제15995호                            관                보                2005. 5.17. (화요일)

   by the Bank. All banking charges and/or            concluded within eighteen (18) months after
   costs for services rendered by commercial          the effective date of the Loan Agreement.
   banks in connection with disbursements of      4. The detailed methods and procedures for
   the proceeds of the Loan, repayment of             procurement shall be governed by the Loan
   principal or payment of interest payable to        Agreement.

   the Bank under the Loan Agreement shall                            Article 4

   be subject to a banking arrangement to be          In the event the funds available from the

   concluded between the banks designated         proceeds of the Loan are insufficient for the

   by the Borrower and the Bank; and              full implementation of the Project, the

 (e)In the event the Borrower fails to make       Borrower shall promptly make arrangements

   payment of all or any portion of the           to provide such funds as shall be needed.

   principal of the Loan or any other amount                          Article 5

   when due under the Loan Agreement, the             The proceeds of the Loan shall be disbursed

   unpaid amount shall bear an overdue            by the Bank to the Borrower, or to the supplier

   charge at the rate of two point zero           on behalf of the Borrower, in accordance with

   percent (2.0%) per annum above the             the progress of the Project, up to the amount

   interest rate specified in the Loan            of the Loan, and within the disbursement

   Agreement.                                     period specified in the Loan Agreement and in

                  Article 3                       accordance with the disbursement procedure

1. The eligible source countries for the          under the Loan Agreement.

 procurement of goods and services to be                              Article 6

 financed out of the Loan shall be the                Other terms and conditions to be specified

 Republic of Korea for the foreign currency       in the Loan Agreement shall be determined

 portion and the Democratic Socialist             through negotiations between the Borrower

 Republic of Sri Lanka for the local currency     and the Bank.

 portion. Procurement for the Project from                            Article 7

 third countries may be allowed with the prior        This Arrangement shall enter into force on

 consent of the Bank within Seven Hundred         the date of signature and shall remain

 Thousand US Dollars (US$700,000) of the          effective, unless otherwise agreed upon, until

 total amount of the Loan if it is impossible     the Borrower performs all the obligations

 or uneconomical to purchase any goods and        under the Loan Agreement.

 services from the eligible source countries.     Done in duplicate at Colombo, on this 11th

2. The suppliers of all goods and services to     day of May 2005, in the English language.

 be financed out of the Loan shall be             FOR THE GOVERNMENT OF

 selected through limited competitive bidding     THE REPUBLIC OF KOREA

 among    Korean companies or          direct                      FOR THE GOVERNMENT OF
 contracting with a Korean supplier.                               THE DEMOCRATIC SOCIALIST
3. The procurement contract shall be                               REPUBLIC OF SRI LANKA

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