Common use of Post Review Clause in Contracts

Post Review. With respect to each contract not governed by paragraph 2 of this part, the procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply. 1. The Recipient, through the Palestinian Authority, shall cause PWA to be responsible for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out in Schedule 6 to this Agreement, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable to the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the Administrator, on or about January 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph (a) of this paragraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (d) review with the Administrator, by March 31, 2006, or such later date as the Administrator shall request, the report referred to in subparagraph (c) of this paragraph, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matter.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. The Recipient, through the Palestinian Authority, shall cause PWA to be responsible for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, Board shall: (a) enter into arrangements with each SO and WSUGs, as the case may be, under such terms and conditions, satisfactory to the Association, which shall include, inter alia, that: (i) each SO shall maintain policies separate accounts in respect of each Scheme being carried out by such SO under the Project in accordance with the accounting manual prepared by the Board as part of its Implementation Manuals; (ii) each SO shall furnish to the Board prior to each payment an updated Scheme accounts; and procedures adequate (iii) the Board shall not make any payment to enable it such SO until the accounts referred to monitor in subparagraph (ii) herein have been found satisfactory by the Board; (i) ensure that eligibility criteria for the selection of SOs and evaluate on an ongoing basisSchemes are satisfactory to the Association; (ii) select SOs and Schemes in accordance with such eligibility criteria; and (iii) review, at the end of the Implementation Phase of each Batch, the adequacy of such eligibility criteria and shall, if necessary, revise such criteria in a manner satisfactory to the Association to accomplish the purposes of the Project; and (c) The Board shall implement the IPDP, in accordance with the indicators objectives, policies, procedures, time schedules and other provisions set out forth therein, to ensure that indigenous people in Schedule 6 to this Agreementthe Project area shall benefit fully from the activities financed under the Project. (a) In respect of each Batch, the carrying out of the Project Board shall enter into: (i) a Development Phase agreement with SOs as appropriate; and (ii) an Implementation Phase tripartite agreement with a SO and the achievement of the objectives thereof;WSUC. (b) prepareEach agreement to be entered into pursuant to paragraph (a) above shall be entered in the case of the Development Phase agreement prior to commencement of the Development Phase, under and in case of the Implementation Phase agreement prior to commencement of the Implementation Phase. (c) Each agreement to be entered into pursuant to paragraph (a) above shall be made on terms of reference acceptable and conditions satisfactory to the AdministratorAssociation, including: (i) a clear definition of the role and furnish to the Administrator, commencing December 31, 2003, until completion responsibilities of each party thereto; (ii) in respect of any Scheme for renovation or construction under Part B of the Project, quarterly progress reports communities for whom such Schemes are carried out will be required to contribute, up-front and summary monthly progress statementsthrough the relevant WSUG, acceptable to all skilled and unskilled labor, whether in cash or in kind; and (iii) an under taking by benefiting communities for the Administratorprovision, covering the implementation in cash or in kind of the Project during the preceding period, each such report Operations and statement to include, inter alia, a detailed break-down Maintenance of expenditures incurred their respective Schemes. 3. The Board shall: (i) ensure that any private land needed for water supply and other construction under the Project during has been provided by the preceding period; (c) prepare, under terms owner of reference satisfactory to the Administratorsuch land in a voluntary manner, and furnish to in accordance with a memorandum of understanding, agreed with the AdministratorAssociation, on or about January 31, 2005, a mid-term report integrating between the results of the monitoring and evaluation activities performed pursuant to subparagraph (a) of this paragraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project WSUGs and the achievement owner of the objectives thereof during the period following such dateland; and and (dii) review with the Administrator, by March 31, 2006, or not commence such later date as the Administrator shall request, the report referred to works in subparagraph (c) locations where such land is needed until such a memorandum of this paragraph, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matterunderstanding has been concluded.

Post Review. With respect to each contract not governed by paragraph 2 1 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. A. Overall Project Implementation 1. The Recipient, through the Palestinian Authority, Borrower shall cause PWA the PA to be responsible vest the responsibility for implementing Parts A and C (i) of the implementation Project in MOI and Part C (ii), as well as the environmental aspects of the Project, in PENA. PWA MOI shall be assisted in the carrying out of its such responsibilities by PMU. PMU PCU which shall be responsible responsible, inter alia, for the procurement, disbursement, monitoring coordination of the implementation of the Project and evaluation processes under the Project, as well as supervision of the preparation of implementation progress reportsexecution thereof. 2. The Recipient shall, not later than In order to achieve the conclusion objectives of the first contract procured pursuant Project, the Borrower shall cause the PA to: (a) maintain PCU, within MOI, with professional staff in adequate numbers, whose qualifications and experience shall be acceptable to the Administrator, to coordinate, supervise and report to the Administrator on the execution of Parts A and C of the Project and the procurement of goods and services thereunder; (b) employ consultants, in accordance with the provisions of Section I, Part B II of Schedule 3 to this Agreement, hire a construction managerwith qualifications and experience, whose responsibilities shall include under terms of reference and in accordance with time schedules acceptable to the supervision Administrator, to assist in the carrying out of Parts A and quality assurance C of works implemented under the Project; and (c) ensure that training activities under Part C of the Project shall be carried out in accordance with programs, including time-schedules for the implementation thereof, and criteria for the selection of candidates thereunder, agreed between the PA and the Administrator. 3. The RecipientBorrower shall cause the PA to establish, not later than September 30, 1997, and thereafter maintain, arrangements, satisfactory to the Administrator, pursuant to which PIECO shall implement Part B of the Project, such arrangements to include, inter alia, the obligation of PIECO to prepare and furnish to the PCU, for inclusion in the progress reports referred to in paragraph C of this Schedule, all information required to assess the progress in implementing Part B of the Project and the achievement of the objectives thereof. 4. The Borrower, through the Palestinian AuthorityPA, shall: shall cause XXXX to: (a) maintain policies carry out Part C (ii) of the Project with due diligence and procedures efficiency; (b) ensure implementation of all environmental aspects of the Project in accordance with the framework, criteria, requirements and other details set out in the Environmental Manual; and (c) prepare and furnish to the PCU, for inclusion in the progress reports referred to in paragraph C of this Schedule, all information required to assess the progress in implementing Part C (ii) and all environmental aspects of the Project, and the achievement of the objectives thereof. 5. The Borrower shall cause the PA, not later than December 31, 1998, to take all action necessary on its part to (a) transfer to PIFZA all of the responsibilities of MOI referred to under paragraph A.1 of this Schedule; and, thereafter (b) ensure that PIFZA shall carry out its operations and conduct its affairs in accordance with sound administrative, financial, engineering and environmental practices under the supervision of qualified and experienced management assisted by competent staff in adequate numbers. B. Cost Recovery under Part A of the Project The Borrower shall cause the PA to enable it establish and collect, commencing not later than December 31, 2002, charges sufficient to recover from the beneficiaries of the services referred to under Part A of the Project the total amount of the recurrent costs of operating and maintaining the structures, systems and networks required to provide said services, all in accordance with guidelines agreed upon between the PA and the Administrator. C. Progress Reports and Mid-Term Review The Borrower shall cause PA to: (a) monitor and evaluate evaluate, on an ongoing on-going basis, in accordance with indicators agreed with the indicators set out in Schedule 6 to this AgreementAdministrator, the carrying out of the Project and the achievement of the objectives thereof; ; (b) prepare, under terms of reference acceptable to the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the Administrator: (i) not later than March 31 and September 30 of each year until completion of the Project, on or about January commencing March 31, 20051998, a mid-term report report, integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph (a) above, on the progress achieved in the carrying out of this paragraphthe Project during the period of six (6) months preceding the date of such report, and (ii) not later than December 31, 2000, a mid-term report, integrating the data and other information contained in the reports prepared pursuant to subparagraph (b) (i) above, on the progress achieved in the carrying out of the Project during the period preceding the date of said mid-term report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and and (dc) review with the Administrator, by March 31, 2006, or Administrator each such later date as the Administrator shall request, the report referred to in subparagraph (c) of this paragraphreport, and, thereafter, take all measures required to ensure the efficient completion implementation of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient said report and the Administrator, and their ’s views on the matter. 1. For the purposes of this Schedule:

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth Association may, at its own discretion, carry out post review of any contract awarded in paragraph 4 accordance with this Section. The Borrower shall carry out procurement review of Appendix 1 to such contracts by independent consultant in accordance with the Guidelines shall applyprovision of Borrower’s Procurement Regulations. 1. The RecipientBorrower shall carry out Parts B, D, E and F of the Project through MOF, and Part C of the Project through the Palestinian Authority, shall cause PWA to be responsible for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reportsPMO. 2. The Recipient shall, not later than Borrower shall establish a Project Coordination Unit (PCU) in the conclusion Finance Division of the first contract procured pursuant MOF to Section Iguide, Part B of Schedule 3 to this Agreementsupervise, hire a construction manager, whose responsibilities shall include the supervision coordinate and quality assurance of works implemented monitor all major activities under the Project. The overall Project shall be executed and managed by the Finance Division of the MOF, with the Additional Secretary of the Finance Division as the Project Coordinator. The specific technical assistance support for the PC, BOI, and BEPZA will be executed by those agencies, with the involvement of the MOF, the Borrower’s Ministry of Jute, the Borrower’s Ministry of Textiles, the Borrower’s Ministry of Industry, the Privatization Commission, BOI and BEPZA. 3. The Recipient, through the Palestinian Authority, Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators Indicators set out forth in Schedule 6 to this Agreement, the carrying out of Parts B, C, D, E and F of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable satisfactory to the AdministratorAssociation, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the AdministratorAssociation, on or about January December 31, 20052006, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of Parts B, C, D, E and F of the Project and the achievement of the objectives thereof during the period following such date; and (dc) review with the AdministratorAssociation, by March 31February 28, 20062007, or such later date as the Administrator Association shall request, the report referred to in subparagraph paragraph (cb) of this paragraphSection, and, thereafter, take all measures required to ensure the efficient completion of Parts B, C, D, E and F of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient said report and the Administrator, and their Association’s views on the matter.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. The RecipientBorrower shall: (a) implement the Project, through in accordance with the Palestinian Authorityprocedures set out in the PIM, and, except as the Association shall cause PWA to be responsible for otherwise agree, the Borrower shall not amend, or waive any provision thereof which, in the opinion of the Association, may materially and adversely affect the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, shall:; (ab) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out forth in Schedule 6 to this the Development Credit Agreement, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable to the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the AdministratorAssociation, and furnish to the Administrator, on or about January 31, 2005Association not later than June 30 of each year during the execution of the Project, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (ac) of this paragraphSection, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and; (d) review with the AdministratorAssociation, by March 31, 2006September 30 of each year throughout the execution of the Project, or such later date as the Administrator Association shall request, the report referred to in subparagraph paragraph (cb) of this paragraphSection, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient said report and the Administrator, and their Association’s views on the matter; (i) maintain ST-CPASE and the Steering Committee with functions and responsibilities and with qualified and experienced staff in adequate numbers, all satisfactory to the Association; (ii) maintain at all times as Project Coordinator a national of the Borrower with qualifications and experience satisfactory to the Association; and (iii) maintain at all times as head of ST-CPASE a national of the Borrower with qualifications and experience satisfactory to the Association; (f) (i) carry out the studies referred to under Parts A.4 (b) and C.2 of the Project; (ii) not later than February 28, 1999, submit the results and recommendations of the said studies to the Association for its review and comments; and (iii) promptly thereafter, implement the recommendations of the said studies, taking into account any comments thereon made by the Association. (a) The Borrower shall carry out, jointly with the Association, not later than one year after the Effective Date, a Mid-Term Review of the progress made in carrying out the Project. The said Mid-Term Review shall cover, among other things: (i) progress in meeting the Project’s objectives; and (ii) the performance by the Borrower of its respective obligations under the Project. (b) Not later than one month prior to the Mid-Term Review, the Borrower shall furnish to the Association, for review and comments, a report covering items specified in paragraph (a) above, including an evaluation of the progress achieved in the execution of the Project and recommendations resulting from the studies conducted under the Project. (c) Promptly after completing such review, the Borrower shall carry out the recommendations emanating from the said review, as agreed upon between the Borrower and the Association. 3. The Borrower shall: (a) establish, in the aggregate, 5000 additional primary school teachers’ positions, over and above the number of positions existing on its payroll as of June 30, 1998; (b) recruit qualified teachers to fill the said positions as follows: (i) a first increment of 2,000 teachers shall be recruited not later than September 30, 1998; (ii) a second increment of 1,500 teachers shall be recruited not later than September 30, 1999; and (iii) a third increment of 1,500 teachers shall be recruited by not later than September 30, 2000.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply.” The provisions of this Schedule shall apply for the purposes of Section 3.01 (b) of this Agreement. 1. The RecipientProject shall be carried out by the Borrower with the assistance of the NBM. For this purpose, through the Palestinian Authority, Borrower shall maintain or cause PWA to be maintained within NBM: (a) a separate unit (the Apex Unit), with staff and other resources and terms of reference satisfactory to the Bank, responsible for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project; and (b) arrangements, as well as satisfactory to the preparation Bank, with NBM, pursuant to which NBM shall continue to assist the Borrower in determining the compliance by PFIs with the conditions set forth in Part B of implementation progress reportsthe Annex to this Schedule. 2. The Recipient For the purpose of carrying out the Project, the Borrower shall, not later than through the conclusion Apex Unit: (a) relend to the PFIs the equivalent of the first contract procured pursuant proceeds of the Loan under Subsidiary Financing Agreements entered into or to Section Ibe entered into between the Borrower acting through the NBM as its Fiscal Agent and each such PFI, Part B of Schedule 3 under terms and conditions which shall have been approved by the Bank, and which shall include, without limitation, those set forth in the Annex to this AgreementSchedule; (b) monitor the overall execution of the Project and the carrying out by the PFIs of obligations under their respective Subsidiary Financing Agreements in accordance with policies and procedures satisfactory to the Bank; and (c) take or cause to be taken all action necessary or appropriate on its part to enable the PFIs to perform in accordance with the provisions of their respective Subsidiary Financing Agreements all the obligations of the PFIs therein set forth, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Projectnot take or permit to be taken any action which would prevent or interfere with such performance. 3. The Recipient, through the Palestinian Authority, Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set out in Schedule 6 to this AgreementBank, the carrying out of the Project and the achievement of the objectives thereof;. (b) prepare, under terms of reference acceptable to the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, prepare under terms of reference satisfactory to the AdministratorBank, and furnish to the AdministratorBank, on or about January March 31, 20051999, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (d) review with the Administrator, by March 31, 2006, or such later date as the Administrator shall request, the report referred to in subparagraph (c) of this paragraph, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matter.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. The Recipient, through Without limitation to the Palestinian Authority, shall cause PWA to be responsible for the implementation provisions of the Project. PWA shall be assisted in the carrying out Section 5.02 of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, Borrower shall: (a) maintain policies carry out the environmental training program for DGI and procedures adequate DGE described in the MMEMAP in a manner satisfactory to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out in Schedule 6 to this Agreement, the carrying out of the Project and the achievement of the objectives thereofAssociation; (b) prepareprepare specific requirements for environmental impact assessment and mitigation measures, under terms of reference acceptable satisfactory to the AdministratorAssociation, with respect to all civil works to be carried out under the Project, and furnish to include these requirements in the Administratorbidding and contractual documentation regarding the implementation of such civil works; and (c) carry out the public education, commencing December 31consultation and awareness program described in the MMEMAP. 2. The Borrower shall ensure that, 2003at all times during the execution of the Project: (a) the qualifications, until completion experience and performance of the staff within DGI, DRIs, MEEU and FER, in charge directly or indirectly of the implementation of any parts of the Project, quarterly progress reports and summary monthly progress statements, acceptable shall be satisfactory to the AdministratorAssociation; (b) FER, covering CC and the implementation of Steering Committee shall be maintained with functions, composition and staff with qualifications, experience and performance satisfactory to the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding periodAssociation; (c) preparethe relevant Ministries, under terms Agencies and authorities (in particular, MPE and DGE) shall collaborate with DGI and DRIs in compliance with the provisions of reference the EIA and the Project Implementation Plan, in particular, with respect to the appointment of individuals whose qualifications, experience, position and performance are satisfactory to the AdministratorAssociation, and furnish to the Administrator, on or about January 31, 2005, a mid-term report integrating the results who shall assist DGI and DRIs in ensuring proper implementation of the monitoring and evaluation activities performed pursuant to subparagraph (a) of this paragraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such dateProject; and (d) review with the Administratorproceeds of FER shall be used solely for the purposes of defraying the cost of expenditures incurred for road maintenance and rehabilitation operations in the territory of the Borrower. 3. Except as the Association shall otherwise agree, by March 31the Borrower shall: (i) apply criteria, 2006policies, procedures and arrangements set out in the Project Implementation Plan and the Financial Management Procedures Manual; and (ii) not amend or waive, or such later date as the Administrator shall requestpermit to be amended or waived, the report referred to EIA, the Project Implementation Plan and the Financial Management Procedures Manual or any provision thereof, in subparagraph (c) of this paragrapha manner which, and, thereafter, take all measures required to ensure in the efficient completion opinion of the Project Association, may materially and adversely affect the achievement implementation of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matterProject.

Post Review. With respect to each contract not governed by paragraph 2 1 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. The Recipient, through the Palestinian Authority, shall cause PWA to be responsible for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well Except as the preparation Borrower shall otherwise agree, the Borrower shall, by March 31, 1999, employ the private operator to operate the water and sewerage systems on the basis of implementation progress reportsa management contract with terms and condition satisfactory to the Bank. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out in Schedule 6 to this Agreementagreed upon between the Borrower and the Bank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable satisfactory to the AdministratorBank, and furnish to the AdministratorBank, commencing December 31, 2003, until completion by October 31 of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter aliayear, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the Administrator, on or about January 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and; (dc) review with the AdministratorBank, by March 31, 2006, or such later date as the Administrator shall requestDecember 31 of each year, the report referred to in subparagraph (cb) of this paragraph, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient said report and the Administrator, and their Bank views on the matter. 3. The Borrower shall, until completion of the Project and thereafter as environmentally required: (a) monitor, on a regular basis and in accordance with standards and procedures satisfactory to the Bank, the quality of the water near the sea outfall at Alacati, including the sampling of water for specific parameters, to assess the physical condition of said sea outfall; and (b) if corrective action is required, promptly take all measures necessary in a timely manner to restore the quality of the water to standards acceptable to the Bank.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. The RecipientFoundation shall implement the Project in accordance with the Implementation Plan, through the Palestinian AuthorityCommunity Operational Manual, and the Environmental Management Framework agreed with the Association, and except as the Association shall cause PWA to be responsible for otherwise agree, the Foundation shall not amend or waive any provision thereof if, in the opinion of the Association, such amendment or waiver may materially and adversely affect the implementation of the Project. PWA The Foundation shall ensure that throughout project implementation period its chief executive officer shall be assisted by suitably qualified and experienced procurement, financial, and operational specialists and other staff in adequate numbers, whose qualifications and experience are satisfactory and acceptable to the carrying out of its responsibilities Association, to perform project implementation and monitoring functions. The Foundation shall appoint by PMUno later than September 30, 2004, and thereafter maintain during project implementation period, internal auditors, whose qualifications and experience are satisfactory and acceptable to the Association. PMU The Foundation shall be responsible establish by no later than September 30, 2005, and thereafter maintain during the Project implementation period, a satisfactory computerized financial management system for the procurement, disbursement, monitoring and evaluation processes under Project that is acceptable to the Project, as well as the preparation of implementation progress reports. 2Association. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities Foundation shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, shallensure that: (a) maintain policies Sub-Projects are selected and procedures adequate to enable it to monitor and evaluate on an ongoing basis, appraised in accordance with the indicators set out criteria and procedure specified in Schedule 6 to this Agreement, the carrying out of the Project Implementation Plan and the achievement of the objectives thereofCommunity Operational Manual; (b) prepareSub-Grants are released to Village Organizations and Pradeshiya Sabhas implementing the project in a timely manner in accordance with Sub-Grant Agreements, under terms of reference which are in form and substance acceptable to the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period;Association; and (c) preparethe Sub-Grant Agreements shall specify, under terms of reference satisfactory among other things, that: (i) Sub-Grants shall be used exclusively to the Administratorfinance goods, works, and furnish to the Administratorservices required for preparation, on or about January 31approval, 2005, a mid-term report integrating the results and implementation of the monitoring village development plans and evaluation activities performed pursuant to subparagraph (a) of this paragraph, on the progress achieved in accordance with terms and conditions set forth in the carrying out Community Operational Manual; (ii) the amount of the Project during the period preceding the date of said report and setting out the measures recommended each Sub-Grant shall be calculated according to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (d) review a predetermined cost-sharing formula as agreed with the AdministratorAssociation and specified in the Community Operational Manual; and (iii) goods, by March 31works, 2006, or such later date as the Administrator and services shall request, the report be procured in accordance with procedures referred to in subparagraph (c) of this paragraph, and, thereafter, take all measures required to ensure Agreement and set forth in the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matterCommunity Operational Manual.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. A. Implementation Responsibilities (1. ) The RecipientPIT, through acting under the Palestinian Authoritydirection of the Project Manager, shall cause PWA to be responsible bear all technical responsibilities for implementing the implementation of the Project. PWA shall be assisted Project as described in the carrying out PIP, including: (a) preparation of its responsibilities by PMU. PMU shall be responsible an annual plan for Project implementation; (b) preparation, with the procurementassistance of consultants, disbursement, monitoring Republika Srpska and evaluation processes the Federation of bidding and contract documents under the Project; (c) the maintenance of the Project financial records and accounts and arranging for the audit thereof; (d) preparation of the quarterly reports on Project progress, referred to in Part B of this Schedule; and (e) supervision of progress of Project implementation. (2) Republika Srpska, acting through the RSCA, shall ensure that the PIT shall be maintained until the completion of the Project under terms of reference and with staff and other measures satisfactory to the Association. (3) Republika Srpska shall ensure: (a) that each annual plan for Project implementation referred to paragraph (1) above shall be prepared after a review between Republika Srpska and the Association of progress in meeting the targets indicated in the PIP, including the targets set forth in the Annex to this Schedule; and (b) that the inclusion of investments and other Project activities in said plan, as well as the preparation of implementation progress reportsprocurement arrangements thereof, shall be made in agreement between Republika Srpska and the Association, taking into account the requirements set forth in the Environmental Management Plan. 2. The Recipient (4) Republika Srpska shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, shall: : (a) maintain policies its participation in the RSC; and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out in Schedule 6 to this Agreement, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms inform the Association of reference acceptable to actions taken at the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering RSC level which may affect the implementation of the Project during Regional Program or of measures included in the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period;PIP. (c5) prepare, under terms of reference satisfactory to the Administrator, and furnish to the Administrator, on or about January 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph (a) of this paragraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to Republika Srpska shall ensure the efficient carrying out of the Project establishment and the achievement of the objectives thereof during the period following such date; and (d) review with the Administratorfunctioning, by March 31, 20062001, or such later date as of mechanisms at all border agencies to provide the Administrator Facilitation Coordinator with current information to be made available to customs users, on waiting times and opening hours at border crossing and customs regulations and procedures of border agencies. (6) Republika Srpska shall requestensure, in coordination with the report referred to in subparagraph (c) of this paragraphPIT, and, thereafter, take all measures required to ensure that the efficient completion contracts under Parts B.1 and B.3 of the Project and are implemented in compliance with the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matterbidding documents.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply.. Part A: Project Management 1. The RecipientBorrower shall assign the general responsibility for Project implementation to SDFRSDF under an Subsidiary Implementation Agreement to be entered into between the Borrower, and GSG and SDFRSDF under terms and conditions which shall have been agreed upon with the Bank and which shall include, inter alia, provisions whereby: (a) the Borrower, acting through the Palestinian AuthorityGSG, shall cause PWA make the proceeds of the Loan available to SDFRSDF in the form of a grant budgetary allocation; (b) SDFRSDF shall be required to implement the Project in accordance with the SDFRSDF Law, the Operational Manual and the provisions of this Loan Agreement; and (c) SDFRSDF shall be required as part of its responsibility for Project implementation: (i) to prepare and furnish to the Bank, by March 31 in each year, for its review and concurrence, an annual work program for the Project; (ii) to maintain the Project financial records and accounts and to arrange for the audit thereof; (iii) to prepare applications for withdrawal of the proceeds of the Loan; (iv) to assist the RecipientBenefsiciaries in the preparation of bidding and contract documents for activities to be responsible for financed under the Grant Agreement; (v) to supervise the implementation of the Project. PWA shall be assisted , including supervising the progress of each Subproject; and (vi) to prepare and furnish to the Borrower and the Bank, starting in June 1999, semi-annual reports on the progress of Project implementation, based on the indicators set forth in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reportsProgram. 2. The Recipient shallBorrower shall ensure the adoption by the Steering Committee, not later than on the conclusion basis of the first contract procured pursuant SDFRSDF’s Law, of an Operational Manual satisfactory to Section I, Part B the Bank to govern SDFRSDF’s activities under the Project. The Operational Manual shall cover such matters as: (a) eligibility criteria for RecipientsBeneficiaries; (b) the principles and procedures to be followed for the approval of Schedule 3 Subprojects; (c) the terms and conditions to this Agreement, hire a construction manager, whose responsibilities shall include be included in the supervision Grant Agreements; (d) the indicators to be utilized by SDFRSDF in monitoring the progress of the Project; and quality assurance (e) the financial management system to be adopted by SDFRSDF to control the use of works implemented under funds made available to it for purposes of the Project. 3. The Recipient, through the Palestinian Authority, shall: (a) maintain policies and procedures adequate Borrower shall cause SDFRSDF to enable it to monitor and evaluate on an ongoing basisensure participation by RecipientsBeneficiaries, in accordance with the indicators principles set out forth in Schedule 6 to this Agreementthe Operational Manual, in the carrying out preparation of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable to the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the Administrator, on or about January 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph (a) of this paragraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (d) review with the Administrator, by March 31, 2006, or such later date as the Administrator shall request, the report referred to in subparagraph (c) of this paragraph, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matterSubprojects.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. The RecipientBorrower, through the Palestinian Authority, shall cause PWA to be responsible for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian AuthorityMoE, shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators agreed with the indicators Association set out forth in Schedule 6 to this Agreementthe Supplemental Letter, the carrying out of the Project and of measures included in the Program and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable satisfactory to the AdministratorAssociation, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the AdministratorAssociation, on or about January 31October 30, 20052002, or such later date as the Association shall request, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of the Project and the Program during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the Program and the achievement of the objectives thereof during the period following such date; and; (dc) review with the AdministratorAssociation, by March 31December 1, 2006, 2002 or such later date as the Administrator Association shall request, the report referred to in subparagraph paragraph (cb) of this paragraphSection, and, thereafter, take all measures required to ensure the efficient completion of the Project and the Program and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient said report and the Administrator, and their Association’s views on the matter; (d) prepare, under terms of reference satisfactory to the Association, and furnish to the Association, on or about October 30, 2003, or such later date as the Association shall request, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project and of measures included in the Program during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the Program and the achievement of the objectives thereof during the period following such date; (e) review with the Association, by December 1, 2003 or such later date as the Association shall request, the report referred to in paragraph (d) of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project, Program and the achievement of the objectives thereof, based on the conclusions and recommendations of the said report and the Association’s views on the matter; and (f) as part of the mid-term review mentioned in paragraph (d) above, the Association may require the Borrower to prepare an action plan satisfactory to the Association, with the adjustments necessary for the efficient carrying out of the Project, the Program and the achievement of the objectives thereof during the period following such date. In such event, the Borrower shall not later than thirty (30) days after the conclusion of each such review, or such later date as the Association shall request, furnish to the Association said action plan, and shall thereafter carry out or cause to be carried out, such action plan in accordance with its terms. (a) Except as the Borrower and the Association shall otherwise agree, the Borrower shall provide, through MoE, evidence satisfactory to the Association, by no later than thirty (30) days after the annual budget has been approved by the Borrower’s Parliament of each year during Project implementation, starting as of 2002, that sufficient resources have been allocated in the Borrower’s annual budget to cover all the counterpart funding requirements under this Project for the year in question, including counterpart funding requirements for NAEC and PCU; (b) without limitation upon the provisions of Section 3.01 of this Agreement, the Borrower shall: (a) maintain throughout the course of Project implementation the Project Account referred to in Section 6.01 (b) of this Agreement, and shall replenish said account promptly before each quarter with sufficient funds to enable the Borrower to meet its obligations under Section 3.01 of this Agreement for such period; and (b) use the amount in said Project Account for financing the Borrower’s contribution to Project expenditures. (a) For the purposes of carrying out Part A.2 of the Project, the Borrower, through MoE, shall enter into an agreement with NAEC (the NAEC Agreement), under terms and conditions satisfactory to the Association, providing, inter alia, (i) the transfer of a portion of the Credit proceeds and non-Credit proceeds counterpart funds to NAEC on a grant basis and the provision of facilities, services and other resources to NAEC, required to enable NAEC carry out Part A.2 of the Project; and (ii) the obligation of NAEC to assist MoE in the carrying out of Part A.2 of the Project in accordance with the terms and conditions set forth in this Agreement and in the PIP, including the obligation to keep separate records and accounts of operations, services, and expenditures related to Part A.2 of the Project and to provide to the Borrower the information necessary to enable the Borrower to comply with its obligations under Sections 4.01 and 4.02 of this Agreement. (b) The Borrower, through MoE, shall exercise its rights and carry out its obligations under the NAEC Agreement in such a manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit, and, except as the Association shall otherwise agree, the Borrower shall not assign, amend, abrogate, terminate, waive or fail to enforce the NAEC Agreement or any provision thereof.

Post Review. With respect to each contract not governed by paragraph 2 1 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. (a) The RecipientRecipient shall appoint the members of the project implementation team (PIT) located in the Planning Unit, through the Palestinian Authorityand comprising a project coordinator, shall cause PWA an engineer, a planner and an accountant, to be responsible for the implementation day-to-day management of the Project. PWA shall be assisted in the carrying out activities of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient(b) Subject to the oversight functions and policy guidance of MMET, through the Palestinian AuthorityPIT shall be responsible for: (i) coordination of procurement and disbursement activities, shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out in Schedule 6 to audits under Article IV of this Agreement, and preparation of annual and quarterly progress reports, and work plans and training programs, under the carrying out Project; and (ii) monitoring of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable to the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation evaluation of the Project during impact of the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period;activities thereof. (c) prepareThe Recipient shall ensure that the higher level positions of PIT, under terms of reference satisfactory which are referred to the Administrator, and furnish to the Administrator, on or about January 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to in subparagraph (a) of this paragraph, on shall be kept filled at all times by appropriate officials, having qualifications, experience and terms of reference which shall have been communicated to, and deemed acceptable by, the progress achieved in Bank. 2. The Recipient shall: (a) prepare and transmit to the carrying out Bank (i) a Project Implementation Plan, acceptable to the Bank, giving details of all procurement and disbursement arrangements, performance indicators and other administrative, financial and organizational arrangements, as shall have been agreed with the Bank for purposes of the Project during Project, and (ii) a Procedures Manual, acceptable to the period preceding Bank, giving details of procedural arrangements for the date identification, preparation, approval and implementation of said report Subprojects, and setting out submission of requests for financing, including criteria for the measures recommended to ensure the efficient carrying out determination of the Project eligible Beneficiaries and the achievement approval of the objectives thereof during the period following such dateSubgrants, monitoring and evaluation processes, applicable procurement, disbursement and other implementation guidelines, and model forms of Beneficiary Contracts; and (db) review carry out the Project in accordance with procedures set out in the AdministratorProject Implementation Plan and Procedures Manual and, by March 31, 2006, or such later date except as the Administrator Bank shall requestotherwise agree, shall not amend or waive any provision thereof, if such amendment or waiver may, in the opinion of the Bank, materially or adversely affect the implementation of the Project. 3. For purposes of Part A.3 of the Project, the report referred to in subparagraph (c) of this paragraph, and, thereafter, Recipient shall take all measures required steps to ensure the efficient completion of the Project that DNPWLM shall, not later than June 30, 2000, have in place adequate financial management systems and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matterdecentralized commercial accounting systems.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. A. Implementation Responsibilities (1. ) The RecipientPIT, through acting under the Palestinian Authoritydirection of the Project Manager, shall cause PWA bear all technical responsibilities to be responsible for implement the implementation of the Project. PWA shall be assisted Project as described in the carrying out PIP, including: (a) preparation of its responsibilities by PMU. PMU shall be responsible an annual plan for Project implementation; (b) preparation, with the procurementassistance of consultants, disbursement, monitoring the Federation and evaluation processes Republika Srpska of bidding and contract documents under the Project; (c) the maintenance of the Project financial records and accounts and arranging for the audit thereof; (d) preparation of the quarterly reports on Project progress, referred to in Part B of this Schedule; and (e) supervision of progress of Project implementation. (2) The Federation, acting through the FCA, shall ensure that the PIT shall be maintained until the completion of the Project under terms of reference and with staff and other measures satisfactory to the Association. (3) The Federation shall ensure: (a) that each annual plan for Project implementation referred to paragraph (1) above shall be prepared after a review between the Federation and the Association of progress in meeting the targets indicated in the PIP, including the targets set forth in the Annex to this Schedule; and (b) that the inclusion of investments and other Project activities in said plan, as well as the preparation of implementation progress reportsprocurement arrangements thereof, shall be made in agreement between the Federation and the Association, taking into account the requirements set forth in the Environmental Management Plan. 2. (4) The Recipient Federation shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, shall: : (a) maintain policies its participation in the RSC; and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out in Schedule 6 to this Agreement, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms inform the Association of reference acceptable to actions taken at the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering RSC level which may affect the implementation of the Project during Regional Program or of measures included in the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period;PIP. (c5) prepare, under terms of reference satisfactory to the Administrator, and furnish to the Administrator, on or about January 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph (a) of this paragraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to The Federation shall ensure the efficient carrying out of the Project establishment and the achievement of the objectives thereof during the period following such date; and (d) review with the Administratorfunctioning, by March 31, 20062001, or such later date as of mechanisms at all border agencies to provide the Administrator Facilitation Coordinator with current information to be made available to customs users, on waiting times and opening hours at border crossing and customs regulations and procedures of border agencies. (6) The Federation shall requestensure, in coordination with the report referred to in subparagraph (c) of this paragraphPIT, and, thereafter, take all measures required to ensure that the efficient completion contracts under Parts A.1 and A.3 of the Project and are implemented in compliance with the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matterbidding documents.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. The RecipientBorrower shall implement the Project in accordance with the procedures, through guidelines, timetables and criteria set forth in the Palestinian AuthorityPIM and, except as the Association shall cause PWA to be responsible for otherwise agree, the Borrower shall not amend or waive any provision of said PIM if, in the opinion of the Association, such amendment or waiver may materially and adversely affect the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient Borrower shall, not later than for the conclusion purposes of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under carrying out the Project, establish and thereafter maintain: (a) the SC with membership and oversight functions and responsibilities satisfactory to the Association; and (b) the PU, with functions, responsibilities and qualified staff in adequate numbers, all satisfactory to the Association. 3. The Recipient, through the Palestinian Authority, Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out forth in Schedule 6 to this Agreement, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable satisfactory to the AdministratorAssociation, and furnish to the AdministratorAssociation, commencing December 31, 2003, until completion by March 31 of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter aliayear, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the Administrator, on or about January 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (dc) review with the AdministratorAssociation, by March 31, 2006May 15 of each year, or such later date as the Administrator Association shall request, the report referred to in subparagraph paragraph (cb) of this paragraphSection, and, and thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient said report and the Administrator, and their Association’s views on the matter.

Post Review. With respect to each contract not governed by paragraph 1 and 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. The provisions of this Schedule shall apply for the purposes of Section 3.01 (b) of this Agreement. 1. The Recipient, through the Palestinian Authority, DGH and ONEP shall cause PWA to be responsible have overall responsibility for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMUthis Project. PMU shall For this purpose, the Borrower shall, through DGH and ONEP: (a) prepare, no later than March 31 of each year, in consultation with the Beneficiaries a detailed program for construction and rehabilitation of rural water supply and sanitation systems, including a plan for allocation of budgetary and non-budgetary local resources, to be responsible implemented during the following Fiscal Year and finalized before the September 30 of that year taking into account the observations of the Bank; (b) prior to the start of works in the villages, take all necessary measures for the procurementsetting up of a WUA or any other management mechanism satisfactory to the bank in each village and reach an agreement satisfactory to the Bank on operation and maintenance responsibility with the WUA or said management mechanism; (c) ensure that appropriate training for operation and monitoring is provided to a representative of each WUA or other management mechanism acceptable to the Bank, disbursementprior to the handing over of the rural water supply system to be operated by the said WUA; and (d) Set up an MPT in each of the Priority Provinces, monitoring and evaluation processes under the Projectthat shall consist of three (3) members, as well as the preparation one of implementation progress reportsthem being, when possible, a woman. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, shallBorrower Shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out in Schedule 6 to this Agreement, agreed upon between the Borrower and the Bank the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms through the monitoring and evaluation units of reference acceptable to the Administrator, DGH and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepareONEP, under terms of reference satisfactory to the AdministratorBank, and furnish to the AdministratorBank, on or about January 31June 30, 20051999, a mid-mid term review report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (d) review with the Administrator, by March 31, 2006, or such later date as the Administrator shall request, the report referred to in subparagraph (c) of this paragraph, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matter.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. The Recipient, through the Palestinian Authority, shall cause PWA to be responsible for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, ADF shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set out in Schedule 6 to this AgreementAssociation, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable satisfactory to the AdministratorAssociation, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the AdministratorAssociation, on or about January August 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (dc) review with the AdministratorAssociation, by March 31September 30, 20062005, or such later date as the Administrator Association shall request, the report referred to in subparagraph paragraph (cb) of this paragraphSection, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient said report and the Administrator, and their Association’s views on the matter. 2. Under Part A of the Project, ADF shall: (a) make available to the Beneficiaries grants referred to in the Regulations and Operational Guidelines under agreements to be entered into between ADF and each Beneficiary, under the terms and conditions referred to in the Regulations and Operational Guidelines and which shall have been approved by the Association; and (b) exercise its rights under such agreements in such manner as to protect the interest of the Association and ADF and to accomplish the purposes of the Project, and shall not assign, amend, abrogate or waive any of such agreements, or any provisions thereof. 3. ADF shall: (a) coordinate and monitor the overall execution of the Project and supervise the carrying out by the Beneficiaries of their obligations pursuant to their respective agreements in accordance with policies and procedures satisfactory to the Association; (b) not later than November 30 of each year, prepare and furnish to the Association for review and comment, work plans and budgets for activities under each Part for the next calendar year, which would include, among other things, specific proposals for the use of Xxxxxxxx’s contribution; and (c) by January 31, April 30, July 31 and October 30 of each year, prepare and furnish to the Association for review a report, of such scope and detail as the Association shall reasonably request, on the progress of and the execution of the Project.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. A. Project Management 1. The Recipient, through the Palestinian Authority, shall cause PWA to be responsible for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, carry out the Project in accordance with the indicators set out in Schedule 6 to this Agreement, the carrying out provisions of the Project Implementation Manual, as adopted by the PIU and shall ensure that the achievement provisions of such Project Implementation Manual are not amended without the prior consent of the objectives thereofAssociation; (b) preparemaintain the PIU at least until Project completion, under terms of reference acceptable headed by an individual whose qualifications and experience are satisfactory to the Administrator, Association; and furnish to ensure that the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports PIU has appropriate facilities and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding periodis staffed with sufficient personnel with adequate qualifications; (c) preparecause the PIU, under terms the general supervision of reference satisfactory the Board, to carry out the responsibilities for coordination and management of Project implementation which shall include: (i) the preparation and furnishing to the AdministratorAssociation, for its concurrence, of annual work programs in respect of the Project; (ii) the preparation of procurement and furnish contract documents under the Project; (iii) the maintenance of the Project’s financial records, including in respect of the Special Account and the Project Account; (iv) the supervision of work under the Project, in close coordination with the Board and the Ministry; and (v) the preparation and furnishing to the AdministratorBoard and the Association, on or about January 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph (a) of this paragraph, quarterly reports on the progress achieved in the carrying out status of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such dateimplementation; and (d) review employ a management advisor, financial advisor, procurement specialist and monitoring and evaluation specialist in accordance with the Administratorprovisions of Section II of Schedule 3 to this Agreement no later than May 1, by March 311998. 2. Until Project completion, 2006the Borrower shall maintain the Project Account and make quarterly deposits therein in such amounts as shall be adequate to finance the Borrower’s contribution to the Project in a timely manner. B. Part A of the Project 1. The Borrower shall: (a) assign the responsibility for the carrying out, or review and approval of works included in Part A of the Project to the PIU and shall, for this purpose, cause the PIU to designate not later than April 1, 1998 from among its staff an official with suitable qualifications and experience satisfactory to the Association, to be responsible for the management of said Part; (b) cause the Committee which will be responsible for the selection of activities to be carried out under Part A of the Project, to collaborate effectively with the PIU and cause the PIU to provide technical assistance to the Committee, as needed. C. Part B of the Project 1. In carrying out Part B of the Project, the PIU shall: (i) prepare and furnish to the Bank, for its concurrence, a detailed plan, including the engineering designs, social and environmental analysis and procurement plan, prior to the carrying out of the restoration works in Old Tbilisi; (ii) prepare and furnish to the Association site management plans in such later date scope and detail as the Administrator Association shall requestrequest in respect of the site at Signaghi or any other site included in Part B of the Project; and (iii) thereafter carry out said plans in accordance with the time schedule set forth therein; 2. The PIU shall adopt and implement procedures to ensure active participation of local residents and other stakeholders, such as private vendors, tourism associations, interested investors and municipal bodies, in the report preparation and implementation of the plan referred to in subparagraph paragraph (c1) above. 3. The Borrower shall carry out the resettlement plan referred to in Section 3 (ii) of this paragraphSchedule 1 in accordance with principles and guidelines agreed with the Association and pursuant to a time-bound action plan, andsatisfactory to the Association, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based which shall be prepared on the conclusions basis of said guidelines and agreed recommendations furnished to the Association in accordance with the provisions of the Recipient and the Administrator, and their views on the matterSection 3 (ii) of Schedule 1.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply. The provisions of this Schedule shall apply for the purposes of Section 3.01 (b) of this Agreement. 1. The RecipientProject shall be carried out by the Borrower with the assistance of the NBM. For this purpose, through the Palestinian Authority, Borrower shall maintain or cause PWA to be maintained within NBM: (a) a separate unit (the Apex Unit), with staff and other resources and terms of reference satisfactory to the Bank, responsible for the implementation of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project; and (b) arrangements, as well as satisfactory to the preparation Bank, with NBM, pursuant to which NBM shall continue to assist the Borrower in determining the compliance by PFIs with the conditions set forth in Part B of implementation progress reportsthe Annex to this Schedule. 2. The Recipient For the purpose of carrying out the Project, the Borrower shall, not later than through the conclusion Apex Unit: (a) relend to the PFIs the equivalent of the first contract procured pursuant proceeds of the Loan under Subsidiary Financing Agreements entered into or to Section Ibe entered into between the Borrower and each such PFI, Part B of Schedule 3 under terms and conditions which shall have been approved by the Bank, and which shall include, without limitation, those set forth in the Annex to this AgreementSchedule; (b) monitor the overall execution of the Project and the carrying out by the PFIs of obligations under their respective Subsidiary Financing Agreements in accordance with policies and procedures satisfactory to the Bank; and (c) take or cause to be taken all action necessary or appropriate on its part to enable the PFIs to perform in accordance with the provisions of their respective Subsidiary Financing Agreements all the obligations of the PFIs therein set forth, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Projectnot take or permit to be taken any action which would prevent or interfere with such performance. 3. The Recipient, through the Palestinian Authority, Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set out in Schedule 6 to this AgreementBank, the carrying out of the Project and the achievement of the objectives thereof;. (b) prepare, under terms of reference acceptable to the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, prepare under terms of reference satisfactory to the AdministratorBank, and furnish to the AdministratorBank, on or about January March 31, 20051999, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (d) review with the Administrator, by March 31, 2006, or such later date as the Administrator shall request, the report referred to in subparagraph (c) of this paragraph, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient and the Administrator, and their views on the matter.

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. The RecipientNEA shall, through until the Palestinian Authoritycompletion of the Project, maintain qualified and experienced staff in adequate numbers, and shall cause PWA prepare and submit to be responsible for the Association on a trimestrial basis, a report on the progress of the implementation of Part C of the Project. PWA shall be assisted in the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reports. 2. The Recipient shall, not later than the conclusion NEA shall carry out Part C of the first contract procured pursuant to Section IProject in accordance with procedures set out in the NEA Implementation Plan and in the Policy Framework for Environmental and Social Impact Assessment, and except as the Association shall otherwise agree, shall not amend or waive any provisions thereof, if such amendments or waiver may, in the opinion of the Association, materially or adversely affect the implementation of Part B C of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, NEA shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the indicators set out in Schedule 6 to this AgreementAssociation, the carrying out of Part C of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable satisfactory to the AdministratorAssociation, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the AdministratorAssociation, on or about January December 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of Part C of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of Part C of the Project and the achievement of the objectives thereof during the period following such date; and (dc) review with the AdministratorAssociation, by March January 31, 2006, or such later date as the Administrator Association shall request, the report referred to in subparagraph paragraph (cb) of this paragraphSection, and, thereafter, take all measures required to ensure the efficient completion of Part C of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient said report and the Administrator, and their Association’s views on the matter.

Post Review. With respect to each contract not governed by paragraph 2 1 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. Section I: Implementation 1. The Recipient, through For the Palestinian Authority, shall cause PWA to be responsible for the implementation purposes of overall coordination and supervision of the Project. PWA Project execution, the Borrower shall maintain at all times during the execution of the Project the RFPIU which shall be headed by a director, whose qualifications, terms of reference and experience shall be satisfactory to the Association, and who shall be assisted by key staff in adequate numbers satisfactory to the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under the Project, as well as the preparation of implementation progress reportsAssociation. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, Borrower shall: (a) maintain policies [engage consultants to carry out Part B (1) of the Project, and procedures adequate by (b) by August 31, 1998, engage consultants to enable it prepare a plan for the establishment and operations of a national supervisory and regulatory body under Part B (1) of the Project and, by March 1, 1999, establish such body taking into consideration the recommendations of such consultants and the Association. 3. For the purposes of carrying out Part A of the Project, the Borrower shall, prior to monitor and evaluate on , cause RFC to enter into an ongoing basisagreement with MMA for the provision of advisory services by MMA to [RFC/SCAs]through the RFPIU, engage the services of Development NGOs acceptable to the Association to provide advisory services to SCAs. 4. For the purpose of carrying out Part D of the Project, the Borrower shall: (a) cause RFC to carry out its operations in accordance with the indicators set out in Schedule 6 to this Agreement, the carrying out of the Project and the achievement of the objectives thereofRFC Prudential Rules; (b) preparecause RFC to apply the procedures and guidelines set out in the Operations Manual; and (c) cause RFC to: (i) make Subloans on the terms set out in Section II of this Schedule, and (ii) cause Eligible SCAs to make SCA Loans on the terms set out in Section III of this Schedule. Section II: Terms and conditions of Subloans Subloans shall be made on terms and conditions whereby RFC shall: 1. Make Subloans in accordance with the RFC Prudential Rules and the Operations Manual to SCAs which fulfill the following eligibility criteria: (a) the SCA has been registered in accordance with the SCA Law; is a member of RFC and has made [all necessary contributions] (b) the SCA has made all necessary contributions to the capital of RFC in accordance with the RFC Prudential Rules and RFC Statutes; (b) the SCA has received training from a Development NGOagency approved by the Association under terms Part A of reference the Project; and acceptable to the Administrator, and furnish to the Administrator, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter alia, a detailed break-down of expenditures incurred under the Project during the preceding periodAssociation; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to SCA has adopted the Administrator, on or about January 31, 2005, a mid-term report integrating SCA Prudential Rulesd) the results of SCA is in compliance with the monitoring and evaluation activities performed pursuant to subparagraph (a) of this paragraph, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such dateSCA Prudential Rules; and (d) review the SCA is located in a rural area in the territory of the Borrower. 2. Enter into Subloan Agreements with each Eligible SCA for the purpose of making available part of the proceeds allocated from time to time to Category (3) of the table set forth in Section 1 of Schedule 1 to this Agreement on such terms and conditions as shall be consistent with the AdministratorRFC Prudential Rules and the Operations Manual. 3. Exercise its rights in relation to each Subloan in such manner as to protect its interests and the interests of the Borrower and the Association and to accomplish the purposes of the Credit. 4. Not assign, by March 31, 2006amend or waive any of its agreements providing for Subloans, or such later date as any provision thereof, without the Administrator shall request, the report referred to in subparagraph (c) of this paragraph, and, thereafter, take all measures required to ensure the efficient completion prior approval of the Project Borrower and the achievement Association. Section III: Terms and Conditions of SCA Loans SCA Loans shall be on terms and conditions whereby an Eligible SCA shall: 1. appraise Subprojects and supervise, monitor and report on the carrying out by Beneficiaries of Subprojects in accordance with procedures satisfactory to RFC and the Association; 2. make SCA Loans to Beneficiaries for Subprojects which meet the criteria specified in the Operations Manual, including, without limitation, those which are: (i) technically feasible and economically, financially and commercially viable; and (ii) in compliance with all environmental laws and standards of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient Borrower and the Administratorguidelines for environmental assessment agreed with the Association; 3. make SCA Loans to Beneficiaries in accordance with the SCA Prudential Rules but which shall not, and their views on the matter.in any event, exceed a maximum amount of $15,000 for each SCA Loan;

Post Review. With respect to each contract not governed by paragraph 2 of this partPart, the procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall apply. 1. (a) The RecipientBorrower shall prepare and furnish to the Association a Project Implementation Manual in form and substance satisfactory to the Association setting out details of all procedures, through the Palestinian Authorityguidelines, shall cause PWA to be responsible processes, timetables and criteria for the implementation Project, including: (i) criteria for Subloans and Grants; and (ii) a requirement that a lease be granted to a Beneficiary for a period sufficiently long to enable that Beneficiary to carry out the specific Subproject under Part A of the Project. PWA , as specified in the Project Implementation Manual. (b) The Borrower shall be assisted carry out the Project in accordance with the Project Implementation Manual and, except as the Association shall otherwise agree, shall not amend or waive any provision of the Project Implementation Manual if, in the opinion of the Association, such amendment or waiver may materially and adversely affect the carrying out of its responsibilities by PMU. PMU shall be responsible for the procurement, disbursement, monitoring and evaluation processes under Project or the Project, as well as achievement of the preparation of implementation progress reportsobjectives thereof. 2. The Recipient shall, not later than the conclusion of the first contract procured pursuant to Section I, Part B of Schedule 3 to this Agreement, hire a construction manager, whose responsibilities shall include the supervision and quality assurance of works implemented under the Project. 3. The Recipient, through the Palestinian Authority, Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set out forth in Schedule 6 5 to this Agreement, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference acceptable satisfactory to the AdministratorAssociation, and furnish to the AdministratorAssociation, commencing December 31, 2003, until completion of the Project, quarterly progress reports and summary monthly progress statements, acceptable to the Administrator, covering the implementation of the Project during the preceding period, each such report and statement to include, inter aliaannually, a detailed break-down of expenditures incurred under the Project during the preceding period; (c) prepare, under terms of reference satisfactory to the Administrator, and furnish to the Administrator, on or about January 31, 2005, a mid-term report integrating the results of the monitoring and evaluation activities performed pursuant to subparagraph paragraph (a) of this paragraphSection, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (dc) review with the AdministratorAssociation, by March 31, 2006within two months of the submission of the report, or such later date as the Administrator Association shall request, the report referred to in subparagraph paragraph (cb) of this paragraphSection, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and agreed recommendations of the Recipient said report and the Administrator, and their Association’s views on the matter. 3. No later than eighteen (18) months after the Effective Date, the Borrower shall carry out, jointly with the Association and BNR a midterm review (the Midterm Review) of the progress made in carrying out the Project. The Midterm Review shall cover among other things: (a) an assessment of (A) work programs prepared as of the date of the Midterm Review and the progress made in carrying out the said programs, (B) training provided under the Project, (C) procurement under the Project, (D) the extent to which actions described in the indicators set out in Schedule 5 to this Agreement have been carried out, and (E) plans made or proposed for updating said indicators; and (b) a review of the state of any works carried out under the Project. (a) The Borrower shall establish and thereafter maintain a Project Advisory Committee in a form and with functions, staffing and resources satisfactory to the Association. PAC’s functions shall include the oversight and orientation of Program activities. The membership of PAC shall comprise: (i) the Minister responsible for Agriculture, Animal Resources, and Forestry as Chairman; (ii) representatives of the Ministries responsible for Finance; Planning;