Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698844746131.pdf (Sierra Leone)
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!lil H\RLl INlE \iT L 10ilER tll tt rREt'l LOAN NO.

I.893.S1 GRAT{T NO.

I.DSF.811s-SL I 1fttl ilrvf upl{i r ,lt f.f+ftoBr; I FINANCING AGREEMENT Rural Finance and Community Improvement Programme - Phase II (RFCIP 2) .
between the REPUBLIC oF STERRA LEONE and the INTERNATIoNAL FUND FoR AGRICULTURAL DEvELoPMENT Signed in Rome, Italy and Freetown, Sierra Leone i j FINANCING AGREEMENT Loan Number: I-893-SL Grant Number: I-DSF-8115-SL l ) Programme Title: Rural Finance and Community Improvement Programme - Phase II ("RFCIP2" or "the Programme") The Republic of Sierra Leone (the "Borrower/Recipient") and The Intemational Fund for Agricultural Development (the "Fund" or "IFAD") (each a 'Party" and both of them collectively the "Parties") hereby agree as follows: PREAMBLE WHEREAS, the Borrower/Recipient intends to obtain co-financing ftom the National Social Security and Insurance Trust (NaSSIT), the International Finance Corporation (IFC) or other donor to supplement the financing of activiUes under this Programme.
WHEREAS, the Fund has agreed to extend to the Borrower/Recipient a loan (the "Loan") and a grant (the'Grant") for the purpose of financing the Rural Finance and Community Improvement Programme - Phase II described in Schedule 1 to this Agreement (the "Programme").
NOW THEREFORE, the Parties hereto hereby agree as follows: Section A 1, The following documents collectively form this Agreement: this document, the Programme Description and Implementation Arrangements (Schedule 1), the Allocation Table (Schedule 2), and the Special Covenants (Schedule 3).
2, The Fund's General Conditions for Agricultural Development Financing dated 29 April 2009, as may be amended from time to time (the "General Conditions'J are annexed to this Agreement, and all provisions thereof shall apply to this Agreement.

For the purposes of this Agreement the terms defined in the General Conditions shall have the meanings set forth therein.

3.
3.

The Fund shall provide a Loan and a Grant to the Borrower/Recipient (the "Financing"), which the Borrower/Recipient shall use to implement the Programme in accordance with the terms and conditions of this Agreement.

2 Section B 1.

A. thousand Special drawing rights (SDR 7 375 000).

The amount of the Loan is seven million three hundred and seventy-five B.

The amount of the Grant is seven million three hundred and seventy-five thousand Special drawing rights (SDR 7 375 000).

2.
2.

The Loan is extended on highly concessional terms, as defined in the General Conditions.

The Loan granted on highly concessional terms is free of interest but bears a service charge of three fourths of one per cent (0.75olo) per annum payable semi-annually in the Loan Service Payment Currency, and has a maturity period of forty (40) years, including a grace period of ten (10) years starting from the date of approval of the Loan by the Fund's Executive Board.
3 4 The Loan Service Payment Currency shall be United States Dollars.

The first day of the applicable Fiscal Year shall be January li.

Payments of principal and service charge shall be payable on each May 1* and 5.

November 1* 6.

There shall be three Accounts: - "Designated Account" in United States Dollars, to be opened in a bank acceptable to the Fund.
- 'Programme Account A" in local currency, to be opened in a bank acceptable to the Fund for the benefit of the National Coordination Unit ("NCU"), - "Programme Account B" in local curency for counterpart financing, to be opened in a bank acceptable to the Fund.
7, The Borrower/Recipient shall provide counterpart financing for the Programme in the amount of approximately four million five hundred thousand United States Dollars (USD 4 500 000) to cover taxes and duties, the fixed assets contribution to the APEX Bank "the APEX" and other Programme implementation costs, lncluding supervision, ln accordance with the approved Annual Work Plan and Budget CAWPB") of the Programme.

l Section C 1.
l Section C 1.

The Lead Programme Agency ("LPA") shall be Ministry of Agriculture, Forestry and Food Security CMAFFS"), which shall have the overall responsibility for the implementation of the Programme.

2.

APEX.

3. entry into force of this Agreement.

The Programme Completion Date shall be the ninth anniversary of the date of The following are designated as additional Programme Parties: the NCU and the Section D The Financing will be administered and the Programme supervised by the Fund.
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[uJal 'papuedsns 'pelre,\ir uaaq seq 'Joaraql uols!^ord ,(ue ro'("616") lenue6 uolleluaulaldull aurureJ6ord aql (e) ^q srql 3o uorsuadsns JoJ spunolo leuorllppe se paleu6!sap ele 6u rrvro;1o3 :lUatuea:6y eqf 'r I uolpas 4, any communication related to this Agreement: The following are the designated representatives and addresses to be used for For the Borrower/Reci pient: Minister of Finance and Economic Development (MOFED) Treasury Building George Street Freetown, Sierra Leone For the Fund: The President InternaUonal Fund for Agricultural development Via Paolo di Dono 44 00142 Rome, Italy This Agreement has been prepared in the English language in six (6) original copies, three (3) for the Fund and three (3) for the Borrower/Recipient.
, REPUBUC OF SiERRA LEoNE lf!

[{t+m-l.i:, Kaifala Marah Minister for Finance and Economic Development of the Republic of Sierra Leone r -l 451 l\ Date IMTERNATIoNAL FUND FoR AGRICULTURAL DEVELOPM ENT Kanayo Presid Date: 26 ADril 2013 5 ) ) schedule 1 Programme Description and Implementation Arrangements I. Programme Description 1, Target Population.
The Programme shall benefit the economically active rural poor including farmers and micro-and small-scale entrepreneurs, with special attention given to rural women and youth in the whole country covering all districts (13 districts, including rural areas of the Westem District, outside Freetown) (the "Programme Area").

2.

Goal.

The goal of the Programme is to reduce rural poverty and household food insecurity on a sustainable basis.

3, Objecuves.
3, Objecuves.

The objective of the Programme is to improve access to rural financial services, thereby enabling development of the agricultural sector.

The Programme will up- scale the on-going Rehabilitation and the Rural Finance and Community Improvement Programme CRFCIP") to a national level and forge linkages with other IFAD and donor supported projects, promoting long-term sustainability of the programme supported Rural Financial Institutions.

4.

Components.
4.

Components.

The Programme shall consist of the following components: component 1: strengthening and Expanding the Rural Finance System This component has the overall objective of developing the agricultural sector in Sierra Leone and of providing access of the targeted rural population to rural finance services.

It focuses on consolidating and ensuring the sustainability and impact of the Rural Financial Institutions ("RRs") including Community Banks fCBs"), which shall be strengthen and expected to.
be fully operauonal.

Moreover, this component shall include strengthening the technical support to the RFIS through the consolidation and establishment ofthe APEX.

Sub-component 1: Sustainable and Autonomous RFIS A. A.1 Support to the APEX.

This subcomponent shall be built on the consolidation and transformation of the experiences of the Technical Assistance Agency C'TAA") and the supporting role.it has provided in the field of rural financial services.
The TAA will be transformed into an APEX instituuon, which shall be established as the key Programme Party for all services related to the continued growth and sustainability of the RFIs.
The mission of the APEX is to provide vital banking and non-banking demand-driven support seryices to CBs and FSA with the aim of improving their operational efficienry and effectiveness, thus transforming them into efFcient and sustainable financial intermediaries/institutions capable of serving the communities in which they operate.
The main APEX services are expected to include: (i) administration of the Capital Investment in the CBs; (ii) administration of the AFF; (iii) the provision of supervisory and inspection functions to FSAS and CBs; (iv) the provision of technical assistance and support; (v) the Cash Management Unit; (vi) Cheque Clearing; (vii) Correspondent Banking; (viii) remittances, and (viii) Wire Transfers.

The APEX shall operate under the regulatory fra mework of the BoSL.

A.2 SupDort to the CBs.


The CBs are seen as a key factor to achieve outreach to rural areas through community owned and focused financial institutions.

The support to CBs focuses on expanding the number and outreach of the CBs.

This focus includes strengthening their autonomy and self-sufficiency so they become viable and form the critlcal link between the rural agricultural communities and the formal financial sector.
Support to CBs shall focus on (i) contributing to the capitalization of these institutions in 6 order to enable them to comply with the requirements of internal regulations; (li) strengthening the management of the CBs; (iii) upgrading their infrastructure and Management Information System ("MIS"); (iv) improving the financial performance of CBs in a sustainable manner and (v) promoting financial services and products that respond to rural population and smallholder farmers' needs.

A.3 Support to FSAs.


The FSAS are rural financial institutions providing loans and safe keeping services to their shareholders at village / ward level.

To complement these seryices, FSAs will be supported to provide addiuonal banking services on behalf of community banks under the Agency Agreement.
The support to FSAS will focus on: (i) expanding the number and outreach of the FSAS; (ii) strengthening the management; (iii) upgrading their infrastructure and MIS; (iv) improving the financial performance in a sustainable manner, and (v) promoting financial services and producG that respond to rural population and smallholder farmers' needs.
B. Sub-component 1.2 Promotion of Aoricultural Financial Products i The Programme seeks to help meet the shortcoming of the limited lending to agricultural sector activities through the establishment of the AFF and through increasing the capital of the CBs, to promote and make accessible agricultural financial products.

This sub- component will be financed by NaSSIT or another co-financier identified by the Borrower/Recipient.
The AFF has been designed to ensure that the rural population is enabled to access different financial services.

It is envisaged that the AFF will provide three primary financial products: (i) agricultural campaign/production loans; (ii) agricultural rehabilitation loans; and (iii) agricultrural equipment/processing loans.
The AFF Credit Policy and Procedures shall describe the way AFF will be adminlstered and its products may be accessed: The APEX and the MOFED shall enter into a MoU for the management and administration of this facility.

.

Component 2: Programme Management and Coordination This component will ensure that the Programme is efficiently and effectively managed so that the expected results will be achieved.
Gender, youth, environmental, knowledge management and communication considerdtions will be integrated into all aspects of the Programme management, and into activities of NCU.

II.

ImplementatlonArrangements 1.

Lead Programme Agency.

The LpA shall be MAFFS, with overall responsibility for the implementation of the Programme.
MAFFS shall delegate the functional and day-to- day implementation and coordination responsibilities for the overall programme to the on-going NCU, responsible for the implementation of all IFAD-financed projects/programmes.

Programme Steering CommiXee, 2.

2.L Establishment.

The Borrower/Recipient shall establish a psc which shall have overall Programme oversight and poliry guidance.
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Application of General Conditions.

(a) These General Conditions apply to all Financing Agreements (as such term is deftned in Section 2.01).

They apply to other agreements only if an agreement expressly so provides.

(b) If a particular provision of these General Conditions does not apply to an Agreement, the Agreement must provide explicitly that it does not apply.

ARTICLE II - DEFINITIONS SEc[oN 2.O1, General Definitions.
The following terms have the following meanings wherever used in these General Conditions: "Agreement" means a Financing Agreement or other agreement subject to these General Conditions.

"Annual Workplan and Budget" or "AWPB" means the annual workplan and budget for carrying out a Project during a particular Project Year, which includes the Procurement Plan, "Borrower" means the pa rty designated as such in an Agreement.
"Coercive practice" means impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party, 'Collusive practice" means an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party.
"Cooperating Institution" means an institution designated as such in a Financing Agreement as responsible for the administration of the Financing and/or the supervision of the implementation of the Project.

"Cooperation Agreement" means an agreement or agreements between the Fund and a Cooperating Institution by which a Cooperating Institution agrees to act as such.
"Corrupt practice" means offering, giving, receiving or soliciting, directly or indirectly, anything of value to improperly influence the actions of another party.

"Currenry" of a State or a territory means the currency that is legal tender for the payment of public and private debts in such State or territory.

l These General Conditions forAgricultural Development Financing were adopted by IFAD'S Executive Board on 29 April 2009.
Sedions 2.01,4.08(a) and 5.01 were amended by decision of the Executive Board on l T September 2010.

These General Conditions, as amended, apply to all Financing Agreements for projecls and progGmmes approved by the Executive Board during and subsequent to its ninety-seventh session in September 2009.

1 "Eligible Expenditure" means an expenditure that complies with Section 4.08.

"Euro" or "EUR" mean the currency of the European Monetary Union.

"Financing" means a Loan, a Grant, or a combination thereof.
"Financing Agreement" means a Project Financing Agreement or Programme Financing Agreement, pursuant to which the Fund agrees to extend Financing to the Borrower/Recipient, "Financing Closing Date" means the date on which the right of the Borrower/Recipient to request withdrawals from the Loan Account and/or Grant Account ends, which is six (6) months after the ProJect Completion Date or such later date as the Fund may designate by notice to the Borrower/Reclplent.
"Fiscal Year" means the twelve-month period designated as such in an Agreement.

"Fraudulent practice" means any action or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation.

"Freely convertible currency" means any currency so designated by the Fund at any time.

"Fund" means the International Fund for Agricultural Development.
"Grant" means a grant extended to a Recipient pursuant to a Financing Agreement or other Agreement.

"Grant Account" means the account ln the books of the Fund opened in the name of the Recipient to which the amount of the Grant is credited.

"Guarantee Agreement" means an agreement between a Member State and the Fund by which such Member State guarantees the performance of another Agreement, "Guarantof means any Member State designated as such in a Guarantee Agreement.
"IFAD Procurement Guidelines" means the Procurement Guidelines approved by the Fund's Executive Board in December 2004 (for Financing approved by the Fund's Executive Board prior to September 2010) orthe Project Procurement Guidelines approved by the Fund's Executive Board in September 2010 (for Financing approved by the Fund's Executive Board after September 2010) as such guidelines may be amended by the Fund.2 "IFAD Reference Interest Rate" means the rate determined periodically by the Fund as its reference rate for the computation of interest on its Loans.
"Lead Project Agenry" means the entity designated as such in an Agreement, which has overall responsibility for the execution of a Project.

"Loan" means a loan extended by the Fund to the Borrower pursuant to a Financing Agreement. )

) 2 Amended September 20'10 2 e 'luauraarbv Jo sapluv sl!

rlltM alueplotrfp ut punj fuelauohl leuotleurelul oql Iq aur!]
ot or.,r ll uro4 panle^ se slq6u 6urMeip le!f,ads ueaui ,,uos., ro,,slq6lu 6ulMero lpltads.. 'OVil 5ulltsllqelsl )uaueu6v aql Jo (q)Z'S el3HV r.lltM alueprotte ul punl aql r(q paulturalap se 'uos ur lunoure qlns Jo luale^lnba aql 'uotleutuJralap ,o aulll lue u; passardxa lunor.ue i(ue o1 padsal qllM 'sueaui ,,1ua;errnb3 5q5., aql le ^f,uarJnl 'luaulaal6v ue ut qtns sp paleuEtsap {1ed aq1 sueaul ,1uardroa6,.
'JeaA letrsl1 6urMolloJ aqq q6norql onuquol 1leqs 1 real pa[oJd 'rea lef,sll aq] Jo lutodptul aql JeXe s1;eJ lueuraa]Ey aql Jo arJoJ olur fu1ua Jo alpp eqt J!

leql 'Ja^aMoq 'peplnord toeraql Aep 1sel oql uo 6u;pua pue rpa1 lersu aql Jo Aep lsJU aq1 uo 6utuur6aq Jauparaql pouad qf,ea (11) pue 'rea1 lefsll luoirnr-ueql eql Jo lep 1sel aq1 uo 6u;pua pue luauraai6v ue Jo af,roJ o]u1 Aqua lo alep aq1 uo 6u1uu;6aq popad atq (1) sueau ,,rea^ patoid.. 'tueuaar6v ue u!
,!red pa[oJd e se pa]eu6lsap Allua pue l:ua6y pa[o.r6 peal aql (o1 pa]lu.rrl 1ou s; 1nq) sapnlrul "I]lpd lra[ord.. ural at|L 'Joarer]l yed ,(ue Jo po[oJd aq] Jo uolleluaueldu; aq1 ro1 a;qlsuodsar llqua qeea sueau:,lye6 pa[old" ^ue 'lno pagref, s!

pafo.rd aql qrlqM ul alpls raqura6 aq] sueauJ ,,alels raqula6 pa[ord.. 'ale6 uollalduo3 pa[ord aql uo 6urpua pue luaureaJ6v aql Jo alroJ otu!
fulua Jo alep aql uo 6u!uu!6eq 'lno palrrel eq ol sl tra[ord aql qclqal 6uunp pouad aq] sueaur ,,poUad uorleluaualdurl tla[ordlt aleu6lsap Aeu pun3 aql se alep ralel qf,ns :o 'pa1a;duror aq ol s!

pe[o:6 eq1 3o uo;1e1uau:aldu; eql qllqm uo luatuaa:6y ue ur pagpads alep aql sueeu ,aleg uoltalduo3 paford" 'lua!dllad/laMorrog aql ol alllou ^q 'tf,e[ord e ]o Ued {ue Jo lle Jo uolteluaLueldu!
aqt ol 6ulleler Il:ed paford lue pue pun3 eq] uaaMlaq luau:aa:6e Aue sueaLu ,luauJoeJ6v pe[o.r6., 'G)zo't uolpas ul pequlsap se suolleJado pa[o:6 .ro3 luno]trp ue sueaur lJunotrf,V pa[o.rd.. '6u;cueug aq1 ,(q 'yed ul Jo aloqM u!
'paf,ueuu pue luauaa:6y ue ul paqulsap aruu:er6o.rd .ro l:a[ord luatudo;aaap 1e:n11nrp6e aq] sueauJ ,,pa[old.. t 'spopad Lnuour (ZI) a^laMl Eulpaaffns Ja^of ol palepdn aq lleqs aures eql se 'uoneluaualdutl pafold Jo po!.led qfuoul (gf) uaalq6la lelllul aqt 6uuanor ueld luauarnf,old s,luardpaElar olJog aql sueau lueld luauaJnloJd" 'puelarl uaqIoN pue urelpg lpeJg Jo tr-top6u!)
pallun oql 1o rbua.unc aql sueau ,d99.. Jo,6u;pa1s puno6,, 'punl eql Jo alels raqua6 lue sueaul ,,alels JaquJaN., 'luauraar6v 6upueuH e u!

qtrns se pauuap lf,dexnl alque^uol A1aa.rJ aqg sueau.Icua.un3 luatuled af,l^Jas ueo'l!, 'ueo-l up uo a6reqr aa!rues lo lseralu!
Jo !o ledDuud arlt Jo luau.rled lue (ol palltrl!l 1ou 1nq) 6urpnlru; 'luatuea:6y 6ulcueutl e Japun punJ aql ol JolueJeng aql Jo leMoJJoE eql Iq apeu aq o1 pallturad Jo palnbar luau.rled lue sueaul ,,luatule6 ef,lllas uPo-I\ 'pallpaJtr sr ueol e Jo lunouje aql qtrlqM ol JaMoJJog aql Jo ouJeu aqg ur pauado punl eql Jo slooq aql u!
lunolf,e eql sueau ,lunotrtv ueo-Ir "Subsidiary Agreement" means any agreement or arrangement by which (i) the whole or part of the proceeds of the Financing are made available to a Project Party and/or (ii) a Project Party undertakes to carry out the Project, in whole or in part.

"Target Population" means the group of people intended to benefit from a Project.
'Taxes" means all imposts, levies, fees, tariffs and duties of any kind imposed, levied, collected, withheld or assessed by or in the territory of the Project Member State at any time.

"US dolla/' or "USD" means the currency of the United States of America.
"Value Date" means, in respect of any withdrawal from the Loan Account, the date on which such withdrawal is deemed made in accordance with Section 4.06 and, in respect of any Loan Service Payment, the date on which such Loan Service Payment is deemed made in accordance with Section 5.04.

"Yen" or "JPY" means the currency of Japan.

SEcnoN 2.O2, Use of Terms.


As used in these General Conditions and any Agreement, except as the context otherwise requires, terms in the singular include the plural, terms in the plural include the singular, and masculine pronouns include the feminine.

SEcrroN 2.03.

References and Headings.

Unless otherwise lndicated, references in these General Conditions to Articles or Sections refer to Articles or Sections of these General Conditions.
The headings of the Articles and Sections and in the Table of Contents of these General Conditions are given for convenience of reference only and do not form an integral part of these General Conditions.

ARTICLE III - THE COOPERATING INSTITI,TIOil SEsfloN 3.O1.

Appolntment ofthe Cooperatlng Institutlon.

A Financing Agreement may provide that a Cooperating Institution will be appointed to administer the Financing and supervise the ProJect, SEsrroN 3.O2.

Responsibilities of the Cooperating Institution.
If appolnted, the Cooperating Institution shall be responsibie for: (a) facilitating Project implementation by assisting the Borrower/Recipient and the Project Parties in interpreting and complying with the Financing Agreement; (b) reviewing the Borrower/Recipientt withdrawal applicaUons to determine the amounts which the Borrower/Recipient is entitled to withdraw from the Loan and/or Grant Account; (c) reviewing and approving on a no-objection basis the procurement of goods, civil works and services for the Project financed by the Financing; 4 (d) monitoring compliance with the Financing Agreement, bringing any substantial non-compliance to the attention of the Fund and recommending remedies therefor; and (e) carrying out such other functions to administer the Financing and supervise the Project as may be set forth in the Cooperation Agreement.
SEcTroN3,03.

CooperationAgreement.

If a Cooperating Institution is appointed, the Fund shall enter into a Cooperation Agreement with the Cooperating Institution setting forth the terms and conditions of its appointment.

SEcTroN 3.O4.

Actions by the Cooperating tnstitution.

Any action by the Cooperating Institution in accordance with a Cooperation Agreement shall be regarded and treated by the Borrower/Recipient, the Guarantor and the Project Parties as an action taken by the Fund.

SEcrroN 3.05.
SEcrroN 3.05.

Cooperatlon by the Borrower/Recipient and the Project Parties. )

The Borrower/Recipient, the Guarantor and the Project Parties shall take all necessary or appropriate steps to enable the Cooperating Institution to carry out its responsibilities smoothly and effectively.

ARTICLE IV - LOAN ACCOUNT AND WTTHDRAWALS SEcnoN 4.O1.

Loan and Grant Accounts.


Upon the entry into force of a Financing Agreement, the Fund shall open a Loan Account and/or a Grant Account in the narne of the Borrower/Recipient and credit the principal amounts of the Loan and the Grant respectively thereto.

withdrawals from the Loan and Grant Accounts.

SEcrroN 4.O2.
SEcrroN 4.O2.

(a) Between the date of entry into force of the Agreement and the Financing Closing Date, the Borrower/Recipient may request withdrawals from the Loan Account and/or Grant Account of amounts paid or to be paid for Eligible Expenditures.

The Fund shall notiry the Borower/Recipient of the minimum amount for withdrawals.
(b) No withdrawal shall be made from the Loan and/or Grant Accounts until the first AWPB has been approved by the Fund and the Fund has determined that all other conditions specifled in the Financing Agreement as additional general conditions precedent to withdrawal have been fulfilled.

The Financing Agreement may also establish additional specific conditions precedent to withdrawal applicable to particular categories or activities.
Withdrawals to meet the costs of starting up the Project may be made from the date of entry into force of the Agreement, subject to any limits established in the Financing Agreement.

5 ) ) SEcrroN4.O3.

SpecialCommitments.


Upon the Borrower/Recipient's request, the Fund may agree to make an irrevocable commitment to pay amounts necessary to guarantee a Letter of Credit used to finance Eligible Expenditures (a "Special Commitment") on such terms and conditions as the Borrower/Recipient and the Fund may agree.

Applications for Withdrawal, or Special Commitment.

SEcTroN 4.04.
SEcTroN 4.04.

(a) When the Borrower/Recipient wishes to request a withdrawal from the Loan and/or Grant Accounts or a Special Commitment, the Borrower/Recipient shall deliver to the Fund an application in the form specified therefor by the Fund, together with such documents and other evidence in support of such applicauon as the Fund shall reasonably request.
(b) The Borrower/Recipient shall furnish to the Fund satisfactory evidence of the authority of the person or persons authorised to sign such applications and the authenticated speclmen signature of each such person.

(c) Each such application, and the accompanying documents and other evldence, must be sufficient to satisfy the Fund that the Borower/Recipient is entitled to such withdrawal or Special Commitment.
(d) If the Borrower/Recipient requests a withdrawal from the Loan and/or Grant Accounts for amounts to be paid thereafter for Eligible Expenditures, the Fund may, before transferring such amount to the Borrower/Recipient, require that the Borrower/Recipient provlde evidence satisfactory to the Fund showing that previous withdrawals have been properly spent for Eligible Expenditures.
The Fund may place reasonable limits on the ampunt that the Borrower/Recipient may withdraw in advance or the overall balance of such advance withdrawals, and may require that such amounts be held in a freely convertible currency and/or be held in an account designated for that purpose in a bank acceptable to the Fund.

SEqrIoN 4,O5.

Transfer by the Fund.


Upon receipt of an authenticated and satisPactory application for withdrawal from the Borrower/Recipient, the Fund shall transfer to the account specified by the Borrower/Recipient the amount specifi ed therein.

SEcrroN 4.06.

Value Dates of Withdrawals.

A withdrawal shall be deemed made as of the day on which the relevant financial instituuon debits the account of the Fund chosen for the purpose of disbursing such withdrawal.

SEcEoN 4.O7.
SEcEoN 4.O7.

Allocations and Reallocations of Financing Proceeds.

(a) A Financing Agreement may allocate the amount ofthe Financing to categories of Eligible Expenditures and specify the percentages of such Eligible Expenditures to be financed by the Financing.

(b) The Fund shall monitor the uses of the Financing in order to determine when the allocation to a category has been depleted or is about to be depleted.
(c) If the Fund determines that the amount of the Financing allocated in the Financing Agreement to a category of Eligible Expenditures is or will be insufficient, the Fund may, by notice to the Borrower/Recipient: 6 (i) reallocate to such category amounts of the Financing allocated to another category to the extent required to meet the estimated shortfall; and/or (ii) if such reallocation will not fully meet the estimated shortfall, reduce the percentage of such Eligible Expenditures to be financed by the Financing.
SEcrroN 4.O8.

Eligible Expenditures.3 (a) The Financing shall be used exclusively to finance expenditures meeting each of the following eliqibiliW requirements: (i) The expenditure shall meet the reasonable cost of goods, works and services required for the Project and covered by the relevant AWPB and procured in conformity with the Fundt Procurement Guidelines.
(ii) The expenditure shall be incurred during the Project Implementation Period, except that expenditures to meet the costs of winding up the Project may be incurred after the ProJect Completion Date and before the Financing Closing Date.

1 (iii) (iv) The expenditure shall be incurred by a Project Party.
If the Agreement allocates the amount of the Financing to categories of Eligible Expenditures and specifies the percentages of such Eligible Expenditures to be financed by the Financing, the expenditure must relate to a category whose allocation has not been.

depleted, and shall be eligible only up to the percentage applicable to such category.
(v) The expenditure shall be otherwise eligible in accordance with the terms of the Financing Agreement, (b) The Fund may from time to time exclude certain types of expenditure from ellgibility.

(c) Any payment prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations, shall not be eligible for financing by the Financing.
(d) Any payments to a person or an entity, or for any goods, works or services, if making or receiving such payment constitutes a coercive, collusive, corrupt or fraudulent practice by any representatlve of the Borrower/Recipient or any Project Party, shall not be eligible for financing by the Financing.
SEcrroN 4.09, Refund of withdrawals, If the Fund determines that any amount withdrawn from the Loan and/or Grant Accounts was not used for the purposes indicated or will not be needed thereafter to finance Eligible Expenditures, the Borrower/Recipient shall promptly refund such amount to the Fund upon instruction by the Fund.

Except as the Fund shall otherwise agree, such refund shall be made in the currency used by the Fund to disburse such withdrawal.
The Fund shall credit the Loan and/or Grant Accounts by the SDR Equivalent of the amount so refunded, 3 Amended September 2010.

7 ARTICLE V - LOAN SERVICE PAYMENTS SEcTroN 5.01.
Lending Terms.a Loans provided by the Fund shall be given on highly concessional, intermediate or ordinary terms, as specified in the Financing Agreement: (a) Highly Concessional Terms: Loans granted on highly concessional terms shall be free of interest but bear a service charge of three fourths of one per cent (0.750lo) per annum payable semi-annually in the Loan Service Payment Currency, and shall have a maturity period of forg (40) years, including a grace period of ten (10) years starting from the date of a.pproval of the Loan by the Fund's Executive Board.
(b) Hardened Terms: Loans granted on hardened terms shall be free of interest but bear a service charge of three fourths of one per cent (0.75olo) per annum payable semi- annually in the Loan Service Payment Currency, and shall have a maturity period of twenty (20) years, including a grace period of ten (10) years starting from the date of approval of the Loan by the Fund's Executive Board.
(c) Intermediate Terms: Loans granted on intermediate terms shall be subject to lnterest on the principal amount of the Loan outstanding at a rate of one half of the IFAD Reference Interest Rate payable semi-annually in the Loan Service Payment Currency, and shall have a maturity perlod of twenty (20) years, including a grace period of five (5) years starting from the date that the Fund has determined that all general conditions precedent to withdrawal have been fulfilled in accordance with section 4.02(b).
(d) Ordinary Terms: Loans granted on ordinary terms shall be subject to interest on the principal amount of the Loan outstanding at a rate equal to the IFAD Reference Interest Rate, payable semi-annually in the Loan Service Payment Currenry, and shall have a maturity period of fifteen (15) to eighteen (18) years, including a grace period of three (3) yea rs starting from the date that the Fund has determined that all general conditions precedent to withdrawal have been fulfilled in accordance with section 4.02(b).
(e) Interest and service charge shall accrue on the outstanding principal amount of the toan and shall be computed on the basis of a 360-day year of twelve 30-day months.

The Fund shall provide the Borrower with a statement of interest and service charge due at least four (4) weeks prior to the date upon which payment is to be made.

(0 The Fund shall publish the IFAD Reference Interest Rate applicable in each interest period.
(S) During the grace period, interest and service charge shall accrue on the outstanding principal amount of the Loan and shall be payable semi-annually, but no payments of principal shall be due.

SEcnoN 5.02.

Repayments and Prepayments of Principal.

(a) The Borrower shall repay the aggregate principal amount of the Loan withdra\r{n from the Loan Account in semi-annual instalments, calculated over the maturity period minus the grace period.
The Fund shall inform the Borrower of the dates and amounts of the payments as soon as possible after the start of the period of maturity of the Loan.

(b) The Borrower shall have the right to prepay all or any part of the principal amount of the Loan, provided that the Borrower pays all accrued and unpaid interest and ' Anended September 2010 8 5 ' ovil 6 u !

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I ua waar 6v aql Jo (q)z uollras 's apl]Jv q]!M af,uepro3fe ul anle^ qf,ns eululalap lleqs punj aql 'Jaqloue Jo suJal u!
buarn: auo Jo anlel eql eulurJalap ol fuessacau sl ll lalaueq1 'salfuerrn] lo uonEnle^ '€o'9 Nolurfs :]]i:j'l:"T'fi": ,s arrluv.illM etrupprorf,e,, o,n, "r,'?

['J"1i'lf3,t#?Yi,Hfff Jo lunoue UCS aql Jo 'alep enp aql Jo se 'rbue::n3 luau{ed al!ruas ueo-l u!

luale^lnba aql aq lleqs luatuled af,!ruas ueo"l lue 1o lunoue aqj 'lueluaaJ6v 6u!

]ueu!J eql u!
pagleads ibuarn3 luauJlpd aflruas ueo'l eql ul epeu eq lleqs sluaulpd all^Jes ueol llv 'Iruarrn3 luaurled er!rues ueol 'ZO'9 Norrrrs .lcua.unl raqlo qf,ns Jo tunoure aq1 go lualerlnbl UCS aql ,(q pallqap aq lleLls slunol:V luero rolpue ueo-l aq1 ',bua.unc laq oue qtlM punl aq1 i(q paseqclnd uaaq seq leMerpqluvr Jo lfuerrnf, aql JI 'leMerpqlrm Jo alep anlpl aql Jo se pauluralap umeipqltiv\ Junoule aql Jo luale^lnb3 UOS eql Iq pe1;qap eq lleqs slunollv luerg rolpue ueo'j aql (q) 'palas leu punl aql se sa!f,uaJrnf, ro lcualrnl qlns u!
Jo 'alqeAed are:o pled uaaq aleq 6urrueur3 aq1 ;o spaero:d eql Jo lno patueuu aq ol salnlrpuedxa qe;qm ul saoueJJnl 3^lpadsar aql ul epeul oq lleqs qunollv lueJg rolpue ueo-l eqt uo{ slpMprpqlr^ (e) 'slPn eJpqlli ro, salfuaJrnS) 'IO'9 Norrflls ffi 'roJaraqt paleu6lsap punl aql Jo lunof,re aW sllpeJf, uoltntltsur lppueuu luelalal aql qllqM uo Aep aq1 Jo se epeuJ paureap aq lleqs slueuAed eJrruas ueo-l 'sluaru^ed af!ruas ueo'l Io saleo ontp^ 'tO'S Norr:[rs 'JaMoro€ aql ol alllou Aq a1eu6;sap leu: pung aql se uo;1nlllsur lerfueuu raq]o Jo IUpq qlns ul qunorse Jo lunolle qrns o1 p;ed aq lleqs sluau.ri(e6 af!ruas ueo-l llv 'luaur{ed ,o acEld pue rauueN .€O.S Norrots 'olaJaqt lJaJJa 6u!^!6 raue sluaulelsut 6ulureula: aql Jo qunoue pue salep aq1 6u1,!rreds 'uopec;;dde qf,ns Jo JaMoJrog aq] IJltou lleqs punJ aql 'ueo-l aql Jo tunoule ledpupd aql Jo sluaullelsur luauti(ed 6utureula: Iue ol eler ord par;dde aq lleqs ueo-i aqt Jo uollellarue3 1e1yed Auy (l) 'sluaurle$u!
ueo-l 6ululeual aql $ulp6p uaql pue a6:eqc lsu;e6e prg pallpaJl aq lleqs sguau:i(eda:d g1y al!^Jas pue 1seja1ur 6urpueFlno 'a1ep luau:{eda:d eql Jo se anp aJe qtrlqM pledeJd aq 01 lunouJp aq1 uo sa6leqr arrruas ^ue I i ) ) ARTICLE VII - IMPLEMENTATION OF THE PRO'ECT SEcnoN7,O1.

Projectlmplementation.
(a) The Borrower and each of the Project Parties shall carry out the Project: (i) with due diligence and efficiency; (ii) in conformity with appropriate administrative, engineering, financial, economic, operational, environmental and agricultural development practices (including rural development practices) and good governance; (iii) in accordance with plans, design standards, specifications, procurement and work schedules and construction methods agreed by the Borrower/Recipient and the Fund; (iv) in accordance with the provisions ofthe relevant Agreement, the AWPBS, and the Procurement Plan; (v) in accordance with the policies, criteria and regulatibns relating to agricultural development financing laid down from time to time by the Governing Council and Executive Board of the Fund; and (vi) so as to ensure the sustainability of its achievements over time.
(b) (i) ProJects shall be lmplemented on the basls of an Annual Workplan and Budget (AWPB), The Lead Project Agency shall prepare a draft Project AWPB for each Project based, to the extent appropriate, on the draft AWPBs prepared by the varlous Project Parties.

Each draft ProJect AWPB shall include, among other things, a detailed description of planned ProJect activities during the coming Project Year, a Procurement Plan, and the sources and uses of funds.
(ii) Before each Project Year, the Lead Project Agency shall, if required, submit the draft Project AWPB to the overslght body designated by the Borrower/Recipient for its review.

When so revlewed, the Lead Project Agency shall submit the draft Project AWPB to the Fund for comments no later than sixty (60) days before the beginning of the relevant Project Year.

If the Fund does not comment on the draft Project AWPB within thirty (30) days of recelpt, the AWPB shall be deemed acceptable to the Fund.
(iii) The Lead Project Agency shall adopt the Project AWPB in the form accepted by the Fund.

(iv) The Lead Project Agency may propose adjustments in the Project AWPB during the relevant Project Year, which shall become effective after acceptance by the Fund.

SEcrroN 7.O2.

Availability of Financing Proceeds.


(a) The Borrower/Recipient shall make the proceeds of the Financing available to the Project Parties upon terms and conditions specified in the Financing Agreement or otherwise approved by the Fund for the purpose of carrying out the Project.
(b) The Financing Agreement may provide that the Borrower/Recipient open and maintain one or more Project Accounts for Project operations iR a bank acceptable to the Fund, and shall identitr/ the Project Party responsible for operating such account or 10 accounts.

The operation of such accounG, unless otherwise specified in the Financing Agreement, shall be performed in accordance with the applicable rules and regulations of the Project Party responsible therefor.

Availability of Additional Resources.


SEcrroN 7.03.

(a) In addition to the proceeds of the Financing, the Borrower/Recipient shall make available to the Project Parties such funds, facilities, services and other resources as may be required to carry out the Project in accordance with Section 7,01.
(b) In addition to the proceeds of the Financing, the Financing Agreement may provide that the Borrower/Recipient shall make available to the Project Parties during the Project Implementation Period counterpart funds from its own resources in accordance with its customary national procedures for development, assistance.

SEcrroN 7.04.

Coordination of Activities.


In order to ensure that the Project is carried out in accordance with Section 7.01, the Borrower/ Resipient shall ensure that the relevant activities of its ministries, departments and agencies, and those of each Project Party, are conducted and -coordinated in accordance with sound administrative policies and procedures.

Procurement.

SEcnoN 7,05.


(a) Procurement of goods, works and services financed by the Financing shall be carried out in accordance with the provisions of the Borrower/Reciplent's procurement regulations, to the extent such are consistent with the IFAD Procurement Guidelines, Each Procurement Plan shall identify procedures which must be implemented by the Borrower/Recipient ln order to ensure conslstency with the IFAD Procurement Guldelines.
(b) By notice to the Borrower/ Recipient, the Fund may require that all bidding documents and contracts for procurement of goods, works and services financed by the Financing include provisions requiring bidders, suppliers, contractors, sub-contractors and consultants to: (i) allow full inspection by the Fund of all bid documentation and related records; (ii) maintain all documents and records related to the bid or contract for three years after completion of the bid or contract; and (iii) cooperate with agents or representatives of the Fund carrying out an audit or investigatlon.
SEcrroN 7.O5.

Use of Goods and Services.

All goods, services and buildings financed by the Financing shall be used exclusively for the purposes of the Project.

SECTION 7.o7.

Maintenance.

The Borrower/Recipient shall ensure that all facilities and civil works used in connection with the Project shall at all times be properly operated and maintained and that all necessary repairs of such facilities shall be made promptly as needed.

.t ,!

11 j ) fnsurance.


SEcrroN 7.08, (a) The Borrower/Recipient or the Lead Project Agency shall insure all goods and buildings used in the Project against such risks and in such amounts as shall be consistent with sound commercial practice.
(b) The Borrower/Recipient or the Lead Project Agency shall insure the goods imported for the Project which are financed by the Financing against hazards Incident to the acquisition, transportation and delivery thereof to the place of use or installation in accordance with sound commercial practice.

SEc[oN7.O9.

SubsidiaryAgreements.


(a) The Borrower/Recipient shall ensure that no Project Party shall enter into any Subsidiary Agreement, or consent to any modification thereof, inconsistent with the Financing Agreement or the Project Agreement.
(b) The Borrower/Recipient and each Project Party shall exercise its rights under any Subsidiary Agreement to which it is party to ensure that the interests of the Borrower/Recipient and the Fund are fully protected and the Project is carried out in accordance with Section 7.01.
(c) No provision of any Subsidiary Agreement to which the Borrower/Recipient is a pafi shall be assigned, waived, suspended, abrogated, amended or otherwise modified without the prior consent of the Fund, (d) The Borrower/Reclpient shall bear any foreign exchange risk under any Subsidiary Agreement to which it is party, unless otherwise agreed by the Fund.

SEcEoN 7,10.
SEcEoN 7,10.

(a) The Borrower/Recipient shall be fully responsible to the Fund for the due and timely performance of all obligations ascribed to it, the Lead Project Agency and all other Project Parties under any Agreement.

To the extent any Project Party enjoys legal personality separate from the Borrower/Recipient, any reference to an obligation of such Project Party in an Agreement shall be deemed an obligation of the Borrower/Recipient to ensure that such Project Party performs such obligation.
The acceptance by any Project Party of any obligation ascribed to it in an Agreement shall not affect the responsibilities and obli gations of the Borrower/Recipient.

(b) The Borrower/Recipient shall take all necessary or appropriate action within its powers to enable and assist the Lead Project Agency and any other Project Party to perform its obligations under an Agreement.
The Borrower/Recipient shall not take, and shall not permit any third party to take, any action that would interfere with such performance.

Performance of the Agreements.

SEc oN 7.11.

Key Project Personnel.

The Borrower/Recipient or the Lead Project Agency shall appoint the Project Director and all other key Project personnel in the manner specified in the Agreement or otherwise approved by the Fund.
All key Project personnel shall have qualifications and experience specified in the Agreement or otherwise approved by the Fund.

The Borrower/Recipient shall exercise best efforts to ensure continuity in key Project personnel throughout the Project Implementation Period.
The Borrower/ Recipient or the Lead Project Agency shall insure key Project personnel against health and accident risks to the extent consistent with sound commercial practice or its customary practice in respect of its national civil service, whichever is appropriate.

72 EI 'uollalduiotr slr uodn pe[ord aql Jo qesse aqt Jo uo!

]lsodslp aql uo aaJ6e lleqs lualdlrau/JoMorrog aql pue punJ 3qt 'atec uonaldruoS paford aql petord aql Jo uollPluaualdul aql alaldtJof sa!
ed ltra[oJd aql leql aJnsua lleqs ]ualdlrau/eMoJrog aqL 'uollalduo] palord '9T'z Nou:rrs ^q 'IJrlrqeureJsns a^arqf, e palord q]ns s]lurad 'uoDeuur ol llajja 6ul^r6 reue ',qf,lqM pue slsor sl!

ro^otrar o1 alei lsaJalu!

ue '^IEd lla[ord AUE Iq papuaya lrpartr Jo padsor ul 'sueaLu ,alpr ^]Jpd lsaralug alnrsodu uual atp 'uoqras s1q1 1o sasodrnd JoJ 'slsof, sl!
aslurlulur ol Jnoleapue lleqs qrpeJf, qens Eu;pualxa ipe6 pa[o.r6 qf,pa pup luerdr]au/raMoJJog aql 'saJnseeur qtrns Euoruv 'a^!+ra[qo ]eql o^alqf,p o1 'se;e;|od s,punj eql pue sa;erlod slr qllM luelslsuol 'sainseeu elepdordde {ue e1e1 lleqs }uald!trauleMoJog or11 'autll JaAo saleJ ]saralut aaplsod Eu;ugelureu ro 6ulqceal Jo alllf,afqo aq] qllm Agugof papnpuo: aq lleqs sMal^ar aseql '6uoueuH aql lq ({p:ar;pu; .ro A;pargp) parueuu ere qf,lqM uogelndo6 1a6re1 eql Jo sJaqu.reur ol papuaxa qlpaJf, lleqs punJ aql pue lueldDau/.reMolog aql 'pouod uolleluaualdu.rl pe!o:6 eq1 6upnq ^lleelpopad o1 alqerlldde saler $aralu!
eq1 ,v\anar ^ue ^ue 'sa1eg 6u;pua;ag 'SI'Z Nor[r]S I ^q 'papuauP se 'pJezeH sappllsad Jo uon$gpsep pepuauu@ad OH4A eq!
ol 6ulpJolle (qI ssEl3) snop:ezeg Alq6rg Jo (EI ssel3) snoplezeH lleuualy3 se paulsspll eq plnom qtrrqm uollelnuJtoJ eplll5ad Iue apn;cu1 lou op pa[oJd aq] rapun parnco.rd saplrpsad leql arnsua pue 'papuaure se '(OVl) suorlpN pallun aql Jo uolleslue6:6 ern1ln:;-r6y pue pool aql Jo sapllqsad Jo esn pue uonnqp$lq aql uo pnpuo3 Jo apo3 leuolleuralul aql Jo saldlfupd aql ql!^ Aldruol lleqs'pua leql ol 'pup pa[oJd aql rapun sar;pad lueu:a6eueur $ad aleudordde ulp]uleut alels JaquiaN pafor6 aq1 qrlqr ol lleqs saued paford aql 'rEln]lued uI '^iled eq selleeJl leuollpuJalul pue sMel leluauuojl^ua leuolleu qllaa rQ1r.u.ro;uor ul pup sJopeJ leluatrJuorl^ue ol pJe6ar u!
a3ue6!l!p enp qllM lno peuJet s!
pafoJd aql leql eJnsue o] seJnseaui elqeuoseaj lle alel lleqs salued pefo.rd aql pue ]uatdDauAa,\ ollog eqf 'sropel leluautuorl^u3 .tI.z Nor[r]s 'spoqlaur pale6a:66es;p Jepua6 6ulsn uorlelndo6 la6rel eql 6uoue pa1eco1le ere 'alqmlpeld luaya $allry eql ol ,paford aql Jo slueuaq llpqs salyed pafo:d eql pue ]ua!d lfa;/amoJJog aql pue sef,rnosar aql leql €rnsua .serrnosau pe[ord lo uollpsollv .€I.z Nor[r3s ^eur ^ue 'pung aq1 Aq paaJ6e se Jo ssaulsnq Jo asJnol leurJou aq1 ug ldaexa 'slasse gpa[o.r6 aql go iue Jo esodslp as!ruaq]o ro aseel ,llas lou (p) pue isep:adord reqqo pue luaudtnba 'lueld s1r a:e1dal pue ulelulptu ,alaado (r) :puuolad pup luaua6eupu paruegedxa pue lualadulor loldua (q) lsaslqtrue{ pue sa6al6pd 'saMod 'sapJado:d 'qq6p sll Maual pue uteluteut 'a.lgnbre o1 pue atueplxa alaod.roc sl!
ulpluleu ol uo[tre aqepdo:dde Jo fuessa]au ;;e a1e1 ,{11dLuo.rd (e) .

: I0'z uoqf,as qtrM aluep.rotrte u!

pa[ord aql ]no ,fute: o1 paJlnbar sp ,lleqs {-re6 pa[o.r6 qre3 'selued paford 'ZT.l Nou:r3s i , ) ARTICLE VIII - IMPLEMENTATION REPORTING AND INFORMATION SEsnoN8.Ol.

ImplementationRecords.


The Borrower/Recipient shall ensure that the Project Parties maintain records and documents adequate to reflect their operations in implementing the Project (including, but not limited to, copies or originals of all correspondence, minutes of meetings and all documents relating to procurement) until the Project Completion Date, and shall retain such records and documents for at least ten (10) years thereafter.

SEcrIoN 8.02.

Monitoring of Proiect Implementation.


The Lead ProJect Agenry shall: (a) establish and thereafter maintain an appropriate information management system in accordance with the Fund's Gur?e for Projed Monitoring and Evaluafrb, with which it shall continuously monitor the Project; .
(b) during the Project Implementation Period, gather all data and other relevant information (including any and all information requested by the Fund) necessary to monitor the progress of the implementation of the Project and the achievement of its objectives; and (c) during the Project Implementation Period and for at least ten (10) years .

thereafter, adequately store such information, and, promptly upon request, make such information available to the Fund and its representatives and igents.
SEcnoN 8.03.

Progress Report and Mld-Term Reviews.

(a) The Lead Project Agency, or other party so designated in the relevant Agreement, shall furnish to the Fund periodic progress reports on the Project, ln such form and substance as the Fund shall reasonably request.
At a minimum, such reports shall address (i) quantitative and qualitative progress made in implementing the Project and achieving its objectives, (ii) problems encountered during the reporting period, (iii) steps taken or proposed to be taken to remedy these problems, and (iv) the proposed programme of activities and the progress expected during the following reporting period.
(b) If specified in an Agreement, the Lead Project Agency and the Fund shall jointly carry out a review of Project implementation no later than the midpoint of the Project ImplementaUon Period (the "Mid-Term Review") based on terms of reference prepared by the Lead Project Agency and approved by the Fund.
Among other things, the Mid- Term Review shall consider the achievement of Project objectives and the constraints thereon, and recommend such reorientation as may be required to achieve such objectives and remove such constraints.

(c) The Borrower/Recipient shall ensure that the recommendations resulting from the Mid-Term Review are implemented within the specified time therefor and to the satisfaction of the Fund.
Such recommendations may result in modifications to the Agreement or cancellation of the Financing.

SEcrroN 8.o4.

Completion Report.

As promptly as possible after the Project Completion Date but in any event no later than the Financing Closing Date, the Borrower/Recipient shall furnish to the Fund a report on the overall implementation of the Project, in such form and substance as may be l4 specified in the Financing Agreement or as the Fund shall reasonably request.
At a minimum, such report shall address (i) the costs and benefits of the Project, (ii) the achievement of its objectives, (iii) the performance by the Borrower/Recipient, the Project Parties, the Fund of their respective obligations under the Agreement and (iv) lessons learned from the foregoing.

SEcrroN 8,05.

Plans and Schedules.


The Project Parties shall furnish to the Fund promptly upon their preparation, such plans, design standards, reports, contract documents, specifications and schedules relating to the Project, and any material modifications subsequently made therein.

SEcEoN 8.06.

Other Implementation Reports and Information.


In addition to the reports and information required by the foregoing provisions of this Article: (a) The Borrower/Recipient and the Project Parties shall promptly fumish to the Fund such other reports and information as the Fund shall reasonably request on any matter relating to the Project or any Project Party. )
(b) The Borrower/Reclpient and the Project Parties shall promptly inform the Fund of any condition that lnterferes with, or threatens to interfere with, the implementauon of the Project or the achlevement of its objectives.

In particular, the Borrower/Recipient and the Project Parties shall promptly notify the Fund of any allegations of fraud and/or corruption that are received ln relation to any of the ProJect activities.

ARTICLE IX - FINANCIAL REPORTING AND INFORMATION SEcnoN 9.O1.

Financial Records.
Financial Records.

The Project Parties shall maintain separate accounts and records in accordance with consistently maintalned appropriate accounting practices adequate to reflect the operations, resources and expenditures related to the Project until the Financing Closing Date, and shall retain such accounts and records for at least ten (10) years thereafter. )

SEcrIoN9.02, FinancialStatements.


The Borrower/Recipient shall deliver to the Fund detailed financial statements of the operations, resources and expenditures related to the Project for each Fiscal Year prepared.in accordance with standards and procedures acceptable to the Fund and deliver such financial statements to the Fund within four (4) months of the end of each Fiscal Year.

SEsnoN 9.03.

Audit of Accounts.


The Borrower/Recipient shall : (a) each Fiscal Year, have the accounts relating to the Project audited in accordance with auditing standards acceptable to the Fund and the Fund's Guidelines on Project Audits (for Borrowers'Use) by independent auditors acceptable to the Fund; (b) within six (6) months of the end of each Fiscal Year, tumish to the Fund a certified copy of the audit report.
The Borrower/Recipient shall submit to the 15 Fund the reply to the management letter of the auditors within one month of receipt thereof; (c) if the Borrower/Recipient does not timely tumish any required audit report in satisfactory form and the Fund determines that the Borrower/Recipient is unlikely to do so within a reasonable period, the Fund may engage independent auditors of its choice to audit the accounts relating to the Project.
The Fund may finance the cost of such audit by withdrawal from the Loan and/or Grant Accounts.

SEcnoN 9.O4.

Other Financial Reports and fnformation.

In addition to the reports and information required by the foregoing provisions of this Article: (a) The Borrower/Recipient and the Project Parties shall promptly furnish to the Fund such other reports and information as the Fund shall reasonably request on any financial matter relating to the Financing or the Project or any Project Party.
(b) The Borrower/Recipient and the Guarantor shall promptly inform the Fund of any condition that interferes with, or threatens to interfere with, the maintenance of Loan Service Payments.

(c) The Project Member State shall promptly furnish to the Fund all information that the Fund may reasonably request with respect to financial and economic conditions ln iLs territory, including its balance of payments and its external debt.

ARTICLE X.

COOPERATION SEcrroN 1O.O1.

Cooperation, Generalty.


The Fund, the Cooperating Instituuon and each Project Party shall cooperate fully to ensure that the objectives of the Project are achieved.

SEqrroN 1o,O2.

Exchange of Vlews.

The Fund, the Borrower/Recipient and the Lead Project Agenry shall, from time to time at the request of any one of them, exchange views on the Project, the Flnancing, or any Project Party.

SEcrroN 10.03.

Visits, Inspections and Enqulries.
The Borrower/Recipient and the Project Parties shafi enable agents and representatives of the Fund from time to time to: (a) visit and inspect the Project, including any and all sites, works, equipment and other goods used for Project-related purposes; (b) examine the originals and take copies of any data, accounts, records and documents relevant to the Financing, the Project, or any Project Party; and (c) visit, communicate with and make enquiries of all Project personnel and any staff member of any Project Party, ) j 16 SEcrroN 1O.O4.
Audits Initiated by the Fund.

The Borrower/Recipient and the Project Partles shall permit audltors designated by the Fund to audit the records and accounts relating to the Project.

The Borrower/Recipient and the Projeit Parties shall cooperate fully with any such judit and accord the auditors the full rights and privileges of agents or representatives of the Fund under Section 10.03.

With the exception of audits carried out in accordance with Section 9.03(c), the Fund shall bear the cost of such audits.
SEcrIoN 1O.O5.

Evaluations of the Proiect.

(a) The Borrower/Recipient and each Project Party shall facilitate all evaluations and reviews of the Project that the Fund may carry out.during the Project Implementation Period and for ten (10) years thereafter.
(b) As used in this Section, the term 'facilitate", in addition to full compliance with Articles VIII, IX and this Article X in respect of such evaluations and reviews, includes provlding tlmely loglstical support by making available Project personnel and equipment and promptly taking such other action as the Fund may request in connection with such evaluauons and reviews, but does not include lncurring out-of-pocket expenses.

SEc[oN 10.06.

Country Portfolio Revlews.
The Project Member State shall permit the agents and representatives of the Fund, in consultation with the Project Member State, to enter its territory from time to time to exchange views with such persons, visit such sites, and examlne such data, records and documents as the Fund may reasonably request in order to carry out a general review of all projects and programmes financed, in whole or in part, by the Fund in its territory and all financlng extended by the Fund to the Project Member State.
The Project Member State shall ensure that all concerned parties cooperate fully in such review.

ARTICLE XI - TAXATION SEsrIoN 11.01.

Taxatlon.

(a) The Financing and all Loan Service Payments shall be exempt from all Taxes, and all Loan Service Payments shall be made free and clear of Taxes.

(b) The Agreement shdll be exempt from any Taxes on signature, delivery or registration.
(c) The use of any proceeds of the Financing to pay for Taxes is subject to the Fund's policy of requiring economy and efficiency in the use of its Financing.

Therefore, if the Fund at any time determines that the amount of any such Tax is excessive, discriminatory or otherwise unreasonable, the Fund may, by notice to the Borrower/Recipient, reduce the percentages of Eligible Expenditures to be financed by the Financing which are specified in the Financing Agreement.

SEcrroN 11.o2.

Tax Refunds.


If the Fund determines at any time that any amount of Financing proceeds have been used to pay Taxes that it has determined to be excessive, discriminatory or otherwise unreasonable, it may require the Borrower/Recipient, by written notice, to refund such amount promptly to the Fund.

Upon receipt thereof, the Fund shall credit the Loan and/or Grant Accounts in the amount of such refund. )

l t7 SEcrroN 12.01.

Suspension by the Fund.


(a) Whenever any of the following events has occurred and is continuing, the Fund may suspend, in whole or in part, the right of the Borrower/Recipient to request withdrawals from the Loan and/or Grant Accounts: (i) The Borrower has failed to make any Loan Service Payment when due, whether or not the Guarantor or any other third party has made such Loan Service Payment.
(ii) The Borrower/Recipient has failed to make any payment due under any other Financing Agreement, Guaranteq Agreement, or other financial obligation of any kind of the Borrower/Recipient to the Fund, whether or not any third party has made such payment.

(iii) (iv) The Guarantor has failed to make any Loan Service Payment when due.
The Guarantor has failed to make any payment due under any other Financing or Guarantee Agreement between the Guarantor and the Fund, or other financial obligation of any kind of the Guarantor to the Fund.

(v)-' The Fund has determined that the Projdct has failed to tulfil, or is unlikely to fulfil in a tlmely manner, its purposes as stated in the Agreement.
(vi) The Fund has determined that a situation has arisen which may make it improbable that the Project can be successfully carried out or that any Project Party will be able to perform any of its obligations under any Agreement.

(vii) The Project Member State has been suspended from membership in the Fund or ceased to be a Member State; or the Project Member State has delivered a notice of its intention to withdraw from the Fund.
(viii) Any representation made by the Borrower/Recipient, the Guarantor, or any Project Party in any Agreement, or any statement furnished in connection therewith and relied upon by the Fund in making the Financing, is incorrect or misleading in any material respect.

I (ix) If the Borrower/Recipient is not a.Member State, the Fund has determined that any material adverse change in the condition of the Borrower/Recipient has occurred.
(x) Either the Borrower/Recipient or the Guarantor has been unable to pay its debts generally as they come due.

(xi) Any competent authority has taken action for the dissolution of the Lead Project Agency or suspension of its operations.

(xii) Any competent authority has taken action for the dissolution of any Project .
Party (other than the Lead Project Agency) or suspension of its operations, and the Fund has determined that such dissolution or suspension is likely to have a material adverse effect on the Project.

18 (xiii) The Borrower/Recipient has failed to make any funds, facilities, services and other resources available to the Project Parties in accordance with Sections 7 .O2 or 7 .O3.
(xiv) The Fund has not received any audit report or other document referred to in Article VIII (Implementation Reporting and Information) or Article IX (Financial Reporting and Information) within the time prescribed therefor in the Agreements, or the audit report is not fully satisfactory to the Fund, or the Borrower/Recipient or any other Project Party has otherwise failed to perform its obligations under Article VIII or IX.
(xv) The Lead Project Agency or any other Project Party has failed to perform any of its obligations under a Project Agreement.

(xvl) The Borrower/Recipient or the Lead Project Agency has failed to perform any of its obligations under any Subsidiary Agreement.
(xvii)Any Project Party (other than the Lead ProJect Agenry) has failed to perform any of its obligations under any Subsidiary Agreement, and the Fund has determined that such failure has had, or is likely to have, a material adverse effect on the Project.
(xviii) Any Subsidiary Agreement or any provision thereof has been assigned, waived, suspended, terminated, amended or othenarise modified without the prior consent of the Fund, and the Fund has determined that such assignment, waiver, suspension, termination, amendment or modification has had, or is likely to have, a material adverse effect on the Project.
(xix) The Fund has suspended, ln whole or in part, the right of the Borrower/Recipient or the Guarantor to request or make withdrawals under any other Agreement with the Fund.

(xx) The Borrower/Recipient or any Project Party has failed to perform any other obligation under the Financing Agreement or any other Agreement.

(>o<i) The Fund determines that any amount of the Financing has been used to finance an expenditure other than an Eligible Expenditure.
(xxii)The Fund, after consultation with the Borrower/Recipient, has determined that the material benefits of the Project are not adequately reaching the Target Populatlon, or are benefiting persons other than the Target Population to the detriment of the Target Population.
()odii) The Borrower/Recipient has defaulted in the performance of any Special Covenant set forth in the relevant Agreement, and such default has continued unremedied for a perlod of thirty (30) days, and the Fund has determined that such default has had, or is likely to have, a material adverse effect on the Project.
(xxiv) The Fund has given notice to the Borrower/Recipient that credible allegations of coercive, collusive, corrupt or fraudulent practices in connection with the Project have come to the attention of the Fund, and the Borrower/Recipient has failed to take timely and appropriate action to address the matters to the satisfaction of the Fund.

(xxv) Procurement has not been or is not being carried out in accordance with the IFAD Procurement Guidelines.
19 OZ 'slueulrururof, lellsds r.llns Jo aoreqlslp llnJ aql uodn pallalueo aq lleqs qrlLlM 'quaurl!r.uruof, lelladS pa6Jeqlslpun ot pefqns s]unoue Aue pue eleq 6u;so13 6uloueull aql Aq pa^laral lprv\prpqllM .ro1 suo;1erg1dde Jo salueleq uMeJpqllMun ,(ue lo; ldarxa 'aleo 6ulsolf, 6u!trueull aql uo pallaluel eq lleqs slunof,lv luerg rolpue upol aql ur 6u1uleura: slunoute {uV (q) 'luerd!3au/JoMorrog eql ol e3llou Jo qtrledslp uodn a^llraJJa aq lleqs uoqellaf,uel qlns 'uollellaluel :o1 punorE lpuolllppe ue se luauaeroy 6u;rueug lue^alar aq1 u; peg;eads luane lue Jo 'aq Aeu aser aql se 'a3uajJnf,lo-uou Jo afuaJJncro aq1 uod6 (11r) 'paleulurJal eq pe[o:6 aq1 leql papuaLuuof,ar seq Mona1 urral-plN aqr (l^) sl!
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saJnllpuadxe lup Jo lladsal u!
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slunoure Eululelual aql Ued (e) 'punJ eql Aq uo11e|lacuef, .ZO'ZI Notr3JS 'papuadsns aq lleqs slunolrv luerg rolpue ueo-l aql uo{ slpMprpqllM panbal o1 luardDeulaMoJro8 aql Jo ]q6!

aql 'onp s!

1!
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ttuoi 1as punj 3ql Jo salPaulal atlL 'salPeueu raqlo '90'zT NOIrf,sS 'I1eqe1pau.ru; alqeled Pue enp auoreq lleqs sa6reqc raqlo pue $aJalu!

'led!f,uud q:ns uodna.riqM 'roluereng eql pue luard IlaN/JaMorJog aql ol alllou go q:1eds|p uodn a^lpaJJa aq lleqs uoneJellap qlns 'luatuaa:6V 6u!lueu!l aq1 ug pagpads 'lue J!

'pouad eql roJ panu[uo, seq pue peJJnsro seq uolpas sgql 1o sasod.rnd eql roJ lueuiear6v EupueuH aql u!
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'(lruo() q6noql (;r1x) sqder6ued ul paulfads lue^a (p) ^up TO'zI uolpes Jo 'e^lsnlf,ur '(A!)

q6noJql (l) sqderoe:ed u!

pau!f,ads luana ,(ue (c) lsAep (Og) I]llrll Jo popad e roJ sanulluotr pue parrnf,oo seq lalqeAed pue anp i;alerpauul1 aq o1 6u;pue1s1no uaql JotueJeng eql ro lueld!
)aulamorJog aql ot ueol raqto i(ue 1o led;rupd aqt parellap seq PunJ aql (q) Jo 'a^!snpu!
'(;;x) q6no:qg (n) sqder6ered u1 peg;rads luarra lue (e) lpeJJnf,fo seq IO'ZI uollles :alqeAed pue anp i(1e1e1pautu1 eq ol 'uoeJaql sa6req: Jeqto pue $aralur perulfe lle qllM Jeqle6ol 'oulpuelqno uaql ueo'l eql Jo lunoure ledrru;.rd aql aJplrap Aeu.t punl eql 'JoaJeql alupnulluol aql 6u;rnp atu;1 luanbasqns lue 1e 'pa.uncro seq sluola 6u1r*o11og aqg 3o r(ue eull i(ue le JI 'rQpnlep Jo uolleralafrv .SO'ZI Nou:r:ts .uorsuadsns Jo uo[ellafuef i(ue 6u1pue1sq1!M]ou paJJe pue af,ro] llru u!
anuJluotr lleqs luouaar6v 6uoueul3 aql Jo suolsl^oJd lle 'ap!
V sll.ll ul pap!^ord se 1darx3 (q) ^lssaldxa 'eStr\,uaqlO seprloJd llssa:dxa luaullluuro3 lerf,eds qf,ns ssalun 'punJ aq1 Iq apeul luaullutulo3 1e;oadg lue ol pa[qns s]unoule o lldde lleqs uogsuadsns ro uot]ellaluel oN (e) 'uo;suadsng ro uollelleruEJ Jo Alt!qeillddy .rO.ZI Nor[r3s 'punj aql Joaraql luaua6palMou)re uodn alltf,eJJa auofaq lleqs uollellarupo qtns 'luourltultuol lellads ol po[qns slunoule roJ lda]xa '6u!tueu!l aql Jo lunoure uMerpqlrr{un lualdDau/jauo.r.rog aql 'Joluejeng aql Jo atruaJJnluol aql qllM pue punj aql qIM uoqellnsuol JaUV 'lueldlca8/rernorrog aql lq uollellaoue3 .€O'zI Norr:)f,S laluer punl eql ol atrllou Aq ^ue ^euJ ^q { ( ARTICLE XIII - ENTRY INTO FORCE AND TERMINATION SEcrroN 13,O1.
Entry into Force, An Agreement or amendment thereto shall enter into force on the date when both the Fund and the Borrower/Recipient have signed it, unless the Agreement states that it is subject to ratification, in which case the Agreement shall enter into force on the date the Fund receives an instrument of ratification, SEc[oN 13.02.

Termination before Withdrawal.


The Fund may terminate the Agreement and all rights and obligations of the parties thereunder if: (a) before the date of first withdrawal from the Loan and/or Grant Accounts, any event of suspension specified in Section 12.01 has occurred; or (b) before the date of first withdrawal from the Loan and/or Grant Accounts, the Borrower/Recipient, the Guarantor or any other Project Party has taken any action inconsisterit with the object and purpose of any Agreement. )
SEsrIoN 13.O3.

Termlnatlon upon Full Performance.

An Agreement and all obligations of the parties thereunder shall terminate when the entire principal amount of the Loan withdrawn from the Loan Account and all interest and other charges which shall have accrued on the Loan have been paid and when all other obligations of the Parties have been fully performed, or when agreed by the Parties.

ARTICLE XIV.

ENFORCEABILITY AND RELATED MATTERS SEcEoN 14.O1, Enforceabllity.
The Agreement and the rights and obligations of the parties thereunder shall be valid ' and enforceable in accordance with thelr terms, regardless of any law to the contrary in the territory of the Project Member State. )

SESrIoN 14.O2.

Failure to Exercise Rights.

No delay in exercising, or failure to exercise, any right, power or remedy of any party under an Agreement shall impair any such right, power or remedy, or be construed as a waiver thereof.
No actlon or omission of any party in respect of any default under an Agreement shall impair any right, power or remedy of such party in respect of any subsequent default.

SEcrroN 14,03.

Rights and Remedies Cumulative.

The rights and remedies of any party under an Agreement are cumulative and (except as otherwise expressly provided) not exclusive of any right or remedies that such party would otherwise have.

22 ) I in respect of such Agreement.

SEcnoN 14.04.

Arbitration.


(a) The parties to an Agreement shall endeavour to settle through amicable means any controversy between th€m (b) Failing the settlement of a controversy through amicable means, the controversy shall be submitted to arbitration for settlement.

The parties to the arbitration shall be the parties to the Agreement in controversy, except that the Guarantor may intervene or be interpleaded in any controversy that may affect its rights or obligations under the Guarantee Agreement.
(c) The Arbitral Tribunal shall consist of a single arbitrator appointed by agreement of the parties or, if they do not agree within three (3) months after proceedings are instituted under paragraph (d) below, by the President of the International Court of Justice or, failing appointment by him, by the Secretary-General of the United Nations.

If the arbitrator shall resign, die or become unable to act, a successor arbitrator shall have all the powers and duties of such original arbitrator.
(d) An arbitration proceedings may be instituted under this Section upon notice by the party instituting such proceedings to the other party or parties.

Such notice shall contain a statement setting forth the nature of the controversy or claim to be sUbmitted to arbitration.

(e) The arbitration proceedings shall take place at such time and place as shall be fixed by the arbitrator.
(0 Subject to the provisions of this Section and except if the parties shall otherwise agree, the arbitrator shall decide all questions relating to his competence and shall determine the procedure for the arbitration proceedings, (S) The arbitrator shall afford to all parties a fair hearing and shall render his award in writing, Such award may be rendered by default.

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 flnal and binding upon the parties.

Each party shall abide by and comply with any such award rendered by the arbitrator in accordance with the provisions of this Section.

(h) The parties shall fix the amount of the remuneration of the arbitrator and such other persons as shall be required for the conduct of the arbitration proceedings.
If the parties shall not agree on such amount before the arbitration proceedings begin, the arbitrator shall fix such amount as shall be reasonable under the circumstances.

Each party shall defray its own expenses in the arbitration proceedings.

The costs of the arbitrator shtrll be divided between and borne equally by the Fund on the one slde and the other parties on the other side.
Any question concerning the division oF the arbitrato/s costs among the parties or the piocedure for payment of such costs shall be determined by the arbitrator.

(i) The provisions for arbitration set forth in this Section shall be instead of any other procedure for the settlement of controversies between the padies, and any claim by either party against the other party arising thereunder.
(j) If the award has not been complied with within thirty (30) days after the counterparts of the award have been delivered to the parties, any party may enter judgement upon, or institute a proceeding to enforce, the award in any court of competent jurisdiction against any other party.

Such party may enforce such judgement by execution or may pursue any other appropriate remedy against such other party for the enforcement of the award.
Z) (k) Service of any notice or process in connection with any proceeding under this Section or (to the extent that such remedy shall be available) in connection with any proceeding to enforce any award rendered pursuant to this Section may be made in the manner provided in Section 15.01.

The parties may waive any and all other requirements for the service of any such notice or process.

ARTICLE XV .

MISCELLANEOUS PROVISIONS SEcrroN 15.01.

Communications.
Communications.

All notices, requests and other communications given or made under an Agreement shall be in writing.
Except as otherwise expressly provided in the Agreement, any such notice, request or other communication shall be deemed duly given or made when delivered by hand, mail, telegram, cable, facsimile or email to the party to which it is given or made at such partyt address specified in the particular Agreement, or at such other address as such party may designate by notice to the other parties thereto.

SEsrroN 15.02.

Language of Reportlng.


The Borrower/Recipient and the Project Parties shall deliver all reports and information to the Fund in the language of the Agreement, or in any other language agreed by the Parties.

SEcnoN 15.03.

Authority to Take Action.


The representative or agent so designated in any Agreement, or another person duly authorized in writing by such representative or agent, may take any action and sign any document in connection with such Agreement on behalf of such party, SEcnoN 15,04.

Evidence of Authority.


Upon request by the Fund, the Borrower/Recipient, the Guarantor and any Project Party shall fumlsh to the Fund sufficient evidence of the authority of the person or persons referred to in Section 15.03, and the authenticated specimen signature of each such person.

sEcrroN 15.05.

Modifications of the Agreement.


The parties may agree from time to time to modify the terms and conditions of an Agreement (including, but not limited to, the terms and condiuons of these General Conditions as applied thereto) or the applicauon of the Agreement.

Any amendment to an Agreement shall enter into force in accordance with the provisions of Section 13.01 hereof, unless the parties agree otherwlse.

SEcrroN 15.06.

Change of Entity or Representative.


If a party wishes to appoint any successor to, reassigns the responsibilities of, or changes the designation or address of any of the entities specified in an Agreement, such party shall give notice thereof to the other parties.

Upon acceptance by the other parties, such new entity shall constitute the entity fully responsible for carrying out the functions assigned to its predecessor under the Agreement.
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