Common use of Sub-projects Clause in Contracts

Sub-projects. 1. The proceeds of the Subsidiary Credits shall be relent by each Project Implementing Entity to its respective Participating Utilities and Participating Municipalities, as the case may be, under a Subsidiary Financing Agreement to be entered into between the relevant Project Implementing Entity and the relevant Participating Utility and Participating Municipality, as the case may be, under terms and conditions which shall have been approved by the Association. Except as the Association shall otherwise agree, such terms and conditions shall include the following: (a) the Subsidiary Financing provided by the Project Implementing Entity to the relevant Participating Utility or Participating Municipality under the Subsidiary Financing Agreement to carry out the Project shall be denominated in KM; (b) the term of the Subsidiary Financing shall be twenty (20) years, including an 8-year grace period; (c) the Project Implementing Entity shall charge the relevant Participating Utility and Participating Municipality a commitment charge at a rate equal to the rate payable by the Recipient under Section 2.03 of this Agreement, on the principal amount of the Subsidiary Financing not withdrawn from time to time; (d) the Project Implementing Entity shall charge the relevant Participating Utility and Participating Municipality a service charge on the principal amount of the Subsidiary Financing withdrawn and outstanding from time to time at a rate equal to two percent (2%) per annum; and the principal amount of the Subsidiary Financing shall be repayable in KM. The Project Implementing Entity shall also obtain rights adequate to protect its interests and those of the Association, including the right to: suspend or terminate the right of the relevant Participating Utility or Participating Municipality to use the proceeds of the Subsidiary Credit, or obtain a refund of all or any part of the amount of the Subsidiary Credit then withdrawn, upon the failure of the relevant Participating Utility or Participating Municipality to perform any of its obligations under the Subsidiary Financing Agreement; and

Sub-projects. 1. The proceeds of the Subsidiary Credits shall be relent by each Project Implementing Entity the Federation to its respective Participating Utilities and Participating Municipalities, as the case may be, under a Subsidiary Financing Agreement to be entered into between the relevant Project Implementing Entity Federation and the relevant Participating Utility and Participating Municipality, as the case may be, under terms and conditions which shall have been approved by the Association. Except as the Association shall otherwise agree, such terms and conditions shall include the following: (a) the Subsidiary Financing provided by the Project Implementing Entity Federation to the relevant Participating Utility or Participating Municipality under the Subsidiary Financing Agreement to carry out the Project shall be denominated in KM; (b) the term of the Subsidiary Financing shall be twenty (20) years, including an 8-year grace period; (c) the Project Implementing Entity Federation shall charge the relevant Participating Utility and Participating Municipality a commitment charge at a rate equal to the rate payable by the Recipient under Section 2.03 of this the Financing Agreement, on the principal amount of the Subsidiary Financing not withdrawn from time to time; (d) the Project Implementing Entity Federation shall charge the relevant Participating Utility and Participating Municipality a service charge on the principal amount of the Subsidiary Financing withdrawn and outstanding from time to time at a rate equal to two percent (2%) per annum; and and (e) the principal amount of the Subsidiary Financing shall be repayable in KM. 2. The Project Implementing Entity Federation shall also obtain rights adequate to protect its interests and those of the Association, including the right to: : (a) suspend or terminate the right of the relevant Participating Utility or Participating Municipality to use the proceeds of the Subsidiary Credit, or obtain a refund of all or any part of the amount of the Subsidiary Credit then withdrawn, upon the failure of the relevant Participating Utility or Participating Municipality to perform any of its obligations under the Subsidiary Financing Agreement; and (b) require the relevant Participating Utility or Participating Municipality to: (i) carry out their its Sub-project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the provisions of the Anti-Corruption Guidelines applicable to recipients of the proceeds of the Financing other than the Recipient; (ii) procure the goods, works and services to be financed out of the Subsidiary Credits in accordance with the provisions of this Agreement; (iii) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Sub-project; and (iv) at the Association’s or the Recipient’s request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association.

Sub-projects. 1. The proceeds of the Subsidiary Credits shall be relent by each Project Implementing Entity the Federation to its respective Participating Utilities and Participating Municipalities, as the case may be, under a Subsidiary Financing Agreement to be entered into between the relevant Project Implementing Entity Federation and the relevant Participating Utility and Participating Municipality, as the case may be, under terms and conditions which shall have been approved by the Association. Except as the Association shall otherwise agree, such terms and conditions shall include the following: (a) the Subsidiary Financing provided by the Project Implementing Entity Federation to the relevant Participating Utility or Participating Municipality under the Subsidiary Financing Agreement to carry out the Project shall be denominated in KM; (b) the term of the Subsidiary Financing shall be twenty (20) years, including an 8-year grace period; (c) the Project Implementing Entity Federation shall charge the relevant Participating Utility and Participating Municipality a commitment charge at a rate equal to the rate payable by the Recipient under Section 2.03 of this the Financing Agreement, on the principal amount of the Subsidiary Financing not withdrawn from time to time; (d) the Project Implementing Entity Federation shall charge the relevant Participating Utility and Participating Municipality a service charge on the principal amount of the Subsidiary Financing withdrawn and outstanding from time to time at a rate equal to two percent (2%) per annum; and the principal amount of the Subsidiary Financing shall be repayable in KM. The Project Implementing Entity Federation shall also obtain rights adequate to protect its interests and those of the Association, including the right to: : (a) suspend or terminate the right of the relevant Participating Utility or Participating Municipality to use the proceeds of the Subsidiary Credit, or obtain a refund of all or any part of the amount of the Subsidiary Credit then withdrawn, upon the failure of the relevant Participating Utility or Participating Municipality to perform any of its obligations under the Subsidiary Financing Agreement; and (b) require the relevant Participating Utility or Participating Municipality to: carry out their its Sub-project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including in accordance with the provisions of the Anti-Corruption Guidelines applicable to recipients of the proceeds of the Financing other than the Recipient; procure the goods, works and services to be financed out of the Subsidiary Credits in accordance with the provisions of this Agreement; maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Sub-project; and at the Association’s or the Recipient’s request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association.

Sub-projects. 1. The proceeds of the Subsidiary Credits shall be relent by each Project Implementing Entity to its respective Participating Utilities and Participating Municipalities, as the case may be, under a Subsidiary Financing Agreement to be entered into between the relevant Project Implementing Entity and the relevant Participating Utility and Participating Municipality, as the case may be, under terms and conditions which shall have been approved by the Association. Except as the Association shall otherwise agree, such terms and conditions shall include the following: (a) the Subsidiary Financing provided by the Project Implementing Entity to the relevant Participating Utility or Participating Municipality under the Subsidiary Financing Agreement to carry out the Project shall be denominated in KM; (b) the term of the Subsidiary Financing shall be twenty (20) years, including an 8-year grace period; (c) the Project Implementing Entity shall charge the relevant Participating Utility and Participating Municipality a commitment charge at a rate equal to the rate payable by the Recipient under Section 2.03 of this Agreement, on the principal amount of the Subsidiary Financing not withdrawn from time to time; (d) the Project Implementing Entity shall charge the relevant Participating Utility and Participating Municipality a service charge on the principal amount of the Subsidiary Financing withdrawn and outstanding from time to time at a rate equal to two percent (2%) per annum; and and (e) the principal amount of the Subsidiary Financing shall be repayable in KM. 2. The Project Implementing Entity shall also obtain rights adequate to protect its interests and those of the Association, including the right to: : (a) suspend or terminate the right of the relevant Participating Utility or Participating Municipality to use the proceeds of the Subsidiary Credit, or obtain a refund of all or any part of the amount of the Subsidiary Credit then withdrawn, upon the failure of the relevant Participating Utility or Participating Municipality to perform any of its obligations under the Subsidiary Financing Agreement; and (b) require the relevant Participating Utility or Participating Municipality to: (i) carry out its Sub-project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practice satisfactory to the Association, including in accordance with the provisions of the Anti-Corruption Guidelines applicable to recipients of the proceeds of the Financing other than the Recipient;