제19587호                               관              보                2019. 9. 17.(화요일)
     (c) In case the Korean Government decides to extend a Loan for a requested project after
        appraisal of the project, it shall inform the Lao Government of its decision through
        diplomatic channels; and
     (d) Details of each 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 the "Loan
        Agreement") to be concluded between the Export-Import Bank of Korea (hereinafter
        referred to as the "Bank") and the Lao Government.
                                              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 or guarantor of the Loan shall be the Lao Government;
     (b) The repayment terms and the interest rate shall be specified in the Loan Agreement of
        the individual project;
     (c) No interest shall accrue for the portion of the Loan covering the consulting services costs,
        in case the consultant is selected from among Korean firms;
     (d) In the event that the Lao Government 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 Agreements;
     (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 Lao People's Democratic Republic 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 each Loan Agreement;
     (i) Details of the methods and procedures for the procurement shall be governed by the Loan
        Agreements; and
     (j) All value-added tax (VAT), excise tax and import tax imposed in the Lao People's
        Democratic Republic on goods and services, including consulting services, provided by the
        suppliers and consultants for the implementation of the project under the Loan Agreement
        shall either be exempted or borne by the Lao Government. However, profit tax and
        income tax cannot be exempted.
2.   The revision of any principle stated in paragraph 1 of Article 3 may be made with the
mutual consent of the two Governments, and shall be set out in the Loan Agreements.

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