제15911호                           관                 보                2005. 2. 1. (화요일)

                   Article2                        (6) If the procurement of goods or services to
The terms and conditions of the Loan, as well          be financed out of the proceeds of the Loan
as the procedures for its utilization, shall be        has not been carried out within eighteen(18)
governed by the Loan Agreement which shall             months after the effective date of the Loan
contain, inter alia, the following principles:         Agreement, the Pledge for the Project
(1) The repayment period shall be thirty(30)           issued by the Government of the Republic of
  years including a grace period of ten(10)            Korea shall be invalid.
  years;                                                                Article 3
(2)   The   interest   rate    shall   be   two    1. The eligible source countries for the
  percent(2.0%) per annum;                             procurement of goods and services required
(3) The disbursement period shall be twenty            for the Project shall be the Republic of
  four(24) months from the effective date of           Korea and the Independent State of Papua
  the Loan Agreement or such other period as           New Guinea. Procurement from any third
  the Borrower and the Bank agree upon;                country shall not be allowed.
(4) A service charge of one-tenth of one           2. The suppliers of the goods and services
  percent(0.1%) of the amount of each                  necessary for the implementation of the
  disbursement in case of a direct payment             Project shall be selected as follows;
  procedure, or of the amount specified in the         (a) Goods:Limited international bidding
  letter of commitment in case of a                      among Korean entities
  commitment procedure shall be collected by           (b)    Services: Limited        international
  the Bank. All banking charges and/or costs             shopping among Korean consultants
  for services rendered by commercial banks        3. Details of the methods and procedures for
  in connection with disbursements of the              procurement shall be stipulated in the Loan
  proceeds of the Loan, repayment of                   Agreement.
  principal or payment of interest payable to                           Article 4
  the Bank under the Loan Agreement shall be       In the event the funds available from the
  governed by banking arrangements to be           proceeds of the Loan are insufficient for the
  concluded     between       the   concerned      full implementation of the Project, the
  commercial banks of the two countries;           Borrower shall promptly make arrangements
(5) In the event the Borrower fails to make        to provide such funds as are needed.
  payment of all or any portion of the                                  Article 5
  principal of the Loan or any other amount        The proceeds of the Loan shall be disbursed
  when due under the Loan Agreement, the           by the Bank to or on behalf of the Borrower in
  unpaid amount shall bear an overdue charge       accordance with the progress of the Project,
  at the rate of two percent(2%) per annum         up to the amount of the Loan, and within the
  above the interest rate specified in the Loan    disbursement period specified in the Loan
  Agreement; and                                   Agreement and in accordance with the

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