제19261호                                     관                  보                   2018. 5. 23.(수요일)
     (c) in case the Korean Government decides to extend a EDCF Loan for the requested project
        after its appraisal of the project, it shall inform the Philippine Government of its decision
        in writing through diplomatic channels; and
     (d) details of each identified individual project and the Loan amount for the project shall be
        set out in and made available through a loan agreement (hereinafter referred to as a
        “Loan    Agreement”)       to   be    concluded        between   the    Export-Import     Bank    of    Korea
        (hereinafter referred to as the “Bank”) and the Philippine Government or appropriate
        Philippine Government entity.
                                                   Article 3
1.   The terms and conditions for each individual project shall be specified in each Loan
Agreement to the extent consistent with the Agreement and the provisions of this Arrangement.
Each Loan Agreement shall contain, inter alia, the following principles, unless otherwise agreed
by the two Governments:
     (a) the borrower of the Loan shall be the Philippine Government or appropriate Philippine
        Government entity (hereinafter referred to as the “Borrower”), the guarantor of the Loan,
        if   applicable,   shall   be   the   Philippine       Government      (hereinafter   referred   to    as   the
        “Guarantor”);
     (b) the repayment terms and the interest rate shall be specified in the Loan Agreement for
        the individual project;
     (c) no interest shall accrue for the portion of the Loan covering the consulting services costs,
        in case that the consultant is selected from among Korean firms;
     (d) in the event that the Borrower fails to make payment of all or any portion of the
        principal of the Loan or any other amount due under the Loan Agreements, 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;
     (e) 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 Agreements;
     (f) the suppliers of the goods and services necessary for the implementation of the project
        shall be selected through competitive bidding among Korean firms;
     (g) the consultants shall be employed through limited competitive bidding among Korean
        consulting firms;
     (h) the procurement or consulting contracts shall be concluded within eighteen (18) months
        from the effective date of the Loan Agreement or as set out in the Loan Agreement;
     (i) details of the methods and procedures for the procurement shall be governed by the Loan
        Agreement; and
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