Common use of Financial Conditions Clause in Contracts

Financial Conditions. (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 including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Financial Conditions. (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 including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the BankTrustee; (ii) furnish to the Bank Trustee as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank Trustee shall have reasonably requested; and (iii) furnish to the Bank Trustee such other information concerning said records and accounts and the audit thereof as the Bank Trustee shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Trustee has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the BankTrustee’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Financial Conditions. (a) The Recipient Recipients 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 Recipients responsible for carrying out the Project or any part thereof. (b) The Recipient Recipients shall: (i) have the records and accounts referred to in paragraph (a) of this Section Section, including those for the Special Account Account, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six (6) months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient Recipients shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one (1) year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Financial Conditions. (a) The Recipient shall establish and maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect related to Part C of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Association), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such yearyear (or such other period agreed to by the Bank), (A) certified copies of the report financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Bank), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditure are included in the annual audit for each fiscal year (or other period agreed to by the Bank), referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 17 of Schedule 4 to this Agreement the Recipient shall prepare and that furnish to the report Bank a financial monitoring report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for Part C of the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in the implementation of Part C of the Project, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under Part C of the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to whether the statements Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Bank not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained maintained, a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Administrator, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: : (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those Section, and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Administrator, consistently applied, by independent auditors acceptable to the Bank; Administrator; (ii) furnish to the Bank Administrator as soon as available, but in any case not later than six months after the end of each such year: (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, the and (B) a opinion on such statements, records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank Administrator shall have reasonably requested; and and (iii) furnish to the Bank Administrator such other information concerning said records and accounts accounts, and the audit thereof as the Bank Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: : (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; ; (ii) retain, until at least one (1) year after the Bank Administrator has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; ; (iii) enable the BankAdministrator’s representatives to examine such records; and 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. (a) Without limitation upon the Recipient’s progress reporting obligations set out in Part B.3 (b) of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Administrator a financial monitoring report, in form and substance satisfactory to the Administrator, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant, and explains variances between the actual and planned Project implementation; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation ; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first Financial Monitoring Report shall be furnished to the Administrator not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of each such first calendar quarter; thereafter, each Financial Monitoring Report shall be furnished to the Administrator not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall establish and maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures for and in respect connection with the carrying out of Part C of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those Section, and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank consistently applied, by independent auditors acceptable to the Bank;, (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such financial statements, records and accounts and a report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said such records and accounts and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain maintain, or cause to be maintained, in accordance with paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section 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 each fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Financial Conditions. (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 Parts A.1 (b), X.0, X.0, X.0, X xxx X (xxxxx xxxx X.0 (x) and (c)) of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part such parts thereof. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) The Recipient shall cause ANAE, ANGAP, CFSIGE and FTM to maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations and financial condition of ANAE, ANGAP, CFSIGE and FTM, respectively.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of and each Sub-project (including its cost and the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofbenefits to be derived from it). (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those Section, and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such statements, records and accounts and the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said such records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the Project Management Reports or the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Bank for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Recipient, not later than May 15, 2002, or such later date as the Bank shall agree, to prepare quarterly Project Management Reports, acceptable to the Bank, each of which: (i) (A) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report, and (B) shows separately expenditures financed out of the proceeds of the Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Grant during the six-month period following the period covered by said report; (ii) (A) describes physical progress in Project implementation, including output by Project activity, both cumulatively and for the period covered by said report, and (B) explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the Grant, as at the end of the period covered by said report.

Financial Conditions. (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 including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six (6) months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) The Recipient shall cause the Beneficiaries to maintain records and accounts adequate to reflect in accordance with sound accounting practices their operations and financial condition and to register separately their operations, resources and expenditures related to the corresponding Sub-Projects. (b) The Recipient shall: (i) cause the Beneficiaries to have their records, accounts and financial statements (balance sheets, statements of income and expenses and related statements) for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six (6) months after the end of each such year: (A) certified copies of the financial statements referred to in sub-paragraph (i) above for such year as so audited; and (B) the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning such records, accounts and financial statements and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures in respect of Sub-projects for which withdrawals from the GEF Trust Fund Grant were made on the basis of statements of expenditure, the Recipient shall cause the Beneficiaries to: (i) maintain, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditures 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.

Financial Conditions. (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 including those for the Special Account Accounts for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the BankTrustee; (ii) furnish to the Bank Trustee as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank Trustee shall have reasonably requested; and (iii) furnish to the Bank Trustee such other information concerning said records and accounts and the audit thereof as the Bank Trustee shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Trustee has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the BankTrustee’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the Project Management Reports or statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Trustee for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Recipient, not later than October 1, 2002, or such later date as the Trustee shall agree, to prepare quarterly Project management reports, acceptable to the Trustee, each of which: (i) (A) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report, and (B) shows separately expenditures financed out of the proceeds of the Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Grant during the six-month period following the period covered by said report; (ii) (A) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and (B) explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the Grant, as at the end of the period covered by said report.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of and each Sub-project (including its cost and the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofbenefits to be derived from it). (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those Section, and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such statements, records and accounts and the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said such records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. The Recipient, through the PIU, shall prepare and furnish to the Bank a Financial Monitoring Report in a form and substance satisfactory to the Bank, which: (a) (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, and showing separately funds provided from the proceeds of the Grant; and explains variances between actual and planned uses of such funds;

Financial Conditions. (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 including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the BankTrustee; (ii) furnish to the Bank Trustee as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank Trustee shall have reasonably requested; and (iii) furnish to the Bank Trustee such other information concerning said records and accounts and the audit thereof as the Bank Trustee shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Trustee has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the BankTrustee’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Trustee for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Recipient, not later than October 1, 2002, or such later date as the Trustee shall agree, to prepare quarterly Project management reports, acceptable to the Trustee, each of which: (i) (A) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report, and (B) shows separately expenditures financed out of the proceeds of the Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Grant during the six-month period following the period covered by said report; (ii) (A) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and (B) explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the Grant, as at the end of the period covered by said report.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those and the records and accounts for the Special Account Accounts for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such statements, records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the Project Management Reports or statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Bank for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Recipient, not later than June 30, 2003, or such later date as the Bank shall agree, to prepare quarterly Project Management Reports, acceptable to the Bank, each of which: (i) (A) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report, and (B) shows separately expenditures financed out of the proceeds of the GEF Trust Fund Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the GEF Trust Fund Grant during the six-month period following the period covered by said report; (ii) (A) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and (B) explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the GEF Trust Fund Grant as at the end of the period covered by said report.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect related to its Respective Part of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those and the records and accounts for the Special Account Accounts for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such statements, records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably reasonable requested; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) The Recipient shall cause EVN to maintain a financial management system, including records and accounts, and prepare financial statements, all in accordance with accounting standards acceptable to the Bank, consistently applied, adequate to reflect its operations, financial condition and to register separately the operations, resources and expenditures related to EVN’s Respective Part of the Project. (b) The Recipient shall cause EVN to: (i) have its records, accounts and financial statements (balance sheets, statements of income and expenses and related statements) for each fiscal year audited, in accordance with auditing standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six (6) months after the end of each such year; (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited; and (B) an opinion on such statements, report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning such records, accounts and financial statements as well as the audit thereof, and concerning said auditors, as the Bank may from time to time reasonably request. (a) Without limitation upon the Recipient’s progress reporting obligations set out in the provisions of Part C of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Bank a Financial Monitoring Report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for its Respective Part of the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant, and explains variances between the actual and planned uses of such funds; (ii) describes physical progress in implementation of its Respective Part of the Project, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under its Respective Part of the Project, as at the end of the period covered by said report. (b) The Recipient shall cause EVN to prepare and furnish to the Bank a Financial Monitoring Report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for EVN’s Respective Part of the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant, and explains variances between the actual and planned uses of such funds; (ii) describes physical progress in implementation of EVN’s Respective Part of the Project, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under EVN’s Respective Part of the Project, as at the end of the period covered by said report. (c) The first Financial Monitoring Reports referred to in paragraphs (a) and

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained maintained, a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Administrator, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: : (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those Section, and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Administrator, consistently applied, by independent auditors acceptable to the Bank; Administrator; (ii) furnish to the Bank Administrator as soon as available, but in any case not later than six months after the end of each such year: (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, the and (B) an opinion on such statements, records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank Administrator shall have reasonably requested; and and (iii) furnish to the Bank Administrator such other information concerning said records and accounts accounts, and the audit thereof as the Bank Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: : (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; ; (ii) retain, until at least one year after the Bank Administrator has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; ; (iii) enable the BankAdministrator’s representatives to examine such records; and 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. (a) Without limitation upon the Recipient’s progress reporting obligations set out in Part C.3 (b) of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Administrator a financial monitoring report, in form and substance satisfactory to the Administrator, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant, and explains variances between the actual and planned Project implementation; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first Financial Monitoring Report shall be furnished to the Administrator not later than forty-five (45) days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of each such first calendar quarter; thereafter, each Financial Monitoring Report shall be furnished to the Administrator not later than forty-five (45) days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Conditions. (a) The With the assistance of KfW and its consultants, Recipient shall establish and maintain or cause to be maintained a financial management system including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards, acceptable to the Administrator, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall, with the assistance of KfW and its consultants: (i) commencing with the fiscal year in which the Effective Date falls, to and including the fiscal year in which the last withdrawal from the Grant Account is made, have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year auditedyear, or other period agreed to by the Administrator, audited in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Administrator, by independent auditors acceptable to the BankAdministrator; (ii) furnish to the Bank Administrator as soon as available, but in any case not later than six months after the end of each such year or such other period agreed to by the Administrator, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year, or such other period agreed to by the report of Administrator, as so audited, and (B) an opinion on such audit statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedAdministrator; and (iii) furnish to the Bank Administrator such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall Administrator may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain retain, or cause KfW and its consultants to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Administrator has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable enable, or cause KfW and its consultants to enable, the BankAdministrator’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditures are included in the annual audit for each fiscal year or other period agreed to by the Administrator, referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in Part B.1 (b) of Schedule 4 to this Agreement, the Recipient shall prepare and that furnish to the report Administrator a financial monitoring report, in form and substance satisfactory to the Administrator, which: (i) sets forth sources and uses of such audit contains a separate opinion funds for the Project, both cumulatively and for the period covered by said auditors report, showing separately funds provided under the Grant, and explains variances between the actual and planned Project implementation; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first financial monitoring report shall be furnished to whether the statements Administrator not later than forty-five (45) days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of each such fiscal yearfirst calendar quarter; thereafter, together with each financial monitoring report shall be furnished to the procedures Administrator not later than forty-five (45) days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those Section, and the records and accounts for the Special Account Account, for each fiscal year audited, in accordance with appropriate generally accepted auditing principles standards and procedures consistently applied, by independent auditors acceptable to the Bankand qualified auditors; (ii) furnish to the Bank as soon as available, but in any case not later than six four months after the end of each such year: (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited; and (B) an opinion on such financial statements, the records and accounts and a report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) Without limitation upon the Recipient’s progress reporting obligations set out in Article III of this Agreement, the Recipient shall prepare and furnish to the Bank a financial monitoring report, in form and substance acceptable to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant, and explains variances between the planned and actual uses of such funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to the Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first calendar quarter; thereafter, each FMR shall be furnished to the Bank not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Conditions. (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 including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Bank for the strengthening of its financial management system for the Project in order to enable the Recipient, not later than March 31, 2001, or such later date as the Bank shall agree, to prepare quarterly Project management reports, acceptable to the Bank, each of which: (i) (A) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report, and (B) shows separately expenditures financed out of the proceeds of the Trust Fund Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Trust Fund Grant during the six-month period following the period covered by said report; (ii) (A) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and (B) explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the Trust Fund Grant, as at the end of the period covered by said report.

Financial Conditions. (a) The Recipient shall establish and thereafter maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements, all in accordance with accounting standards acceptable to the Bank, consistently applied, adequate to reflect in accordance with sound accounting practices its operations and financial condition and to register separately the operations, resources and expenditures in respect related to the Project (including, as a separate item, the operations, financial condition, resources and expenditures of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofEndowment Fund). (b) The Recipient shall: (i) have its records, accounts and financial statements (balance sheets, statements of income and expenses and related statements), and the records and accounts referred to in paragraph (a) of this Section including those for the Special Account and the Endowment Fund for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year: (A) certified copies of the financial statements referred to in paragraph (a) of this Section, and the Endowment Fund for such year as so audited; and (B) an opinion on such statements and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records such records, accounts and accounts financial statements, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) and 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. (a) Without limitation upon the Recipient’s progress reporting obligations set out in Section 3.03 of this Agreement, the Recipient shall prepare and furnish to the Bank a financial monitoring report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant, and explains variances between the actual and planned uses of such funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first Financial Monitoring Report shall be furnished to the Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first calendar quarter; thereafter, each Financial Monitoring Report shall be furnished to the Bank not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall establish and maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements, all in accordance with accounting standards acceptable to the Bank, consistently applied, adequate to reflect in accordance with sound accounting practices its operations and financial condition and to register separately the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have its records, accounts and financial statements (balance sheets, statements of income and expenses and related statements) and the records and accounts referred to in paragraph (a) of this Section including those for the GEF Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section, for such year as so audited, and (B) an opinion on such statements and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records such records, accounts, and accounts financial statements, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of GEF Project Management Reports or statements of expenditureexpenditures, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Bank for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Recipient, not later than June 30, 2000, or such later date as the Bank shall agree, to prepare quarterly GEF Project Management Reports, acceptable to the Bank, each of which: (i) (A) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report; and (B) shows separately expenditures financed out of the proceeds of the GEF Trust Fund Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the GEF Trust Fund Grant during the six-month period following the period covered by said report; (ii) (A) describes physical progress in Project implementation, both cumulatively and for the period covered by said report; and (B) explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the GEF Trust Fund Grant, as at the end of the period covered by said report. (b) Upon the completion of the action plan referred to in paragraph (a) of this Section, the Recipient shall prepare, in accordance with guidelines acceptable to the Bank, and furnish to the Bank not later than 45 days after the end of each calendar quarter a GEF Project Management Report for such period.

Financial Conditions. (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 including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Bank for the strengthening of its financial management system for the Project in order to enable the Recipient, not later than March 31, 2003, or such later date as the Bank shall agree, to prepare quarterly Project management reports, acceptable to the Bank, each of which: (i) (A) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report; and (B) shows separately expenditures financed out of the proceeds of the Trust Fund Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Trust Fund Xxxxx during the six-month period following the period covered by said report; (ii) (A) describes physical progress in Project implementation, both cumulatively and for the period covered by said report; and (B) explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the Trust Fund Grant, as at the end of the period covered by said report.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained shall, not later than June 30, 2002, establish, and thereafter maintain, a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those Section, and the records and accounts for the Special Account Account, for each fiscal year auditedFiscal Year, audited in accordance with appropriate auditing principles standards acceptable to the Association, consistently applied, applied by independent auditors acceptable to the BankAssociation; (ii) furnish to the Bank Association as soon as available, but in any case not later than six (6) months after the end of each Fiscal Year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such yearFiscal Year as so audited, the and (B) an opinion on such statements, records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank Association shall have reasonably requested; and (iii) furnish to the Bank Association such other information concerning said such records and accounts accounts, and the audit thereof thereof, and concerning said auditors, as the Bank shall Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Association has received the audit report for the fiscal year Fiscal Year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the BankAssociation’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal yearFiscal Year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph C of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Association a financial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant, and explains variances between the actual and planned uses of such funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation ; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first Financial Monitoring Report shall be furnished to the Association not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first calendar quarter; thereafter, each Financial Monitoring Report shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six (6) months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such statements, records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one (1) year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 3 of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Bank a Financial Monitoring Report, in form and substance satisfactory to the Bank, which: sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant and explains variances between the actual and planned uses of such funds; describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to the Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first calendar quarter; thereafter, each FMR shall be furnished to the Bank not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of and each Sub-project (including its cost and the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofbenefits to be derived from it). (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those Section, and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such statements, records and accounts and the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said such records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the Project Management Reports or the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Bank for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Recipient, not later than May 15, 2002, or such later date as the Bank shall agree, to prepare quarterly Project Management Reports, acceptable to the Bank, each of which: (i) (A) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report, and

Financial Conditions. (a) The Recipient shall establish and maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year Fiscal Year (or other period agreed to by the Bank), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such yearFiscal Year (or such other period agreed to by the Bank), (A) certified copies of the report financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Bank), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of reports referred to in Part A.5 of Schedule 1 to this Agreement (Report-based Disbursements) or on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, ensure that all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expendituresexpenditures are retained until at least one year after the Bank has received the audit report for, or covering, the Fiscal Year in which the last withdrawal from the GEF Trust Fund Grant Account was made; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records reports and accounts statements of expenditure are included in any audit that the annual audit referred Bank may have requested pursuant to in paragraph (b) of this Section. (d) For purposes of Part B.1 through B.4 of the Project, the Recipient shall cause ANGAP to establish and maintain a financial management system, including records and accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect its operations and financial condition and to register separately the operations, resources and expenditures related to the Project. (e) The Recipient shall cause ANGAP to: have the respective financial statements referred to in paragraph (d) of this Section and that for each Fiscal Year (or other period agreed to by the report of such audit contains a separate opinion Bank), audited, in accordance with consistently applied auditing standards acceptable to the Bank, by said independent auditors as acceptable 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.Bank;

Financial Conditions. (a) The Recipient shall maintain or shall, in respect of Parts A and E of the Project, establish and maintain, and cause to be maintained established and maintained, a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect related to said Parts of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have have, and shall cause to have, the records records, accounts and accounts financial statements (balance sheets, statements of income and expenses and related statements) referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Bank), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish furnish, and cause to be furnished, to the Bank as soon as available, but in any case not later than six months after the end of each such yearyear (or such other period agreed to by the Bank), (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year (or other period agreed to by the Bank), the report of as so audited, and (B) an opinion on such audit statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish furnish, and cause to be furnished, to the Bank such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or retain, and cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retainretained, until at least one year after the Bank has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditure are included in the annual audit for each fiscal year (or other period agreed to by the Bank), referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 13 of Schedule 4 to this Agreement, in respect of Parts A and that E of the report Project, the Recipient shall prepare and furnish to the Bank a financial monitoring report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to whether the statements Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Bank not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of and each Sub-project (including its cost and the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofbenefits to be derived from it). (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those Section, and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such statements, records and accounts and the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said such records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. The Recipient, through the PCU, shall prepare and furnish to the Bank a Financial Monitoring Report in a form and substance satisfactory to the Bank, which: (a) (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, and showing separately funds provided from the proceeds of the Grant; and explains variances between actual and planned uses of such funds;

Financial Conditions. (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 Parts A and D of the Project or any part thereof. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Bank for the strengthening of its financial management system for carrying out Parts A and D of the Project in order to enable the Recipient, not later than June 30, 2002, or such later date as the Bank shall agree, to prepare semi-annual Project management reports, acceptable to the Bank, each of which: (i) (A) sets forth actual sources and applications of funds for Parts A and D of the Project , both cumulatively and for the period covered by said report, and projected sources and applications of funds for Parts A and D of the Project for the six-month period following the period covered by said report, and

Financial Conditions. (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 including those for the Special Account and the Sub-Accounts, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such statements, records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient shall carry out a time-bound action plan acceptable to the Bank for the strengthening of its financial management system for the Project in order to enable the Recipient, not later than 18 months after the Effective Date, or such later date as the Bank shall agree, to prepare quarterly Project Management Reports, acceptable to the Bank, each of which: (i) (A) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report, and (B) shows separately expenditures financed out of the proceeds of the GEF Trust Fund Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the GEF Trust Fund Grant during the six-month period following the period covered by said report; (ii) (A) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and (B) explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the GEF Trust Fund Grant, as at the end of the period covered by said report.

Financial Conditions. (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 including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six (6) months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) Without limitation upon the Recipient’s progress reporting obligations set out in Part B of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Bank a financial monitoring report, in form and substance satisfactory to the Bank, which sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant, and explains variances between the actual and planned uses of such funds. (b) The first such financial management report shall be furnished to the Bank not later than 45 days after the end of the first calendar semester after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first calendar semester; thereafter, each financial management report shall be furnished to the Bank not later than 45 days after each subsequent calendar semester, and shall cover such calendar semester. (a) The Recipient shall cause each Guarantee Program Implementing Agency to maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations and financial condition of the respective EMC Guarantee Program Special Fund. (b) The Recipient shall cause each Guarantee Program Implementing Agency, in respect of the respective Special Fund, to: (i) have the records, accounts and financial statements (balance sheets, statements of income and expenses and related statements) of said Special Fund for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Recipient and the Bank as soon as available, but in any case not later than six (6) months after the end of each such year: (A) certified copies of said financial statements for such year as so audited; and (B) the report of such audit by said auditors, of such scope and in such detail as the Recipient or the Bank shall have reasonably requested; and (iii) furnish to the Recipient and the Bank such other information concerning such records, accounts and financial statements and the audit thereof as the Recipient or the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall cause each Guarantee Program Implementing Agency to: (i) maintain, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of Section 4.01 of this Agreement, 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.

Financial Conditions. (a) The Recipient shall cause Guangdong to establish and maintain or cause to be maintained a financial management system, including records and accounts accounts, and to prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The the Recipient shallshall cause Guangdong to: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Bank), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six (6) months after the end of each such yearyear (or such other period agreed to by the Bank), (A) certified copies of the report financial statements referred to in paragraph (a) of this Section for such audit year (or such other period agreed to by the Bank), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Loan Account were made on the basis of statements of expenditure, the Recipient shallshall cause Guangdong to: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, ensure that all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expendituresexpenditures are retained, until at least one year after the Bank has received the audit report for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditure are included in any audit that the annual audit referred Bank may have requested pursuant 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 withdrawalsSection.

Financial Conditions. (a) The Recipient shall establish and thereafter maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements, all in accordance with accounting standards acceptable to the Bank, consistently applied, adequate to reflect in accordance with sound accounting practices its operations and financial condition and to register separately the operations, resources and expenditures in respect related to the Project (including, as a separate item, the operations, financial condition, resources and expenditures of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofEndowment Fund). (b) The Recipient shall: (i) have its records, accounts and financial statements (balance sheets, statements of income and expenses and related statements), and the records and accounts referred to in paragraph (a) of this Section including those for the Special Account and the Endowment Fund for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year: (A) certified copies of the financial statements referred to in paragraph (a) of this Section, and the Endowment Fund for such year as so audited; and (B) an opinion on such statements and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records such records, accounts and accounts financial statements, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) Without limitation upon the Recipient’s progress reporting obligations set out in Section 3.03 of this Agreement, the Recipient shall prepare and furnish to the Bank a financial monitoring report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant, and explains variances between the actual and planned uses of such funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first Financial Monitoring Report shall be furnished to the Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first calendar quarter; thereafter, each Financial Monitoring Report shall be furnished to the Bank not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Conditions. (a) The Recipient PNGMGCTF shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources resources, capital fund investments and expenditures in respect of the Project Part B of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient PNGMGCTF shall: (i) have the records and accounts referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the PNGMGCTF-GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient PNGMGCTF shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the PNGMGCTF-GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the PNGMGCTF shall carry out a time-bound action plan acceptable to the Bank for the strengthening of its financial management system for carrying out Part B of the Project in order to enable the PNGMGCTF, not later than June 30, 2002, or such later date as the Bank shall agree, to prepare semi-annual Project management reports, acceptable to the Bank, each of which: (i) (A) sets forth actual sources and applications of funds for Part B of the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for Part B of the Project for the six-month period following the period covered by said report, and (B) shows separately expenditures financed out of the proceeds of the PNGMGCT-GEF Trust Fund Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the PNGMGCT-GEF Trust Fund Grant during the six-month period following the period covered by said report; (ii) (A) describes physical progress in the implementation of Part B of the Project, both cumulatively and for the period covered by said report, and (B) explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under Part B of the Project and expenditures under contracts financed out of the proceeds of the PNGMGCT-GEF Trust Fund Grant, as at the end of the period covered by said report.

Financial Conditions. (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 Part A of the Project of and to register separately the departments or agencies of operations, resources and expenditures related to the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) of this Section Section, including those for the Special Account Account, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Financial Conditions. (a) The Recipient shall maintain or shall, in respect of Parts A and E of the Project, establish and maintain, and cause to be maintained established and maintained, a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect related to said Parts of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have have, and shall cause to have, the records records, accounts and accounts financial statements (balance sheets, statements of income and expenses and related statements) referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Bank), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish furnish, and cause to be furnished, to the Bank as soon as available, but in any case not later than six months after the end of each such yearyear (or such other period agreed to by the Bank), (A) certified copies of the report financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Bank), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish furnish, and cause to be furnished, to the Bank such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or retain, and cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retainretained, until at least one year after the Bank has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditure are included in the annual audit for each fiscal year (or other period agreed to by the Bank), referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 13 of Schedule 4 to this Agreement, in respect of Parts A and that E of the report Project, the Recipient shall prepare and furnish to the Bank a financial monitoring report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. The first FMR shall be furnished to whether the statements Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Bank not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall establish and maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Association), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Association, by independent auditors acceptable to the BankAssociation; (ii) furnish to the Bank Association as soon as available, but in any case not later than six months after the end of each such yearyear (or such other period agreed to by the Association), (A) certified copies of the report financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Association), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedAssociation; and (iii) furnish to the Bank Association such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund PHRD Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund PHRD Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the BankAssociation’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditure are included in the annual audit for each fiscal year (or other period agreed to by the Association), referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 4 of Schedule 4 to this Agreement, the Recipient shall prepare and that furnish to the report Association a financial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the PHRD Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. The first FMR shall be furnished to whether the statements Association not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Association not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (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 including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the BankTrustee; (ii) furnish to the Bank Trustee as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank Trustee shall have reasonably requested; and (iii) furnish to the Bank Trustee such other information concerning said records and accounts and the audit thereof as the Bank Trustee shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund TFET Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Trustee has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund TFET Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the BankTrustee’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect related to Parts A and B of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those and the records and accounts for the Special Account Accounts and for the Advance Accounts for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year: (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited; and (B) an opinion on such statements, the records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of Financial Monitoring Reports or statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) and 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 Financial Monitoring Reports submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. The Recipient shall prepare, and cause UWA and UWEC to prepare, and furnish to the Bank before or with the first application for withdrawal from the GEF Trust Fund Grant Account and, thereafter, not later than 45 days after the end of each calendar quarter, a Financial Monitoring Report, in form and substance satisfactory to the Bank, which: (a) (i) sets forth actual sources and uses of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and uses of funds for the Project for the six-month period following the period covered by said report; and (ii) shows separately expenditures financed out of the proceeds of the GEF Trust Fund Grant during the period covered by said report and expenditures proposed to be financed out of the proceeds of the GEF Trust Fund Grant during the six-month period following the period covered by said report; (b) (i) describes physical progress in Project implementation, both cumulatively and for the period covered by said report; and (ii) explains variances between the actual and previously forecast implementation targets; and (c) sets forth the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the GEF Grant, as at the end of the period covered by said report.

Financial Conditions. (a) The Recipient shall and shall cause the Fund Manager to maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements, all in accordance with accounting standards acceptable to the Bank, consistently applied, adequate to reflect in accordance with sound accounting practices its operations and financial condition and to register separately the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shallshall and shall cause its Fund Manager to: (i) have its records, accounts and financial statements (balance sheets, statements of income and expenses and related statements) and the records and accounts referred to in paragraph (a) of this Section including those for the Project, GEF Special Account and ECP Commercial Fund for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section, for such year as so audited, and (B) an opinion on such statements and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records such records, accounts and accounts financial statements, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shallshall and shall cause the Fund Manager to: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one (1) year after the Bank has received the audit report for the fiscal year Fiscal Year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 1(b) of Schedule 4 to this Agreement, the Recipient shall and shall cause the Fund Manager to prepare and furnish to the Bank a financial monitoring report (FMR), in form and substance satisfactory to the Bank2, which: sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant and explains variances between the actual and planned uses of such funds; describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation3; ; and sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to the Bank not later than forty–five (45) days after the end of the first quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first quarter, thereafter, each FMR shall be furnished to the Bank not later than 45 days after each subsequent calendar quarter, and shall cover such quarter.

Financial Conditions. (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 including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain maintain, or cause to be maintained, in accordance with paragraph (a) of this Sectionwithsound accounting practices, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account or payment out of the Special Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a)(i) of this Section, including those for the Special Account, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested, including 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; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request.

Financial Conditions. (a) The Recipient shall cause BGK to maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements, all in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the its operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shallshall cause BGK to: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Bank), including statements in respect of the Partial Credit Guarantee Facility, audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such yearyear (or such other period agreed to by the Bank): (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year (or such other period agreed to by the Bank), the report of as so audited; and (B) an opinion on such audit statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish to the Bank such other information concerning said records and such records, accounts and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shallshall cause BGK to: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, ensure that all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expendituresexpenditures are retained until at least one year after the Bank has received the audit report for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Account was made; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditure are included in any audit that the annual audit referred Bank may have requested pursuant to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in Schedule 3 to this Agreement, the Recipient shall cause BGK to prepare and that furnish to the report Bank a financial monitoring report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned, Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first such FMR shall be furnished to whether the statements Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted under the Project through the end of such first calendar quarter; thereafter, each FMR shall be furnished to the Bank not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter. (a) Except as the Bank shall otherwise agree, the Recipient shall cause BGK to maintain a loss rate on non-performing loans of the Participating Banks supported by the Partial Credit Guarantee Facility under Part A of the Project, not exceeding 15% of the cumulative guarantee liability commitment of BGK by December 31, 2004 and thereafter until completion of the Project. “Loss rate on non-performing loans” will be calculated on cumulative basis as percentage of actual amounts paid out for called guarantees adjusted by amounts recovered divided by cumulative guarantee liability, i.e., actually disbursed loan amounts covered with guarantees. Section 4.04. Except as the Bank shall otherwise agree, the Recipient shall cause BGK to, through an official decision of its Management Board, set a target for the liability-to-reserves ratio of 1.5:1 for the first two calendar years of the Partial Credit Guarantee Facility until a review in the first quarter of the third calendar year. Thereafter, following an evaluation of the performance during the first two calendar years, the Recipient shall cause BGK to adjust such fiscal year, together target in a manner satisfactory to the Bank with the procedures and internal controls involved in their preparation, can be relied upon objective of achieving a liability-to-reserves ratio of 3:1. Section 4.05. The Recipient shall cause BGK not to support draw down on guarantee reserves for use as operating funds at any time during Project implementation without the related withdrawalsprior written approval of the Bank.

Financial Conditions. (a) The Recipient shall and shall cause UTE to maintain or cause to be maintained a financial management system, including records and accounts adequate to reflect accounts, and prepare financial statements in accordance with sound consistently applied accounting practices standards acceptable to the Bank, adequate to reflect: (i) in the case of the Recipient, the operations, resources and expenditures in respect related to the Project (including the operation of the Project Transit Accounts); and (ii) in the case of UTE, its operations and financial condition and to register separately the operations resources and expenditures related to Part B of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shallshall and shall cause UTE to: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for (in the Special Account case of the Recipient) and UTE’s financial statements (balance sheets, statements of income and expenses and related statements) (in the case of UTE) for each fiscal year (or other period agreed to by the Bank) audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six (6) months after the end of each such year, year (or such other period agreed to by the report Bank): (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Bank) so audited; and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shallshall and shall cause UTE to: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditure are included in the annual audit for each fiscal year (or other period agreed to by the Bank), referred to in paragraph (b) of this Section. (a) Without limitation upon the Recipient’s and UTE’s progress reporting obligations set out in Section 3.08 of this Agreement, the Recipient shall (for Parts A and that C of the report Project) and shall cause UTE (for Part B of the Project) to prepare and furnish to the Bank a financial monitoring report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Loan and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to whether the statements Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Bank not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year Fiscal Year (or other period agreed to by the Bank) audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors auditors, acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (or such other period agreed to by the report Bank), (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Bank), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of reports referred to in Part A.5 of Schedule 1 to this Agreement (Report-based Disbursements) or on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records reports and accounts statement of expenditures are included in the annual audit for each Fiscal Year (or other period agreed to by the Bank), referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 8 of Schedule 4 to this Agreement, the Recipient shall prepare and that furnish to the report Bank a Financial Monitoring Report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and previously forecast implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to whether the statements Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Bank not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (a) The For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall shall: (i) maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices practices, records and separate accounts reflecting such expenditures; (ii) ensure that all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures are retained until at least one year after the operations, resources and expenditures Bank has received the audit report for the fiscal year in respect of which the Project of last withdrawal from the departments or agencies of GEF Trust Fund Grant Account was made; and (iii) enable the Recipient responsible for carrying out the Project or any part thereofBank's representatives to examine such records. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) (i) of this Section including and those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, year the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains including 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; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request.

Financial Conditions. (a) The Recipient shall maintain or cause a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Bank, adequate to monitor and record the progress of the Project and of each Investment Project (including its costs and benefits to be maintained records derived from it) and accounts adequate to reflect in accordance with consistently maintained sound accounting practices the operations and financial condition of the Recipient and to register separately the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofand each Investment Project. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) Section 4.01 of this Section including those Agreement, accounts and financial statements (balance sheets, statements of income and expenses and related statements) and records and accounts for the Special Account for each fiscal year Fiscal Year audited, in accordance with appropriate sound auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of said financial statements for such years as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records records, accounts and accounts financial statements and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of Project Management Reports or statements of expenditureexpenditures, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year Fiscal Year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal yearFiscal Year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. The Recipient shall prepare, in accordance with guidelines acceptable to the Bank, and furnish to the Bank not later than 45 days after the end of each calendar quarter, a Project Management Report for such period, which: (a) (i) sets forth actual sources and applications of funds for the Project, both cumulatively and for the period covered by said report, and projected sources and applications of funds for the Project for the six-month period following the period covered by said report; and

Financial Conditions. (a) The Recipient shall and shall cause the Fund Manager to maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements, all in accordance with accounting standards acceptable to the Bank, consistently applied, adequate to reflect in accordance with sound accounting practices its operations and financial condition and to register separately the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shallshall and shall cause its Fund Manager to: (i) have the records and accounts referred to in paragraph (a) of this Section including those for the Project, GEF Special Account and ECP Commercial Fund for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section, for such year as so audited, and (B) an opinion on such statements and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records such records, accounts and accounts financial statements, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shallshall and shall cause the Fund Manager to: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one (1) year after the Bank has received the audit report for the fiscal year Fiscal Year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 1(b) of Schedule 4 to this Agreement, the Recipient shall and shall cause the Fund Manager to prepare and furnish to the Bank a financial monitoring report (FMR), in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant and explains variances between the actual and planned uses of such funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to the Bank not later than forty–five

Financial Conditions. (a) The Recipient shall maintain establish or cause to be maintained established, and maintain a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have or cause the records and accounts financial statements referred to in paragraph paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Bank), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such yearyear (or such other period agreed to by the Bank), (A) certified copies of the report financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Bank), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records reports and accounts statements of expenditure are included in the annual audit for each fiscal year (or other period agreed to by the Bank), referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in Schedule 4 to this Agreement, the Recipient shall prepare or cause to be prepared and that furnish to the report Bank a financial monitoring report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GEF Trust Fund Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to whether the statements Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Bank not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (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 and to register separately the departments or agencies of operations, resources and expenditures related to the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records and accounts referred to in paragraph (a) of this Section Section, including those for the Special Account Account, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; (iii) furnish to the Bank as soon as available but in any case not later than three months after the end of each semester, a report by said auditors on the statements of expenditures referred to in paragraph (c) of this Section; and (iiiiv) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Financial Conditions. (a) The Recipient shall establish and maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Association), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Association, by independent auditors acceptable to the BankAssociation; (ii) furnish to the Bank Association as soon as available, but in any case not later than six months after the end of each such yearyear (or such other period agreed to by the Association), (A) certified copies of the report financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Association), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedAssociation; and (iii) furnish to the Bank Association such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund PHRD Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund PHRD Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the BankAssociation’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditure are included in the annual audit for each fiscal year (or other period agreed to by the Association), referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 10 of Schedule 4 to this Agreement, the Recipient shall prepare and that furnish to the report Association a financial monitoring report, in form and substance satisfactory to the Association1, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the PHRD Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to whether the statements Association not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Association not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall establish and maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Association), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Association, by independent auditors acceptable to the BankAssociation; (ii) furnish to the Bank Association as soon as available, but in any case not later than six months after the end of each such yearyear (or such other period agreed to by the Association), (A) certified copies of the report financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Association), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedAssociation; and (iii) furnish to the Bank Association such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund PHRD Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund PHRD Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the BankAssociation’s representatives to examine such records; and (iviii) ensure that such records and accounts statements of expenditure are included in the annual audit for each fiscal year (or other period agreed to by the Association), referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 4 of Schedule 4 to this Agreement, the Recipient shall prepare and that furnish to the report Association a financial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the PHRD Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to whether the statements Association not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Association not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each year: (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such yearyear as so audited; and (B) an opinion on such statements, the records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof thereof, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Loan Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (a) The Recipient shall prepare and furnish to the Bank a Financial Monitoring Report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant, and explains variances between the actual and planned uses of such funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to the Bank not later than 45 days after the end of the first semester after the Effective Date, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first semester; thereafter, each FMR shall be furnished to the Bank not later than 45 days after each subsequent semester, and shall cover such semester.

Financial Conditions. (a) The Recipient shall maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in a format acceptable to the Trustee, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records records, accounts and accounts financial statements referred to in paragraph (a) of this Section including those and the records and accounts for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles standards acceptable to the Trustee, consistently applied, by independent auditors acceptable to the BankTrustee; (ii) furnish to the Bank Trustee as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited, and (B) an opinion on such statements, records and accounts and report of such audit audit, by said auditors, of such scope and in such detail as the Bank Trustee shall have reasonably requested; and (iii) furnish to the Bank Trustee such other information concerning said such records and accounts accounts, and the audit thereof thereof, and concerning said auditors, as the Bank shall Trustee may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank Trustee has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) ; enable the BankTrustee’s representatives to examine such records; and (iv) and 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. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 5 of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Trustee a financial monitoring report, in form and substance satisfactory to the Trustee, which: sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant and explains variances between the actual and planned uses of such funds; describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first Financial Monitoring Report shall be furnished to the Trustee not later than 45 days after the end of the first calendar quarter after the Effective Date of this Agreement, and shall cover the period from the incurrence of the first expenditure under the Project through the end of such first calendar quarter; thereafter, each Financial Monitoring Report shall be furnished to the Trustee not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Conditions. (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 Section, including those for the Special Account Account, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Financial Conditions. (a) The Recipient shall establish and maintain or cause to be maintained a financial management system, including records and accounts accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of related to the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereofProject. (b) The Recipient shall: (i) have the records and accounts financial statements referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year (or other period agreed to by the Bank), audited, in accordance with appropriate consistently applied auditing principles consistently appliedstandards acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such yearyear (or such other period agreed to by the Bank), (A) certified copies of the report financial statements referred to in paragraph (a) of this Section for such audit year (or other period agreed to by the Bank), as so audited, and (B) an opinion on such statements by said auditors, of such in scope and in such detail as satisfactory to the Bank shall have reasonably requestedBank; and (iii) furnish to the Bank such other information concerning said such records and accounts accounts, and the audit thereof of such financial statements, and concerning said auditors, as the Bank shall may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the GEF Trust Fund Grant Account were made on the basis of reports referred to in Part A.6 of Schedule 1 to this Agreement (Report-based Disbursements) or on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Bank has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the GEF Trust Fund Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Bank’s representatives to examine such records; and (iviii) ensure that such records reports and accounts statements of expenditure are included in the annual audit for each fiscal year (or other period agreed to by the Bank), referred to in paragraph (b) of this Section Section. (a) Without limitation upon the Recipient’s progress reporting obligations set out in paragraph 8 of Schedule 4 to this Agreement, the Recipient shall prepare and that furnish to the report Bank a financial monitoring report, in form and substance satisfactory to the Bank, which: (i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grant, and explains variances between the actual and planned uses of such audit contains a separate opinion funds; (ii) describes physical progress in Project implementation, both cumulatively and for the period covered by said auditors report, and explains variances between the actual and planned Project implementation ; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report. (b) The first FMR shall be furnished to whether the statements Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and shall cover the period from the incurrence of the first expenditure submitted during under the Project through the end of such fiscal yearfirst calendar quarter; thereafter, together with each FMR shall be furnished to the procedures Bank not later than 45 days after each subsequent calendar quarter, and internal controls involved in their preparation, can be relied upon to support the related withdrawalsshall cover such calendar quarter.