제16268호                             관                 보                  2006. 6. 5. (월요일)

                   Article 2                                               Article 3
  The terms and conditions of the Loan, as           1. The eligible source countries for the
well as the procedures for its utilization, shall        procurement of goods and services
be governed by the Loan Agreement, which                 including consulting services required for
shall contain, inter alia, the following                 the Project shall be the Republic of Korea
principles:
                                                         for the foreign currency portion and the
(a) The repayment period shall be thirty (30)
                                                         Democratic Socialist Republic of Sri Lanka
  years including a grace period of ten (10)
                                                         for the local currency portion. However,
  years;
                                                         items which are either impossible or
(b) The interest rate shall be zero point five
                                                         uneconomical to purchase from the eligible
  percent (0.5%) per annum;
                                                         source countries may be procured, with
(c) The disbursement period shall be forty-
                                                         prior consent of the Bank, from any third
  eight (48) months from the effective date of
  the Loan Agreement or such other period as             country, up to a value of one million eight

  the Borrower and the Bank agree upon;                  hundred      thousand         US   dollars

(d) A service charge of one-tenth of one                 (US$1,800,000).

  percent (0.1%) of the amount of each               2. The suppliers of all goods and services,
  disbursement in case of a direct payment               including consulting services necessary for
  procedure, or one-tenth of one percent                 the implementation of the Project shall be
  (0.1%) of the amount specified in the letter           selected through competitive bidding among
  of commitment in case of a commitment                  Korean suppliers or direct contracting with
  procedure, shall be collected by the Bank;             a Korean supplier.
(e) All banking charges and/or costs for             3. The procurement contract or the consulting
  services rendered by banks in connection               contract shall be concluded within eighteen
  with disbursements of the proceeds of the
                                                         (18) months from the effective date of the
  Loan, repayment of principal or payment of
                                                         Loan Agreement.
  interest payable to the Bank under the Loan
                                                     4. Details of the methods and procedures for
  Agreement shall be subject to a banking
                                                         procurement shall be set out in the Loan
  arrangement to be concluded between the
                                                         Agreement.
  concerned banks of the two countries; and
                                                                           Article 4
(f) In the event the Borrower fails to make
                                                         In the event the funds available from the
  payment of all or any portion of the
  principal of the Loan or any other amount          proceeds of the Loan are insufficient for the

  when due under the Loan Agreement, the             full implementation of the Project, the

  unpaid amount shall bear an overdue charge         Borrower shall promptly make arrangements

  at the rate of two percent (2.0%) per annum        to provide such funds as shall be needed.
  above the interest rate specified in the Loan                            Article 5
  Agreement.                                             The proceeds of the Loan shall be disbursed

                                                    19