Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698072310298.pdf (Guyana)
CREDIT BOMBER 2669-0 GUA Development Credit Agreement (Financial Sector and Business Environment Project) between REPUBLIC OF GUYARA and INTERNATIORAL DEVELOPMEBT ASSOCIATIOB Dated,�// , 1995' DEVELOPMERT CREDIT AGRBEMERT AGREEMENT, dated h._� // , 199£, between C'REDIT,.NUMBEI.

2669-0 GUA REPUBLIC ASSOCIATION (the Association).

OF GUYANA ( the ��rrower) and INTERNATIONAL DEVELOPMENT WHEREAS: the Borrower, having satisfied:.
itself feasibility this Agreement, financing of the Project; has requested and and priority of the Project described the Association as to the 2 to in Schedule to assist in the WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, terms and conditions to extend the Credit to the Borrower upon the set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions ,:Section Development January l, 1985, with the last sentence General Conditions) 1.01.
The ltGeneral Applicable to Credit Agreements" of the Association, dated of Section 3.02 deleted (the constitute Conditions an integral part of this Agreement.

Section l. 02.
Section l. 02.

Unless the context otherwise requires, the several terms defined in the General Conditions to this Agreement the following additional have the respective meanings terms have the following meanings: therein set forth and and in the Preamble (a)"BOG" means the Bank of Guyana, the Borrower's Central Bank, established under Chapter 85:02 of the Bank of Guyana Act; (b)"Companies Act" means the Borrower's Companies Act 1991, No.
29 of 1991; ( c) "Deeds Registry" means the · Deeds Registry of .• t!

!,e �Ac,: Jfo.
!,e �Ac,: Jfo.

· 2iJ·'fof Borrower established 1991; under the Borrower's Compaj\i1es ·"' (d)"GAIBANK" means the Guyana Agricultural and Industrial 75: 01 of the Borrower's Bank, a bank established under Chapter Cooperative Financial Institutions Act; - 2 - (e)"GNCB" means the Guyana National Bank, a Cooperative bank established Financial Institutions Act; under Chapter 75:0l .of the Borrower's Cooperative (f)"GO-INVEST" established Investment, Public Corporations Act, No.
21 of 1988; means the Borrower's Guyana Office of by Order No.
·as of 1994 under the Borrower's (g)"Guyanese Dollars" means the Borrower's currency; (h)"Implementation Letter" means the letter of even date herewith from the Borrower to the Association Implementation Plan as an annex thereto; the which includes ( i) "Implementation Plan" means the Borrower's plan of objectives, and financed activities and expenditures to be achieved, carried out under the Project, respectively; (j)"MOF" means the Ministry of Finance of the Borrower; ' 7 (k) "PlU" means the Project Implementation Unit referred to in Section 3.03 (a) of this Agreement; (1)"PPFP" means Policy the Borrower's Privatization on July 16, by the Borrower's Parliament Framework Paper approved 1993; (m)"PU" means the Privatizat in Section 3.08 of this Agreement; ion Unit within MOF referred to (n)"Public Enterprises" means all entities, whose capital or net worth is partially or wholly owned by the Borrower; and (o)"Special to in Account" means the account referred Section 2.02 (b) of this Agreement.
ARTICLE II The Credit Section 2.01.

The Association agrees to lend to the Borrower, on the terms and conditions Development Credit Agreement, equivalent Rights (SDR 2,400,000).

to two million four hundred thousand Special Drawing set forth or referred an amount in various currencies to in the - 3 - Section 2.02.

(a) The amount of the Credit may be withdrawn from the Credit Account in accordance with Schedule l to this Agreement Association cost of goods and services required Schedule of the Credit.
2 to this Agreement and to be financed for expenditures the provisions of made (or, if the shall so agree, to be made) in respect of the reasonable for the Project described in Qut of the proceeds and maintain and conditions payments out with the provisions (b) The Borrower may, for the purposes in Dollars a special deposit account Deposits to the Association.

satisfactory of the Project, open in BOG, on terms into, and of, the Special Account shall be made in accordance of Schedule 4 to this Agreement.
Section 2.03.

The Closing Date shall be June 30, 1998 or such shall The Association as the Association shall establish.

later date promptly notify the Borrower of such later date.

Section 2.04.

(a) The Borrower shall pay to the Association a commitment charge on the principal withd'l'awn from time to time at a rate to be set by the Association as of June 30 of each year, but not to exceed the rate of one-half of one percent (1/2 of 1%) per annum.
amount of the Credit not shall accrue: (i) from the date (the Accrual Date) to dates on which amounts shall be withdrawn by the (b) The commitment charge sixty days after the date of this Agreement the respective Borrower from the Credit Account or cancelled; set as of the June 30 immediately preceding such other rates as may be set from time to time thereafter to paragraph shall be applied from in Section 2.06 (a) above.

The rate set as of June 30 in each year of this Agreement.
the Accrual Date or at and (ii) at the rate the next payment date in that y�ar specit'ied pursuant (c) The commitment charge shall be paid: '(i) at such places as the Association shall reasonably restrictions Borrower; and (iii) in the currency specified the purposes of Section 4.02 of the General Conditions other eligible designated or selected of any kind imposed by, or in the territory of,.
Fhe 'lot or in such as may from time td�time be pursuant to the provisions currency or currencies request; (ii) without of that Section.

in·.

'thiS',:Agr•menit service charge at the rate of three-fourths Section 2.05.

The Borrower shall pay to the Association a of one percent (3/4 of - 4 - 1%) per annum on the principal amount outstanding from time to time.

of the Credit withdrawn and payable semiannually Section 2.06.
Commitment charges and service charges shall be on June 15 and December 15 in each year.

Section 2.07.

(a) Subject to paragraphs (b) and (c) below, the amount of the Credit in semi­ Borrower shall repay the principal annual installments payable on each June 15 and December 15 commencing June 15, 2005 and eriding December 15, 2034.

Each 15, on December the installment payable installment 2014 shall be one percent (1%) of such principal amount, and each installment thereafter amount.
to and including shall be two percent (2%) of such principal $790 (i) the Borrower's by the Association, shall have gross national the Borrower creditworthy and approval to the review Directors of the Association product per exceeded years; and (ii) the for Bank lending, the thereof by and after due may, subsequent by them of the development (b)Whenever: capita, as determined in constant 1985 dollars for five consecutive Bank shall consider Association the ·"i:xecutive consideration modify the terms of repayment above by requiring .
such installment Credit shall have been Association or all of the increases payment of interest the principal time to time, provided such revision above-mentioned not yet due until the modification.

repayment of installments under paragraph (a) the Borrower to repay twice the amount of each amount of the by the Borrower, the principal repaid.
If so requested may revise such modification to include, in that, in the judgment shall not change the grant element obtained amount of the Credit withdrawn of the Borrower's economy, in the amounts of such installments, at an annual rate agreed with the Association on and outstanding of the Association, lieu of some under the from the (c)If, at any time after a modification of terms pursuant to paragraph Borrower's Association terms of repayment provided (b) above, the Association determines that the economic condition may, if so requested has deteriorated.
significa.ntly1 ,�11:e fut'l;.h�r 'inodiry "tlte of installments by the Borrower., as to conform to the schedule in paragraph ( a) above.

; • Section 2.08.

The currency of the United States of America is hereby specified Conditions.

for the purposes of Section 4.02 of the General -5- ARTICLE III Execution of the Project Section 3.01.

(a) The Borrower declares its commitment to the objectives Agreement, Project with due diligence appropriate business practices, funds, facilities, Project.
of the Project as set ·forth in Schedule and, to this end, through MOF, shall carry out the and in conformity and efficiency with and financial, and shall provide, promptly as needed, the for the services and other resources administrative, managerial, required 2 to this environmental (b)Without limitation or restriction upon the provisions of paragraph Association Project, Implementation (a) of this Section and except as the Borrower and the shall otherwise agree, the Borrower shall carry out the Plan set forth in the with the Implementation in accordance Letter.
(c)Without limitation or restriction upon the provisions of (a) and (b) above, the Borrower shall provide in its paragr:aphs annual budget, and make available promptly Dollars equivalent, the execution of the Project.

the amounts required as counterpart funds for as needed, in Guyanese Section 3.02.
Except as the Association shall otherwise agree, of the goods and consultants' services required for the procurement Project and to be financed be governed by the provisions of Schedule out of the proceeds 3 to this Agreement.

of the Credit shall Section 3.03.

(a) Except as the Association and thereafter agree, the Borrower shall establish maintain, implementation responsibilities alia: (i) the coordination of co�sultants selection Credit; and (ii) the preparation Section 3.05 of this Agreement.
until the completion of the Project, a Project unit (the PIU), within MOF, with functions and including, of goods and the i'if�r'l(ed.

·d, ·itl out of t�e proceeds to the Association, of the procurement of the repoi:ts.

satisfactory to be financed of t!f: s inter shall otherwise operate and (b)The Borrower shall ensure that the PIU is, at all times, headed by a Project manager with qualifications Association satisfact staff in adequate by qualified and assisted ory to the numbers.

- 6 - Section 3.04.
- 6 - Section 3.04.

Without limitation to the provisions of Section 3�01 of this Agreement, environmental audits or assessments, in Part E. l of the Project, to the Association.

the Borrower shall carry out the to as the case may be, referred terms satisfactory in a manner and under to the provisions Section 3.05.
Without limitation 31 of each year of Project implementation, of Section 9.07 of the General Conditions, the Borrower, through MOF and with of the PIU, shall not later than June 30 and the participation December in June 1995, prepare and furnish to the Association, report of such scope and in such detail as the Association reasonably Project during the such report.
starting for its review, a may in the implementation of the of semester prior to the date of presentation request, on the progress Section ·3.06.

(a) Without limitation to the provisions of the Borrower, through MOF Section 9.01 of the General Conditions, and with the participation of the PIU shall review jointly with the Association by not later than March 31 of each year during the in March 1996, the progress execution made by the Borrower in carrying of the the objectives Project.
out, and achieving of the Project, starting (b) As a result of each such review the Association may require that the Borrower prepare an action plan, satisfactory the Association, to make adjustments so, the Borrower shall furnish such not later than thirty days after the conclusion question such action plan in accordance and shall thereafter carry out, or cause to be carried out, in Project implementation.

action plan to the Association with its terms.

of the review in to If Section 3.07.


Without limitation to the provisions of Section to in Part B.2 of the Project, the Borrower shall, not later than three the loan recovery unit in a manner acceptable to Date, establish 3.01 of this Agreement, months after the Effective referred the Association, functions and ther�a�ter operate and maintain and responsibilities satisfactor y to .tl\e �s.ocl.a�ion.- such_unit • 1 '{fh Section 3.08.
(a) The Borrower shall operate and mai-rttain, at all times, the PU with functions and responsibilities to the Association.

satisfactory [ - 7 - (b)The Borrower shall ensure that the PU is, at all times, headed by a professional Association, and assisted with qualifications by a qualified to the satisfactory numbers.

staff in adequate Section 3.09.

Without limitation to the provisions of Section 3.01 of this Agreement, out Part B.l of the Project, GNCB to merge and, therefore, such merger.
and in order to �nable the Borrower to carry the Borrower shall cause GAIBAHK and create a new entity as a result of ARTICLE IV Financial Covenants Section 4.01.

(a) The Borrower shall maintain adequate records and separate· accounts or cause to be to reflect in maintained accordance with sound accounting resources departments the Project or any part thereof.
and expenditures or agencies of practices, in respect of the Project, the operations, of the for carrying out the Borrower responsible (b)The Borrower shall: (i) (a) of this Section including those have the records and accounts paragraph for the Special Account for each fiscal year audited, principles auditors applied, to the Association; consistently in accordance acceptable by independe ref erred to in with appropriate auditing nt (ii) as soon as but in any case not later than three furnish to the Association, available, months after the end of each such year, a certified copy of the report of such audit by said auditors, as the Association requested; of such scope and in such detail shall have reasonably and (iii) furnish to the Association �ccounts information shall and the audit thereof as the Associa�ion from time to time reasonably concerning said.
records' such other request.

- 8 - (c)For all expenditures with respect to which withdrawals from the Credit Account were made on the basis of statements expenditure, the Borrower shall: of (i) maintain or cause to be maintained, in accordance with paragraph records.
expenditures; and separate (a) of this Section, accounts reflecting such (ii) retain, until at least one year after the the audit report for has received Association the fiscal year in which the last withdrawal from the Credit Account or payment out of the Special Account was made, all records (contracts, bills, receipts orders, invoices, and other documents) evidencing such expenditures; (iii)enable the Association�s examine such records; and representatives to (iv)ensure that such records and accounts are included in the annual audit referred to in (b) of this Section and that the paragraph report of such audit contains by said auditors expenditure submitted together with the procedures controls relied upon to support the related withdrawals.
during such fiscal year, and internal in their preparation, as to whether the statements a separate opinion involved can be of ARTICLE V Effective Date; Termination Section 5 .01.

The following events are specified as additional to the effectiveness conditions within the meaning of Section 12.01 (b) of the Get1eral,CQ'n�tl�ls; namely, that have appointed this Agreement.
the Borrower shall have established the Project manager as provided in Section�3.03 the PIU and shall of of the Development Credit Agre�me�t - 9 - Section 5.02.

The date specified Conditions.

for the purposes � //, 1995' of Section 12.04 of is hereby the General ARTICLE VI Representatives of the Borrower; Addresses Section 6.01.

The Minister of MOF is designated as representative the General Conditions.

of the Borrower for t·he purpoaes of Section 11.03 of Section 6.02.
The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: of Finance The Ministry Main and Urquhart Georgetown Guyana Streets Cable address: Telex: MINFIN Guyana 3038 For the Association: Development International Association 1818 H Street, N.W.

Washington, United States of America D.C. 20433 Cable address: Telex: INDEVAS D.C. Washington, 248.42'3 (RCM?

.
.

· • 82987 (FTCC) 64145 (WUI) '<fr 197688 (TRT) - 10 - IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized signed in their respective States of America, as of the day and year first above written.

s, have caused this Agreement to be names in the District representative of Columbia, United REPUBLIC OF GUYANA By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By .Y.

"'-',,._; J a"."""'

ui J.?


� Vice President Latin America and the Caribbean Regional - 11 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1.
The table below sets forth the Categories of items to be of the financed out of the proceeds the' allocation of amounts of the Credit to each Category and the percentage expenditures for items so to be financed in each Category: of the·Credit, Amount bf the Credit Allocated % of Category (Expressed SDR Equivalent) in Expenditures to be Financed (1)Goods 100,700 100% of foreign expenditures, 100% of local expenditures (ex-factory cost) and 85% of local ex­ penditures other items procured locally for (2)Consultants' 1,850,000 100% Services (3)Training 235,000 100% (4)Unallocated 214,300 --------- TOTAL 2,400,000 =====�--- 2.
For the purposes of this Schedule: (a) the term "foreign expenditu res" means expendii'lires in the currency of any country other than that of the Borrower for goods or services supplied than that of the Borrower; and from the territory of any country other - 12 - (b)the term "local expenditures" means expenditures currency territory of the Borrower of the Borrower.
or for goods or services supplied in the from the the provisions shall be made in respect of: (a) payments prior to the date of this Agreement; 3.

Notwithstanding withdrawals expenditures made for expenditures under Part B .1 of the Project unless the merger between GAIBANK and GNCB referred to in Section 3.09 of this Agreement has been completed and executed and the new entity created as provided in such Section.

1 above, no made for of paragraph and (b) payments 4.
The Association may require withdrawals Account to be made on the basis of statements expenditures equivalent conditions Borrower.
for goods or consultants' as the Association under contracts shall specify estimated services, under such terms and by notice to the of expenditure for from the Credit to cost less than $25,000 - 13 - SCHEDULE 2 Description of the Project The objectives of the Project are to assist the Borrower in and commercial the financial of policy reforms-in within the Borrower's through: (a) the strengthening management of financial the implementation sectors in order to foster private investment territory, framework within the financial and monetary efficiency selected privatization {c) the improvement dissemination of information and (ii) the reduction investors; foreign and domestic investment.
of Public Enterprises of the business capacity and of BOG in order to improve the solvency of use through the with the PPFP; and through: (i) the in accordance environment assets of the Borrower to a more efficient of barriers and limitations sector and the supervisory (b) the reallocation on foreign investment intermediation; to potential of the regulatory to The Project consists modifications upon.from time to time to achieve such objectives: thereof as the Borrower and the Association of the following parts, subject to such may agree Part A: Strengthening of BOG of BOG' s banking supervisory and issuance of banking prudential staff in the analysis institutions (including required therefor); for the carrying and responsibilities regulations; functions through: (b) and monitoring of the the acquisitio n and (c) the drafting out of the supervisory of BOG; (d) the design of BOG's of financial 1.
Strengthening (a)the drafting the training activities utilization and issuance and analytical and implementation financial institutions one or more borrowers (including the equipment of the equipment of directives functions required and therefor); of a credit risk qualification in order to avoid concentration system for of credits in the acquisition and utilization of and utilization (a) the design and implementation of BOG' s monetary management the acquisition through: 2.
Strengthening (including therefor), and procedures a money market unit within BOG; (c) the design procedures BOG' s staff in order to implement the directives referred in (b) herein.
for foreign exchange for open-market operations; to in (a) and (c) herein and to manage the unit referred functions of thtf equi'}>m�n# 1;:eqiiled operations; (b) the establ�ent of and implementation of directives to of and (d) the training of and procedures - 14 - Part B: Technical Assistance to the New Entity assistance of technical for assisting to the entity to be created of uniform credit policies for management of loan review risks; {b) the design and implementation to ensure that the credit policies procedures 1.
Provision as a result of the merger between GAIBANK and GNCB as referred to in Section 3.09 of this Agreement such entity in: {a) the design and implementation of portfolio and approval to in {a) herein are implemented; of a uniform accounting and financial drafting system referred to in {c) herein {including utilization and implementation entity referred control system; (d) the of the for the implementation and design required therefor); of a strategy to reallocate and {e) the the staff of the to herein and restructure of the equipment its branch network.
of directives and issuance the acquisition {c) the design and implementation referred 2.

Establishment of a loan recovery unit.

Part C: Strengthening of the PU .-Provision of technical such unit in all the necessary connection the acquisition with the privatization and utilization of the equipment actions to be taken by the PU in of Public Enterprises, assistance to the PU in order to assist including required therefor.

Part D: Improvement of the Business Environment of technical 1.
Provision such office in the design and implementation procedures off ice's staff and the acquisition required for promoting investment, including assistance therefor.

the training of instituti onal of such of equipment to GO-INVEST for assisting and utilization assistance to the Borrower for of technical 2.

Provision assisting Companies become acquainted with implementation of the Deeds Registry, staff to implement such program.
it in: {a) the drafting Act, including the training to the of regulations of the Borrower's staff to and issuance and {�) such regulations; .�he desigV-,,F.

d of a program to strengthen including the inst1tutiona1.

capaeity the training of the Registry's ·' Part E: EnvirOilJllental Audits or Assessments 1.

Carrying Enterprises out of environmental audits or assessments of Public to, inter alia, identify mitigatory measures for - 15 - negative environmental operating Enterprises.
practices impacts related to the past and inadequate design features and current of such Public 2.

Strengthening the institutional capacity of the Borrower's environmental protection agency.

* * * The Project is expected to be completed by December 31, 1997.

-16 - SCHEDULE 3 Procurement and Consultants' Services Section I.

Procurement of Goods Part A: International Competitive Bidding awarded in accordance in Part C hereof, goods shall be procured 1.
Except as provided under contracts with those set forth in Sections I and II of the "Guidelines Procurement in May 1992 (the Guidelines), procedures: additional for by the Bank with the following under IBRD Loans and IDA Credits" and in accordance with procedures consistent published (a)When contract award is delayed beyond the original bid and award the contract.
once, subject to and in 2.59 of the Guidelines, to complete the evaluation, and clearances period, such period may be extended with the provisions of paragraph validity accordance by the minimum amount of time required obtain necessary approvals The bid validity period may be extended bidding documents or the request for extension appropriate adjustment of the bid price cost of inputs for the contract over an increase bid evaluation.
Association's D.l (a} of this Section, required for: (i} the period of extension subsequent a second time only if the shall provide for to reflect changes in the Such the period of extension.

in the bid price shall not be taken into account in the made subject to the to each contract of Part with the provisions prior approval will be (60) days; and (ii) any period.
prior review in accordance the Association's of the bid validity of the bid validity exceeds sixty a first extension With respect extension period if of goods in accordance with this Part with such modifications bidding documents thereto as the (b) In the procurement A, the Borrower shall use the relevant issued by the Association, to be necessary shall have agreed Association the Project.

standard Where no relevant issued by the Association, based on other internationally the Association.
recognized bidding standard for the purposes of do7�en:ts hfV.f �een , the Borrower shall use bidding documents standard formsagreed with 2.

To the extent practicable, contracts grouped into bid packages estimated $25,000 or more.
to cost the equivalent for goods shall be of -17 - Part B: Preference for Domestic Manufacturers In the procurement of goods in accordance in Part A.l hereof, goods manufactured in Guyana may be and subject to, in accordance with, with the procedures described granted a margin of preference the provisions paragraphs of paragraphs 1 through 4 of Appendix 2.55 and 2.56 of the Guidelines and 2 thereto.
Part C: Other Procurement Procedures Goods estimated to cost less than the equivalent of $25,000 per contract, of comparison three suppliers the Guidelines, Association.
may be procured of price quotations under contracts obtained from at least two different awarded on the basis from a list of at least under countries eligible acceptable to the in accordance with procedures Part D: Review by the Association of Procurement Decisions 1. Review of invitation contracts: to bid and of proposed awards and final (a)With respect to each contract for goods to be awarded the procedures under Part A of this Section, 2 and 4 of Appendix 1 to the Guidelines for such contract are to be made out of the Special Account, such procedures shall be modified to the Association pursuant of the contract to said paragraph to the Association 2 (d) shall be furnished to the making of the first payment out of the Special Account in respect of such contract.
to ensure that the two conformed copies shall apply.

Where payments required to be furnished set forth in paragraphs prior (b) With respect to the first to be awarded under contract the procedures set forth in paragraphs 3 and shall apply.

Where payments for said shall be modi£ ied to ensure that the.
two :onformed f9,l ies r.equired' to "be 3 shall be Part C of this Section, 4 of Appendix 1 to the Guidelines such contract are to be made out of the Special Account, procedures of the contract furnished furnished pursuant to the Association pursuant to the Association to paragraph with the other information as part of the evidence 4 to this Agreement.

to said.
to said.

paragraph to be'furnished together (c) The provisions not apply to contracts Credit Account are to be of the preceding (b) shall on account of which withdrawals from the made on the basis of statements of subparagraph - 18 - expenditure with the exception under Part C of this Section, above.

of the first contract as referred to in subparagraph (b) to be awarded 2.

The figure of 10% is hereby specified paragraph 4 of Appendix 1 to the Guidelines.

for purposes of Section II.


Employment of Consultants and procedures Such consultants out the Project, whose qualifications, of employment shall be shall be selected on the basis of the "Guidelines by World Bank Borrowers and by the World Bank as 1.

In order to assist the Borrower in carrying the Borrower shall employ consultants experience and terms and conditions satisfactory to the Association.
in accordance with principles Association Consultants Executing Consultant Borrower shall employ such consultants st,µidard form of contract as shall have been agreed by Association, the Association.

Where no relevant standard contract documents have been issued by the Association, the Borrower shall use other standard forms agreed with the Association.

for consultants' with such modifications the using the services issued by the Agency" published Guidelines).
by the Bank in August 1981 (the For complex, time-based under contracts satisfactory assignments, for the Use of to the Guidelines proposals, of paragraph the provisions of the Consultant 2.

Notwithstanding the provisions requiring review or approval of budgets, short lists, selection letters of invitation, estimated shall not apply to contracts equivalent each.
However, said exception not apply to: (a) the terms of reference for single-source critical nature, as reasonably amendments to contracts equivalent of consulting evaluation selection or above.
reports and to cost less than $25,000 to prior Bank review shall firms; (c) assignments of a determined by the Bank; or ( d) 1 of this Section, prior Bank procedures, contracts, raising the contract value to $25,000 such contracts; (b) - 19 - SCHEDULE 4 Special Account l. For the purposes of this Schedule: (a) the term "Eligible Categories" means Categories ( l) of Schedule l to through (3) set forth in the table in paragraph l this Agreement; (b)the term "Eligible Expenditures" in for cost ·of goods and services required means expenditures respect of the reasonable the Project and to be financed allocated with the provisions from time to time to the Eligible of Schedule l to this Agreement; and out of the proceeds of the Credit Categories in accordance to $300,000 means an amount (c) the term "Authorized in the Special Account provided, Allocation" to be withdrawn from the Credit Account and 3 (a) of this however, that unless the Association shall shall be limited to an the aggregate amount of Credit Account plus the total amount of all equivalent deposited Schedule; otherwise agree, the Authorized amount equivalent withdrawals from the outstanding pursuant or exceed the equivalent of SDR 335,000. to Section 5.
02 of the General Conditions to $100,000 until to paragraph Allocation shall be equal to pursuant special commitments entered into by the Association 2.

Payments out of the Special Account shall be made exclusively for Eligible Schedule.

in accordance with the provisions of this Expenditures 3.
After the Association to it that the Special Account has been duly opened, withdrawals of the the and subsequent Authorized Special Account shall be made as follows: has received evidence withdrawals Allocation to replenish satisfactory (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a deposit or deposits or requests, the Authorized the Association from the Credit Account and deposit in the Special Account su�h amount or amounts as the Borrower shall have requested.
which do not exceed the aggregate On the basis of such' re'questt for a request or requests 8fl9jlll t of shall, on behalf of the Borr.ewer, Allocation.

withdraw (b) (i)For replenishment of the Special Account, the Borrower shall furnish to the Association requests such intervals as the Association shall into the Special Account at for deposits specify.
-20 - (ii)Prior to or at the t�me of each such request, the the to pursuant required for the payment or Borrower shall furnjish to the Association documents and other �vidence 4 of this Schedule paragraph in respect of which replenishment payments requested.

On the ba•is of each such request, Association withdraw from the Cr$dit Account and deposit into the Special Ac.count shall have requested by said documents and other evidence paid out of the Special Account for Eligible Expenditures.
, such amount as the Borrower and as shall have been shown shall, on behalf of the Borrower, to have been is the All such deposits Credit Account under the respective respective documents and other evidence.
equivalent shall be withdrawn by the Association Eligible from the and in the Categories, amounts, as shall have been justified by said shall the Borrower shall, at such time as the Association 4._ For each payment made by the Borrower out of the Special Account, reasonably other evidence Eligible showing that such payment was made exclusively such documents and for request, furnish to the Association Expenditures.

5.
Notwithstanding Schedule, deposits the Association into the Special Account: the provision$ of paragraph 3 of this shall not be required to make further (a)if, at any time, the Asso�iation shall have determined that all further withdrawals from the Credit Account in accordance with V of the General Conditions or this Agreement; and par�graph the provisions of Article (a) of Section 2.02 of should be, made by the Borrower directly (b)if the Borrower shall iu.,ve , within the period of tilneJ specified Association (ii)of this Agreement, furnished to the Association the audit of the records and accounts any of the :audit reports pursuant:to said Section iti, respect of for the Special Account; failed to furnish to the ip Se<:tion,;4,,01 (b) to be required (c)if, at any tilne, the Assoe:iation shall have notified the Borrower of its intention of the Borrower to make withdrawals to the provisions of Section.
to suspend :in whole or in part the right fi:lom the Credit Account pursuant 6.02 of the General Conditions; or - 21 - (d) once the total unwithdr$wn amount of the Credit less the amount of any to the Eligible Categories, allocated outstanding pursuant the Project, shall Authorized Allocation.
special commitment entered into by the Association to Section 5.02 of the General Conditions with respect to equal the equivalent of twice the amount of the shall follow such procedures withdrawal from the Credi� Account of the remaining to the Eligible Thereafter, unwithdrawn amount of the Credit $!located Categories specify by notice to the Borrower.
Such ,further withdrawals made only after and to the extent that the Association been satisfied that all such amounts temaining Special Account as of the date of such notice will be utilized making payments for shall be shall have on deposit in the in Eligible Expenditu�es.

as the Association shall pursuant the Borrower or in an amount not eligible shall have determined at any time or (ii) was not justified by the evidence 6.
(a) If the Association that any payment out of the Special Account: (i) was made for an expenditure 2 of furnished this Schedule; to the Association, the Association: Association may request; (or, if the Association an amount equal not so eligible agree, no further deposit by the Association Account shall be made until the Borrowe� has provided or made such deposit or refund, as the case may be.

to the amount of such payment or the portion thereof shall otherwise or justified.
Unless th� Association into the Special such evidence shallJ, promptly upon notice from evidence as the or (B) deposit into the Special Account (A) provide such additional shall so request, to paragraph refund to the Association) (b) If the Association that any amount outstanding required to cover further payments for Eligible Borrower the Association shall have determined at any time in the Special Account will not be the refund to shall, promptly upon notice fr� the Association, such outstanding amount.
Expenditures, ( c) The Borrower may, upon noti¢e to the Association, .

rf:fund the all or any portion o{ the f�nds Oll deposit.ih to the Association Special Account.

(d)Refunds to the Association 6 (a), (b) and (c) of this Schedule Account for subsequent withdrawal with the relevant provisions General Conditions.

made pursuant sha�l be credited or for cancellation to paragraphs to the Credit in accordance the of thi� Agreement, including