Common use of Financial Covenants Clause in Contracts

Financial Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’s 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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the its records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year audited, in accordance with appropriate auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 Section, for such year as so audited; and , and (B) an opinion on such statements, records and accounts statement and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records said records, accounts and accountsfinancial statements, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditureexpenditure or Project Management Reports, the Recipient Borrower 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 (1) year after the Association has received the audit report for the fiscal year Fiscal Year in which the last withdrawal from the Grant Credit Account was made, all records and documents (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’s representatives to examine such recordsrecords and documents; and (iv) ensure that such records records, documents 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. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of its financial management system for the Project in order to enable the Borrower, in form and substance satisfactory not later than April 1, 2002, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, whicheach of which shall: (i) sets (A) set forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) show separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit during the six-month period following the period covered by said report; (iiA) describes physical describe progress in Project implementation, both cumulatively and for the period covered by said report, and explains (B) explain variances between the actual and previously forecast and actual implementation targets; and (iii) sets set forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect the operations, resources in accordance with sound accounting practices its operations and expenditures related to the Projectfinancial condition. (b) The Recipient Borrower shall: (i) have the its records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 its financial statements referred to in paragraph (a) of this Section for such year as so audited; and and (B) an opinion on such statements, records and accounts and the report of such audit, audit by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records said records, accounts and accounts, and financial statements as well as the audit thereof, and concerning said auditors, thereof as the Association may Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower shall: (i) maintain or cause to be maintainedmaintain, in accordance with paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account Accounts for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of Financial Monitoring Reports or statements of expenditure, the Recipient Borrower 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 (1) year after the Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Borrower’s progress reporting obligations set out in Schedule 5 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring ReportReport (FMR), in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Grantloan, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in paragraph 21 of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter. Section 4.03. The Borrower shall make publicly available, and agrees that the Association may also make publicly available, each final audit report referred to in Section 4.01 of this Agreement, promptly after its issuance by the independent auditors referred to therein.

Financial Covenants. (a) The Recipient Borrower shall through ERTU maintain a financial management systemin respect of the Project, including records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures related to the Projectexpenditures. (b) The Recipient Borrower and BM shall: (i) have the records, records and accounts and financial statements referred to in paragraph paragraph (a) of this Section and the records and accounts including those for the respective Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association Association, as soon as available, but in any case not later than six months after the end of each such year; (A) , a certified copies copy 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 Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accountssaid records, accounts and the audit thereof, and concerning said auditors, thereof as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower and BM 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect reflect, separately, the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of Financial Monitoring Reports or statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Financial Monitoring 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 Borrower’s progress reporting obligations set out in paragraph 7 (b) of Section 4.01 of Schedule 5 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantLoan, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in paragraph 8 of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year (or other period agreed to by the Association), audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six nine months after the end of each such year; year (or such other period agreed to by the Association): (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 Association), as so audited; and and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of reports referred to in Part A.4 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 separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Association’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 Association), 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 withdrawalsSection. Section 4.02. (a) Without limitation upon the provisions Recipient’s progress reporting obligations set out in paragraph D of Section 4.01 of Schedule 4 to this Agreement, 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 actual and projected 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 projected actual and actual sources 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 previously forecast actual and actual planned Project 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 the Association not later than ninety (90) 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 Association not later than ninety (90) days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including and cause to be maintained records and 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 related to in respect of Part A of the Project. (b) The Recipient Borrower shall: (i) have the records, records and accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts including those for the respective Special Account Accounts for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such said records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish to the Association a Financial Monitoring Reportquarterly financial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for Part A of the Project, both cumulatively and for the period covered by said report, showing separately funds provided under expenditures financed out of the Grantproceeds of the Credit during the period covered by said report, and explains variances between the projected actual and actual sources and previously forecast 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under Part A of the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year (or other period agreed to by the Association), audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year; year (or such other period agreed to by the Association): (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 Association), as so audited; and and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of reports referred to in Part A.4 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 separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Association’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 Association), 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 withdrawalsSection. Section 4.02. (a) Without limitation upon the provisions Recipient’s progress reporting obligations set out in paragraph D of Section 4.01 of Schedule 4 to this Agreement, Agreement the Recipient shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Association 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 such first calendar quarter; thereafter, each FMR shall be furnished to the Association not later than forty-five (45) days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set forth in paragraph 8 of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 thirty (30) 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 thirty (30) days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain in SEC a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Borrower’s progress reporting obligations set out in Section 4.01 3.04 of this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected 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, Loan and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year (or other period agreed to by the Bank), audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently appliedBank, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association Bank as soon as available, but in any case not later than six months after the end of each such year; year (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), as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedBank; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association Bank 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 Association Bank has received the audit report for for, or covering, 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; (iiiii) enable the AssociationBank’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 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. Section 4.02. (a) Without limitation upon the provisions Recipient’s progress reporting obligations set out in paragraphs 4 and 5 of Section 4.01 of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Association Bank a Financial Monitoring Report, in form and substance satisfactory to the AssociationBank, which: (i) : sets forth actual and projected 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 projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) 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 Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationAdministrator, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationAdministrator, consistently applied, by independent auditors acceptable to the AssociationAdministrator; (ii) furnish to the Association Administrator as soon as available, but in any case not later than six four (4) 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Administrator shall have reasonably requested; and (iii) furnish to the Association Administrator such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Administrator may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of 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 (1) year after the Association Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationAdministrator’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 prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring ReportAdministrator for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Recipient, in form and substance satisfactory not later than December 31, 2001, or such later date as the Administrator shall agree, to prepare quarterly Project management reports, acceptable to the AssociationAdministrator, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds for the Project for the three-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 four-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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Grant, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account Accounts for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association Bank as soon as available, but in any case not later than six four (4) 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Borrower’s progress reporting obligations set out in Section 4.01 3.08 of this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected 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, Loan and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association Bank as soon as available, but in any case not later than six four (4) 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Borrower’s progress reporting obligations set out in Section 4.01 3.07 of this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected 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, Loan and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower, through CNBS, shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in Section 4.01 3.08 of this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) : sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationAdministrator, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationAdministrator, consistently applied, by independent auditors acceptable to the AssociationAdministrator; (ii) furnish to the Association Administrator 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Administrator shall have reasonably requested; and (iii) furnish to the Association Administrator such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Administrator may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of 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 (1) year after the Association Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationAdministrator’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 prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring ReportAdministrator for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Recipient, in form and substance satisfactory not later than December 31, 2001, or such later date as the Administrator shall agree, to prepare quarterly Project management reports, acceptable to the AssociationAdministrator, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds for the Project for the three-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 four-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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Grant, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a an accounting and financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditureexpenditure or Financial Monitoring Reports, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Financial Monitoring 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; and (v) furnish to the Association such other information concerning said records and accounts and the audit thereof as the Association shall from time to time reasonably request. Section 4.02. (a) Without limitation upon the provisions Borrower’s progress reporting obligations set out in paragraph 9 of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare prepare, in accordance with terms of reference acceptable to the Bank, and furnish to the Association Bank not later than 45 days after the end of the first calendar quarter after the Effective Date, and thereafter not later than 45 days after each calendar quarter, a Financial Monitoring Report, in form and substance satisfactory to the AssociationReport for such period, which: (ia) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected and actual sources and uses of such funds; (iib) describes physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the previously forecast and actual implementation targets; and (iiic) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the carrying out of the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section Section, and the records and accounts for the respective Special Account Account, for each fiscal year audited, in accordance with auditing standards acceptable to the Association, Association consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association Association, 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 paragraph (a) of this Section for such year as so audited; and , and (B) an opinion on such financial statements, records and accounts and a report of such audit, audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such said records and accounts, accounts and the audit thereof, and concerning said auditors, as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;; and (iii) enable the Association’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 each 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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 (1) year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than December 31, 2002, or such later date as the Association shall agree, to prepare quarterly Project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds 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 Credit during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and including the records and accounts for the respective Special Account for each fiscal year audited, audited in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not no later than six months after the end of each such year; Fiscal Year: (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year period as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports, or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year Fiscal Year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than 18 months following the Effective Date, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) and sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Upon the Association’s request, the Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts Section, audited, for the respective Special Account for each fiscal year auditedperiod indicated in the Association’s request, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end date of each the Association’s request for such year; audit: (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year period as so audited; and and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requested; andAssociation; (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of reports referred to in paragraph 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 separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association has received the audit report for end of the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable furnish to the Association’s representatives to examine Association other relevant information concerning such recordsrecords as the Association shall have requested; and (iviii) ensure that such records and accounts reports or statements of expenditure are included in any audit that the annual audit referred Association 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. Section 4.02. (a) Without limitation upon the provisions Recipient’s progress reporting obligations set out in paragraph C of Section 4.01 of Schedule 4 to this Agreement, 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 actual and projected 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 projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Association not later than 45 days after the end of the first six month period 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 six month period; thereafter, each FMR shall be furnished to the Association not later than 45 days after each subsequent six month period, and shall cover such six month period.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, Association adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such said records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected and actual sources and 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 previously forecast and actual implementation targets; 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 the Association not later than 45 days after the end of the 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 Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, records and accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts including those for the respective Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such said records and accounts, accounts and the audit thereof, and concerning said auditors, thereof as the Association may Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;and (iii) enable the AssociationBank’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 Borrower’s progress reporting obligations set out in Section 4.01 3.03 of this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantLoan, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements statements, all in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the its operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) : have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year (or other period agreed to by the Association) audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) ; furnish to the Association as soon as available, but in any case not later than six months after the end of each such year; year (or such other period agreed to by the Association), (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 Association), as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) and furnish to the Association such other information concerning such records and accountsrecords, accounts and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, ensure that all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) expenditures are retained until at least one year after the Association has received the audit report for, or covering, the fiscal year in which the last withdrawal from the Credit Account was made; enable the Association’s representatives to examine such records; and (iv) and ensure that such records and accounts reports or statements of expenditure are included in any audit that the annual audit referred Association 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. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of 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 actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Borrower’s progress reporting obligations set out in paragraph 1 (a) of Section 4.01 of Schedule 5 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected 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, Loan and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account Accounts for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in Sections H and I of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;; records; and (iii) enable the AssociationBank’s representatives to examine such records; andsuch (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 Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring ReportBank for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than December 31, 2000, or such later date as the Bank shall agree, to prepare quarterly Project Management Reports, acceptable to the AssociationBank, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Loan during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Loan 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Loan, 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 Borrower 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.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including or cause to be maintained records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures related to in respect of the ProjectProject of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof, including the operations and financial condition of PSC, OVSC, SMC and ASC. (b) The Recipient Borrower shall: (i) have the records, records and accounts and financial statements referred to in paragraph (a) of this Section and PSC’s, OVSC’s, SMC’s and ASC’s financial statements (balance sheets, statements of income and expenses and related statements) and the records and accounts for pertaining to the respective Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the AssociationAdministrator; (ii) furnish to the Association 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; 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 Association Administrator shall have reasonably requested, and certified copies of the financial statements of PSC, OVSC, SMC and ASC for such year as so audited; and (iii) furnish to the Association Administrator such other information concerning such said records and accounts, accounts and the audit thereof, and concerning said auditors, thereof as the Association may Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Interim Fund Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Interim Fund Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationAdministrator’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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 (1) year after the Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Borrower’s progress reporting obligations set out in paragraph 3 of Section 4.01 of Schedule 5 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected 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, Loan and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year (or other period agreed to by the Bank), audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently appliedBank, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association Bank as soon as available, but in any case not later than six months after the end of each such year; year (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), as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedBank; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association Bank 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 Association Bank has received the audit report for for, or covering, 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; (iiiii) enable the AssociationBank’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 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. Section 4.02. (a) Without limitation upon the provisions Recipient’s progress reporting obligations set out in paragraphs 4 and 5 of Section 4.01 of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Association Bank a Financial Monitoring Report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected 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 projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shallBorrower shall through FSDC: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such financial statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Financial Monitoring Reports or statements of expenditure, the Recipient shallBorrower shall through FSDC: (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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Financial Monitoring 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 reporting obligations set forth in Sections 3.04 of this Agreement, the Recipient Borrower shall through FSDC prepare and furnish to the Association a Financial Monitoring ReportBank financial monitoring reports, in form and substance satisfactory to the AssociationBank, which: (i) sets set forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantLoan, and explains variances between the projected actual and actual sources and planned uses of such funds; (ii) describes describe physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) sets set 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 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 such first calendar quarter; thereafter, each Financial Monitoring Report shall be furnished to the Bank not later than forty-five (45) days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including or cause to be maintained records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures related to in respect of the ProjectProject of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Recipient Borrower shall: (i) have the records, records and accounts and financial statements referred to in paragraph para- graph (a) of this Section and the records and accounts including those for the respective Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association Association, as soon as available, but in any case not later than six nine months after the end of each such year; (A) , a certified copies copy 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 Association shall have reasonably requested; (iii) furnish to the Association, as soon as available, but in any case not later than four months after the end of each such year, a copy of the report of unaudited accounts for the preceding year; and (iiiiv) furnish to the Association such other information concerning such records and accountssaid records, accounts and the audit thereof, and concerning said auditors, thereof as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Associa- tion has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 proce- dures and internal controls involved in their preparationpre- paration, 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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports, or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than eighteen months after the Effective Date, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 paragraph (a) of this Section for such year as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;; and (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than December 31, 2000, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in Section III of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account Accounts for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than eighteen (18) months after the Effective Date, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds 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 Credit during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Credit 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 explains variances between the previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall at all times maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring ReportBank for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, not later than September 30, 2001, or such later date as the Bank shall agree, to prepare semi-annual reports in form accordance with the provisions of Section C of Schedule 5 to this Agreement and substance satisfactory acceptable to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said reportBank.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year (or other period agreed to by the Association), audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year; year (or such other period agreed to by the Association), (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 Association), as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit 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 Borrower 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 Association has received the audit report for for, or covering, the fiscal year Fiscal Year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Association’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 Association), referred to in paragraph (b) of this Section. (d) Without limitation to the generality of Section and that 4.01 (b), the report Borrower shall carry out an additional audit of such audit contains a separate opinion by said auditors as to whether the statements Participating LGAs, during each Fiscal Year of expenditure submitted during such fiscal yearProject implementation, together in accordance with terms of reference agreed upon with the procedures and internal controls involved Association. The said audit shall be carried out in their preparationaccordance with consistently applied auditing standards acceptable to the Association, can be relied upon by independent auditors acceptable to support the related withdrawalsAssociation. Section 4.02. (a) Without limitation upon the provisions Borrower’s progress reporting obligations set out in paragraphs 8 (c) and (d) of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) : sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Borrower’s progress reporting obligations set out in paragraph 1 (a) of Section 4.01 of Schedule 5 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Reportfinancial monitoring report (FMR), in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantLoan, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than 18 months after the Effective Date or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account Accounts for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts accounts, and the report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records records, accounts and accountsfinancial statements, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account Financing Accounts were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Account Financing Accounts was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in paragraph 1 of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantFinancing, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, Association consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six (6) months after the end of each such fiscal year; , (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year as so audited; and , and (B) an opinion on such financial statements, records and accounts and a report of such audit, audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, accounts and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditureProject Management Reports, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Project Management Reports 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. Section 4.02. (a) Without limitation upon The Borrower shall prepare, in accordance with guidelines acceptable to the provisions of Section 4.01 of this AgreementAssociation, the Recipient shall prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, a Financial Monitoring Report, in form and substance satisfactory to the Association, Project Management Report for such period which: (a) (i) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (ii) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit during the six-month period following the period covered by said report; (iib) (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 and actual implementation targets; and (iiic) sets forth the status of procurement under Parts X, X.0, X, X, X.0, X.0, X.0, X.0, X.0, J and K.1 of the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account Accounts for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts accounts, and the report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records records, accounts and accounts, financial statements and the audit thereof, and concerning said auditors, as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’s 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 Recipient’s progress reporting obligations set out in paragraph 5 of this Agreement, the Recipient shall cause TACAIDS/ZAC, as the case may be, to prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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, Grant and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year (or other period agreed to by the Association) audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 Association): (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 Association), as so audited; and and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the NZAID Grant Account were made on the basis of statements reports referred to in Part A.4 of expenditureSchedule 1 to this Agreement (Report-based Disbursements), 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 (1) year after the Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the NZAID Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Association’s representatives to examine such records; and (iviii) ensure that such records and accounts reports 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 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. Section 4.02. (a) Without limitation upon the provisions Recipient’s progress reporting obligations set out in paragraph 14 of Section 4.01 of this Schedule 4 to the Credit Agreement, the Recipient shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) : sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the NZAID Grant, and explains variances between the projected actual and actual sources and planned uses of such funds; (ii) ; describes physical progress in Project implementationimplementation of the Project, both cumulatively and for the period covered by said report, and explains variances between the previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) 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 Association 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 such first calendar quarter; thereafter, each financial monitoring report shall be furnished to the Association not later than forty-five (45) days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of Financial Monitoring Reports or statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Financial Monitoring 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 Borrower’s progress reporting obligations set out in paragraph C.1 of Section 4.01 of Schedule 5 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantLoan, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) 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 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 Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Financial Monitoring Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Financial Monitoring 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 Borrower’s progress reporting obligations set out in paragraph 8 (a), (b) and (c) of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association not later than 45 days after the end of the first calendar quarter after the Effective Date, and thereafter not later than 45 days after each calendar quarter, a Financial Monitoring ReportReport for such period, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected and actual sources and 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 previously forecast and actual 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in paragraph 1 of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account Accounts for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’s 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 Recipient’s progress reporting obligations set out in Section 4.01 of this Agreement, the Recipient shall prepare and furnish to the Association association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year Fiscal Year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than December 31, 2000, or such later date as the Association shall agree, to prepare quarterly Project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such funds; (ii) describes physical progress in funds for the Project implementation, both cumulatively and for the six-month period following the period covered by said report, and explains variances between the previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shallBorrower shall through FSDC: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Financial Monitoring Reports or statements of expenditure, the Recipient shallBorrower shall through FSDC: (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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Financial Monitoring 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 reporting obligations set forth in Sections 3.04 of this Agreement, the Recipient Borrower shall through FSDC prepare and furnish to the Association a Financial Monitoring ReportBank financial monitoring reports, in form and substance satisfactory to the AssociationBank, which: (i) sets set forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantLoan, and explains variances between the projected actual and actual sources and planned uses of such funds; (ii) describes describe physical progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) sets set forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall at all times maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring ReportBank for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, not later than July 31, 2001, or such later date as the Bank shall agree, to prepare semi-annual reports in form accordance with the provisions of Section C of Schedule 5 to this Agreement and substance satisfactory acceptable to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said reportBank.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year (or such other period agreed to by the Association) audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year; Fiscal Year (or such other period agreed to by the Association), (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 Association) as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) furnish to the Association such other information concerning such said records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Report-based Disbursements or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for for, or covering, the fiscal year Fiscal Year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Association’s representatives to examine such records; and (iviii) ensure that such records and accounts reports or 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 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. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of Borrower’s progress reporting obligations set out in Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for Parts A through D of the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources and planned uses of such funds; (ii) describes physical progress in Project implementationimplementation of Parts A through D of the Project, both cumulatively and for the period covered by said report, and explains variances between the previously forecast actual and actual planned Project implementation targets; and (iii) sets forth the status of procurement under Parts A through D of the Project, as at the end of the period covered by said report. (b) The first FMR 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient AWSA shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect the in accordance with sound accounting practices its operations, resources and expenditures related to of AWSA in respect of Parts F and G.2 of the ProjectProject (Project Accounts). (b) The Recipient AWSA shall: (i) have the its records, accounts and financial state- ments (balance sheets, statements referred to in paragraph (aof income and expenses and related statements) of this Section including the Project Accounts and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six twelve months after the end of each of the first two years, and thereafter, not later than nine months after the end of each such year; year (A) certified copies of the its financial statements referred to in paragraph (a) of this Section and the Project Accounts for such year as so audited; and , and (B) an opinion on such statements, records and accounts and the report of such audit, audit by said auditors, of such scope and in such detail as the Association shall have reasonably reason- ably requested; and (iii) furnish to the Association such other information concerning such records said records, accounts and accounts, and financial statements as well as the audit thereof, and concerning said auditors, as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient AWSA shall: (i) maintain or cause to be maintained, maintained in accordance with paragraph (a) of this Sectionsound accounting practices, records and separate accounts reflecting such expenditures; (ii) retainensure that all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures are retained until at least one year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’s representatives to examine such records; and (iv) ensure that such records and accounts are included includ- ed 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 audi- tors 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 prepare and furnish to Except as the Association a Financial Monitoring Reportshall otherwise agree, AWSA shall produce for each of its fiscal years after its fiscal year ending on June 30, 1992, total revenues equivalent to not less than the sum of: (i) its total operating expenses; and (ii) the amount by which debt service requirements exceed the provision for depreciation. (b) Before June 30 in form each of its fiscal years, AWSA shall, on the basis of forecasts prepared by AWSA and substance satisfactory to the Association, whichreview whether it would meet the requirements set forth in paragraph (a) in respect of such year and the next following fiscal year and shall furnish to the Association the results of such review upon its completion. (c) If any such review shows that AWSA would not meet the requirements set forth in paragraph (a) for AWSA’s fiscal years covered by such review, AWSA shall promptly take all necessary measures in order to meet such requirement. (d) For purposes of this Section: (i) sets forth actual The term "total revenues" means the sum of total operating revenues and projected 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 projected and actual sources and uses of such funds;net non-operating income. (ii) describes physical progress in Project implementation, both cumulatively and for The term "total operating revenues" means revenues from all sources related to operations. (iii) The term "net non-operating income" means the period covered by said report, and explains variances between the previously forecast and actual implementation targetsdifference between: (A) revenues from all sources other than those related to operations; and (iiiB) sets forth expenses, including taxes and payments in lieu of taxes, incurred in the status generation of procurement under revenues in (A) above. (iv) The term "total operating expenses" means all expenses related to operations, including admin- istration, adequate maintenance, taxes and pay- ments in lieu of taxes, and provision for depre- ciation on a straight-line basis at a rate of about 3% per annum of the Projectaverage current gross value of AWSA’s fixed assets in operation, or other basis acceptable to the Association, but excluding interest and other charges on debt. (v) The average current gross value of the AWSA’s fixed assets in operation shall be calculated as one half of the sum of the gross value of AWSA’s fixed assets in operation at the beginning and at the end of the period covered by said reportfiscal year. (vi) The term "debt service requirements" means the aggregate amount of repayments or principal and interest.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditureexpenditure or Project Management Reports, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 or Project Management 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. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than eighteen months after the Effective Date, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, consisting of three separate, but coherent reports of which: (i) the financial report: (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds 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 Credit during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Credit during the six-month period following the period covered by said report; (ii) the status report: (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 and actual implementation targets, as the case may be; and (iii) the procurement report sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 (1) year after the Association Bank has received the audit report for the fiscal year Fiscal Year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient The Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Reportfinancial monitoring report (FMR), in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantLoan, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) sets forth the status of procurement under the Project, as at of 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 forty-five (45) days after each subsequent quarter, and shall cover such quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than June 30, 2001, or such later date as the Association shall agree, to prepare quarterly Project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds 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 Credit during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, 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 Borrower shall prepare, in accordance with guidelines acceptable to the Association, and furnish to the Association not later than 45 days after the end of each calendar quarter a Project Management Report for such period.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section Section, and the records and accounts for the respective Special Account Accounts, for each fiscal year auditedFiscal Year, audited in accordance with auditing standards acceptable to the Association, consistently applied, applied by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six (6) months after the end of each such year; Fiscal Year, (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year Fiscal Year as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 (1) year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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. Section 4.02. (a) Without limitation upon the provisions Borrower’s progress reporting obligations set out in paragraph B (ii) of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 forty-five 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 Monitoring Report shall be furnished to the Association not later than forty-five days after each subsequent calendar semester, and shall cover such calendar semester.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources resources, and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year (or other period agreed to by the Association) audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 Association), (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 Association), as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit 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 Borrower 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 (1) year after the Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts receipts, and other documents) evidencing such expenditures; (iiiii) enable the Association’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 Association), 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 withdrawalsSection. Section 4.02. (a) Without limitation upon the provisions Borrower’s progress reporting obligations set out in Part D of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare through MININFRA and RURA in respect of Parts B.3 and C.2-3 of the Project, and cause ELECTROGAZ to prepare in respect of Parts A, B.1-2, and C.1 of the Project, and furnish to the Association a Financial Monitoring Reportan FMR, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter. (a) Except as the Association shall otherwise agree, the Borrower shall ensure that ELECTROGAZ shall produce: (i) for each of Fiscal Years 2005 and 2006, total revenues equivalent to not less than the sum of ELECTROGAZ’s total operating expenses; (ii) for Fiscal Year 2007, total revenues equivalent to not less than the sum of ELECTROGAZ’s (A) total operating expenses; and

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year (or other period agreed to by the Association) audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year; year (or such other period agreed to by the Association), (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 Association), as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Credit Account and the DFID Grant Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the Grant Credit Account and the DFID Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Association’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 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. Section 4.02. (a) Without limitation upon the provisions Borrower’s progress reporting obligations set out in paragraph 1 of Section 4.01 of this AgreementSchedule 4, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Credit and the DFID Grant, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Association 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 such first calendar quarter; thereafter, each FMR shall be furnished to the Association not later than forty-five (45) days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in paragraph D of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Association 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 such first calendar quarter; thereafter, each FMR shall be furnished to the Association not later than forty five (45) days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association;by (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than eighteen (18) months after the Effective Date, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditureProject Management Reports, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Project Management 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. (a) Without limitation upon The Borrower shall prepare, in accordance with guidelines acceptable to the provisions of Section 4.01 of this AgreementBank, the Recipient shall prepare and furnish to the Association Bank not later than 45 days after the end of each calendar quarter, a Financial Monitoring Report, in form and substance satisfactory to the AssociationProject Management Report for such period, which: (a) (i) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (ii) shows separately expenditures financed out of the projected proceeds of the Loan during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Loan during the six-month period following the period covered by said report; (iib) (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 and actual implementation targets; and (iiic) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Loan, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 paragraph (a) of this Section for such year as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditureProject Management Reports, the Recipient Borrower shall: (i) maintain or cause to be maintained, in accordance with paragraph paragraph (a) of this Section, records and separate accounts reflecting such expenditures;; and (ii) retain, until at least one year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare, in accordance with guidelines acceptable to the provisions of Section 4.01 of this AgreementAssociation, the Recipient shall prepare and furnish to the Association not later than 45 days after the end of each calendar quarter, a Financial Monitoring Report, in form and substance satisfactory to the AssociationProject management report for such period, which: (a) (i) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such funds; (ii) describes physical progress in funds for the Project implementation, both cumulatively and for the six-month period following the period covered by said report, and explains variances between the previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient shall maintain a financial management system, including or cause to be maintained records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect the reflect, in accordance with generally accepted accounting principles, consistently applied, its operations, resources and expenditures related to in respect of the ProjectTechnical Assistance. (b) The Recipient shall: (i) have the records, records and accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with generally accepted auditing standards acceptable to the Associationstandards, consistently applied, by independent internationally recruited auditors acceptable to the AssociationAdministrator; (ii) furnish to the Association Administrator, as soon as available, 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, by said auditors, auditors of such scope and in such detail as the Association Administrator shall have reasonably requested; and; (iii) furnish to the Association Administrator such other information concerning such the said records and accounts, accounts and the audit thereof, and concerning said auditors, thereof as the Association may Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintainedmaintain, in accordance with the provisions of paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationAdministrator’s representatives representatives, based on an appropriate notice, 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 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. Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of 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 actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in paragraph 1 of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) : sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than June 30, 2001, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain or cause to be maintained a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in paragraph 1 (a) of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 (FMR) 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient HYLSA shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect in accordance with sound accounting practices its operations and financial condition, including separate accounts reflecting the operations, resources and expenditures related to Part C of the Project. (b) The Recipient HYLSA shall: (i) have the records, accounts referred to in (a) above and financial statements referred to in paragraph (abalance sheets, statements of income and expenses and related statements) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with generally accepted auditing standards acceptable to the Association, and procedures consistently applied, by independent auditors acceptable to the Associationand qualified auditors; (ii) furnish to the Association Bank as soon as available, but in any case not later than six months after the end of each such year; : (A) a certified copies copy of the its financial statements referred to in paragraph (a) of this Section for such year as so audited; and , and (B) an opinion on such statements, records and accounts and a certified copy of the report of such audit, audit by said auditors, auditors of such scope and in such detail as the Association Bank shall have reasonably requested; requested and (iii) furnish to the Association Bank such other information concerning such records said accounts and accountsfinancial statements, and as well as the audit thereof, and concerning said auditorsrecords, as the Association may Bank shall from time to time reasonably request. (c) For all expenditures in carrying out Part C of the Project and with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient HYLSA shall: (i) maintain maintain, or cause to be maintained, in accordance with paragraph (a) of this Section, separate records and separate accounts reflecting such expenditures; (ii) retain, or cause to be retained, until at least one year after the Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’s representatives to examine such records; and (iv) ensure that such records and separate accounts are included in the annual audit audits referred to in paragraph (b) of this Section and that the report thereof contains, in respect of such audit contains separate .accounts, a separate opinion by said auditors as to whether the statements proceeds of expenditure submitted during the Loan withdrawn in respect of such fiscal year, together with expenditures were used for the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawalspurposes for which they were provided. Section 4.02. HYLSA shall take all action as shall be required to: (a) Without limitation upon formulate with its creditors a debt restructuring plan for the provisions purpose of Section 4.01 rescheduling and/or restructuring its currently outstanding debt and taking into account HYLSA’s financing plan for Part C of this Agreementthe Project, the Recipient shall prepare and furnish to the Association a Financial Monitoring Report(b) formalize one or more agreements, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual with such creditors for purposes of implementing such debt restructuring plan and projected sources and uses of funds taking into account XXXXX’s financing plan 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said reportproject.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested, including as part of the information to be provided in each report a management letter concerning internal controls; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 Association 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 Association not later than 45 days after each subsequent semester, and shall cover such semester.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in paragraph 7 of Section 4.01 of this Agreement, the Recipient Schedule 4. The Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management systemmaintain, including through MDU, separate records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures related to in respect of the ProjectParts of the Project carried out by the borrower. (b) The Recipient Borrower shall: (i) have the records, records and accounts and financial statements referred to in paragraph (a) of this Section including those for CESA and the records and accounts for the respective Special Account FESA for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such said records and accounts, accounts and the audit thereof, and concerning said auditors, thereof as the Association may Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Tianjin shall maintain a financial management systemmaintain, including or cause to be maintained, records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures related to in respect of the ProjectProject of the departments or agencies of Tianjin responsible for carrying out the Project or any part thereof. (b) The Recipient Tianjin shall: (i) have the records, records and accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such said records and accounts, accounts and the audit thereof, and concerning said auditors, thereof as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Tianjin 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 4.023.02. (a) Without limitation upon Beginning in June, 1994, Tianjin shall review and analyze the provisions financial statements and financial projections of Section 4.01 of this AgreementPTC, the Recipient shall prepare Drainage Department and furnish the Fund and submit its analysis, the statements and projections to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses within six months 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said reporteach fiscal year.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements Project Management Reports or statement of expenditureexpenditures, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures); (iii) enable the AssociationBank’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring ReportBank for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower not later than six months after the Effective Date, in form and substance satisfactory or such later date as the Bank shall agree, to prepare quarterly Project management reports, acceptable to the Association, Bank each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such funds; (ii) describes physical progress in funds for the Project implementation, both cumulatively and for the six-month period following the period covered by said report, and explains variances between the previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall cause each of PR and NHB to maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect the operations, resources in accordance with sound accounting practices its operations and expenditures related to the Projectfinancial condition. (b) The Recipient shallBorrower shall cause each of PR and NHB to: (i) have the its records, accounts and financial statements referred to in paragraph (abalance sheets, statements of income and expenses and related statements) of this Section and the records and accounts for the respective its Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association Bank as soon as available, but in any case not later than six months with respect to NHB and nine months with respect to PR, after the end of each such year; : (A) certified copies of the its financial statements referred to in paragraph (a) of this Section for such year as so audited; and , and (B) an opinion on such statements, records and accounts and the report of such audit, audit by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records records, accounts and accounts, financial statements and the audit thereof, and concerning said auditors, thereof as the Association may Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient shallBorrower shall cause each of PR and NHB to: (i) maintain or cause to be maintainedmaintain, 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 4.02. The Borrower shall cause PR to maintain, as of the beginning of the fiscal year 1991/92, separate financial accounts for each of its different traffic streams, manufacturing units and PSOs. Section 4.03. The Borrower, the Bank and PR shall review, during the month of March in each year, the levels of PR’s tariffs with a view to agreeing on the annual adjustments required to such tariffs so as to ensure: (a) Without limitation upon that the provisions of Section 4.01 of 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 actual and projected 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 projected and actual sources and uses rate of such funds; (ii) describes physical progress adjustments shall be above the inflation rate in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectPakistan, as at such inflation rate is projected in the end Consumer Price Index of Pakistan; (b) that the period covered by said reportoperating deficits of PR shall be progressively reduced; and (c) that PR shall be able, starting not later than the fiscal year 1994/95, to finance a reasoanble portion of its capital expenditures.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring ReportBank for the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than March 31, 2001, or such later date as the Bank shall agree, to prepare quarterly project management reports, acceptable to the AssociationBank, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Loan during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Loan 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Loan, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than June 30, 2002, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds 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 Credit during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including or cause to be maintained records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures related to in respect of the ProjectProject of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Recipient Borrower shall: (i) have the records, records and accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts including those for the respective Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association Association, as soon as available, but in any case not later than six months after the end of each such year;, (A) a certified copies copy 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 Association shall have reasonably requestedrequested and (B) consolidated copies of the audit reports furnished to the Borrower by each Project Province pursuant to the provisions of Part B.9 of the Annex to Schedule 4 to this Agreement; and (iii) furnish to the Association such other information concerning such records and accountssaid records, accounts and the audit thereof, and concerning said auditors, thereof as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit 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 Association’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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall cause PMU to establish and at all times maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shallBorrower shall cause PMU to: (i) have the records, records and accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts including those for the respective Special Account for each fiscal year audited, in accordance with auditing principles standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , 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 Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such said records and accounts, accounts and the audit thereof, thereof and concerning said auditors, as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’s representatives to examine such records; and (iviii) 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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than December 30, 2000, or such later date as the Association shall agree, to prepare quarterly project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds 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 Credit during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including or cause to be maintained records and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect reflect, in accordance with sound accounting practices the operations, resources and expenditures related to in respect of the ProjectProject of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Recipient Borrower shall: (i) have the records, records and accounts and financial statements referred to in paragraph para- graph (a) of this Section and the records and accounts Section, including those for the respective Special Account for each fiscal year auditedyear, audited in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 Association 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 Association such other information concerning such said records and accounts, accounts and the audit thereof, and concerning said auditors, thereof as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account Accounts for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were Report-based disbursements or 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’s 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 or the reports referred to in Part A.5 of Schedule 1 to this Agreement, as the case may be, 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 Recipient’s progress reporting obligations set out in Paragraphs F and G of Section 4.01 of Schedule 4 to this Agreement, the Recipient shall shall, prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) : sets forth actual and projected 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, Financing and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned Project implementation; and (iii) 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 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 Covenants. (a) The Recipient shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year (or other period agreed to by the Association), audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year; year (or such other period agreed to by the Association): (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 Association), as so audited; and and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of 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 separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Association’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 Association), 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 withdrawalsSection. Section 4.02. (a) Without limitation upon the provisions Recipient’s progress reporting obligations set out in paragraphs 7 through 9 of Section 4.01 of Schedule 4 to this Agreement, the Recipient shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) : sets forth actual and projected 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 Grant, and explains variances between the projected actual and actual sources and planned uses of such funds; (ii) ; describes physical progress in Project implementationimplementation of Part C of the Project, both cumulatively and for the period covered by said report, and explains variances between the previously forecast actual and actual planned implementation targetsof Part C of the Project; and (iii) and 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 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 Part C of the Project through the end of such first calendar quarter; thereafter, each FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 paragraph (a) of this Section for such year as so audited; and , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year Fiscal Year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;; and (iii) enable the Association’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. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than October 1, 2000, or such later date as the Association shall agree, to prepare quarterly Project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report Report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, made all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than March 31, 2002 or such later date as the Association shall agree, to prepare quarterly Project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such funds; (ii) describes physical progress in funds for the Project implementation, both cumulatively and for the six-month period following the period covered by said report, and explains variances between the previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and a report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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) retainensure that all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures are retained until at least one year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;and (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than December 31, 2001, or such later date as the Association shall agree, to prepare quarterly Project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds 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 Credit during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Credit 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 explains variances between the previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of its financial management system for the Project in order to enable the Borrower, in form and substance satisfactory not later than 18 months after the Effective Date, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such financial statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than December 31, 2002, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds 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 Credit during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening its financial management system for the Project in order to enable the Borrower, in form and substance satisfactory not later than 18 months after the Effectiveness Date, or such later date as the Association shall agree, to prepare quarterly Project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications 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 projected and actual sources and uses applications of such fundsfunds 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 Credit during the period covered by said report and expenditures proposed to be financed out of the proceeds of the Credit during the six-month period following the period covered by said report; (ii) (A) describes physical progress in Project implementationimplementing the Annual Work Programs, both cumulatively and for the period covered by said report, ; and (B) explains variances between the actual and previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and separate accounts reflecting such expenditures; (ii) retain, until at least one year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’s 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 prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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 projected and actual sources and 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 previously forecast and actual implementation targets; and (iii) and 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 the Association not later than 45 days after the end of the 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 Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the AssociationBank, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the AssociationBank, consistently applied, by independent auditors acceptable to the AssociationBank; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association Bank shall have reasonably requested; and (iii) furnish to the Association Bank such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association Bank may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Loan Account were Report-based Disbursements or were made on the basis of statements of expenditure, the Recipient Borrower 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 Association Bank has received the audit report for the fiscal year in which the last withdrawal from the Grant Loan Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the AssociationBank’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 or the reports referred to in Part A. 4 of Schedule 1 to this Agreement, as the case may be, 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 Borrower’s progress reporting obligations set out in paragraph 10 of Section 4.01 of Schedule 5 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association Bank a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the AssociationBank, which: (i) sets forth actual and projected 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, Loan and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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. Section 4.03. The Borrower shall make publicly available, and agrees that the Bank may also make publicly available, each final audit report referred to in Section 4.01 of this Agreement, promptly after its issuance by the independent auditors referred to therein.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account Accounts for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than nine months after the end of the first such year and thereafter 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Section 4.01 of this Agreement, the Recipient Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, not later than the Mid-term Review referred to in form and substance satisfactory paragraph 9 of Schedule 4 to this Agreement, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six three 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, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;; and (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than December 31, 2001, or such later date as the Association shall agree, to prepare quarterly Project Management Reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year (or other period agreed to by the Association), audited, in accordance with consistently applied auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year; year (or such other period agreed to by the Association): (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 Association), as so audited; and and (B) an opinion on such statements, records and accounts and report of such audit, statements by said auditors, of such in scope and in such detail as satisfactory to the Association shall have reasonably requestedAssociation; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereofof such financial statements, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit 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 Borrower 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 Association has received the audit report for for, or covering, the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iiiii) enable the Association’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 Association), 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 withdrawalsSection. Section 4.02. (a) Without limitation upon the provisions Borrower’s progress reporting obligations set out in paragraph 3 of Section 4.01 of Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient BNR shall cause DPM to maintain a financial management system, including records procedures and accounts, and prepare financial statements in a format acceptable to the Association, accounts adequate to reflect monitor and record the operationsprogress of Parts A and C.3 of the Project and of each Investment Project (including its cost and the benefits to be derived from it) and to reflect, resources in accordance with consistently maintained sound accounting practices, its operations and expenditures related to the Projectfinancial condition. (b) The Recipient shallBNR shall cause DPM to: (i) have the its records, accounts and financial statements referred to in paragraph (abalance sheets, statements of income and expenses and related statements) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with appropriate auditing standards acceptable to the Association, principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 its financial statements referred to in paragraph (a) of this Section for such year as so audited; and and (B) an opinion on such statements, records and accounts and the report of such audit, audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records said records, accounts and accounts, and financial statements as well as the audit thereof, and concerning said auditors, as the Association may shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient BNR 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account or payment out of the Special Account A was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 4.023.02. (a) Without limitation upon the provisions of Section 4.01 of this Agreement, the Recipient BNR shall prepare and furnish take such steps satisfactory to the Association a Financial Monitoring Report, as shall be necessary to protect itself against risk of loss resulting from changes in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses rates 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 exchange between the projected and actual sources and uses of such funds; (ii) describes physical progress various currencies, including Rwandese Franc, used in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the previously forecast and actual implementation targets; and (iii) sets forth the status of procurement under the Project, as at the end of the period covered by said reportits operations.

Financial Covenants. (a) The Recipient Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year Fiscal Year annually audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 AgreementBorrower’s progress reporting obligations, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring Reportfinancial monitoring report, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the GrantCredit, and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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 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 FMR shall be furnished to the Association not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than November 30, 2002, or such later date as the Association shall agree, to prepare quarterly Project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 , and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Credit Account were made on the basis of Project Management Reports or statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Grant Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower shall prepare and furnish carry out a time-bound action plan acceptable to the Association a Financial Monitoring Reportfor the strengthening of the financial management system referred to in paragraph (a) of said Section 4.01 in order to enable the Borrower, in form and substance satisfactory not later than June 30, 2002, or such later date as the Association shall agree, to prepare quarterly Project management reports, acceptable to the Association, each of which: (i) (A) sets forth actual and projected sources and uses applications of funds for the Project, both cumulatively and for the period covered by said report, showing separately and projected sources and applications of funds provided under for the GrantProject for the six-month period following the period covered by said report, and explains variances between (B) shows separately expenditures financed out of the projected proceeds of the Credit during the period covered by said report and actual sources and uses expenditures proposed to be financed out of such fundsthe proceeds of the Credit 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 and actual implementation targets; and (iii) sets forth the status of procurement under the ProjectProject and expenditures under contracts financed out of the proceeds of the Credit, as at the end of the period covered by said report.

Financial Covenants. (a) The Recipient Borrower shall maintain a financial management system, including records and accounts, and prepare financial statements in a format acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project. (b) The Recipient Borrower shall: (i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the respective Special Account for each fiscal year audited, in accordance with auditing standards acceptable to the Association, consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association 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 and (B) an opinion on such statements, records and accounts and report of such audit, by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such records and accounts, and the audit thereof, and concerning said auditors, as the Association may from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the credit and Grant Account Accounts were made on the basis of statements of expenditure, the Recipient Borrower 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 Association has received the audit report for the fiscal year in which the last withdrawal from the Credit and Grant Account Accounts was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association’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 Borrower’s progress reporting obligations set out in Schedule 4 to this Agreement, the Recipient Borrower shall prepare and furnish to the Association a Financial Monitoring ReportReport for such period, in form and substance satisfactory to the Association, which: (i) sets forth actual and projected 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, Financing and explains variances between the projected actual and actual sources 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 previously forecast actual and actual implementation targetsplanned 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.