Common use of Other undertakings Clause in Contracts

Other undertakings. No later than thirty (30) days after the Effective Date, the Borrower, through the Ministry of Health, shall cause the PCU to have installed and operational, an accounting system and software satisfactory to the Bank. The procedures to be followed for National Competitive Bidding shall be those set forth in this Attachment to Schedule 2 of the Loan Agreement of even date hereto, between the International Bank for Reconstruction and Development, and the Republic of Serbia, provided, however that such procedure shall be subject to the provisions of Section 1 and Paragraphs 3.3 and 3.4 of the “Guidelines for Procurement of Goods, Works, and Non- Consulting Services under IBRD Loans and XXX Credits and Grants by World Bank Borrowers”(January 2011) (the “Procurement Guidelines”), and the following additional provisions: • “Open Tendering” procedures as defined in Public Procurement Law of Serbia shall apply to all contracts. • Foreign bidders shall not be precluded from bidding and no preference of any kind shall be given to national bidders in the bidding process. Government-owned enterprises in Serbia shall be permitted to bid only if they are legally and financially autonomous and operate under commercial law of the Recipient. • Procuring entities shall use sample bidding documents approved by the Bank. • In case of higher bid prices compared to the official estimate, all bids shall not be rejected without the prior concurrence of the World Bank. • A single-envelope procedure shall be used for the submission of bids. • Post-qualification shall be conducted only on the lowest evaluated bidder; no bid shall be rejected at the time of bid opening on qualification grounds. • Bidders who contract as a joint venture shall be held jointly and severally liable. • Contracts shall be awarded to the lowest evaluated, substantially responsive bidder who is determined to be qualified to perform in accordance with pre-defined and pre-disclosed evaluation criteria. • Post-bidding negotiations shall not be allowed with the lowest evaluated or any other bidders. • Contracts of long duration (more than 18 months) shall contain appropriate price adjustment provisions. • The bidding document and contract as deemed acceptable by the World Bank shall include provisions stating the World Bank’s policy to sanction firms or individuals, found to have engaged in fraud and corruption as defined in the Procurement Guidelines. • In accordance with the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the Financing shall provide that bidders, suppliers and contractors, and their subcontractors, agents, personnel, consultants, service providers, or suppliers, shall permit the World Bank to inspect all accounts, records, and other documents relating to the submission of bids and contract performance, and to have them audited by auditors appointed by the World bank. Acts intended to materially impede the exercise of the World Bank’s inspection and audit rights provided for in the Procurement Guidelines constitute an obstructive practice as defined in the Guidelines. 1. The following table sets forth the Principal Payment Dates of the Loan and the percentage of the total principal amount of the Loan payable on each Principal Payment Date (“Installment Share”). If the proceeds of the Loan have been fully withdrawn as of the first Principal Payment Date, the principal amount of the Loan repayable by the Borrower on each Principal Payment Date shall be determined by the Bank by multiplying: (a) Withdrawn Loan Balance as of the first Principal Payment Date; by (b) the Installment Share for each Principal Payment Date, such repayable amount to be adjusted, as necessary, to deduct any amounts referred to in paragraph 4 of this Schedule, to which a Currency Conversion applies. On each February 1 and August 1 Beginning August 1, 2019 through and including February 1, 2029 5.0% 2. If the proceeds of the Loan have not been fully withdrawn as of the first Principal Payment Date, the principal amount of the Loan repayable by the Borrower on each Principal Payment Date shall be determined as follows: (a) To the extent that any proceeds of the Loan have been withdrawn as of the first Principal Payment Date, the Borrower shall repay the Withdrawn Loan Balance as of such date in accordance with paragraph 1 of this Schedule. (b) Any amount withdrawn after the first Principal Payment Date shall be repaid on each Principal Payment Date falling after the date of such withdrawal in amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction, the numerator of which is the original Installment Share specified in the table in paragraph 1 of this Schedule for said Principal Payment Date (“Original Installment Share”) and the denominator of which is the sum of all remaining Original Installment Shares for Principal Payment Dates falling on or after such date, such amounts repayable to be adjusted, as necessary, to deduct any amounts referred to in paragraph 4 of this Schedule, to which a Currency Conversion applies. 3. (a) Amounts of the Loan withdrawn within two calendar months prior to any Principal Payment Date shall, for the purposes solely of calculating the principal amounts payable on any Principal Payment Date, be treated as withdrawn and outstanding on the second Principal Payment Date following the date of withdrawal and shall be repayable on each Principal Payment Date commencing with the second Principal Payment Date following the date of withdrawal.

Other undertakings. No later than thirty (30) days after 1. The Borrower undertakes to ensure the Effective Datefinancial sustainability of the Project Implementing Entity, on the basis of a set of operational and financial target indicators acceptable to the Bank and set forth in the PIE Operations Manual, which may be reviewed and adjusted from time to time, but at least annually, with the agreement of the Bank. 2. In connection with the foregoing, and notwithstanding the remedies available to the Bank in cases of performance failure, the BorrowerBorrower undertakes to prepare a time-bound action plan, through the Ministry of Health, shall cause the PCU to have installed and operational, an accounting system and software satisfactory acceptable to the BankBank to address deviations from the targets set pursuant to paragraph 1 of this Section. The procedures to be followed for National Competitive Bidding shall be those set forth in this Attachment to Schedule 2 of the Loan Agreement of even date hereto, between the International Bank for Reconstruction and Development, and the Republic of Serbia, provided, however that such procedure shall be subject to the provisions of Section 1 and Paragraphs 3.3 and 3.4 of the “Guidelines for Procurement of Goods, Works, and Non- Non-Consulting Services under IBRD Loans and XXX Credits and Grants by World Bank Borrowers”(January 2011, revised July 2014) (the “Procurement Guidelines”), and the following additional provisions: • “Open Tendering” procedures as defined in Public Procurement Law of Serbia shall apply to all contracts. • Foreign bidders shall not be precluded from bidding and no preference of any kind shall be given to national bidders in the bidding process. Government-Government- owned enterprises in Serbia shall be permitted to bid only if they are legally and financially autonomous and operate under commercial law of the Recipient. • Procuring entities shall use sample bidding documents approved by the Bank. • In case of higher bid prices compared to the official estimate, all bids shall not be rejected without the prior concurrence of the World Bank. • A single-envelope procedure shall be used for the submission of bids. • Post-qualification shall be conducted only on the lowest evaluated bidder; no bid shall be rejected at the time of bid opening on qualification grounds. • Bidders who contract as a joint venture shall be held jointly and severally liable. • Contracts shall be awarded to the lowest evaluated, substantially responsive bidder who is determined to be qualified to perform in accordance with pre-pre- defined and pre-disclosed evaluation criteria. • Post-bidding negotiations shall not be allowed with the lowest evaluated or any other bidders. • Contracts of long duration (more than 18 months) shall contain appropriate price adjustment provisions. • The bidding document and contract as deemed acceptable by the World Bank shall include provisions stating the World Bank’s policy to sanction firms or individuals, found to have engaged in fraud and corruption as defined in the Procurement Guidelines. • In accordance with the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the Financing shall provide that bidders, suppliers and contractors, and their subcontractors, agents, personnel, consultants, service providers, or suppliers, shall permit the World Bank to inspect all accounts, records, and other documents relating to the submission of bids and contract performance, and to have them audited by auditors appointed by the World bank. Acts intended to materially impede the exercise of the World Bank’s inspection and audit rights provided for in the Procurement Guidelines constitute an obstructive practice as defined in the Guidelines. 1. The following table sets forth the Principal Payment Dates of the Loan and the percentage of the total principal amount of the Loan payable on each Principal Payment Date (“Installment Share”). If the proceeds of the Loan have been fully withdrawn as of the first Principal Payment Date, the principal amount of the Loan repayable by the Borrower on each Principal Payment Date shall be determined by the Bank by multiplying: (a) Withdrawn Loan Balance as of the first Principal Payment Date; by (b) the Installment Share for each Principal Payment Date, such repayable amount to be adjusted, as necessary, to deduct any amounts referred to in paragraph 4 of this Schedule, to which a Currency Conversion applies. On each February May 1 and August November 1 Beginning August November 1, 2019 2023 through and including February November 1, 2029 5.02043 2.38% On May 1, 2044 2.42% 2. If the proceeds of the Loan have not been fully withdrawn as of the first Principal Payment Date, the principal amount of the Loan repayable by the Borrower on each Principal Payment Date shall be determined as follows: (a) To the extent that any proceeds of the Loan have been withdrawn as of the first Principal Payment Date, the Borrower shall repay the Withdrawn Loan Balance as of such date in accordance with paragraph 1 of this Schedule. (b) Any amount withdrawn after the first Principal Payment Date shall be repaid on each Principal Payment Date falling after the date of such withdrawal in amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction, the numerator of which is the original Installment Share specified in the table in paragraph 1 of this Schedule for said Principal Payment Date (“Original Installment Share”) and the denominator of which is the sum of all remaining Original Installment Shares for Principal Payment Dates falling on or after such date, such amounts repayable to be adjusted, as necessary, to deduct any amounts referred to in paragraph 4 of this Schedule, to which a Currency Conversion applies. 3. (a) Amounts of the Loan withdrawn within two calendar months prior to any Principal Payment Date shall, for the purposes solely of calculating the principal amounts payable on any Principal Payment Date, be treated as withdrawn and outstanding on the second Principal Payment Date following the date of withdrawal and shall be repayable on each Principal Payment Date commencing with the second Principal Payment Date following the date of withdrawal.

Other undertakings. No later than thirty (30) days after 1. The Borrower undertakes to ensure the Effective Datefinancial sustainability of the Project Implementing Entity, on the basis of a set of operational and financial target indicators acceptable to the Bank and set forth in the PIE Operations Manual, which may be reviewed and adjusted from time to time, but at least annually, with the agreement of the Bank. 2. In connection with the foregoing, and notwithstanding the remedies available to the Bank in cases of performance failure, the BorrowerBorrower undertakes to prepare a time-bound action plan, through the Ministry of Health, shall cause the PCU to have installed and operational, an accounting system and software satisfactory acceptable to the BankBank to address deviations from the targets set pursuant to paragraph 1 of this Section. The procedures to be followed for National Competitive Bidding shall be those set forth in this Attachment to Schedule 2 of the Loan Agreement of even date hereto, between the International Bank for Reconstruction and Development, and the Republic of Serbia, provided, however that such procedure shall be subject to the provisions of Section 1 and Paragraphs 3.3 and 3.4 of the “Guidelines for Procurement of Goods, Works, and Non- Non-Consulting Services under IBRD Loans and XXX Credits and Grants by World Bank Borrowers”(January 2011, revised July 2014) (the “Procurement Guidelines”), and the following additional provisions: • “Open Tendering” procedures as defined in Public Procurement Law of Serbia shall apply to all contracts. • Foreign bidders shall not be precluded from bidding and no preference of any kind shall be given to national bidders in the bidding process. Government-owned enterprises in Serbia shall be permitted to bid only if they are legally and financially autonomous and operate under commercial law of the Recipient. • Procuring entities shall use sample bidding documents approved by the Bank. • In case of higher bid prices compared to the official estimate, all bids shall not be rejected without the prior concurrence of the World Bank. • A single-envelope procedure shall be used for the submission of bids. • Post-qualification shall be conducted only on the lowest evaluated bidder; no bid shall be rejected at the time of bid opening on qualification grounds. • Bidders who contract as a joint venture shall be held jointly and severally liable. • Contracts shall be awarded to the lowest evaluated, substantially responsive bidder who is determined to be qualified to perform in accordance with pre-defined and pre-disclosed evaluation criteria. • Post-bidding negotiations shall not be allowed with the lowest evaluated or any other bidders. • Contracts of long duration (more than 18 months) shall contain appropriate price adjustment provisions. • The bidding document and contract as deemed acceptable by the World Bank shall include provisions stating the World Bank’s policy to sanction firms or individuals, found to have engaged in fraud and corruption as defined in the Procurement Guidelines. • In accordance with the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the Financing shall provide that bidders, suppliers and contractors, and their subcontractors, agents, personnel, consultants, service providers, or suppliers, shall permit the World Bank to inspect all accounts, records, and other documents relating to the submission of bids and contract performance, and to have them audited by auditors appointed by the World bank. Acts intended to materially impede the exercise of the World Bank’s inspection and audit rights provided for in the Procurement Guidelines constitute an obstructive practice as defined in the Guidelines. 1. The following table sets forth the Principal Payment Dates of the Loan and the percentage of the total principal amount of the Loan payable on each Principal Payment Date (“Installment Share”). If the proceeds of the Loan have been fully withdrawn as of the first Principal Payment Date, the principal amount of the Loan repayable by the Borrower on each Principal Payment Date shall be determined by the Bank by multiplying: (a) Withdrawn Loan Balance as of the first Principal Payment Date; by (b) the Installment Share for each Principal Payment Date, such repayable amount to be adjusted, as necessary, to deduct any amounts referred to in paragraph 4 of this Schedule, to which a Currency Conversion applies. On each February May 1 and August November 1 Beginning August November 1, 2019 2023 through and including February November 1, 2029 5.02043 2.38% On May 1, 2044 2.42% 2. If the proceeds of the Loan have not been fully withdrawn as of the first Principal Payment Date, the principal amount of the Loan repayable by the Borrower on each Principal Payment Date shall be determined as follows: (a) To the extent that any proceeds of the Loan have been withdrawn as of the first Principal Payment Date, the Borrower shall repay the Withdrawn Loan Balance as of such date in accordance with paragraph 1 of this Schedule. (b) Any amount withdrawn after the first Principal Payment Date shall be repaid on each Principal Payment Date falling after the date of such withdrawal in amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction, the numerator of which is the original Installment Share specified in the table in paragraph 1 of this Schedule for said Principal Payment Date (“Original Installment Share”) and the denominator of which is the sum of all remaining Original Installment Shares for Principal Payment Dates falling on or after such date, such amounts repayable to be adjusted, as necessary, to deduct any amounts referred to in paragraph 4 of this Schedule, to which a Currency Conversion applies. 3. (a) Amounts of the Loan withdrawn within two calendar months prior to any Principal Payment Date shall, for the purposes solely of calculating the principal amounts payable on any Principal Payment Date, be treated as withdrawn and outstanding on the second Principal Payment Date following the date of withdrawal and shall be repayable on each Principal Payment Date commencing with the second Principal Payment Date following the date of withdrawal.

Other undertakings. No later than thirty (30) days after 1. The Borrower undertakes to ensure the Effective Datefinancial sustainability of the Project Implementing Entity, on the basis of a set of operational and financial target indicators acceptable to the Bank and set forth in the PIE Operations Manual, which may be reviewed and adjusted from time to time, but at least annually, with the agreement of the Bank. 2. In connection with the foregoing, and notwithstanding the remedies available to the Bank in cases of performance failure, the BorrowerBorrower undertakes to prepare a time-bound action plan, through the Ministry of Health, shall cause the PCU to have installed and operational, an accounting system and software satisfactory acceptable to the BankBank to address deviations from the targets set pursuant to paragraph 1 of this Section. The procedures to be followed for National Competitive Bidding shall be those set forth in this Attachment to Schedule 2 of the Loan Agreement of even date hereto, between the International Bank for Reconstruction and Development, and the Republic of Serbia, provided, however that such procedure shall be subject to the provisions of Section 1 and Paragraphs 3.3 and 3.4 of the “Guidelines for Procurement of Goods, Works, and Non- Non-Consulting Services under IBRD Loans and XXX Credits and Grants by World Bank Borrowers”(January 2011, revised July 2014) (the “Procurement Guidelines”), and the following additional provisions: • “Open Tendering” procedures as defined in Public Procurement Law of Serbia shall apply to all contracts. • Foreign bidders shall not be precluded from bidding and no preference of any kind shall be given to national bidders in the bidding process. Government-Government- owned enterprises in Serbia shall be permitted to bid only if they are legally and financially autonomous and operate under commercial law of the Recipient. • Procuring entities shall use sample bidding documents approved by the Bank. • In case of higher bid prices compared to the official estimate, all bids shall not be rejected without the prior concurrence of the World Bank. • A single-envelope procedure shall be used for the submission of bids. • Post-qualification shall be conducted only on the lowest evaluated bidder; no bid shall be rejected at the time of bid opening on qualification grounds. • Bidders who contract as a joint venture shall be held jointly and severally liable. • Contracts shall be awarded to the lowest evaluated, substantially responsive bidder who is determined to be qualified to perform in accordance with pre-pre- defined and pre-disclosed evaluation criteria. • Post-bidding negotiations shall not be allowed with the lowest evaluated or any other bidders. • Contracts of long duration (more than 18 months) shall contain appropriate price adjustment provisions. • The bidding document and contract as deemed acceptable by the World Bank shall include provisions stating the World Bank’s policy to sanction firms or individuals, found to have engaged in fraud and corruption as defined in the Procurement Guidelines. • In accordance with the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the Financing shall provide that bidders, suppliers and contractors, and their subcontractors, agents, personnel, consultants, service providers, or suppliers, shall permit the World Bank to inspect all accounts, records, and other documents relating to the submission of bids and contract performance, and to have them audited by auditors appointed by the World bank. Acts intended to materially impede the exercise of the World Bank’s inspection and audit rights provided for in the Procurement Guidelines constitute an obstructive practice as defined in the Guidelines. 1. The following table sets forth the Principal Payment Dates of the Loan and the percentage of the total principal amount of the Loan payable on each Principal Payment Date (“Installment Share”). If the proceeds of the Loan have been fully withdrawn as of the first Principal Payment Date, the principal amount of the Loan repayable by the Borrower on each Principal Payment Date shall be determined by the Bank by multiplying: (a) Withdrawn Loan Balance as of the first Principal Payment Date; by (b) the Installment Share for each Principal Payment Date, such repayable amount to be adjusted, as necessary, to deduct any amounts referred to in paragraph 4 of this Schedule, to which a Currency Conversion applies. On each February May 1 and August November 1 Beginning August November 1, 2019 2023 through and including February November 1, 2029 5.02043 2.38% On May 1, 2044 2.42% 2. If the proceeds of the Loan have not been fully withdrawn as of the first Principal Payment Date, the principal amount of the Loan repayable by the Borrower on each Principal Payment Date shall be determined as follows: (a) To the extent that any proceeds of the Loan have been withdrawn as of the first Principal Payment Date, the Borrower shall repay the Withdrawn Loan Balance as of such date in accordance with paragraph 1 of this Schedule. (b) Any amount withdrawn after the first Principal Payment Date shall be repaid on each Principal Payment Date falling after the date of such withdrawal in amounts determined by the Bank by multiplying the amount of each such withdrawal by a fraction, the numerator of which is the original Installment Share specified in the table in paragraph 1 of this Schedule for said Principal Payment Date (“Original Installment Share”) and the denominator of which is the sum of all remaining Original Installment Shares for Principal Payment Dates falling on or after such date, such amounts repayable to be adjusted, as necessary, to deduct any amounts referred to in paragraph 4 of this Schedule, to which a Currency Conversion applies. 3. (a) Amounts of the Loan withdrawn within two calendar months prior to any Principal Payment Date shall, for the purposes solely of calculating the principal amounts payable on any Principal Payment Date, be treated as withdrawn and outstanding on the second Principal Payment Date following the date of withdrawal and shall be repayable on each Principal Payment Date commencing with the second Principal Payment Date following the date of withdrawal.