adjustment system, in which the loan shall be denominated in U.F. and all payments of interest, principal and other charges on the loan shall be calculated on the outstanding principal expressed in U.F. or (ii) such other system or systems which the Bank has accepted by written notice to the Borrower prior to the implementation thereof. (a) For purposes of carrying out the studies under Part B.1 (a) of the Project, the Borrower shall establish by June 30, 1989 an advisory committee acceptable to the Bank (hereinafter referred to as the "Working Group"). The Borrower shall cause its Superintendencia de Bancos e Instituciones Financieras to coordinate the activities of the Working Group. (b) The Working Group shall have functions and responsibilities satisfactory to the Bank, which shall include the analysis of potential changes and developments of the mortgage market of the Borrower within the context of the Borrower’s overall financial market development and under terms of reference satisfactory to the Bank. The Working Group shall from time to time, upon the request of the Bank, provide progress reports of its work to the Bank. A report of its findings and recommendations shall be due not later than June 30, 1990. (c) The Borrower shall afford the Bank a reasonable opportunity to comment on the findings and recommendations of the Working Group, including those referred to in paragraph (b) above, and shall, to the extent appropriate to meet the objectives of the Project, and taking into account the Bank’s comment thereon, prepare programs or plans of action to carry out such recommendations. The Borrower undertakes to carry out such programs or plans of action in a manner which will enable the meeting of the objectives of the Project. The Borrower through its Superintendencia de Bancos e Instituciones Financieras shall at the Bank’s request furnish to the Bank reports on the implementation of such programs and plans of action. Section 3.14. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, Recipient shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeeducational, legal computer and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the purposes of Section 9.07 operations, resources and expenditures in respect of the General Conditions and without limitation thereto, Project of the Borrower departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) prepareof this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator 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. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation statements of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementationexpenditure, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower Recipient shall: (ai) maintain policies and procedures adequate or cause to enable it to monitor and evaluate on an ongoing basisbe maintained, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof;paragraph (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on records and accounts reflecting such expenditures; (ii) retain, until at least one year after the progress achieved Administrator has received the audit for the fiscal year in which the carrying out of last withdrawal from the Project during Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the period preceding the date of said report and setting out the measures recommended Administrator’s representatives to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following examine such daterecords; and (civ) review with ensure that such records and accounts are included in the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report annual audit referred to in paragraph (b) of this SectionSection and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement together with the United Nations Development Programme (UNDP) under terms procedures and conditions satisfactory internal controls involved in their preparation, can be relied upon to support the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreementrelated withdrawals. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Program and of the Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, MTPAT and KTAC with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower and the Association shall from time to time, at the request of either party, exchange views on the progress achieved in carrying out the Program. (c) Prior to each such exchange of views, the Borrower shall furnish to the Association, for its review and comment, a report on the progress achieved in carrying out the Program in such detail as the Association shall reasonably request. (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 carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Without limitation to the generality of the provisions of Section 3.01 (a) above with regard to the provision of funds, the Borrower shall: (a) maintain the Road Fund; (b) take all measures required on its part to increase the annual revenues of the Road Fund from the current level of CFAF 1.8 billion to: (i) CFAF 2.1 billion in FY 1990; (ii) CFAF 2.2 billion in FY 1991; CFAF 2.4 billion in FY 1992; and (iv) CFAF 2.7 billion in FY 1993; (c) ensure that the proceeds of the Road Fund shall be used solely to defray the cost of road maintenance work programs agreed upon with the Association; (d) ensure that the revenues of the Road Fund shall be at all times managed by an administrator assisted by a controller and an accountant, all with qualifications and professional experience satisfactory to the Association; (e) have the Road Fund accounts and records for each FY audited in accordance with appropriate auditing principles consistently applied by independent auditors acceptable to the Association; and (f) by March 31 of each year submit the report of such audit to the Association for its review and comment. Section 3.03. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.033.04. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the The Borrower shall: : (a) prepare, (i) formulate each year a draft road maintenance schedule; and (ii) submit it by September 30 of each year to the Association for its review and comments; (b) (i) prepare an annual transport sector investment budget (TSIB) including only investment proposals selected on the basis of guidelines acceptable a feasibility study demonstrating for each investment proposal an economic rate of return of at least 10%; (ii) by September 30 of each year submit said TSIB to the Bank, Association for its review and furnish to the Bank not later than six comments; and (6iii) months after the Closing Date or such later date execute said XXXX as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views upon with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational ManualAssociation. Section 3.05. The Borrower shall: : (a) maintain policies and procedures adequate by December 31, 1990, submit to enable it the Association an Environmental Action Plan satisfactory to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; Association; (b) prepare, under terms of reference satisfactory promptly implement said Environmental Action Plan; and (c) submit to the Bank, and furnish to the Bank, on or about February 15 Association by December 31 of each subsequent year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date execution of said report and setting Environmental Action Plan. Section 3.06. The Borrower shall: (a) by December 31, 1990 formulate the training program required to carry out the measures recommended to ensure the efficient carrying out Part D.5 (a) of the Project and submit it to the achievement of the objectives thereof during the period following such dateAssociation for its review and comments; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativehealth, legal engineering and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Notwithstanding the generalities of paragraph (a) of this Section, the Borrower shall take all necessary measures to: (i) ensure that the financing of the Project from its own resources is maintained during the implementation of the Project at such levels as agreed between the Borrower and the Association; and (ii) make available an amount up to the ceilings specified in the Operational Manual to each Project Village on a grant basis. These ceilings may be reviewed periodically and may be revised with the agreement of the Association. (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 carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for designed to ensure the future operation continued achievement of the Project;’s objectives; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeeconomic, legal engineering and technical public health practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. In order to facilitate the efficient carrying out of the Project, the Borrower shall promptly ensure that the Planning Directorate of the Ministry of Public Health shall at all times be responsible for the overall coordination of Project execution, the supervision of the procurement of the goods and services therefor, and the preparation and furnishing to the Bank of reports and other information thereon; said Directorate shall be responsible for the overall coordination of Project execution in liaison with the Borrower’s three local Project execution entities charged with the supervision of Project execution activities within their respective parts of the Project Areas, and with the preparation and furnishing to the said Directorate of reports and other information on such activities. The Borrower shall at all times maintain or cause to be maintained the said Directorate and entities under terms of reference mutually satisfactory to the Bank and the Borrower. (a) Without limitation or restriction on the provisions of Section 3.01 of this Agreement, the Borrower shall carry out, or cause to be carried out, the Strategy Letter with due diligence and efficiency, and at all times take all necessary measures to achieve the objectives thereof. (b) Not later than June 30 in each Fiscal Year, beginning with the Fiscal Year ending December 31, 1991, representatives of the Bank and the Borrower shall meet for the purposes of reviewing the progress achieved by the Borrower in carrying out the Project and the Strategy Letter during the period under review. Section 3.04. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, MS and MEMH with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeengineering, legal environmental, water and technical sanitation practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement Without limitation upon any of the goods and consultants’ services required for the Project and to be financed out its obligations under Section 3.01 of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepareestablish and maintain a Project Account in a commercial bank on terms and conditions satisfactory to the Association to be used exclusively for the purposes of meeting expenditures for the Project, which are not externally financed; and (b) in addition to the initial deposit referred to in Section 6.01 (b) of this Agreement, deposit into the Project Account, promptly before each fiscal semester starting after the Effective Date, sufficient funds to pay the Borrower’s contribution to the financing of the Project required for such fiscal semester, as estimated by the Borrower in consultation with the Association. Section 3.03. The Borrower shall carry out the Project in accordance with the terms and provisions of a Project Implementation Manual acceptable to the Association. Section 3.04. The Borrower shall, on the basis of guidelines acceptable to the BankBeneficiaries Assessment Studies, ensure that communities, schools and furnish to health centers, as the Bank not later than six (6) months after the Closing Date or such later date as case may be agreed for this purpose between the Borrower be, participating under Parts A and the Bank, a plan for the future operation C of the Project; Project shall: (a) pay part of the capital cost and all recurrent costs of water and sanitation facilities, as specified in the Project Implementation Manual, on the basis of the respective levels of services provided; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said planown and manage their water and sanitation facilities; and and (c) carry out an in-depth review (the mid-term review), jointly establish their proposed Village Project Documents and financial arrangements in accordance with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Implementation Manual. Section 3.05. The Borrower shall: : (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basisby March 31, in accordance 1996, carry out jointly with the indicators set forth in the Implementation Letter, the carrying out Association a mid-term review of the Project and the achievement which shall cover inter alia: (i) an evaluation of the objectives thereof; Project’s management and coordination; (bii) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf assessment of the Borrower, records ’s timeliness in providing budgetary allocations and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.counterpart funding;

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical accounting 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 and the Implementation Plan. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAsso- ciation, and furnish to the BankAssociation, on or about February 15 of each year during the implementation of the Project a report April 30, 1999 reports integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended recom- mended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project June 30, 1999 or such later date dates as the Bank Association shall request, the report reports referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAssociation’s views on in the matter. Section 3.04. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementAsso- ciation, carry out the Project in accordance with an operational manual, satisfactory and furnish to the Bank 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 be prepared by ensure the PCU, said manual to include specific rules and procedures for Project implementationcontinued achievement of the Project’s objectives; and (b) afford the Operational Manual may be amended by Association a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal technical and technical financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For During the purposes of Section 9.07 execution of the General Conditions and without limitation theretoProject, the Borrower shall: shall maintain a Project Implementation Unit (aPIU) preparewithin the Ministry of Trade and Foreign Economic Relations with staff and other resources and terms of reference, on the basis of guidelines acceptable satisfactory to the BankAssociation, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may which shall be agreed responsible for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAssociation, and furnish to the BankAssociation, on or about February 15 of each year during the implementation of the Project March 31, 1999 a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project 30, 1999 or such later date as the Bank Association shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAssociation’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency efficiency, in accordance with the Environmental Management Program and in conformity with appropriate economic, financial, administrative, legal technical and technical environmental management practices, and shall provide, promptly as needed, the funds, Section 3.02. Without limitation upon the provisions of Section 3.01 of this Agreement, facilitiesand except as the Bank may otherwise agree: (a) the Borrower shall establish and thereafter maintain at all times during the Project implementation period, services an inter- ministerial steering committee with membership and other resources required terms of reference satisfactory to the Bank to be responsible for the oversight and coordination of Project implementation; (b) under Part B of the Project, the Borrower shall take all action required to ensure that the National Environmental Council shall be restructured, not later than July 1, 1994, with membership and terms of reference satisfactory to the Bank and in a manner designed to enable said Council properly to assume responsibility for developing a nationwide consensus on environmental policies and strategies and for providing expert advice and guidance to the Borrower on environmental issues; and (c) the Borrower shall: (i) maintain operational proce- dures adequate to enable it to monitor and evaluate, in accordance with indicators satisfactory to the Bank, the progress achieved in the carrying out of the Project; (ii) prepare and furnish to the Bank not later than September 30, 1996, a report, of such scope and in such detail as the Bank shall reasonably request on the conclusions and recommendations indicated by the monitoring and evaluation activities performed pursuant to sub-paragraph (i) of this paragraph, including any actions proposed to further the progress in the carrying out of the Project; (iii) afford the Bank a reasonable opportunity to exchange views with the Borrower on the report prepared pursuant to sub-paragraph (ii) of this paragraph; and (iv) thereafter, promptly take all such action to further the progress in the carrying out of the Project, as shall have been agreed between the Borrower and the Bank. Section 3.023.03. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal technical and technical administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project;; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project December 31, 2000, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project March 31, 2001, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shallSection 3.05. Throughout the implementation of the Project, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to timeshall maintain, in a manner and under terms of reference satisfactory to the Bank, to facilitate continued a PSC headed by a Chairperson appointed by the Borrower’s Prime Minister and composed of a representative each of the State Ownership Fund, the National Bank of Romania, the Ministry of Finance, the Ministry of Justice, the Ministry of Transport, the Ministry of Industry and Commerce, the Prime Minister’s office, the Bank Restructuring Committee, and the Asset Resolution Agency. The PSC shall be responsible for reviewing the progress of Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For Section 3.06. The PMU shall be responsible for day-to-day Project administration, management and coordination, including activities related to procurement, accounting, disbursement, auditing and reporting. Throughout the purposes implementation of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement shall maintain the PMU with the United Nations Development Programme (UNDP) under terms a sufficient number of qualified staff and conditions adequate facilities, as satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.Bank. ˇ

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, RTCD with due diligence and efficiency and in conformity with appropriate financialtechnical, administrative, legal administrative and technical engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for the future operation of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall shall, not later than December 31, 1998, take all necessary measures, acceptable to the Association, to ensure that the PCU is at all times, during the implementation positions of the Project, headed by a Project coordinator (the Project Coordinator) mechanic trainer and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth operator trainer have been included in the Operational Manualauthorized staffing positions in RTCD and have been suitably graded within the RTCD salary structure. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, prepare under terms of reference reference, satisfactory to the BankAssociation, and furnish to the BankAssociation, on or about February 15 of each year during the implementation of the Project November 30, 1998, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project December 31, 1998, or such later date as the Bank Association shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAssociation’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower Recipient declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate public health, educational, financial, administrative, legal technical and technical administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower Recipient shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in acceptable to the Implementation LetterAdministrator, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAdministrator, and furnish to the BankAdministrator, on or about February 15 of each year during the implementation of the Project September 30, 2001, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAdministrator, by April 15 of each year during the implementation of the Project December 31, 2001, or such later date as the Bank Administrator shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAdministrator’s views view on the matter. Section 3.04. For the purposes of Section 1.23 of the General Conditions and without limitation thereto, the Recipient shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementAdministrator, carry out the Project in accordance with an operational manual, satisfactory and furnish to the Bank Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Administrator, a plan designed to be prepared by ensure the PCU, said manual to include specific rules and procedures for Project implementationcontinued achievement of the Project’s objectives; and (b) afford the Operational Manual may be amended by the Borrower from time Administrator a reasonable opportunity to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement exchange views with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, Recipient on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreementsaid plan. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, PCU with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeengineering, legal environmental, and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services works required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, Association and furnish to the Bank 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 BankAssociation, a plan for the future operation of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, Association and furnish to the Bank, Association on or about February 15 October 31 of each year during the implementation of the Project year, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 November 30 of each year during the implementation of the Project year, or such later date as the Bank Association shall request, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the BankAssociation’s views on the matter. (a) Section 3.05. The Borrower shallshall maintain the PCU with powers , without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, functions and staffing satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailAssociation. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeengineering, legal environmental, and technical 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. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works, and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For the purposes of Section 9.07 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for the future operation continued achievement of the objectives of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout Without limitation upon the course provisions of the Project implementationSection 3.01 of this Agreement, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) cause DGTP to open, and maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with for the indicators set forth in the Implementation Letter, the carrying out duration of the Project and the achievement implementation of the objectives thereofProject, an account (the Project Account) in a commercial bank acceptable to the Association and on terms and conditions satisfactory to the Association; (b) preparedeposit into the Project Account an initial amount equivalent to CFAF 133 million, under terms of reference satisfactory (the Initial Deposit) and thereafter, at quarterly intervals, deposit into the Project Account an amount equivalent to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such dateInitial Deposit; and (c) review with the Bank, by April 15 of each year during the implementation of ensure that funds deposited into the Project or such later date as the Bank shall request, the report referred to Account in accordance with paragraph (b) above shall be used exclusively to finance the Borrower’s share of this Section, and, thereafter, take all measures required to ensure expenditures under the efficient completion Project other than those financed from the proceeds of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matterCredit. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal educational and technical managerial 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 3.02. and except as the Borrower and the Association shall otherwise agree, the Borrower shall: (i) introduce in the budget for education a line item, and allocate to it, an amount equivalent to one million five hundred thousand dollars ($1,500,000) for each fiscal year, to finance the cost of maintenance of schools from FY 1993; and (ii) carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (a) Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement; and (b) the Borrower shall take all necessary measure to exempt from all customs duties and taxes, all imported goods procured in accordance with the provisions of paragraph (a) of this Section. Section 3.03. For The Borrower, through GEPP, shall not later than thirty (30) days after the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: Effective Date: (a) prepareopen and maintain an account in dollars, on the basis of guidelines or such other currency as may be acceptable to the BankAssociation, in a commercial bank (the Project Account), on terms and furnish conditions satisfactory to the Bank Association; (b) promptly thereafter, make an initial deposit into such account, in dollars or such other currency as may be acceptable to the Association, in an amount equivalent to two hundred thousand fifty dollars ($250,000) to finance the Borrower’s contribution to the Project; and (c) deposit every four months, into the Project Account, such amounts, in dollars or such other currency as may be acceptable to the Association, as shall be required to timely replenish the Project Account. Section 3.04. The Borrower and the Association shall: (a) not later than six November 1 of each year, until the completion of the Project, conduct an annual review of MOE’s draft investments and recurrent education budgets, to ensure the application and financing of the Borrower’s education reform; (6b) months not later than May 30, 1995, conduct a mid-term review to: (i) assess progress in achieving the Project objectives: and (ii) discuss the results and proposed strategies developed by the studies referred to under Parts D.1 (b); (c); and (d) of the Project; (c) four weeks prior to such review, but not later than April 15, 1995, furnish to all departments and agencies responsible for Project implementation and to the Association, for its review and comments, a report in such detail as the Association shall reasonably request, including an evaluation of progress achieved in carrying out the Project; and (d) promptly after completing the Closing Date or such later date reviews, carry out those recommendations arising out of said reviews as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational ManualAssociation. Section 3.05. The Borrower shall: shall during the execution of the Project: (a) maintain policies maintain, with functions, responsibilities, experience, qualifications and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall requestAssociation, the report referred staff responsible for Project Implementation as set forth in Part B of Schedule 4 to in paragraph this Agreement; and (b) of this Section, and, thereafter, take all necessary measures required to ensure the efficient completion of the Project make available housing, office space and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation transportation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services consultants employed under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agree- ment, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical health 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 accor- dance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For the purposes of Section 9.07 The Borrower shall maintain until completion of the General Conditions and without limitation thereto, Project the Borrower shall: (a) prepare, on the basis PMU with terms of guidelines acceptable reference satisfactory to the BankAssociation, which shall be headed by a Project Coordinator with qualifications and experience satisfactory to the Association, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may shall be agreed for this purpose between the Borrower and the Bank, a plan responsible for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation overall management and coordination of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with bench- marks and indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAssociation, and furnish to the BankAssociation, on or about February 15 of each year during the implementation of the Project by April 30, 1999 a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project June 30, 1999 or such later date as the Bank Association shall request, the report referred to in paragraph (b) of this Section, and, and thereafter, 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 said report and the BankAssociation’s views on the matter. Section 3.05. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementAssociation, carry out the Project in accordance with an operational manual, satisfactory and furnish to the Bank 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 to be prepared by the PCUAssociation, said manual to include specific rules and procedures a plan for Project implementationthe future operation of the Project; and (b) afford the Operational Manual may be amended by Association a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives objective of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall shall, through the Ministry of Cities, carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical housing practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (a) Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For (b) The Borrower shall update the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than six (6) 12 months after the Closing Date or such later date as may be agreed of the preceding Procurement Plan, for this purpose between the Borrower and the Bank’s approval. Section 3.03. The Borrower, through the National Housing Secretariat, shall prepare in collaboration with GTI-SFH, every six months during the execution of the Project, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the ProjectProject during the succeeding six-month period, which shall be approved by the Bank. Section 3.04. Throughout the course of the Project implementation, the The Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that in the PCU is at all timesMinistry of Cities, during the implementation execution of the Project, headed by a Project coordinator (an organizational structure for purposes of coordinating and managing the Project Coordinator) carrying out of the Project, and assisted by staff in adequate numbershaving responsibility for all disbursement, all with qualifications procurement and experience satisfactory to financial management activities under the Bank Project, with functions and responsibilities satisfactory to the Bank, and qualified staff in adequate numbers as set forth in required to carry out its responsibilities under the Operational ManualProject. Section 3.05. The Borrower shallshall through the Ministry of Cities: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation LetterMonitoring Indicators, the carrying out of the Project and the achievement of the objectives objective thereof;; and (b) prepare, under terms of reference satisfactory to the Bank, and furnish to review with the Bank, on the 24th month after the Effective Date or about February 15 of each year during when disbursements from the implementation Loan Account have reached an amount equal to 50% of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this SectionLoan amount, on whichever occurs first, the progress achieved in the carrying out of the Project during the period preceding the date of said report such review, based on the monitoring and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report evaluation activities referred to in paragraph (ba) of this Sectionabove, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives objective thereof, based on the conclusions and recommendations of the said report and the Bank’s views on the matterreview. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, MINARS with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal technical and technical 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 Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. The Borrower shall: (a) open and maintain an account, in dollars or such other currency as may be acceptable to the Association, in a commercial bank (the Project Account), on terms and conditions satisfactory to the Association; (b) make an initial deposit into such account in an amount of $40,000 or its equivalent in other currency acceptable to the Association; (c) deposit every six months, beginning on the date six months after the date of the initial deposit referred to under sub-paragraph (b) above, into the Project Account, such amounts, in dollars or such other currency as may be acceptable to the Association, as shall be required to replenish the Project Account, having regard to the program of work established by the Project Unit in accordance with the provisions of sub-paragraph (e) of paragraph 2 and sub-paragraph (c) of paragraph 3 of Part B of Schedule 4 to this Agreement; and (d) ensure that the funds in the Project Account are used exclusively to make payments in order to meet expenditures made or to be made in respect of the reasonable cost of goods and services required for the Project and not financed from the proceeds of the Credit. 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 BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for designed to ensure the future operation sustainability of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower Recipient declares its commitment to the objectives of the Project, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall carry out implement the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project, in accordance with this Agreement. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For the purposes of Section 9.07 1.23 of the General Conditions and without limitation thereto, the Borrower Recipient shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (ai) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in agreed upon from time to time between the Implementation LetterRecipient and the Administrator, the carrying out of the Project and the achievement of the objectives thereof; (bii) prepare, under terms of reference satisfactory to the BankAdministrator, and furnish to the BankAdministrator, on or about February 15 of each year during the implementation of the Project March 30, 2002, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph subparagraph (ai) of this Sectionabove, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (ciii) review with the BankAdministrator, by April 15 of each year during the implementation of the Project June 30, 2002, or such later date as the Bank Administrator shall request, the report referred to in paragraph subparagraph (bii) of this Sectionparagraph, and, thereafter, 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 said report and the BankAdministrator’s views on the matter. (ai) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementAdministrator, carry out the Project in accordance with an operational manual, satisfactory and furnish to the Bank and to be prepared by Administrator not later than six (6) months after the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual Closing Date or such later date as may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict agreed for this purpose between the terms of Recipient and the Operational Manual and those of this AgreementAdministrator, a plan designed to ensure the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures continued achievement of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan’s objectives; and (ii) except afford the Administrator a reasonable opportunity to exchange views with the Recipient on said plan. Section 3.04. Except as the Bank may Association shall otherwise agree, in the Borrower shall carrying out of the Project, the Recipient shall: (i) apply the criteria, policies, procedures and guidelines set out in the Operational Manual; and (ii) not assignamend, amendwaive, abrogate, suspendor permit to be amended or abrogated, waive, terminate or fail to enforce the UNDP Agreement Operational Manual or any provision thereof, in a manner which, in the opinion of the Association, may materially and adversely affect the implementation of the Project. Section 3.05. Without limitation to the provision of Section 3.04 above, in carrying out the Subprojects under Part A of the Project, the Recipient shall (i) ensure that every Subproject is fully consistent with environmental criteria set out in the Operational Manual, and where appropriate, mitigation measures designed to minimize adverse effects of proposed Subprojects are identified and incorporated in the Subprojects design; (ii) mobilize financial resources required to ensure that beneficiary communities continue to meet their obligations to provide an adequate, regular and sustainable maintenance of the infrastructure developed by the Beneficiary with the proceeds of the Sub-Grant; and (iii) appraise Subprojects and supervise, monitor and report on the carrying out Subprojects, in accordance with procedures satisfactory to the Administrator.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, Project through the PCUExecutive Committee (in accordance with the Acuerdo Gubernativo and the Administrative Arrangement), with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial management and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. Section 3.04. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. (a) In the event that CGO is vested with legal personality after the date of this Agreement, carry out the Project in accordance with an operational manualBorrower, through MOF, shall, not later than thirty 30 days after the occurrence of said event, cause the Administrative Arrangement to be amended on terms and conditions satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementationBank; and (b) in case the Operational Manual may be amended by amendment referred to in the preceding paragraph (a) shall occur, the Borrower from time to time, shall: (i) exercise its rights and carry out its obligations under the Administrative Arrangement in such a manner satisfactory as to protect the Bank, to facilitate continued Project implementation. In case of any conflict between the terms interests of the Operational Manual Borrower and those the Bank and to accomplish the purposes of this Agreementthe Loan; and (ii) except as the Bank may otherwise agree, not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the terms of this Agreement shall prevailAdministrative Arrangement or any provision thereof. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with shall amend the United Nations Development Programme (UNDP) under UNDP Agreement on terms and conditions satisfactory to the Bank (the UNDP Agreement)Bank, including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out carryout its obligations under the UNDP agreement Agreement in such a manner as to protect the interest interests of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, its Ministry responsible for Health with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical health management 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 3.02. Except and except as the Bank Borrower and the Association shall otherwise agree, procurement of the goods and consultants’ services required for Borrower shall carry out the Project and to be financed out of in accordance with the proceeds of the Loan shall be governed by the provisions of Implementation Program set forth in Schedule 4 to this Agreement. (c) Without limitation or restriction of its obligations under paragraphs (a) and (b) of this Section 3.03. For and, except as the purposes of Section 9.07 of Borrower and the General Conditions and without limitation theretoAssociation shall otherwise agree, the Borrower shall: : (ai) prepare, on the basis of guidelines acceptable provide in its annual budget amounts adequate to cover its counterpart contributions to the Bankcosts of the Project; and (ii) open and maintain in a commercial bank in Ouagadougou an account (the Project Account) to be used exclusively to meet expenditures under the Project and deposit into the Project Account: (A) an initial amount of $100,000 equivalent by January 1st, 1996; and furnish (B) the remaining amount of its counterpart contributions, quarterly in advance, according to the Bank not later than six (6) months after the Closing Date or such later date as may be a schedule of payments agreed for this purpose upon between the Borrower and the BankAssociation. Section 3.02. The Borrower shall: (a) no later than March 31, a plan for 1997, or at such later date as the future operation of Association and the Project; (b) afford the Bank a reasonable opportunity to exchange views Borrower shall agree upon, carry out jointly with the Borrower on said plan; and (c) carry out Association an in-depth review of the Project implementation (the mid-term review), jointly with the Bankand invite KfW, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of UNICEF and other donors contributing to the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff to participate in adequate numbers, all with qualifications and experience satisfactory such review; such review to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), includingfocus on, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. : (i) The Borrower shall exercise its rights and carry out its obligations under progress in meeting the UNDP agreement in such a manner as to protect the interest Project’s objectives; status of Project implementation assessed against monitoring indicators agreed upon by the Borrower and the Bank Association and attached to accomplish the purposes of the LoanProgram; and and ways to improve Project implementation, if required; (ii) except as assessment of micronutrient distribution according to surveys referred to under paragraph (8) of Schedule 4 to this Agreement; (iii) implementation of the Bank may otherwise agree, recommendations of the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail hospital sector study referred to enforce under paragraph (7) of Schedule 4 to this Agreement; (iv) implementation of the UNDP Agreement or any provision thereof.national redeployment plan referred to under paragraph (9) of Schedule 4 to this Agreement; and (v) the review of the National Plan for Eradication of Dracunculiasis referred to under paragraph (10) of Schedule 4 to this Agreement;

Execution of the Project. Section 3.01. The Borrower Recipient declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate engineering, environmental, financial, administrative, legal technical and technical administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower Recipient shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in acceptable to the Implementation LetterAdministrator, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAdministrator, and furnish to the BankAdministrator, on or about February 15 of each year during the implementation of the Project December 31, 2001, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAdministrator, by April 15 of each year during the implementation of the Project June 30, 2002, or such later date as the Bank Administrator shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAdministrator’s views view on the matter. Section 3.04. For the purposes of Section 1.23 of the General Conditions and without limitation thereto, the Recipient shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementAdministrator, carry out the Project in accordance with an operational manual, satisfactory and furnish to the Bank Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Administrator, a plan designed to be prepared by ensure the PCU, said manual to include specific rules and procedures for Project implementationcontinued achievement of the Project’s objectives; and (b) afford the Operational Manual may Administrator a reasonable opportunity to exchange views with the Recipient on said plan. Section 3.05. The Recipient shall ensure that all measures necessary for the carrying out of the Environmental Management Plan shall be amended by the Borrower from time to time, taken in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailtimely manner. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal engineering, financial and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (a) Except as the Bank shall otherwise agree, procurement of the goods (including supply and consultants’ services installation) required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than 12 months after the date of the preceding Procurement Plan, for the Bank’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 Bank, and furnish to the Bank not later than six (6) months after before the Closing Date or such later date as may be agreed for this purpose between the Borrower 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 Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Lettera supplemental letter to this Agreement, the carrying out of the Project and the achievement of the objectives thereof; (b) submit to the Bank, at the end of each calendar quarter, quarterly progress reports, in form and substance acceptable to the Bank; (c) prepare, under terms of reference satisfactory acceptable to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project October 31, 2007, a mid-term review report integrating the results of the monitoring and evaluation activities performed pursuant to sub-paragraph (a) of this Sectionparagraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project Project, protection of the environment and the achievement of the objectives thereof during the period following such date; and (cd) review with the Bank, by April 15 of each year during the implementation of the Project January 31, 2008, or such later date as the Bank shall request, the report referred to in sub-paragraph (bc) of this Sectionparagraph, and, thereafter, 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 said report and the Bank’s views on the matter. (a) Section 3.05. The Borrower shall, without limitation to shall implement the other provisions of this Agreement, carry out FEAP and LAMF and shall include in the Project in accordance with an operational manual, satisfactory quarterly progress reports to the Bank specific environmental reports and to be prepared by the PCUland acquisition reports, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to timeas required, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case providing results of any conflict between the terms monitoring programs undertaken as part of the Operational Manual FEAP and those the status of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services land acquisition under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives objective of the Project, and, to this end, shall carry out out: (a) Part A.1 of the ProjectProject through MAVDT with the assistance of IDEAM and MPS (pursuant to the Inter-Institutional Arrangements); (b) Part A.2 of the Project through MAVDT with the assistance of MPS (pursuant to the Inter-Institutional Arrangements); (c) Part B, Parts X.0 xxx X.0 xxx Xxxxx X.0, X.0 xxx X.0 of the Project through MAVDT; (d) Part C.2 of the PCU, Project through MAVDT with the assistance of IDEAM (pursuant to the Inter-Institutional Arrangements); and (e) Part D.2 of the Project through MAVDT with the assistance of DNP (pursuant to the Inter-Institutional Arrangements); all with due diligence and efficiency and in conformity with appropriate administrative, social, financial, administrative, legal public utility and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (a) Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. Section 3.03. For (b) The Borrower, through MAVDT, shall update the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than six (6) 12 months after the Closing Date or such later date of the preceding Procurement Plan, for the Bank’s approval. Section 3.03. Without limitation upon the provisions of Section 3.01 of this Agreement, and except as may be agreed for this purpose between the Borrower and the BankBank may otherwise agree, a plan for the future operation of Borrower, through MAVDT, shall carry out the Project; Project in accordance with: (a) the Operational Manual; (b) afford the Bank a reasonable opportunity Annual Operational Plans, each satisfactory to exchange views with the Borrower on said planBank; and and (c) carry out an in-depth review (the mid-term review)Key Performance Indicators. Except as the Bank shall otherwise agree, jointly with the Borrower shall not amend or waive any provision of these documents without the Bank’s prior written approval. In case of any conflict between the terms of said documents and those of this Agreement, on the progress achieved in the implementation terms of the Projectthis Agreement shall prevail. Section 3.04. Throughout At all times during Project implementation the course of the Borrower, through MAVDT, shall maintain an implementation system within MAVDT, responsible for overall Project planning, coordination, implementation, supervision, monitoring and evaluation, and with a structure, functions and responsibilities acceptable to the Borrower shall maintain Bank, staffed with at least a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by financial management specialist and a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbersprocurement specialist, all with qualifications and experience acceptable to the Bank, operating under terms of reference satisfactory to the Bank with functions and responsibilities as set forth in the Operational ManualBank. Section 3.05. The Borrower Borrower, through MAVDT, shall issue an operational manual satisfactory to the Bank, containing, inter alia, specific provisions on detailed arrangements for the carrying out of the Project, including: (a) the procurement, financial management and disbursement requirements thereof; (b) a model to be used in the preparation of FMRs; (c) the Inter-Institutional Arrangements; (d) a model to be used in the preparation of the Annual Operational Plans; and (e) the Key Performance Indicators. Section 3.06. The Borrower, through MAVDT, shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation LetterKey Performance Indicators, the carrying out of the Project and the achievement of the objectives objective thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 March 31 of each year during the implementation of the Project implementation, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and; (c) review with the Bank, by April 15 of each year during the implementation of the Project 30, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter; and (d) carry out an in-depth Project review (the mid-term review), jointly with the Bank by not later than November 30, 2007, of such scope as set forth in the Operational Manual, on the progress achieved in the implementation of the Project. Section 3.07. (a) The Borrower Borrower, through MAVDT, shall, without limitation to the other provisions : not later than March 31 of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for each year of Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, starting in a manner satisfactory March 31, 2006, furnish to the Bank, for its review, a Project operational plan for the following calendar year, such plan to facilitate continued Project implementation. In case of any conflict between specify: (A) the terms activities to be financed out of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf proceeds of the Borrower, records Loan during the respective calendar year; (B) the implementation schedule; and accounts adequate to reflect (C) the operations, resources required financial and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loanhuman resources; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financialgeological, pelagic, administrative, financial, accounting and legal and technical professional practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Without limitation to its obligations under Section 3.01 of this Agreement, the Borrower shall, for the purposes of the Project: (a) open and maintain in ouguiyas in the name of the Project an account (the Project Account) in a commercial bank acceptable to the Association on terms and conditions satisfactory to the Association; (b) deposit into the Project Account an initial amount equivalent to $50,000; (c) thereafter, deposit into the Project Account not later than March 31, June 30, September 30 and December 31 in each year during the implementation of the Project, the amount necessary to replenish the Project Account to the amount of $50,000 equivalent or such greater amount as may be required for the purposes of the Project; and (d) ensure that amounts deposited into the Project Account pursuant to paragraphs (b) and (c) above shall be used only to make payments to meet expenditures made or to be made in respect of the reasonable cost of goods and services for the Project not financed or to be financed out of the proceeds of the Credit. Section 3.03. Except as the Bank Borrower and the Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.033.04. For Without limitation upon the purposes provisions of Section 9.07 Article IX of the General Conditions and without limitation theretoConditions, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, prepare and furnish to the Bank 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 BankAssociation a plan, a plan for of such scope and in such detail as the future operation Association shall reasonably request, designed to preserve the achievements of the Project; (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) thereafter, carry out an in-depth review (the mid-term review), jointly said plan with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) due diligence and assisted by staff in adequate numbers, all with qualifications efficiency and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with appropriate practices, taking into account the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAssociation’s views on the mattercomments thereon. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, Recipient shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal engineering and technical health practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 3 to 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 of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) of this Section 3.03and those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; (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; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.04. For Without limitation upon the purposes applicable provisions of Section 9.07 Article IX of the General Conditions and without limitation theretoConditions, the Borrower Recipient shall: (a) prepare, on the basis of guidelines acceptable to the BankAdministrator, and furnish to the Bank 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 Recipient and the BankAdministrator, a plan for the future operation of the Project; (b) afford the Bank Administrator a reasonable opportunity to exchange views with the Borrower Recipient on said plan; and (c) thereafter, carry out an in-depth review (the mid-term review), jointly said plan with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) due diligence and assisted by staff in adequate numbers, all with qualifications efficiency and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with appropriate practices, taking into account the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAdministrator’s views on the mattercomments thereon. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, AP with due diligence and efficiency and in conformity with appropriate financial, administrative, legal environmental and technical 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: (i) carry out the Project in accordance with the Project Operational Manual as may be modified from time to time as agreed by the Borrower through the AP and the Association; (ii) maintain the PCU until the completion of the Project, and ensure that the PCU functions at all times in accordance with procedures, under terms of reference, and with staff and budgetary resources necessary to meet the objectives of the Project and satisfactory to the Association, including, inter alia, the requirement that the PCU provides the Association with satisfactory evidence that each state-owned enterprise which applies for labor restructuring payments under Part A of the Project has formally entered bankruptcy and restructuring proceedings under the Bankruptcy Law and has adopted a restructuring plan satisfactory to the Association; and (iii) employ for the PCU, by July 31, 1999 a financial management/ procurement specialist under terms of reference satisfactory to the Association. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for designed to ensure the future operation continued achievement of the objectives of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAssociation, and furnish to the BankAssociation, on or about February 15 of each year during the implementation of the Project March 31, 2001, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project June 30, 2001, or such later date as the Bank Association shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the BankAssociation’s views on the matter. (a) Section 3.05. The Borrower shall, without limitation shall promptly submit to the other provisions Association on a quarterly basis commencing three (3) months from the date of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms effectiveness of this Agreement shall prevail. (a) For and until Project completion, progress reports integrating the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf results of the Borrower, records monitoring and accounts adequate evaluation activities performed pursuant to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 Section 3.04(a) of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, MOH with due diligence and efficiency and in conformity with appropriate financial, economic, administrative, legal health care and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as In order to ensure the Bank shall otherwise agree, procurement proper implementation of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation theretoProject, the Borrower shall: (a) prepareEstablish and thereafter maintain with functions, on membership and terms of reference all satisfactory to both the basis Bank and the Borrower, a Health Sector Reform Management Board (the CGRH) to be responsible for, inter alia, monitoring the implementation of guidelines acceptable to the Bankinstitutional and financial management restructuring of the Hospitals, 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 the future operation carrying out of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (ci) carry out an in-depth review Establish and thereafter maintain within the MOH, in a form and with functions, resources and terms of reference all satisfactory to both the Bank and the Borrower, a Project Coordina- tion Unit (the mid-term review)PCU) to assist the CGRH in carrying out its functions and, jointly with in particular, to be responsible for, inter alia, supervising, coordinating and administering the Bank, on the progress achieved in the overall implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall and (ii) ensure that the PCU is at all timestimes staffed with personnel, during the implementation including a Director, in numbers and with qualifications, experience and terms of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, reference all with qualifications and experience satisfactory to both the Bank with functions and responsibilities as set forth in the Operational ManualBorrower. Section 3.053.03. The Borrower shallshall take all action necessary to ensure that: (a) maintain policies Its government shall prepare, on the basis of the draft law previously furnished to the Bank by the Borrower under cover of its letter dated March 25, 1991, and procedures adequate present to enable it to monitor and evaluate on an ongoing basisits National Assembly for enactment, in accordance with a proposed law authorizing the indicators set forth creation of public health establishments in the Implementation Letterform of independent public enterprises with legal, the carrying out of the Project financial, administrative and the achievement of the objectives thereofmanagerial autonomy; (b) prepare, under terms of reference satisfactory to Immediately upon the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation enactment of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant law referred to in paragraph (a) of this Section, on and not later than December 31, 1992, the progress achieved legal personality of each and every Hospital set forth in Part B of Schedule 6 to this Agreement shall be duly converted to that of a public health establishment and the carrying out statutes of the Project during the period preceding the date each of said report and setting out the measures recommended to ensure the efficient carrying out of the Project Hospital, reflecting its new legal personality and the achievement appointment of its general manager, shall be duly issued, all in accordance with the objectives thereof during the period following such date; andprovisions of said law; (c) review with Immediately upon the Bank, by April 15 of each year during the implementation enactment of the Project or such later date as the Bank shall request, the report law referred to in paragraph (ba) of this Section, and not later than December 31, 1993, the legal personality of each and every Hospital set forth in Part C of Schedule 6 to this Agreement shall be duly converted to that of a public health establishment and the statutes of each of said Hospital, reflecting its new legal personality and the appointment of its general manager, shall be duly issued, all in accordance with the provisions of said law; and (d) Immediately upon the enactment of the law referred to in paragraph (a) of this Section, thereafterand not later than December 31, 1994, the legal personality of each and every Hospital set forth in Part D of Schedule 6 to this Agreement shall be duly converted to that of a public health establishment and the statutes of each of said Hospital, reflecting its new legal personality and the appointment of its general manager, shall be duly issued, all in accordance with the provisions of said law. Section 3.04. In order to achieve the objectives of the Project, the Borrower shall take all measures required action necessary to ensure, after the conversion of the legal personality of the Hospitals into that of public health establishments, in accordance with the provisions of Sections 3.03 and 5.01 (b) of this Agreement, that their legal personality, statutes and basic structures and functions shall be at all times maintained. Section 3.05. Not later than September 30, 1991, the Borrower shall take all action necessary to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matter.that: (a) The Borrower shallA Center for Health Information (the CIS), without limitation to the other provisions with func- tions, resources and terms of this Agreement, carry out the Project in accordance with an operational manual, reference all satisfactory to both the Bank and the Borrower, is duly established, possessing the legal personality of a public establishment to be prepared by responsible for, inter alia, managing, standardizing and coordinating the PCUdevelopment, said manual to include specific rules installation and procedures maintenance of a computer network system for Project implementationthe Hospitals; and (b) A director is appointed to head the Operational Manual may be amended by CIS, possessing the requisite qualifications, experience and terms of reference. Section 3.06. (a) Not later than September 30, 1992, the Borrower from time to time, in a manner satisfactory shall furnish to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual for its review and those of this Agreementcomments, the terms Borrower’s medium-term plan for the restructuring and further development of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loanpublic hospital sector; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, NEA with due diligence and efficiency and in conformity with appropriate financial, administrative, legal ecological and technical practicesenvironmental practices and in accordance with the Implementation Manual, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For Without limitation upon the purposes provisions of Section 9.07 Article IX of the General Conditions and without limitation theretoConditions, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, prepare and furnish to the Bank 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 BankAssociation, a plan plan, of such scope and in such detail as the Association shall reasonably request, for the future operation of the Project; (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) thereafter, carry out an in-depth review (said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the ProjectAssociation’s comments thereon. Section 3.04. Throughout Without limitation to its obligations under Section 3.01 of this Agreement, the Borrower shall for the purposes of the Project: (a) open and maintain in CFAF in the name of NEA an account (the Project Account) in a bank acceptable to the Association on terms and conditions satisfactory to the Association; (b) deposit into the Project Account an initial amount equivalent to CFAF 30,000,0000; (c) thereafter deposit into the Project Account by June 30 in each year during Project implementation an amount or amounts equal to a total of CFAF 70,000,000 per annum or such greater amount or amounts as may be required for the purposes of the Project; and (d) ensure that amounts deposited into the Project Account pursuant to paragraphs (b) and (c) above shall be used only to make payments to meet expenditures made or to be made in respect of the reasonable cost of goods and services for the Project not financed or to be financed by the Credit. (a) The Borrower shall carry out, jointly with the Association, not 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 (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) NEA’s performance, functioning and management; (iv) the implementation of Project activities, in particular, the environmental impact assessment policies; and (v) financing arrangements for new studies and programs identified during the course of the Project; (b) The Borrower shall, 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 implementationimplementation generally; and (c) The Borrower shall, not later than five weeks after the Borrower shall maintain a Midterm Review, prepare an action program, acceptable to the Association, for the further implementation of the Project coordination unit within SBhaving regard to the findings of the Midterm Review and, thereafter, implement such action program. Section 3.06. The Borrower shall ensure that maintain NEA for the PCU is at all times, during the implementation duration of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by with competent staff in adequate numbers, all with qualifications having qualifications, experience and experience terms and conditions of employment satisfactory to the Bank with functions Association and responsibilities as set forth provided for in the Operational Implementation Manual. Section 3.053.07. The Without limitation upon the provisions of Section 9.06 of the General Conditions, the Borrower shall: (a) maintain policies not later than September 30 in each year, submit to the Association for its review and procedures adequate to enable it to monitor comments, a draft annual work program (including a training program) and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of supporting budget for the Project and for the achievement of the objectives thereofsucceeding calendar year; (b) prepare, under terms of reference satisfactory not later than November 30 in each year: (i) review with the Association the work program and budget referred to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the preceding paragraph; (ii) identify implementation issues and propose appropriate solutions; and (iii) update, as necessary, Project during the period preceding the date of said report timetables and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such dateperformance indicators; and (c) review with not later than December 31 in each year, furnish to the BankAssociation the work program and budget referred to in paragraph (a) hereof, by April 15 of each year during as such program and budget shall have been revised to the implementation satisfaction of the Project or such later date as Association in light of the Bank shall request, the report review referred to in paragraph (b) of this Section, hereof and, thereafter, take all measures required to ensure except as the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this AgreementAssociation shall otherwise agree, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by year in question on the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms basis of the Operational Manual said work program and those of this Agreementbudget, the terms of this Agreement shall prevailas so revised. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, MINED with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical educational practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation or restriction upon the provisions of paragraph (a) of this Section, the Borrower shall: (i) introduce in the national budget for FY 1990 a school maintenance line item and allocate to it funds sufficient to carry out annual main- tenance of schools built, expanded, rehabilitated and refurbished under Part A.1 of the Project; and (ii) carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For The Borrower shall maintain PROFORMA during the purposes of Section 9.07 execution of the General Conditions Project with such responsibilities, powers, services, facilities and without limitation theretostaff, the Borrower shall: (a) prepare, on the basis of guidelines acceptable whose experience and qualifica- tions are satisfactory to the BankAssociation, and furnish as are specified in Schedule 4 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 the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the ProjectAgreement. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basisnot later than April 30, in accordance each year, conduct with the indicators set forth Association annual Project implementation reviews to: (i) discuss annual Project evaluations carried out by PROFORMA; (ii) monitor progress made in the Implementation Letterachieving Project objectives; (iii) exchange information among staff responsible for Project implementation and propose solutions to any current problems; and (iv) update Project timetables and cost estimates, the carrying out of the Project and the achievement of the objectives thereof;and (b) preparepromptly, under terms thereafter, carry out those recommendations arising out of reference satisfactory to said reviews, as agreed between the Bank, Borrower and the Association. Section 3.05. The Borrower shall prepare and furnish to the BankAssociation for its review and comment: (a) not later than March 31, 1989, and March 31, 1990, progress reports on or about February 15 of each year during the implementation following studies: (i) the Study on Financing of the Project a report integrating Education System referred to in Part C.2 (a) (i) of the Project; (ii) the Language Study referred to in Part C.2 (a) (ii) of the Project; (iii) the Education Sector Management Study referred to in Part C.2 (a) (iii) of the Project; and (iv) the Manpower Planning Study referred to in Part C.1 (b) (i) of the Project; and (b) not later than March 31, 1991, the final results of the monitoring and evaluation activities performed pursuant studies referred to in paragraph (a) of this Section. Section 3.06. The Borrower shall, on not later than March 31, 1992, prepare the progress achieved in Borrower’s strategy for financing and managing the carrying out development of the Project during education system, incorporating the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out findings of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report studies referred to in paragraph (ba) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, Project through the PCU, MOH and HIF with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeenvironmental, legal pharmaceutical and technical health care practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project December 31, 2006, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project March 1, 2007, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. Section 3.04. The MOH shall maintain the PCU and PAU until completion of the Project with staff, resources and terms of reference satisfactory to the Bank. Section 3.05. The Borrower shall adopt and maintain the Project Operational Manual in form and content satisfactory to the Bank, and shall not assign, amend, abrogate or waive the Project Operational Manual without a prior approval from the Bank. The Project Operational Manual shall cover, inter alia, the following matters: (a) eligibility criteria for provision of grants under Part C.2 of the Project; (b) the principles and procedures to be followed for the approval of grants; (c) procurement procedures to be followed for the procurement of goods, works and consultants’ services to be financed by the grants under Part C.2 of the Project; (d) Project accounting procedures and internal control; and (e) indicators to be utilized by the PCU in monitoring the progress of the Project. Section 3.06. The Borrower, through the MOH, shall ensure that an adequate financing has been provided in the Borrower’s 2005 fiscal year health budget for the continuous medical education programs developed under the Health Sector Transition Project financed by the International Development Association. Section 3.07. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementBank, carry out the Project in accordance with an operational manual, satisfactory 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 to be prepared by the PCUBank, said manual to include specific rules and procedures a plan for Project implementationthe future operation of the Project; and (b) afford the Operational Manual may be amended by Bank a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, PIU with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeengineering, legal environmental, and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services technical assistance required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, Association and furnish to the Bank 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 BankAssociation, a plan for the future operation of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, Association and furnish to the Bank, Association on or about February 15 of each year during the implementation of the Project December 31, 2002, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project June 30, 2003, or such later date as the Bank Association shall request, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the Bank’s Association views on the matter. (a) Section 3.05. The Borrower shallshall maintain the PIU with powers, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, functions and staffing satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailAssociation. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives objective of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through Project under the PCU, overall responsibility of BNGB with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical management practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For The Borrower shall, by December 31, 1988, take all measures necessary to provide SEPAECI with adequate authority to carry out the purposes of Section 9.07 monitoring of the General Conditions Program and without limitation thereto, the Borrower shall: (a) prepare, with qualified staff in adequate numbers to carry out timely reporting on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the ProjectProgram. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that assign, in accordance with a schedule satisfactory to the PCU is at all timesAssociation, during the implementation of the Projectcounterpart staff, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with whose qualifications and experience satisfactory are satis- factory to the Bank Association, to work with functions the resident advisors and responsibilities as set forth in the Operational Manualshort-term consultants. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letterby December 31, the carrying out 1988, adopt a detailed plan of the Project and the achievement of the objectives thereof; (b) prepareaction, under terms of reference including a schedule, satisfactory to the BankAssociation, and furnish to the Bank, on or about February 15 of each year during the implementation for carrying out training under Part J of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matterProject. (a) Section 3.06. The Borrower shall, without limitation to the other provisions of this Agreementby December 31, 1988, carry out under Part H of the Project the studies on private sector investment incentives, the introduction of domestic commercial banking, the consequences of entry by the Borrower into UMOA and the consequences of the cashew export tax on cashew production and the Borrower’s revenues. Section 3.07. The Borrower shall, by January 31, 1989, review with the Association the role of the Ministry of Plan and the sectoral ministries in accordance with an operational manualplanning, monitoring and implementation of the public investment program and, on the basis of such review, formulate a plan of action, satisfactory to the Bank and Association, with respect to be prepared by additional technical assistance required during the PCU, said manual to include specific rules and procedures Project for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case Ministry of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower Plan and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereofsectoral ministries.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, MINAGRI with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical agricultural practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (a) The Borrower and the Association shall, from time to time, and in any case not later than November 30 of each year before completion of the Project, starting with November 30, 1990, exchange views on the progress achieved in carrying out the Project. (b) Prior to any such exchange of views as specified in paragraph (a) of this Section 3.02and not later than November 30 of each year, the Borrower shall furnish a work program satisfactory to the Association including the following: (i) a project performance review for the current year of Project implementation; (ii) details of the activities to carry out for the following year of Project implementation including provisions relating to staffing and training; (iii) detailed investment and operating budgets broken down by component; (iv) a financing plan indicating the funding for the investment and operating budgets; and (v) a procurement plan for purchases and works comprised in the work program including procedures and timetables. (c) During the exchange of views to take place not later than November 30, 1992, the Borrower and the Association shall also discuss: (i) the impact of fertilizer use on crop yields in the Project Area; (ii) the Borrower’s fertilizer pricing policy to improve cost recovery including retail margins; (iii) the program of public expenditures for the Borrower’s agricultural sector and the Borrower’s budgetary procedures for the financing of the agricultural services to ensure their adequacy for the continued funding of the recurrent costs under the Project; (iv) the impact of the Project on the effectiveness of agricultural services; (v) the efficiency of the agricultural services system under Part A (a) of the Project; and (vi) the timetable for implementation of the system specified in point (c) (v) of this Section in all of the Borrower’s territory. (d) In order to supervise the execution of the Project the Borrower shall also, not later than July 31 of each year before Project completion, furnish to the Association a semiannual progress report reviewed by NCC. (a) In order to finance its share of the Project operating costs and without limitation to the generality of Section 3.01 with regard to the provision of funds, the Borrower shall: (i) until December 31, 1992, make adequate allocations in its development budget; (ii) starting not later than January 1, 1993, make adequate allocations in its recurrent budget; and (iii) earmark the allocations under paragraph (ii) of this Section and identify them as a line item. (b) In order to disburse the allocations made, pursuant to paragraph (a) of this Section, the Borrower shall: (i) open, and thereafter maintain, in Franc Rwandais and in the name of MINAGRI-Agricultural Services Project, an account in the National Bank of Rwanda on terms and conditions satisfactory to the Association; (ii) deposit into such Project Account an initial amount of FRW 15,000,000; and (iii) thereafter deposit quarterly into the Project Account, each year during Project implementation, a sum necessary to replenish the Project Account up to the original amount of FRW 15,000,000. (c) Amounts deposited into the Project Account pursuant to paragraph (b) of this Section shall be: (i) further deposited in local sub-accounts in a manner satisfactory to the Association; and (ii) used only to make payments to meet local expenditures made or to be made in respect of the reasonable cost of goods and services for the Project and not eligible for financing under the Credit. Section 3.04. In order to carry out Part A of the Project, the Borrower shall: (a) not later than June 30, 1990 enter through MINAGRI into Implementation Agreements with at least seven (7) communes and/or farmers groups included in the Project Area, on terms and conditions satisfactory to the Association, defining their tasks in Project implementation and the relating financing arrangements; and (b) exercise its rights under any of the Implementation Agreements in such manner as to protect the interests of the Borrower and the Association, to accomplish the purposes of the Credit and shall not assign, amend, abrogate or waive any of the Implementation Agreements or any provisions thereof without the consent of the Association. Section 3.05. In the carrying out of Part A of the Project, unless the Association shall otherwise agree, the Borrower shall also ensure that the following number of forestry nurseries financed under the Project be transferred to and operated by farmers groups: (i) not less than eighty (80) by December 31, 1992; (ii) not less than one hundred and sixty (160) by December 31, 1993; and (iii) the remainder by December 31, 1994. Section 3.06. In the carrying out of Part A of the Project, the Borrower shall also: (a) make available the housing for higher-level field staff of MINAGRI under the Project at rentals sufficient to cover at least the cost of maintenance of such housing, but in any event not less, on an annual basis, than one percent (1%) of investment cost, and ensure that such rentals be collected by MINAGRI on the basis of lease agreements satisfactory to the Association; (b) ensure that the rentals specified in paragraph (a) of this Section be held by MINAGRI-Agricultural Services Project in a bank account to be designated "Rental Account" and used by prefecture coordinators for the maintenance purposes specified in paragraph (a) of this Section; (c) ensure that the credits provided to extension staff for the purchase of bicycles and motorcycles under the Project be regulated by loan agreements satisfactory to the Association; (d) ensure that the repayments specified in paragraph (c) of this Section be held by MINAGRI-Agricultural Services Project in a bank account to be designated "Vehicles Account" and used exclusively for the purchase of new vehicles for extension staff; and (e) not later than the date falling six (6) months after the Effective Date, submit plans satisfactory to the Association for the management of the center in Gishiyita to be financed under Part A (c) of the Project, including proposals for its transfer to the private sector or farmers groups. Section 3.07. In the carrying out of Part D of the Project the Borrower shall: (a) recover the direct cost of production of selected seed production in accordance with the following schedule: (i) 65% not later than December 31, 1990; (ii) 80% not later than December 31, 1991; and (iii) 100% not later than December 31, 1992; (b) not later than June 30, 1990 submit to the Association for review and comment draft technical criteria on seed production and certification prepared by SSS; (c) promptly afterwards, submit such criteria to NSC for approval; and (d) not later than January 31, 1991: (i) issue guidelines on seed production and certification based on the criteria specified in paragraphs (c) and (d) of this Section; and (ii) empower SSS to control and certify seed quality. Section 3.08. In order to carry out Part E of the Project the Borrower shall: (a) not later than March 31, 1990 enter through MINAGRI- Agricultural Services Project into Cooperation Agreements, on terms and conditions satisfactory to the Association, with: (i) BP, including, inter alia, the provision of agricultural credit by BP and the establishment of a fund to be financed under Part E of the Project to guarantee such provision; and (ii) XXXXX, providing, inter alia, for the training of cooperatives members in bookkeeping, inventory management, preparation of loan applications and the fostering of inter-cooperative relationships in the Project area; and (b) exercise its rights under any of the Cooperation Agreements in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit and shall not assign, amend, abrogate or waive any of the Cooperation Agreements or any provision thereof without the consent of the Association. Section 3.09. The Borrower shall appoint within MINAGRI not later than December 31, 1991, an agro-economist, to be responsible for assisting the Project administrator to coordinate the activities under Part C of the Project, and whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. Section 3.10. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, and, Project as set forth in Schedule 2 to this Agreement. To this end, without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower: (i) shall carry out the Project, act through the PCU, with due diligence and efficiency and in conformity with appropriate financial, administrative, legal and technical practices, RFLR and shall providecause the RFLR to perform in accordance with the provisions of the Project Agreement all the obligations of the RFLR therein set forth; (ii) shall take or cause to be taken all action, promptly as needed, including the provision of funds, facilities, services and other resources required resources, necessary or appropriate to enable the RFLR to perform such obligations; and (iii) shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make the proceeds of the Loan available to the RFLR on a grant basis under arrangements satisfactory to the Bank for the sole purpose of carrying out the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 1 to this the Project Agreement. Section 3.03. For The Bank and the purposes of Section 9.07 Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and without limitation theretoservices, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by the Borrower shall: (a) prepare, on the basis of guidelines acceptable RFLR pursuant to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation Section 2.03 of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the ProjectProject Agreement. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall, with the assistance of the RFLR: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, or cause to be prepared, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project September 30, 1998, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankBank and the RFLR, by April 15 of each year during the implementation of the Project October 31, 1998, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, and thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeengineering, legal public utility, and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. In order to assist the Borrower in the carrying out of the Project, the Borrower shall employ consultants whose qualifications, experience and terms of reference shall be satisfactory to the Bank. Section 3.03. Except as the Bank shall otherwise agree, procurement of the goods and related services, and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.033.04. For The Borrower shall: (a) prepare, by December 31, 1996, a comprehensive program including detailed guidelines, satisfactory to the purposes Bank, for the rehabilitation of the 110 kV network in conjunction with the rehabilitation of the 400 and 220 kV networks; and (b) issue such guidelines by June 30, 1997; (b) prepare, by June 30, 1996, a program, satisfactory to the Bank, to introduce environmentally constrained economic dispatching in its operations and implement this by December 31, 1996; and (c) prepare, by December 31, 1995, a study, under terms of reference satisfactory to the Bank, on the use of Poly- Chlorinated Biphenyls for the 110 kV distribution network in the territory of the Guarantor. Section 9.07 3.05. Without limitation upon the provisions of Article IX of the General Conditions and without limitation theretoConditions, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) thereafter, carry out an in-depth review (the mid-term review), jointly said plan with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) due diligence and assisted by staff in adequate numbers, all with qualifications efficiency and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.appropriate practices,

Execution of the Project. Section 3.01. (a) The Borrower Federation declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to the Interim Fund Development Credit Agreement, and, to this end, shall carry out Part A of the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal engineering and technical educational practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for Part A of the Project. Section 3.02. (a) Except as the Bank Administrator shall otherwise agree, procurement of the goods goods, works and consultants’ services required for Part A of the Project and to be financed out of the proceeds of the Loan Interim Fund Credit shall be governed by the provisions of the Schedule 4 to this Agreement. (b) The Federation shall coordinate with the PMAU for purposes of procurement monitoring and audit of Part A of the Project. Section 3.032.03. The Federation shall maintain a PIU under terms of reference and with staffing and other resources acceptable to the Administrator. The PIU shall be headed by a coordinator and shall have overall responsibility for the management and coordination of Part A of the Project. Section 2.04. The Federation shall: (a) not later than September 30, 1997, prepare and furnish to the Administrator, an education and administration study to develop recommendations on the appropriate educational functions to be carried out at each level of the government and the appropriate financing sources for those functions; (b) review and agree with the Administrator, by October 31, 1997, or such later date as the Administrator shall agree, the findings and recommendations of such study, and thereafter, take all measures required to ensure implementation of the said study. (a) The Federation 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) in respect of this Project Agreement. (b) For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower Federation shall: (ai) prepare, on the basis of guidelines acceptable to the Bank, Administrator and furnish to the Bank 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 Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.six

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, through the PCUOVPM, with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical practices, and shall provide, promptly as needed, the funds, facilities, services 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, through OVPM, in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. Without limitation to its obligations under Section 3.01 of this Agreement, the Borrower shall: (a) open and maintain an account (the Project Account) in Cape Verde Escudo in BCV on terms and conditions satisfactory to the Association; (b) promptly thereafter, deposit the Initial Deposit into such account to finance the Borrower’s contribution to the Project; (c) deposit into the Project Account until the completion of the Project, such amounts as shall be required to replenish in a timely manner the Project Account in an amount equal to at least the expected expenditures of the following quarter; and (d) use the Project Account funds 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 BankAssociation, and furnish to the Bank 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 BankAssociation, a plan for designed to ensure the future operation sustainability of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, and, to this end, Recipient shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical industrial sector 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 Recipient and the Administrator shall otherwise agree, the Recipient shall carry out the Project in accordance with the Implementation Program set forth in Schedule 3 to this Agreement. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the purposes of Section 9.07 operations, resources and expenditures in respect of the General Conditions and without limitation thereto, Project of the Borrower departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) prepareof this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator 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. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation statements of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementationexpenditure, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower Recipient shall: (ai) maintain policies and procedures adequate or cause to enable it to monitor and evaluate on an ongoing basisbe maintained, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on records and accounts reflecting such expenditures; (ii) retain, until at least one year after the progress achieved Administrator has received the audit report for the fiscal year in which the carrying out of last withdrawal from the Project during Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the period preceding the date of said report and setting out the measures recommended Administrator’s representatives to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following examine such daterecords; and (civ) review with ensure that such records and accounts are included in the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report annual audit referred to in paragraph (b) of this SectionSection and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement together with the United Nations Development Programme (UNDP) under terms procedures and conditions satisfactory internal controls involved in their preparation, can be relied upon to support the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreementrelated withdrawals. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal engineering and technical practicesfinancial 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 the Project. Section 3.02. Except as the Bank (b) The Borrower shall otherwise agreeprovide, procurement of the goods and consultants’ services required for the Project and or provide through one or more Financial Agents, to be financed out of Beneficiaries the proceeds of the Loan under Sub-loan Agreements, with terms and conditions satisfactory to the Bank, which shall be governed include those set forth in Schedule 4 to this Agreement, and in accordance with the Operating Manual. (c) The Borrower shall enter into a Financial Administration Agreement with each Financial Agent, with terms and conditions satisfactory to the Bank, including provision for the payment of fees by the provisions Borrower to each said Financial Agent as set forth in paragraph 7 (c) of Schedule 4 to this Agreement. Section 3.03. For (d) The Borrower shall exercise its rights under each Financial Administration Agreement and shall cause each Financial Agent to exercise its rights under each Sub-loan Agreement in such manner as to protect the interests of the Bank, the Borrower and said Financial Agent and to accomplish the purposes of Section 9.07 of the General Conditions and without limitation theretoLoan, and, except as the Bank shall otherwise agree, the Borrower shall:shall not assign, amend, abrogate, or waive the Financial Administration Agreement or any provision thereof and shall cause said Financial Agent not to assign, amend, abrogate or waive any Sub-loan Agreement or any provision thereof. (a) prepareSection 3.02. The Borrower shall establish and thereafter maintain the PIT with qualified and experienced staff, on the basis of guidelines acceptable satisfactory to the Bank, including a team leader and furnish two professional staff, to manage 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 the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the ProjectAPAP. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.053.03. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 January 31 of each year during the implementation of the Project calendar year, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and; (c) review with the Bank, by April 15 of each year during the implementation of the Project January 31, 1997, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, and thereafter, 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 said report and the Bank’s views on the matter. Section 3.04. Except as the Bank shall otherwise agree, procurement of goods and services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of paragraph 8 (b) of Schedule 4 to this Agreement. Section 3.05. For the purposes of Section 9.07 of the General Conditions, and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation to on the other provisions basis of this Agreement, carry out the Project in accordance with an operational manual, satisfactory guidelines acceptable to the Bank and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be prepared by agreed for this purpose between the PCUBank and the Borrower, said manual to include specific rules and procedures a plan for Project implementationthe future operation of the Project; and (b) afford the Operational Manual may be amended by Bank a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives objective of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCUMME, with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal regulatory and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) In carrying out any activity under the Project, the Borrower, through MME, shall seek the collaboration of any entity (including, inter alia, the Borrower’s Ministry of the Environment and XXXXX) which may have a relevant interest in the carrying out of such activity, such collaboration to include, inter alia, assistance to the Borrower in the preparation of terms of reference of consultants and the formulation of training activities. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For The Borrower shall establish and thereafter maintain during the execution of the Project a unit within MME’s Executive Secretariat for purposes of Section 9.07 coordinating and managing the carrying out of the General Conditions Project, and without limitation theretohaving responsibility for all disbursement, procurement and financial management activities under the Borrower shall: Project (a) preparethe PIU), on the basis of guidelines acceptable such unit to have a structure and functions satisfactory to the Bank, and furnish qualified staff in adequate numbers as required 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 the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of its responsibilities under the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in Annex 1a of the Implementation LetterBank’s Project Appraisal Document for the Project, the carrying out of the Project and the achievement of the objectives objective thereof;; and (b) prepare, under terms of reference satisfactory to the Bank, and furnish to review with the Bank, on the 24th month after the Effective Date or about February 15 of each year during when disbursements from the implementation Loan Account have reached an amount equal to 50% of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this SectionLoan amount, on whichever occurs first, the progress achieved in the carrying out of the Project during the period preceding the date of said report such review, based on the monitoring and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report evaluation activities referred to in paragraph (ba) of this Sectionabove, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives objective thereof, based on the conclusions and recommendations of the said report and the Bank’s views on the matterreview. Section 3.05. The Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementBank, carry out the Project in accordance with an operational manual, satisfactory and furnish 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 Borrower and the Bank, a plan designed to be prepared by ensure the PCU, said manual to include specific rules and procedures for Project implementationcontinued achievement of the objective of the Project; and (b) afford the Operational Manual may be amended by Bank a reasonable opportunity to exchange views with the Borrower from time to timeon said plan. Section 3.06. The Borrower shall, in a manner satisfactory to starting not later than two months after the BankEffective Date, to facilitate continued Project implementation. In case of any conflict between and every nine-month period thereafter during the terms execution of the Operational Manual and those of this AgreementProject, exchange views with the terms of this Agreement shall prevail. (a) For Bank on the purposes of providing assistance to progress achieved by the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf implementation of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement’s ongoing energy sector reform program. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, Project as set forth in Schedule 2 to this end, shall carry out the Project, through the PCU, with due diligence and efficiency and in conformity with appropriate financial, administrative, legal and technical practicesAgreement, and to this end shall provide, provide promptly as needed, the funds, facilities, services and other resources required for the Project, and, through the Secretariat and the Borrower’s representatives in the Technical Committee, shall carry out the Project, with due diligence and efficiency and in conformity with appropriate administrative, financial, information communications technology, participatory, environmental and social standards and practices, as well as in accordance with the Operational Manual and the monitoring indicators set forth in the Implementation Letter. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. (a) The Borrower, through the Coordinator and with the assistance of NAFIN pursuant to the NAFIN Administrative Agreement, shall establish and maintain, throughout Project implementation, a project coordinating unit, assigned with staff in adequate numbers and with qualifications, experience, functions and responsibilities satisfactory to the Bank, including, inter alia, the following functions: (i) monitoring the implementation of the Project and ensuring effective coordination among staff and institutions responsible for the implementation of the Project; (ii) preparing and submitting to the Bank the reports referred to in Section 3.033.06 (b) of this Agreement; (iii) reviewing, jointly with the Borrower and the Bank, the progress achieved by the Borrower in the implementation of the Project on the basis of the annual reports referred to in Section 3.06 (b) of this Agreement, and carrying out the actions required for the subsequent implementation of the Project; and (iv) identifying and informing the Bank of any possible obstacle or difficulty affecting or threatening to affect Project implementation. (b) Without limitation or restriction upon Section 3.01 above, the Borrower, through the Secretariat, shall provide, promptly as needed, the funds, facilities, services, staff and other resources required for the discharge of the functions of the PCU. Section 3.04. For Except as the Borrower, through the Coordinator, and the Bank shall otherwise agree, the Borrower shall carry out, and shall cause the Management Entity, Eligible Local Governments and NGOs to carry out their respective activities under the Project, in accordance with the terms of: (a) the Implementation Letter; and (b) a manual, satisfactory to the Bank (the Operational Manual), containing detailed procedures for the carrying out of the Project, including, inter alia: (i) criteria to determine the eligibility of MSB, associations, youth and States and Municipalities for the purposes of receiving financing or technical assistance under the Project; (ii) criteria to determine the eligibility of NGOs to participate under Part D of the Project (including, legal personality, legal and technical capacity and resources required to carry out the activities set forth under Part D of the Project); (iii) terms, conditions and standard contractual documentation for the provision of Eligible MSB Grants and Vouchers financed under the Project, including the provisions set forth in Schedule 6 to this Agreement; (iv) terms, conditions and standard contractual documentation for NGO Agreements and Local Government Agreements (including the obligation of Eligible Local Governments to finance at least 25% of the activities to be carried out in their respective jurisdiction under Part E of the Project); (v) terms, conditions and procedures for the review, assessment and approval of E-business Competitiveness Plans financed under the Project; (vi) detailed terms and procedures for the establishment and implementation of accounting, auditing and financial management systems for the Project; (vii) procedures and requirements for the procurement of goods and consultants’ services financed under the Project; (viii) terms, requirements and indicators for the implementation, monitoring and supervision of the Project (including for the monitoring of the performance of the Management Entity, NGOs, Eligible Local Governments, Eligible MSBs and Eligible Youth); and (ix) minimum operational standards of the facilities referred to in Part B.5 of the Project. Except as the Bank shall otherwise agree, the Borrower shall not amend, waive or fail to enforce the Operational Manual, or any provision thereof. In case of any conflict between the terms of this Agreement and those of the Operational Manual, the terms of this Agreement shall prevail. (a) Without limitation upon the provisions of Section 3.01 of this Agreement, the Borrower shall, through the Coordinator: (i) enter into an agreement (the Management Agreement) with an entity (the Management Entity) with qualifications and experience acceptable to the Bank and on terms and conditions satisfactory to the Bank, whereby the Management Entity shall agree to assist the Borrower with the implementation and supervision of Part B of the Project following instructions of the PCU, and under which the Management Entity shall, inter alia, agree to enter into grant agreements with Eligible MSBs and Eligible Associations (the Eligible MSB Grant Agreements) for the carrying out of Part B.3 of the Project, and distribute Vouchers to Eligible MSBs for the carrying out of Part B.4 of the Project, all of the above to be carried out in accordance with the terms and conditions of the Implementation Letter, the Operational Manual and this Agreement; (ii) enter into agreements with NGOs (the NGO Agreements) with qualifications and experience acceptable to the Bank and on terms and conditions satisfactory to the Bank, whereby the relevant NGO shall agree to assist the Borrower with the implementation and supervision of Part D of the Project, all of the above to be carried out in accordance with the terms and conditions of the Implementation Letter, the Operational Manual and this Agreement; (iii) enter into agreements with Eligible Local Governments (the Local Government Agreements) on terms and conditions satisfactory to the Bank, whereby the relevant Eligible Local Government shall agree to participate in Part E of the Project in accordance with the terms and conditions of the Implementation Letter, the Operational Manual and this Agreement; and (iv) enter into an administrative agreement with NAFIN (the NAFIN Administrative Agreement) on terms and conditions satisfactory to the Bank, whereby NAFIN shall agree to: (i) assist the Borrower in the execution of the Project (including the carrying out of procurement and reporting responsibilities) following instructions of the Coordinator; and (ii) allocate adequate staff and resources for said purpose. (b) Without limitation upon the provisions of Section 3.01 of this Agreement, the Borrower shall enter into an agreement (Contrato xx Xxxxxxx) with NAFIN (the NAFIN Agreement) on terms and conditions satisfactory to the Bank, whereby NAFIN shall agree to represent the Borrower vis-à-vis the Bank for purposes of submitting Loan withdrawal applications to the Bank in form and substance sufficient to justify disbursement by the Bank to the Borrower of Loan proceeds, agrees to maintain and operate the Special Account in compliance with the terms of this Agreement, agrees to ensure that the obligations set forth in Article IV of this Agreement are complied with as pertain to the Special Account and agrees to participate in the periodic reviews referred to in Section 3.06 (c) of this Agreement. (c) The Borrower, through SHCP or the Secretariat, as it may correspond, shall ensure that the Management Agreement, each NGO Agreement, each Local Government Agreement, the NAFIN Administrative Agreement and the NAFIN Agreement be duly authorized or ratified by, and executed and delivered by, the Management Entity, the corresponding NGO, the corresponding Eligible Local Government and NAFIN, respectively, and that each of said agreements be legally binding upon the Management Entity, the corresponding NGO, the corresponding Eligible Local Government and NAFIN, respectively, in accordance with the relevant Management Agreement’s, NGO Agreement’s, Local Government Agreement’s, the NAFIN Administrative Agreement’s and the NAFIN Agreement’s terms. (d) The Borrower, through SHCP or the Secretariat, as it may correspond, shall exercise its rights and comply with its obligations under the Management Agreement, each NGO Agreement, each Local Government Agreement, the NAFIN Administrative Agreement and the NAFIN Agreement in such a manner as to protect the interests of the Borrower and of the Bank, and to accomplish the purposes of the Project, and except as the Bank shall otherwise agree, the Borrower shall not amend, waive or fail to enforce any of such agreements or any provision thereof. In case of any conflict between the terms of this Agreement and those of the Management Agreement, or any NGO Agreement, or any Local Government Agreement, the NAFIN Administrative Agreement or the NAFIN Agreement, the terms of this Agreement shall prevail. The Borrower shall promptly inform the Bank of any condition which interferes or threatens to interfere with the performance of the Borrower, the Management Entity, the relevant NGO, the Eligible Local Government or NAFIN of their respective obligations under such agreements. Section 3.06. Without limitation upon the provisions of Section 9.07 of the General Conditions and without limitation theretoConditions, the Borrower shallBorrower, through the PCU, shall during the execution of the Project: (a) preparemaintain, on the basis of guidelines acceptable or cause to the Bankbe maintained, 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 the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it the PCU to monitor and evaluate on an ongoing basis, basis (in accordance with the indicators set forth in the Implementation Letter, Monitoring Indicators) the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, prepare and furnish to the Bank, on or about February 15 of by not later than March 31, in each year during of Project implementation, reports, in a format satisfactory to the implementation of the Project a report Bank, integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out which reports shall include, inter alia: (i) a detailed description of the Project activities completed during the period twelve months preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.report;

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, Gost with due diligence and efficiency and in conformity with appropriate financial, administrative, legal administrative and technical financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Until completion of the Project, the Borrower shall maintain, within Gost a Project Preparation and Implementation Unit (PPIU) responsible to Gost with adequate authority to coordinate, supervise and report on the execution of the Project and with a staff of competent individuals in sufficient numbers. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project 28, 1997, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project March 31, 1997, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, and thereafter, take all measures required to ensure the efficient completion of the Project project and the achievement of the objectives thereof, based on the conclusions and recommendations of the said report and the Bank’s views on the matter. Section 3.04. For the purpose of Section 9.08 of the General Conditions, the Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementBank, carry out the Project in accordance with an operational manual, satisfactory 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 to be prepared by the PCUBank, said manual to include specific rules and procedures a plan, for Project implementationthe future operation of the Project; and (b) afford the Operational Manual may be amended by Bank a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, Treasury with due diligence and efficiency and in conformity with appropriate financial, administrative, legal accounting and technical administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, through the Treasury, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project December 31, 1999, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project February 15, 2000, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) Section 3.04. The Borrower shall, without limitation until the completion of the Project, maintain: (a) the Inter-Agency Coordinating Council (ICC), established pursuant to the other provisions Resolution of this Agreementthe Cabinet of Ministers No. 305, carry out dated April 3, 1997, which includes representatives of the Borrower’s Ministries of Finance and Economy, the Treasury, the National Bank of Ukraine and the National Agency for Reconstruction and Development; the ICC shall be responsible for overseeing the overall implementation of the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual Treasury and advising the Treasury on policy issues relating to include specific rules and procedures for Project implementationoperation of the treasury system; and (b) the Operational Manual may Project Implementation Unit (PIU), established pursuant to the Order of the Treasury No. 135, dated December 19, 1997, which shall be amended headed at all times by a person with qualifications, experience and terms of reference satisfactory to the Bank and shall include qualified staff in adequate numbers; the PIU shall be responsible for implementing the Project, including administration, accounting, disbursement, procurement and reporting activities under the Project. Section 3.05. The Borrower from time to timeshall cause the Treasury to: (a) carry out, in by December 31, 1998, a manner comprehensive functional and effectiveness review of Treasury’s operations under terms of reference satisfactory to the Bank; (b) submit to the Bank by February 1, to facilitate continued Project implementation. In case 1999, for review and comment, the results and recommendations of any conflict between such review; and (c) by May 1, 1999, commence the terms implementation of recommendations made as part of the Operational Manual said review, taking into account the Bank’s comments thereon. Section 3.06. For the purposes of Section 9.07 of the General Conditions and those of this Agreementwithout limitation thereto, the terms of this Agreement shall prevail.Borrower shall: (a) For prepare, on the purposes basis of providing assistance guidelines acceptable to the Borrower in the procurement of goods Bank, and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory furnish to the Bank not later than six (6) months after the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of Closing Date or such later date as may be agreed for this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of purpose between the Borrower and the Bank and to accomplish Bank, a plan for the purposes future operation of the LoanProject; and (iib) except as afford the Bank may otherwise agree, a reasonable opportunity to exchange views with the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereofon said plan.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, shall carry out Parts A and C of the Project, through MP, Parts B and D of the PCUProject, through MF, and Part E of the Project, through MP and MF jointly, all with due diligence and efficiency and in conformity with appropriate financial, administrative, legal fiscal management and technical practicesfinancial practices and the provisions of the MF-MP Arrangement, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For The Borrower, through MP and MF, shall establish and maintain, during Project implementation, one unit for each of said ministries (the purposes PCUs); each headed by a Project coordinator and with the necessary staffing and assistance required for: (i) managing and coordinating the carrying out of Section 9.07 their respective Project activities; (ii) serving as liaison between such ministries, the Bank and any other entity involved in Project implementation; and (iii) consolidating reports and information on their respective components of the General Conditions Project, including Project financial management, procurement and without limitation theretodisbursement activities. Section 3.04. The Borrower shall furnish to the Bank reports by an independent information technology expert or firm on the carrying out of Part D of the Project during the period preceding the date of each such report, the Borrower shallas follows: (a) preparea first report, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) three months after the Closing Date completion of such report or such later twelve months after the date as may be agreed for of this purpose between the Borrower and the Bank, a plan for the future operation of the ProjectAgreement; (b) afford a second report, not later than 12 months after the Bank a reasonable opportunity date of delivery of the first such report to exchange views with the Borrower on said planBank; and (c) carry out an in-depth review (a third report, not later than 12 months after the mid-term review), jointly with date of delivery of the second such report to the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators agreed with the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof;; and (b) prepare, under terms of reference satisfactory to the Bank, and furnish to review with the Bank, on the 24th month after the Effective Date, or about February 15 of each year during such later date as the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this SectionBank shall request, on the progress achieved in the carrying out of the Project during the period preceding the date of said report such review, based on the monitoring and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report evaluation activities referred to in paragraph (ba) of this Sectionabove, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives objective thereof, based on the conclusions and recommendations of the said report and the Bank’s views on the matterreview. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out Part A of the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal engineering and technical public utility practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for said Part A of the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Bank and the Borrower shall otherwise agree, the Borrower shall carry out Part A of the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. (c) The Borrower shall enter into an energy sales agreement with TEAS, on the basis of terms of reference satisfactory to the Bank, setting forth the energy purchase and sales arrangements between the Borrower and TEAS. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the The Borrower shall: : (a) prepare, on the basis following an exchange of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 by October 31 in each year, a Corporate Performance Plan (CPP) for the following fiscal year of each year the Borrower, which shall set forth, in a manner consistent with the Borrower’s obligations under the Loan Agreement: (i) the physical targets for the Borrower, including the components of the Program to be carried out during the implementation concerned fiscal year and the investments under such components to be financed from the proceeds of the Project Loan; (ii) the financial targets for the Borrower, including a report integrating financial projection showing whether the results of the monitoring and evaluation activities performed pursuant to paragraph Borrower would comply with its obligations under Section 5.02 (a) of this SectionAgreement, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project for financial restructuring and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the actions to be taken towards implementation of the Project or such later date as the Bank shall requestFMIP, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (biii) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual operational and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of commercialization targets for the Borrower, records and accounts adequate including actions to reflect the operations, resources and expenditures be taken towards implementation of the ProjectOMIP, in order to enable and (iv) the Borrower to comply with its obligations under Sections 4.01 Borrower’s levels of services, borrowing needs, financing plan and 4.02 of this Agreement. (i) The Borrower shall exercise its rights tariff levels and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.structures;

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, through Project or cause the PCU, Project to be carried out with due diligence and efficiency and in conformity with appropriate financialagricultural, administrative, legal administrative and technical financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall make available to Bela Vista EEA and Uba Budo EEA, respectively, under terms and conditions which shall have been approved by the Association, as a contribution to said EEAs’ equity, the proceeds of the Credit allocated to: (i) Category (1) set forth in the table in paragraph 1 of Schedule 1 to this Agreement to Bela Vista EEA; and (ii) Category (2) set forth in said table to Uba Budo EEA. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. (a) For the purposes of Section 9.07 assisting the Borrower in coordinating the execution of the General Conditions Project by the departments and without limitation theretoagencies of the Borrower, the Borrower shall: shall establish, and thereafter maintain, a Project Support Unit (aPSU) preparein the MADR, on the basis of guidelines acceptable which shall report directly to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation Minister of the Project;MADR. (b) afford the Bank The PSU shall be adequately staffed, including: (i) a reasonable opportunity to exchange views Project Coordinator, employed in accordance with the Borrower on said planprovisions of Section II of Schedule 3 to this Agreement; and(ii) a qualified and experienced Deputy Project Coordinator, acceptable to the Association; and (iii) at least one support staff in charge of accounting and administrative services. (c) carry out an in-depth review The PSU shall be responsible for, inter alia: (i) the mid-term review), jointly proper flow of information between all parties concerned with the BankProject; (ii) Project administration, on including the flow of Project funds; and (iii) monitoring and evaluation of progress achieved in the implementation execution of the Project, including the preparation of progress reports. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that shall, not later than March 31, 1988: (a) adopt measures to provide the PCU is at EEAs with effective management autonomy; (b) elaborate and implement a flexible salary system for field workers and team leaders; and (c) authorize the EEAs to hire staff and dismiss redundant or undisciplined staff; all times, during the implementation of the Project, headed by in a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience manner satisfactory to the Bank with functions and responsibilities as set forth in the Operational ManualAssociation. Section 3.05. The Borrower shall: (a) maintain policies not later than December 31, 1987, or such other date as the Association may agree, furnish to the Association, for its review and procedures adequate approval, draft statutes for Bela Vista EEA and Uba Budo EEA; and (b) ensure that said statutes come into force promptly after the Association’s approval. Section 3.06. The Borrower shall, not later than December 31, 1987: (a) cause Bela Vista EEA and Uba Budo EEA to: (i) establish rules, acceptable to enable it the Association, determining who is entitled to monitor reside On the estates of Bela Vista EEA and evaluate Uba Budo EEA; and (ii) confirm the rights of the workers employed at said time by said EEAs to reside on an ongoing basissaid estates with their families; and (b) relocate families not entitled to reside on said EEAs’ estates, in accordance with a plan acceptable to the indicators set forth in the Implementation LetterAssociation. Section 3.07. The Borrower shall: (a) at all times, the carrying out of the Project ensure that agricultural equipment and the achievement of the objectives thereofinputs are available to smallholders; (b) preparenot later than December 31, under terms 1988, review in consultation with the Association the system of reference satisfactory to the Bank, import and furnish to the Bank, on or about February 15 sale of each year during the implementation of the Project a report integrating the results of the monitoring such equipment and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such dateinputs; and (c) based on such review, promptly thereafter, modify such system in a manner acceptable to the Association. Section 3.08. The Borrower shall: (a) not use or permit its EEAs to use chemicals detrimental to the environment, including such chemicals as the Association may from time to time designate to this effect in writing to the Borrower; (b) not later than September 30, 1988, submit to the Association, for its review with the Bankand approval, by April 15 of each year during the implementation a plan to monitor and control chemical residues in streams and other parts of the Project or biosphere, and thereafter implement such later date as plan; and (c) cause the Bank shall request, the report management firms referred to in paragraph (b) Section II of Schedule 3 to this SectionAgreement to train workers in Bela Vista EEA and Uba Budo EEA in the safe use of chemicals. Section 3.09. The Borrower shall, andnot later than September 30, thereafter1988, take all measures required exchange views with the Association on the strategies in the areas referred to ensure the efficient completion in Part E.4 of the Project and the achievement contents of the objectives thereofstudies included in Part E.5 of the Project, based on the conclusions recommendations included therein and recommendations action plans for the implementation of said report strategies and the Bank’s views on the matterrecommendations. (a) The Borrower shall, without limitation to and the other provisions Association shall undertake a joint interim review of this Agreement, carry out the Project in accordance cooperation with an operational manualBela Vista EEA, satisfactory to Uba Budo EEA and the Bank three units for applied research, training and to be prepared by food crop development under Part E. 1, 2 and 3 of the PCUProject, said manual to include specific rules and procedures for Project implementation; andnot later than December 31, 1989, or such other date as the Association may agree. (b) the Operational Manual may be amended by Thereafter, the Borrower from time shall promptly take, and cause the entities referred to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. paragraph (a) For of this Section to take, such measures as the purposes Association shall consider adequate on the basis of providing assistance such review to ensure the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf achievement of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures objectives of the Project, Project as set forth in order Schedule 2 to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in Section 3.11. Not later than June 30, 1991, or such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except other date as the Bank Association may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail furnish to enforce the UNDP Agreement or any provision thereofAssociation for its review a plan to pursue the objectives of the Project after the Project’s completion.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCU, PIU with due diligence and efficiency and in conformity with appropriate administrative, financial, administrativeengineering, legal environmental, and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the services, goods and consultants’ services works required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. 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 Bank, Association and furnish to the Bank 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 BankAssociation, a plan for the future operation of the Project;; and (b) afford the Bank Association a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in the Implementation LetterAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, Association and furnish to the Bank, Association on or about February 15 of each year during the implementation of the Project December 31, 2000, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAssociation, by April 15 of each year during the implementation of the Project June 30, 2001, or such later date as the Bank Association shall request, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the Bank’s Association views on the matter. (a) Section 3.05. The Borrower shallshall maintain the PIU with powers, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, functions and staffing satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailAssociation. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, Project through the PCUMOJ, SLC, and local governments of the Borrower, with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal and technical information technology 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 Bank shall otherwise agree, the Borrower shall: (i) maintain the PIU until the completion of the Project, and ensure that the PIU functions at all times in accordance with procedures, under terms of reference, and with staff and budgetary resources necessary to meet the objectives of the Project and satisfactory to the Bank; and (ii) carry out the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set forth in Borrower and the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof, and the feasibility of implementing Project objectives on a national level; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project October 31, 1998, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date, and the planned actions to implement Project objectives on a national level; and (c) review with the Bank, by April 15 of each year during the implementation of the Project November 30, 1998, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. Section 3.04. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation on the basis of guidelines acceptable to the other provisions of this AgreementBank, carry out the Project in accordance with an operational manual, satisfactory 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 to be prepared by the PCUBank, said manual to include specific rules and procedures a plan for Project implementationthe future operation of the Project; and (b) afford the Operational Manual may be amended by Bank a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower Recipient declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, technical, administrative, legal and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For the purposes of Section 9.07 1.23 of the General Conditions and without limitation thereto, the Borrower Recipient shall: (a) prepare, on the basis of guidelines acceptable to the BankAdministrator, and furnish to the Bank 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 Recipient and the BankAdministrator, a plan for designed to ensure the future operation continued achievement of the Project;’s objectives; and (b) afford the Bank Administrator a reasonable opportunity to exchange views with the Borrower Recipient on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower Recipient shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in agreed upon from time to time between the Implementation LetterRecipient and the Administrator, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAdministrator, and furnish to the BankAdministrator, on or about February 15 of each year during the implementation of the Project September 1, 2002, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph subparagraph (a) of this Sectionabove, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAdministrator, by April 15 of each year during the implementation of the Project December 1, 2002, or such later date as the Bank Administrator shall request, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the BankAdministrator’s views on the matter. (a) Section 3.05. The Borrower shall, without limitation to Recipient shall ensure that the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to Environmental Management Plan be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, implemented in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailtimely manner. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agree- ment, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal engineering and technical public utility practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank shall otherwise agree, procurement pro- curement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project;; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all timesshall, during the implementation until completion of the Project, headed by a Project coordinator (maintain the PIU with functions and powers and adequate staff, funds, facilities and other resources reasonably required to carry out the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience a manner satisfactory to the Bank with functions and responsibilities as set forth in the Operational ManualBank. Section 3.05. The Borrower shall: (a) shall maintain policies and procedures pro- cedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators agreed with the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof;. Section 3.06. The Borrower shall, for purposes of financing Project costs, open in local currency equivalent to twenty thousand Dollars (b$20,000) prepareand, under terms until completion of reference satisfactory the Project, maintain a separate project account in a bank acceptable to the Bank, and furnish to with a minimum balance amount therein deemed satisfactory by the Bank, on or about February 15 of each year during . Section 3.07. The Borrower shall cause the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter.PIU to: (a) The Borrower shallby August 31 of each year commencing in 1997, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures until completion of the Project, in order furnish to enable the Borrower to comply with Bank for its obligations under Sections 4.01 review and 4.02 of this Agreement.comments: (i) The Borrower shall exercise its rights a progress report in a format and carry out its obligations under degree of detail acceptable to the UNDP agreement in such a manner as to protect the interest of the Borrower Bank; and the Bank and to accomplish the purposes of the Loan; and (ii) except as an action plan and budget for the Bank may otherwise agreefollowing year together with recommendations for a proposed timetable for implemen- tation of the actions set out therein; and (b) carry out the said action plan in accordance with the proposed timetable taking into account the comments thereon, if any, by the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereofBank.

Execution of the Project. Section 3.01. The Borrower Recipient declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, technical, administrative, legal and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Without limitation upon the provisions of Section 3.01 of this Agreement, and except as the Administrator and Recipient shall otherwise agree, the Recipient shall, for the purposes of the Project, ensure that during the term of the Project the PMU operates in accordance with the Operational Manual and is maintained with staff and resources necessary and appropriate for the Project. Section 3.03. Except as the Bank Administrator shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.033.04. For the purposes of Section 9.07 24 of the General Conditions and without limitation thereto, the Borrower Recipient shall: (a) prepare, on the basis of guidelines acceptable to the BankAdministrator, and furnish to the Bank 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 Recipient and the BankAdministrator, a plan for designed to ensure the future operation continued achievement of the Project;’s objectives; and (b) afford the Bank Administrator a reasonable opportunity to exchange views with the Borrower Recipient on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower Recipient shall: (a) maintain maintains policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in agreed upon from time to time between the Implementation LetterRecipient and the Administrator, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the BankAdministrator, and furnish to the BankAdministrator, on or about February 15 of each year during the implementation of the Project November 30, 2002, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph subparagraph (a) of this Sectionabove, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the BankAdministrator, by April 15 of each year during the implementation of the Project December 31, 2002, or such later date as the Bank Administrator shall request, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the BankAdministrator’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares Recipient, through its commitment to the objectives Ministry of the Project, and, to this endAgriculture, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal engineering and technical financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Loan Grant shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For (a) The Recipient shall maintain or cause to be maintained records and separate accounts adequate to reflect in accordance with sound accounting practices the purposes of Section 9.07 operations, resources and expenditures in respect of the General Conditions and without limitation thereto, Project of the Borrower departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) prepareof this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator 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. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation statements of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementationexpenditure, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower Recipient shall: (ai) maintain policies and procedures adequate or cause to enable it to monitor and evaluate on an ongoing basisbe maintained, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on records and accounts reflecting such expenditures; (ii) retain, until at least one year after the progress achieved Administrator has received the audit report for the fiscal year in which the carrying out of last withdrawal from the Project during Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the period preceding the date of said report and setting out the measures recommended Administrator’s representatives to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following examine such daterecords; and (civ) review with ensure that such records and accounts are included in the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report annual audit referred to in paragraph (b) of this SectionSection and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, andtogether with the procedures and internal controls involved in their preparation, thereafter, take all measures required can be relied upon to ensure support the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matterrelated withdrawals. (a) Except as the Recipient and the Administrator may otherwise agree, the Recipient shall enter into an agreement ("the Management Agreement") with UNDP for the administration of consultants’ contracts and the workshop and for the procurement of goods. The Borrower shall, without limitation Recipient shall provide a draft of the Management Agreement to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank Administrator for its review and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; andapproval. (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower Recipient shall exercise its rights and carry out its obligations under the UNDP agreement Management Agreement in such a manner as to protect the interest interests of the Borrower Recipient and the Bank Administrator and to accomplish the purposes of the Loan; Grant and (ii) , except as the Bank may Administrator shall otherwise agree, the Borrower Recipient shall not assign, amend, abrogate, suspend, waive, terminate abrogate or fail to enforce waive the UNDP Management Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, Department with due diligence and efficiency and in conformity with appropriate financial, administrative, legal economic, technical and technical educational 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) For the administration and coordination of the Project, the Borrower shall establish in the Department a Project Unit, comprising a Project Director, a Project Coordinator, an Accountant and appropriate support staff. (d) Pursuant to paragraph (a) of this Section, the Borrower shall establish in a commercial bank a Project Fund to be used exclusively by the Project Unit to cover expenditures for the Project not financed out of the proceeds of the Credit and shall make an initial deposit therein of the equivalent of $20,000 and further deposits equivalent to at- least $45,000 at the beginning of each following calendar quarter. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 5 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the The Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to shall exchange views with the Borrower Association on said plan; and (c) carry its three-year rolling public expenditure program for the educational sub-sectors at least once each year during the carrying out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that exchange views with the PCU Association on its long-term strategy for the development of higher education prior to its final adoption; enrollments in higher education shall be contained to a growth rate agreed with the Association until such strategy is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manualadopted. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate shall ensure that, on an ongoing basis, in accordance with the indicators set forth basis of its three-year rolling program for public expenditures in the Implementation Lettersector, adequate amounts be budgeted annually for higher education, and that the amounts so budgeted be made promptly and regularly available to cover expenditures. Section 3.06. During the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall requestProject, the report referred to Borrower shall continue its policy of not subsidizing the lodging, meals and transportation of students in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matterhigher education. (a) The Borrower shall, without limitation shall ensure that the Project Unit furnish to the other provisions of this AgreementAssociation annual work programs, carry and that each such program set out detailed proposals for carrying out the Project in accordance with an operational manual, the period to which it relates and contain such other information as shall be satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; andAssociation. (b) The Borrower shall, after review of each such workprogram, cause the Operational Manual Project Unit to make such revisions to such work plan as may be amended by appropriate and, except as the Borrower from time Association shall otherwise agree, cause the Project to timebe carried out in the year in question on the basis of such work program, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailas it may be so revised. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) Section 3.08. The Borrower shall exercise its rights establish a Management Committee and carry out its obligations under a Studies Steering Committee with such composition and terms of reference as shall be agreed by the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereofAssociation.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the Project, and, to this end, Recipient shall carry out the Project, Project through the PCUUndersecretariat of the Treasury and Foreign Trade (Treasury) and the Public Participation Administration (PPA), with due diligence and efficiency and in conformity with appropriate financial, administrative, legal and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as In order to assist the Recipient in carrying out the Project, the Recipient shall employ consultants whose quali- fications, experience, terms of reference and terms and conditions of employment shall be satisfactory to the Administrator. Such consultants shall be selected in accordance with principles and procedures satisfactory to the Bank shall otherwise agree, procurement on the basis of the goods and consultants’ services required "Guidelines for the Project Use of Consultants by World Bank Borrowers and by The World Bank as Executing Agency" published by the Bank in August 1981. (a) The Recipient shall maintain or cause to be financed out maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the proceeds Project of the Loan shall be governed by departments or agencies of the provisions of Schedule 4 to this AgreementRecipient responsible for carrying out the Project or any part thereof. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) prepareof this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator 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. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation statements of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementationexpenditure, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower Recipient shall: (ai) maintain policies and procedures adequate or cause to enable it to monitor and evaluate on an ongoing basisbe maintained, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof;paragraph (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on records and accounts reflecting such expenditures; (ii) retain, until at least one year after the progress achieved Administrator has received the audit report for the fiscal year in which the carrying out of last withdrawal from the Project during Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the period preceding the date of said report and setting out the measures recommended Administrator's representatives to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following examine such daterecords; and (civ) review with ensure that such records and accounts are included in the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report annual audit referred to in paragraph (b) of this SectionSection and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement together with the United Nations Development Programme (UNDP) under terms procedures and conditions satisfactory internal controls involved in their preparation, can be relied upon to support the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreementrelated withdrawals. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical agricultural 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 regarding the provision of funds, the Borrower shall: (i) open and thereafter maintain in GF and in the name of the Project (the Project Account) in a commercial bank on terms and conditions satisfactory to the Association; and (ii) thereafter deposit into the Project Account on the first day of every calendar quarter commencing on January 1, 1993, an amount equivalent to budgetary allocations required to cover anticipated expenditures for the Project over that quarter; (c) Amounts deposited into the Project Account pursuant to paragraph (b) above shall be used only to make payments to meet expenditures made or to be made in respect of the reasonable cost of goods and services for the Project. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan Credit shall be governed by the provisions of Schedule 4 3 to this Agreement. Section 3.03. For the purposes of Section 9.07 of carrying out the General Conditions and without limitation theretoProject, the Borrower shall: (a) prepareestablish and thereafter maintain CPP with functions, on the basis of guidelines acceptable to the Bank, responsibilities 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 qualified and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by experienced staff in adequate numbers, all with qualifications and experience satisfactory to the Bank Association; (b) conclude contractual arrangements with functions relevant institu- tions satisfactory to the Association to: (i) provide required expert advice (including technical, informational and responsibilities as set forth managerial and training) to agricultural operators and agricultural associations; and (ii) strengthen the performance of small- and medium-scale agricultural enterprises; (c) conclude with relevant services, departments or agencies of the Borrower appropriate administrative arrangements satisfactory to the Association to ensure the proper execution of Parts B.1, B.2, B.4 and B.5 of the Project including a contribution in the Operational Manual. Section 3.05. The Borrower shall:amount of 15% to be made in kind by rural communities towards the costs of rural roads rehabilitation; (ad) maintain policies and procedures adequate (i) undertake all necessary measures as required to enable it facilitate the establishment of the PIF scheme; (ii) onlend to monitor and evaluate on an ongoing basisthe PIF management company a maximum amount equivalent to $1,600,000 out of the proceeds of the Credit, in accordance with the indicators set forth terms and conditions of onlending agreement satisfactory to the Association; and (iii) require that the activities entrusted to the PIF promoter and the operations of the PIF management company be at all times carried out by qualified and experienced staff in accordance with contractual arrangements stipulated in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereofonlending agreement referred to in subparagraph (ii) above; (bi) prepare, under terms of reference satisfactory prepare draft annual work programs including training programs and submit them to the Bank, Association for review and furnish to the Bank, on or about February 15 comments no later than October 31 of each year during year; and (ii) thereafter promptly implement said work and training programs; and (f) (i) carry out a Mid-Term Review with the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant Association no later than December 31, 1995 to paragraph (a) of this Section, on assess the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures execution of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 ; and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except promptly implement the recom- mendations resulting from the Mid-Term Review as they shall have been agreed upon with the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereofAssociation.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out Parts A and C of the Project, Project through EIBB and Part B of the PCUProject through CCPB, with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal and technical business 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 Bank shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project September 30, 2000, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project December 15, 2000, or such later date as the Bank shall request, the report referred to in paragraph subparagraph (b) of this Sectionparagraph, and, thereafter, 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 said report and the Bank’s Bank views on the matter. Section 3.04. For the purposes of Section 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shallprepare, without limitation to on the other provisions basis of this Agreement, carry out the Project in accordance with an operational manual, satisfactory guidelines acceptable to the Bank and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be prepared by agreed for this purpose between the PCUBorrower and the Bank, said manual to include specific rules and procedures a plan for Project implementationthe sustainability of the Project; and (b) afford the Operational Manual may be amended by Bank a reasonable opportunity to exchange views with the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailon said plan. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project, Project through the PCU, Project States with due diligence and efficiency and in conformity with appropriate financial, administrative, legal financial and technical engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. Except as (b) The Borrower shall provide in its budget amounts adequate to meet the Bank shall otherwise agree, procurement Borrower’s counterpart contributions to the costs of the goods Project, said contributions being presently estimated by the Borrower and consultants’ services required for the Association to amount over the Project and period to be financed out of $700,000 equivalent. (c) The Borrower shall relend to the Project States the proceeds of the Loan shall be governed by Credit allocated to the provisions of Project States in Schedule 4 1 to this Agreement. Section 3.03. For Agreement under agreements (the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (aSubsidiary Loan Agree- ments) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between entered into by the Borrower and the BankProject States under terms and conditions which shall have been approved by the Association, a plan for including provisions in each Subsidiary Loan Agreement requiring each Project State to: (i) pay annual interest at the future operation variable rate applica- ble, on the date of the Projectrespective Subsidiary Loan Agreements, to loans made by the Bank to its Borrowers; (bii) afford repay principal in not less than 20 years (in- cluding 5 years of grace); (iii) assume any foreign exchange risks on proceeds of the Bank a reasonable opportunity Credit relent to exchange views with the Borrower on said planit; and (civ) carry out an in-depth review (the mid-term review), jointly with actions described in Schedule 5 to this Agreement to the Bank, on the progress achieved in the implementation satisfaction of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matterAssoci- ation. (ad) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures until completion of the Project, in order to enable carry out jointly with the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. Association: (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest an annual review of the Borrower Project in the last quarter of each year of Project implementation to (A) assess progress made in carrying out the Project during the immediately preceding year, and (B) review the Bank work program and to accomplish budgetary allocations proposed for the purposes of the Loanyear immediately following; and and (ii) except as no later than December 31, 1995, a mid-term review of the Bank may otherwise agree, Project to assess (A) the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce overall progress made in carrying out the UNDP Agreement or any provision thereof.Project including the status of road user charges and cost recovery,

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrativetechnical, legal engineering, environmental and technical administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation to the provisions of paragraph (a) of this Section, the Borrower shall carry out the Project in accordance with the implementation arrangements set forth in Schedule 5 to this Agreement, as the same may be amended from time to time with the agreement of the Borrower and the Bank. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project (except Part B (1) thereof) and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project;; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project July 31, 2001, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project September 30, 2001, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal engineering, financial and technical environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (a) Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than twelve (12) months after the date of the preceding Procurement Plan, for the Bank’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 Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; ; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the indicators set forth in the Implementation LetterBank, the carrying out of the Project and the achievement of the objectives thereof; (b) submit to the Bank, within thirty (30) days of the end of each calendar quarter, quarterly progress reports, in form and substance satisfactory to the Bank; (c) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project December 31, 2006, a mid-term review report integrating the results of the monitoring and evaluation activities performed pursuant to sub-paragraph (a) of this Sectionparagraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project Project, protection of the environment, and the achievement of the objectives thereof of the Project during the period following such date; and (cd) review with the Bank, by April 15 of each year during the implementation of the Project March 31, 2007, or such later date as the Bank shall request, the report referred to in sub-paragraph (bc) of this Sectionparagraph, and, thereafter, 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 said report and the Bank’s views on the matter. Section 3.05. The Borrower shall: (a) The Borrower shall, without limitation submit annually to the other provisions Bank: (i) reports of this Agreement, carry out statutory and its own inspections of the Project in accordance with an operational manual, satisfactory to Xxxxx dam; and (ii) reports on the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementationimplementation of their recommendations; and (b) discuss the Operational Manual inspections and reports with the Bank and undertake additional measures suggested by the Bank in consultation with Romania’s National Commission for Dam Safety. Section 3.06. The Borrower shall: (a) submit the updated emergency preparedness plan (EPP) for the Project: (i) in draft for Bank review no later than March 31, 2005; and (ii) in final form for Bank records no later than December 31, 2005; and (b) keep the Bank informed of future reviews and updates of the EPP. Section 3.07. The Borrower shall implement the Environmental Management Plan and shall include in the quarterly progress reports to the Bank specific environmental reports providing results of the monitoring programs included in the EMP. Section 3.08. Not later than December 31, 2005, or such later date as may be amended by agreed between the Borrower from time to timeand the Bank, in the Borrower shall enter into a manner concession contract, satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement for its public domain assets with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this AgreementGuarantor. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project, and, and to this end, shall carry out the Project, Project through the PCU, MEF and UCPS with due diligence and efficiency and in conformity with appropriate administrative, social, financial, administrativecultural, legal and technical 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 3.02. and except as the Borrower through UCPS and the Bank shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. (a) Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement, as said provisions may be further elaborated in the General Procurement Plan. (b) The Borrower through UCPS shall update the General Procurement Plan in accordance with the provisions of paragraph 4 of Schedule 5 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower through UCPS shall: (a) prepareprepare through UCPS, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date date, as may be agreed for this purpose between the Borrower through UCPS and the Bank, a plan for the future operation of the Project; (b) ; and afford the Bank a reasonable opportunity to exchange views with the Borrower through UCPS on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementationThe Borrower, the Borrower through UCPS, shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, (i) no later than three months after the Effective Date, evidence that it has executed the final Implementation Agreement between MEF and MIMDES; and (ii) no later than twelve months after the Effective Date, evidence that it has executed the final Implementation Agreements between MEF on or about February 15 one hand, and each of each year during the implementation of the Project a report integrating the results of the monitoring INEI, MINSA, and evaluation activities performed pursuant to paragraph (a) of this SectionMINEDU, on the progress achieved other hand, all above documents in the carrying out of the Project during the period preceding the date of said report form and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner substance satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through Project under the PCU, supervision of MEPNRF with due diligence and efficiency and in conformity with appropriate financial, administrative, legal environmental, financial and technical forestry 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 3.02. Except and except as the Borrower and the Bank shall otherwise agree, procurement the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. (c) The Borrower shall enter into a Financing Agreement with GDSF on terms and conditions satisfactory to the Borrower and to the Bank. Section 3.02. Procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. For Without limitation on the purposes of Section 9.07 of foregoing, with respect to the General Conditions and without limitation theretotechnical assistance for carrying out the Project, the Borrower shall: (a) prepareby December 31, on the basis of guidelines acceptable to the Bank1993, 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 the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, for such technical assistance, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date as the Bank shall request, the report referred to in paragraph (b) of this Sectionby June 30, and1994, thereafter, take all measures required to ensure have obtained the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matterfunds for such technical assistance. (a) The Borrower shall, without limitation Section 3.03. With respect to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and equipment (including vehicles) to be prepared by the PCU, said manual to include specific rules and procedures purchased for Project implementation; and (b) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case carrying out Part B of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with shall prepare and furnish to the United Nations Development Programme Bank by June 30, 1994, a plan for the selling and/or leasing of such equipment (UNDPincluding vehicles) under terms to private owners (legal and conditions natural persons), which plan shall be satisfactory to the Bank (Bank. Section 3.04. The Borrower will ensure that forest management activities within all national parks will follow the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf plans of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures national park protection developed as a result of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) Section 3.05. The Borrower shall exercise its rights ensure that all active ingredients used in any agrochemicals proposed to be used in implementing the Project will comply with relevant standards as published by the Food and carry out its obligations under the UNDP agreement Agriculture Organization. A list of such ingredients shall be furnished in such a manner as to protect the interest of the Borrower and sufficient time for the Bank to review and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereofcomment thereon.

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate financial, administrative, legal engineering and technical public utility 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 3.02. Except and except as the Bank and the Borrower shall otherwise agree, procurement of the goods and consultants’ services required for Borrower shall carry out the Project and to be financed out of in accordance with the proceeds of the Loan shall be governed by the provisions of Implementation Program set forth in Schedule 4 5 to this Agreement. Section 3.033.02. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the The Borrower shall: : (a) prepare, on the basis following an exchange of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB. The Borrower shall ensure that the PCU is at all times, during the implementation of the Project, headed by a Project coordinator (the Project Coordinator) and assisted by staff in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about February 15 by October 31 in each year, a Corporate Performance Plan (CPP) for the following fiscal year of each year the Borrower, which shall set forth, in a manner consistent with the Borrower’s obligations under the Loan Agreement: (i) the physical targets for the Borrower, including the components of the Program to be carried out during the implementation concerned fiscal year and the investments under such components to be financed from the proceeds of the Project Loan; (ii) the financial targets for the Borrower, including a report integrating financial projection showing whether the results of the monitoring and evaluation activities performed pursuant to paragraph Borrower would comply with its obligations under Section 5.02 (a) of this SectionAgreement, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project for financial restructuring and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the actions to be taken towards implementation of the Project or such later date as the Bank shall requestFMIP, the report referred to in paragraph (b) of this Section, and, thereafter, 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 said report and the Bank’s views on the matter. (a) The Borrower shall, without limitation to the other provisions of this Agreement, carry out the Project in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementation; and (biii) the Operational Manual may be amended by the Borrower from time to time, in a manner satisfactory to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual operational and those of this Agreement, the terms of this Agreement shall prevail. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of commercialization targets for the Borrower, records and accounts adequate including actions to reflect the operations, resources and expenditures be taken towards implementation of the ProjectOMIP, in order to enable and (iv) the Borrower to comply with its obligations under Sections 4.01 Borrower’s levels of services, borrowing needs, financing plan and 4.02 of this Agreement. (i) The Borrower shall exercise its rights tariff levels and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.structures;

Execution of the Project. Section 3.01. (a) The Borrower declares its commitment to the objectives objective of the ProjectProject as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project, through the PCU, Project with due diligence and efficiency and in conformity with appropriate administrative, financial, administrative, legal environmental and technical public expenditures practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (b) Without limitation to the provisions of paragraph (a) above, the Borrower shall: (i) carry out the Project in accordance with the recommendations set forth in the Project social and environmental impact and management assessment, submitted by the Borrower to the Bank on April 20, 2005; and (ii) carry out or cause to be carried out all actions therein specified to be carried out by the Borrower or any of its agencies, within the period of time also specified in such document. (a) Except as the Bank shall otherwise agree, procurement of the goods goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan in respect of Part B of the Project. Section 3.03. For (b) The Borrower shall update the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than six (6) 12 months after the Closing Date or such later date as may be agreed of the preceding Procurement Plan, for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan; and (c) carry out an in-depth review (the mid-term review), jointly with the Bank, on the progress achieved in the implementation of the Project’s approval. Section 3.04. Throughout the course of the Project implementation, the Borrower shall maintain a Project coordination unit within SB3.03. The Borrower shall ensure that the PCU is at all timesmaintain, during the implementation execution of the Project, headed by a Project coordinator (unit within the Project Coordinator) Borrower’s Secretariat of Planning for purposes of coordinating the participation of the several Secretariats and assisted by staff agencies of the Borrower in adequate numbers, all with qualifications and experience satisfactory to the Bank with functions and responsibilities as set forth in the Operational Manual. Section 3.05. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project and the achievement fulfillment of conditions for disbursement of the objectives thereof; (b) prepareLoan, under terms of reference such unit to have a structure and functions satisfactory to the Bank, and furnish to the Bank, on or about February 15 of each year during the implementation of the Project a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved qualified staff in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by April 15 of each year during the implementation of the Project or such later date adequate numbers as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure carry out its responsibilities under the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matterProject. Section 3.04. The Borrower shall cause CAGECE to: (a) The Borrower shall, without limitation to not later than one year after the other provisions date of this Agreement, carry out apply for a license from Instituto Brasileiro do Meio Ambiente e Recursos Naturais Renováveis – IBAMA to regularize the Project operation of the ocean outfall that discharges sewage collected in accordance with an operational manual, satisfactory to the Bank and to be prepared by the PCU, said manual to include specific rules and procedures for Project implementationcity of Fortaleza; and (b) the Operational Manual may be amended by the Borrower from time to timepromptly take, in a manner satisfactory acceptable to the Bank, to facilitate continued Project implementation. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevailaction that may be required by such Instituto for such regularization. (a) For the purposes of providing assistance to the Borrower in the procurement of goods and services under the Project, the Borrower may enter into an agreement with the United Nations Development Programme (UNDP) under terms and conditions satisfactory to the Bank (the UNDP Agreement), including, inter alia, UNDP’s obligation to maintain, on behalf of the Borrower, records and accounts adequate to reflect the operations, resources and expenditures of the Project, in order to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (i) The Borrower shall exercise its rights and carry out its obligations under the UNDP agreement in such a manner as to protect the interest of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank may otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the UNDP Agreement or any provision thereof.