Execution of the Project (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall: (i) carry out, and cause to be carried out, Part A of the Project through the Participating Banks; (ii) carry out, and cause to be carried out, Part B of the Project through Bank of Mongolia; and (iii) carry out Parts C and D of the Project through its Ministry of Finance and Economy; all with due diligence and efficiency and in conformity with appropriate administrative, management, financial and banking standards and practices, and shall provide, and cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project.
(b) For purposes of paragraph (a)(i) of this Section and Part A of the Project, the Borrower shall make available to each Participating Bank part of the proceeds of the Credit allocated from time to time to Categories (1)(b), (2)(b) and (3)(b) set forth in the table in Schedule 1 to this Agreement, under a subsidiary loan agreement acceptable to the Association which will include the following principal terms:
(i) The principal amount to be made available shall be the equivalent in Dollars (determined on the date, or respective dates, of withdrawal from the Credit Account or payment out of the MOFE Special Account, as the case may be) of the value of the currency or currencies so withdrawn or paid out on account of the cost of goods and services required for said Participating Bank’s Respective Part of the Project and to be financed out of the proceeds of the Credit.
(ii) The principal amount so made available shall be recovered in Dollars, over a period of twenty (20) years, inclusive of a grace period of five (5) years.
(iii) Interest shall be charged on such principal amount withdrawn and outstanding from time to time at a rate of three percent (3%) per annum.
(c) Without limitation upon the provisions of paragraphs (a) and (b) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out, and cause to be carried out, the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement.
Section 3.02. Except as the Association shall otherwise agree, procurement of the goods and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to this Agreement.
Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall:
(a) prepare, on the basis of guidelines acceptable to the Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the continued achievement of the objectives of the Project; and
(b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan.
