Loan Agreement

НАЦРТ ЗАКОНА

О ПОТВРЂИВАЊУ СПОРАЗУМА О ЗАЈМУ ЗА ПРОЈЕКАТ РЕХАБИЛИТАЦИЈЕ ПУТЕВА И УНАПРЕЂЕЊА БЕЗБЕДНОСТИ САОБРАЋАЈА

ИЗМЕЂУ РЕПУБЛИКЕ СРБИЈЕ И МЕЂУНАРОДНЕ БАНКЕ ЗА

ОБНОВУ И РАЗВОЈ

Члан 1.

Потврђује се Споразум о зајму за Пројекат рехабилитације путева и унапређења безбедности саобраћаја у износу до 73.800.000 евра, између Републике Србије и Међународне банке за обнову и развој, закључен 27. новембра 2013. године, у Београду, у оригиналу на енглеском језику.

Члан 2.

Текст Споразума о зајму за Пројекат рехабилитације путева и унапређења безбедности саобраћаја, између Републике Србије и Међународне банке за обнову и развој, у оригиналу на енглеском језику и у преводу на српски језик гласи:

LOAN NUMBER 8255-YF

Loan Agreement

(Serbia Road Rehabilitation and Safety Project) between

REPUBLIC OF SERBIA

and

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Dated November 27, 2013

LOAN AGREEMENT

Agreement dated November 27, 2013, between REPUBLIC OF SERBIA (“Borrower”) and INTERNATIONAL BANK FOR RECONSTRUCTION AND

DEVELOPMENT (“Bank”). The Borrower and the Bank hereby agree as follows:

ARTICLE I — GENERAL CONDITIONS; DEFINITIONS

1.01. The General Conditions (as defined in the Appendix to this Agreement) constitute an integral part of this Agreement.

1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the General Conditions or in the Appendix to this Agreement.

ARTICLE II — LOAN

2.01. The Bank agrees to lend to the Borrower, on the terms and conditions set forth or referred to in this Agreement, the amount of seventy three million eight hundred thousand Euros (EUR 73,800,000), as such amount may be converted from time to time through a Currency Conversion in accordance with the provisions of Section 2.07 of this Agreement (“Loan”), to assist in financing the project described in Schedule 1 to this Agreement (“Pro- ject”).

2.02. The Borrower may withdraw the proceeds of the Loan in accordance with Section IV of Schedule 2 to this Agreement.

2.03. The Front-end Fee payable by the Borrower shall be equal to one quarter of one percent (0.25%) of the Loan amount.

2.04. The interest payable by the Borrower for each Interest Period shall be at a rate equal to the Reference Rate for the Loan Currency plus the Fixed Spread; provided, that upon a Conversion of all or any portion of the prin- cipal amount of the Loan, the interest payable by the Borrower during the Conversion Period on such amount shall be determined in accordance with the relevant provisions of Article IV of the General Conditions. Notwith- standing the foregoing, if any amount of the Withdrawn Loan Balance re- mains unpaid when due and such non-payment continues for a period of thirty days, then the interest payable by the Borrower shall instead be cal- culated as provided in Section 3.02 (e) of the General Conditions.

2.05. The Payment Dates are June 15 and December 15 in each year.

2.06. The principal amount of the Loan shall be repaid in accordance with the amortization schedule set forth in Schedule 3 to this Agreement.

2.07. (a) The Borrower may at any time request any of the following Con- versions of the terms of the Loan in order to facilitate prudent debt management: (i) a change of the Loan Currency of all or any por- tion of the principal amount of the Loan, withdrawn or unwith- drawn, to an Approved Currency; (ii) a change of the interest rate basis applicable to: (A) all or any portion of the principal amount of the Loan withdrawn and outstanding from a Variable Rate to a Fixed Rate, or vice versa; or (B) all or any portion of the principal amount of the Loan withdrawn and outstanding from a Variable Rate based on a Reference Rate and the Variable Spread to a Vari- able Rate based on a Fixed Reference Rate and the Variable Spread, or vice versa; or (C) all of the principal amount of the Loan withdrawn and outstanding from a Variable Rate based on a Variable Spread to a Variable Rate based on a Fixed Spread; and

(iii) the setting of limits on the Variable Rate or the Reference Rate applicable to all or any portion of the principal amount of the Loan withdrawn and outstanding by the establishment of an Interest Rate Cap or Interest Rate Collar on the Variable Rate or the Reference Rate.

(b) Any conversion requested pursuant to paragraph (a) of this Section that is accepted by the Bank shall be considered a “Conversion”, as defined in the General Conditions, and shall be effected in accord- ance with the provisions of Article IV of the General Conditions and of the Conversion Guidelines.

ARTICLE III — PROJECT

3.01. The Borrower declares its commitment to the objectives of the Project. To this end, the Borrower shall cause the Project to be carried out by the Pro- ject Implementing Entity in accordance with the provisions of Article V of the General Conditions and the Project Agreement.

3.02. Without limitation upon the provisions of Section 3.01 of this Agreement, and except as the Borrower and the Bank shall otherwise agree, the Bor- rower shall ensure that the Project is carried out in accordance with the provisions of Schedule 2 to this Agreement.

ARTICLE IV — REMEDIES OF THE BANK

4.01. The Additional Event of Suspension consists of, namely, that the Project Implementing Entity’s Legislation has been amended, suspended, abrogat- ed, repealed or waived so as to affect materially and adversely impact the ability of the Project Implementing Entity to perform any of its obligations under the Project Agreement.

4.02. The Additional Event of Acceleration consists of, namely, that the event specified in Section 4.01 of this Agreement occurs and is continuing for a period of sixty (60) days after notice of the event has been given by the Bank to the Borrower.

ARTICLE V — EFFECTIVENESS; TERMINATION

5.01. The Additional Conditions of Effectiveness consist of the following:

(a) The Subsidiary Agreement has been executed on behalf of the Bor- rower and the Project Implementing Entity;

(b) The Co-financing Agreement has been executed and delivered and all conditions precedent to its effectiveness or to the right of the Borrower to make withdrawals under it (other than the effective- ness of this Agreement) have been fulfilled;

(c) The Project Operations Manual, satisfactory to the Bank, has been adopted by the Project Implementing Entity; and

(d) The Project accounting system satisfactory to the Bank is in place, with adequate built-in controls, and capable of tracking Project re- sources and expenditures and generating financial reports, includ- ing interim financial reports (IFRs).

5.02. The Additional Legal Matters consist of the following:

(a) The Subsidiary Agreement has been duly authorized or ratified by the Borrower and the Project Implementing Entity and is legally binding upon the Borrower and the Project Implementing Entity in accordance with its terms; and

(b) The Co-financing Agreement has been duly authorized or ratified by the Borrower and the Co-financier and is legally bind- ing upon the Borrower and the Co-financier in accordance with its terms.

5.03. The Effectiveness Deadline is the date one hundred and eighty (180) days after the date of this Agreement.

ARTICLE VI — REPRESENTATIVE; ADDRESSES

6.01. The Borrower’s Representative is its Minister of Finance.

6.02. The Borrower’s Address is: Ministry of Finance

20 Kneza Milosa St. 11000 Belgrade Republic of Serbia

Facsimile:

(000-00) 0000-000

6.03. The Bank’s Address is:

International Bank for Reconstruction and Development 0000 X Xxxxxx, X.X.

Washington, D.C. 20433 United States of America

Cable address:	Telex:	Facsimile:
INTBAFRAD Washington, D.C.	248423(MCI) or 64145(MCI)	0-000-000-0000

AGREED at Belgrade, Republic of Serbia, as of the day and year first above written.

REPUBLIC OF SERBIA

By

Authorized Representative Name:      

Title:     

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

By

Authorized Representative Name:             

Title:          

SCHEDULE 1

Project Description

The objective of the Project is to improve the condition and safety of the National Road Network for road users by supporting the Borrower in the imple- mentation of the first phase of the National Road Network Rehabilitation Pro- gram.

The Project consists of the following parts: Part 1: Road Rehabilitation and Safety Investments

Provision of goods, works, consultants’ services and non-consulting ser- vices for carrying out rehabilitation and safety works, including:

(i) Periodic maintenance and rehabilitation works;

(ii) Partial pavement widening;

(iii) Traffic signalization improvement;

(iv) Structural renewal;

(v) Setting up ancillary road connections and drainage systems pursu- ant to criteria set forth in the Project Operational Manual; and

(vi) Incorporation of road safety measures as recommended by road safety audits, pursuant to criteria set forth in the Project Operation- al Manual.

Part 2: Institutional Strengthening

Provision of goods, consultants’ services, non-consulting services for:

(a) Strengthening safety of roads within the National Road Network Program, through:

(i) Carrying out road safety inspections;

(ii) Implementation of low cost safety measures, including traffic calming measures, and road furniture within the Na- tional Road Network;

(iii) Carrying out road safety awareness campaigns;

(iv) Supporting the development and implementation of strengthened enforcement of road safety regulations; and

(v) Carrying out training and accreditation of personnel on safety audits and inspections.

(b) Strengthening road rehabilitation and planning processes through:

(i) Carrying out a road conditions survey of the National Road Network;

(ii) Conducting an update of the National Roads database maintained by the Project Implementing Entity;

(iii) Establishment of a practice of developing multi-year Na- tional Roads maintenance plans that prioritize activities based on economic, social, and regional criteria set forth in the Project Operations Manual; and

(iv) Supporting the implementation of updated design standards for National Roads maintenance and rehabilitation.

(c) Strengthening National Roads maintenance management through:

(i) Supporting the development of a strategic plan for the adoption of a tendering process of performance-based maintenance contracts;

(ii) Supporting the preparation of model bidding documents for performance-based maintenance contracts;

(iii) Provision of training to Project Implementing Entity staff and prospective contractors on performance-based mainte- nance contracts; and

(iv) Provision of implementation support of performance-based maintenance contracts.

Part 3: Project Detailed Design, Project Supervision, Management, Monitoring and Audits

(a) Support the design and Project supervision activities for rehabilita- tion and safety works to be carried out on the National Road Nework.

(b) Carrying out activities for Project management support and capaci- ty building of the Project Implementing Entity in areas such as procurement, financial management, environmental and social safeguards, and annual program planning.

(c) Carrying out monitoring activities, and Project Audits, including:

(i) The Independent Performance Audit; and

(ii) The Project financial audit.

SCHEDULE 2

Project Execution Section I. Implementation Arrangements

A. Institutional Arrangements

1. The Borrower shall maintain the Project Implementing Entity with the necessary resources to carry out the Project, and with a composition and terms of reference satisfactory to the Bank.

2. The Borrower shall cause the Project Implementing Entity to carry out the Project in accordance with the Project Operations Manual, and shall not, and shall cause the Project Implementing Entity not to, amend or waive any provision thereto without the Bank’s prior written approval. In case of any conflict between the terms of the Operational Manual and the Agree- ment, the Agreement shall prevail.

3. The Borrower shall maintain a Steering Committee, which shall include representatives of the Borrower’s Ministry of Finance, Ministry of Transport, Ministry of Interior, Ministry of Regional Development and Local Self-Governance, as well as representatives of the Project Imple- menting Entity, and shall have oversight functions on overall Project Im- plementation. The Borrower shall cause the Project Implementing Entity to coordinate the meetings of the Steering Committee on a periodic basis.

4. The Borrower shall cause the Project Implementing Entity to maintain the Project Implementation Team, in charge of the day-to-day implementation of the Project, including financial management, procurement, environmen- tal, and social and technical aspects of the Project. The Project Implemen- tation Team shall be headed by the Project Implementing Entity’s Director for Investments, reporting to the Deputy Director of the Project Imple- menting Entity, and shall have the following functions: (a) Project direc- tion; (b) Project coordination; (c) Project procurement; (d) Project finan- cial management; (e) Environmental and Social Safeguards; (f) National Road safety; and (g) National Road rehabilitation. The Project Implemen- tation Team shall also be comprised of members of the National Road Traffic Safety Coordination Body (NRTSC) from the following working groups: (a) enforcement, and (b) safety of school children, as well as rep- resentatives from the Ministry of Transport and the Road Safety Agency.

5. The Borrower shall cause the National Road Traffic Safety Coordina- tion Body (NRTSC) to coordinate National Road safety interventions, in a manner agreed upon between the Project Implementing Entity and the Bank, pursuant to criteria established in the Project Operations Manual.

B. Subsidiary Agreement

1. To facilitate the carrying out of the Project by the Project Implementing Entity, the Borrower shall make the proceeds of the Loan available to the Project Implementing Entity under a subsidiary agreement between the Borrower and the Project Implementing Entity, under terms and conditions approved by the Bank (“Subsidiary Agreement”).

2. The Borrower shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan. Except as the Bank shall other- wise agree, the Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement or any of its provisions.

C. Anti-Corruption

The Borrower shall ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines.

D. Safeguards

1. The Borrower shall ensure that the Project is carried out in accordance with the provisions of the EMF, EMPs, RPF, and RAPs, as applicable. The Borrower shall not assign, amend, abrogate, or waive the EMF, EMPs, RPF, or RAPs, or any provision thereof, without prior approval of the Bank.

2. For purposes of Part 1 of the Project, the Borrower shall: (a) prior to the issuance of the bidding documents for the works contract for each segment of road, cause the Project Implementing Entity to prepare and submit to the Bank for its approval: (i) the proposed design and site for said works, and the related site-specific EMP in form and substance satisfactory to the Bank; and (ii) the draft contract for said works, ensuring that the provi- sions of the site-specific EMP are adequately included in said contract; (b) prior to the signing of a contract for works which require acquisition of land and/or resettlement, prepare and submit to the Bank for its approval the site-specific land acquisition plans and/or RAP(s) in form and sub- stance satisfactory to the Bank; and (c) prior to the commencement of the works, ensure that the owners and users of land where said works are to be

implemented are fully compen- sated in accordance with the provisions of the RAP(s).

3. The Borrower shall cause the Project Implementing Entity to: (a) ensure that all activities undertaken for purposes of carrying out the Project, fi- nanced by both the Bank and the Co-financier, comply with environmental standards and guidelines set forth in the EMF; (b) ensure that the selection of any road section under Part 1 of the Project is done in accordance with the EMF; (c) ensure the complete implementation of the EMP(s) in a manner satisfactory to the Bank, including all necessary measures to min- imize and to mitigate any adverse environmental impacts caused by the implementation of the Project; and (d) to maintain an Environmental and Social Safeguards Specialist within its Project Implementation Team, with such responsibilities and functions acceptable to the Bank as shall enable the Project Implementing Entity to manage, coordinate, and monitor the implementation of the EMPs.

4. The Borrower shall: (a) ensure that the Project Implementing Entity pre- pares RAPs according to the RPF; (b) maintain or cause to be maintained by the Project Implementing Entity, and publicize, or cause to be publi- cized by the Project Implementing Entity, the availability of grievance procedures to hear and determine fairly and in good faith, in accordance with the RPF, all complaints raised in relation with the implementation of the RAPs by those being resettled (the such term shall be defined in the RAP) or by those host communities who are adversely affected by the im- plementation of the RPF, and take all measures necessary to implement the determinations made under such grievance procedures.

Section II. Project Monitoring Reporting and Evaluation

A. Project Reports

1. The Borrower shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 5.08 of the General Conditions and on the basis of indicators acceptable to the Bank. Each Project Report shall cover the period of one calendar semes- ter, and shall be furnished to the Bank not later than forty-five days after the end of the period covered by such report.

2. Without limitation to the provisions of paragraph A.1 of this Section, the Borrower shall cause the Project Implementing Entity to include in each Project Report, a reference to the Borrower’s level of compliance with the DLIs.

B. Financial Management, Financial Reports and Audits

1. The Borrower shall maintain or cause the Project Implementing Entity to maintain a financial management system in accordance with the provi- sions of Section 5.09 of the General Conditions.

2. Without limitation on the provisions of Part A of this Section, the Borrow- er shall prepare and furnish to the Bank as part of the Project Report not later than forty five days after the end of each calendar semester, interim unaudited financial reports for the Project covering the semester, in form and substance satisfactory to the Bank.

3. The Borrower shall have its Financial Statements audited in accordance with the provisions of Section 5.09 (b) of the General Conditions. Each audit of the Financial Statements shall cover the period of one fiscal year of the Borrower. The audited Financial Statements for each such period shall be furnished to the Bank not later than six months after the end of such period.

C. Independent Performance Audit

1. The Borrower shall cause the Project Implementing Entity to ensure inde- pendent monitoring and evaluation of the Project, through the carrying out of an Independent Performance Audit certifying the extent to which: (a) Eligible Expenditures under the Reporting Periods covered by the audit have been incurred in compliance with the safeguards and procurement ar- rangements provided for in this Agreement and under the Operations Manual; (b) road works have been performed in accordance with the rele- vant civil work contracts; (c) the Disbursement-Linked Indicators for the Reporting Periods covered by the audit have been met; and (d) the Addi- tional Instructions have been adhered to by the Borrower.

2. No later than forty-five days after the end of the second Reporting Period of the calendar year, the Borrower shall cause the Project Implementing Entity to furnish to the Bank a complete Independent Performance Audit Report including all the findings and results from the Independent Perfor- mance Audit, as well as the certifications from the Project Audit Consult- ant.

3. No later than three months prior to the end of the second Reporting Period of each calendar year, the Borrower shall cause the Project Implementing Entity to engage, under terms of reference and with qualifications satisfac-

tory to the Bank, a Project Audit Consultant, for purposes of carrying out the Independent Performance Audit.

Section III. Procurement

A. General

1. Goods, Works and Non-consulting Services. All goods, works and non- consulting services required for the Project and to be financed out of the proceeds of the Loan shall be procured in accordance with the require- ments set forth or referred to in Section I of the Procurement Guidelines, and with the provisions of this Section.

2. Consultants’ Services. All consultants’ services required for the Project and to be financed out of the proceeds of the Loan shall be procured in ac- cordance with the requirements set forth or referred to in Sections I and IV of the Consultant Guidelines and with the provisions of this Section.

3. Definitions. The capitalized terms used below in this Section to describe particular procurement methods or methods of review by the Bank of par- ticular contracts refer to the corresponding method described in Sections II and III of the Procurement Guidelines, or Sections II, III, IV and V of the Consultant Guidelines, as the case may be.

B. Particular Methods of Procurement of Goods, Works and Non- consulting Services

1. International Competitive Bidding. Except as otherwise provided in paragraph 2 below, goods, works and non-consulting services shall be procured under contracts awarded on the basis of International Competi- tive Bidding.

2. Other Methods of Procurement of Goods, Works and Non-consulting Services. The following methods, other than National Competitive Bid- ding, may be used for procurement of goods, works and non-consulting services for those contracts specified in the Procurement Plan: (a) Interna- tional Competitive Bidding, subject to the additional provisions set out in the Attachment to this Schedule 2; (b) Shopping; and (c) Direct Contract- ing.

C. Particular Methods of Procurement of Consultants’ Services

1. Quality- and Cost-based Selec- tion. Except as otherwise provided in paragraph 2 below, consultants’ services shall be procured under contracts awarded on the basis of Quality and Cost-based Selection.

2. Other Methods of Procurement of Consultants’ Services. The follow- ing methods, other than Quality and Cost-based Selection, may be used for procurement of consultants’ services for those contracts which are speci- fied in the Procurement Plan: (a) Quality-based Selection; (b) Selection under a Fixed Budget; (c) Least Cost Selection; (d) Selection based on Consultants’ Qualifications; (e) Single-source Selection of consulting firms; (f) Procedures set forth in paragraphs 5.2 and 5.3 of the Consultant Guidelines for the Selection of Individual Consultants; and (g) Single- source procedures for the Selection of Individual Consultants.

D. Review by the Bank of Procurement Decisions

The Procurement Plan shall set forth those contracts which shall be subject to the Bank’s Prior Review. All other contracts shall be subject to Post Review by the Bank.

Section IV. Withdrawal of Loan Proceeds

A. General

1. The Borrower may withdraw the proceeds of the Loan in accordance with the provisions of Article II of the General Conditions, this Section, and such additional instructions as the Bank shall specify by notice to the Bor- rower (including the “World Bank Disbursement Guidelines for Projects” dated May 2006, as revised from time to time by the Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eli- gible Expenditures as set forth in the table in paragraph 2 below.

2. The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Loan (“Category”), the alloca- tion of the amounts of the Loan to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category.

Category	Amount of the Loan Allocated (expressed in EUR)	Percentage of Expenditures to be financed (exclusive of Taxes)
(1) Goods, works, non-consulting ser- vices, and consultants’ services for Part 1 and Part 2 of the Project	68,760,500	100% up to 34.38 million EUR under DLI1 as set out in Schedule 4 to this Agreement. 100% up to 17.19 million EUR under DLI2 as set out in Schedule 4 to this Agreement. 100% up to 17.19 million EUR under DLI3 as set out in Schedule 4 to this Agreement.
(2) Goods, consult- ants’ services, Train- ing, Incremental Op- erating Costs for Part 3 of the Project, and audit	4,855,000	100%
(3) Front-end Fee	184,500	Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Condi- tions
TOTAL AMOUNT	73,800,000

For purposes of this table:

(a) “Incremental Operating Costs” means the reasonable expenditures in- curred for the implementation of the Project by the Project Implementing Entity on account of communications, translations, office supplies, adver- tisements, photocopying, mail, and travel expenses. Such costs will be fi- nanced out of the Loan proceeds pursuant to an annual budget approved by the Bank, and according to the Project Implementing Entity administra- tive procedures acceptable to the Bank. Incremental Operating Costs will not include salaries of officials of the Borrower’s civil service or of staff of the Project Implementing Entity.

(b) “Training” means Project related training and workshops to be carried out according to training plans to be prepared by the Project Implementing Entity and agreed to by the Bank, including study tours, training courses,

seminars, workshops and other training activities, not included under goods or service providers’ contracts, including costs of training materials, space and equipment rental, local travel, per diem costs of trainees and trainers’ fees, and interpretation and translation services.

(c) “exclusive of Taxes” means, in connection with Section 2.06 of the Gen- eral Conditions, that the Loan proceeds shall not be used for financing of Taxes levied by, or in the territory of the Borrower on or in respect of Eli- gible Expenditures, or on their importation, manufacture, procurement or supply.

B. Withdrawal Conditions; Withdrawal Period

1. Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made for payments made prior to the date of this Agreement.

2. Under Category (1), withdrawals from the Loan Account shall be made on a semi-annual basis, upon submission by the Borrower of reports specified below, each in form and substance acceptable to the Bank.

(a) for the first withdrawal, the Borrower shall submit to the Bank a cash flow forecast for the first two Reporting Periods covering the Eligible Expenditures for said first two Reporting Periods;

(b) for all subsequent withdrawals to be made for the first semester of the respective calendar year, the Borrower shall submit pursuant to the Additional Instructions: (i) an IFR providing evidence, satisfac- tory to the Bank, of Eligible Expenditures for the Reporting Period corresponding to the first semester of the calendar year; (ii) if ap- plicable, an adjustment of the cash flow forecast for the Reporting Period corresponding to the second semester of the calendar year; and (iii) a cash flow forecast for the Reporting Period correspond- ing to the first semester of the calendar year following the respec- tive withdrawal; and

(c) for all subsequent withdrawals to be made for the second semester of a respective calendar year, the Borrower shall submit, pursuant to the Additional Instructions: (i) an IFR providing evidence, satis- factory to the Bank, of Eligible Expenditures for the Reporting Pe- riod corresponding to the second semester of the calendar year; (ii) the Independent Performance Audit for the two Reporting Periods of the respective calendar year, which shall include: (1) a confir- mation of compliance with DLIs for said Reporting Periods, as set

forth in Schedule 4 to this Agreement; and (2) documentation, satisfactory to the Bank, of the Eligible Expenditures in the IFRs for the first and second Reporting Periods of the respective calen- dar year; (iii) if applicable, an adjustment of the cash flow forecast for the withdrawal corresponding to the first semester of the next calendar year; and (iv) a cash flow forecast for the second semester of the next calendar year.

3. In connection with the forgoing:

(a) if the Bank shall determine, based on the evidence referred to in Section IV. B.2(c) above, as applicable, that:

(i) the DLIs have only been partially met, the withdrawn amount of the Loan shall be reduced in proportion to the respective degree of DLI achievement, by an amount calcu- lated in accordance with a formula, agreed between the Borrower and the Bank and provided for under the Addi- tional Instructions, and any balance of the withdrawal re- quested for the Reporting Periods of the calendar year shall remain available for the subsequent withdrawal; or

(ii) there has been no achievement of DLIs, the total amount of the respective withdrawal request shall remain available for the subsequent withdrawal. Such amount may be dis- bursed only if the DLIs which were not previously achieved shall subsequently be achieved.

(b) the Bank may, after consultation with, and by notice to, the Bor- rower, cancel any amount of the Loan, in whole or in part, withheld pursuant to paragraph B.3(a) above under Category (1), or may re- allocate such amount so withheld, in whole or in part, to Category

(1) or (2), as applicable.

(c) the Bank may, after due consideration of withdrawals requested in connection with Section B.2(c) above, and by notice to the Bor- rower, adjust from time to time the amounts and figures set forth in Schedule 4 of this Agreement for specific DLIs.

4. Notwithstanding the provisions of paragraphs 2 and 3 above, the Bank shall not be required to make further deposits into the Designated Ac- count:

(a) if the Bank, at any time, is not satisfied that the IFRs and other reports referred to in paragraph 2 adequately provide the infor- mation as specified in the Additional Instructions and Project Op- erational Manual;

(b) if the Borrower shall have failed to furnish to the Bank, within the period of time specified in Section II.B of this Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section; and

(c) if, at any time, the Bank shall have notified the Borrower of its in- tention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 7.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Designated Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination.

5. (a) If the Bank determines at any time that any payment out of the Designated Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence fur- nished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may re- quest, or deposit into the Designated Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Designated Account shall be made un- til the Borrower has provided such evidence or made such deposit or refund, as the case may be.

(b) Refunds to the Bank made pursuant to sub-paragraph (a) of this paragraph 5 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement.

6. The Closing Date is October 31, 2018.

Attachment to

SCHEDULE 2

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 Pro- curement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers”(January 2011) (the “Pro- curement 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. Gov- ernment 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 respon- sive 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 evaluat- ed or any other bidders;

• Contracts of long duration (more than 18 months) shall contain appropri- ate 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 de- fined in the Procurement Guidelines; and

• 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 au- dited by auditors appointed by the World bank. Acts intended to materially impede the exercise of the World Bank’s inspection and audit rights pro- vided for in the Procurement Guidelines constitute an obstructive practice as defined in the Guidelines.

SCHEDULE 3

Amortization Schedule

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 prin- cipal amount of the Loan repayable by the Borrower on each Principal Payment Date shall be determined by the Bank by multiplying: (a) With- drawn Loan Balance as of the first Principal Payment Date; by (b) the In- stallment Share for each Principal Payment Date, such repayable amount to be adjusted, as necessary, to deduct any amounts referred to in para- graph 4 of this Schedule, to which a Currency Conversion applies.

Principal Payment Date	Installment Share (Expressed as a Percentage)
On each June 15 and December 15 Beginning June 15, 2018 through December 15, 2027	5%

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 para- graph 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 multiply- ing the amount of each such withdrawal by a fraction, the numera- tor 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 repaya- ble to be adjusted, as necessary, to deduct any amounts referred to

in paragraph 4 of this Schedule, to which a Currency Conver- sion applies.

3. (a) Amounts of the Loan withdrawn within two calendar months prior to any Principal Payment Date shall, for the purposes solely of cal- culating the principal amounts payable on any Principal Payment Date, be treated as withdrawn and outstanding on the second Prin- cipal 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.

(b) Notwithstanding the provisions of sub-paragraph (a) of this para- graph, if at any time the Bank adopts a due date billing system un- der which invoices are issued on or after the respective Principal Payment Date, the provisions of such sub-paragraph shall no long- er apply to any withdrawals made after the adoption of such billing system.

4. Notwithstanding the provisions of paragraphs 1 and 2 of this Schedule, upon a Currency Conversion of all or any portion of the Withdrawn Loan Balance to an Approved Currency, the amount so converted in the Ap- proved Currency that is repayable on any Principal Payment Date occur- ring during the Conversion Period, shall be determined by the Bank by multiplying such amount in its currency of denomination immediately pri- or to the Conversion by either: (i) the exchange rate that reflects the amounts of principal in the Approved Currency payable by the Bank under the Currency Hedge Transaction relating to the Conversion; or (ii) if the Bank so determines in accordance with the Conversion Guidelines, the ex- change rate component of the Screen Rate.

5. If the Withdrawn Loan Balance is denominated in more than one Loan Currency, the provisions of this Schedule shall apply separately to the amount denominated in each Loan Currency, so as to produce a separate amortization schedule for each such amount.

SCHEDULE 4

Disbursement Linked Indicators

The amounts and figures corresponding to specific DLIs may be adjusted from time to time, based on the review pursuant to Section B.2(c) of Schedule 2 to this Agreement, and such adjusted amounts and figures shall be communicated to the Borrower by notice from the Bank.

	12/2014	12/2015	12/2016	12/2017	Total disburse- ment amount (million Euros)	Disbursement as a percent of total loan
1. DLI 1: Road Re- habilitation and Safety Km of roads rehabili- tated and safety measures incorpo- rated under Project (cumulative)	DLI 1.1 68	DLI 1.2 358	DLI 1.3 702	DLI 1.4 807
Disbursement amount due (million Euros)/percent	11.25	10.08	9.05	3.99	34.375	46.58%

2. DLI 2: Road safety Actions DLI 2A: Road safety inspection contract signing; and km of roads covered by road safety inspec- tion and low cost road safety measures implemented (cumu- lative) DLI 2B : Capacity building and aware- ness campaigns	DLI 2A.1 Road Safety Inspection Contract Signed DLI 2A.2 250km in- spected	DLI 2A.3 500km in- spected & 250 km safety measures im- plemented	DLI 2A.4 750 km in- spected & 500km safety measures im- plemented	DLI 2A.5 1000 km in- spected & 700 km safety measures im- plemented
		DLI 2B.1 20 persons trained to un- dertake road safety au- dit/inspection		DLI 2B.2 awareness cam- paigns in 20 schools in the vicinity of the Project’s roads
Disbursement amount due (million Euros)/ percent	5.63	5.04	4.53	2.00	17.19	23.29%

3. DLI 3 Mainte- nance Manage- ment Reforms	DLI 3.1 Adoption of revised maintenance & rehabili- tation de- sign stand- ards; DLI 3.2 Preparation of strategic plan for the introduction of PBMC	DLI 3.3 PBMC for 1500 km competitively tendered	DLI 3.4 PBMC for an additional 500 km competi- tively ten- dered; DLI 3.5 PBMC for 1500 km in implementa- tion	DLI 3.6 PBMC for an additional 1000 km competitive- ly tendered . DLI 3.7 PBMC for a total of 2,000 km in imple- mentation
Disbursement amount due (million Euros) / percent	5.63	5.04	4.53	2.00	17.19	23.29%
Total Disbursement	22.51	20.16	18.11	7.98	68.75	93.16%

APPENDIX

Definitions

1. “Additional Instructions” means the additional instructions referred to in Section IV.A.1 of Schedule 2 to this Agreement, dated as of even date herewith, as such Additional In- structions may be revised from time to time by the Bank and delivered to the Borrower.

2. “Anti-Corruption Guidelines” means the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and revised in January 2011.

3. “Category” means a category set forth in the table in Section IV of Schedule 2 to this Agreement.

4. “Co-financier” means the European Investment Bank.

5. “Co-financing” means, for purposes of paragraph 16 of the Appendix to the General Conditions, an amount of EUR 100 million to be provided by the Co-financier to assist in financing the Project.

6. “Co-financing Agreement” means the agreement to be entered into between the Borrower and the Co-financier providing for the Co-financing.

7. “Consultant Guidelines” means the “Guidelines: Selection and Employment of Consult- ants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011.

8. “Decision Establishing Public Enterprise for State Roads Management” means the Bor- rower’s Decision No.023/8228/2005, dated December 22, 2005, and published in the Of- ficial Herald of the Borrower No. 115/05, establishing the Project Implementing Entity.

9. “Disbursement-Linked Indicator” or “DLI” means an indicator, set forth in Schedule 4 of this Agreement, the achievement of which is a condition for disbursement of Loan Pro- ceeds, pursuant to Section IV.B.3 of Schedule 2 to this Agreement.

10. “EMF” means the Borrower’s Environmental Management Framework, adopted by the Borrower on February 1, 2013 and satisfactory to the Bank, published through the Project Implementing Entity’s website and the Bank’s Infoshop on January 24, 2013, which out- lines the environmental policy, legal, and administrative framework applicable to the Pro- ject, presents environmental baseline information and potential environmental impacts, and includes the range of available mitigation measures that may be adopted, based on each particular situation. The EMF also contains a description of the environmental man-

agement system and institutional arrangements to be applied as well as recommendations for capacity building measures in the Project Implementing Entity during Project imple- mentation aimed at ensuring environmental sustainability. The EMF includes a generic sample of environmental mitigation and environmental monitoring plans (EMPs).

11. “EMPs” means the Borrower’s Environmental Management Plans prepared or to be pre- pared by the Project Implementing Entity, satisfactory to the Bank, and updated as neces- sary during Project implementation, in respect of works to be undertaken by the Project Implementing Entity under the Project defining details of measures to manage potential environmental risks and mitigate, reduce and/or offset adverse environmental impacts as- sociated with the implementation of activities under the Project, together with adequate institutional, monitoring and reporting arrangements capable of ensuring proper imple- mentation of, and regular feedback on compliance with, its terms, as the same shall be updated during Project implementation based on the detailed works plans and designs, as the same may be amended or supplemented in any other way from time to time with the Bank’s prior written approval.

12. “General Conditions” means the “International Bank for Reconstruction and Develop- ment General Conditions for Loans”, dated March 12, 2012

13. “IFR” Means interim financial report.

14. “Independent Performance Audit” means the annual audit performed by the Project Audit Consultant, referred to in Section II.C.1 of Schedule 2 to this Agreement.

15. “Independent Performance Audit Report” means the report by the Project Audit Consult- ant integrating the results of the Independent Performance Audit, to be prepared and fur- nished to the Bank pursuant to Section II.C.2 of Schedule 2 to this Agreement.

16. “Law of Public Roads” means the Law on Public Roads of the Borrower published in the Official Herald of the Borrower No. 101/2005, as such law may be modified from time to time, provided that in the opinion of the Bank, the modifications do not carry an adverse impact in the implementation of the Project.

17. “National Road” has the meaning ascribed to it under the Law of Public Roads.

18. “National Road Network” means the totality of the National Roads of the Borrower.

19. “National Road Network Rehabilitation Program” means the program of the Borrower developed pursuant to the provisions of the Decision Establishing Public Enterprise for

State Roads Management and the Statutes of the Public Enterprise for State Roads Man- agement, setting forth National Roads rehabilitation and safety activities to be carried out onto specific National Roads in agreement with the Bank, pursuant to economic and re- gional criteria, as set forth in the Project Operations Manual.

20. “National Road Traffic Safety Coordination Body” or “NRTSC” means the organization established by the Borrower through Decision published in the Official Herald of the Borrower No. 109/12.

21. “PBMC” means Performance-Based Maintenance Contract.

22. “Procurement Guidelines” means the “Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011.

23. “Procurement Plan” means the Borrower’s procurement plan for the Project, dated Feb- ruary 1, 2013 and referred to in paragraph 1.18 of the Procurement Guidelines and para- graph 1.25 of the Consultant Guidelines, as the same shall be updated from time to time in accordance with the provisions of said paragraphs.

24. “Project Audit Consultant” means an independent consultant in charge of carrying out the Independent Performance Audit.

25. “Project Implementing Entity” means Public Enterprise for State Roads Management (PERS).

26. “Project Implementing Entity’s Legislation” means the Law of Public Roads, the Deci- sion Establishing Public Enterprise for State Roads Management, and the Statutes of the Public Enterprise for State Roads Management.

27. “Project Operations Manual” means the manual, to be adopted by the Project Implement- ing Entity and satisfactory to the Bank, setting forth the operational and administrative responsibilities, procedures and rules for the implementation of the Project, including a financial management manual, and addressing safeguards issues, including those relative to the preparation of site-specific EMPs, and RAPs, consistent with the provisions of this Agreement, as well as issues relative to the percentage of contracts covering certain activ- ities that will be reviewed by the Project Audit Consultant, as the same may be amended and supplemented from time to time with the Bank’s prior written approval.

28. “RAPs” means the site-specific resettlement action plans, including any abbreviated re- settlement plans, adopted by the Borrower, pursuant to the RPF and this Agreement, and satisfactory to the Bank, containing, inter alia, a program of actions, measures and poli- cies for compensation and resettlement of persons, including compensation and resettle- ment arrangements, budget and cost estimates, and sources of funding, together with ade- quate institutional, monitoring and reporting arrangements capable of ensuring proper im- plementation of, and regular feedback on compliance with its terms for each site.

29. “Reporting Period” means a calendar semester for purposes of Section II.C and Section

IV.B.2 of Schedule 2 to this Agreement, and the Additional Instructions.

30. “RPF” means the Borrower’s Resettlement Policy Framework, dated January, 2013, adopted by the Borrower on February 6, 2013, and satisfactory to the Bank, setting forth resettlement procedures, institutional arrangements, eligibility criteria, entitlements and compensation, including valuation procedures, public consultation and participation, and monitoring and evaluation criteria to be applied in preparing a Resettlement Action Plan.

31. “Statutes of the Public Enterprise for State Roads Management” means the Statutes of the Project Implementing Entity, reference number No. 000-00-000, dated February 08, 2006.

32. “Subsidiary Agreement” means the agreement referred to in Section I.B of Schedule 2 to this Agreement pursuant to which the Borrower shall make the proceeds of the Loan available to the Project Implementing Entity.

International Bank for Reconstruction and Development

General Conditions for Loans

Dated March 12, 2012

Table of Contents

ARTICLE I Introductory Provisions 1

Section 1.01.

Application ofGeneral Conditions 1

Section 1.02. Inconsistency with Legal Agreements 1

Section 1.03. Definitions 1

Section 1.04. References; Headings 1

ARTICLE II Withdrawals 1

Section 2.01. Loan Account; Withdrawals Generally; Currency ofWithdrawal 1

Section 2.02. Special Commitment by the Bank 2

Section 2.03. Applicationsfor Withdrawal or for Special Commitment 2

Section 2.04. Designated Accounts 3

Section 2.05. Eligible Expenditures 3

Section 2.06. Financing Taxes. 4

Section 2.07. Refinancing Preparation Advance; Capitalizing Front-end Fee and Interest 4

Section 2.0B.Reallocation 4

ARTICLE III Loan Terms 5

Section 3.01. Front-end Fee 5

Section 3.02.Interest 5

Section 3.03. Repayment 6

Section 3.04. Prepayment 6

Section 3.05. Partial Payment 7

Section 3.06. Place ofPayment ...........................................................................................................• 7

Section 3.07. Currency ofPayment 7

Section 3.OB. Temporary Currency Substitution 7

Section 3.09. Valuation a/Currencies 8

Section 3.10. Manner ofPayment 9

ARTICLE IV Conversions of LOBn Terms 9

Section 4.01. Conversions Generally 9

Section 4.02. Conversion to a Fixed Rate or a Fixed Spread 0/Loan that Accrues Interest at a

Rate Based on the Variable Spread 10

Section 4.03. Interest Payable following Interest Rate Conversion or Currency Conversion or Currency Conversion

.................................................................................................................................... 10

Section 4.04. Principal Payable/allowing Currency Conversion 11

Section 4.05. Interest Rate Cap; Interest Rate Collar

.............................................................................................. ..................................11

ARTICLE V Project Execution 13

Section5.0i. Project Execution Generally ...............................,.......".........................................................

...........................................13

Section 5.02. Performance under the Loan Agreement and Project Agreement 13

Section 5.03 .Provision ofFunds and other Resources 14

Section 0.00.Xxxxxxxxx 14 Section 5.05.

LandAcquisition 14 Section

5. 06. Use ofGoods, Works and Services; Maintenance ofFacilities 14 Section

5.07. Plans; Documents; Records ................................................................., 14

Section 5.08. Project Monitoring and Evaluation 15 Section

5.09 Financial Management; Financial Statements; Audits 15 Section

5.10. Cooperation and Consultation 16

Section 5.11.Visits 17

Section 5.12.Disputed Area 17

ARTICLE VI Financial and Economic Data; Negative Pledge 17

Section 6.01. Financial and Economic Data 17 Section

6.02. Negative Pledge 17

ARTICLE VII Cancellation; Suspension; Acceleration 19

Section 7.01. Cancellation by the Borrower 19 Section

7.02. Suspension by the Bank 19 Section

7.03. Cancellation by the Bank 23 Section

7.04. Amounts Subject to Special Commitment not Ajftcted by Cancellation or Suspension by the Bank

............................................................................................................................... 24

Section 7.05. Cancellation ofGuarantee 24 Section

7.06. Events ofAcceleration 25 Section

7.07. Acceleration during a Conversion Period 26 Section

7.08. Effictiveness ofProvisions after Cancellation, Suspension or Acceleration 26

ARTICLE VIII Enforceability; Arbitration 27

Section 8.01. Enforceability 27

Section 8.03. Failure to Exercise Rights 27

ii

Section 8.04. Arbitration 27

ARTICLE IX Effeciveness; Termination 30

Section 9.01. Conditions ofEffectiveness of Legal Agreements 30

Section 9.02. Legal Opinions or Certificates 30

Section 9.03. Effective Date 31

Section 9.04. Termination a/Legal Agreements/or Failure to Become Effective 31

Section 9.05. Termination ofLegal Agreements on Full Payment 31

ARTICLE X Miscellaneous Provisions 31

Section 10.01. Notices and Requests 31

Section 10.02. Action on Behalf ofthe Loan Parties and the Project Implementing Entity ......................

32 Section 10.03. Evidence ofAuthority 32

Section 10.04. Execution in Counterparts 32

Section 10.05. Disclosure 33

APPENDIX -Definitions 34

iii

ARTICLE I

Introductory Provisions

Section 1.01.Application ofGeneral Conditions

These General Conditions set forth certain terms and conditions generally applicable to the Loan Agreement and to any other Legal Agreement. They apply to the extent the Legal Agreement so provides. Ifthe Loan Agreement is between the Member Country and the Bank, references in these General Condi- tions to the Guarantor and the Guarantee Agreement shall be disregarded. If there is no Project Agree- ment between the Bank and a Project Implementing Entity, references in these General Conditions to the Project Implementing Entity and the Project Agreement shall be disregarded.

Section 1.02.Inconsistency with Legal Agreements

If any provision of any Legal Agreement is inconsistent with a provision of these General Condi- tions, the provision ofthe Legal Agreement shall govern.

Section 1.03.Definitions

Whenever used in these General Conditions or in the Legal Agreements (except as otherwise pro- vided in the Legal Agreements), the terms set forth in the Appendix have the meanings ascribed to them in the Appendix.

Section 1.04.References; Headings

References in these General Conditions to Articles, Sections and Appendix are to the Articles and Sections of, and the Appendix to, these General Conditions. The headings of the Articles, Sections and Appendix, and the Table of Contents are inserted in these General Conditions for reference only and shall not be taken into consideration in interpreting these General Conditions.

ARTICLE II

Withdrawals

Section 2.0 I. Loan Account; Withdrawals Generally; Currency ofWithdrawal

(a) The Bank shall credit the amount of the Loan to the Loan Account in the Loan Currency. Ifthe Loan is denominated in more than one currency, the Bank shall divide the Loan Account into multiple sub- accounts, one for each Loan Currency.

(b) The Borrower may from time to time request withdrawals of amounts of the Loan from the Loan Account in accordance with the provisions of the Loan Agreement and ofthese General Conditions.

(c) Each withdrawal of an amount ofthe Loan from the Loan Account shall be made in the Loan Currency of such amount. The Bank shall, at the request and acting as an agent of the Borrower, and on such terms and conditions as the Bank shall determine, purchase with the Loan Currency withdrawn from the Loan Account such Currencies as the Borrower shall reasonably request to meet payments for Eligible Expenditures.

Section 2.02.Special Commitment by the Bank

At the Borrower's request and on such terms and conditions as the Bank and the Borrower shall agree, the Bank may enter into special commitments in writing to pay amounts for Eligible Expenditures notwith- standing any subsequent suspension or cancellation by the Bank or the Borrower ("Special Commitment").

Section 2.03.Applicationsfor Withdrawal or for Special Commitment

(a) When the Borrower wishes to request a withdrawal from the Loan Account or to request the Bank to enter into a Special Commitment, the Borrower shall deliver to the Bank a written application in such form and sub- stance as the Bank shall reasonably request. Applications for withdrawal, including the documentation required pursuant to this Article, shall be made promptly in relation to Eligible Expenditures.

(b) The Borrower shall furnish to the Bank evidence satisfactory to the Bank ofthe authority ofthe person or persons authorized to sign such applications and the authenticated specimen signature of each such person.

(c) The Borrower shall furnish to the Bank such documents and other evidence in support of each such applica- tion as the Bank shall reasonably request, whether before or after the Bank has permitted any withdrawal re- quested in the application.

(d) Each such application and accompanying documents and other evidence must be sufficient in form and substance to satisfy the Bank that the Borrower is entitled to withdraw from the Loan Account the amount applied xxxxxx that the amount to be withdrawn from the Loan Account will be used only for the purposes specified in the Loan Agreement.

(e) The Bank shall pay the amounts withdrawn by the Borrower from the Loan Account only to, or on the or- der of, the Borrower.

Section 2.04.Designated Accounts

(a) The Borrower may open and maintain one or more designated accounts into which the Bank may, at the request of the Borrower, deposit amounts withdrawn from the Loan Account as advances for purposes of the Project. All designated accounts shall be opened in a financial institution acceptable to the Bank, and on terms and conditions acceptable to the Bank.

(b) Deposits into, and payments out of, any such designated account shall be made in accordance with the Loan Agreement and these General Conditions and such additional instructions as the Bank may specify from time to time by notice to the Borrower. The Bank may, in accordance with the Loan Agreement and such instructions, cease making deposits into any such account upon notice to the Borrower. In such case, the Bank shall notify the Borrower of the procedures to be used for subsequent withdrawals from the Loan Account.

Section 2.05.Eligible Expenditures

The Borrower and the Project Implementing Entity shall use the proceeds of the Loan exclusive- ly to finance expenditures which, except as otherwise provided in the Loan Agreement, satisfy the fol- lowing requirements ("Eligible Expenditure"):

(a) the payment is for the financing of the reasonable cost of goods, works or services required for the Project, to be financed out of the proceeds of the Loan and procured, all in accordance with the provisions of the Legal Agreements;

(b) the payment is not prohibited by a decision of the United Nations Security Council taken under Chap- ter VII of the Charter of the United Nations; and

(c) the payment is made on or after the date specified in the Loan Agreement, and except as the Bank may

otherwise agree, is for expenditures incurred prior to the Closing Date.

Section 2.06.Financing Taxes

The use of any proceeds of the Loan to pay for Taxes levied by, or in the territory of, the Member Country on or in respect of Eligible Expenditures, or on their importation, manufacture, procurement or supply, if permitted by the Legal Agreements, is subject to the Bank's policy of requiring economy and efficiency in the use of the proceeds of its loans. To that end, if the Bank at any time determines that the amount of any such Tax is excessive, or that such Tax is discriminatory or otherwise unreasonable, the Bank may, by notice to the Borrower, adjust the percentage of such Eligible Expenditures to be financed out of the proceeds of the Loan specified in the Loan Agreement, as required to ensure consistency with such policy ofthe Bank.

Section 2.07.Refinancing Preparation Advance; Capitalizing Front-end Fee and Interest

(a) If the Loan Agreement provides for the repayment out of the proceeds of the Loan of an advance made by the Bank or the Association ("Preparation Advance"), the Bank shall, on behalf of the Borrower, with- draw from the Loan Account on or after the Effective Date the amount required to repay the withdrawn and outstanding balance of the advance as at the date of such withdrawal from the Loan Account and to pay all accrued and unpaid charges, if any, on the advance as at such date. The Bank shall pay the amount so withdrawn to itself or the Association, as the case may be, and shall cancel the remaining unwithdrawn amount ofthe advance.

(b) Except as otherwise provided in the Loan Agreement, the Bank shall, on behalf ofthe Borrower, with- draw from the Loan Account on or after the Effective Date and pay to itself the amount of the Front-end Fee payable pursuant to Section 3.01.

(c) If the Loan Agreement provides for financing of interest and other charges on the Loan out of the pro- ceeds of the Loan, the Bank shall, on behalf ofthe Borrower, withdraw from the Loan Account on each of the Payment Dates, and pay to itself the amount required to pay such interest and other charges accrued and payable as at such date, subject to any limit specified in the Loan Agreement on the amount to be so withdrawn.

Section 2.08.Reallocation

Notwithstanding any allocation of an amount of the Loan to a category of expenditures under the Loan Agreement, if the Bank reasonably determines at any time that such amount will be insufficient to finance such expenditures, it may, by notice to the Borrower:

(a) reallocate any other amount of the Loan which in the opinion of the Bank is not needed for the pur- pose for which it has been allocated under the Loan Agreement, to the extent required to meet the esti- mated shortfall; and

(b) if such reallocation will not fully meet the estimated shortfall, reduce the percentage of such expendi- tures to be financed out of the proceeds of the Loan, in order that withdrawals for such expenditures may continue until all such expenditures have been made.

ARTICLE III

Loan Terms

Section 3.01.Front-end Fee.The Borrower shall pay the Bank a front-end fee on the Loan amount at the rate specified in the Loan Agreement (the "Front-end Fee").

Section 3.02.Interest

(a) The Borrower shall pay the Bank interest on the Withdrawn Loan Balance at the rate specified in the Loan Agreement; provided, however, that if the Loan Agreement provides for Conversions, such rate may be modified from time to time in accordance with the provisions of Article N. Interest shall accrue from the respective dates on which amounts of the Loan are withdrawn and shall be payable semi-annually in arrears on each Payment Date.

(b) If interest on any amount ofthe Withdrawn Loan Balance is based on a Variable Spread, the Bank shall notify the Loan Parties of the interest rate on such amount for each Interest Period, promptly upon its determination.

(c) If interest on any amount of the Loan is based on LIBOR or EURIBOR, and the Bank determines that such Reference Rate has permanently ceased to be quoted for the relevant Currency, the Bank shall apply such other comparable Reference Rate for such Currency as it may reasonably determine. The Bank shall promptly notify the Loan Parties of such other rate.

(d) If interest on any amount of the Withdrawn Balance is payable at the Variable Rate, then whenever, in light of changes in market practice affecting the determination of the interest rate applicable to such amount, the Bank determines that it is in the interest of its borrowers as a whole and of the Bank to apply a basis for determining such interest rate other than as provided in the Loan Agreement and these General Conditions, the Bank may modify the basis for determining such interest rate upon not less than three months' notice to the Loan Parties of the new basis. The new basis shall become effective on the expiry of the notice period unless a Loan Party notifies the Bank during such period of its objection to such modifi- cation, in which case the modification shall not apply to such amount of the Loan.

(e) Notwithstanding the provisions of paragraph (a) of this Section, if any amount of the Withdrawn Loan Balance remains unpaid when due and such non-payment continues for a period of thirty days, then the Borrower shall pay the Default Interest Rate on such overdue amount in lieu of the interest rate specified in the Loan Agreement (or such other interest rate as may be applicable pursuant to Article IV as a result of a Conversion) until such overdue amount is fully paid. Interest at the Default Interest Rate shall accrue from the first day of each Default Interest Period and shall be payable semi -annually in arrears on each Payment Date.

Section 3.03.Repayment

The Borrower shall repay the Withdrawn Loan Balance to the Bank in accordance with the provi- sions ofthe Loan Agreement.

Section 3.04.Prepayment

(a) After giving not less than forty-five days' notice to the Bank, the Borrower may repay the Bank the following amounts in advance of maturity, as of a date acceptable to the Bank (provided that the Borrower has paid all Loan Payments due as at such date, including any prepayment premium calculated pursuant to paragraph (b) of this Section): (i) the entire Withdrawn Loan Balance as at such date, or (ii) the entire principal amount of anyone or more maturities of the Loan. Any partial prepayment of the Withdrawn Loan Balance shall be applied in the manner specified by the Borrower, or in the absence of any specification by the Borrower, in the following manner: (A) if the Loan Agreement provides for the separate amortization of specified disbursed amounts of the principal of the Loan ("Disbursed Amounts"), the prepayment shall be applied in the inverse order of the Disbursed Amounts, with the Disbursed Amount which has been withdrawn last being repaid first and with the latest maturity of said Disbursed Amount being repaid first; and (B) in all other cases, the prepayment shall be applied in the inverse order of the Loan maturities, with the latest maturity being repaid first

(b) The prepayment premium payable under paragraph (a) of this Section shall be an amount reasonably determined by the Bank to represent any cost to it ofredeploying the amount to be prepaid from the date of its prepayment to its maturity date.

(c) If, in respect of any amount of the Loan to be prepaid, a Conversion has been effected and the Conver- sion Period has not terminated at the time of prepayment: (i) the Borrower shall pay a transaction fee for the early termination of the Conversion, in such amount or at such rate as announced by the Bank from time to time and in effect at the time of receipt by the Bank of the Borrower's notice of prepayment; and

(ii) the Borrower or the Bank, as the case may be, shall pay an Unwinding Amount, if any, for the early termination of the Conversion, in accordance with the Conversion Guidelines. Transaction fees provided for under this paragraph and any Unwinding Amount payable by the Borrower pursuant to this paragraph shall be paid not later than sixty days after the date ofprepayment

Section 3.05.Partial Payment

If the Bank at any time receives less than the full amount of any Loan Payment then due, it shall have the right to allocate and apply the amount so received in any manner and for such purposes under the Loan Agreement as it determines in its sole discretion.

Section 0.00.Xxxxx 0/Payment

All Loan Payments shall be paid at such places as the Bank shall reasonably request Section 3.07.Currency a/Payment

(a) The Borrower shall pay all Loan Payments in the Loan Currency; and if a Conversion has been effect- ed in respect of any amount of the Loan, as further specified in the Conversion Guidelines.

(b) If the Borrower so requests, the Bank shall, acting as agent of the Borrower, and on such terms and

conditions as the Bank shall determine, purchase the Loan Currency for the purpose of paying a Loan Payment upon timely payment by the Borrower of sufficient funds for that purpose in a Currency or Cur- rencies acceptable to the Bank; provided, however, that the Loan Payment shall be deemed to have been paid only when and to the extent that the Bank has received such payment in the Loan Currency.

Section 3.08.Temporary Currency Substitution

(a) If the Bank reasonably determines that an extraordinary situation has arisen under which the Bank shall be unable to provide the Loan Currency at any time for purposes of funding the Loan, the Bank may provide such substitute Currency or Currencies ("Substitute Loan Currency") for the Loan Currency ("Original Loan Currency") as the Bank shall select. During the period of such extraordinary situation: (i) the Substitute Loan Currency shall be deemed to be the Loan Currency for purposes of these General Conditions and the Legal Agreements; and (ii) Loan Payments shall be paid in the Substitute Loan Cur- rency, and other related financial terms shall be applied, in accordance with principles reasonably deter- mined by the Bank. The Bank shall promptly notify the Loan Parties of the occurrence of such extraordi- nary situation, the Substitute Loan Currency and the financial terms of the Loan related to the Substitute Loan Currency.

(b) Upon notification by the Bank under paragraph (a) of this Section, the Borrower may within thirty days thereafter notify the Bank of its selection of another Currency acceptable to the Bank as the Substi- tute Loan Currency. In such case, the Bank shall notify the Borrower of the financial terms of the Loan applicable to said Substitute Loan Currency, which shall be determined in accordance with principles reasonably established by the Bank.

(c) During the period of the extraordinary situation referred to in paragraph (a) of this Section, no premi- um shall be payable on prepayment of the Loan.

(d) Once the Bank is again able to provide the Original Loan Currency, it shall, at the Borrower's request, change the Substitute Loan Currency to the Original Loan Currency in accordance with principles reason- ably established by the Bank.

Section 3.09.Valuation ofCurrencies

Whenever it becomes necessary for the purposes of any Legal Agreement, to determine the value of one Currency in terms of another, such value shall be as reasonably determined by the Bank.

Section 3.10.Manner ofPayment

(a) Any Loan Payment required to be paid to the Bank in the Currency of any country shall be made in such manner, and in Currency acquired in such manner, as shall be permitted under the laws of such country for the purpose of making such payment and effecting the deposit of such Currency to the ac- count of the Bank with a depository of the Bank authorized to accept deposits in such Currency.

(b) An Loan Payments shall be paid without restrictions of any kind imposed by, or in the territory of, the Member Country and without deduction for, and free from, any Taxes levied by or in the territory ofthe Member Country.

(c) The Legal Agreements shall be free from any Taxes levied by or in the territory of the Member Coun- try on or in connection with their execution, delivery or registration.

Section 4.0 I. Conversions Generally

ARTICLE IV

Conversions of Loan Terms

(a) The Borrower may, at any time, request a conversion of the terms of the Loan in accordance with the Loan Agreement in order to facilitate prudent debt management. Each such request shall be furnished by the Borrower to the Bank in accordance with the Conversion Guidelines and, upon acceptance by the Bank, the conversion requested shall be considered a Conversion for the purposes ofthese General Condi- tions.

(b) Upon acceptance by the Bank of a request for a Conversion, the Bank shall take all actions necessary to effect the Conversion in accordance with these General Conditions, the Loan Agreement and the Con- version Guidelines. To the extent any modification of the provisions ofthe Loan Agreement providing for withdrawal or repayment of the proceeds of the Loan is required to give effect to the Conversion, such provisions shall be deemed to have been modified as of the Conversion Date. Promptly after the Execu- tion Date for each Conversion, the Bank shall notify the Loan Parties of the financial terms of the Loan, including any revised amortization provisions and modified provisions providing for withdrawal ofthe proceeds ofthe Loan.

(c) Except as otherwise provided in the Conversion Guidelines, the Borrower shall pay a transac- tion fee for each Conversion, in such amount or at such rate as announced by the Bank from time to time and in effect on the Execution Date. Transaction fees provided for under this paragraph shall be either: (i) payable as a lump sum not later than sixty days after the Execution Date; or (ii) expressed as a percentage per annum and added to the interest rate payable on each Payment Date.

Section 4.02.Conversion to a Fixed Rate or Fixed Spread of Loan that Accrues Interest at a Rate Based on the Variable Spread

(a) A Conversion to a Fixed Rate of all or any amount of the Loan that accrues interest at a rate based on the Variable Spread shall be effected first by fixing the Variable Spread applicable to such amount into the Fixed Spread for the Loan Currency and adding to such Fixed Spread the Variable Spread Fixing Charge, followed immediately by the Conversion requested by the Borrower.

(b) A Conversion to a Fixed Spread of the full amount of the Loan that accrues interest at a rate based on the Variable Spread, shall be effected by fixing the Variable Spread applicable to such amount into the Fixed Spread for the Loan Currency and adding to such Fixed Spread the Variable Spread Fixing Charge, in accord- ance with the Conversion Guidelines.

Section 4.03.Interest Payable following Interest Rate Conversion or Currency Conversion

(a) Interest Rate Conversion. Upon an Interest Rate Conversion, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the amount of the Withdrawn Loan Balance to which the Con- version applies at the Variable Rate or the Fixed Rate, whichever applies to the Conversion.

(b) Currency Conversion of Unwithdrawn Amounts. Upon a Currency Conversion of all or any amount of the Unwithdrawn Loan Balance to an Approved Currency, the Borrower shall, for each Interest Period during the Conversion Period, pay interest in the Approved Currency on such amount as subsequently withdrawn and outstanding from time to time at the Variable Rate.

(c) Currency Conversion of Withdrawn Amounts. Upon a Currency Conversion of all or any amount ofthe Withdrawn Loan Balance to an Approved Currency, the Borrower shall, for each Interest Period during the Conversion Period, pay interest in the Approved Currency on such Withdrawn Loan Balance at the Variable Rate or Fixed Rate, whichever applies to the Conversion.

Section 4.04.Principal Payable following Currency Conversion

(a) Currency Conversion ofUnwithdrawn Amounts. In the event of a Currency Conversion of an amount of the Unwithdrawn Loan Balance to an Approved Currency, the principal amount of the Loan so con- verted shall be determined by the Bank by multiplying the amount to be so converted in its Currency of denomination immediately prior to the Conversion by the Screen Rate. The Borrower shall repay such principal amount as subsequently withdrawn in the Approved Currency in accordance with the provisions of the Loan Agreement.

(b) Currency Conversion of Withdrawn Amounts. In the event of a Currency Conversion of an amount of the Withdrawn Loan Balance to an Approved Currency, the principal amount of the Loan so converted shall be determined by the Bank by multiplying the amount to be so converted in its Currency of denomi- nation immediately prior to the Conversion by either: (i) the exchange rate that reflects the amounts of principal in the Approved Currency payable by the Bank under the Currency Hedge Transaction relating to the Conversion; or (ii) if the Bank so determines in accordance with the Conversion Guidelines, the exchange rate component of the Screen Rate. The Borrower shall repay such principal amount in the Ap- proved Currency in accordance with the provisions of the Loan Agreement.

(c) Termination ofConversion Period prior to Final Loan Maturity. If the Conversion Period of a Curren- cy Conversion applicable to a portion of the Loan terminates prior to the final maturity of such portion, the principal amount of such portion of the Loan remaining outstanding in the Loan Currency to which such amount shall revert upon such termination shall be determined by the Bank either: (i) by multiplying such amount in the Approved Currency of the Conversion by the spot or forward exchange rate prevailing between the Approved Currency and said Loan Currency for settlement on the last day of the Conversion Period; or (ii) io such other manner as specified in the Conversion Guidelines. The Borrower shall repay such principal amount in the Loan Currency in accordance with the provisions of the Loan Agreement.

Section 4.05.Interest Rate Cap; Interest Rate Collar

(a) Interest Rate Cap. Upon the establishment of an Interest Rate Cap on the Variable Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the amount ofthe Withdrawn Loan Balance to which the Conversion applies at the Variable Rate, unless on any Reference Rate Reset Date during the Conversion Period: (i) for a loan that accrues interest at aVariable Rate based on the Reference Rate and the Fixed Spread, the Variable Rate exceeds the Interest Rate Cap, in which case, for the Interest Period to which the Reference Rate Reset Date relates, the Borrower shall pay inter- est on such amount at a rate equal to the Interest Rate Cap; or (ii) for a loan that accrues interest at a Vari- able Rate based on a Reference Rate and the Variable Spread, the Reference Rate exceeds the Interest Rate Cap, in which case, for the Interest Period to which the Reference Rate Reset Date relates, the Bor- rower shall pay interest on such amount at a rate equal to the Interest Rate Cap plus the Variable Spread.

(b) Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Variable Rate, the Bor- rower shall, for each Interest Period during the Conversion Period, pay interest on the amount of the Withdrawn Loan Balance to which the Conversion applies at the Variable Rate, unless on any Reference Rate Reset Date during the Conversion Period: (i) for a loan that accrues interest at a Variable Rate based on a Reference Rate and the Fixed Spread, the Variable Rate: (A) exceeds the upper limit ofthe interest

Rate Collar, in which case, for the Interest Period to which the Reference Rate Reset Date relates, the Borrower shall pay interest on such amount at a rate equal to such upper limit; or (B) falls below the low- er limit ofthe Interest Rate Collar, in which case, for the Interest Period to which the Reference Rate Reset Date relates, the Borrower shall pay interest on such amount at a rate equal to such lower limit; or

(ii) for a loan that accrues interest at a Variable Rate based on a Reference Rate and the Variable Spread, the Reference Rate: (A) exceeds the upper limit of the Interest Rate Collar, in which case, for the Interest Period to which the Reference Rate Reset Date relates, the Borrower shall pay interest on such amount at a rate equal to such upper limit plus the Variable Spread; or (B) falls below the lower limit of the Interest Rate Collar, in which case, for the Interest Period to which the Reference Rate Reset Date relates, the Borrower shall pay interest on such amount at a rate equal to such lower limit plus the Variable Spread.

(c) Interest Rate Cap or Collar Premium. Upon the establishment of an Interest Rate Cap or an Interest Rate Collar, the Borrower shall pay to the Bank a premium on the amount of the Withdrawn Loan Bal- ance to which the Conversion applies, calculated: (i) on the basis of the premium, if any, payable by the Bank for an interest rate cap or collar purchased by the Bank from a Counterparty for the purpose of es- tablishing the Interest Rate Cap or Interest Rate Collar; or (ii) otherwise as specified in the Conversion Guidelines. Such premium shall be payable by the Borrower not later than sixty days after the Execution Date.

(d) Early Termination. Except as otherwise provided in the

Conversion Guidelines, upon the early termination of any Interest Rate Cap or Interest Rate Collar by the Borrower: (i) the Borrower shall pay a transaction fee for the early termination, in such amount or at such rate as announced by the Bank from time to time and in effect at the time of receipt by the Bank of the Borrower's notice of early termination; and (ii) the Borrower or the Bank, as the case may be, shall pay an Unwinding Amount, if any, for the early termination, in accordance with the Conversion Guidelines. Transaction fees provided for under this paragraph and any Unwinding Amount payable by the Borrower pursuant to this paragraph shall be paid not later than sixty days after the effective date ofthe early termi- nation.

ARTICLE V

Project Execution

Section 5.01.Project Execution Generally

The Borrower and the Project Implementing Entity shall carry out their Respective Parts ofthe Project:

(a) with due diligence and efficiency;

(b) in conformity with appropriate administrative, technical, financial, economic, environmental and so- cial standards and practices; and

(c) in accordance with the provisions of the Legal Agreements and these General Conditions.

Section 5.02.Performance under the Loan Agreement and Project Agreement

(a) The Guarantor shall not take or permit to be taken any action which would prevent or interfere with the execution of the Project or the performance of the obligations of the Borrower or the Project Imple- menting Entity under the Legal Agreement to which it is a party.

(b) The Borrower shall: (i) cause the Project Implementing Entity to perform all of the obligations of the Project Implementing Entity set forth in the Project Agreement in accordance with the provisions of the Project Agreement; and (ii) not take or permit to be taken any action which would prevent or interfere with such performance.

Section 5.03.Provision ofFunds and other Resources

The Borrower shall provide or cause to be provided, promptly as needed, the funds, facilities, ser- vices and other resources: (a) required for the Project; and

(b) necessary or appropriate to enable the Project Implementing Entity to perform its obligations under the Project Agreement.

Section 0.00.Xxxxxxxxx

The Borrower and the Project Implementing Entity shall make adequate provision for the insurance of any goods required for their Respective Parts of the Project and to be financed out of the proceeds of the Loan, against hazards incident to the acquisition, transportation and delivery of the goods to the place of their use or installation. Any indemnity for such insurance shall be payable in a freely usable Currency to replace or repair such goods.

Section 0.00.Xxxx Acquisition

The Borrower and the Project Implementing Entity shall take (or cause to be taken) all action to ac- quire as and when needed all land and rights in respect of land as shall be required for carrying out their Re- spective Parts of the Project and shall promptly furnish to the Bank, upon its request, evidence satisfactory to the Bank that such land and rights in respect of land are available for purposes related to the Project.

Section 5.06.Use ofGoods, Works and Services; Maintenance ofFacilities

(a) Except as the Bank shall otherwise agree, the Borrower and the Project Implementing Entity shall ensure that all goods, works and services financed out of the proceeds of the Loan are used exclusively for the pur- poses of the Project.

(b) The Borrower and the Project Implementing Entity shall ensure that all facilities relevant to their Respec- tive Parts of the Project shall at all times be properly operated and maintained and that all necessary repairs and renewals of such facilities shall be made promptly as needed.

Section 5.07.Plans; Documents; Records

(a) The Borrower and the Project Implementing Entity shall furnish to the Bank all plans, schedules, specifications, reports and contract documents for their Respective Parts of the Project, and any material modi- fications of or additions to these documents, promptly upon their preparation and in such detail as the Bank shall reasonably request.

(b) The Borrower and the Project Implementing Entity shall maintain records adequate to record the pro- gress of their Respective Parts of the Project (including its cost and the benefits to be derived from it), to identify the goods, works and services financed out of the proceeds of the Loan and to disclose their use in the Project, and shall furnish such records to the Bank upon its request.

(c) The Borrower and the Project Implementing Entity shall retain all records (contracts, orders, invoices, bills, receipts and other documents) evidencing expenditures under their Respective Parts of the Project until at least the later of: (i) one year after the Bank has received the audited Financial Statements cover- ing the period during which the last withdrawal from the Loan Account was made; and (ii) two years after the Closing Date. The Borrower and the Project Implementing Entity shall enable the Bank's representa- tives to examine such records.

Section 5.08.Project Monitoring and Evaluation

(a) The Borrower shall maintain or cause to be maintained policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators acceptable to the Bank, the progress of the Project and the achievement of its objectives.

(b) The Borrower shall prepare or cause to be prepared periodic reports ("Project Report"), in form and substance satisfactory to the Bank, integrating the results of such monitoring and evaluation activities and setting out measures recommended to ensure the continued efficient and effective execution of the Project and to achieve the Project's objectives. The Borrower shall furnish or cause to be furnished each Project Report to the Bank promptly upon its preparation, afford the Bank a reasonable opportunity to exchange views with the Borrower and the Project Implementing Entity on such report, and thereafter implement such recommended measures, taking into account the Bank's views on the matter.

(c) The Borrower shall prepare, or cause to be prepared, and furnish to the Bank not later than six months after the Closing Date, or such earlier date as may be specified for that purpose in the Loan Agreement:

(i) a report of such scope and in such detail as the Bank shall reasonably request, on the execution of the Project, the performance by the Loan Parties, the Project Implementing Entity and the Bank of their re- spective obligations under the Legal Agreements and the accomplishment of the purposes of the Loan; and (ii) a plan designed to ensure the sustainability ofthe Project's achievements.

Section 0.00.Xxxxxxxxx Management; Financial Statements; Audits

(a) The Borrower shall maintain or cause to be maintained a financial management system and prepare financial statements ("Financial Statements") in accordance with consistently applied accounting standards acceptable to the Bank, both in a manner adequate to reflect the operations, resources and expenditures related to the Project.

(b) The Borrower shall:

(i) have the Financial Statements periodically audited in accordance with the Legal Agreements by independ- ent auditors acceptabIe to the Bank, in accordance with consistently applied auditing standards acceptable to the Bank;

(ii) not later than the date specified in the Legal Agreements, furnish or cause to be furnished to the Bank the Financial Statements as so audited, and such other information concerning the audited Financial Statements and such auditors, as the Bank may from time to time reasonably request; and

(iii) make the audited Financial Statements, or cause the audited Financial Statements to be made, publicly available in a timely fashion and in a manner acceptable to the Bank.

Section 5.10.Cooperation and Consultation

The Bank and the Loan Parties shall cooperate fully to assure that the purposes of the Loan and the objectives of the Project will be accomplished. To that end, the Bank and the Loan Parties shall:

(a) from time to time, at the request of anyone of them, exchange views on the Project, the Loan, and the per- formance of their respective obligations under the Legal Agreements, and furnish to the other party all such information related to such matters as it shall reasonably request; and

(b) promptly inform each other of any condition which interferes with, or threatens to interfere with, such mat- ters.

Section 5.11.Visits

(a) The Member Country shall afford all reasonable opportunity for representatives ofthe Bank to visit any part of its territory for purposes related to the Loan or the Project.

(b) The Borrower and the Project Implementing Entity shall enable the Bank's representatives to: (i) visit any facilities and construction sites included in their Respective Parts of the Project; and (ii) to examine the goods financed out ofthe proceeds ofthe Loan for their Respective Parts ofthe Project, and any plants, installations, sites, works, buildings, property, equipment, records and documents relevant to the performance of their obli- gations under the Legal Agreements.

Section 5.12.DisputedArea

In the event that the Project is in an area which is or becomes disputed, neither the Bank's financing ofthe Project, nor any designation ofor reference to such area in the Legal Agreements, is intended to constitute a judgment on the part of the Bank as to the legal or other status of such area or to prejudice the determination ofany claims with respect to such area.

ARTICLE VI

Financial and Economic Data; Negative Pledge

Section 0.00.Xxxxxxxxx and Economic Data

The Member Country shall furnish to the Bank all such information as the Bank shall reasonably re- quest with respect to financial and economic conditions in its territory, including its balance of payments and its External Debt as well as that of its political or administrative subdivisions and of any entity owned or con- trolled by, or operating for the account or benefit of, the Member Country or any such subdivision, and of any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Member Country.

Section 6.02.Negative Pledge

(a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member concerned but to ensure that no other External Debt shall have priority over its loans in the allocation, realization or distribution of foreign exchange held under the control or for the benefit of such member. To that end, if

any Lien is created on any Public Assets as security for any External Debt, which will or might result in a pri- ority for the benefit of the creditor of such External Debt in the allocation, realization or distribution of foreign exchange, such Lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equal- ly and ratably secure all Loan Payments, and the Member Country, in creating or permitting the creation of such Lien, sbaH make express provision to that effect; provided, however, that if for any constitutional or other legal reason such provision cannot be made with respect to any Lien created on assets of any of its political or administrative subdivisions, the Member Country shall promptly and at no cost to the Bank secure all Loan Payments by an equivalent Lien on other Public Assets satisfactory to the Bank.

(b) The Borrower which is not the Member Country undertakes that, except as the Bank shall otherwise agree:

(i) if it creates any Lien on any of its assets as security for any debt, such Lien will equally and ratably secure the payment of all Loan Payments and in the creation of any such Lien express provision will be made to that effect, at no cost to the Bank; and

(ii) if any statutory Lien is created on any of its assets as security for any debt, it shall grant at no cost to the Bank, an equivalent Lien satisfactory to the Bank to secure the payment of all Loan Payments.

(c) The provisions of paragraphs (a) and (b) ofthis Section shall not apply to: (i) any Lien created on property, at the time of purchase of such property, solely as security for the payment of the purchase price of such prop- erty or as security for the payment of debt incurred for the purpose of financing the purchase of such property; or (ii) any Lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after the date on which it is originally incurred.

ARTICLE VII

Cancellation; Suspension; Acceleration

Section 7.01.Cancellation by the Borrower

The Borrower may, by notice to the Bank, cancel any amount of the Unwithdrawn Loan Balance, except that the Borrower may not cancel any such amount that is subject to a Special Commitment.

Section 7.02.Suspension by the Bank

If any ofthe events specified in paragraphs (a) through (m) of this Section occurs and is continu- ing, the Bank may, by notice to the Loan Parties, suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account. Such suspension shall continue until the event (or events) which gave rise to the suspension has (or have) ceased to exist, unless the Bank has notified the Loan Parties that such right to make withdrawals has been restored.

(a) Payment Failure.

(i) The Borrower has failed to make payment (notwithstanding the fact that such payment may have been made by the Guarantor or a third party) of principal or interest or any other amount due to the Bank or the Association: (A) under the Loan Agreement; or (B) under any other agreement between the Bank and the Borrower; or (C) under any agreement between the Borrower and the Association; or

(D) in consequence of any guarantee extended or other financial obligation of any kind assumed by the Bank or the Association to any third party with the agreement of the Borrower.

(ii) The Guarantor has failed to make payment of principal or interest or any other amount due to the Bank or the Association: (A) under the Guarantee Agreement; or

(B) under any other agreement between the Guarantor and the Bank; or (C) under any agreement between the Guarantor and the Association; or (D) in consequence of any guarantee extended or other financial obligation of any kind assumed by the Bank or the Association to any third party with the agreement ofthe Guarantor.

(b) Performance Failure.

(i) A Loan Party has failed to perform any other obligation under the Legal Agreement to which it is a party or under any Derivatives Agreement.

(ii) The Project Implementing Entity has failed to perform any obligation under the Project Agreement.

(c) Fraud and Corruption. At any time, the Bank determines that any representative of the Guarantor or the Borrower or the Project Implementing Entity (or any other recipient of any of the proceeds of the Loan) has engaged in corrupt, fraudulent, coercive or collusive practices in connection with the use of the proceeds of the Loan, without the Guarantor or the Borrower or the Project Implementing Entity (or any other such recipient) having taken timely and appropriate action satisfactory to the Bank to address such practices when they occur.

(d) Cross Suspension. The Bank or the Association has suspended in whole or in part the right of a Loan Party to make withdrawals under any agreement with the Bank or with the Association because of a fail- ure by a Loan Party to perform any of its obligations under such agreement or any other agreement with the Bank.

(e) Extraordinary Situation.

(i) As a result of events which have occurred after the date of the Loan Agreement, an extraordinary situa- tion has arisen which makes it improbable that the Project can be carried out or that a Loan Party or the Project Implementing Entity will be able to perform its obligations under the Legal Agreement to which it is a party.

(ii) An extraordinary situation has arisen under which any further withdrawals under the Loan would be inconsistent with the provisions of Article III, Section 3 of the Bank's Articles ofAgreement.

(f) Event Prior to Effectiveness. The Bank has determined after the Effective Date that prior to such date but after the date of the Loan Agreement, an event has occurred which would have entitled the Bank to suspend the Borrower's right to make withdrawals from the Loan Account if the Loan Agreement had

been effective on the date such event occurred.

(g) Misrepresentation. A representation made by a Loan Party in or pursuant to the Legal Agreements or in or pursuant to any Derivatives Agreement, or any representation or statement furnished by a Loan Par- ty, and intended to be relied upon by the Bank in making the Loan or executing a transaction under a De- rivatives Agreement, was incorrect in any material respect.

(h) Co-financing. Any of the following events occurs with respect to any financing specified in the Loan Agreement to be provided for the Project ("Co-financing") by a financier (other than the Bank or the As- sociation) ("Co-financier".

financier") .
(i)	If the Loan Agreement specifies a date by which the
	agreement with the Co-financier providing for the Co
	financing ("Co-financing Agreement') is to become
	effective, the Co-financing Agreement has failed to become
	effective by that date, or such later date as the Bank has
	established by notice to the Loan Parties ("Co-financing
	Deadline"); provided, however, that the provisions of this
	sub-paragraph shall not apply if the Loan Parties establish
	to the satisfaction of the Bank that adequate funds for the
	Project are available from other sources on terms and
	conditions consistent with the obligations of the Loan
	Parties under the Legal Agreements.
(ii)	Subject to sub-paragraph (iii) of this paragraph: (A) the
	right to withdraw the proceeds of the Co-financing has
	been suspended, canceled or terminated in whole or in
	part, pursuant to the terms of the Co-financing Agreement;
	or (B) the Co-financing has become due and payable prior
	to its agreed maturity.
(iii)	Sub-paragraph (ii) of this paragraph shall not apply if the
	Loan Parties establish to the satisfaction of the Bank that
	(A) such suspension, cancellation, termination or
	prematuring was not caused by the failure of the recipient
	of the Co-financing to perform any of its obligations under
	the Co-financing Agreement; and (B) adequate funds for
	the Project are available from other sources on terms and
	conditions consistent with the obligations of the Loan
	Parties under the Legal Agreements.

•

(i) Assignment of Obligations; Disposition of Assets. The Borrower or the Project implementing Entity (or any other entity responsible for implementing any part of the Project) has, without the consent of the Bank

(i) assigned or transferred, in whole or in part, any of its obligations arising under or entered into pursuant to the Legal Agreements; or (ii) sold, leased, transferred, assigned, or otherwise disposed of any property or assets financed wholly or in part out of the proceeds of the Loan; provided, however, that the provi- sions of this paragraph shall not apply with respect to transactions in the ordinary course of business which, in the opinion of the Bank: (A) do not materially and adversely affect the ability of the Borrower or of the Project implementing Entity (or such other entity) to perform any of its obligations arising under or entered into pursuant to the Legal Agreements or to achieve the objectives of the Project; and

(B) do not materially and adversely affect the financing condition or operation of the Borrower (other than the Member Country) or the Project implementing Entity (or such other entity).

G) Membership. The Member Country: (i) has been suspended from membership in or ceased to be a member of the Bank; or (ii) has ceased to be a member ofthe International Monetary Fund.

(k) Condition ofBorrower or Project Implementing Entity.

(i) Any material adverse change in the condition of the Borrower (other than the Member Country), as represented by it, has occurred prior to the Effective Date.

(ii) The Borrower (other than the Member Country) has become unable to pay its debts as they mature or any action or proceeding has been taken by the Borrower or by others whereby any of the assets of the Borrower shall or may be distributed among its creditors.

(iii) Any action has been taken for the dissolution, disestablishment or suspension of oper- ations of the Borrower (other than the Member Country) or of the Project imple- menting Entity (or any other entity responsible for implementing any part ofthe Project).

(iv) The Borrower (other than the Member Country) or the Project implementing Entity (or any other entity responsible for implementing any part of the Project) has ceased to exist in the same legal form as that prevailing as ofthe date ofthe Loan Agreement.

(v) In the opinion of the Bank, the legal character, ownership or control of the Borrower (other than the Member Country) or of the Project Implementing Entity (or of any other entity responsible for implementing any part of the Project) has changed from that prevailing as of the date of the Legal Agreements so as to materially and adversely affect the ability of the Borrower or of the Project Implementing Entity (or such other entity) to perform any of its obligations arising under or entered in- to pursuant to the Legal Agreements, or to achieve the objectives of the Project.

(I) Ineligibility.The Bank or the Association has declared the Borrower (other than the Member Country) or the Project Implementing Entity ineligible to receive proceeds of any financing made by the Bank or the Association or otherwise to participate in the preparation or implementation of any project financed in whole or in part by the Bank or the Association, as a result of: (i) a determination by the Bank or the As- sociation that the Borrower or the Project Implementing Entity has engaged in fraudulent, corrupt, coer- cive or collusive practices in connection with the use of the proceeds of any financing made by the Bank or the Association; and/or (ii) a declaration by another financier that the Borrower or the Project Imple- menting Entity is ineligible to receive proceeds of any financing made by such financier or otherwise to

participate in the preparation or implementation of any project financed in whole or in part by such finan- cier as a result of a determination by such financier that the Borrower or the Project Implementing Entity has engaged in fraudulent, corrupt, coercive or collusive practices in connection with the use of the pro- ceeds of any financing made by such financier.

(m) Additional Event. Any other event specified in the Loan Agreement for the purposes of this Section has occurred ("Additional Event of Suspension").

Section 7.03.Cancellation by the Bank

If any of the events specified in paragraphs (a) through (f) of this Section occurs with respect to an amount of the Unwithdrawn Loan Balance, the Bank may, by notice to the Loan Parties, terminate the right of the Borrower to make withdrawals with respect to such amount. Upon the giving of such notice, such amount shall be cancelled.

(a) Suspension. 'The right of the Borrower to make withdrawals from the Loan Account has been sus- pended with respect to any amount of the Unwithdrawn Loan Balance for a continuous period ofthirty days.

(b) Amounts not Required. At any time, the Bank determines, after consultation with the Borrower, that an amount of the Unwithdrawn Loan Balance will not be required to finance Eligible Expenditures.

(c) Fraud and Corruption. At any time, the Bank determines, with respect to any amount of the proceeds of the Loan, that corrupt, fraudulent, collusive or coercive practices were engaged in by representatives of the Guarantor or the Borrower or the Project Implementing Entity (or other recipient of the proceeds of the Loan) without the Guarantor, the Borrower or the Project Implementing Entity (or other recipient of the proceeds of the Loan) having taken timely and appropriate action satisfactory to the Bank to address such practices when they occur.

(d) Misprocurement. At any time, the Bank: (i) determines that the procurement of any contract to be financed out of the proceeds of the Loan is inconsistent with the procedures set forth or referred to in the Legal Agreements; and (ii) establishes the amount of expenditures under such contract which would oth- erwise have been eligible for financing out ofthe proceeds ofthe Loan.

(e) Closing Date. After the Closing Date, there remains an Unwithdrawn Loan Balance.

(f) Cancellation of Guarantee. The Bank receives notice from the Guarantor pursuant to Section 7.05 with respect to an amount of the Loan.

Section 7.04.Amounts Subject to Special Commitment not Affected by Cancellation or Suspension by the Bank

No cancellation or suspension by the Bank shall apply to amounts of the Loan subject to any Special Commitment except as expressly provided in the Special Commitment.

Section 7.05.Cancellation ofGuarantee

If the Borrower has failed to pay any required Loan Payment (otherwise than as a result of any act or omission to act of the Guarantor) and such payment is made by the Guarantor, the Guarantor may, after consultation with the Bank, by notice to the Bank and the Borrower, terminate its obligations under the

Guarantee Agreement with respect to any amount of the Unwithdrawn Loan Balance as at the date of receipt of such notice by the Bank; provided that such amount is not subject to any Special Commitment. Upon receipt of such notice by the Bank, such obligations in respect of such amount shall terminate.

Section 0.00.Xxxxxx ofAcceleration

If any of the events specified in paragraphs (a) through (f) of this Section occurs and continues for the period specified (if any), then at any subsequent time during the continuance of the event, the Bank may, by notice to the Loan Parties, declare all or part of the Withdrawn Loan Balance as at the date of such notice to be due and payable immediately together with any other Loan Payments due under the Loan Agreement or these General Conditions. Upon any such declaration, such Withdrawn Loan Balance and Loan Payments shall become immediately due and payable.

(a) Payment Default. A default has occurred in the payment by a Loan Party of any amount due to the Bank or the Association: (i) under any Legal Agreement; or (ii) under any other agreement between the Bank and the Loan Party; or (iii) under any agreement between the Loan Party and the Association (in the case of an agreement between the Guarantor and the Association, under circumstances which would make it unlikely that the Guarantor would meet its obligations under the Guarantee Agreement); or (iv) in con- sequence of any guarantee extended or other financial obligation of any kind assumed by the Bank or the Association to any third party with the agreement of the Loan Party; and such default continues in each case for a period ofthirty days.

(b) Performance Default.

(i) A default has occurred in the performance by a Loan Party of any other obligation under the Legal Agreement to which it is a party or under any Derivatives Agreement, and such default continues for a period of sixty days after notice of such default has been given by the Bank to the Loan Parties.

(ii) A default has occurred in the performance by the Project Implementing Entity of any obligation under the Project Agreement, and such default continues for a period of sixty days after notice of such default has been given by the Bank to the Project Implementing Entity and the Loan Parties.

(c) Co-financing. The event specified in sub-paragraph (h) (ii) (B) of Section 7.02 has occurred, subject to the proviso of paragraph (h) (iii) of that Section.

(d) Assignment of Obligations; Disposition of Assets. Any event specified in paragraph (i) of Section 7.02 has occurred.

(e) Condition ofBorrower or Project Implementing Entity. Any event specified in sub-paragraph (k) (ii),

(k) (iii), (k) (iv) or (k) (v) of Section 7.02 has occurred.

(f) Additional Event. Any other event specified in the Loan Agreement for the purposes of this Section has occurred and continues for the period, if any, specified in the Loan Agreement ("Additional Event of Ac- celeration").

Section 7.07.Acceleration during a Conversion Period

If the Loan Agreement provides for Conversions, and if any notice of acceleration is given pur- suant to Section 7.06 during the Conversion Period for any Conversion: (a) the Borrower shall pay a transaction fee in respect of any early termination of the Conversion, in such amount or at such rate as announced by the Bank from time to time and in effect on the date of such notice; and (b) the Borrower

shall pay any Unwinding Amount owed by it in respect of any early termination of the Conversion, or the Bank shall pay any Unwinding Amount owed by it in respect of any such early termination (after setting off any amounts owed by the Borrower under the Loan Agreement), in accordance with the Con- version Guidelines.

Section 7.08.Effectiveness of Provisions after Cancellation, Suspension or Acceleration

Notwithstanding any cancellation, suspension or acceleration under this Article, all the provi- sions of the Legal Agreements shall continue in full force and effect except as specifically provided in these General Conditions.

ARTICLE VIII

Enforceability; Arbitration

Section 8.01.Enforceability

The rights and obligations of the Bank and the Loan Parties under the Legal Agreements shall be valid and enforceable in accordance with their terms notwithstanding the law of any state or political sub- division thereof to the contrary. Neither the Bank nor any Loan Party shall be entitled in any proceeding under this Article to assert any claim that any provision of these General Conditions or of the Legal Agreements is invalid or unenforceable because of any provision ofthe Articles ofAgreement of the Bank

Section 8.02.Obligations ofthe Guarantor

Except as provided in Section 7.05, the obligations of the Guarantor under the Guarantee Agree- ment shall not be discharged except by performance, and then only to the extent of such performance. Such obligations shall not require any prior notice to, demand upon or action against the Borrower or any prior notice to or demand upon the Guarantor with regard to any default by the Borrower. Such obliga- tions shall not be impaired by any of the following: (a) any extension of time, forbearance or concession given to the Borrower; (b) any assertion of, or failure to assert, or delay in asserting, any right, power or remedy against the Borrower or in respect of any security for the Loan; (c) any modification or amplifica- tion of the provisions of the Loan Agreement contemplated by its terms; or (d) any failure of the Borrow- er or of the Project Implementing Entity to comply with any requirement of any law of the Member Coun- try.

Section 8.03.Failure to Exercise Rights

No delay in exercising, or omission to exercise, any right, power or remedy accruing to any party under any Legal Agreement upon any default shall impair any such right, power or remedy or be con- strued to be a waiver thereof or an acquiescence in such default. No action of such party in respect of any default, or any acquiescence by it in any default, shall affect or impair any right, power or remedy of such party in respect ofany other or subsequent default.

Section 8.04.Arbitration

(a) Any controversy between the parties to the Loan Agreement or the parties to the Guarantee Agreement, and any claim by any such party against any other such party arising under the Loan Agreement or the Guarantee Agreement which has not been settled by agreement of the parties shall be submitted to arbitration by an arbitral tribunal as hereinafter provided ("Arbitral Tribunal").

(b) The parties to such arbitration shall be the Bank on the one side and the Loan Parties on the other side.

(c) The Arbitral Tribunal shall consist ofthree arbitrators appointed as follows: (i) one arbitrator shall be ap- pointed by the Bank; (ii) a second arbitrator shall be appointed by the Loan Parties or, if they do not agree, by the Guarantor; and (iii) the third arbitrator ("Umpire") shall be appointed by agreement of the parties or, if they do not agree, by the President of the International Court of Justice or, failing appointment by said President, by the Secretary-General of the United Nations. If either side fails to appoint an arbitrator, such arbitrator shall be appointed by the Umpire. In case any arbitrator appointed in accordance with this Section resigns, dies or be- comes unable to act, a successor arbitrator shall be appointed in the same manner as prescribed in this Section for the appointment of the original arbitrator and such successor shall have all the powers and duties of such original arbitrator.

(d) An arbitration proceeding may be instituted under this Section upon notice by the party instituting such

proceeding to the other party. Such notice shall contain a statement setting forth the nature ofthe controversy or claim to be submitted to arbitration, the nature of the relief sought and the name of the arbitrator appointed by the party instituting such proceeding. Within thirty days after such notice, the other party shall notify to the party instituting the proceeding the name ofthe arbitrator appointed by such other party.

(e) If within sixty days after the notice instituting the arbitration proceeding, the parties have not agreed upon an Umpire, any party may request the appointment of an Umpire as provided in paragraph (c) ofthis Section.

(f) The Arbitral Tribunal shall convene at such time and place as shall be fixed by the Umpire. Thereafter, the Arbitral Tribunal shall determine where and when it shall sit.

(g) The Arbitral Tribunal shall decide all questions relating to its competence and shall, subject to the provi- sions ofthis Section and except as the parties shall otherwise agree, determine its procedure. All decisions of the Arbitral Tribunal shall be by majority vote.

(h) The Arbitral Tribunal shall afford to all parties a fair hearing and shall render its award in writing. Such award may be rendered by default. An award signed by a majority of the Arbitral Tribunal shall constitute the award of the Arbitral Tribunal. A signed counterpart of the award shall be transmitted to each party. Any such award rendered in accordance with the provisions of this Section shall be final and binding upon the parties to the Loan Agreement and the Guarantee Agreement. Each party shall abide by and comply with any such award rendered by the Arbitral Tribunal in accordance with the provisions of this Section.

(i) The parties shall fix the amount of the remuneration of the arbitrators and such other persons as are required for the conduct of the arbitration proceedings. If the parties do not agree on such amount before the Arbitral Tribunal convenes, the Arbitral Tribunal shall fix such amount as shall be reasonable under the circumstances. The Bank, the Borrower and the Guarantor shall each defray its own expenses in the arbitration proceedings. The costs of the Arbitral Tribunal shall be divided between and borne equally by the Bank on the one side and the Loan Parties on the other. Any question concerning the division of the costs of the Arbitral Tribunal or the procedure for payment of such costs shall be determined by the Arbi- tral Tribunal.

G) The provisions for arbitration set forth in this Section shall be in lieu of any other procedure for the settlement of controversies between the parties to the Loan Agreement and Guarantee Agreement or of any claim by any such party against any other such party arising under such Legal Agreements.

(k) If, within thirty days after counterparts of the award have been delivered to the parties, the award has not been complied with, any party may:

(i) enter judgment upon, or institute a proceeding to enforce, the award in any court ofcompetent jurisdic- tion against any other party; (ii) enforce such judgment by execution; or (iii) pursue any other appropriate remedy against such other party for the enforcement of the award and the provisions of the Loan Agree- ment or Guarantee Agreement. Notwithstanding the foregoing, this Section shall not authorize any entry ofjudgment or enforcement of the award against the Member Country except as such procedure may be available otherwise than by reason of the provisions ofthis Section.

(I) Service of any notice or process in connection with any proceeding under this Section or in connection with any proceeding to enforce any award rendered pursuant to this Section may be made in the manner provided in Section 10.01. The parties to the Loan Agreement and the Guarantee Agreement waive any and all other requirements for the service of any such notice or process.

ARTICLE IX

Effectiveness; Termination

Section 9.01.Conditions ofEffectiveness ofLegal Agreements

The Legal Agreements shall not become effective until evidence satisfactory to the Bank has been furnished to the Bank that the conditions specified in paragraphs (a) through (c) ofthis Section have been satisfied.

(a) The execution and delivery of each Legal Agreement on behalf of the Loan Party or the Project Im- plementing Entity which is a party to such Legal Agreement have been duly authorized or ratified by all necessary governmental and corporate action.

(b) If the Bank so requests, the condition of the Borrower (other than the Member Country) or of the Pro- ject Implementing Entity, as represented or warranted to the Bank at the date of the Legal Agreements, has undergone no material adverse change after such date.

(c) Each other condition specified in the Loan Agreement as a condition of its effectiveness has occurred ("Additional Condition of Effectiveness").

Section 0.00.Xxxxx Opinions or Certificates

As part of the evidence to be furnished pursuant to Section 9.01, there shall be furnished to the Bank an opinion or opinions satisfactory to the Bank of counsel acceptable to the Bank or, if the Bank so requests, a certificate satisfactory to the Bank of a competent official of the Member Country showing the following matters:

(a) on behalf of each Loan Party and the Project Implementing Entity, that the Legal Agreement to which it is a party has been duly authorized or ratified by, and executed and delivered on behalf of, such party and is legally binding upon such party in accordance with its terms; and

(b) each other matter specified in the Loan Agreement or reasonably requested by the Bank in connection with the Legal Agreements for the purpose of this Section ("Additional Legal Matter").

Section 9.03.Effective Date

(a) Except as the Bank and the Borrower shall otherwise agree, the Legal Agreements shall enter into effect on the date upon which the Bank dispatches to the Loan Parties and the Project Implementing Enti- ty notice of its acceptance ofthe evidence required pursuant to Section 9.01 ("Effective Date").

(b) If, before the Effective Date, any event has occurred which would have entitled the Bank to suspend the right of the Borrower to make withdrawals from the Loan Account if the Loan Agreement had been effective, or the Bank has determined that an extraordinary situation provided for under Section 3.08 (a) exists, the Bank may postpone the dispatch of the notice referred to in paragraph

(a) of this Section until such event (or events) or situation has (or have) ceased to exist.

Section 9.04.Termination o/Legal Agreements/or Failure to Become Effective

The Legal Agreements and all obligations of the parties under the Legal Agreements shall termi- nate if the Legal Agreements have not entered into effect by the date ("Effectiveness Deadline") specified in the Loan Agreement for the purpose of this Section, unless the Bank, after consideration ofthe reasons for the delay, establishes a later Effectiveness Deadline for the purpose of this Section. The Bank shall promptly notify the Loan Parties and Project Implementing Entity of such later Effectiveness Deadline.

Section 9.05.Termination 0/Legal Agreements on Full Payment

The Legal Agreements and all obligations of the parties under the Legal Agreements shall forth- with terminate upon full payment of the Withdrawn Loan Balance and all other Loan Payments due.

ARTICLE X

Miscellaneous Provisions

Section 10.0I.Notices and Requests

Any notice or request required or permitted to be given or made under any Legal Agreement-or any other agreement between the parties contemplated by the Legal Agreement shall be in writing. Except as otherwise provided in Section

9.03 (a), such notice or request shall be deemed to have been duly given or made when it has been deliv- ered by hand or by mail, telex or facsimile (or, if permitted under the Legal Agreement, by other electron- ic means) to the party to which it is required or permitted to be given or made at such party's address specified in the Legal Agreement or at such other address as such party shall have designated by notice to the party giving such notice or making such request. Deliveries made by facsimile transmission shall also be confirmed by mail. Section 10.02.Action on Behalfofthe Loan Parties and the Project Implementing Entity

(a) The representative designated by a Loan Party in the Legal Agreement to which it is a party (and the representative designated by the Project Implementing Entity in the Project Agreement) for the purpose of this Section, or any person authorized in writing by such representative for that purpose, may take any action required or permitted to be taken pursuant to such Legal Agreement, and execute any documents required or permitted to be executed pursuant to such Legal Agreement, on behalf of such Loan Party (or the Project Implementing Entity, as the case may be).

(b) The representative so designated by the Loan Party or person so authorized by such representative may agree to any modification or amplification of the provisions of such Legal Agreement on behalf of such Loan Party by written instrument executed by such representative or authorized person; provided

that, in the opinion of such representative, the modification or amplification is reasonable in the circum- stances and will not substantially increase the obligations of the Loan Parties under the Legal Agree- ments. The Bank may accept the execution by such representative or other authorized person of any such instrument as conclusive evidence that such representative is of such opinion.

Section 10.03.Evidence ofAuthority

The Loan Parties and the Project Implementing Entity shall furnish to the Bank: (a) sufficient ev- idence of the authority of the person or persons who will, on behalf of such party, take any action or execute any documents required or permitted to be taken or executed by it under the Legal Agreement to which it is a party; and (b) the authenticated specimen signature of each such person.

Section 10.04.Execution in Counterparts

Each Legal Agreement may be executed in several counterparts, each of which shall be an orig-

inal.

Section 10.05.Disclosure

The Bank may disclose the Legal Agreements and any information related to the Legal Agreements in

accordance with its policy on access to information, in effect at the time ofsuch disclosure.

APPENDIX

Definitions

I. "Additional Condition of Effectiveness" means any condition of effectiveness specified in the Loan Agreement for the pnrpose of Section 9.01 (c).

2. "Additional Event of Acceleration" means any event of acceleration specified in the Loan Agreement for the purpose of Section 7.06 (t).

3. "Additional Event of Suspension" means any event of suspension specified in the Loan Agreement for the pnrpose of Section 7.02 (m).

4. "Additional Legal Matter" means each matter specified in the Loan Agreement or requested by the Bank in connection with the Legal Agreements for the purpose of Section 9.02 (b).

5. "Approved Currency" means, for a Currency Conversion, any Currency approved by the Bank, which, upon the Conversion, becomes the Loan Currency.

6. "Arbitral Tribunal" means the arbitral tribunal established pursuant to Section 8.04.

7. "Assets" includes property, revenue and claims of any kind.

8. "Association" means the International Development Association.

9. "Bank" means the International Bank for Reconstruction and Development.

10. "Bank's Address" means the Bank's address specified in the Legal Agreements for the purpose of Sec- tion 10.0 I.

II. "Borrower" means the party to the Loan Agreement to which the Loan is extended.

12. "Borrower's Address" means the Borrower's address specified in the Loan Agreement for the purpose of Section 10.01.

13. "Borrower's Representative" means the Borrower's representative specified in the Loan Agreement for the purpose of Section 10.02.

14. "Closing Date" means the date specified in the Loan Agreement (or such later date as the Bank shall establish by notice to the Loan Parties) after which the Bank may, by notice to the Loan Parties, terminate the right of the Borrower to withdraw from the Loan Account.

15. "Co-financier" means the financier (other than the Bank or the Association) referred to in Section 7.02

(h) providing the Co-financing. If the Loan Agreement specifies more than one such financier, "Co-- financier" refers separately to each of such financiers.

16. "Co-financing" means the financing referred to in Section 7.02 (h) and specified in the Loan Agree- ment provided or to be provided for the Project by the Co-financier. If the Loan Agreement specifies more than one such financing, "Co-financing" refers separately to each of such financings.

17. "Co-financing Agreement" means the agreement referred to in Section 7.02 (h) providing for the Co- financing.

18. "Co-financing Deadline" means the date referred to in Section 7.02 (h) (i) and specified in the Loan Agreement by which the Co-financing Agreement is to become effective. If the Loan Agreement specifies

more than one such date, "Co-financing Deadline" refers separately to each of such dates.

19. "Conversion" means any of the following modifications ofthe terms of all or any portion of the Loan that has been requested by the Borrower and accepted by the Bank: (a) an Interest Rate Conversion; (b) a Currency Conversion; or (c) the establishment of an Interest Rate Cap or Interest Rate Collar on the Vari- able Rate; each as provided in the Loan Agreement.

20. "Conversion Date" means, for a Conversion, the Execution Date or such other date as the Bank shall determine on which the Conversion enters into effect, as further specified in the Conversion Guidelines.

21. "Conversion Guidelines" means, for a Conversion, the "Guidelines for Conversion of Loan Terms" issued from time to time by the Bank and in effect at the time of the Conversion.

22. "Conversion Period" means, for a Conversion, the period from and including the Conversion Date to and including the last day of the Interest Period in which the Conversion terminates by its terms; provid- ed, that

solely for the purpose of enabling the final payment of interest and principal under a Currency Conversion to be made in the Approved Currency, such period shall end on the Payment Date immediately following the last day of said final applicable Interest Period.

23. "Counterparty" means a party with which the Bank enters into a derivatives transaction in order to effect a Conversion.

24. "Currency" means the currency of a country and the Special Drawing Right of the International Monetary Fund. "Currency of a country" means the currency which is legal tender for the payment of public and private debts in that country.

25. "Currency Conversion" means a change of the Loan Currency of all or any amount of the Unwith- drawn Loan Balance or the Withdrawn Loan Balance to an Approved Currency.

26. "Currency Hedge Transaction" means, for a Currency Conversion, one or more Currency swap trans- actions entered into by the Bank with a Counterparty as of the Execution Date and in accordance with the Conversion Guidelines, in connection with the Currency Conversion.

27. "Default Interest Period" means for any overdue amount of the Withdrawn Loan Balance, each Inter- est Period during which such overdue amount remains unpaid; provided, however, that the first such De- fault Interest Period shall commence on the 31 stday following the date on which such amount becomes overdue, and the final such Default Interest Period shall end on the date at which such amount is fully paid.

28. "Default Interest Rate" means for any Default Interest Period:

(a) in respect of any amount ofthe Withdrawn Loan Balance to which the Default Interest Rate applies and for which interest was payable at a Variable Rate immediately prior to the application of the Default Interest Rate: the Default Variable Rate plus one half of one percent (0.5%); and

(b) in respect of any amount of the Withdrawn Loan Balance to which the Default Interest Rate applies and for which interest was payable at a Fixed Rate immediately prior to the application of the Default Interest Rate: Default Reference Rate plus the Fixed Spread plus one half of one percent (0.5%).

29. "Default Reference Rate" means the Reference Rate for the relevant Interest Period; it being under- stood that for the initial Default Interest Period, Default Reference Rate shall be equal to Reference Rate for the Interest Period in which the amount referred to in Section 3.02 (e) first becomes overdue.

30. "Default Variable Rate" means the Variable Rate for the relevant Interest Period; provided that:

(a) for the initial Default Interest Period, Default Variable Rate shall be equal to the Variable Rate for the Interest Period in which the amount referred to in Section 3.02 (e) first becomes overdue; and

(b) for an amount of the Withdrawn Loan Balance to which the Default Interest Rate applies and for which interest was payable at a Variable Rate based on a Fixed Reference Rate and the Variable Spread immediately prior to the application of the Default Interest Rate, "Default Variable Rate" shall be equal to the Default Reference Rate plus the Variable Spread.

31. "Derivatives Agreement" means any derivatives agreement between the Bank and a Loan Party for the purpose of documenting and confirrning one or more derivatives transactions between the Bank and such Loan Party, as such agreement may be amended from time to time. "Derivatives Agreement" includes all schedules, annexes and agreements supplemental to the Derivatives Agreement.

32. "Disbursed Amount" means, for each Interest Period, the aggregate principal amount of the Loan withdrawn from the Loan Account during the Interest Period.

33. "Dollar", "$" and "USD" each means the lawful currency of the United States of America.

34. "Effective Date" means the date on which the Legal Agreements enter into effect pursuant to Section

9.03 (a).

35. "Effectiveness Deadline" means the date referred to in Section 9.04 after which the Legal Agreements shall terminate ifthey have not entered into effect as provided in that Section.

36. "Eligible Expenditure" means anexpenditure the payment for which

meets the requirements of Section 2.05 and which IS consequently eligible for financing out of the pro- ceeds of the Loan.

37. "EURIBOR" means for any Interest Period, the Euro interbank offered rate for deposits in Euro for six months, expressed as a percentage per annum, that appears on the Relevant Rate Page as of 11 :00 a.m., Brussels time, on the Reference Rate Reset Date for the Interest Period.

38. '''Euro', '€' and 'EUR'" each means the lawful currency of the Euro Area.

39. "Euro Area" means the economic and monetary union of member states ofthe European Union that adopt the single currency in accordance with the Treaty establishing the European Community, as amend- ed by the Treaty on European Union.

40. "Execution Date" means, for a Conversion, the date on which the Bank has undertaken all actions necessary to effect the Conversion, as reasonably determined by the Bank.

41. "External Debt" means any debt which is or may become payable in a Currency other than the Cur- rency ofthe Member Country.

42. "Financial Center" means: (a) for a Currency other than Euro, the principal financial center for the relevant Currency; and (b) for the Euro, the principal financial center of the relevant member state in the Euro Area.

43. "Financial Statements" means the financial statements to be maintained for the Project as provided in Section 5.09.

44. "Fixed Rate" means:

(a) upon an Interest Rate Conversion from the Variable Rate, a fixed rate of interest applicable to the amount of the Loan to which the Conversion applies, equal to either: (i) the interest rate that reflects the fixed rate of interest payable by the Bank under the Interest Hedge Transac- tion relating to the Conversion (adjusted in accordance with the Conversion Guidelines for the difference, if any, between the Variable Rate and the variable rate of interest receivable by the Bank under the Interest Hedge Transaction); or

(ii) if the Bank so determines in accordance with the Conversion Guidelines, the Screen Rate; and

(b) upon a Currency Conversion of an amount of the Loan that shall accrue interest at a fixed rate during the Conversion Period, a fixed rate of interest applicable to such amount equal to either: (i) the interest rate that reflects the fixed rate of interest payable by the Bank under the Currency Hedge Transaction relating to the Currency Conversion; or (ii) if the Bank so determines in accordance with the Conversion Guidelines, the interest rate compo- nent ofthe Screen Rate.

45. "Fixed Reference Rate" means:

(a) upon an Interest Rate Conversion from a Variable Rate based on a Reference Rate and the Variable Spread to a Variable Rate based on a "Fixed Reference Rate" and the Variable Spread, the fixed rate equivalent of the relevant Reference Rate for the Loan Currency applicable to the amount of the Loan to which the Conversion applies, which fixed rate equivalent shall be equal to either: (i) the interest rate that reflects the fixed rate of interest payable by the Bank under the Interest Hedge Transaction or Currency Hedge Transaction relating to the Conversion; or (ii) if the Bank so determines in accordance with the Conversion Guidelines, the Screen Rate; and

(b) upon a Currency Conversion of an amount of the Loan that shall accrue interest at a Variable Rate based on a "Fixed Reference Rate" and the Variable Spread, the fixed rate equivalent of: (i) the relevant Reference Rate for the Approved Currency applicable to the amount ofthe Loan to which the Conversion applies; plus (ii) a spread (if any) to the relevant Reference Rate as reasonably determined by the Bank in accordance with the Conversion Guidelines, which fixed rate equivalent shall be equal to either:

(A) the interest rate that reflects the fixed rate of interest payable by the Bank under the Currency Hedge Transaction relating to the Conversion; or (8) if the Bank so determines in accordance with the Conversion Guidelines, the interest rate component of the Screen Rate.

46. "Fixed Spread" means the Bank's fixed spread for the initial Loan Currency in effect at 12:01 a.m. Washington, D.C. time, one calendar day prior to the date of the Loan Agreement and expressed as a percentage per annum; provided, that: (a) for purposes of determining the Default Interest Rate, pursuant to Section 3.02 (e), that is applicable to an amount of the Withdrawn Loan Balance on which interest is payable at a Fixed Rate, the "Fixed Spread" means the Bank's fixed spread in effect at 12:01 a.m. Washington, D.C. time, one calendar day prior to the date of the Loan Agree- ment, for the Currency of denomination of such amount; (b) for purposes of a Conversion of the Variable Rate based on a Variable Spread to a Variable Rate based on a Fixed Spread, and for purposes of fixing the Variable Spread pursuant to Section 4.02, "Fixed Spread" means the Bank's fixed spread for the Loan Currency in effect at 12:01 a.m. Washington, D.C. time on the Conver- sion Date; and (c) upon a Currency Conversion of all or any amount of the Unwithdrawn Loan Balance, the Fixed Spread shall be adjusted on the Execution Date in the manner specified in the Conversion Guidelines.

47. "Foreign Expenditure" means an expenditure in the Currency of any country other than the Member Country for goods, works or services supplied from the territory of any country other than the Member Country.

48. "Front-end Fee" means the fee specified in the Loan Agreement for the purpose of Section 3.01.

49. "Guarantee Agreement" means the agreement between the Member Country and the Bank providing for the guarantee of the Loan, as such agreement may be amended from time to time. "Guarantee Agree- ment" includes these General Conditions as applied to the Guarantee Agreement, and all appendices, schedules and agreements supplemental to the Guarantee Agreement.

50. "Guarantor" means the Member Country which is a party to the Guarantee Agreement.

51. "Guarantor's Address" means the Guarantor's address specified in the Guarantee Agreement for the purpose of Section 10.0 I.

52. "Guarantor's Representative" means the Guarantor's representative specified in the Loan Agreement for the purpose of Section 10.02.

53. "Incurring of debt" includes the assumption or guarantee of debt and any renewal, extension, or modi- fication of the terms of the debt or of the assumption or guarantee of the debt.

54. "Interest Hedge Transaction" means, for an Interest Rate Conversion, one or more interest rate swap transactions entered into by the Bank with a Counterparty as of the Execution Date and in accordance with the Conversion Guidelines, in connection with the Interest Rate Conversion.

55. "Interest Period" means the initial period from and including the date of the Loan Agreement to but excluding the first Payment Date occurring thereafter, and after the initial period, each period from and including a Payment Date to but excluding the next following Payment Date.

56. "Interest Rate Cap" means a ceiling that sets an upper limit: (a) in respect of any portion of the loan that accrues interest at a Variable Rate based on a Reference Rate and the Fixed Spread, for the Variable Rate; or (b) in respect of any portion of the loan that accrues interest at a Variable Rate based on a Refer- ence Rate and the Variable Spread, for the Reference Rate.

57. "Interest Rate Collar" means a combination of a ceiling and a floor that sets an upper and a lower lim- it: (a) in respect of any portion of the loan that accrues interest at a Variable Rate based on a Reference Rate and the Fixed Spread, for the Variable Rate; or (b) in respect of any portion of the loan that accrues interest at a Variable Rate based on a Reference Rate and the Variable Spread, for the Reference Rate.

58. "Interest Rate Conversion" means a change of the interest rate basis applicable to all or any amount of the Withdrawn Loan Balance: (a) from the Variable Rate to the Fixed Rate or vice versa; or (b) from a Variable Rate based on a Variable Spread to a Variable Rate based on a Fixed Spread; or (c) from a Vari- able Rate based on a Reference Rate and the Variable Spread to a Variable Rate based on a Fixed Refer- ence Rate and the Variable Spread or vice versa.

59. "Legal Agreement" means any of the Loan Agreement, the Guarantee Agreement or the Project Agreement. "Legal Agreements" means collectively, all of such agreements.

60. "LIBOR" means for any Interest Period, the London interbank offered rate for deposits inthe relevant Loan Currency for six months, expressed as a percentage per annum, that appears on the Relevant Rate Page as of 11 :00 a.m. London time on the Reference Rate Reset Date for the Interest Period.

61. "Lien" includes mortgages, pledges, charges, privileges and priorities of any kind.

62. "Loan" means the loan provided for in the Loan Agreement.

63. "Loan Account" means the account opened by the Bank in its books in the name of the Borrower to which the amount of the Loan is credited.

64. "Loan Agreement" means the loan agreement between the Bank and the Borrower providing for the Loan, as such agreement may be amended from time to time. "Loan Agreement" includes these General Conditions as applied to the Loan Agreement, and all appendices, schedules and agreements supplemental to the Loan Agreement.

65. "Loan Currency" means the Currency in which the Loan is denominated; provided that if the Loan Agreement provides for Conversions, "Loan Currency" means the Currency in which the Loan is denom- inated from time to time. Ifthe Loan is denominated in more than one currency, "Loan Currency" refers separately to each of such Currencies.

66. "Loan Party" means the Borrower or the Guarantor. "Loan Parties" means collectively, the Borrower and the Guarantor.

67. "Loan Payment" means any amount payable by the Loan Parties to the Bank pursuant to the Legal Agreements or these General Conditions, including (but not limited to) any amount of the Withdrawn Loan Balance, interest, the Front-end Fee, interest at the Default Interest Rate (if any), any prepayment premium, any transaction fee for a Conversion or early ternination of a Conversion, the Variable Spread Fixing Charge (if any), any premium payable upon the establishment of an Interest Rate Cap or Interest Rate Collar, and any Unwinding Amount payable by the Borrower.

68. "Local Expenditure" means an expenditure: (a) in the Currency of the Member Country; or (b) for goods, works or services supplied from the territory of the Member Country; provided, however, that ifthe Currency of the Member Country is also that of another country from which goods, works or services are supplied, an expenditure in such Currency for such goods, works or services shall be deemed to be a For- eign Expenditure.

69. "London Banking Day" means any day on which commercial banks are open for general business (including dealings in foreign exchange and foreign Currency deposits) in London.

70. "Maturity Fixing Date" means, for each Disbursed Amount, the first day of the Interest Period next following the Interest Period in which the Disbursed Amount is withdrawn.

71. "Member Country" means the member of the Bank which is the Borrower or the Guarantor.

72. "Payment Date" means each date specified in the Loan Agreement occurring on or after the date ofthe Loan Agreement on which interest is payable.

73. "Preparation Advance" means the advance referred to in the Loan Agreement and repayable in ac- cordance with Section 2.07 (a).

74. "Principal Payment Date" means each date specified in the Loan Agreement on which all or any por- tion of the principal amount of the Loan is payable.

75. "Project" means the project described in the Loan Agreement, for which the Loan is extended, as the description of such project may be amended from time to time by agreement between the Bank and the Borrower.

76. "Project Agreement" means the agreement between the Bank and the Project implementing Entity relating to the implementation of all or part of the Project, as such agreement may be amended from time to time. "Project Agreement" includes these General Conditions as applied to the Project Agreement, and all appendices, schedules and agreements supplemental to the Project Agreement.

77. "Project implementing Entity" means a legal entity (other than the Borrower or the Guarantor) which is responsible for implementing all or a part ofthe Project and which is a party to the Project Agreement. Ifthe Bank enters into a Project Agreement with more than one such entity, "Project implementing Entity" refers separately to each such entity.

78. "Project implementing Entity's Address" means the Project implementing Entity's address specified in the Project Agreement for the purpose of Section 10.01. •

79. "Project implementing Entity's Representative" means the Project implementing Entity's representa- tive specified in the Project Agreement for the purpose of Section 10.02 (a).

80. "Project Report" means each report on the Project to be prepared and furnished to the Bank pursuant to Section 5.08 (b).

81. "Public Assets" means assets of the Member Country, of any of its political or administrative subdivi- sions and of any entity owned or controlled by, or operating for the account or benefit of, the Member Country or any such subdivision, including gold and foreign exchange assets held by any institution per- forming the functions of a central bank or exchange stabilization fund, or similar functions, for the Mem- ber Country.

82. "Reference Rate" means, for any Interest Period:

(a) for USD and JPY, LIBOR for the relevant Loan Currency. If such rate does not appear on the Rele- vant Rate Page, the Bank shall request the principal London office of each of four major banks to provide a quotation of the rate at which it offers six-month deposits in the relevant Loan Currency to leading banks in the London interbank market at approximately II:00 a.m. London time on the Reference Rate Reset Date for the Interest Period. If at least two such quotations are provided, the rate for the Interest Period shall be the arithmetic mean (as determined by the Bank) of the quotations. If less than two quota- tions are provided as requested, the rate for the Interest Period shall be the arithmetic mean (as determined by the Bank) of the rates quoted by four major banks selected by the Bank in the relevant Financial Cen- ter, at approximately 11 :00 a.m. in the Financial Center, on the Reference Rate Reset Date for the Inter-

est Period for loans in the relevant Loan Currency to leading banks for six months. If less than two of the banks so selected are quoting such rates, the Reference Rate for the relevant Loan Currency for the Inter- est Period shall be equal to the respective Reference Rate in effect for the Interest Period immediately preceding it;

(b) for Euro, EURIBOR. If such rate does not appear on the Relevant Rate Page, the Bank shall request the principal Euro Area office of each of four major banks to provide a quotation of the rate at which it offers six-month deposits in Euro to leading banks in the Euro area interbank market at approximately 11:00 a.m. Brussels time on the Reference Rate Reset Date for the Interest Period. If at least two such quotations are provided, the rate for the Interest Period shall be the arithmetic mean (as determined by the Bank) of the quotations. If less than two quotations are provided as requested, the rate for the Interest Period shall be the arithmetic mean (as determined by the Bank) of the rates quoted by four major banks selected by the Bank in the relevant Financial Center, at approximately 11 :00 a.m. in the Financial Cen- ter, on the Reference Rate Reset Date for the Interest Period for loans in Euro to leading banks for six months. If less than two of the banks so selected are quoting such rates, the Reference Rate for Euro for the Interest Period shall be equal to the Reference Rate in effect for the Interest Period immediately pre- ceding it;

(c) if the Bank determines that LIBOR (in respect of USD and JPY) or EURIBOR (in respect of Euro) has permanently ceased to be quoted for such currency, such other comparable reference rate for the relevant currency as the Bank shall determine pursuant to Section 3.02 (c); and

(d) for any currency other than USD, Euro or JPY: (i) such reference rate for the initial Loan Currency as shall be specified or referred to in the Loan Agreement; or (ii) in the case of a Currency Conversion to such other currency, such reference rate as shall be determined by the Bank in accordance with the Con- version Guidelines and notice thereof given to the Borrower in accordance with Section 4.01(b).

83. "Reference Rate Reset Date" means:

(a) for USD and JPY, the day two London Banking Days prior to the first day of the relevant Interest Period (or: (i) in the case of the initial Interest Period, the day two London Banking Days prior to the first or fifteenth day of the month in which the Loan Agreement is signed, whichever day immediately pre- cedes the date of the Loan Agreement; provided that if the date of the Loan Agreement falls on the first or fifteenth day of such month, the Reference Rate Reset Date shall be the day two London Banking Days prior to the date of the Loan Agreement; and (ii) if the Conversion Date for a Currency Conversion of an amount of the Unwithdrawn Loan Balance to either USD or JPY falls on a day other than a Payment Date, the initial Reference Rate Reset Date for the Approved Currency shall be the day two London Banking Days prior to the first or fifteenth day of the month in which the Conversion Date falls, whichev- er day immediately precedes the Conversion Date; provided, that if the Conversion Date falls on the first or fifteenth day of such month, the Reference Rate Reset Date for the Approved Currency shall be the day two London Banking Days prior to the Conversion Date);

(b) for Euro, the day two TARGET Settlement Days prior to the first day of the relevant Interest Period (or: (i) in the case ofthe initial Interest Period the day two TARGET Settlement Days prior to the first or fifteenth day of the month in which the Loan Agreement is signed, whichever day immediately precedes the date of the Loan Agreement; provided that if the date of the Loan Agreement falls on the first or fif- teenth day of such month, the Reference Rate Reset Date shall be the day two TARGET Settlement Days prior to the date of the Loan Agreement; and (ii) if the Conversion Date of a Currency Conversion of an amount of the Unwithdrawn Loan Balance to Euro falls on a day other than a Payment Date, the initial Reference Rate Reset Date for the Approved Currency shall be the day two TARGET Settlement Days prior to the first or fifteenth day of the month in which the Conversion Date falls, whichever day immedi- ately precedes the Conversion Date; provided that if the Conversion Date falls on the first or fifteenth day of such month, the Reference Rate Reset Date for the Approved Currency shall be the day two TARGET Settlement Days prior to the Conversion Date);

(c) if, for a Currency Conversion to an Approved Currency, the Bank determines that market practice for the determination of the Reference Rate Reset Date is on a date other than as set forth in sub-paragraphs

(a) or (b) ofthis Section, the Reference Rate Reset Date shall be such other date as further specified in the Conversion Guidelines; and

(d) for any currency other than USD, Euro and JPY: (i) such day for the initial Loan Currency as shall be specified or referred to in the Loan Agreement; or (ii) in the case of a Currency Conversion to such other currency, such day as shall be determined by the Bank and notice thereof given to the Borrower in ac- cordance with Section 4.0 I (b).

84. "Relevant Rate Page" means the display page designated by an established financial market data pro- xxxxx selected by the Bank as the page for the purpose of displaying the Reference Rate for deposits in the Loan Currency.

85. "Respective Part of the Project" means, for the Borrower and for any Project Implementing Entity, the part of the Project specified in the Legal Agreements to be carried out by it.

86. "Screen Rate" means:

(a) for an Interest Rate Conversion from the Variable Rate to the Fixed Rate, the fixed rate of interest determined by the Bank on the Execution Date on the basis of the Variable Rate and market rates dis- played by established information vendors reflecting the Conversion Period, the Currency amount and the repayment provisions of the amount of the Loan to which the Conversion applies;

(b) for an Interest Rate Conversion from the Fixed Rate to the Variable Rate, the variable rate of interest determined by the Bank on the Execution Date on the basis of the Fixed Rate and market rates displayed by established information vendors reflecting the Conversion Period, the Currency amount and the re- payment provisions of the amount of the Loan to which the Conversion applies;

(c) for an Interest Rate Conversion from a Variable Rate based on a Reference Rate and the Variable Spread to a Variable Rate based on a Fixed Reference Rate and the Variable Spread (or vice versa), the variable rate of interest determined by the Bank on the Execution Date on the basis of the Reference Rate or Fixed Reference Rate (as the case may be) applicable prior to the Conversion and market rates dis- played by established information vendors reflecting the Conversion Period, the Currency amount and the repayment provisions of the amount to which the Conversion applies;

(d) for a Currency Conversion of an amount of the Unwithdrawn Loan Balance, the exchange rate be- tween the Loan Currency immediately prior to the Conversion and the Approved Currency, determined by the Bank on the Execution Date on the basis of market exchange rates displayed by established infor- mation vendors;

(e) for a Currency Conversion of an amount of the Withdrawn Loan Balance that accrues interest at a Variable Rate based on:

(i) a Reference Rate and the Fixed Spread, each of: (A) the exchange rate between the Loan Currency immediately prior to the Conversion and the Approved Currency, determined by the Bank on the Execu- tion Date on the basis of market exchange rates displayed by established information vendors; and (B) the fixed rate of interest or the variable rate of interest (whichever applies to the Conversion), determined by the Bank on the Execution Date in accordance with the Conversion Guidelines on the basis of the interest rate applicable to such amount immediately prior to the Conversion and market rates displayed by estab- lished information vendors reflecting the Conversion Period, the Currency amount and the repayment provisions of the amount of the Loan to which the Conversion applies; or

(ii) a Reference Rate or a Fixed Reference Rate and the Variable Spread, each of: (A) the exchange rate between the Loan Currency immediately prior to the Conversion and the Approved Currency, determined

by the Bank on the Execution Date on the basis of market exchange rates displayed by established infor- mation vendors; and (B) the fixed rate of interest or the variable rate of interest (whichever applies to the Conversion), determined by the Bank on the Execution Date in accordance with the Conversion Guide- lines on the basis of the Reference Rate or the Fixed Reference Rate (as the case may be) applicable to such amount immediately prior to the Conversion plus a spread (if any) and market rates displayed by established information vendors reflecting the Conversion Period, the Currency amount and the repay- ment provisions ofthe amount of the Loan to which the Conversion applies; and

(f) for the early termination of a Conversion, each of the rates applied by the Bank for the purpose of cal- culating the Unwinding Amount

as of the date of such early termination in accordance with the Conversion Guidelines on the basis of market rates displayed by established information vendors reflecting the remaining Conversion Period, Currency amount and repayment provisions of the amount of the Loan to which the Conversion and such early termination apply.

87. "Special Commitment" means any special commitment entered into or to be entered into by the Bank pursuant to Section 2.02.

88. "TARGET Settlement Day" means any day on which the Trans European Automated Real-Time Gross Settlement Express Transfer system is open for the settlement of Euro.

89. "Taxes" includes imposts, levies, fees and duties of any nature whether in effect at the date ofthe Le- gal Agreements or imposed after that date.

90. "Umpire" means the third arbitrator appointed pursuant to Section 8.04 (c).

9 I. "Unwinding Amount" means, for the early termination of a Conversion:

(a) an amount payable by the Borrower to the Bank equal to the net aggregate amount payable by the Bank under transactions undertaken by the Bank to terminate the Conversion, or if no such transactions are undertaken, an amount determined by the Bank on the basis of the Screen Rate, to represent the equivalent of such net aggregate amount; or (b) an amount payable by the Bank to the Borrower equal to the net aggregate amount receivable by the Bank under transactions undertaken by the Bank to terminate the Conversion, or if no such transactions are undertaken, an amount determined by the Bank on the basis of the Screen Rate, to represent the equivalent of such net aggregate amount.

92. "Unwithdrawn Loan Balance" means the amount of the Loan remaining unwithdrawn from the Loan Account from time to time.

93. "Variable Rate" means a variable rate of interest equal to the sum of: (1) the Reference Rate for the initial Loan Currency; plus (2) the Variable Spread, if interest accrues at a rate based on the Variable Spread, or the Fixed Spread if interest accrues at a rate based on the Fixed Spread; provided, that:

(a) upon an Interest Rate Conversion from a variable rate based onthe Variable Spread to a variable rate based on a Fixed Spread, the "Variable Rate" applicable to the amount of the Loan to which the Conver- sion applies shall be equal to the sum of: (i) the Reference Rate for the Loan Currency; plus (ii) the Fixed Spread; plus (iii) the Variable Spread Fixing Charge;

(b) upon an Interest Rate Conversion from the Fixed Rate, the "Variable Rate" applicable to the amount ofthe Loan to which the Conversion applies shall be equal to either: (i) the sum of:

(A) the Reference Rate for the Loan Currency; plus (B) the spread to the Reference Rate, if any, payable by the Bank under the Interest Hedge Transaction relating to the Conversion (adjusted in accordance with the Conversion Guidelines for the difference, if any, between the Fixed Rate and the fixed rate of interest receivable by the Bank under the Interest Hedge Transaction); or

(ii) if the Bank so determines in accordance with the Conversion Guidelines, the Screen Rate;

(c) upon an Interest Rate Conversion from a variable rate based on:

(i) a Reference Rate and the Variable Spread to a variable rate based on a Fixed Reference Rate and the Variable Spread, the "Variable Rate" applicable to the amount of the Loan to which the Conversion ap- plies shall be equal to the sum of: (A) the Fixed Reference Rate for the Loan Currency; plus (B) a spread

(ifany) to the Reference Rate as reasonably determined by the Bank in accordance with the Conversion Guidelines; plus (C) the Variable Spread; or

(ii) a Fixed Reference Rate and the Variable Spread to a variable rate based on a Reference Rate and the Variable Spread, the "Variable Rate" applicable to the amount of the Loan to which the Conversion ap- plies shall be equal to the sum of: (A) the Reference Rate for the Loan Currency; plus (B) a spread (if any) to the Reference Rate as reasonably determined by the Bank in accordance with the Conversion Guidelines; plus (C) the Variable Spread;

(d) upon a Currency Conversion to an Approved Currency of an amount of the Unwithdrawn Loan Bal- ance, and upon withdrawal of any of such amount, the "Variable Rate" applicable to such amount shall be equal to the sum of: (i) the Reference Rate for the Approved Currency; plus (ii) the Variable Spread if such amount accrues interest at a rate based on the Variable Spread, or the Fixed Spread if such amount accrues interest at a rate based on the Fixed Spread; and

(e) upon a Currency Conversion to an Approved Currency of an amount of the Withdrawn Loan Balance that accrues interest at a variable rate during the Conversion Period, the "Variable Rate" applicable to such amount shall:

(i) for a loan that accrues interest at a variable rate based on a Reference Rate and the Fixed Spread, be equal to either:

(A) the sum of: (I) the Reference Rate for the Approved Currency; plus (2) the spread to the Reference Rate, if any, payable by the Bank under the Currency Hedge Transaction relating to the Currency Conver- sion; or

(B) if the Bank so determines in accordance with the Conversion Guidelines, the interest rate component of the Screen Rate; or

(ii) for a loan that accrues interest at a variable rate based on a Reference Rate and the Variable Spread, be equal to the sum of: (A) the Reference Rate for the Approved Currency; plus (B) a spread (if any) to the Reference Rate for the Approved Currency as reasonably determined by the Bank in accordance with the Conversion Guidelines; plus (C) the Variable Spread; or

(iii) for a loan that accrues interest at a variable rate based on a Fixed Reference Rate and the Variable Spread, be equal to the sum of: (A) the Fixed Reference Rate for the Approved Currency; plus (B) a spread (if any) to the Reference Rate for the Approved Currency as reasonably determined by the Bank in accordance with the Conversion Guidelines; plus (C) the Variable Spread.

94. "Variable Spread" means, for each Interest Period: (I) the Bank's standard lending spread for Loans in effect at 12:01 a.m. Washington,

D.C. time, one calendar day prior to the date of the Loan Agreement.;

(2) minus (or plus) the weighted average margin, for the Interest Period, below (or above) the Reference Rate for six-month deposits, in respect of the Bank's outstanding borrowings or portions thereof allocated by it to fund loans that carry interest at a rate based on the Variable Spread; as reasonably determined by the Bank and expressed as a percentage per annum. In the case of a Loan denominated in more than one Currency, "Variable Spread" applies separately to each of such Currencies.

95. "Variable Spread Fixing Charge" means, for a Conversion to a Fixed Rate or a Fixed Spread of all or any portion of the Loan that accrues interest at a rate based on the Variable Spread, the Bank's charge for such a Conversion in effect 12:01 a.m. Washington, D.C. time, one calendar day prior to the execution ofthe Conversion.

96. "Withdrawn Loan Balance" means the amounts of the Loan withdrawn from the Loan Account and outstanding from time to time.

97. "Yen", "¥" and "JPY" each means the lawful currency ofJapan

Бр. зајма 8255-YF

СПОРАЗУМ О ЗАЈМУ

(Пројекат рехабилитације путева и унапређења безбедности саобраћаја)

између

РЕПУБЛИКЕ СРБИЈЕ

и

МЕЂУНАРОДНЕ БАНКЕ ЗА ОБНОВУ И РАЗВОЈ

дана 27. новембра 2013. године.

СПОРАЗУМ О ЗАЈМУ

Споразум о зајму (у даљем тексту: „Споразумˮ) је склопљен дана 27. новембра 2013. године, између РЕПУБЛИКЕ СРБИЈЕ (у даљем тексту: „Зајмопримацˮ) и МЕЂУНАРОДНЕ БАНКЕ ЗА ОБНОВУ И РАЗВОЈ (у даљем тексту: „Банкаˮ). Овим се Зајмопримац и Банка споразумевају о следећем:

Члан 1.

ОПШТИ УСЛОВИ; ДЕФИНИЦИЈЕ И ЗНАЧЕЊА

1.01. Општи услови (као што је дефинисано у Анексу овога споразума) чине саставни део овог споразума.

1.02. Уколико контекст не захтева другачије, изрази писани великим словима, који се користе у овом споразуму, имају значење које им је приписано у Општим условима или у анексу овога споразума.

Члан 2. ЗАЈАМ

2.01. Банка прихвата да дâ на зајам Зајмопримцу, под условима утврђеним или наведеним у овом споразуму, износ од седамдесеттри милиона осамстотина хиљада евра (ЕУР 73.800.000), а тај износ може бити повремено конвертован кроз курс валута у складу с одредбама члана 2. став 2.07 овог споразума (у даљем тексту: „Зајамˮ) ради помоћи у финансирању Пројекта описаног у Програму 1 овог споразума (у даљем тексту:

„Пројекатˮ).

2.02. Зајмопримац може повлачити средства Зајма у складу с Одељком IV Програма 2 овога споразума.

2.03. Приступна накнада, коју плаћа Зајмопримац, једнака је једној четвртини процента (0,25%) износа Зајма.

2.04. Камата, коју плаћа Зајмопримац за сваки каматни период, једнака је референтној стопи за валуту Зајма плус фиксна маржа; с тим да ће, након конверзије свих делова или неког дела главнице Зајма, камата коју плаћа Зајмопримац у току периода конверзије за тај износ бити одређена у складу с одговарајућиом одредбама члана 4. Општих услова. Без обзира на горепоменуто, уколико било који износ повучених средстава Зајма не буде плаћен о доспећу и такво неплаћање се продужи на период од 30 дана, тада ће се камата

коју плаћа Зајмопримац обрачунати према одредбама члана 3. Дела 3.02 (е) Општих услова.

2.05. Рокови за плаћање су 15. јун и 15. децембар сваке године.

2.06. Главница Xxxxx ће бити враћена у складу са планом отплате утврђеним у Програму 3 овог споразума.

2.07. (а) Зајмопримац може у свако доба да затражи било коју од следећих конверзија услова Зајма како би омогућио ефикасно управљање дугом: (i) промену валуте Зајма за цео износ или део главнице, повученог или неповученог, у одобрену валуту; (ii) промену основице каматне стопе применљиве на: (А) све делове или било који део главнице Зајма, повученог и доспелог, са варијабилне на фиксну стопу, или обратно; или (Б) све делове или било који део главнице Зајма, повученог и доспелог, с варијабилне стопе базирене на референтној стопи и променљивој маржи на варијабилну стопу базираној на фиксној референтној стопи и променљивој маржи, или обратно; или (В) све делове или било који део главнице Зајма, повученог и доспелог, с варијабилне стопе базиране на променљивој маржи на варијабилну стопу базирану на фиксној маржи; и (iii) постављање лимита на варијабилну стопу или референтну стопу применљиву на све делове или било који део главнице Зајма, повученог и доспелог, утврђивањем највише каматне стопе или распона каматне стопе на варијабилну стопу или референтну стопу.

(б) Било која конверзија тражена у складу са тачком (а) овог члана, коју Банка прихвати, сматраће се „Конверзијомˮ, како је дефинисано Општим условима, и биће спроведена у складу с одредбама члана 4. Општих услова и смерницама за конверзију.

Члан 3.

ПРОЈЕКАТ

3.01. Зајмопримац потврђује своју посвећеност циљевима Пројекта. У том смислу, Зајмопримац ће обезбедити извршење Пројекта од стране Јединице за имплементацију Пројекта у складу с одредбама члана 5. Општих услова и Уговором о Пројекту.

3.02. Не ограничавајући се одредбама члана 3. став 3.01 овога споразума, и уколико се Зајмопримац и Банка другачије не договоре, Зајмопримац ће обезбедити да се Пројекат реализује у складу с одредбама Програма 2 овога споразума.

Члан 4.

ПРАВНА СРЕДСТВА БАНКЕ

4.01. Додатни случај раскида наступа када дође до измене прописа Јединице за имплементацију пројекта, њихове суспензије, поништавања, опозивања или уздржавања, што би имало материјални ефекат и негативан утицај на способност Јединице за имплементацију Пројекта да изврши било коју обавезу из Уговора о Пројекту.

4.02. Додатни случај убрзавања наступа када се деси случај наведен у члану 4. став 4.01 овога споразума чије се дејство наставља у периоду од шездесет (60) дана, од дана када је Банка писмено обавестила Зајмопримца о догађају.

Члан 5.

ПУНОВАЖНОСТ; РАСКИД

5.01. Додатни услови пуноважности састоје се од следећег:

(а) Допунски уговор је закључен у име Xxxxxxxxxxx и Јединице за имплементацију Пројекта.

(б) Уговор о суфинансирању је закључен и достављен и испуњени су сви услови који претходе његовом ступању на снагу или праву Зајмопримца да повлачи средства по њему (осим пуноважности овог споразума).

(в) Оперативни приручник за Пројекат, кога је Банка одобрила, усвојен је од стране Јединице за имплементацију Пројекта; и

(г) Рачуноводствени систем Пројекта, кога је Банка одобрила, установљен је с уграђеним механизмима контроле и у стању је да прати ресурсе и расходе Пројекта и да производи финансијске извештаје, укључујући привремене финансијске извештаје (IFR).

5.02. Додатна правна питања се састоје од следећег:

(а) Зајмопримац и Јединица за имплементацију Пројекта су потписали или ратификовали Допунски уговор и он је правно обавезујући за Зајмопримца и Јединицу за имплементацију Пројекта у складу са његовим одредбама.

(б) Уговор о суфинансирању су потписали или ратификовали Зајмопримац и суфинансијер и он је правно обавезујући за Зајмопримца и суфинансијера у складу са његовим одредбама.

5.03. Рок за ступање на снагу је стотину и осамдесет (180) дана од дана потписивања овог споразума.

Члан 6.

ПРЕДСТАВНИК; АДРЕСЕ

6.01. Представник Зајмопримца је Министар финансија.

6.02. Xxxxxx Xxxxxxxxxxx је:

Министарство финансија Кнеза Xxxxxx бр. 20 11000 Београд

Република Србија

------------------- ------------------- Факс: (000-00) 0000000

6.03. Xxxxxx Xxxxx је:

International Bank for Reconstruction and Development 1818 H. Street, N. W.

Washington, D. C. 20433 USA

Телеграф. адреса	Телекс	Факс
INTBAFRAD	248423 (MCI) или	0-000-000-0000
Washington, D. C.	64145 (MCI)

Споразум је постигнут у Београду, Република Србија, дана наведеног у заглављу Споразума.

РЕПУБЛИКА СРБИЈА

Овлашћени представник Име:

Звање:

МЕЂУНАРОДНА БАНКА ЗА ОБНОВУ И РАЗВОЈ

Овлашћени представник Име:

Звање:

ПРОГРАМ 1

Опис Пројекта

Циљ Xxxxxxxx је да побољша услове и безбедност националнe мреже путева за кориснике путева пружањем подршке Зајмопримцу у имплементацији прве фазе Програма рехабилитације националне путне мреже.

Пројекат се састоји од следећеих делова:

Део 1 Инвестиције у рехабилитацију и безбедност путева

Обезбеђење робе, радова, консултантских и неконсултантских услуга за извођење рехабилитационих и безбедносних радова, укључујући:

(i) радове на периодичном одржавању и рехабилитацији путева;

(ii) делимично проширивање коловоза;

(iii) побољшање саобраћајне сигнализације;

(iv) структурну рехабилитацију;

(v) успостављање повезивања споредних путева и дренажних система у складу с критеријумима одређеним Оперативним приручником Пројекта;

(vi) инкорпорација мера безбедности на путевима према препорукама ревизије безбедности на путевима а у складу с критеријумима утврђеним у

Оперативном приручнику Пројекта.

Део 2 Институционално оснаживање

Обезбеђење робе, консултантских и неконсултантских услуга за:

(а) Јачање безбедности путева у оквиру Програма националне путне мреже кроз:

(i) инспекцију безбедности путева;

(ii) спровођење безбедносних мера које нису скупе, укључујући мере за смањење саобраћаја и опреме путева на националној путној мрежи;

(iii) спровођење кампања за подизање свести о безбедности на путевима;

(iv) подршку доношењу и спровођењу строжијих прописа о безбедности саобраћаја; и

(v) извођење обуке и акредитација особља за ревизију и инспекцију безбедности. (б) Јачање процеса рехабилитације путева и планирања кроз:

(i) преглед стања путева у оквиру националне путне мреже;

(ii) ажурирање базе података за државне путеве коју води Јединица за имплементацију Пројекта;

(iii) успостављање праксе доношења вишегодишњих планова за одржавање државних путева који врше приоритетизацију активности на основу економских, социјалних и регионалних критеријума утврђених у Оперативном приручнику Пројекта; и

(iv) подршку имплементацији виших стандарда пројектовања за одржавање и рехабилитацију јавних путева.

(в) Оснаживање управљања одржавања јавних путева кроз:

(i) подршку доношењу стратешког плана за усвајање тендерског поступка за уговоре о одржавању на основу учинка;

(ii) подршку за припремање модела тендерске документације за уговоре о одржавању на основу учинка;

(iii) организовање обуке за особље Јединице за имплементацију Пројекта и потенцијалне извођаче радова по уговорима о одржавању на основу учинка;

(iv) обезбеђење имплементационе подршке уговорима о одржавању који се заснивају на учинку.

Део 3 Детаљни план Пројекта, надзор над Пројектом, управљање, мониторинг и ревизија

(а) Подршка активностима на доношењу плана и надзору за радове на рехабилитацији и безбедности који се изводе на националној путној мрежи.

(б) Спровођење активности усмерених на подршку управљању Пројектом и подизању капацитета Јединице за имплементацију Пројекта у областима као што су набавка, финансијско управљање, еколошке и социјалне мере предострожности и годишње планирање програма.

(в) Спровођење активности мониторинга и ревизије Пројекта, укључујући:

(i) независну ревизију учинка; и

(ii) финансијску ревизију Пројекта.

ПРОГРАМ 2

Извршење Пројекта

Одељак I. Механизми имплементације

А. Институционални механизми

1. Зајмопримац ће обезбедити Јединици за имплементацију Пројекта неопходне ресурсе за извођење Пројекта, као и састав и опис задатака, прихватљиве за Банку.

2. Зајмопримац ће настојати да Јединица за имплементацију Пројекта реализује Пројекат у складу с Оперативним приручником Пројекта и постараће се да Јединица за имплементацију Пројекта не мења или пренебрегава било које одредбе без претходног писменог одобрења Банке. У случају било каквог неслагања у условима између Приручника и Споразума, меродаван је Споразум о зајму.

3. Зајмопримац ће установити Управљачко-надзорни одбор који ће обухватати представнике Зајмопримчевог Министарства финансија, Министарства саобраћаја, Министарства унутрашњих послова, Министарства регионалног развоја и локалне самоуправе, као и представнике Јединице за имплементацију Пројекта, и имаће функцију надгледања над читавом имплементацијом Пројекта. Зајмопримац ће наложити Јединици за имплементацију Пројекта да координира повремене састанке Управљачко-надзорног одбора.

4. Зајмопримац ће наложити Јединици за имплементацију Пројекта да оснује Тим за имплементацију Пројекта који ће бити одговоран за свакодневну имплементацију Пројекта, укључујући и финансијско управљање, набавке, као и социјалне и техничке аспекте Пројекта. На челу Тима за имплементацију Пројекта се налази директор за инвестиције Јединице за имплементацију Пројекта који одговара заменику директора Јединице за имплементацију Пројекта и има следеће функције: (а) управљање Пројектом, (б) координација Пројектом, (в) пројектне набавке, (г) финансијско управљање Пројектом, (д) мере заштите животне средине и друштвеног окружења, (ђ) безбедност јавних путева, и (е) рехабилитација јавних путева. У састав Тима за имплементацију Пројекта такође улазе чланови Националног координационог тела за безбедност саобраћаја (НКТБС) из следећих радних група: (a) спровођење, и (б) безбедност школске деце, као и представници Министарства саобраћаја и Агенције за безбедност саобраћаја.

5. Зајмопримац ће наложити Националном координационом телу за безбедност саобраћаја (НКТБС) да координира безбедносне интервенције на јавним путевима на начин како је то договорено између Јединице за имплементацију Пројекта и Банке, а у складу са критеријумима који су утврђени у Оперативном приручнику Пројекта.

Б. Допунски уговор

1. Како би се олакшало извођење Пројекта од стране Јединице за имплементацију Пројекта, Зајмопримац ће учинити доступним средства Зајма Јединици за имплементацију Пројекта на основу Допунског уговора склопљеног између Зајмопримца и Јединице за имплементацију Пројекта под условима које је Банка одобрила.

2. Зајмопримац ће користити своја права из Допунског уговора на начин којим ће заштитити интересе Зајмопримца и Банке и постићи циљеве Зајма. Осим ако се Банка другачије не сагласи, Зајмопримац неће уступати, мењати, поништавати или се уздржавати од Допунског уговора или било које његове одредбе.

В. Антикорупција

1. Зајмопримац ће обезбедити да се Пројекат извршава у складу с одредбама антикорупцијских смерница.

Г. Мере предострожности

1. Зајмопримац ће обезбедити да се Пројекат извршава у складу с одредбама Oквира управљања животном средином (у даљем тексту: „ЕМFˮ), Плана за управљање животном средином (у даљем тексту: „ЕМPˮ), Оквира политике расељавања (у даљем тексту: „RPFˮ) и Акционог плана расељавања (у даљем тексту: „RAPˮ), тамо где је то применљиво. Зајмопримац неће уступати, мењати, поништавати или се уздржавати од ЕМF, ЕМP, RPF и RAP или било које њихове одредбе без претходног одобрења Банке.

2. Сврсисходно Делу 1 Пројекта, Зајмопримац ће: (а) пре издавања тендерске документације, наложити Јединици за имплементацију Пројекта да припреми и достави Банци на одобрење следеће: (i) предложени план и место извођења наведених радова и ЕMP посебно за ту локацију, прихватљиве за Банку по форми и садржини; и (ii) нацрт уговора за наведену локацију, водећи рачуна да су одредбе ЕMP посебно за ту локацију адекватно обухваћене дотичним уговором; (б) пре потписивања уговора за радове, који

захтева стицање права над земљиштем и/или расељавање, припреми и достави Банци на одобрење планове, везане за ту локацију, за стицање права над земљиштем и/или RAP, прихватљиве за Банку по форми и садржини; и (в) пре почетка радова, обезбеди да су власници или корисници земљишта на коме се наведени радови изводе исплаћени у потпуности у складу с одредбама RAP.

3. Зајмопримац ће осигурати да Јединица за имплементацију Пројекта: (а) обезбеди да су све активности које се предузимају у циљу извођења Пројекта - које финансирају и Банка и Суфинансијер - у сагласности са стандардима заштите животне средине и смерницама утврђеним у EMF; (б) обезбеди да се избор било које деонице пута у Делу 1 Пројекта изврши у складу са Оквиром за заштиту животне средине; (в) обезбеди потпуну имплементацију Плана управљања животном средином на начин који је прихватљив за Банку, укључујући и све неопходне мере да се сведу на најмању могућу меру и ублаже било какви негативни еколошки утицаји проузроковани имплементацијом Пројекта; и (г) обезбеди специјалисту за еколошке и социјалне мере предострожности у оквиру Тима за имплементацију Пројекта који ће имати такву функцију и одговорност, који су прихватљиви за Банку, чиме ће омогућити Јединици за имплементацију Пројекта да управља, координира и надгледа имплементацију Плана управљања животном средином.

4. Зајмопримац ће: (а) омогућити да Јединица за имплементацију Пројекта припреми Акциони план расељавања у складу с Оквирном политиком расељавања; (б) наложити Јединици за имплементацију Пројекта да организује и објави доступност жалбених процедура како би се саслушале и донеле одлуке праведно и у доброј намери, у складу са Оквирном политиком расељавања, у свим жалбама које су покренуте у вези са имплементацијом Акционих планова расељавања од стране расељаних лица (такав термин ће бити дефинисан у Акционом плану расељавања) или од стране оних заједница на које је негативно утицала имплементација Оквирне политике расељавања, и предузети све неопходне мере ради имплементације одлука донетих у оквиру жалбених поступака.

Одељак II. Извештај о мониторингу Пројекта и еваулација

А. Извештаји о Пројекту

1. Зајмопримац ће вршити мониторинг и евалуацију напретка Пројекта и припремати извештаје о Пројекту у складу с одредбама Члана 5. Дела 5.08 Општих услова и на основу

показатеља прихватљивих за Банку. Сваки од извештаја о Пројекту покрива шестомесечни период и доставља се Банци најкасније 45 дана по завршетку периода који покрива такав извештај.

2. Не ограничавајући се одредбама тачке А.1 овог одељка, Зајмопримац ће наложити Јединици за имплементацију Пројекта да у сваки извештај о Пројекту укључи податак о нивоу Зајмопримчеве саобразности са DLI (показатељи везани за повлачење средстава).

Б. Финансијско управљање, финансијски извештаји и ревизија

1. Зајмопримац ће установити или наложити Јединици за имплементацију Пројекта да установи систем финансијског управљања у складу са одредбама Члана 5. Дела 5.09 Општих услова.

2. Не ограничавајући се одредбама става А овог одељка, Зајмопримац ће припремити и доставити Банци, као део извештаја о Пројекту, шестомесечне неревидиране финансијске извештаје за Пројекат, најкасније 45 дана по завршетку сваког полугодишта, у форми и садржају који су задовољавајући за Банку.

3. Зајмопримац ће дати на ревизију финансијске извештаје у складу са Чланом 5. Делом 5.09 (б) Општих услова. Свака ревизија финансијских извештаја покрива период једне фискалне године Зајмопримца. Ревидирани финансијски извештаји за сваки такав период достављају се Банци најкасније у року од шест месеци по завршетку тог периода.

В. Независна ревизија учинка

1. Зајмопримац ће наложити Јединици за имплементацију Пројекта да обезбеди независни мониторинг и евалуацију Пројекта путем независне ревизије учинка која потврђује у којој мери: (а) су подобни расходи у периоду извештавања, који обухвата ревизија, настали у складу с мерама предострожности и системом набавке утврђеним овим споразумом и у складу с Оперативним приручником; (б) су радови на путевима изведени у складу с важећим уговорима о градњи; (в) су показатељи везани за повлачење средстава за период извештавања, који обухвата ревизија, испуњени; и (г) се Зајмопримац придржавао додатних и накнадних упутстава.

2. Најкасније 45 дана по завршетку другог периода извештавања за календарску годину, Зајмопримац ће наложити Јединици за имплементацију Пројекта да Банци

достави комплетан извештај о независној ревизији учинка, укључујући све налазе и резултате независне ревизије учинка, као и сертификате консултанта за ревизију пројекта.

3. Најкасније три месеца пре истека другог периода извештавања сваке календарске године, Зајмопримац ће наложити Јединици за имплементацију Пројекта да ангажује консултанта за ревизију Пројекта, према садржини и опису задатака и са квалификацијама прихватљивим за Банку, у циљу вршења независне ревизије Пројекта.

Одељак III. Набавка А. Опште

1. Роба, радови и неконсултантске услуге. Сва роба, радови и неконсултантске услуге за потребе Пројекта и које ће бити финансиране из средстава Зајма набављају се у складу с условима утврђеним или наведеним у одељку I Смерница за набавку и са одредбама овог одељка.

2. Консултантске услуге. Све консултантске услуге за потребе Пројекта и које ће бити финансиране из средстава Зајма прибављају се у складу са условима утврђеним или наведеним у одељцима I и IV Смерница за консултанте и са одредбама овог одељка.

3. Изрази, дефиниције. Изрази писани великом словом у овом одељку, који описују одређене методе навбавке или методе Банчиног прегледања одређених уговора, односе се на одговарајуће методе дате у Одељцима II и III Смерница за набавку или у одељцима II, III, IV и V Смерница за консултанте, у зависности од случаја.

Б. Посебни начини набавке робе, радова и неконсултантских услуга

1. Међународно јавно надметање. Уколико није другачије одређено у даљем тексту у параграфу 2, роба, радови и неконсултантске услуге се прибављају уговорима који се додељују на основу међународног јавног надметања.

2. Остали начини набавке робе, радова и неконсултантских услуга. Следећи начини, осим националних јавних надметања, који се могу користити за набавку робе, радова и неконсултантских услуга за уговоре одређене у Плану набавке су: (а) интернационална јавна надметања, подложна додатним одредбама датим у прилогу Програма 2; (б) куповина; и (в) директно уговарање.

В. Посебни методи за набавку консултантских услуга

1. Избор на основу квалитета и цене. Уколико није другачије одређено у даљем тексту у параграфу 2, консултантске услуге се прибављају уговорима који се склапају на бази избора на основу квалитета и цене.

2. Остали методи за прибављање консултантских услуга. Методи, осим избора на основу квалитета и цене, који се могу користити за прибављање консултантских услуга за уговоре који су одређени Планом набавке су следећи: (а) избор на основу квалитета; (б) избор према фиксном буџету; (в) избор према најнижој цени; (г) избор на бази квалификација консултанта; (д) избор консултантских фирми из једног извора; (ђ) процедуре одређене у параграфу 5.2 и 5.3 Смерница за консултанте за избор појединачних консултаната; и (е) процедуре из једног извора за избор појединачних консултаната.

Г. Преглед процедура за набавку од стране Банке

План набавке утврђује који су уговори подложни претходном прегледу Банке. Сви остали уговори подлежу накнадном прегледу Банке.

Одељак IV. Повлачење средстава Зајма А. Опште

1. Зајмопримац може да повлачи средства Зајма у складу с одредбама Члана 2. Општих услова, овога Одељка и додатних упутстава која ће Банка одредити писменим путем Зајмопримцу (укључујући и „Смернице Светске банке за повлачење средстава на пројектимаˮ из маја 2006. године, повремено ревидираним од стране Банке чиме су применљиве и на овај споразум, сходно тим инструкцијама) ради финансирања подобних трошкова како је ниже приказано у табели у тачки 2.

2. Следећа табела одређује категорије подобних трошкова који се могу финансирати из средстава Зајма (у даљем тексту: „Категоријаˮ), доделу износа средстава Зајма за сваку категорију и проценат расхода који се финансирају за подобне трошкове у свакој категорији.

Категорија	Додељени износ Зајма (у ЕУР)	Проценат трошкова који се финансира (без пореза)
(1)Роба,радови, неконсултантске услуге и консултантске услуге за Део 1 и Део 2 Пројекта	68.760.500	100% до 34,38 милиона евра према DLI1 као што је одређено Програмом 4 овога споразума. 100% до 17,19 милиона евра према DLI2 као што је одређено Програмом 4 овога споразума. 100% до 17,19 милиона евра према DLI3 као што је одређено Програмом 4 овога споразума.
(2) Роба, консултантске услуге,обука, инкрементални оперативни трошкови за Део 3 Пројекта и за ревизију	4.855.000	100%
(3) Приступна накнада (FEF)	184.500	Износ платив у складу са ставом 2.03, члан 2. овога споразума сагласно Члану 2. Део 2.07(б) Општих услова
УКУПАН ИЗНОС	73.800.000

За потребе ове табеле:

(а) „Инкрементални оперативни трошковиˮ значе разуман расход настао од стране Јединице за имплементацију Пројекта у сврху реализације Пројекта на рачун комуникација, превода, канцеларијског материјала, оглашавања, фотокопирања, поштарине и путних трошкова. Ти трошкови се финансирају из средстава Зајма у складу с годишњим буџетом кога одобрава Банка, а према административним процедурама Јединице за имплементацију Пројекта, прихватљивим за Банку. Инкрементални оперативни трошкови не обухватају плате званичних државних службеника Зајмопримца или особља Јединице за имплементацију Пројекта.

(б) „Обукаˮ значи обуку и радионице у вези с Пројектом које се изводе у складу с планом обуке који доноси Јединица за имплементацију Пројекта уз одобрење Банке, укључујући студијска путовања, семинаре, радионице и остале активности обуке, које не потпадају под робу или уговорне услуге, а где спада цена материјала за обуку, изнајмљивање простора и опреме, превоз у локалу, трошак дневница за учеснике обуке и накнада за предаваче, као и услуге писменог и усменог превођења.

(в) „изузимање од порезаˮ значи, у вези са Чланом 2. Делом 2.06 Општих услова, да средства зајма неће бити коришћена за финансирање пореза наметнутих од стране или на територији Зајмопримца, на или у вези са одобреним трошковима или на њихов увоз, производњу, набавку или испоруку.

Б. Услови повлачења средстава; период повлачења

1. Изузетно од одредби Дела А овог одељка, неће доћи до повлачења за плаћања која су извршена пре датума овог споразума.

2. У категорији (1), повлачење средства са рачуна Зајма врши се на полугодишњој бази након што Зајмопримац поднесе доленаведене извештаје, у форми и садржини који су прихватљиви за Банку.

(а) за прво повлачење средстава Зајмопримац ће поднети Банци прогнозу тока новца за прва два периода извештавања, обухватајући подобне расходе за поменута два периода извештавања;

(б) за сва наредна повлачења средстава у првом полугодишту те календарске године Зајмопримац подноси, у складу с додатним инструкцијама, следеће: (i) привремени финансијски извештај, пружајући доказе, прихватљиве за Банку, о подобним расходима за тај период извештавања, који одговара првом полугодишту те календарске године; (ii) у случају да је применљиво, усклађивање прогнозе тока новца за тај период извештавања, који одговара другом полугодишту те календарске године; и (iii) прогнозу тока новца за тај период извештавања, који одговара првом полугодишту те календарске године након односног повлачења средстава.

(в) за сва наредна повлачења средстава у другом полугодишту те календарске године Зајмопримац подноси, у складу с додатним инструкцијама, следеће: (i) привремени финансијски извештај, пружајући доказе, прихватљиве за Банку, о подобним расходима за тај период извештавања, који одговара другом полугодишту те календарске године; (ii) независну ревизију учинка за два периода извештавања за односну календарску годину, који ће обухватити: (1) потврду о испуњавању DLI за наведене периоде извештавања, као што је одређено у Програму 4 овога споразума, и (2) документацију, прихватљиву за Банку, о подобним расходима у привременом финансијском извештају за први и други период извештавања односне календарске године; (iii) у случају да је применљиво, усклађивање прогнозе тока новца за повлачење средстава који одговара првом полугодишту наредне календарске године; и (iv) прогноза тока новца за друго полугодиште наредне календарске године.

3. У вези с претходним:

(а) Уколико Банка одреди, на основу доказа наведених у Одељку IV.Б.2(в), ако је примењиво да:

(i) су DLI само делимично испуњени, повучени износ средстава Зајма се умањује у пропоционалном степену испуњености DLI за износ израчунат према формули, договореној између Зајмопримца и Банке и датој у додатним инструкцијама, а сваки остатак повучених средстава затражен за периоде извештавања у тој календарској години остаје расположив за следећа повлачења; или

(ii) DLI нису испуњени, укупан износ предметног захтева за повлачење остаје расположив за наредна повлачења. Тај износ може бити повучен само ако DLI, који претходно нису били испуњени, буду накнадно испуњени.

(б) Банка може, након консултација са Зајмопримцем, и обавештењем Зајмопримцу, сторнирати било који износ Зајма, у целости или делимично, задржати га у складу с тачком Б.3(а) под категоријом (1) или тај задржани износ преусмерити, у целости или делимично, на категорију (1) или (2), ако је изводљиво.

(в) Банка може, након разматрања повлачења средстава затраженог у вези с Одељком Б.2 (в) горенавденим и уз писмено обавештење Зајмопримцу, да повремено усклађује износе и цифре одређене у Програму 4 овога споразума за појединачне показатеље DLI.

4. Не узимајући у обзир горенаведене одредбе тачака 2 и 3, Банка неће бити дужна да врши даље депозите на наменски рачун:

(а) ако Банка у било ком тренутку није задовољна привременим финансијским извештајем и другим извештајима наведеним у тачки 2 да обезбеди адекватну информацију како је одређено додатним упутствима и Оперативним приручником за Пројекат;

(б) ако Зајмопримац није доставио Банци, у року предвиђеном у Одељку II.Б овога споразума, било који од ревизорских извештаја за које се захтева да буду достављени Банци сходно наведеном одељку;

(в) ако у било којем тренутку Банка писмено обавести Зајмопримца о својој намери да суспендује у целости или делимично право Зајмопримца да повлачи средства с рачуна Зајма сходно Члану 7. Део 7.02 Општих услова. Након таквог обавештења, Банка одлучује, на основу свог властитог дискреционог права, да ли ће вршити даље уплате на наменски рачун и какав ће бити поступак за такве уплате и о својој одлуци писмено ће обавестити Зајмопримца.

5. (а) Уколико Банка установи у било ком тренутку да је било који износ исплаћен с наменског рачуна за расход који није подобан расход или није био оправдан доказом који је достављен Банци, тада ће Зајмопримац, одмах по добијању обавештења од Банке, обезбедити додатни доказ, који Банка може да затражи, или ће депоновати на наменски рачун (или, ако Банка тако затражи, рефундирати износ Банци) износ једнак износу тога плаћања. Осим ако се Банка другачије не сагласи, даље уплате се неће вршити на наменски рачун све док Зајмопримац не пружи доказ или изврши уплату или рефундацију, у зависности од случаја.

(б) Рефундација Банци сходно тачки (а) овог става 5 уплаћује се на рачун Зајма за наредна повлачења средстава или за сторно, у складу с одредбама Споразума о Зајму.

6. Датум завршетка Пројекта је 31. октобар 2018. године.

Прилог

ПРОГРАМУ 2

Процедура која ће се примењивати за национално јавно надметање је одређена у овом Прилогу Програму 2 Споразума о Зајму, под истим датумом, између Међународне банке за обнову и развој и Републике Србије, али под условом да та процедура буде подложна одредбама Одељка 1 и параграфа 3.3 и 3.4 „Смерница за прибављање роба, радова и неконсултантских услуга по кредитима IBRD и IDA кредитима и донацијама зајмопримцима Светске банкеˮ (јануар 2011.) („Смернице за набавкеˮ), као и следећим додатним одредбама:

• Поступак „отвореног тендераˮ, као што је дефинисано у Закону о јавним набавкама Републике Србије, примењује се на сваки уговор;

• Страни понуђачи неће бити искључени из надметања нити ће се било каква предност давати националним понуђачима у процесу надметања. Државним предузећима у Србији је дозвољено да се надмећу само ако су правно и финансијски самостална и ако функционишу по одредбама привредног права земље домаћина;

• Јединице које врше набавку користиће узорке докумената за понуде/надметање које је Банка одобрила;

• У случају понуђених цена које су више од званичних процена, понуде се неће одбацити без претходне сагласности Светске банке;

• Поступак једне јединствене коверте се користи за достављање понуда;

• Накнадна квалификација се спроводи само за најниже понуђаче; ниједна понуда неће бити одбачена у моменту отварања понуда на бази квалификације;

• Понуђачи који уговарају у виду заједничког улагања ("joint venture"), сматраће се заједнички, солидарно одговорним;

• Уговори се додељују понуђачу с најниже процењеном понудом, оном понуђачу у свему одговарајућем који се сматра квалификованим да пружи резултате у складу са унапред одређеним и објављеним критеријумима за оцену;

• Накнадна преговарања нису дозвољена ни с најнижим понуђачем нити с било којим другим понуђачем;

• Уговори с дуготрајним дејством (преко 18 месеци) морају да садрже одговарајуће одредбе о усклађивању цене;

• Понуђачка документација и уговор који се сматрају прихватљивим за Светску банку ако садржаће одредбе које јасно наглашавају да је политика Светске банке таква да санкционише фирме или појединце за које се утврди да су умешани у противправне и коруптивне радње, као што је одређено Смерницама за набавке.

• У складу са Смерницама за набавке, сваки понуђачки документ и уговор, који се финансира из средстава финансирања, мора да обезбеди да ће понуђачи, добављачи и извођачи, и њихови подуговарачи, агенти, особље, консултанти, пружаоци услуга или добављачи, дозволити Светској банци да врши инпекцију свих рачуна, евиденције и остале документације које се односе на подношење понуда и уговорне перформансе и да врши ревизију над њима од стране ревизора које именује Светска банка. Радње с намером да се спречи спровођење права Светске банке на инспекцију и ревизију, како је дефинисано у Смерницама за набавке, чине обструктивну праксу, што је такође дефинисано у Смерницама за набавке.

Програм 3

1. Следећа табела одређује датуме отплате главнице Зајма и проценат укупне главнице Зајма за наплату сваког датума отплате главнице (у даљем тексту: „удео рате“), Ако су средства Зајма у потпуности повучена до дана првог датума отплате главнице, онда ће Банка одредити главницу Зајма коју Зајмопримац отплаћује сваког датума отплате главнице тако што ће помножити: (а) повучена средства Зајма на дан отплате главнице; са (б) уделом рате за сваки датум отплате главнице, тако што ће се износ отплате ускладити, према потреби, да би се одбио било који износ који се односи на параграф 4 овога Програма на који се примењује конверзија валуте.

Датум отплате главнице	Удео рате (изражен као проценат)
Сваког 15. јуна и 15. децембра почевши од 15. јуна 2018. све до 15. децембра 2027. године	5%

2. Ако средства Зајма нису у потпуности повучена до првог датума отплате главнице, онда ће се главница Зајма коју отплаћује Зајмопримац сваког датума отплате главнице одредити овако:

(а) Уколико су било која средства повучена до првог датума отплате главнице, Зајмопримац ће отплатити повучени износ Зајма на тај дан у складу с параграфом 1 овог Програма.

(б) Било који износ повучен после првог датума отплате главнице биће отплаћен сваког датума отплате главнице који пада након тог повлачења у износима које одређује Банка множењем износа сваког тог повлачења с фракцијом, нумератором, од које је оригинални удео отплате одређен у табели у параграфу 1 овог Програма за наведени датум отплате главнице („оригинални удео отплате“) и деноминатором од којег износ свих преосталих оригиналних удела отплате за датум отплате главнице пада на тај датум

или после њега ти износи за отплату ће се прилагодити, по потреби, како би се одбио било који износ наведен у параграфу 4 овог Програма на који се примењује конверзија валуте.

3. (а) Износи зајма који се повуку у периоду од два месеца пре било којег датума отплате главнице, чисто из разлога израчунавања отплате главнице било ког датума отплате главнице, сматраће се повученим и доспелим на други датум отплате главнице након датума повлачења и доспевају за наплату сваког датума отплате главнице почевши од другог датума отплате главнице после датума повлачења.

(б) Упркос одредбама подтаче (а) овога става, уколико Банка у било ком тренутку усвоји систем фактурисања о доспелости, по коме се фактуре издају на односни датум отплате главнице или после њега, одредбе тог параграфа се више не примењују на било која повлачења настала после усвајања тог система фактурисања.

4. Упркос одредбама ставова 1 и 2 овога Програма, након конверзије валуте целокупног или делимично повученог преосталог износа Зајма у одобрену валуту, тај износ у одобреној валути који доспева за отплату било којег датума отплате главнице, који наступи у време периода конверзије, одређује Банка множењем тог износа у његовој валути деноминације, непосредно пре конверзије, са или (i) мењачким курсом који одсликава износ главнице у одобреној валути платив Банци према трансакцији осигурања од курсног ризика (Currency Hedge), у вези с конверзијом; или са (ii) ако тако Банка одреди у складу са Смерницама за конверзију, компонентом референтног мењачког курса.

5. Уколико је преостали износ Зајма деноминован у више од једне валуте Зајма, одредбе овога Програма примењују се одвојено на износ деноминован у свакој од валута Зајма како би се створио одвојени план отплате за сваки од тих износа.

Програм 4

Показатељи везани за повлачење средстава (DLI)

Износи и бројке које одговарају појединачним DLI могу се повремено прилагођавати на основу прегледа у складу с Одељком Б.2(в) Програма 2 овога споразума и тако прилагођене износе и бројке Банка доставља Зајмопримцу писменим путем.

	12.2014.	12.2015.	12.2016.	12.2017.	Укупни износ повлачења (у мил. ЕУР)	Повлачење као % Зајма
1. DLI 1: рехабилитација и безбедност путева Км. рехабилитованих путева и примењене безбедносне мере према Пројекту (кумулативно)	DLI 1.1 68	DLI 1.2 358	DLI 1.3 702	DLI 1.4 807
Доспео износ повлачења (у мил. ЕУР) %	11,25	10,08	9,05	3,99	34,375	46,58%
2. DLI 2: активности на безбедности	DLI 2А.1 Потписан уговор за инспекцију	DLI 2А.3 извршена инспекција на	DLI 2А.4 извршена инспекција на	DLI 2А.5 извршена инспекција на