제18753호                               관             보                  2016. 5. 4.(수요일)
                                               Article 2
    The terms and conditions of the Loan, as well as the procedures for its utilization, shall be
governed by the Loan Agreement, which shall contain, inter alia, the following principles:
    (a) The repayment period shall be forty (40) years including a grace period of ten (10) years;
    (b) The interest rate shall be zero point one five percent (0.15%) per annum;
        When the Borrower makes a procurement contract with Korean Small and Medium
        Enterprises (SMEs) or Medium-Large Companies, preferential interest rates shall apply to
        the Loan covering civil works and procurement of equipment and facilities as follows:
        (i) In case one or more Korean SMEs (including a consortium or joint venture (JV)
             by Korean SMEs) enter into the contract, zero percent (0%) interest rate shall apply.
        (ii) In case one or more Korean Medium-Large Companies (including a consortium or
             joint venture (JV) by Korean Medium-Large Companies) enter into the contract, fifty
             percent (50%) of the current interest rate shall apply.
        (iii) In case the consortium or joint venture (JV) in which Korean SMEs and/or
             Medium-Large Companies occupy fifty percent (50%) or above of the share while one
             or more SMEs take at least twenty percent (20%) of the share enter into a contract,
             fifty percent (50%) of the current interest rate shall apply.
        No interest shall accrue on the Loan covering the consulting services provided by Korean
        Consultant(s).
    (c) The disbursement period shall be sixty (60) months from the effective date of the Loan
        Agreement or such other period as the Borrower and the Bank agree upon;
    (d) A service charge of one-tenth of one percent (0.1%) of the amount of each disbursement
        shall be collected by the Bank;
    (e) All banking charges and/or costs for services rendered by banks in connection with
        disbursements of the proceeds of the Loan, repayment of principal or payment of interest
        payable to the Bank under the Loan Agreement shall be subject to a banking
        arrangement to be concluded between the concerned banks designated by the Borrower
        and the Bank ; and
    (f) In the event the Borrower fails to make payment of all or any portion of the principal of
        the Loan or any other amount when due under the Loan Agreement, the unpaid amount
        shall bear an overdue charge at the rate of two percent (2.0%) per annum in addition to
        the interest rate specified in the Loan Agreement.
                                               Article 3
1. The eligible source countries for the procurement of goods and services, including consulting
services, to be financed out of the Loan shall be the Republic of Korea for the foreign currency
portion and the Republic of the Philippines for the local currency portion. Procurement from
countries other than the eligible source countries, if any, shall be set out in the Loan Agreement.
2. The supplier(s) of the goods and services necessary for the implementation of the Project
shall be selected through competitive bidding among Korean firms.
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