Common use of Structure and Establishment Clause in Contracts

Structure and Establishment. The Government will establish MCA-Nepal as a development board through passage of a formation order approved by the Council of Ministers and published in the Nepal Gazette. Development boards are independent and flexible entities, and are commonly used in Nepal to implement a variety of projects including foreign grant or loan-funded projects. MCA-Nepal will have full decision-making autonomy, including, inter alia, the ability, without the consent or approval of any other party, to: (i) enter into contracts in its own name, (ii) xxx and be sued, (iii) establish an account in a financial institution in the name of MCA-Nepal and hold MCC Funding in that account, (iv) expend MCC Funding, (v) engage contractors, consultants and/or grantees, including, without limitation, procurement and fiscal agents, and (vi) competitively engage one or more auditors to conduct audits of its accounts. The governance of MCA-Nepal will be set forth in more detail in the Program Implementation Agreement, the formation order and internal regulations of MCA-Nepal (“Internal Regulations”) or as otherwise agreed in writing by the Parties. The Internal Regulations will be in accordance with the Governance Guidelines. MCA-Nepal will be administered, managed and supported by the following bodies: a board of directors (the “Board of Directors”), a management unit (the “Management Unit”), and one or more Stakeholders Committees. MCA-Nepal will use various Government entities to help implement the Projects.

Structure and Establishment. The Government will establish MCA-Nepal as a development board through passage of a formation order approved by the Council of Ministers and published in the Nepal Gazette. Development boards are independent and flexible entities, and are commonly used in Nepal to implement a variety of projects including foreign grant or loan-funded projects. MCA-Nepal will have full decision-making autonomy, including, inter alia, the ability, without the consent or approval of any other party, to: (i) enter into contracts in its own name, (ii) xxx sue and be sued, (iii) establish an account in a financial institution in the name of MCA-Nepal and hold MCC Funding in that account, (iv) expend MCC Funding, (v) engage contractors, consultants and/or grantees, including, without limitation, procurement and fiscal agents, and (vi) competitively engage one or more auditors to conduct audits of its accounts. The governance of MCA-Nepal will be set forth in more detail in the Program Implementation Agreement, the formation order and internal regulations of MCA-Nepal (“Internal Regulations”) or as otherwise agreed in writing by the Parties. The Internal Regulations will be in accordance with the Governance Guidelines. MCA-Nepal will be administered, managed and supported by the following bodies: a board of directors (the “Board of Directors”), a management unit (the “Management Unit”), and one or more Stakeholders Committees. MCA-Nepal will use various Government entities to help implement the Projects.