Common use of Special Account Clause in Contracts

Special Account. 1. The Borrower shall, for the purposes of the Project, open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (b) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 6. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, a separate (special deposit account) on terms and conditions satisfactory to the Association, Association including appropriate protection against set-off, seizure and attachment. 2. After the Association has received (a) evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: ; (a) until the Association shall have received: (ib) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (iic) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals from the Credit Account of amounts to be deposited into said Special Account shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b4.01(b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:Section

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank Nepal Rastra Bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $1,000,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of $10,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the amount so requested.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (account, in the Special Account) in a commercial bank acceptable to the AssociationReserve Bank of India, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:Section

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (at the Special Account) BoM or in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the means the amount of $ 700,000 (seven hundred thousand Dollars) to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $350,000 (three hundred fifty thousand Dollars) until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 1,300,000 (one million three hundred thousand Special Drawing Rights).

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,625,000 equivalent to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $812,500 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 1,700,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) account, in a commercial bank acceptable to the Associationits National Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, Agreement any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month six (6)-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) ), or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars United States dollars a special deposit account (the Special Account) account, in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentBank. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement ; Agreement, and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shallmay, for the purposes of the Project, open and maintain in Dollars Dollars, a special deposit account (the Special Account) in Bank Indonesia or in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including including, in the case of a commercial bank, appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of paragraph 2 of Part B. 2 B of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in paragraph 4 of Part A of this Schedule adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of paragraph 2 of Part B.2 B of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $14,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars Dollars: (a) a special deposit account (the Special Account) in a bank acceptable to the Association on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment in the case of a commercial bank; and (b) a separate SGSA for each AA Sub-project to be carried out by an AA for purposes of Part B.1 of the Project in a bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentattachment in the case of a commercial bank. 2. After the Association has received evidence satisfactory to it that the Special Account has and the SGSAs have been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account and the SGSAs shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively either: (a) for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures; or (b) into SGSAs for payments for Eligible Expenditures. For each payment made by the Borrower out of the Special AccountAccount or a SGSA, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or; (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account and SGSAs; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports; and (d) for advances to SGSAs, until the Borrower has furnished to the Association such documents and other evidence showing that payments out of the SGSAs were made exclusively for Eligible Expenditures. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account or a SGSA was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account or a SGSA will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special AccountAccount or SGSAs. (d) Refunds to the Association made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the AssociationBOU, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationbank, on terms and conditions satisfactory to the Association, Association including appropriate protection against set-off, seizure and attachment. 2. After Except as the Association has received evidence satisfactory may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. For Except as the purposes Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of this Scheduleamounts to be deposited into the said Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the term "Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $6,000,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 53. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex, the term "Authorized Allocation" means, an amount equivalent to $1,500,000 (one million five hundred thousand dollars) to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $750,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 3,000,000. 2. Withdrawals of the Special Account’s Authorized Allocations and subsequent withdrawals to replenish the Special Account should be made as follows: (a) For withdrawals of said Special Account’s Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into said Special Account of an amount or amounts which in the aggregate do not exceed said Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into said Special Account such amount, as the Borrower shall have requested. (b) For replenishment of said Special Account, the Borrower shall furnish to the Association requests for deposit into said Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into said Special Accounts such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of said Special Account for Eligible Expenditures. Each such deposit into said Special Account shall be withdrawn by the Association from the Credit Account under one or more of said Special Account’s Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5. 02 of the General Conditions, shall equal the equivalent of twice the amount of said Special Account’s Authorized Allocations. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures, as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in said Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Except as the Association may otherwise specify by notice to the Borrower, all withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories. 2. Each application for withdrawal from the Credit Account for deposit into the Special Account shall be supported by a Project Management Report. 3. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said Project Management Report to be remaining in the Special Account, shall not exceed the equivalent of $6,000,000. The objective of the Project is to assist poor male and female farmers (in Participating Districts) to become aware of, and to be able to adopt, improved technology and management practices in their farming enterprises, to enhance their productive efficiency, their economic welfare, and the sustainability of their farming operations. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Advisory and Information Services to Farmers Provision of agricultural advisory and information services, including: (a) program orientation and group mobilization for farmers, (b) participatory planning between farmers and farm advisors: (i) on the terms of reference and annual work programs for future activities of farm advisors; and (ii) on on-going field activities of farm advisors; (c) carrying out of farm advisory services; and (d) information and communications services, to farmers' groups in Participating Districts and Participating Sub-counties. Part B: Technology Development and Linkages with Markets Provision of technical advisory services to farmers or farm advisors for on-farm adaptation and testing of agricultural technologies, development of on-farm technology, development of linkages between farmers and input and output markets, the implementation of technical support programs for issues of public importance as identified by the NAADS Secretariat and District NAADS offices and carrying out training events for farmers, farm advisors and District and Sub-county officials. Part C: Quality Assurance, Regulation and Technical Auditing of Service Providers Provision of technical advisory services to assist the NAADS Secretariat to: (a) develop and adopt minimum standards for regulating agricultural service providers, including setting standards for their qualification and performance; (b) develop model contracts of services to be entered into with farmers’ groups; and (c) carry out technical audits of the activities of agricultural service providers.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in Bank Indonesia or a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in paragraph 4 of Part A of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of paragraph 2 of Part B.2 B of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) . Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement.. Annex A 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $7,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shallRecipient may, for the purposes of Categories (1) through (5) of the Projecttable in Part A.1 of this Schedule, open and maintain in US Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-Based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-Based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special AccountAccount if: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-Based Disbursements; (b) the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-Based Disbursements or made on the basis of Project Management Reportsstatements of expenditure. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement.. Annex A 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,500,000 equivalent to be withdrawn from the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits central bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account Financing Accounts of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Financing Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account or the Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account or the Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Financing Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of US$4,300,000 to be withdrawn from the Credit Account or the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars or Colombian pesos a special deposit account (the Special Account) in a commercial bank Bank acceptable to the AssociationBank, on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit GEF Trust Fund Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Bank determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit GEF Trust Fund Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit GEF Trust Fund Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower Recipient shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower Recipient may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit GEF Trust Fund Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit GEF Trust Fund Grant Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of seven hundred fifty thousand Dollars ($750,000) to be withdrawn from the GEF Trust Fund Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (the Special Account) in a commercial bank acceptable to the AssociationBank of Bangladesh, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After Except as the Association has received evidence satisfactory may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. For Except as the purposes Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of this Scheduleamounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the term "Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $15,000,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 53. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement.. The objective of the Project is to improve urban environment, infrastructure and services, and, to that end, to: (a) strengthen the institutional capacity of selected municipalities and city corporations; (b) improve resource allocation and fiscal discipline; and (c) support governmental efforts to reduce urban poverty and improve the environmental conditions of urban communities. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Infrastructure Development Financing through loans and/or grants to municipalities of: (i) specific development projects within the municipal infrastructure and services sector for: 1(a) rehabilitation of existing water supply systems in about 12 municipalities, including urgent works relating to hydrants, valve xxxxxxxx and overhead tanks; (b) carrying out of sanitary works, including construction of about 47 public toilets in about 15 municipalities and a pilot small-bore sewerage system in the city corporation of Khulna; (c) upgrading and rehabilitation of about 220 km. For of urban roads and about 37 km. of urban drains; (d) construction of and/or rehabilitation of bus/truck terminals in about 14 municipalities and in the purposes city corporations of this Annex:Khulna and Rajshahi; (e) upgrading and/or rehabilitation of municipal markets in about 14 municipalities and 2 city corporations; (f) carrying out of slum improvement works in the city corporation of Khulna and in about 5 municipalities, including the provision of improved water supply and on-site sanitary facilities, footpaths and street lighting; (g) provision of improved primary solid waste collection facilities, including: (i) communal bins, handcarts and rickshaw vans in about 14 municipalities;

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the AssociationBOU, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) account, in a commercial bank acceptable to the Associationits National Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, Agreement any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars CFA Francs a special deposit account (the Special Account) in a commercial bank acommercial Bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report­ based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of CFA Francs 800,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to CFA Francs 400,000,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 1,500,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars Taka a special deposit account (the Special Account) in a commercial bank acceptable to the Associationaccount, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentAssociation for carrying out the Project. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Grant Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of Taka 150,000,000 to be withdrawn from the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to Taka 90,000,000 until the aggregate amount of withdrawals from the Grant Account allocated to Categories (1) through (9) plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 7,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Recipient shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts, which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested. (b) For replenishment of the Special Account, the Recipient shall furnish to the Association requests for deposit into the Special Account at such intervals, as the Association shall specify. Prior to or at the time of each such request, the Recipient shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Grant minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Grant Account of the remaining unwithdrawn amount of the Grant shall follow such procedures as the Association shall specify by notice to the Recipient. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Grant Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories.

Special Account. 1. The Borrower shall, for the purposes of the Project, through NIPC may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, Association on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsthrough NIPC is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsthrough NIPC is making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower through NIPC out of the Special Account, the Borrower through NIPC shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower through NIPC shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower through NIPC shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower through NIPC shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower through NIPC may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that, unless the Association shall otherwise agree, said Authorized Allocation shall be limited to an amount equivalent to $1,000,000, until the aggregate amount of withdrawals from the Credit Account of amounts allocated to the Special Account’s Eligible Categories, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions in respect of amounts allocated to said Categories, shall equal or exceed the equivalent of SDR 5,000,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationaccount, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of the Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) : if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (b) or if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b4.01(b) (iior 4.01(c) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time anytime that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $15,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the reports required pursuant to Part A.5(a) of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5(a) of this Schedule 1 applicable to such withdrawal application and any adjustments to be carried out pursuant to Part A.5(c) of this Schedule 1, is required to be deposited in order to finance Eligible Program Expenditures during the six-month period prior to the date of such reports. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (account, to be managed by the Special Account) Executive Secretariat, in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $1,800,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $900,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 1,300,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) account, in its Central Bank or a commercial bank acceptable to the AssociationBank, on terms and conditions satisfactory to the AssociationBank, including (in the case of a commercial bank) appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report FMR referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsFMRs, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report FMR pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management ReportsFMRs, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any FMR does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: : (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsFMRs. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraphs (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $1,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equal to $500,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed $4,000,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the AssociationBank, on terms and conditions satisfactory to the AssociationBank, including which in the case of a commercial bank, would include appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Bank determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: : (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $2,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Loan minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Loan Account of the remaining unwithdrawn amount of the Loan shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Bank has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The In accordance with the provisions of Section 2.02 (b) of this Agreement, the Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the CPMO Special Account and the MOF Special Account) , in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-set- off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has Accounts have been opened, withdrawals from the Credit Account of amounts to be deposited into the respective Special Account Accounts shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (brespect of Parts A and D.1(a) of this Agreement ; and (ii) a request from the Project where the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by in respect of Part C.1 of the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from where the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the respective Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the respective Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the respective Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the respective Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report- based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the respective Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the respective Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the respective Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the respective Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the respective Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the respective Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the respective Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex, and in respect of the CPMO Special Account and Categories (1), (2) (3), (4) and (6) as set forth in the table in paragraph 1 of this Schedule 1, the term “Authorized Allocation” means the amount of $5,000,000 to be withdrawn from the Credit Account and deposited into the CPMO Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the CPMO Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the CPMO Special Account of an amount or amounts which in the aggregate do not exceed the respective Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the CPMO Special Account such amount as the Borrower shall have requested. (b) For replenishment of the CPMO Special Account, the Borrower shall furnish to the Association requests for deposit into the CPMO Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the CPMO Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the CPMO Special Account for Eligible Expenditures. Each such deposit into the CPMO Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories (1), (2), (3), (4) and (6). 3. The Association shall not be required to make further deposits into the CPMO Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments in respect of Parts A and D.1 (a) of the Project, entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to the Eligible Categories (1), (2), (3), (4) and (6) shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the CPMO Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures in respect of Parts A and D.1(a) of the Project. 1. In respect of Part C.1 of the Project, withdrawals from the Credit Account shall be deposited by the Association into the MOF Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the MOF Special Account shall be withdrawn by the Association from the Credit Account under Category

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits central bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account Financing Accounts of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Financing Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account or the Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account or the Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Financing Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of US$4,300,000 to be withdrawn from the Credit Account or the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a separate special deposit account (the Special Account) in a commercial bank acceptable to the AssociationBCH, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:Section

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the Association, Reserve Bank of India on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Financial Monitoring Report referred to in Section 4.02 (b) of this Agreement the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Financial Monitoring Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Financial Monitoring Report pursuant to Section 4.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Financial Monitoring Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement.. Operation of Special Account When Withdrawals are Not Made On the Basis of Report-based Disbursements 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $10,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount of $5,000,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed SDR 30,000,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a two separate special deposit account accounts one for Parts A.1, A.3 (a), X.4, A.5, and Part B of the Project in the name of the Generation Company (Special AccountAccount "A") and another for Parts C and D of the Project in the name of MEMD (Special Account "B"), in a commercial bank acceptable to the Associationbank, on terms and conditions satisfactory to the Association, Association including appropriate protection against set-off, seizure and attachment. Except as the Association may otherwise specify by notice to the Borrower, all withdrawals from the Credit Account shall be deposited by the Association into the respective Special Account in accordance with the provisions of this Schedule. Payments out of each Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of a Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 2. After Except as the Association shall otherwise agree, after the Association has received evidence satisfactory to it that the a Special Account has been duly opened, withdrawals from the Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the any Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 6. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shallmay, for the purposes of the Project, cause NAFIN to open and maintain in Dollars a special deposit account on behalf of the Borrower, either: (the Special Accounti) in a commercial bank acceptable to the Association, Borrower’s Central Bank on terms and conditions satisfactory to the AssociationBank; or (ii) in NAFIN on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment; or (iii) in a commercial bank on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Bank determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible ExpenditureExpenditure (or in the case of a Transfer, was not used by an Eligible School to acquire goods, works or services for purposes of the Project in accordance with the terms of this Agreement), or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $24,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Loan minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Loan Account of the remaining unwithdrawn amount of the Loan shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Bank has determined, based on the reports referred to in Part A.4 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports. The objective of the Project is to support the Borrower’s efforts to increase the quality of basic public education through the strengthening of the Borrower’s schools’ autonomy, ultimately contributing to: (a) reducing urban poverty and lessening educational inequality in preschool, primary and lower secondary education; (b) strengthening SEP’s monitoring and evaluation capacity by integrating local management strategies into the national education system; and (c) increasing cooperation between public schools and local communities in disadvantaged urban areas. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Bank may agree upon from time to time to achieve such objective: Part A: School Grants Supporting PEC, through the provision of Transfers to Eligible Schools.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank Nepal Rastra Bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $1,000,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of $10,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the amount so requested.

Special Account. 1. The Borrower shallmay, for the purposes of the Project, cause NAFIN to open and maintain in Dollars a special deposit account on behalf of the Borrower, either: (the Special Accounti) in a commercial bank acceptable to the Association, Borrower’s Central Bank on terms and conditions satisfactory to the AssociationBank; or (ii) in NAFIN on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment; or (iii) in a commercial bank on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Bank determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: : (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible ExpenditureExpenditure (or in the case of a Transfer, was not used by an Eligible School to acquire goods, works or services for purposes of the Project in accordance with the terms of this Agreement), or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $24,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Loan minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Loan Account of the remaining unwithdrawn amount of the Loan shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Bank has determined, based on the reports referred to in Part A.4 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall, for the purposes of the Project, open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, a special deposit account, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible “eligible Categories" ” means Categories (1), (2), and (3), 3 set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B 2. of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 6. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 B 2. of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:Section

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain maintain, in Dollars Dollars, a special deposit account in the name of DPEF (the Special Account) in a commercial bank acceptable to the Association, on terms and conditions satisfactory acceptable to the Association, including appropriate protection against set-off, seizure and or attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, as the case may be, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 B. 2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six- month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to four million Dollars ($4,000,000) to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that, unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount of two million Dollars ($2,000,000) until the aggregate amount of withdrawals from the Credit Account allocated to the Eligible Categories, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of seven million Special Drawing Rights (SDR 7,000,000).

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars a special deposit account (in the Special Account) in Bank of Lao PDR or a commercial bank Bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-set- off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Grant Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $2,000,000 to be withdrawn from the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the Association, Reserve Bank of India on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentBank. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) 3.02 of this Agreement the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b) 3.02 of this Agreement, the Project Agreement accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 3.02 of the Project Agreement. (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower Recipient may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes purpose of this Annex:, the term “Authorized Allocation” means an amount equivalent to $38,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $15,000,000, the aggregate amount of withdrawals from the loan account plus amount of outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of $60,000,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars Euro a special deposit account (the Special Account) account, in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentBank. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, its Central Bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $1,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount of $500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed SDR 5,000,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After except as the Association has received evidence satisfactory may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. For Except as the purposes Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of this Scheduleamounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the term "Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $3,640,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 53. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement.. The objective of the Project is to improve upon the existing legal and judicial framework of the Borrower by making it more efficient, transparent and responsive to the public at large and particularly to the private sector. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Legal Reform 1. For Commercial law development by providing support to the purposes enacting of a modern legislative and regulatory framework and procedural change, including stakeholder workshops and seminars. 2. Professional development by providing training to lawyers, lecturers of law, judges and court personnel, by revamping law curricula including improving law library holdings, and by carrying out a public awareness and communication campaign. 3. Development of a computerized internet-based LAWNET. Part B: Company Registry Restructuring Restructuring of the Office of the Registrar of Companies to improve services offered to the public and private sector by providing training to its existing and new staff, including automation and refurbishment. Part C: Judicial Reform 1. Judicial training of judges and court personnel by developing teaching methods and new curricula, providing audio and video tapes, bench books and manuals, entering into a twinning arrangement and constructing a judicial resource center. 2. Assisting the Judicial Services Commission to undertake a reorganization of its own structure and the administrative structure of the court system as a whole, including related refurbishment. 3. Introducing the administrative reforms developed through the Judicial Services Commission at twenty seven model courts, including related refurbishment, and new construction of two court houses. 4. Developing a formal mediation system for commercial disputes. The Project is expected to be completed by December 31, 2004. Procurement and Consultants’ Services Section I. Procurement of Good and Works Part A: General Goods and works shall be procured in accordance with the provisions of Section I of the "Guidelines for Procurement under IBRD Loans and XXX Credits" published by the Bank in January 1995 and revised in January and August 1996, September 1997 and January 1999 (the Guidelines) and the provisions of the following Parts of this Annex:Section I. Part B: International Competitive Bidding 1. Except as otherwise provided in Part C of this Section, goods and works shall be procured under contracts awarded in accordance with the provisions of Section II of the Guidelines and paragraph 5 of Appendix 1 thereto. 2. The following provisions shall apply to goods and works to be procured under contracts awarded in accordance with the provisions of paragraph 1 of this Part B: Preference for Domestically Manufactured Goods and Domestic Contractors The provisions of paragraphs 2.54 and 2.55 of the Guidelines and Appendix 2 thereto shall apply to goods manufactured in the territory of the Borrower and works to be carried out by domestic contractors.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After except as the Association has received evidence satisfactory may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. For Except as the purposes Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of this Scheduleamounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the term "Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $500,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 53. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b4.01(b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement.. The objective of the Project is to assess and build the methods, framework and capacity for making sustainable and comprehensive improvement in the land administration system. The project aims to build the foundation for a long-term program to develop a fair, efficient, and sustainable land administration system. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Developing and Testing Operational Methods Provision for works, vehicles, equipment, furniture, materials, allowances, incentive payments, transport, service contracts, consultancies, training, and workshops for: 1. For the purposes Carrying out activities to test and develop improved titling methods and develop operational capacity in respect of this Annex:about 22,000 land parcels in various systematic titling technologies, procedures, and implementation arrangements. The methods referred to herein will involve, inter alia: (a) stakeholder communications; (b) search and compilation of records; (c) cadastral surveying and mapping; (d) adjudication and dispute resolution; and (e) title registration and issuance.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the AssociationBank, on terms and conditions satisfactory to the AssociationBank, including which in the case of a commercial bank, would include appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Bank determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $2,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Loan minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Loan Account of the remaining unwithdrawn amount of the Loan shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. Operation of Special Account 1. Withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Bank has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports. The objective of the Project is to improve the Borrower’s land tenure security and land transactions through the provision of efficient, equitable and accessible land administration services to facilitate better land-related investments and more productive and environmentally sustainable land use. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Bank may agree upon from time to time to achieve such objectives: Part A: Land Regularization

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) account, in its Central Bank or a commercial bank acceptable to the AssociationBank, on terms and conditions satisfactory to the AssociationBank, including (in the case of a commercial bank) appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report FMR referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsFMRs, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report FMR pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management ReportsFMRs, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any FMR does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsFMRs. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraphs (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $1,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equal to $500,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed $4,000,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (the Special Account) in a commercial bank acceptable to the AssociationBangladesh Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After Except as the Association has received evidence satisfactory may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. For Except as the purposes Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of this Scheduleamounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the term "Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $9,500,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 53. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement.. The objective of the Project is to promote the development of financial institutions and improvements in investment financing on a sustainable basis through strengthening the quality of intermediation with the aim of increasing industrial growth in Bangladesh. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Resource Mobilization 1. For Development and implementation of simplified procedures for market traded financial instruments to facilitate issuance of bonds and other securities. 2. Strengthening the purposes institutional capabilities of Bangladesh Bank and the Securities and Exchange Commission of Bangladesh to develop and regulate debt market and instruments. 3. Carrying out a program to reform the Borrowers National Savings Scheme in order to reduce distortions in the potential demand for market traded instruments while providing adequate incentives to small savers. 4. Developing market mechanisms for raising funds by the Borrower through strengthening the secondary treasury bond market. Part B: Strengthening of Financial Institutions 1. Financing of Investment Projects through the provision of Subloans and Lease Financing. 2. Provision of Investment Loan, Bridge Loan and Standby Loan through the Facility to be utilized by Participating Financial Institutions to finance Investment Projects. 3. Strengthening the management and operation of the Facility. 4. Strengthening the capacity of Participating Financial Institutions in the areas of business planning, resource mobilization and management information system. * * * * * The Project is expected to be completed by December 31, 2004. A. Administration Agreement 1. The Administration Agreement shall contain provisions, satisfactory to the Association, to ensure that the proceeds of the Loan are utilized by Bangladesh Bank to make Facility Loans through the Facility for the purpose of financing Investment Projects in accordance with the provisions of this AnnexAgreement and the Administration Agreement. Towards that end the Administration Agreement shall contain provisions requiring: (a) Bangladesh Bank to appoint a Facility Advisor satisfactory to the Borrower and the Association; (b) Bangladesh Bank to enter into a Facility Management Agreement with the Facility Advisor for assisting Bangladesh Bank in managing and administering the Facility and containing procedures and terms and conditions satisfactory to the Borrower and the Association, including those set out in Part B of this Schedule; (c) Bangladesh Bank to enter into a Master Facility Agreement with Participating Financial Institutions that meet the eligibility criteria set out in Part E of this Schedule; (d) Bangladesh Bank to ensure that each Master Facility Agreement contains procedures and terms and conditions satisfactory to the Borrower and the Association for the purpose establishing the framework for making Facility Loans, including those set out in Part C of this Schedule; (e) Bangladesh Bank to ensure that it provides Facility Loans to PFIs under Facility Access Agreements in accordance with procedures, and containing terms and conditions, satisfactory to the Borrower and the Association, including those set out in Part D of this Schedule; (f) Bangladesh Bank to ensure that it disburses Facility Loans to PFIs against Subloans and Lease Financing; (g) Bangladesh Bank to ensure that it requires PFIs to make Subloans and Lease Financing in accordance with the procedures and the terms and conditions set out in Schedule 4 to this Agreement; and (h) Bangladesh Bank to provide to the Borrower all reports that Bangladesh Bank receives from the Facility Advisor under the Facility Management Agreement. (i) Bangladesh Bank to provide Facility Loans to Participating Financial Institutions (PFIs) from the Facility upon the recommendation of the Facility Advisor for the purpose of financing Investment Projects in accordance with the provisions of this Agreement, the Administration Agreement, the Facility Management Agreement and the Operational Directives. (j) Bangladesh Bank to make available three types of Facility Loans to PFIs from the Facility: (A) Investment Loan: Bangladesh Bank shall provide Investment Loans to PFIs in order to enable PFIs to make Subloans and Lease Financing to Investment Enterprises in accordance with the procedures and on the terms and conditions set out in Schedule 4 to this Agreement. After a PFI shall have received Investment Loans in an aggregate amount of US$ 4 million that is financed out of the proceeds of the Credit, a PFI shall be eligible to receive additional Investment Loans only if it has received Bridge Loans or Standby Loans and the amount of the additional Investment Loans shall not be greater than the aggregate of resources mobilized by the PFI in the process of receiving Bridge Loans and proceeds through Offerings as set out in clause (C) of this paragraph. A PFI shall not be eligible to receive Investment Loans after Bangladesh Bank shall have committed the equivalent of US$ 25 million in Investment Loans from the Facility that is financed out of the proceeds of the Credit. With the prior approval of the Borrower and the Association, Bangladesh Bank may consider other forms of resource mobilization. (B) Bridge Loan: Bangladesh Bank shall provide Bridge Loans to PFIs to enable them to accumulate quality earning assets and sell participation on these assets in the form of participation certificates in a pool of either loans or lease contracts ("Collateralized Loan Obligations" or "Collateralized Lease Obligations", collectively referred to as "CLOs"). Bangladesh Bank shall ensure that adequate arrangements are in place for the repayment of the Bridge Loans from other sources so that the Subloan against which the Bridge Loan is disbursed continues to be available to finance the related Investment Project. (C) Standby Loan: Bangladesh Bank shall provide Standby Loans to PFIs equivalent to the amount agreed to be paid out of the Facility in accordance with the applicable Master Facility Agreement and the Standby Loan Access Agreement, and financed out of the proceeds of the Credit, as the purchase price for CLOs or bonds/debentures issued by PFIs ("Offering") under underwriting arrangements, satisfactory to Bangladesh Bank, the Borrower and the Association, which the underwriter fails to sell. The amount of a Standby Loan shall not exceed a certain percentage of the Offering determined in accordance with procedures set out in the Operational Directive. Where the underwriter fails to sell and Bangladesh Bank purchases the Offering upto such amount in accordance with its standby commitment, the Standby Loan shall be considered to be drawn down and shall be disbursed against Subloans and Lease Financing. If the Offering or any portion thereof corresponds to Investment Projects financed out of the proceeds of Investment Loans or Bridge Loans, the amount received by the PFI from the Facility Advisor as the purchase price for such Offering or part thereof under the Standby Loan shall be utilized by the PFI to repay the corresponding Investment Loans and Bridge Loans. Bangladesh Bank shall hold the Offering purchased in accordance with the terms and conditions of such Offering. (k) Bangladesh Bank to make Facility Loans under terms and conditions as set out in Part F of this Schedule. (l) Bangladesh Bank to disburse Facility Loans to PFIs against Subloans and Lease Financing made in accordance with procedures and under terms and conditions set out in Schedule 4 to this Agreement. (m) Bangladesh Bank to enter into a Master Facility Agreement with each Participating Financial Institution that meets the eligibility criteria set out in Part E of this Schedule. (n) Bangladesh Bank to ensure that each Master Facility Agreement contains procedures and terms and conditions, satisfactory to the Borrower and the Association for the purpose establishing the framework for making Facility Loans, including those set out in Part C of this Schedule. (o) Bangladesh Bank to provide Facility Loans to PFIs under Facility Access Agreements in accordance with procedures, and containing terms and conditions, satisfactory to, the Borrower and the Association, including those set out in Part D of this Schedule; (p) Bangladesh Bank to duly perform all its obligations under the Administration Agreement, and except as the Association and the Borrower shall otherwise agree, Bangladesh Bank shall not take or concur in any action which would have the effect of assigning, amending, abrogating or waiving the Administration Agreement or any provision thereof.

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient shall open and maintain in Dollars dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentBank. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, Agreement accompanied by a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower Recipient may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shallBorrower, for the purposes of the Projectacting through GCD, shall open and maintain in Dollars a special deposit account (the Special Account) account, in a commercial bank acceptable to the Associationbank, on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of the Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (b) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, Agreement any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reportsstatements of expenditures. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement.. Annex to SCHEDULE 1 Operation of the Special Account 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) account, in a commercial bank acceptable to specifically authorized for this purpose by the AssociationBangko Sentral ng Pilipinas, on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment, for the purpose of Parts B, C and D of the Project to be carried out by DOH. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Bank determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: : (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,200,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to the amount of $200,000 until the aggregate amount of withdrawals from the Loan Account plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of $44,000,000.

Special Account. 1. The Borrower shallRecipient may, for the purposes of Categories (2)-(5) of the Projecttable in Part A.1 of this Schedule, open and maintain in US Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationbank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and or attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-Based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A B to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-Based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B C to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report- Based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-Based Disbursements. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. Agricultural equipment and inputs; 2. Petroleum and fuel products; 3. Construction materials; 4. Transport vehicles and spare parts; 5. Livestock, animal products and veterinary supplies; 6. School supplies and equipment; 7. Medical supplies and equipment; 8. Construction equipment, industrial machinery and spare parts; 9. Electrical equipment, machinery, materials and parts; and 10. Industrial raw materials and chemicals. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $450,000 equivalent to be withdrawn from the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $225,000 until the aggregate amount of withdrawals from the Grant Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 450,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the Association, Reserve Bank of India on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentBank. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, Agreement accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $3,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:.

Special Account. 1. The Borrower shallmay, for the purposes of the Project, open and maintain in Dollars Dollars, a special deposit account (the Special Account) in Bank Indonesia or in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including including, in the case of a commercial bank, appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of paragraph 2 of Part B. 2 B of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in paragraph 4 of Part A of this Schedule adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of paragraph 2 of Part B.2 B of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $14,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to paragraph 3 of Part B of this Schedule 1 for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of this Schedule. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in paragraph 4 of Part A of Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the Association, Borrower’s Central Bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $600,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $300,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 600,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a separate special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentBank. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month six (6)-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) ), or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts, which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount, as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals, as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six (6)-month period following the date of such reports. The objectives of the Project are to: (i) alleviate power shortages in the territory of the Borrower; and (ii) enhance the capabilities of the Borrower’s energy sector institutions. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives:

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (account, to be managed by the Special Account) Executive Secretariat, in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $1,800,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $900,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 1,300,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been openedopened in accordance with Section 2.02 (b) of this Agreement, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1Schedule; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule. 32. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.1 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 B.1 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (Account, or, if the Association shall so request, refund to the Association) , an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement.. SCHEDULE 1 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $15,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,625,000 equivalent to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $812,500 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 1,700,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a separate special deposit account (the Special Account) in a commercial bank acceptable to specifically authorized for this purpose by the AssociationBangko Sentral ng Pilipinas, on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts amount to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal withdrawals on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the Association, Reserve Bank of India on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Report; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a the first Project Management Report pursuant to Section 4.02 (b) of this AgreementReport, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 3.02 of the Maharashtra Project Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower or Maharashtra shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii) of this Agreement, or Section 3.01 (b) (ii) of the Maharashtra Project Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section Sections in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $5,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $2,500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of SDR 15,000,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this the Projectthis Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six- (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the Association, Borrower’s Central Bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $600,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $300,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 600,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. SCHEDULE 1 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars Taka a special deposit account (the Special Account) in a commercial bank acceptable to the Associationaccount, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentAssociation for carrying out the Project. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Grant Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of Taka 150,000,000 to be withdrawn from the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to Taka 90,000,000 until the aggregate amount of withdrawals from the Grant Account allocated to Categories (1) through (9) plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 7,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Recipient shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts, which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested. (b) For replenishment of the Special Account, the Recipient shall furnish to the Association requests for deposit into the Special Account at such intervals, as the Association shall specify. Prior to or at the time of each such request, the Recipient shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Grant minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Grant Account of the remaining unwithdrawn amount of the Grant shall follow such procedures as the Association shall specify by notice to the Recipient. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. Annex B to SCHEDULE 1 1. Withdrawals from the Grant Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of five million United States dollars (US$5,000,000) to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to United States dollars two million, five hundred thousand (US$2,500,000) until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of seven million, five hundred thousand Special Drawing Rights (SDR 7,500,000).

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain a convertible Special Account in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the AssociationTaka, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentfor carrying out the Project. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient and the Guarantor of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Grant Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of Taka 150,000,000 to be withdrawn from the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Recipient shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested. (b) For replenishment of the Special Account, the Recipient shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Recipient shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Grant minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Grant Account of the remaining unwithdrawn amount of the Grant shall follow such procedures as the Association shall specify by notice to the Recipient. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Grant Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Grant, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of US$1,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to US$500,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 1,000,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (in the Special Account) Maldives Monetary Authority or in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements or were made on the basis of statements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of one million United States dollars ($1,000,000) to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment.Banco de 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equal to $1,500,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars Euro a special deposit account (in the Special Account) in National Bank of Poland or a commercial bank acceptable to the AssociationBank, on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association determines Bank, at any time time, is not satisfied that all further withdrawals should be made by the Borrower directly from reports referred to in Part A.5 of this Schedule 1 adequately provide the Credit Accountinformation required for Report-based Disbursements; or (b) if the Borrower shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of €20,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to the amount of €10,000,000 until the aggregate amount of withdrawals from the loan account plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of €20,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Loan minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Loan Account of the remaining unwithdrawn amount of the Loan shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Bank has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports. The objective of the Project is to protect the population in the Odra River Basin against loss of life and damage to property caused by severe flooding, particularly by: (i) reducing the extreme flood peaks through storage in a dry polder on the Odra River upstream of Raciborz town and thus enabling a reduction of the flood peak downstream of the reservoir and allowing better control of the operation of the river system; and (ii) increasing the flood carrying capacity of the Odra River channels through and around Wroclaw. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Bank may agree upon from time to time to achieve such objectives:

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars Taka a special deposit account (account, for the Special Account) Project, in a scheduled commercial bank acceptable to the Associationbank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account and the Pooled Funds Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: : (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement Agreement; and and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account and the Pooled Funds Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account and the Pooled Funds Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account and the Pooled Funds Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been openedopened in accordance with Section 2.02 (b) of this Agreement, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1Schedule; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule. 32. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.1 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 B.1 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (Account, or, if the Association shall so request, refund to the Association) , an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means an amount equivalent to $15,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.2 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit allocated to the Eligible Categories, minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account, an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, its Central Bank on terms and conditions satisfactory to the AssociationAssociation for the purposes of Parts X, including appropriate protection against set-offX.0, seizure X, X, X.0, X.0, X.0, X.0, X.0, J and attachment. 2K.1 of the Project. After Except as the Association has received evidence satisfactory may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. For Except as the purposes Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of this Scheduleamounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the term "Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $1,000,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 53. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of this Agreement. The objectives of the Development Credit AgreementProject are to assist the Borrower in implementing policies and strategies whose objectives are to improve the health and nutrition of children under five (5) years of age and the educational status of primary school girls in economically disadvantaged parts of the country. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Capacity Building Program for Project Area Communities Carrying out a program whose objective is to assist local communities in identifying health, nutrition and education issues affecting their daily lives, and in planning productive initiatives in each of the three above-mentioned sectors. Part B: Health System Strengthening 1. For Carrying out, through the purposes execution of this Annex:works, a program to rehabilitate pilot referral health facilities, health centers and health units, and another program, consisting of the provision of training and technical assistance, to improve the operational capabilities of health offices in the Project Area. 2. Provision of goods to equip the facilities, centers and units referred to under Part B.1 of the Project. Part C: Integrated Management of Childhood Illnesses Carrying out, through the provision of goods, including oral re-hydration solution sachets, expert services and training of physicians and health workers, a program to develop, and thereafter implement, a management strategy to integrate approaches to the treatment of children stricken by acute respiratory infections, diarrheal diseases, malaria, measles and malnutrition. Part D: Immunization Program Carrying out, through the provision of goods, including vaccines, expert services and training, a program to increase the coverage rate of vaccines for measles, tetanus, whooping cough, tuberculosis and poliomyelitis, and the enhancement of the capabilities of local health facilities to cope with childhood illnesses. Part E: Safe Motherhood 1. Carrying out, through the provision of goods and expert services, a program to enhance the quality of obstetric services and the ability of hospitals and health centers to perform child deliveries. 2. Carrying out a training program, including workshops, to educate outreach workers and other health facilities’ personnel on pre- and post-natal care. Part F: Water and Sanitation Schemes 1. Carrying out, through the provision of technical assistance, training and the execution of works, a program to provide drinking water and sanitation services to selected communities and districts in the Project Area.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the Association, Reserve Bank of India on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) 3.07 of this Agreement the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) 3.07 of this Agreement, the Project Agreement accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 3.07 of the Project Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of two million, five hundred thousand United States dollars (U.S.$2,500,000) to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for Upon receipt of notification from the purposes Association allowing the establishment of the ProjectSpecial Accounts, the Borrower may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank Bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, Borrower’s MOE shall through PPMU open and maintain in Dollars US dollars a special deposit account (the Special Account) ), in a commercial bank acceptable to the Associationbank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and or attachment. 2. After Except as the Association has received evidence satisfactory may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. For Except as the purposes Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of this Scheduleamounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the term "Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $5,000,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 53. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, determine whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. The objective of the Project is to assist the Borrower to establish the basis for an equitable education system, through quality and opportunity improvement and strengthening of management and accountability procedures. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Improvement of Secondary Education Quality and Opportunity 1. Redesigning the curriculum framework for general and technical education to increase access to education opportunities through the introduction of core courses and flexible options for differing levels of ability for both general and technical schools. 2. Developing new assessment and evaluation methods for the education system. 3. Providing professional development programs for teachers, including on the job learning of the new curriculum and assessment techniques. 4. Rehabilitation, conversion and equipment of selected technical schools. Part B: Strengthening Institutional Capacity 1. Carrying out a program to enhance the community and private sector involvement through increased local management responsibilities, support for parent council activities and public/private sector partnerships, and the provision of grants to schools and local education administrations to assist in improving in-service training and incentives schemes for teachers. 2. Developing new quality assurance mechanisms and improving management practices through the devising of schemes for clearer lines of responsibilities, including accountability mechanisms. 3. Providing professional development for school heads and administrators, including management techniques and training on using technology for management. The Project is expected to be completed by December 31, 2005. Procurement and Consultants’ Services Section I. Procurement of Good and Works Part A: General Goods and works shall be procured in accordance with the provisions of Section I of the “Guidelines for Procurement under IBRD Loans and XXX Credits” published by the Bank in January 1995 and revised in January and August 1996, September, 1997 and January, 1999 (the Guidelines) and the following provisions of Section I of this Schedule. 1. For the purposes Except as otherwise provided in Part C of this Annex:Section, goods and works shall be procured under contracts awarded in accordance with the provisions of Section II of the Guidelines and paragraph 5 of Appendix 1 thereto. 2. The following provisions shall apply to goods to be procured under contracts awarded in accordance with the provisions of paragraph 1 of this Part B. (a) Notification and Advertising The invitation to prequalify or bid for each contract estimated to cost US$250,000 equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the AssociationReserve Bank of India, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from If the Borrower for withdrawal on the basis of Project Management Reportsis not seeking Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from If the Borrower for withdrawal on the basis of Project Management Reportsis seeking Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this the Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $15,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that, unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $7,500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of SDR 25,000,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars a special deposit account in the Recipient’s Banco de Reserva Federal (the Special Account) in a commercial bank acceptable to the AssociationRecipient’s Central Bank), on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit GEF Trust Fund Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Bank determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit GEF Trust Fund Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit GEF Trust Fund Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower Recipient shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower Recipient may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit GEF Trust Fund Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit GEF Trust Fund Grant Agreement. 1. For the purposes of this Xxxxx, the term “Authorized Allocation” means the amount of $500,000 to be withdrawn from the GEF Trust Fund Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Recipient shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Recipient, withdraw from the GEF Trust Fund Grant Account and deposit into the Special Account such amount as the Recipient shall have requested. (b) For replenishment of the Special Account, the Recipient shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to or at the time of each such request, the Recipient shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Recipient, withdraw from the GEF Trust Fund Grant Account and deposit into the Special Account such amount as the Recipient shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the GEF Trust Fund Grant Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the GEF Trust Fund Grant minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the GEF Trust Fund Grant Account of the remaining unwithdrawn amount of the GEF Trust Fund Grant shall follow such procedures as the Bank shall specify by notice to the Recipient. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the GEF Trust Fund Grant Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the GEF Trust Fund Grant Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the GEF Trust Fund Grant, the Bank shall, on behalf of the Recipient, withdraw from the GEF Trust Fund Grant Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Bank has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports. .

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentBank. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:, the term "Authorized Allocation" means an amount equivalent to $1,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Except as the Bank shall otherwise agree, the Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationbank, on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of the Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Financial Monitoring Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (bb)(ii) and (iic)(ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Financial Monitoring Reports. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement.. SCHEDULE 1 1. For Except as the purposes Bank may otherwise specify by notice to the Borrower, all withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Special Account's Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Bank has determined, based on the reports referred to in Part A.3 of this Annex:Schedule applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report.

Special Account. 1. The Borrower shall, for the purposes of the Project, open and maintain in Dollars FCFA a special deposit account (Special Account for the Special Account) Project in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and or attachment. Except as the Association may otherwise specify by notice to the Borrower, all withdrawals from the Credit Account shall be deposited into the Special Account in accordance with the provisions of this Schedule. 2. After Except as the Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "“Eligible Categories" ” means Categories 1 (1a), (b), (2), and (3), and (4) set forth in the table in paragraph 1 of Part A A.1 of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 6. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of this Agreement. Annex A to SCHEDULE 1 Operation of the Development Credit Agreement.Special Account 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the AssociationState Treasury of Hungary, on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit GEF Trust Fund Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association determines Bank, at any time time, is not satisfied that all further withdrawals should be made by the Borrower directly from reports referred to in Part A.5 of this Schedule 1 adequately provide the Credit Accountinformation required for Report-based Disbursements; or (b) if the Borrower Recipient shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: : (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit GEF Trust Fund Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower Recipient shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower Recipient may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit GEF Trust Fund Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit GEF Trust Fund Grant Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,250,000 to be withdrawn from the GEF Trust Fund Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain a convertible Special Account in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the AssociationTaka, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentfor carrying out the Project. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient and the Guarantor of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Grant Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of Taka 150,000,000 to be withdrawn from the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Recipient shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested. (b) For replenishment of the Special Account, the Recipient shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Recipient shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Grant minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Grant Account of the remaining unwithdrawn amount of the Grant shall follow such procedures as the Association shall specify by notice to the Recipient. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. Annex B to SCHEDULE 1 1. Withdrawals from the Grant Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Grant, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this the Project Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement.. SCHEDULE 1 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of four million United States dollars (U.S.$4,000,000) to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account in Bank Indonesia (the Special Accountits Central Bank) or in a state commercial bank acceptable to the AssociationBank, on terms and conditions satisfactory to the AssociationBank, including including, in the case of a state commercial bank, appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request Withdrawals from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals Loan Account shall be made deposited by the Bank into the Special Account in accordance with the provisions of Annex A Schedule 1 to this Schedule 1; andAgreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. (b) upon Upon receipt by of each application for withdrawal of an amount of the Association Loan, the Bank shall, on behalf of a Project Management Report pursuant the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to Section 4.02 the lesser of: (bi) the amount so requested; and (ii) the amount which the Bank has determined, based on the reports referred to in Part A.4 of this AgreementSchedule 1 applicable to such withdrawal application, accompanied by a request from is required to be deposited in order to finance Eligible Expenditures during the Borrower for withdrawal on six-month period following the basis date of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1such reports. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Bank determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For The objectives of the purposes Project are to assist the Borrower to: (i) improve conditions of this Annexthe strategic road network in order to reduce transport costs and enhance regional accessibility; (ii) support decentralization of planning and managing responsibilities for civil works to Provincial and Kabupaten governments; and (iii) increase the efficiency, quality and transparency of civil works procurement and implementation. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Bank may agree upon from time to time to achieve such objectives:

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) Dollars, in a commercial bank acceptable to the Associationits Central Bank, and on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure : (a) a special deposit account for Part A of the Project (the BANHPROVI Special Account); and attachment(b) a special deposit account for Parts B through E of the Project (the FHIS Special Account). 2. After the Association has received evidence satisfactory to it that the Special Account has Accounts have been opened, withdrawals from the Credit Account of amounts to be deposited into any of the Special Account Accounts shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the respective Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of any of the Special AccountAccounts, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into any of the Special AccountAccounts: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into any of the Special Account Accounts in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into any of the Special Account Accounts may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of any of the Special Account Accounts was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the respective Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into any of the Special Account Accounts shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account Accounts will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special AccountAccounts. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means: (a) the amount of $500,000 to be withdrawn from the Credit Account and deposited into the BANHPROVI Special Account; and (b) the amount of $800,000 to be withdrawn from the Credit Account and deposited into the FHIS Special Account; all pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in Bank Indonesia or in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-set- off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (iib)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $5,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The In accordance with the provisions of Section 2.02 (b) of this Agreement, the Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the CPMO Special Account and the MOF Special Account) , in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has Accounts have been opened, withdrawals from the Credit Account of amounts to be deposited into the respective Special Account Accounts shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (brespect of Parts A and D.1(a) of this Agreement ; and (ii) a request from the Project where the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by in respect of Part C.1 of the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from where the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the respective Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the respective Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the respective Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the respective Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the respective Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the respective Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the respective Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the respective Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the respective Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the respective Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the respective Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex, and in respect of the CPMO Special Account and Categories (1), (2) (3), (4) and (6) as set forth in the table in paragraph 1 of this Schedule 1, the term “Authorized Allocation” means the amount of $5,000,000 to be withdrawn from the Credit Account and deposited into the CPMO Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the CPMO Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the CPMO Special Account of an amount or amounts which in the aggregate do not exceed the respective Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the CPMO Special Account such amount as the Borrower shall have requested. (b) For replenishment of the CPMO Special Account, the Borrower shall furnish to the Association requests for deposit into the CPMO Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the CPMO Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the CPMO Special Account for Eligible Expenditures. Each such deposit into the CPMO Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories (1), (2), (3), (4) and (6). 3. The Association shall not be required to make further deposits into the CPMO Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments in respect of Parts A and D.1 (a) of the Project, entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to the Eligible Categories (1), (2), (3), (4) and (6) shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the CPMO Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures in respect of Parts A and D.1(a) of the Project. 1. In respect of Part C.1 of the Project, withdrawals from the Credit Account shall be deposited by the Association into the MOF Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the MOF Special Account shall be withdrawn by the Association from the Credit Account under Category (5) as set forth in the table in paragraph 1 of this Schedule 1. 2. Upon receipt of each application for withdrawal of an amount of the Credit in respect of Part C.1 of the Project, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the MOF Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures in respect of Part C.1 of the Project during the six (6) month period following the date of such reports.

Special Account. 1. The Borrower shall, for the purposes of the Project, open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, Banco de la Provincia de Buenos Aires on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex the term "Authorized Allocation" means the amount of $6,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to the amount of $2,000,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed $13,400,000.

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the AssociationNational Reserve Bank of Tonga, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit NZAID Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit NZAID Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit NZAID Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit NZAID Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For Withdrawals from the purposes NZAID Grant Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the NZAID Grant Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the NZAID Grant, the Association shall, on behalf of the Recipient, withdraw from the NZAID Grant Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.4 of this AnnexSchedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports. The objective of the Project is to assist the Recipient in establishing a consistent and equitable mechanism that will empower schools and communities to improve the quality of schooling at primary and secondary schools levels, and to produce an upward trend in educational outcomes. The Project consists of the following parts, subject to such modifications thereof as the Recipient and the Association may agree upon from time to time to achieve such objectives:

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachmentBank. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) 4.07 of this Agreement Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association Bank of a Project Management Report pursuant to Section 4.02 (b) 4.07 of this Agreement, Agreement accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.07 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank within the period of time specified in Section 4.01 4.02 (ba) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: : (A) the records and accounts for the Special Account, or ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower Recipient may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shallmay, for the purposes of the Project, open and maintain in Dollars a special deposit account (the Special Account) in Bank Indonesia or in a commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including including, in the case of a commercial bank, appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $10,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationits Central Bank, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Grant Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $1,500,000 to be withdrawn from the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Recipient shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested. (b) For replenishment of the Special Account, the Recipient shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Recipient shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account such amount as the Recipient shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Grant minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Grant Account of the remaining unwithdrawn amount of the Grant shall follow such procedures as the Association shall specify by notice to the Recipient. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. SCHEDULE 1 1. Withdrawals from the Grant Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Grant Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Grant, the Association shall, on behalf of the Recipient, withdraw from the Grant Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationaccount, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of the Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b4.01(b) (iior 4.01(c) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time anytime that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $15,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the reports required pursuant to Part A.5(a) of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5(a) of this Schedule 1 applicable to such withdrawal application and any adjustments to be carried out pursuant to Part A.5(c) of this Schedule 1, is required to be deposited in order to finance Eligible Program Expenditures during the six-month period prior to the date of such reports. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. The objective of the Project is to support the Borrower’s Revised National Tuberculosis Control Program Phase II (the Program), aimed at treating and reducing the incidence of tuberculosis (TB) throughout its territory. The Project consists of the following activities subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objective: Part A. Strengthening and Consolidating Program Services 1. Strengthening the quality and consolidation of TB laboratory services, including: (a) establishing a network of certified intermediate reference laboratories at the state level to facilitate the intensified supervision of laboratory activities at the district level; (b) developing comprehensive laboratory quality assurance mechanisms; and (c) carrying out reporting activities on quality assurance results to the state and central levels of the Program to facilitate targeted interventions for improvement of the Program. 2. Strengthening the Program supervision system, including: (a) implementing a comprehensive computerized data collection system; and (b) carrying out of periodic annual risk of TB infection surveys. 3. Carrying out operational research in the areas of: (a) strengthening service delivery to, and demand for services from, marginal groups and HIV/TB co-infected persons; (b) public-private mix models of TB interventions; and (c) pediatric DOTS and the treatment of multi-drug resistant TB. 4. Strengthening of Program IEC, including: (a) carrying out activities aimed at creating awareness of TB symptoms and demand for free DOTS services; (b) carrying out public advocacy activities aimed at increasing public support and commitment for TB control; and (c) carrying out activities aimed at enhancing patient-provider communication and counseling to facilitate patient compliance and ensure the delivery of patient-friendly services. 5. Strengthening of the institutional capacity through: (a) strengthening CTD, by maintaining units and personnel-in-charge in respect of supervision and monitoring, human resource management and development, financial management, procurement, advocacy and health communication; (b) strengthening the managerial capacity of the Program staff at the state level and the implementation capacity of Program staff at the district level; (c) implementing a phased decentralization of the Program’s activities; (d) carrying out training for Program staff; and (e) carrying out activities to assist public and private medical colleges to: (i) adopt DOTS as the prescribed TB treatment; (ii) provide training to college faculty on DOTS implementation and monitoring; and (iii) support the creation and maintenance of TB task forces. Part B. Program Outreach to Target Special Groups 1. Carrying out activities aimed at identifying and defining population groups that have, or may have, difficulties in accessing Program services, including providing additional financial and managerial support and incentives to health staff in tribal areas. 2. Carrying out activities aimed at: (a) identifying and treating unregistered and undetected TB cases; (b) promoting the involvement of non-public health care providers in the Program and in the provision of DOTS; and (c) providing support to the Project States to benefit from relevant outreach schemes, develop appropriate tools for implementation and indicators to monitor Program progress, and carry out operational research in the areas of public-private mix- related interventions on case detection, treatment success and equitable access. 3. Carrying out activities aimed at coordinating HIV and TB programs at both the state and district levels for the prevention and control of both diseases. 4. Providing support for the treatment of pediatric TB cases, including the provision of standardized drug regimens and the modification of recording and reporting systems. 5. Carrying out a phased program to establish laboratory capacity at the state level to address multi-drug resistance, including the expansion of access to drug resistance testing and treatment of multi-drug resistance cases.

Special Account. 1. The Borrower shall, for the purposes of the Project, shall open and maintain in Dollars a special deposit account (the Special Account) in Bank Indonesia or in a state commercial bank acceptable to the Association, on terms and conditions satisfactory to the Association, including including, in the case of a commercial bank, appropriate protection against set-off, seizure and attachment. 2. After Except as the Association has received evidence satisfactory may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. For Except as the purposes Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of this Scheduleamounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a FMR. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the term "Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the FMR accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $16,400,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 53. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association determines at any time that any FMR does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Association determines at any time that all further withdrawals should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsFMRs. 64. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 5 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the AssociationState Treasury of Hungary, on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit GEF Trust Fund Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by if the Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association determines Bank, at any time time, is not satisfied that all further withdrawals should be made by the Borrower directly from reports referred to in Part A.5 of this Schedule 1 adequately provide the Credit Accountinformation required for Report-based Disbursements; or (b) if the Borrower Recipient shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit GEF Trust Fund Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower Recipient shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower Recipient may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit GEF Trust Fund Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit GEF Trust Fund Grant Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,250,000 to be withdrawn from the GEF Trust Fund Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) in a commercial bank acceptable to the Associationaccount, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of the Annex A to this Schedule 1; and Schedule1 (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Report-based Disbursements). 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule adequately provide the information required for Report-based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Account; or (bc) if the Borrower shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) or (iic) of this the Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time anytime that any amount of the Authorized Advance (as defined in the Annex to Schedule 1) outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determinationExpenditures, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under Category 1 of Schedule 1 to this Agreement. 2. For the purposes of this Annex:, the term “Authorized Advance” means an amount equivalent to $75,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 3 of this Annex.

Special Account. 1. The Borrower shall, for the purposes of the Project, Recipient may open and maintain in Dollars a special deposit account (in the Special Account) in a commercial bank acceptable to the AssociationNational Reserve Bank of Tonga, on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure and attachment. 2. After the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit NZAID Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 B.2 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if the Association, at any time, is not satisfied that the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required for Report- based Disbursements; (b) if the Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Credit NZAID Grant Account; or (bc) if the Borrower Recipient shall have failed to furnish to the Association Association, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 65. The Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Credit NZAID Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower Recipient shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Association, refund to the Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit NZAID Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit this Agreement. 1. For Withdrawals from the purposes NZAID Grant Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the NZAID Grant Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the NZAID Grant, the Association shall, on behalf of the Recipient, withdraw from the NZAID Grant Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.4 of this AnnexSchedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports. The objective of the Project is to assist the Recipient in establishing a consistent and equitable mechanism that will empower schools and communities to improve the quality of schooling at primary and secondary schools levels, and to produce an upward trend in educational outcomes. The Project consists of the following parts, subject to such modifications thereof as the Recipient and the Association may agree upon from time to time to achieve such objectives: Part A: Institutional Strengthening and Capacity Building 1. Strengthening the capacity of MOE, specifically with respect to the School Grants Program, to: (a) develop, analyze and review education policies; (b) establish investment priorities; (c) develop specific rolling plans based on the sector priorities; (d) efficiently allocate resources; and (e) conduct consultative policy dialogues with relevant stakeholders. 2. Strengthening the capacity of MOE to: (a) develop and annually review three (3) year rolling plans detailing the Project investments and the performance indictors at both the national and school levels; and (b) monitor the Project implementation and collect baseline information for the Project. 3. Strengthening the capacity of the schools participating in the Project, including: (a) provision of School Grants for managing their resources and planning their three (3) years rolling development plans; and (b) provision of training to head teachers, teachers and community members. Part B: School Grants Program 1. Designing, managing, and monitoring the School Grants Program, including: (a) providing technical assistance to design and manage the School Grants Program, and to develop the operations guidelines for said Program; (b) conducting public awareness campaigns for the School Grants Program; (c) providing training to schools participating in the School Grants Program on the processes and procedures of the School Grants Program, and (d) supporting the annual review of the performance of the participating schools in the School Grants Program. 2. Providing School Grants to selected primary or secondary schools to finance the schools’ overall development needs detailed in their three (3) year rolling plans.

Special Account. 1. The Borrower shall, for the purposes of the Project, may open and maintain in Dollars a special deposit account (the Special Account) account, in a commercial bank acceptable to specifically authorized for this purpose by the AssociationBangko Sentral ng Pilipinas, on terms and conditions satisfactory to the AssociationBank, including appropriate protection against set-off, seizure and attachment, for the purpose of Parts B, C and D of the Project to be carried out by DOH. 2. After the Association Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Credit Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement ; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures in accordance with the provisions of this ScheduleExpenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association Bank shall reasonably request, furnish to the Association Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For Notwithstanding the purposes provisions of Part B.2 of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B. 2 of this Schedule, the Association Bank shall not be required to make further deposits into the Special Account: (a) if the Association Bank, at any time, is not satisfied that the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required for Report-based Disbursements; (b) if the Bank determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Credit Loan Account; or (bc) if the Borrower shall have failed to furnish to the Association Bank, within the period of time specified in Section 4.01 (b) (ii4.01(b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association Bank pursuant to said Section in respect of the audit of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 65. The Association Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Association Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Association Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Association Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the AssociationBank, the Borrower shall, promptly upon notice from the AssociationBank, provide such additional evidence as the Association Bank may request, or deposit into the Special Account (or, if the Association Bank shall so request, refund to the AssociationBank) an amount equal to the amount of such payment. Unless the Association Bank shall otherwise agree, no further deposit by the Association Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Association Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the AssociationBank, refund to the Association Bank such outstanding amount. (c) The Borrower may, upon notice to the AssociationBank, refund to the Association Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 7 6 shall be credited to the Credit Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Loan Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $1,200,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to the amount of $200,000 until the aggregate amount of withdrawals from the Loan Account plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of $44,000,000.