Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698068533206.pdf (Guyana)
LOAN NQ.

If /SFR-OU LOAN AGREEMENT AGREEMENT dated the "'-day of .. t f...Ht-199' between the Caribbean Development Bank (hereinafter call� the Bank) of the mt pan, the Cooperative Republic of Guyana (hereinafter called the Borrower) of the second pan and Guyana Water Authority, a body corporate established by the Act Y u � I Z .. i\, :::..

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• • (hereinafter called the Executing Agency) of the third pan.
ARTICLE 1 General Provisions, Interpretation, Definitions Section 1.01 General Proyisiops, 1be "General Provisions AppliC&ble with an Executing Agency" of the Bank dated April 11, 1985, � forth in Schedule 1 (hereinafter call� , the General Provisions) shall apply to this Loan Agreement subject- however, to any modifications thelllOf to Public Sector Loan Agreemen1s I .

set f ortb herein.

.Section 1.02 Interpretation.


Unless otherwise stated references to sections are to sectioos of this Loan Agreement and references to schedules are to the schedules �ediately following Section 9�01.

Section 1.03 .

Rs(mitioos.

(a) Wherever used in this Loan � ment, unl� the context otherwise requires, the se�� terms defined in the General Provisions � have the respective meaninp set forth !
therein, and for the purpose of sub-paragraphs (v), (xv) and (:m) respectively of Seed.on 2.01 of the .

I General Provisions, the terms: (i) .1'Due dates" shall mean March 31, June 30, September 30 and December 31 in each year, except in the case of interest payable under � on 3.10 of the General Provisions and Other Charges which are payable on demand; !

(ii) "Project" shall mean the water rehabilitation project of the Executing Agency as desaibcd in Schedule 2; and , '.

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(iii)"Project Country" shall mean the Cooperative Republic of Guyana.
- 2 - (b)Wherever used in this Loan Agreement, unless the context otherwise requires, the foll�ing additional terms shall have the following meanings: (i) "Act" means the Guyana Water Authority Act, Chapter 55.0l of the laws of the Projo::t Country; (ii)"CDB" means the Bank; (iii)"COB-financed Component" means the component of the Project being financ.ed by the Bank as desaibed in paragraph 1.04 of Schedule 2 and Appendix 2 to Schedule 2; (iv) "Consultants" means the engineering consultants refared to in paragraph (c) (ii) of Section 6.01; ·(v)"Consultants Completion Report" means the completion report to be prepared by"'ibe Consultants in accordance with paragraph (c) (ii) (jj) of Section 6.01; (vi)"Delegation of Functions Order" means the Guyana Water Authority (Delegation of Functions) Order, 1991 made by the Executing Agency under Section 8 of the Act; ( vii)"Financing Plan" means the financing plan for the Projo::t set out in Appendix 1 to Schedule 2; (viii)"GOG" means the Borrower; (ix) "GUYW A" means the Executing Agency; (x)"IDA" means the International Devdopment Association; - 3 - (xi)"IDA Credit" means a 1Q811 of the equivalent five hundred of approximately twelve million thousand Special Drawing Rights made or proposed to be made by IDA to the Borrower to assist the Executing Agency in financing the Project; (xii) "Monthly Proaress Rep<rt" means the monthly progress report to be prepared by the Consulumts in accordance with paragraph (c) (ii) (gg) of Section 6.01; (xiii)110DA11 means the Overseas
 Development Agency of the United Kingdom; (xiv)"ODA Grant" means a arant of the equivalent of approximately six million United States dollars (US$6,000,000) made or proposed to be made by ODA to the Borrower to assist the Executing Agency in fma.ocing the Project; (xv)"Project Completion Report" means the Project Completion Repott to be prepared by the Project Manager in accordance with paragraph (c) (i) (11) of Section 6.01; (xvi)"Project Manager" means the Project Manager referred to in paragraph (c) (i) of Section 6.01; (xvii).
"Quarterly Report" means the quarterly report to be prepared by the Project Manager in accordance with paragraph (c) (i) (ij) of Section 6.01; (xviii)"RDCs" means the Regional Democratic Councils established by Section 3 of the Regional Demoaati.c.

Councils Order; (xix) "Regional Democratic Councils Order" means � Local Democratic Organs � gional Democratic Councils) Order.

1980 made under the.Local Democratic Organs Act, 1980 .

(No.
(No.

12 of 1980) of the Project Country; (xx)"SCC" means the Sect« Coordinating Committee referred to in paragraph (a) of Section 6.02; and - 4 - (:xxi) "United S� dollars" or "USS" means dollars in the currency of the United States of America.

ARTICLEil The Loan and its Purpose Section 2.01 Amount of Loan.
The Bank agrees to lend to the BOlTOwer from the Special Funds Resources of the Bank on the terms and conditions set out in this Loan Agreement an amount not exceeding the equivalent of eight million, eight hundred and one thousand United States dollars (US$8,801,000).

Section 2.02 Purpose.

The purpose for which the Loan is being made is to provide the Borrower with funds to assist the Executing Agency in financing the Project ARTICLEm Repayment and Interest Section 3.01 Repayment.
(a) Except as provided in paragraph (b) of this Section.

the Borrower shall repay the amount of the Loan withdrawn from the Loan Account in one hundred and twenty (120) equal or approximately equal and consecutive quarterly instalments payable on each Due Date, commencing on the first Due Date after the expiry of ten (10) years following the date of the first disbursement of the Loan or on such later Due Date as the Bank may specify in writing.
(b) Without prejudice to the provisions of Article IX of the General Provisions, if there shall have been a cancellation pursuant to Section 8.01 or Section 8.03 of the General Provisions of such an amount of the Loan as in the Bank's opinion is substantial and the Project bas not been completed, the � rrower shall repay the Principal in such fewer instalments than those specified in paragraph (a) of this Section as the Bank may specify in writing, not exceeding such portion of the number of such instalments to the nearest whole number as the Principal bears to the Loan.
• 5 - Section 3.02 lntaest.

The B� er shall pay interest at the rate of two percent (2%) per annum on the quanerly amount of the Loan withdrawn and outstanding from time to time.

Su�h interest shall be payable in accordance with Section 3.03 of the General Provisions.

Section 3.03 Commission and Commitment Charge.

Sections 3.04 and 3.05 of the General Provisions shall not apply to this Loan Agreement ARTICLE IV Withdrawal of Loan Section 4.01 Withdrawal and Application of Loan.
(a) Except as the Bank may otherwise specify in writing, the amounts withdrawn from the Loan Account: (i)shall be applied in financing the components of the Project allocated for financing by the Bank as shown in the Financing Plan up to the respective limits specified therein; and (ii) shall not exceed in the aggregate twenty four percent (24%) of the cost of the Project.
(b)The amounts withdrawn from the Loan Account shall not be used to finance any part of the Project which consists of identifiable Taxe., imposed under the laws of the Project Country.

Section 4.02 Period of Disbursement The date to be specified pursuant to Section 4.03 of the General Provisions is December 31, 1998.

Section 4.03 Procurement.


(a) Procurement' of goods and se.mces to be financed from the amounts withdrawn from the Loan Account shall be in accordance with the provisions of Section 4.� of the General Provisions.
(b)Pursuant to paragraph (a) (ii) of Section 4.04 of the General Provisions, the Kingdom of the Netherlands is hereby specified as an eligible country 'for the procurement of goods and service., to be fioanred from the proceeds of the Loan in addition to the member countrie., of the Bank listed in · the Annex to the General Provisions.
(c)The Borrower aod the Executing Agency hereby acknowledge that they have each been furnished -6 - with a copy of the "Guidelines for Choice of Consultants" a copy of the "Guidelines for Procurement" published published by the Bank on April 30, 1986 and by the Bank on October 15, 1992, both of which publications are in effect at the date of this Loan Agreement ARTICLE V Conditions Precedent Section 5.01 Additional Conditions Precedent to FU'St Disbursement.
In addition to the requirements specified in paragraph (a) of Section 6.01 of the General Provisions, referred to in Section 8.03 (i) of the Gella'81 Provisions, furnish or cause to be furnished to the Bank evidence, the Borrower shall, by the date acceptable to the Bank that: (i)the Executing Agency's functions to operate and maintain the water systems in the RDCs, which were delegated to the RDCs under the Delegation of Functions Order, have been restored to the Executing Agency; (ii) the Project Manager is in the service of the Executing Agency; (iii) the Consultants have been engaged by the Executing Agency; (iv)sec has been established; and (v)the aggregate of all loans raised under Section 3 (1) of the External Loans Act of the the Loan) does not exceed the limit imposed thereby.
Project Country (including ARTICLE VI Particular Covenants Section 6.01 Execution of Project.

(a) The Borrower shall make the proceeds of the Loan available to the Executing Agency in the form of equity to assist the Executing Agency in carrying out the Project.

(b) Toe Executing Agenc)'.·Shall carry out the Project at·all times �th due diligence and efficiency, and in accordance with sound technical, environmental, financial and managerial standard and practices.
- 7 - (c) In carrying out the Project, the Executing Agency shall adhere to the following arrangements: (i) The Executing Agency shall have in its service, as Project Manager, a �son whose qualifications and experience are acceptable to the Buk.

The Project Manager will head a Project Monitoring Unit which shall include an accountant, a procurement adviser and clerical and secretarial personnel.

The Project Manager, who shall report directly to the Chief Executive Officer of the Executing Agency.
shall be required to provide the services: following (aa) promotion of effective collaboration and coordination among the various co­ flll8DCiers of the Project; (bb) representing the Executing Agency in all its dealings with the Consultants and contractors; (cc) issuing supply and construction contracts; of tenders, evaluation of bids and recommendation of the awards for the ( dd) management and administration of the implementation of supply and construction contracts; (ee) cost control; {ff) .· expedition of the submission to the B� of all claims for disbursement and reimbursement; (gg) liaison with the Bank on all aspects of the Project; - 8 - (hh) keeping separate accounts for expenditures and disbursement activities relating to the CDB-fioaoced Component; (ii) submission to the Bank, within one (1) month after the end of each month, of the Monthly Progress Report; (ij) preparation and submission to the Bank, within six (6) weeks after each March 31, June 30, September 30 and December 31, of a quarterly report on the investment cost of the Project in the form set out in Schedule 3 or in such other form or forms as may be specified by the Bank; (kk) submission to the Bank of the Consultant's Completion Report, within three (3) m�nths after the date of the issue by the Consultants of a certificate of practical completion of the COB-financed Component; and (11)preparation and submission to the Bank, within six (6) months after the date of final disbursement of the Loan, of a Project Completion Report in respect of the COB-financed Component.
(ii) The Executing Agency shall select and engage, in accordance with the procedures referred to in paragraph (a) (i) of Section 4.04 of the General Provisions, engineering consultants for the following services in respect of the COB-financed Component: (aa) review and/or preparation of final designs and tend« documents for all construction works; (bb) assistance to the Exe.coting Agency in the evaluation of tendm, including the preparation of tender reports; (cc)assistance to the Executing Agency in the negotiation of contracts for the construction works; (dd)technical inspection of construction for compliance with the contract documents; - 9 - (ee) consulting with and advising the Executing Agency during construction; (ff) issuing paymem certificates for work done; (gg) preparing a monthly repon on the progrtSs· of the works indicating any engineering difficulties affecting its efficient :and timely execution; (bh) revising designs to suit unforeseen conditions which may arise during construction; (ii)issuing a certificate of completion to the contractors on the completion of construction contracts; and (ti) preparing a completion report on the construction contracts, including as-built drawings; (iii)the Executing Agency shall instirute and maintain organisational, administrative, accounting and auditing mangements for the Proj«:t acceptable to the Bank; and (iv)the Executing Agency shall inform the Bank of all appointments which it p� to make to the position of Project Manager.
Section 6.02 Sector Coordinating Committee.

(a) The Borro"lCI' shall set up a· Sectoc Coordinating Committee comprising representatives of: (i) the Executing Agency; .

, (ii) the Georgetown Sewerage and Water Commissioners; (iii) the New Amsterdam Council; and (iv)such other donor agencies as may be willing to participate in sec.
- 10 - (b)sec shall coordinate and monitor the activities of the various donor agencies involved in the development sector in the Project country, and will act as a f mun for of the water supply and sewerage the dissemination of information on the sector.

(c)sec shall hold meetings at least semi-annually one ( 1) person to attend and speak at meetings of sec.
and the Bank sball be entitled to appoint at least (d)The Borrower shall require sec to give to the Bank adequate notice of SCC's meetings and to send to the Bank with the notice of each meeting a copy of the agenda for such meeting and all other papers (if any) sent to members of sec in connection with such meeting.

Section 6.03 Management of Executing Agency.


(a) The Executing Agency shall maintain in its service management personnel, in particular a Chief Executive Officer and Directors of Finance, Administration, Personnel and Water Services, whose qualifications and experience are acceptable to the Bank.
(b)Except as the Bank may otherwise agree, the Executing Agency shall: (i)manage its affairs so that by December 31, 1995 its accounts receivable shall be maintained at a level below the equivalent of seventy (70) days' sales; and (ii) forthwith initiate and actively pursue such appropriate proceedings (including legal proceedings) available to it for recovery of accounts receivable which do not meet the aforementioned requirements.
(c)If the Executing Agency is unable to meet its administrative and other operating expenses from its own resources, the Borrower shall provide such additional funds as may be necessary, or make adequate arrangements acceptable to the Bank in a timely manner, to enable the Executing Agency to meet such expenses.

- 11 - Section 6.04 Reports and Information.
Without prejudice to the pnwisions of paragraph (c) of Section 7.01 of the General Provisions, except as the Bank may othetwise agree, the Executing Agency shall furnish, or cause to be furnished to the BanJc, in the forms hereinafter specified, or in such form as the Bank may require: (i)not later than one (1) month after the end of each month during the implementation of the Project, the Monthly Progress Report; (ii) not later than six (6) weeks after each March 31, June 30, September 30 and Decemba' 31 during the implementation of the Project the Quarterl y Repon; (iii) not later than three (3) months after the date of issue of the ca'tificate by the Consultants in accotdance Repon; with paragraph (c) (ii) (ii) of Section 6.01, the Consultants Completion (iv)nQt later than six (6) months after the date of final disbursement of the Loan, the Project Completion Report� (v) not later than February 28 and August 31 in each year during the implementation of the Project, a semi-annual progress report covering physical progress, costs, disbursements, organisation, administrative and financial aspectS, training and other pe.rtinent information, identifying constraints and propose.cl remedies.
Such rep«t shall include actual and set forth forecast monitoring indicators and execution targets on the basis of the indicators in Schedule 4; and (vi) not later than three (3) months after the end of each financial year of the �ecuting Agency during the opaation of the Project and during such period as the Bank may require, an ammal operating statement in the form set forth in Schedule 5.

Section 6.05 Annual Reviews.


Toe Executing Agency shall carry out with the Bank annual reviews of •12 • the Executing Agency's financial and operating performance over its immediately preceding financial year in order to determine the best combination of tariff increases and level of subsidies from the Borrower needed over the next financial year.

Section 6.06 Additional Funds.


For the purpose of Section 7.05 of the General Provisions the estimated cost of the Project is the equivalent of thirty-seven million.

four hundred and sixty-one thousand United States dollars (US$37,461,000).

Section 6.07 Borrower's Contribution to the Project.

(a) Without prejudice to the provisions of Section 7.05 of the General Provisions.
the Borrower shall contribute to the Project: (i)the proceeds of the IDA Credit and the ODA Grant or any otha financing in substitution for the IDA Credit and/or the ODA Gram; and (ii) an amount not less than the equivalent of five million one hundred and sixty thousand United States dollars (USSS,160,000).
(b)Unless otherwise agreed with the Bank, the contribution which the Borrower is required to make to the Project in accordance with paragraph (a) of this Section shall be expended on a timely basis on the components of the Project designated for funding by IDA, ODA and the Borrower as shown in the Financing Plan up to the respective limits set out therein.

Section 6.08 Maintenance.


The Executing Agency shall keep the facilities financed from the Loan, or cause the same to be kept in good repair and condition.

ARTICLE VIl Cancellation and Suspension Section 7.01 Suspension by the Bank.
The suspension, cancellation or calling in of the whole or any part of the IDA Credit or the ODA Grant or any financing in substitution for the IDA Credit or the ODA Grant is haeby specified pursuant to paragraph (a) (xii) of Section 8.02 of the General Provisions as an event for the purpose of that Section.

-13 - Section 7.02 Cancellation by the Bank.


(a) The date referred to in sub-paragraph (iii) of Section 8.03 of the General Provisions is December 31, 1995 or such later date as the Bank may from time to time specify in writing.
(b)In the event that the whole or any part of the IDA Credit or the ODA Grant or any other financing in substitution for the IDA Credit or the ODA Grant is suspended, cancelled or .called in, then at any time thereafter the Bank may by ootice to the Borrower and the Executing Agency terminate the right of the Executing Agerq to make withdrawals from the Loan Account on behalf of the BUTOwer or with respect to any amount of the Loan.

as the case may be.

and upon the giving of such notice.


the amount of the Loan specified therein shall be cancelled.

ARTICLE Vlll Events of Default Section 8.01 The suspension.

cancellation or calling in of the whole or any part of the IDA Credit or the ODA Grant or any other financing in substitution for the IDA Credit or the ODA Grant is hereby specified pursuant to sub-paragraph (xii) of Section 9.01 of the General Provisions as an event for the purpose of that Section.
-14 - ARTICLE IX Miscellaneous Section 9.01 The following addresses are specified for the purpose of Section.12.03 of the General Provisions: For the Bank: Bank Caribbean Development P.O.

Box 408 Wildey St M ichael BARBADOS W.I.

For the Borrower: Secretary to the Treasury Ministry of Finance Georgetown GUYANA Cable A ddress: CARIBANK, B ridgetown Telex No.

: WB 2287 Telefax No.

: (809) 426-7269 MINFIN,GUYANA CableAddress: Telex No.

: GY 3038 Telefax No.


: .592-2-73931 For the Executing Agency: The Guyana Water A uthority IO Fort Street Kingston Georgetown GUYANA Telefax: No.

: .592-2-50478 SCHEDULE I (Section 1.01) CARIBBEAN DEVELOPMENT BANK GENERAL PROVISIONS TO PUBLIC SECTOR LOAN AGREEMENTS WITH AN EXECUTING AGENCY APPLICABLE DATED: April 11, 1985 C�IBBEAN DEVELOPMENT BANK GENERAL PROVISIONS APPLICABLE TO PUBLIC SECTOR LOAN AGREEMENTS WITH AN EXECUTING AGENCY Dated: April 11.
1985 TABLE OF CONTENTS Article Number Title Article I of General Provisions, Application Inconsistency with Loan Agreement Section 1.01 Application of General Provisions •••• Section 1.02 Inconsistency with Loan Agreement •••• 1 l Article II Definitions., References• Headings Section 2.01 Definitions .............•............ 2 Section 2.02 References ••.•..•.•••••••••....•.•.•• 4 Section 2.03 Table of Contents and Headings ••••••• 4 Article III Loan Account, Repayment, Comnitment and Payments Charge.
Interest, C011111lission, Fee, Other Charges Front•end Section 3.01 Loan Account .••••..•••••••.•••..••••.

5 Section 3.02 Repa}'1D ent •••••••••••••••••••••••••••• 5 ii.

TABLE OF CONTENTS (Cont'd) Article Number Title Section 3 .03 Section 3.04 Section 3.05 Section 3.06 Section 3.07 Section 3.08 Interest ............................ .

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Commitment Charge •••••••••••••••••••• Front-end Fee .. .

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II • • • • •• • • • • • • • 6 Other Charges and Interest Overdue Payments •••••.•••...••••••••.• on 6 Computation of Interest, Commission and Commitment Charge •••••••••••••••••• 6 3.

09 Section Advance Payments •••••••••••••••••••.•• 6 Section 3.10 Overdue Paym ents •••••••••••••••••••••.
7 Section 3.11 Place and Application of Payments ••••• 7 Section 3.12 by the Executing Payments behalf of the Borrower Agency on ••••••••••••••• 8 Article IV Withdrawal of Loan Section 4.01 Section 4.02 Withdrawal and Application of Loan •••• 8 Special Commitments •••••••••••••••••• 9 Section 4.03 Period of Disbursement ••••••••••• •••• 9 iii.

TABLE OF CONTENTS (Cont'd) Article Number Title Section 4.04 Procurement .•••.•.•....•.•.•••.
..•..• 9 Section 4.05 Goods and Services exclusively Project in carrying ••••••••••••• to be used out the ••••••••••••••••• 10 Section 4.06 Requests for Withdrawal CoDIDli tmen t ...•..•...•... or Special • ........... .

10 Section 4.07 Authorisation for of Requests Withdrawals .••••..••••.•.•...••.•.••.
10 Section 4.08 Section 4.09 Documentation of Requests for Withdrawals ••••••..••.••••••••••••••• 10 Applications satisfy Bank .............•........... and Documents to 10 Section 4.10 Payments to Executing Agency ••••••••• 11 Section 4.11 Withdrawal and Deduction Comm�ssion, Other Charges Co=nitment.Ch •••••.••..•••.•.•.•••••• 11 of Interest, frge and Article V Currency Provisions Section 5.01 Currencies ma y be made ••••••••••••••••• in which Withdrawals ••••••••• 11 .

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TABLE OF CONTENTS (Cont'd) Article Number Title Section 5.02 Currency is Repayable ..•...........•............. in which Principal 11 Section 5.03 Currencies in which Commitment Commission Interest, are Payable ...........................
Charge, and Other Charges 12 Section s.04 Exchange Control Permission •••••••••• 12 Section 5.05 Purchase of Currencies ............... 12 Section 5.06 Article VI Valuation of Currencies 13 •••••••••••••• Conditions Precedent to First Disbursement Section 6.01 ••••••••••••••••••••••••• 16 Article VII Particular Covenants Section 7.01 Records, Accounts and Information •••• Section 7.02 the Bank, the Cooperation Borrower and the Executing between Agency •••• 15 16 v. TABLE OF· CONTENTS (Cont'd) Article Number Title Section 7.03 Taxes •• • • • •• • •• • • • • • • • • • • • • • • • • • • • • • • 16 Section 7.
04 Priority of Loan ••••••••••••••••••••• 17 Section 7.05 Additional Funds ••••••••••••••••••••• 18 Section 7 .06 Maintenance of Insurance ••••••••••••• 18 Section 7.07 Transfer or Assignment or Loan of Loan Agreement •.............. 19 ..................
Article VIII Cancellation and Suspension Section 8.01 Cancellatio n by Borrower 19 ••••••••••••• Section 8.02 Suspension by Bank ••••••••••••••••••• 19 Section 8.03 Cancellation 22 by the Bank ••••••••••••• Section 8.04 Front-Enc Special Cancellation Fee and Amounts subject to not affected by or Suspension Commitment by the Bank.. 23 Section 8.05 Effectiveness Cancellation of Provisipns after or Suspens�on ••••••••••• 23 vi.
TABLE OF CONTENTS (Cont'd) Article Number Title Article IX Events of Default Section 9.01 •••••••••••••••••••••• 23 Article X Termination Section 10.01 ••••••••••••••••••••• 26 Article XI Enforceability Section 11.01 26 XII Article Miscellaneous Section 12.01 •••••••••••••••••••••••• 27 Section 12.02 .................. � .... .

27 Section 12.03 •••••••••••••••••••••••• 27 Section 12.

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05 ..................•..... 28 Article XIII Arbitration Section 13.01 ••••••••••••••••••••••• 28 CARIBBEAN DEVELOPMENT BANK GENERAL PROVISIONS APPLICABLE TO PUBLIC SECTOR LOAN AGREEMENTS WITH AN EXECUTING AGENCY DATED: April 11, 1985 ARTICLE I Application Inconsistency with Loan Agreement of General Provisions, terms and conditfons applicable Provisions.
generally Provi­ to loans These General of General 1.01 Application Section sions set forth certain made by Agency to such extent, vided in such Loan Agreements, provided Guarantor, tee Agreement shall be disregarded.
in these General references the Bank and · shall apply to Loan' Agreements and ·subject to with an Executing such modifications, as may be pro­ however that, where there is no Provisions to Guarantor and Guaran• 1.02 Inconsistency Section Loan Agreement is sions, the provision inconsist of a with Loan Agteement.

If any provision provi­ General ent with a provision of these of the Loan Agreement shall prevail.

(2) ARTICLE II Definitions, References, Headings Section 2.01 ing meanings wherever Definitions.
The following used in these General Provisions have the follow- unless the context expressions otherwise requires:- (i) "Aid Donor(s)" means such of the Donors or Lenders to the Bank which may be providing financing through the Bank for the Project; (ii)"Bank" means the Caribbean Development Bank; (iii)"Borrower" means the party to the Loan Agreement to which the Bank has agreed to make the Loan; (iv)"Closing Date" means the date referred to in Section 4.03; (v) "Due Dates" means the dates specified in the Loan Agree­ of instalments ment for payment the interest Section 3.10), of the Principal payable pursuant charge and other and to commission, commitment (excluding interest charges in respect of the Loan; (vi) "Executing Agency" means the party to the Loan Agreement, other than the Borrower, ·Project is entrusted; of the to which the execution (vii)"Guarantee Agreement" means the agreement between the Guarantor and the Bank whereby the Guarantor guarantees the payment of the instalments commitment commission, interest, and the of the Principal charge and other charges in respect of the Loan, as such agreement may be amended from time to time, and includes such agreement to such agreement; or supplemental all agreements amending thereto and all schedules (3) (viii)"Guarantor" .means the party to the Guarantee Agreement which is .the member of the Bank guaranteeing the payment of the instalments of the Principal and the interest, commission, counnitment of the Loan; charge and other charges in respect
 (ix)"Interest" means interest payable pursuant to Sections 3.03 and 3.10; (x} "Loan" means the loan provided for in the Loan Agreement and includes provided for in the Loan Agreement; por,tions of the loan which are separately (xi)"Loan Account" means the account referred to in Section 3.01; (xii)"Loan Agreement" means the agreement between the Bank for the Loan, to which some and the Borrower providing or all of these General Provisions applicable, to time, and includes thus made applicable agreement may be amended
 from time as all agreements such amending to thereto and all schedules such of these General as such agreement or supplemental shall have been made thereto, Provisions such agreement; (xiii)"Other Charges" or in connection means expenditure with the by the Bank for incurred of remittance by the Bank withdrawn amounts the Bank of any currency from the Loan Account, the purchase by needed by the Bank for payment to itself of interest, commission, commitment charge, front­ end fee and/or other charges 3.06 and 4.11 and the establishment Letters of Credit pursuant to Section 4.02, and amounts in accordance with Sections or modification of Agency to the Bank for agreed to be paid by the Executing or in connection commitments into by the Bank in accordance with Section with other special 4.02; entered (4) (xiv)"Principal" Account and outstanding means the amount withdrawn from time to time; from the Loan (xv)"Project" means the project or programme, as described in the Loan Agreement for which the and Loan is granted, as such description may be amended from time to time; (xvi)"Project Country" means the country specified in the Loan Agreement being the country of a member of the Bank in which the Project is located or in which the Borrower or the Executing Agency is directing the operations of, and implementing, the Project; and (xvii)"Taxes" includes imposts, levies, fees and duties of any nature in effect at the date of the Loan Agreement Guarantee and thereafter.
Agreement or Section 2.02 References.

References Articles sions and reference or Sections are to Articles to the singular unless the context otherwise requires.

in these General Provisions to of these General Provi­ shall include the plural and vice versa or Sections Section 2.03 Table of Contents and the headings are inserted of the Articles and Sections for convenience and Headings.

The Table of Contents of reference only and are not a part of these General Provisions.
(5) ' ARTICLE III Commitment Loan Account, Charge, Interest, Commission, Fee, Other Charges and Payments Repayment, Front-end Section 3.01 Loan Account.

The Bank shall open a L�an Account in its books in the name of the Borrower.

The amount of the Loan shall be credited to the Loan Account and may be withdrawn to the rights of cancellation and suspension set out, in the Loan Agreement therefrom as provided, and subject and in these General Provisions.

Sect ion 3.

02 Repayment.


The Borrower shall repay the amount withdrawn from the Loan Account in the manner specified Bank shall pr�vide the Borrower of the repayments before the Due Date for the first repayment.

in the L<>k'ri 'Agreement.

The and the Executing Agency with particulars Section 3.03 Interest.

The Borrower shall pay interest on the Prin­ for in the Loan Agreement, cipal at the rate provided pr·ovided in Section 3.10.
Such interest shall dates on which amounts shall be withdrawn from the Loan Account and shall be payable first Due on the Due Dates, the first payment being due and payable Date after the date of the first disbursement of the Loan.

e:iccept as otherwise accrue from the respective on the 3.04 CollDDission.
The Borrower shall pay to the Bank a commis­ Section sion on the Principal at the rate provided for in the Loan Agreement, except as otherwise provided from the respective Account and shall be payable on the Due Dates, the fi'rst payment being due ·and payable on the first Due Date after the date 3.10.

Such commission shall accrue shall be withdrawn from the Loan dates on which amounts in Section of the first disbursement of the Loan.
3.05 CollDDitment Section cOIIDDitment charge on the amount unwithdrawn Charge.

The Borrower from the Loan Account from time shall pay to the Bank a to time at the rate specified may otherwise specify in writing, the date specified in the Loan Agreement.
such collDDitment Except as the Bank charge shall accrue from dates on which in the Loan Agreement to the respective (6) amounts shall be withdrawn from the Loan Account or shall be cancelled and shall be payable on the Due Dates, the first payment being due and payable on the first Due Date after the date on which such charge shall accrue.

Section 3.06 Front-end end fee on the portion of the Loan which is being lent from the Ordinary shall pay to the Bank a front­ Fee.
The Borrower of the Bank in the amount specified Capital Resources in United States dollars.
Such fee shall be withdrawn Loan Account credited the Ordinary Capital Resources with the portion of the Loan which of the Bank and may be withdrawn is being lent from by the Bank by the Bank from the in the Loan Agreement at any time, whether before the of the Loan are satisfied or afterwards, conditions of an and without the necessity precedent to first disbursement application Bank shall promptly notify by the Borrower and the the Borrower for withdrawal or the Executing Agency, and the Executing Agency in writing of such withdrawal to be a disbursement of a portion from the Loan Account shall be deemed of the Loan to the extent of the amount, .
Such withdrawal and as of the date, of such withdrawal.

Section 3.07 Other Charges charges due by the Borrower and Interest on Overdue Payments.

Other to the Bank and interest payable under Section 3.10 shall be payable on demand, except as otherwise provided in Section 3 .11.

Section 3.08 Computation of Interest, Commission Interest, commission basis of a 360-day year of twelve (12) 30-day months.

charge shall and commitment be computed daily on the and Commitment Charge.
Section 3.09 Advance Payments.
The Borrower upon payment of all overdue commitment charge and Principal (45) other charges and upon not less than forty-five and all accrued interest, commission, shall have the right, days' notice to the Bank, to repay as of date acceptable provided advance of maturity unless otherwise agreed, such early repayment shall not repayment with the of the and the particulars in the regular course of the Principal of the Principal, any portion however that, interfere to the Bank in repayments accordingly.
to be provided pursuant to Section 3.02 shall be amended (7) Section 3.10 Overdue Payments.

(a) In case the Borrower fails to pay any portion of the Principal, interest (excluding interest payable under commitment commission, this Section), payable under the Loan Agreement, of Articles such overdue Principal, other charges at such rate or rates of interest applicable VIII and IX, the Borrower thereto as provided in paragraph commission, interest, charge and/or other charges due.
and but without prejudice to the provisions shall pay to the Bank interest commitment on charge and/or per annum as shall be (b) of this Section for a period from the day immediately succeeding the Due Date for such overdue payment or payments to the day of actual payment thereof, both dates inclusive.
(b)The rate of interest · per annum payable on the amount of an overdue or, if there be more than one, of the aggregate of all overdue payment, payments outstanding shall specify in writing from time to time shall be such rate as the Bank to one per cent from time to time being equivalent (1%) above the aggregate by the Bank from its Ordinary rates of interest artd commission Capital Resourc•s prevailing payable on loans either (i) on the day on which the Loan was approved by the Bank, or (ii)on the day immediately succeeding the Due Date or Due Dates for such overdue payment or payments and each Due Date thereafter overdue payment or payments, until payment in full of such whichever is higher.
(c) The rate or rates of interest payable on an overdue payment of Principal· interest and commission, if any, payable on the Loan.

under this Section shall be in lieu of the rate or rates of Section interest, 3.11 Place and Application of Payments.

(a) The Principal, commission, commitment charge and other charges in respect of the Loan shall be paid at such places as the Bank aay reasonably request.
(8) (b)All payments shall be applied firstly to any interest Section 3.10, then to any commitment payable, then to any interest 3.

10) and commission due and payable, then to any Principal (excluding interest charge and other charges due and due and pay­ payable under payable under Section able.

Section 3.12 Payments by the Executing Borrower.


(a)Without in any way derogating Agency on behalf of the from the obligations of the Borrower under Sections 3.02, 3.03, 3.04, 3.05, 3.07 and 3.10, all payments interest, of Principal, required shall be made to the Bank by the Executing charge and other charges under the Loan Agreement Agency on behalf of the Borrower to be made to the Bank by the Borrower commission, commitment out of the resources of the Executing Agency.
(b) If the Executing interest, commission, commitment Agency fails to make any payment of Principal, charge or other charges required to be Agency by paragraph made by the Executing make any such payment in full, the Borrower quired payment or provide needed to make such payment.

the Executing (a) of this Section or fails to make the re­ funds as are shall promptly Agency with additional ARTICLE IV Withdrawal of Loan Withdrawal 4.
01 Section provisions behalf of the Borrower of the Loan Agreement, to withdraw the Executing Agency shall be entitled on from the Loan Account amounts required and Application of Loan.

(a) Subject to the for the purpose of no withdrawals the Project but, except with the agreement shall be made on account of expenditures incurred of the Bank, before the date of the Loan Agreement.

(b)The.
(b)The.

amount withdrawn from the Loan Account shall be applied for the of the Loan purpose of the Project in accordance Agreement and of these General Provisions.

with the provisions (9) S.ection 4.

02 Special Comnitments.


At the request · of the Executing Agency and upon such terms-and conditions the as may be agreed upon between Bank and the Executing Agency, the Bank may enter into special commitments in writing to pay amounts to the Executing the cost of goods and services from the Loan Account notwithstanding .tion.

to be financed Agency or others in respect of any subsequent out of the amount withdrawn or cancella- suspension Section 4.03 Period of Disbursement.
The amount of the Loan may be disbursed as may be specified in writing by the Bank.

up to the date specified in the Loan Agreement or such later date Section 4.

04 Procurement.
for (a) Any goods and services required carrying amount withdrawn from the Loan Account - out the Project shall, if they ar- to be financed out of the (i)be procured in accordance with the procedures outlined in the Bank's "Guidelines "Guidelines for Procurement" as are in effect on the date for Choice of Consultants" and of the Loan Agreement time to time by the Bank or in accordance as-may be specified procedures from and as the same may be amended with such other by the Bank; and (ii)have their source and origin in and be procured from only the member countries of the Bank, all of which are speci­ fied in the Annex to these General Provisions,· other countries and such to, the as are specified in, or pursuant Loan Agreement.
(b)The Executing goods and services for the Pt"oject, Agency hereby undertakes that, in the procurement of all necessary measures will be taken to ensure that the construction and service contracts and all purchases of goods financed made at a reasonable out of the amount withdrawn from the Loan Account will be be the lowest market price cost which will generally (10) taking into account time of delivery, quality, efficiency, reliability of the goods and availability of maintenance facilities and spare parts there- for and, in the case of services, the parties rendering them.
of their quality and the competence of out in carrying Section 4.05 Goods and Services Agency the Project.

Except as the Bank may otherwise agree, the Executing shall cause from the Loan Account out of the amount withdrawn the Project.

to be used exclusively to be used exclusively all goods and services in carrying out financed Section 4.06 Request for Withdrawal Executing Agency desires to withdraw to request the Bank to or Special Commitment.
When the any amount from the Loan Account, or pursuant enter into a special commitment to Section 4.02, the Executing in such form and containing such statements and agreements as the Bank Agency shall deliver to the Bank a written application shall reasonably request.

documentation as hereinafter Applications for withdrawal in this Article provided with the necessary shall be made promptly in relation to expenditures for the Project.
Section 4.07 Authorisation of Requests Agency shall furnish to the Bank evidence persons authorised to sign applications for Withdrawals.

of the authority for withdrawal of the person or and the authenti­ The Executing cated specimen signature of such person or persons.

Section 4.08 Documentation of Requests for Withdrawals.
The Executing Agency shall furnish to the Bank such documents and other evidence in support of the application before or after the Bank shall have permitted any withdrawal as the Bank shall reasonably whether in requested request, the application.

4.09 Applications Section cation and the accompanying in form and substance to satisfy the Bank that the Executing documents and other evidence must be sufficient Agency is to satisfy Bank.
Each appli- and Documents on behalf of the Borrower entitled amount applied for and that the amount to be withdrawn from the Loan Account has been or will be used for the purposes Agreement.

from the Loan Account the to withdraw specified in the Loan (11) Section 4.10 Payments to .Executing Agency.
Payments by the Bank to the Executing Agency on behalf of the Borrower of amountswhich the Execu­ ting Agency is entitled on behalf of the Borrower to withdraw from the Loan Account shall be made to or on the order of the Executing Agency.

Section 4.11 Withdrawal ment Charge and Other Charges.
The Bank shall be entitled, obligated, application from the Loan Account without the necessity of an Agency, or deduct from any Commission, Commit­ but not by the Executing for withdrawal and Deduction of Interest, to withdraw to, or on behalf of, disbursement Agreement, other charges due and payable under the Loan Agreement, the Executing commission, and pay to itself interest, commitment Agency under the Loan charge and/or and the Bank shall Agency in writing of such promptly notify the Borrower and the Executing or deduction.
withdrawal be deemed to be a disbursement the amount, and as of the date, of such withdrawal.

Each such withdrawal of a portion of the Loan to the extent of from the Loan Account shall ARTICLE V Currency Provisions Section the Bank 5.01 Currencies and the Executing in which Withdrawals may Agency may otherwiee agree, be made.
Except as from the withdrawals Loan Account shall be made in the respective ditures to be financed such other currency out of the Loan have been paid or are payable or in to the Bank as the Bank may or currencies currencies available in which the expen­ reasonably determine.
5.02 Currency in which Principal Section amount withdrawn from the Loan Account which is being lent from that portion of the Special Development Fund of the Bank subject to the Rules adopted by the Board of Ditectors be amended from time to time by the Bank, shall be repaya�le in United of the Bank in May, 1983, as the same may is Repayable.

(a) Any States dollars.
(12) (b) Except as provided in paragraph (a) of this Section or as the Bank may otherwise specify in writing, the amount withdrawn from the Loan Account shall be repayable in the several currencies withdrawn from the Loan Account and the amount repayable in each currency shall be the amount withdrawn in that currency, provided that, if a withdrawal shall have made in any currency which the Bank shall have purchased with another currency for the purpose of such withdrawal, the amount so withdrawn shall be repayable in such other currency and the amount so repayable shall be the amount paid by the Bank on such purchase.
(c) The portion of the amount withdrawn from the Loan Account to be repaid in a particular currency shall be repayable in such instalments as the Bank shall from time to time specify provided that the amount to be repaid on each Due Date shall remain as set out in the particulars of repayments to be provided under Section 3.02.

Section 5 .03 Currencies in which Commitment Commis­ Charge, Intere.ct:, sion and Other Charges are Payable.
The Commitment Charge shall be payable in United States dollars, interest and commission on any portion of the amount withdrawn from the Loan Account shall be payable in the currency or currencies in which such portion of the amount withdrawn from the Loan Account is repayable, interest payable under Section 3.10 shall be payable in the currency or currencies in which the overdue payment is payable and other charges shall be payable in the currency or currencies utilised by the Bank for such other charges.
Section 5.04 Exchange Control Permission.

The obligation to obtain any requisite exchange and control permission shall be that of the Borrower the Executing Agency.

Section 5.05 Purchase of Currencies.
The Bank will, at the request of the Borrower or the Executing Agency and on such terms and conditions as the Bank shall determine, use its best efforts to purchase any currency needed by the Borrower or the Executing Agency for payment of Principal, interest, commission, commitment charge and other charges required under (13) the Loan Agreement upon payment by the Borrower or the Executing Agency of sufficient funds therefor in such currency or currencies to be specified by the Bank from time to time.
In purchasing the currencies required, the Bank shall be acting as agent of the Borrower case may be, and the Borrower shall be deemed to have made any payment required only when and to the extent that the Bank has received Agency, as the as the case may be, under the Loan Agreement such payment in the or the Executing Agency, or the Executing currency or currencies required.

Section 5.06 Valuation to determine the value of one currency shall be as reasonably determined of Currencies.
Whenever it shall be necessary in terms of another, such value by the Bank in consultation with the International Monetary Fund.
ARTICLE VI Conditions Precedent to First Disbursement Section 6.01 (a) The Borrower Section 8.03 (1), furnish or cause to be furnished to the Bank - shall, by the date referred to in (i) The Guarantee Agreement in form and·substance acceptab le to the Bank; (11) if evidence, Agency it is not a member of the Bank, and the Executing to the Bank, that the Borrower, acceptable are legally established; (111) one or more opinions, satisfactory to the Bank, of a legal practitioner, acceptable to the Bank, showing that - (aa) the Borrower, if it is not a member of the Bank, and the Executing Agency and have the legal cap-city obligations to contract the assumed in the Loan Agreement and to are legally established fully execute the Project; (14) (bb) the Borrower and the Executing Agency have complied with all the necessary under the requirements of the Project Constitution Laws and Regulations enter into the Loan Agreement; Country and under the in force therein in order to and (cc)the Loan Agreement has been duly authorised by and executed and delivered on behalf of the Borrower and the Executing Agency and constitutes a valid and legally binding obligation in accordance with all of its terms; (iv)proof, satisfactory to the Bank, that the person or persons who signed the Loan Agreement Borrower and the Executing to do so; on behalf of the Agency were legally empowered (v) evidence, acceptable Agency have designated to the Bank, that the Borrower one or more repre­ them in all acts regarding and the to represent the Executing sentatives implementation cated specimen of the Loan Agreement signature of the said representative or and the authenti­ representatives; and (vi)evidence, acceptable Agency has authorised to the Bank, that the Executing one or more persons to sign applica­ tions for withdrawals the authenticated specimen in accordance with Section 4.07 and of the person or signature persons so authorised by the Bank to the Executing on a withdrawal Agency.
card to be provided (b) Except as provided in Sect ion 3.

06 or as the Bank may otherwise agree, the Bank shall not be obliged to make the first disbursement of paragraph Loan until the requirements by the Loan Agreement, of the Bank and the Project, (a) of this Section, have been complied with to the entire satisfaction shall have authorised if necessary.

for the withdrawals Aid Donor(s) as amplified of the (15) ARTICLE VII Particular Covenants Section 7.01 Records, Accounts and Inf oniation.
(a) The Executing Agency shall maintain dance with consistently adequate sound accounting records and accounts maintained to reflect in accor­ practice the operations and financial condition without prejudice to the generality of the Executing Agency and in particular, of the fotegoing provision, adequate but to of the amount withdrawn the use thereof in the Project, identify the goods and services financed out the Loan Account, expenditures the progress Agency shall the satisfactio separately to disclose of the amount of the Project (including maintain such accounts and records relating n of the Bank and such records and accounts from the records and accounts and distinct withdrawn from the Loan Account and to record the cost thereof).
to the Project to shall be kept of the other opera­ The Executing to show the from tions of the Executing Agency.
(b)The Executing ments (balance statements) sheets, statements of income and expenditure for each fiscal year audited by independent auditors and related acceptable Agency shall (i) have its accounts and financial state­ with sound auditing to the Bank in accordance applied; (ii) furnish to the Bank, as soon as available, not later than six (6) copies of its audited financial report by the said auditors may reasonably statements for such year and an audit of such scope and in such detail as the Bank and (iii) furnish to the Bank such other informa­ months after the end of each such year certified principles but in any case request; consistently tion concerning as the Bank may from time to time reasonably statements request.
and financial its accounts and the audit thereof (c)The Executing Agency shall furnish, or cause to be furnished, to the Bank all such information the expenditures ject, the benefits tions of the Project and the financial condition as the Bank shall reasonably of the amount withdrawn to be derived therefrom, the administration of the Executing and opera­ Agency.
from the Loan Account, the Pro­ request concerning (16) (d)The authorised be entitled representatives of the Bank and the Aid Donor(s) shall from out of the amount withdrawn to inspect the_ goods financed the Loan Account, the sites, works, plant and construction in the included the operation thereof and any records, documents Project, of erections the Project and for that purpose to enter any lands, buildings, by the Borrower Agency.
or the Executing or facilities tives Agency will provide such representa The Borrower owned or occupied and the Executing and accounts with all reasonable opportunities and facilities for this purpose.

Section 7.02 Cooperation ting Agency.

(a) The Bank, the Borrower cooperate and the Execu­ Agency shall the purpose of the Loan will be accom­ between the Bank, the Borrower fully to ensure that and the Executing plished.

To that end, the Bank, the Borrower shall from time and the.
Executing to time, at the request of any such party, exchange Agency views through their representatives with regard to the progress of the Project, the performance tive obligations by the Borrower under the Loan Agreement and any other matters of their respec­ relating to and the Executing Agency the Project.
(b)The Borrower of any condition and the Executing which interferes, Agency shall promptly inform the Bank or threatens to interfere, with the accomplishment thereof or the performance of the purpose of the Loan, the maintenance of the service by the Borrower and the Executing Agency of their respective obligations under the Loan Agreement.

Section 7.03 Taxes.
The Borrower taxes, if connection any, imposed under_ the laws in force in the Project Country, of the Loan with the execution, shall pay or cause to be paid all or registration issue, delivery in Agreement, (including the Bank pursuant any instrument securities and promisso ry notes), any transfer or assignment by to Section 7 .07 and any agreement amending or supple­ given as a requirement of the Loan Agreement mental to the Loan assignment and all payments any such instrument l, interest, of Principa Agreement, and any such transfer or commitment commission, charge, front-end for, and free from, any taxes imposed under any such laws.
fee and other charges shall be made without deduction (17) Section 7 .04 Priority· of Loan.

(a) It· is the mutual intention of the Borrower, if it is a member of the Bank, and the Bank that no external debt shall enjoy any priority over the Loan by way of lien on government�l assets.
(b) To that end, the takes that, except as the Bank shall otherwise Borrower, if it is a member of the Bank, under­ agree, if any lien shall be created by the Borrower external debt, such equally and ratably secure the payment of the Principal, for any lien will, ipso facto and at no cost to the Bank, commis­ interest, on any governmental assets as security sion, commitment such lien express provision charge and other charges and that in the creation of any , if will be made to that effect.
The Borrower it is a member of the Bank, shall promptly of any such lien.

inform the Bank of the creation (c) The foregoing provisions of this Section shall not apply to - (i) any lien created on property, at the time of purchase whereof, solely as security purchase for the payment of the price of such property; or (ii)any lien arising and securing transactions course of a debt maturing not more than in the ordinary banking one (1) year after its date.

(d) As used in this Section the term - .


(i) "external debt" means any debt· payable by the Borrower in any medium other than the currency ·question ·such debt is creditor payable absolutely in such other medium; and is legal tender in the Project Country whether OT· at the option of the which at the time in (18) (ii) "governmental if the Borrower assets" means as.sets of the Project Country, is a member of the Bank, of any of its political Country.
sub-divisions, if the Borrower or of any agency of the Project is a member of the Bank, or of any such political sub-division includin g an institution performing the functions of a central bank.
(e)The Borrower, division if it is not a member of the Bank or a political sub­ or agency of a member of the Bank or an enterprise in which equity by one or more members participation such member or members of the Bank is a controlling except as the Bank may otherwise agree or as contemplated of the Bank or one or more agencies of that, one, undertakes for the Project, no security given as a requirement which will rank prior to, or pari passu with, any security shall, after the date of the of the Loan Agreement Loan Agreement.
for any debts.

be created or maintained on any of its property as security Section 7.05 Additional Funds.

The Borrower and the Executing Agency shall provide as specified in the Loan Agreement promptly as necessary all funds in addition to the amount withdrawn other resources Project required and, in particular, for the punctual from the Loan carrying and effective Account and all out of the any amount by shall be responsible for meeting which the cost of the Project fied in the Loan Agreement.
exceeds the estimated cost thereof as speci­ in the Loan Agreement, the Executing Section 7.06 Maintenance of Insurance.
specified maintain with responsible able to the Bank for, insurance against shall be consistent with sound business insurers, such risks and in such amounts as practice, and, without limitation (a) Except as otherwise Agency shall take out and or make adequate arrangements accept­ upon the foregoing, hazards incident such insurance shall and other cover marine, transit of goods and delivery to the acquisition, out of the amount withdrawn from transportation the Loan Account financed use or installation, any currency freely usable by the Executing indemnity thereunder to the place of to be made payable in a Agency to replace or repair such goods.
(19) (b) The Executing Agency shall require any such insurers with which insurances in respect of any insurable property financed out of the amount withdrawn from the Loan Account and other insurable property are taken out and are to be maintained Agency and the Bank when such insurances tion, advise the Bank immediately ances are renewed.
are to be renewed and, in addi­ on each renewal date whether such insur­ to give notice periodically to the Executing Section 7.07 Transfer or Assignment of Loan Agreement or Loan.

The all or any of its right, title and interest in and under the Loan transfer or asstf.gn at any time to the Aid Bank shall be entitled to Donor(s) and any instrument Agreement, given as a requirement part of all monies whatsoever The Bank shall promptly such transfer or assignment.
(including securities and promissory and in and to the whole or any notes) of the Loan Agreement due or to become due to the Bank thereunder.

inform the Borrower and the Executing Agency of any ARTICLE VIII Cancellation and Suspension by Borrower.
The Borrower Section 8.01 Cancellation the Bank cancel any amount of the Loan which the Executing have withdrawn may not cancel any amount of the Loan allocated payment of the front-end Borrower for fee under Section 3.06 or in respect of which the prior to the giving of such notice, except that the may by notice to Agency shall not in the Loan Agreement Bank shall have entered into a special commitment pursuant to Section 4.02. by Bank.
(a) If any of the following events Section 8.02 Suspension shall have occurred Borrower, part the right of the Executing the Guarantor and be continuing, and the Executing the Bank may, by notice to the Agency, suspend in whole or in on behalf of the Agency to make withdrawals Borrower from the Loan Account:- (20) (i) The Borrower shall have failed to make payment (notwith­ standing the fact that such payment may have been made by the Guarantor or a third party) of Principal.

interest, commission.


commitment charge or other charges under the Loan Agreement commitment or any principal, interest, commission, charge or any other payment required under any other agreement between the Bank and the Borrower; (ii)The Guarantor shall have failed to make payment of Principal.
interest, commission, commitment charge or other charges principal, under the Guarantee commission, or any Agreement commitment charge or interest, any other payment between the Bank and the Guarantor; required under any other agreement Agency shall have failed to make payment (iii)The Executing of Principal, or any other payment required or any other agreement between Agency; Executing interest, commission, commitment under the Loan Agreement charge the Bank and the (iv)The Borrower or the Guarantor or the Executing Agency shall have failed to perform or observe obligations under the Loan Agreement any other or the Guarantee Agreement; (v) A situation shall have arisen which shall make it impro­ bable in the Bank's opinion that the Project can be carried out or that the Borrower Executing or the or the Guarantor Agency will be able to perform and observe its obligatio Agreement; ns under the Loan Agreement or the Guarantee (vi)Prior to the Closing Date, any material of the Borrower adverse change or the Executing Agency, by the Borrower or the Executing Agency, in the condition as represented shall have occurred; (21) (vii)A representation made by the Borrower or the Guarantor or the Executing Agency in or pursuant or the Guarantee Agreement in or any statement to the Loan Agreement furnished connection therewith Bank in making the Loan shall have been incorrect in any to be relied upon by the and intended material respect; (viii)The Borrowert if it is a member of the Bank, or the Guarantor shall have
 withdrawn or been suspended from membership in, or ceased to be a member of, the Bank; (ix)The right of the Borrower Executing Agency agreement whole or in part by the Bank; to make withdrawals under any other with the Bank shall have been suspended in or the Guarantor or the (x) The right of the Bank to receive funds for the Project in whole shall have been suspended from the Aid Donor(s) or in part or shall have terminated; (xi)Any event specified in sub-paragraph (vii) of Section (ix), s (iv), (vi) t (vii), (viii), 8.03 and sub-paragraph (x), (xi) and (xii) of Section 9.01 shall have occurred; or (xii) Any other event specified for the in the Loan Agreement purpose of this Section shall have occurred.
(b)The right of the Executing the Borrower from the Loan Account shall continue Agency to make withdrawals on behalf of to be suspended in whole or in part, as the case may be, until the event or events which gave rise shall have ceased to exist or until the Bank shall have to such suspension notified the Borrower and the Executing Agency that the right to make withdrawals shall be restored, whichever is earlier, but, in the case of (22) any such notice of restoration, the right to make withdrawals shall be restored only to the extent and subject to the conditions specified in such notice, and no such notice shall affect or impair any right, power or remedy of the Bank in respect of any other or subsequent event described in this Section.
Section 8.03 Cancellation by the Bank.
If any of the f�llowing events shall occur, then at any time thereafter the Bank may by notice to the Borrower, the Guarantor and the Executing Agency terminate the right of the Executing Agency to make withdrawals on behalf of the Borrower from the Loan Account or with respect to any amount of the Loan, as the case may be, and, upon the giving of such not ice, the amount of the Loan specified therein shall be cancelled:- (1) The Borrower :onditions shall have failed to comply with the set out in Section 6.01 (a), as amplified by the Loan Agreement, by the sixtieth (60th) day after the date of the Loan Agreement, or such later date as may be specified in writing by the Bank; (11) In the opinion of the Bank, it is improbable that any requirement specified in or pursuant to Section 6.01 (b) or any condition to be fulfilled in meeting any such requirement will be satisfied; (iii)By the date referred to in the Loan Agreement, the Bank has not received any application for withdrawal from the Loan Account or for Special Commitment in accordance with Article IV, or all applications received by that date shall not have been acceptable to the Bank; (iv)The right of the Executing Agency to make withdrawals from the Loan Account shall have been suspended with respect to any amount of the Loan for a continuous period of thirty (30) days; (23) (v) At any time the Bank determines� after consulation with the Borrower and the Executing Agency, that an amount of the Loan will not be required to finance the Project's cost to be financed out of the Loan; (vi)After the Closing Date an amount of the Loan remains unwithdrawn from the Loan Account; or (vii)The Bank shall have received notice from the Guarantor pursuant applicable amount of the Loan.
to Section 3.05 of the General Provisions to Guarantee Agreements to any with respect Section 8.04 Front-end not Fee and Amounts subject to Special Commitment or Suspension by Cancellation affected suspension of the front-end Agreement any special commitment entered by the Bank shall apply to amounts allocated fee under Section into by the Bank pursuant in the Loan 3.06 or subject to to Section 4.02. by the Bank.
No cancellation for payment or Effectiveness of Provisions after Cancellation Section 8.05 sion.

Notwithstanding of the Loan Agreement any cancellation or suspension, and of these General Provisions or Suspen- all the provisions which shall have been made applicable in this Article specifically thereto shall continue provided.
in full force and effect except as ARTICLE IX Events of Default Section 9.01 continue If any of the following events shall occur and shall for the period specified, time if any, then, at any subsequent during the continuance thereof, the Bank, at its option, may by notice to the Borrower, Agency declare the Principal the Guarantor Executing and the due and payable immediately together with interest, commission, COIIDllitment (24) charge and other charges under the Loan Agreement the Principal together with interest, commission, commitment charge and and upon such declaration other charges under the Loan Agreement shall become due and payable immedi­ ately:- (i) A default shall occur in the payment of Principal, interest, commitment commission, charges under the Loan Agreement continue charge or other and such default shall for a period of thirty (30) days; (ii)A default shall occur in the payment of Principal, interest, commission, commitment charge or other charges under the Guarantee shall continue for a period of thirty (30) days; Agreement and such default (iii)A default shall occur in the payment of principal, interest, payment required agreement between of thirty (30) days; commission, commitment charge or any other under any other loan or guarantee the Bank and the Borrower for a period (iv)A default shall occur in the payment of Principal, commission, interest, charges under any loan or guarantee between charge or other agreement and the Bank under circumstances the Guarantor commitment make it unlikely that the Guarantor would which would meet its obligations Guarantee period of thirty (30) days; under the or the Loan Agreement Agreement and such default shall continue for a (v) A default shall occur in the performance or observance on, the part of the Borrower, of any other obligation the Agency under the or the Executing and such default Agreement, or Guarantee for a period of sixty (60) days after notice Guarantor Agreement continue thereof shall have been given by the Bank to the Borrower, the
 Guarantor and the Executing Agency; shall Loan (25) (vi)The Borrower, Executing.Agency if it is not a metnber of the Bank, or the shall have become unable to pay its shall or proceeding debts as they mature or any action have been taken by the Borrower, of the Bank, or the Executing whereby not a member of the Bank, or the Executing or may be distributed among its creditors; Agency or by others if it is of the Borrower, any of the property if it is not a member Agency shall (vii)The Borrower, if it is not a member of the Bank, or the Executing for its reorganisation, Agency, shall have taken or suffered or any action or dissolution liquidation the suspension of its operations, liquidator of its property; shall have been appointed or a receiver or of all or any part (viii)Any modification shall have been made in the purpose, nature or objectives, if it is not a member of the Bank, or the Executing capital or assets of the Borrower, establish any substantial of the revision if it is not a by legislation, Agency, which may have a deleterious Agency and particularly Legislation ing the Borrower.
member of the Bank and is established or the Executing effect on the Project or on the purpose Loan Agreement was entered for which the into; (ix)The Borrower, the Guarantor Agency shall have failed to fulfil any of its other obligations Bank whether arising Bank or otherwise; under the agreement or the Executing to the the establishing (x) There shall have 8.01 or Section been a cancellation, 8.03, of such an amount pursuant to of the Loan as Section will make Project can be carried out in the Bank's opinion that the or the or that the Borrower it improbable Executing its obligations under the Loan Agreement; Agency will be able to perform or observe any of (26) (xi)The Project shall have been without the prior approval discontinued or suspended of the Bank or the Borrower or the Executing Agency shall have suspended, or ceases or threatens to cease or to carry on, the business contemplated in carrying out the Project; or (xii)Any other event specified for the in the Loan Agreement purpose of this Section shall have occurred and shall continue for a period, if any, specified in the Loan Agreement.
ARTICLE X Termination Section 10.01 Upon payment in full of the Principal and all interest, commission, the Loan Agreement commitment charge and other charges under the Loan Agreement, and all obligations of the parties thereunder shall forthwith terminate.
ARTICLE XI Enforceability Section 11.01 (a) Except as provided the rights and obligations Agency under the Loan Agreement of the Bank, the Borrower and the Executing shall be valid and enforceable in accor­ in paragraph (b) of this Section, dance with their terms.
(b)If the Borrower is not a member of the Bank, the rights and obliga­ tions of the Bank, the Borrower and the Executing Agency under the Loan Agreement shall force in the Project be construed and determined in accordance with the Laws in Country at the date of the Loan Agreement.
(27) (c) The Bank, the Borrower and the Executing Agency shall not be entitled in any proceeding under or pursuant to Article XIII to assert any claim that any provision unenforceable of the Loan Agreement of the agreement because of any provision is invalid or the establishing Bank or for any other reason.

ARTICLE XII Miscellaneous Section 12.01 All stat�ments, reports, certificates, evidence, opinions, notices, communications given under the Loai:i Agreement English Language without cost to the Bank.
and other documents or information furnished or shall be supplied or submitted in the Section 12.02 any right, power or privilege No failure or delay on under the Loan Agreement shall operate as the part of the Bank to exercise a waiver thereof, power or privilege under the Loan Agreement exercise thereof or the exercise preclude any other or further of any right, power or privilege.
nor shall any single or partial exercise of any right, Section 12.03 All notices and other communications required to be given or made under the Loan Agreement between any of the parties contemplated writing.
Any such notice or other c011DDUnication shall be deemed to have and any other agreement by the Loan Agreement or permitted shall be in been duly given or made when delivered cable, telex, telefax or radiogram to the party to which it is required or by hand or mail or by telegram, permitted to be given or made at such party's Agreement or at such other address as such party may have designated specified in the Loan address by notice to the party giving such notice or making such communication.
(28) Section 12.04 Subject to Article 42 of the agreement Bank, if the Borrower, to be a member of the Bank, any amount due to it for its shares repurchased being a member of the Bank, or the Guarantor the ceases establishing by the Bank shall be with held so long as the Borrower or the Guarantor remains liable to the Bank in respect of the Loan.

Such amount may, at the option of the Bank, be applied on any such liability as it matures.
Section 12.05 Subject to Article 46 of the agreement the of the assets of the Bank, if the establishing Bank, in the event of a distribution Borrower, being a member of the Bank, or the Guarantor member of the Bank, the Borrower shall not be entitled ceases to be a to receive its share in such distribution Bank under the Loan Agreement or the Guarantee Agreement.
to the until it has settled its obligations XIII ARTICLE Arbitration Section 13.01 (a) Any controversy between the parties to the Loan Agreement and any claim by any such party against any other such party arising under the Loan Agreement which between shall not be determined to arbitration shall be submitted the parties before an Arbitration by agreement Committee as hereinafter provided.

(b} The parties to such arbitration Borrower and the Executing Agency on the other side.
shall be the Bank on one side and the (c} The Arbitration Committee shall consist of three arbitrators appoin­ ted as follows:- One arbitrator shall be appointed by the Bank, another by the and the Executing Agency or, if they shall not agree, by Borrower the Borrower appointed by and a third (hereinafter agreement between umpire} shall be or the parties, either directly called the (29) through their respective arbitrators.
If the parties fail to agree on who shall be the umpire, he shall be appointed at the request of either party by the Secretary-General of the Caribbean Community.
If either side fails to appoint an arbitrator, he shall be appointed by the Secretary-General of the Caribbean Community at the request of the other party, If either of the appointed arbitrators or the umpire is unwilling or unable to act or to continue to act in such capacity, his successor shall be appointed in the same manner as for the original appointment.

The successor shall perform the same functions and shall have the same powers as his predecessor.
(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 of the contro- ' versy or claim to be submitted to arbitration, the nature of the r�medy sought and the name of the arbitrator appointed by the party instituting such proceeding.
Within thirty (30) days after the giving of such notice, the other party shall notify the party instituting the proceeding of the name of the arbitrator appointed by such other party.

(e) If within sixty (60) days after giving notice instituting the arbitration proceeding the parties shall not have agreed upon an umpire, either party may request the appointment of an umpire as provided in paragraph (c) of this Section.
If within forty-five (45) days after becoming entitled to do so, neither party requests the appointment of an umpire as provided in paragraph (c) of this Section, the arbitration proceeding shall be deemed to have been abandoned.

(f) The Arbitration Committee shall convene in Barbados at such time and place as shall be fixed by the umpire.

Thereafter the Arbitration or in the Project Country at such time and place Commit­ tee shall meet in Barbados as the Arbitration Committee shall determine.
(30) (g)Subject to the provisions of this Section and except as the parties ,t shall otherwise agree, the Arbitration relating to its competence and shall determine Committee shall decide all questions its procedure.

All deci­ sions of the Arbitration Committee shall be by majority vote.

(h) The Arbitration Committee shall afford to both sides 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 Arbitration Committee shall constitute the award of the Arbitration Committee.

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.
Each party shall abide by and comply with any such award rendered by the Arbitration Connnittee in accord­ ance with the provisions of this Section.

(i)The parties shall fix the amount of the remuneration tors and such other persons as shall be required for the conduct of the of the arbitra­ arbitration shall defray its own expenses proceedings.

The Bank, the Borrower aud die Executing in the Arbitration proceedings.
Agency The costs of the Arbitration Committee shall be divided between and borne equally by the Bank on the one side and the Borrower and the Executing Agency on the other.

Any question concerning tion Committee mined by the Arbitration or the procedure Committee.
the division for payment of such costs shall be deter­ of the costs of the Arbitra­ (j) The provisions for arbitration set forth in this Section shall be in lieu of any other procedure between the parties to the Loan Agreement for the determination of any controversy or any claim by any such party against another such party arising thereunder.
(k)If within thirty (30) days after be delivered the counterparts to the parties the award shall not be complied of the award shall with, any party may enter judgement upon any court of competent jurisdiction such judgement or institute by execution against any other party, may enforce or may pursue any other appropriate remedies a proceeding to enforce the award in (31) against such other party for the enforcement of the award and the provi­ sions of the Loan Agreement.
Notwithstanding the foregoing, this Section shall not authorise any entry of judgement or enforcement of award against any party that is a member of the Bank except as such procedure may be available otherwise than by reason of the provisions of this Section.

(1)Service of any notice or process in connection under this Section or in connection pursuant award rendered with any proceeding to this Section may be made in the manner provided with any proceeding to enforce any in Section 12 .03.
The parties to the Loan Agreement waive any and all other requirements for the service of any such notice or process.
(m)Notwithstanding the provisions of paragraph (j) of this Section, if to any instrument any of the parties from exercising action to enforce any right or claim arising out of or is not a member of the Bank, nothing in this Section shall be any the Borrower deemed to preclude legal or equitable pursuant with respect to the repayment commission, tion under this Section shall not be deemed to be a condition in any way prejudice or claim.
given as a requirement of the Principal or of any such right charge and other charges and submission of the Loan Agreement and payment of interest, to arbitra­ precedent or other enforcement or instituting such exercise counnitment ANNEX (Section °4�04 (a)(ii)) MEMBERS OF THE BANK Regional Members Anguilla Antigua and Barbuda Bahamas -Commonwealth Barbados Belize of The Virgin Islands British Cayman Islands Colombia Dominica Grenada -Commonwealth of 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.


Jamaica Guyana -Co-opera tive Republic of 13.

14.

15.

16.

17.

18.

19.

20.

Mexico Montserrat Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Trinidad and Tobago -Republic of Turks and Caicos Islands Venezuela Non-Regional Members 1.

2.

3.

4.

5.

Canada France Germany Italy United Kingdom SCHEDULE2 DESCRIPTION OF THE PROJECT [Section 1.03 (a) (ii)] OBJECTIVE 1.01 .
The objective of the Project is to improve the quantity, to selected regions in Guyana and enhance the administrative efficiency of GUYW A.
Specifically, the Project will quality and reliability provide for the: of water supplied (i)rehabilitation or replacement of dilapidated water supply facilities� (ii)re-organisation of the administration of the water supply sub-sector; and (iii) institutional capacity building of GUYW A. the principal agency with responsibility for administering the water supply and sewerage sector.
SCOPE OF PROJECT 1.02 The Project will consist of the following components: (a) major and minor rehabilitation and emergency repairs to a number of water supply facilities outside the city of Georgetown, comprisin� (i) major rehabilitation of the La Bonne Intention (I.Bl) water supply system; and (ii) minor rehabilitation or emergency repairs to 100 well pumping stations and related transmission and distribution (T&D) mains; (b) a national organisation and management (O&M) programme with emphasis on the establishment of a preventive maintenance equipment and spare pans and contracting out.
on a pilot basis, catain O&M services; approach.

standardisation of electro-mechanical (c) implementation of a Human Resources Development (HRD) programme to recruit and train the requisite manpower at GUYWA; (d) Technical Assistance (TA) to GUYWA for r�ntralisation strengthening GUYW A's organisational.
twinning of GUYWA to a United K.ingdomWa,,« company; and managerial and financial capacity, including of the sector, as w(ill as for the (e) the provision of engineering consultancy and project management services.

PROJECT COSTS PHASING AND FINANCING 1.03 The total cost of the Project is estimated at US$37,46�.000.

financing are summarised in Table 1 below and details the Financing Plan at Appendix 1 to this Schedule.
The estimated Project costs and of the eosts, phasing and financing are set out in SCHEDULE 2 Page 2 TABLE 1: SUMMARY OF PROJECT COSTS AND FINANCING ($ mn) Item 1.LBI System Major Rehabilitatim 2.Min« Rehabilitation and Fme.rgency Repairs 3.O&M Improvements 4.HRD 5.Institutional Strengthening Programme 6.Project Management 7.F.ngineering 8.Project Preparatioo 9.Future Project Preparation Services Sub-Total 10.Physical Contingencies 11 Financing Cost CDB IDA ODA GOO 7.824 5.631 - 0.693 1500 7.897 - Sub-Total 32523 7.249 15.815 5.5793.881 11.Price Contingencies 11 4.288 1.270 1.685 0.4210.912 Sub-Total 36.811 8.519 17.500 6.000 4.793 12.Interest During Coostructim 0.649 0.282 0.368 Total 37.461 8.801 17.500 6.000 5.160 1/ Physical Contingencies: (a) 20% of Item 1 and the F.ngineeriDg Services f« the LBI system: .
(b)15% of Items 2, 6 and 7 except for the &giDeering Services f« the LBI system; (c)10% of Items 3, 4 and 5; and (d) Fixed sums are provided for hems 8 and 9.

2/ Price Contingencies: 4% per annum foreign and 9% per ammm local COB-FINANCED COMPONENT 1.04 The component of the Project earmarked for CDB 's financing is the rehabilitation of the LBI water supply of: system and related engineering services.
Rehabilitation of the LBI water supply system will consist (a) refurbishmem of the water 1reannent plants, and elevated storage reservoirs at Better of Hope, Mon Repos and Friendship (to be financed by COB excluding electro-mechanical equipment which will be financed by ODA); the supply SCHEDULE 2 Page 3 (b) refurbishment of the elevated water towers at Sparendaam, LBI and Annandale (to be financed completely by CDB); (c) construction of a new iitter-connecting water transmission main (to be financed completely by CDB); and (d) complete replacement of the existing distribution system and service connections (to be financed by GOO and CDB).
1.05 The cost of rehabilitating the LBI water supply system bas been estimated at USSl l,914,000 inclusive and details of the LBI Water Supply System Appendix 2 to this Schedule.

of contingencies and financing charge.,.

A summary of the fimocing is set out in Table 2 below and related cost estimates and financing are set out in TABLE 2 (US$) CDB ODA GOO Total 8,801,000 845,000 2,268,000 11,914,000 (%) 74 7 .

!2 .
!2 .

!m 1.06 It is expected that the Project will be implemented ovtt a period of seventy-two (72 ) months.

Implementation began in December 1993 with the approval of the Project by the World Banks Board of Directors and is expected to end in December 1999.

1 .07 An implementation Schedule is set out in Appendix 3 haeto.

Item 1995 Total COB IDA ODA GOG Rehab.


0.82.5 0.471 0.000 0.154 0.200 1.LBI System Major 2.Minor Rehabilitation1.179 0.000 0.460: 0.419 0.300 3.O&M Improvements 1.090 0.000 0.600 0.170 0.320 0.360 0.000 0.340 0.000 0.020 4.HRD 5.Inst Strengthening Prog.
0.890 0.000 0.410 0.460 0.020 6.Project Management 0.270 0.000 0.260 0.000 0.010 0.730 0.110 0.620 0.000 0.000 7.Engineering 0.000 0.000 0.000 0.000 0.000 8.Project Preparation 9.Future Project Preparation0.000 0.000 0.000 0.000 0.000 Total COB IDA 2.049 1.300 0.000 4.161 0.000 1.800 0.600 0.000 0.400 0.430 0.000 0.400 0.780 0.000 0.200 0.270 0.000 0.260 0.700 0.100 0.600 0.000 0.000 0.000 0.050 0.000 o.oso ODA GOG 0.210 0.200 0.200 0.030 0.020 0.010 0.000 0.000 0.000 0.539 2.161 0.000 0.000 0.560 0.000 0.000 0.000 0.000 1996 5.344 0.581 2.690 1.203 0.870 Sub-Total 10.Physical Contingencies0.669 0.116 0.292 0.149 0.112 9.040 1.400 3.710 1.285 0.280 0.456 3.260 0.461 0.670 0.088 Sub-Total 11.Price Contingencies 0.346 0.040 0.163 0.054 0.088 6.013 2.697 2.982 1.352 0.982 10.32.5 1.680 4.166 1.288 0.200 0.582 3.721 0.304 0.758 0.142 Sub-Total 12.Int.
Owing Construction 0.044 0.003 0.000 0.000 0.041 6.359 3.737 3.145 1.406 1.070 11.552 1.880 4.748 0.107 0.033 0.000 4.025 0.000 0.900 0.074 Total 6.403 3.740 3.145 1.406 I.Ill 11.659 1.913 4.748 4.025 0.947 ""O:l> a, ""O (.Q ""O (1) ,,, z N c, X -I 0 I.I) n ::c: ,,, 0 r­,,, C , N FINANCING PLAN ($mn) TOTAL 1994 ' ' '� Item 1.LBI System Major Rehab.

2.Minor Rehabilitation 3.O&M Improvements 4.HRD 5.Inst.
6.Project Management 7.Bngineeri ng 8.Project Preparation 9.Future Project Preparation Strengthening Prog.

IDA Cost CDB 7.824 5.631 7.8'T/ 0.000 2.150 0.000 1.
'T/5 0.000 3.240 0.000 1.440 0.000 2.460 0.410 l.4800.000 0.2500.000 0.000 4.270 1.360 1.865 1.675 1.390 2.050 1.480 0.250 ODA GOG 0.693 1.500 2.580 1.047 0.170 0.620 0.000 0.110 1.480 0.085 0.000 0.050 0.000 0.000 0.000 0.000 0.000 0.000 Total CDB IDA 0.000 0.000 0.000 0.127 0.000 0.000 0.200 0.000 0.200 0.205 0.000 0.205 0.810 0.000 0.810 0.135 0.000 0.130 0.120 0.000 0.120 1.480 0.000 1.480 0.000 0.000 0.000 ODA 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.127 0.000 0.000 0.000 0.005 0.000 0.000 0.000 GOG Sub-Total 10.Physical Contingencies Sub-Total 11.Price Contingencies Sub-Total 12.Int.
During Construction Total •- o:1s2 0.000 36: )> '"t, '"t, ,.,, z 0 X -f 0 V, n :c ,.,, r ,.,, C C N Item Total CDB IDA ODA GOG Total CDB IDA ODA GOG 1997 1998 1.LBI System Major Rehab.
2.Minor Rehabilitation 3.O&M Improvements 4.HRD 5.lost.
Strengthening Pro g. 6.Project Management 7.Engineering 8.Project Preparation 9.Puture Project Preparation 3.010 2.310 O.U,0 0.390 0.680 0.270 0.700 0.000 0.100 2.400 0.000 0.000 0.610 0.000 2.010 0.000 0.300 0.000 0.160 0.000 0.100 0.000 0.370 0.000 0.020 0.000 0.200 0.4(,() 0.020 0.000 0.2<,0 0.000 0.010 0.100 0.600 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.100 0.000 0.000 1.940 1.4(,() 0.000 0.120 0.000 0.000 0.000 0.000 0.000 0.310 0.000 0.290 0.080 0.000 0.055 0.270 0.100 0.2<,0 0.210 0.000 0.110 0.000 0.000 0.000 0.090 0.000 0.090 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Sub-Total 10.Physical Contingencies 7.720 1.158 2.500 3.700 0.4(,() 1.0<JO 0 .
.500 0.461 0.046 0.152 3.020 1.560 0.805 0.479 0.312 0.072 0.000 0.000 Sub-Total 11.Price Contingencies Sub-Total 12.Int.

Owing Consttucaion 8.878 1.638 3.000 4.161 0.506 1.212 0.553 0.664 0.063 0.357 3.499 1.872 0.877 0.891 0.476 0.105 0.000 0.000 10.516 0.203 3.553 4.824 0 .
.569 1..569 0.093 0.000 0.000 0.111 4.390 2.348 0.982 0.278 0.153 0.000 0.000 0.000 0.480 0.120 0.000 0.020 0.025 0.010 0.000 0.000 0.000 0.655 0.096 0.751 0.3()1} 1.059 0.125 Total 10.719 3.646 4.824 0.069 1.680 4.667 2.502 0.982 0.000 1.184 -t 0 V, n :I: m 0 C: r fTI N 'I Item Total CDB IDA ODA 1999 1.LBI System Major Rehab.

2.Minor Rehab.

3.O&M Improvements 4.HRD 5.Inst.

Strengthening Prog.

6.Project Management 7.Engineering 8.Project Preparation 9.Future Project Preparation 0.
()()() 0.000 0.000 0.280 0.000 0.225 0.000 0.000 0.010 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.28> 0.000 0.000 0.000 0.000 0.000 0.220 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.010 0.000 GOG 0.000 0.000 0.000 0.020 0.000 0.005 0.000 0.000 0.000 Sub-Total 10.Physical Contingencies 0.515 0.051 0.000 0.490 0.000 0.000 0.048 0.000 0.025 0.003 Sub-Total 11.Price Contingencies 0.566 0186 0.000 0.538 0.000 0.000 0.171 0.000 0.028 0.015 Sub-Total 12.Int.
During Construction 0.752 0.000 0.000 0.7()1) 0.000 0.000 0.000 0.000 0.042 0.000 -Total " 0.7.52 0.000 -0.7090.000 0.042 "ti )> QJ "'ti lQ "ti (1) IT1 z ::::, X -i 0 (/) n ::z:: fT1 0 C r­ lTI N DESCRIPTION OF LBI WATER SYSTEM APPENDIX 2 TO SCHEDULE 2 The system as designed bad three water treatment plants, is located in Region 4 on the East Coast Oemerara immediately east of the l. The LBI system city of Georgetown.

pumping facilities communities were constructed for the Guyana Water Authority towezs.
The distribution stations and three elevated water storage are interconnected and the effective sezvice area of the "system" includes all of the from Industry to Stratbspey.

The three wat« tteatment plants and the elevated towers systems in 1973 with project funding provided by USAID.

five water well for the existing towers to maintain water supply/distribution 2.

The original storage treated water could be pumped to the elevated towers via the distribution system.

the treatment plants periods.


would then be supplemented from the elevated storage systems were designed to utilise the distribution system Water supply from tanks during peak demand the elevated water pressure.

During periods of low consumption, could not be maintained due to excessive leakage.

3.
3.

The elevated towezs were never put into service because the pl'e6sure in the wata- distribution systems elevated towezs, wells were drilled and pumping Sparendaam not capable of developing sufficient of water, these wells did little to resolve low water pressures that were and still are predominant throughout the distribution In order to attempt to make use of the stations were constructed at the bases of the at these wells were and LBI elevated towers.
However, the pumps that were installed pressure to fill the towers.

Apart from being an additional source system service area.

and completed in the 'A-Sands' and were originally designed as "B-Sands" 4.

Better Hope and Mon Repos water treaanent plants have raw wat« wells completed in the 'B· well plants.

In recent years, an additional Sands' aquifer At each site, the well water is pumped to the top was drilled of an aeration tower and flows by gravity through the plants.
The water tteatment methods originally undertaken at each of the plants is dependent upon the source of the raw water supply.

The Friendship' A-Sands' chlorination.

aeration and completed in the • A-Sands' without any provisi plant was cxiginally designed to employ aeration, lime softening.

filtration and system aquifer and the raw water is pumped directly into the distribution plants at Better Hope and Mon Repos were designed to utilise only chlorination.

The wells at Sparendaam, Vryheid's Lust.


Success, LBI and Lusignan The 'B-Sands' aquifer.

on for treatment.

are and mal:fu.nctioning systems vary from site to site.

Routine, on-going O&M procedures have that could have 5.

Toe condition of the existing facilities disrepair not been performed with any initially debilitating to the overall system.

deteriorated to the point where they are barely functional.
Most systems are in serious need of major repairs been repaired with relatively small expenditures, have grown until they have become regularity due to lack of funds.

Consequently, problems The condition of the majority of the system components bas can generally be regarded as poor.

The levels of or complete replacement.

amount of data available 6.


There is a very limited This leads to some uncertainty with respect to predicting safe long-term yields based on the results Sands 'and 'B-Sands' are very high and this could offset some of that uncertainty.

of the pump testing programme to date, the calculated transmissivities on well construction and historic wat« levels.

of the wells.

However, aquifers for the 'A­ 7.


Rehabilitation the consultants: of tbe LBI system in accordance with the following has been recommended by APPEND Page 2 IX 2 TO SCHEDULE 2 (a) re-e.1tablishmem of original water treatment plants at Better Hope, Mon Repos and Friendship;.

(b) abandonment.
(b) abandonment.

of existing wells and removal of pumping equipment at Sparendaam, Vrybeid's Lust, Sua:eu, LBI and Lusignan; (c) repair and re-use of the existing elevated towers at Sparendaam, LBI and Aooandale; ( d) construction of a new interconnecting treated water transmission main; and (e) complete replacement.

of the existing secondary disuibution system.

8.


The following design flows have been calculated by the consultant for the rehabilitation LBI system: of the Population Served Per Capita Consumption Current Flow Condition Rate (iocd) (60,000) 15 year 30 year '(69.700) (80.900) Average Day Day Maximum : Peak.Day 60 90 120 Design Flow (migpd )* 3.6 S.4 7;2 4.2 4.9 6.3 7.3 8.4 9.7 • Includes an unaccounted water level of 15%.

9.
9.

The estimated coostruction budget to undertake the recommended rehabilitation $11.9 mo inclusive presented at Table 1. of physical and price contingencies and i.nt.a"est dwing construction.
Details are work is TABLE 1: DETAILED cosr ESTIMATES AND FINANCING • LBI SYSTEM APPENDIX 2 TO SCHEDULE 2 Page 3 Components Water Water Supply Storaee Water Distribution Cateeory Locations ODA CDB CDB GOG CDB Total Cost Statioo Rehabilitatioo Sparendam LBI Annandale 85.500 78.500 78.000 Betts Hope 293,166 147.500 160,800 Moo Repos Friendship 211,834 129.900 160,700 188.000 135.700 158.500 - .

- .

- .

.

- .

.

.

85.500 78.500 78,000 601,466 502,434 482.200 water Piping Systems Transmission main.
valves and service cmnections Secffldary distribution system piping.

valve.s and service� -.

Total Physical and Price Cmtingencies Interest Durimr: Coostructioo Total Fwmcing Summary -LBI System .

1.212,600 1.212,600 , 1.500.000 .
3.283.300 4.783.300 410.000 8,234,000 3,398.000 282,000 11,914,000 Total CDB ODA GOG ($) 11,914,000 8.801.000 845,000 2.268.000 (%) 100 74 7 19 IMPLEMENTATION SCHEDULE ID Activity Duration (days) Start Sdleduled 4 1 2 3 4 1 2 3 4 1 2 3 4 I 2 3 4 1 2 3 4 1� 199.5 19!16 1997 1998 1999 Quatlers ' • 4 I BGlll'd Approval 1 94-08-12 X 2 Signing of Loan Agreement 60 94-10-12 3 Conditiooa Precedent F.ngaglng F.ngineering Comultanlll • CDB-financcd Component Duip and Teadm- Doeumenla Seleetioo of Supplien and Coatnwtora Construction • CDB· financed Component Coaarrulllioo WB.oDA• financcd Cempooent 120 94-10-12 180 94-10-12 80 95-10-09 238 95-11-01 720 96-02-02 979 95-10-01 9 lnBt.irutional Strengtblln.in g 1,260 94-12-12 - ):> ,, ,, rr, z C X -I 0 V> n :c m C C ' m N FOR QUARTER ENDING Eiemenla of Project (1) 1.W aier Supply Facililie& Rdlabilitation 2.O&M lmpnwemcnta 3.HRD 4. lnaaitutioaal Stn:ngthen- Ina Pro ,rammo s.Projea M.ana,cment 6.�1 7.Projea Pn,paation 8.
Futun1 Proiecl Pn,paration Sub-Total 9.Physical Continaencies Sub-Total 10.
Price Cmtinpnciea Sub-Total 11.lnll.ltat During Comtruction TOTAL COST 4t.--.uiTU""'lr �m Total Project Cost GOO ODA WB COB REPORT ON INVESTMENT COST OF PROJECT (S'mn) Expcodilllftl for thill Quaner Cumulative E,q,eoditun: To dale Projected Expenditun: for the Qwut,er Ending Eodina Eodina Lalat Eatimatcd Expenditure Estimate of To Complete Expcoditun: Projea Projcd Estimare uper Appraisal Ccmmeots/Reasons Variance Favourable/ f« Advene Variance (Adverae) and FIDlllKling Propc.ala Coll Ovenun to Meet (2) (3) (4), (4), (4), (S) (6) (7) (8) (9) ts.721 2.150 1.97S 3.240 1.440 2.4'0 1.480 0.250 28.716 3.807 32.523 4.288 36.811 0.649 37.461 V'l n :c fTI 0 C r­ fTI V'l 11' (') rt 0 ::, a- 0 (') - "' J �,.�"l 1�!0 13.8 16.0 4.5.7 23 .
.5 .5.1<,() 6.000 17 .

.500 8.800 3 SCHEDULE Pa�e 2 GUIDELINES REPORT ON PROGRESS OF FOR COMPLETION OF COST INVESTMENT 1.

Elements of Project - The elements of the Project recorded in this column.

If it becomes ne.cessary to furtb,er sub-divide project, then the sub-elements should be grouped to facili� the determination of the expenditure related to the main elements identified in the Appraisal Report.

as outlined in the Appraisal Report must be the main elements of the 2.
Expenditure for this Ouaner -The expenditure incurred ip.

the quarter to which the report relates in respect of each element of the project must be recorded in this colnmo 3.

Expenditure to date - The expenditure incurred in respect of each element of the Cumulative project from the commencement of the project to the end of the quarter to which the report relates must be recorded in this column.

4.
4.

Projected Expenditure for Ouarter -An estimate of the expenditure to be incurred in each of the next three quarters must be recorded in the columns 41, � and 4,.

.s.

Estimate of Expenditure to complete Project -This column should be completed only in respect of those elements of the project.

consttuction/mstallation of _which stretches beyond three quarters from the end of the quarter to which the report relates.
Where a project cxteDds over more than one year .. four quarters - an estimate of the expenditure to be incurred in the period subsequent to the year must be recorded in this column.

6.

Latest Estimate of Expenditure - The amounts to be recorded in this column should be derived by adding column., 3, 41, 42, 4, and .S.

The amounts recorded in this column should be the best estim� of expenditure to be ioculTed in respect of each element of the project.

These amounts may be.


iess or greater than the appraised expenditure.

7.

Project Estimates as pq Appraisal Report - The estimate of expenditure to be incurred in respect of each element of the project.

as outlined in the Appraisal column.

Report.

must be recorded in this 8.

Variance -The difference between columns 6 and 7 must be recorded in this column.

Where the amount in column 6 is less than that in column 7. a favourable variance results.
An adverse variance results where the amount in column 6 is greater than that in column 7.

9.

Comments -An explanation should be given for each variance which is more than 10% of the project estimate as per Appraisal Report.

SCHEDULE4 [Section 6.04 (v)] PROJECT MONITORING AND EVALUATION DETAILS I. GUYW A would use the following guidelines imende.d to facilitate goals of the project.

training in its semi-annual repons to COB.


They are and evaluation of the technical, financial, managemem and monitoring the planning, 2.

This section applies maintenance, HR.D and institutional strengthening: to all project components.

.

i.e.

facilities rehabilitation.

op«ations and (a)descriptive report on the progress of implementation of the individual project components.
of the aaual progress of implementation at the end of the reponing pa'iod Comparison with the appraisal forecast of progress; (b) quarterly forecast of expenditures for each contract signed during· the period.
Future repotts are to indicar.e J)C'l'c.entage completion of the contract to the original forecast and the revised forecast of expenditures f« remainder of t¥ contract; (C) descriptive report of the HR.D program including status of GUYW A's staffing, and internal and external training programmes; (d)descriptive report on the participation indicating the roles undertaken by the private perform,ance.

and of the private sector in project implememation.

sector as well as .

the.


evalua,ti.on of (e) descriptive report on the initial reactions of a random sample of project beneficiaries on of GUYWA's services and the areas needing improvement.

the quality 3.

Financial Progress (a) Schedule of actual and estimated costs and disbursements during the repcrti.ng period.

(b)· Llst of on-going contracts with �ic data and showing payment pr<>�.

4.
4.

Indicato rs (a) Indicattn related to Wala' System Ope.rations: (i) Major Rehabilitation Number of systems completed Number of systems in progress Number of house connections Population served SCHEDULE4 Page 2 (ii) Minor Rehabilitation Number of systems completed Number of systems in progress Number of house connections Population· served (ill) Number leaks by Region and Division Residential Transmission Distribution (iv)Number of System (Pumps.
Engines) Breakdowns by Region and Division Duration Cause (v) Number of wells rehabilitated (vi).Number of wells drilled (b) Financial Indicators: (i) Gro� in water revenues (ii) Value of net fixed assets (iii) Return on net fixed assets (iv) Current ratio (v) Ac.counts receivable (vi)Level of Operational Support (vii)Number of employees per thousand connections (C) HRD: (i) Staffing (number) Expatriate foreign Expatriate Guyanese Local (ii)Turnover (ill) Training Professional Technician Lab« Number of staff trained and type of training (professional.
technician) during report period Cumulative for the year (d) Private Sector Participation: SCHEDULE4 Page 3 (i)Number of systems with private sector involvement (ii)Types of private maintenance-breakdown, (operations.

maintenance-routine, sector involvement well-drilling).

supplies.

(e)Beneficiary contacts: Number of beneficiaries surveyed by Region and Division regarding service quality and areas needing improvements.

5.

Performance targets for the relevant indicators are shown at Table 1.
TABLE 1: PERFORMANCETARGETS Item 1994 1995 1996 4(a) (i) Majcx' Rebabilitatim.
(# Statioos) (il) Min« Rehabilitaticn (# Statim.s) - 20 4(b) (iv)Current Ratio 1.0 1.0 - - - 1997 1998 - 1 40 10 1.2 2.6 1.0 1999 NA NA 2.9 30 receivables (days) (v)Accounts 70 70 19S 60 (vi)Level of operational support (GS mn) 230 27S 215 (vii)Number of employees per 1000 9 9 9 10 10 7S 70 70 Coooectim.s 70 so 9 N/A • Nd appllcab» SCHEDULE .5 ANNUAL OPERATING STATEMENT LBI Water Supply System Year Ending: ______________ _,__ __ __, ____ .,...
(Sectlon 6.04 (vi)) Put Year Olmmt Year (Allocation) Itan Amount of War pn,ducld (m3/d) Peawniap UDMlCOUllted-f« Water No.
of Conneetiona per tariff cate p:Y � Water SUI (m3/d) per tariff cuesory per year Wucr Salla (S) e; tariff ClliO pY e; yur OpenlinaCou Electricity MaintenlDCo (Pipes, Hardwtre, FIUinp and Spare Parts) Vebielu and Equipment Supervision and Labour Oiemicall Admmllnlicla Depred ation Eaminp before int&rell lntemlt E,ipemea Emiinp afler lntllnll Raw Waller OullitY No.ofSamples Cok1at11 Turbidity2/ pH Ran,e Total So1ida un,11) Suapended Solida (mall) Nitrate (N03) (ma:/1) 1/ Colour UDila 2/ Turbidity Unitll r· IN WITNESS WHEREOF this Loan Agreement bas been signed in three (3) equally valid copies at Wildey, St. Michael, Barbados and Georgetown, Co,.operative Republic of Guyana, on behalf of the .
Bank:, the Borrower and the Executing Agency by their respective duly authorised representatives and sball be deemed to be in force as of the day and year first above written.

CARIBBEAN DEVELOPMENT BANK CO-OPER.A1TVE 0 REPUBUC OF GUY ANA .. ·�.

The Seal of Guyana Water Authority was hereto affixed in the presence of: Ch11i·.,.,, nsinfl'lP!puty Cliainfltfief Executive Officer Guyana Water Authority