Common use of Operational Principles Clause in Contracts

Operational Principles. The operations of the Bank shall be conducted in accordance with the following principles: (i) the Bank shall apply sound banking principles to all its operations, ensure adequate remuneration and have in due regard the risks involved; (ii) the Bank shall not finance any undertaking in the territory of a member if that member objects to such financing; (iii) in preparing any country program or strategy, financing any project or by making designation or reference to a particular territory, or geographic area in its documents, the Bank will not deem to have intended to make any judgment as to the legal or other status of any territory or area; (iv) the Bank shall not allow a disproportionate amount of its resources to be used for the benefit of any member. The Bank shall seek to maintain reasonable diversification in all of its investments; (v) the Bank shall place no restriction upon the procurement of goods and services from any country member from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Banks, and shall, in all appropriate cases, make its loans and other operations conditional on invitations to all member countries to tender being arranged; (vi) the proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank shall be used only for procurement in member countries of goods and services produced in member countries, except in any case in which the Board of Directors determines to permit procurement in a non-member country of goods and services produced in a non-member country in special circumstances making such procurement appropriate; (vii) the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed or participated in by the Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due attention to considerations of economy and efficiency.

Operational Principles. The operations of the Bank shall be conducted in accordance with the following principles: (i) i. the Bank shall apply sound banking principles to all its operations, ensure adequate remuneration and have in due regard the risks involved; (ii) . the Bank shall not finance any undertaking in the territory of a member if that member objects to such financing; (iii) . in preparing any country program or strategy, financing any project or by making designation or reference to a particular territory, or geographic area in its documents, the Bank will not deem to have intended to make any judgment as to the legal or other status of any territory or area; (iv) . the Bank shall not allow a disproportionate amount of its resources to be used for the benefit of any member. The Bank shall seek to maintain reasonable diversification in all of its investments; (v) v. the Bank shall place no restriction upon the procurement of goods and services from any country member from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Banks, and shall, in all appropriate cases, make its loans and other operations conditional on invitations to all member countries to tender being arranged; (vi) . the proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank shall be used only for procurement in member countries of goods and services produced in member countries, except in any case in which the Board of Directors determines to permit procurement in a non-member country of goods and services produced in a non-member country in special circumstances making such procurement appropriate; (vii) . the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed or participated in by the Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due attention to considerations of economy and efficiency.

Operational Principles. The Article 21 provides that the operations of the Bank shall be conducted in accordance with the following principles: (i) i. the Bank shall apply sound banking principles to all its operations, ensure adequate remuneration and have in due regard the risks involved; (ii) . the Bank shall not finance any undertaking in the territory of a member if that member objects to such financing; (iii) . in preparing any country program or strategy, financing any project or by making designation or reference to a particular territory, or geographic area in its documents, the Bank will not deem to have intended to make any judgment as to the legal or other status of any territory or area; (iv) . the Bank shall not allow a disproportionate amount of its resources to be used for the benefit of any member. The Bank shall seek to maintain reasonable diversification in all of its investments; (v) v. the Bank shall place no restriction upon the procurement of goods and services from any country member from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Banks, and shall, in all appropriate cases, make its loans and other operations conditional on invitations to all member countries to tender being arranged; (vi) . the proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank shall be used only for procurement in member countries of goods and services produced in member countries, except in any case in which the Board of Directors determines to permit procurement in a non-member country of goods and services produced in a non-member country in special circumstances making such procurement appropriate; (vii) . the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed or participated in by the Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due attention to considerations of economy and efficiency.

Operational Principles. 1. The operations of the Bank shall be conducted in accordance with the following principles: (i) The operations of the Bank shall apply sound banking principles to all shall, except in special circumstances, provide for the financing of specific projects, or groups of projects, particularly those forming part of a national or regional development programme urgently required for the economic or social development of its operationsregional members. They may, ensure adequate remuneration and have however, include global loans to, or guarantees of loans made to, African national development banks or other suitable institutions, in due regard order that the risks involvedlatter may finance projects of a specified type serving the purpose of the Bank within the respective fields of activities of such banks or institutions; (ii) In selecting suitable projects, the Bank shall always be guided by the provisions of paragraph 1(a) of article 2 of this Agreement and by the potential contribution of the project concerned to the purpose of the Bank rather than by the type of the project. It shall, however, pay special attention to the selection of suitable multinational projects; b) The Bank shall not finance any undertaking provide for the financing of a project in the territory of a member if that member objects to such financingthereto; (iiic) in preparing any country program or strategy, financing any project or by making designation or reference to a particular territory, or geographic area in its documents, the Bank will not deem to have intended to make any judgment as to the legal or other status of any territory or area; (iv) the The Bank shall not allow a disproportionate amount of its resources to be used provide for the benefit financing of any member. The a project to the extent that in its opinion the recipient may obtain the finance or facilities elsewhere on terms that the Bank shall seek to maintain considers are reasonable diversification in all of its investmentsfor the recipient; (vd) the Bank shall place no restriction upon the procurement of goods and services from any country member from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Banks, and shall, in all appropriate cases, make its loans and other operations conditional on invitations to all member countries to tender being arranged; (vi) the The proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank shall be used only for procurement in member countries of goods and services produced in member countries, except in any case in which the Board of Directors determines to permit procurement in a non-member country or of goods and services produced in a non-member country in special circumstances making such procurement appropriate, as in the case of a non-member country in which a significant amount of financing has been provided to the Bank; (viie) In making or guaranteeing a loan, the Bank shall take pay due regard to the necessary measures prospects that the borrower and the guarantor, if any, will be in a position to meet their obligations under the loan; f) In making or guaranteeing a loan, the Bank shall be satisfied that the rate of interest and other charges are reasonable and such rate, charges and the schedule for the repayment of principal are appropriate for the project concerned; g) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditure in connexion with the project as it is actually incurred; h) The Bank shall make arrangements to ensure that the proceeds of any loan made, made or guaranteed or participated in by the Bank, or any equity investment, it are used only for the purposes for which the loan or the equity investment was granted and granted, with due attention to considerations of economy and efficiency; i) The Bank shall seek to maintain a reasonable diversification in its investments in equity capital; j) The Bank shall apply sound banking principles to its operations and, in particular, to its investments in equity capital. It shall not assume responsibility for managing any institution or undertaking in which it has an investment; and k) In guaranteeing a loan made by other investors, the Bank shall receive suitable compensation for its risk. 2. The Bank shall adopt such rules and regulations as are required for the consideration of projects submitted to it.