Page  1
CONFORMED COPY
LOAN NUMBER 4555 IN
Loan Agreement
(Telecommunications Sector Reform Technical Assistance 
Project)
between
INDIA
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
Dated August 11, 2000
LOAN NUMBER 4555 IN
LOAN AGREEMENT
AGREEMENT, dated August 11, 2000, between INDIA, 
acting by its President (the Borrower) and 
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 
(the Bank).
WHEREAS the Borrower, having satisfied itself as 
to the feasibility and priority of the Project 
described in Schedule 2 to this Agreement, has 
requested the Bank to assist in the financing of the 
Project; and
WHEREAS the Bank has agreed, on the basis, inter 
alia, of the foregoing, to extend the Loan to the 
Borrower upon the terms and conditions set forth in 
this Agreement.
Page  2
NOW THEREFORE the parties hereto hereby agree as 
follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. The “General Conditions Applicable 
to Loan and Guarantee Agreements for Single Currency 
Loans” of the Bank, dated May 30, 1995, (as amended 
through October 6, 1999), (the General Conditions) 
constitute an integral part of this Agreement.
Section 1.02. Unless the context otherwise 
requires, the several terms defined in the General 
Conditions and in the Preamble to this Agreement have 
the respective meanings therein set forth and the 
following additional terms have the following 
meanings:
(a)
“Act” means the Telecom Regulatory 
Authority of India Act, 1997, as amended on March 25, 
2000; 
(b)
“DOT” means the Department of 
Telecommunications of the Borrower;  
(c)
“Eligible Categories” means categories 
(1), (2) and (3), set forth in the table in Part A.1 
of Schedule 1 to this Agreement;
(d)
“Eligible Expenditures” means the 
expenditures for goods and services referred to in 
Section 2.02 of this Agreement;
(e)
“Fiscal Year” and “FY” mean the Fiscal 
Year of the Borrower, beginning on April 1 of a 
calendar year and ending on March 31 of the following 
calendar year;
(f)
“PCU” means the Project Coordination Unit 
established by DOT for purposes of coordinating the 
implementation of the Project;
(g)
“PIP” means the Project Implementation 
Plan of the Borrower dated May 8, 2000;
(h)
“PIU” means each Project Implementation 
Unit established within TEC and WPC to assist in 
implementing their respective activities under Part A 
of the Project;
(i)
“PMU” means each Project Management Unit 
established within TRAI and TDSAT to assist in 
implementing Part B of the Project;
(j)
“Project Implementation Entity” means, 
for purposes of this Agreement and the General 
Conditions, DOT, TDSAT and TRAI;
(k)
“Project Management Report” means each 
report prepared in accordance with Section 4.02 of 
this Agreement;
(l)
“Special Account” means the account 
referred to in Part B of Schedule 1 to this Agreement;
Page  3
(m)
“TDSAT” means the Telecom Disputes 
Settlement and Appellate Tribunal established under 
the Act;
(n)  “TEC” means the Telecommunications 
Engineering Center within DOT;
(o) “TRAI” means the Telecommunications 
Regulatory Authority of India established under the 
Act; and
(p)  “WPC” means the Wireless Planning 
Coordination Wing within DOT.
ARTICLE II
The Loan
Section 2.01. The Bank agrees to lend to the 
Borrower, on the terms and conditions set forth or 
referred to in the Loan Agreement, an amount equal to 
sixty-two million dollars ($62,000,000).
Section 2.02. The amount of the Loan may be 
withdrawn from the Loan Account in accordance with the 
provisions of Schedule 1 to this Agreement for 
expenditures made (or, if the Bank shall so agree, to 
be made) in respect of the reasonable cost of goods 
and services required for the Project described in 
Schedule 2 to this Agreement and to be financed out of 
the proceeds of the Loan.
Section 2.03. The Closing Date shall be December 
31, 2004 or such later date as the Bank shall 
establish.  The Bank shall promptly notify the 
Borrower of such later date.
Section 2.04. The Borrower shall pay to the Bank 
a fee in an amount equal to one percent (1%) of the 
amount of the Loan. On or promptly after the Effective 
Date, the Bank shall, on behalf of the Borrower, 
withdraw from the Loan Account and pay to itself the 
amount of said fee.
Section 2.05. The Borrower shall pay to the Bank 
a commitment charge at the rate of three-fourths of 
one percent (3/4 of 1%) per annum on the principal 
amount of the Loan not withdrawn from time to time.
Section 2.06. (a) The Borrower shall pay interest on 
the principal amount of the Loan withdrawn and 
outstanding from time to time, at a rate for each 
Interest Period equal to LIBOR Base Rate plus LIBOR 
Total Spread.
(b)
For the purposes of this Section:
(i)
“Interest Period” means the 
initial period from and including the date of this 
Agreement to, but excluding, the first 
Interest Payment Date occurring 
thereafter, and after the initial period, each period 
from and including an 
Interest 
Payment Date to, but excluding the next following 
Interest Payment 
Date.
Page  4
(ii)
“Interest Payment Date” means any 
date specified in Section 2.07 of this 
Agreement.
(iii)
“LIBOR Base Rate” means, for each 
Interest Period, the London interbank 
offered rate for six-month deposits in dollars 
for value on the first day of 
such 
Interest Period (or, in the case of the initial 
Interest Period, for 
value 
the Interest Payment Date occurring on or next 
preceding the first day 
of such 
Interest Period), as reasonably determined by the Bank 
and expressed 
as a percentage per 
annum.
(iv)
“LIBOR Total Spread” means, for 
each Interest Period: (A) three-fourths of one 
percent (3/4 of 1%);  (B) minus (or plus) 
the weighted average margin, for 
such Interest Period, below (or above) the London 
interbank offered rates, or 
other 
reference rates, for six-month deposits, in respect of 
the Bank’s 
outstanding 
borrowings or portions thereof allocated by the Bank 
to fund 
single currency loans 
or portions thereof made by it that include the Loan 
as 
reasonably determined by the Bank 
and expressed as a percentage per annum.
(c)
The Bank shall notify the Borrower of 
LIBOR Base Rate and LIBOR Total Spread for each 
Interest Period, promptly upon the determination 
thereof.
(d)
Whenever, in light of changes in market 
practice affecting the determination of the interest 
rates referred to in this Section 2.06, the Bank 
determines that it is in the interest of its borrowers 
as a whole and of the Bank to apply a basis for 
determining the interest rates applicable to the Loan 
other than as provided in said Section, the Bank may 
modify the basis for determining the interest rates 
applicable to the Loan upon not less than six (6) 
months’ notice to the Borrower of the new basis. The 
basis shall become effective on the expiry of the 
notice period unless the Borrower notifies the Bank 
during said period of its objection thereto, in which 
case said modification shall not apply to the Loan.
Section 2.07. Interest and other charges shall 
be payable semiannually on February 15 and August 15 
in each year.
Section 2.08. The Borrower shall repay the 
principal amount of the Loan in accordance with the 
amortization schedule set forth in Schedule 3 to this 
Agreement.
ARTICLE III
Execution of the Project
Section 3.01. (a) The Borrower declares its 
commitment to the objectives of the Project as set 
forth in Schedule 2 to this Agreement, and, to this 
Page  5
end, without any limitation or restriction upon any of 
its other obligations under this Agreement, shall 
carry out the Project or cause the Project to be 
carried out through DOT, TRAI and TDSAT, all with due 
diligence and efficiency and in conformity with 
appropriate administrative, financial, 
telecommunications practices, and shall provide or 
cause to be provided, promptly as needed, funds, 
facilities, services and other resources required for 
the Project.
(b)
Without limitation upon the provisions of 
paragraph (a) of this Section and except as the 
Borrower and the Bank shall otherwise agree, the 
Borrower shall carry out the Project, or cause the 
Project to be carried out, in accordance with the 
Implementation Program set forth in Schedule 5 to this 
Agreement.
(c)
The Borrower shall release to DOT in 
respect of the activities carried out by DOT, TRAI and 
TDSAT under the Project, funds equivalent to the 
amounts withdrawn by the Borrower from the Loan 
Account including those deposited in the Special 
Account, promptly after such withdrawal in accordance 
with the Borrower’s standard arrangements for 
development assistance to central ministries.
Section 3.02. Except as the Bank shall otherwise 
agree, procurement of goods and services required for 
the Project and to be financed out of the proceeds of 
the Loan shall be governed by the provisions of 
Schedule 4 to this Agreement.
Section 3.03. For the purposes of Section 9.07 
of the General Conditions and without limitation 
thereto, the Borrower shall:
(a)
prepare, on the basis of guidelines 
acceptable to the Bank, and furnish to the Bank no 
later than six (6) months after the Closing Date or 
such later date as may be agreed for this purpose 
between the Bank and the Borrower, a plan for the 
future operation of the Project; and
(b)
afford the Bank a reasonable opportunity 
to exchange views with the Borrower on the said plan.
ARTICLE IV
Financial Covenants
Section 4.01. (a) The Borrower shall maintain or 
cause to be maintained a financial management system, 
including records and accounts, and prepare financial 
statements in a format acceptable to the Bank, 
adequate to reflect in accordance with sound financial 
management and accounting practices the operations, 
resources and expenditures in respect of the Project 
of the departments or agencies of the Borrower 
responsible for carrying out the Project or any part 
thereof.
(b)
The Borrower shall:
(i)
have the records and accounts 
referred to in paragraph (a) of this Section 
Page  6
including those for the Special Account 
for each fiscal year audited, in 
accordance with appropriate auditing principles 
consistently applied, by 
independent auditors acceptable to the Bank;
(ii)
furnish to the Bank, as soon as 
available, but in any case not later than six 
months after the end of each such year, the 
report of such audit by said 
auditors, of such scope and in such detail as the Bank 
shall have reasonably 
requested; and
(iii)
furnish to the Bank such other 
information concerning said records and 
accounts and the audit thereof as the 
Bank shall from time to time reasonably 
request.
(c)
For all expenditures with respect to 
which withdrawals from the Loan Account were made on 
the basis of Project Management Reports or statements 
of expenditures, the Borrower shall:
(i)
maintain or cause to be 
maintained, in accordance with paragraph (a) of this 
Section, records and accounts reflecting 
such expenditures;
(ii)
retain, until at least one year 
after the Bank has received the audit report 
for the fiscal year in which the last withdrawal 
from the Loan Account was 
made, 
all records (contracts, orders, invoices, bills, 
receipts and other 
documents) 
evidencing such expenditures;
(iii)
enable the Bank’s representatives 
to examine such records; and
(iv)
ensure that such records and 
accounts are included in the annual audit 
referred to in paragraph (b) of this 
Section and that the report of such audit 
contains a separate opinion by said auditors as 
to whether the statements of 
expenditure submitted during such fiscal year, 
together with the procedures 
and 
internal controls involved in their preparation, can 
be relied upon to 
support the 
related withdrawals.
Section 4.02. The Borrower shall prepare, in 
accordance with guidelines acceptable to the Bank, and 
furnish to the Bank not later than 45 days after the 
end of each calendar quarter, a Project Management 
Report for such period, which:
(a)
(i)
sets forth actual sources and 
applications of funds for the Project, both 
cumulatively and for the period covered 
by said report, and projected sources 
and applications of funds for the Project for the 
six-month period following 
the 
period covered by said report; and
 (ii)
shows separately expenditures 
Page  7
financed out of the proceeds of the Loan during 
the period covered by said report and 
expenditures proposed to be financed out 
of the proceeds of the Loan during the six-month 
period following the period 
covered 
by said report;
(b)
(i)
describes physical progress in 
Project implementation both cumulatively and 
for the period covered by said report; and 
(ii) 
explains variances between the 
actual and previously forecast implementation 
targets; and
(c)
sets forth the status of procurement 
under the Project and expenditures under contracts 
financed out of the proceeds of the Loan, as at the 
end of the period covered by said report.
ARTICLE V
Remedies of the Bank
Section 5.01. Pursuant to Section 6.02 (p) of 
the General Conditions, the following additional event 
is specified, namely that the regulatory framework 
governing the telecommunications sector shall have 
changed in any way so as to materially and adversely 
affect the ability of the Borrower or any Project 
implementation entity to implement the Project or to 
achieve its objectives.
Section 5.02. Pursuant to Section 7.01 (k) of 
the General Conditions, the events specified in 
Section 5.01 of this Agreement shall occur
ARTICLE VI
Termination
Section 6.01. The date ninety (90) days after 
the date of this Agreement is hereby specified for the 
purposes of Section 12.04 of the General Conditions.
ARTICLE VII
Representatives of the Borrower; Addresses
Section 7.01. Any Secretary, Additional 
Secretary, Joint Secretary, Director, Deputy Secretary 
or Under Secretary of the Department of Economic 
Affairs in the Ministry of Finance of the Borrower is 
designated as representative of the Borrower for the 
purpose of Section 11.03 of the General Conditions.
Section 7.02. The following addresses are 
specified for the purposes of Section 11.01 of the 
General Conditions:
For the Borrower:
Secretary to the Government of India
Department of Economic Affairs
Ministry of Finance, North Block
New Delhi 110001, India
Page  8
Cable address: 
Telex:
ECOFAIRS
953-31-66175 
FINE IN
New Delhi
953-31-61430 
FINE IN
For the Bank:
International Bank for Reconstruction and 
Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address: 
Telex:
INTBAFRAD
248423 (MCI) 
or
Washington, D.C.
 64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting 
through their duly authorized representatives, have 
caused this Agreement to be signed in their respective 
names in Washington, D.C., as of the day and year 
first above written.
INDIA
By /s/ R. S. Sharma
Authorized Representative
INTERNATIONAL BANK FOR 
RECONSTRUCTION 
AND DEVELOPMENT
By /s/ Edwin R. Lim
Authorized Representative
SCHEDULE 1
Withdrawal of the Proceeds of the Loan 
Part A:
General
1.
The table below sets forth the Categories of 
items to be financed out of the proceeds of the Loan, 
the allocation of the amounts of the Loan to each 
Category and the percentage of expenditures for items 
so to be financed in each Category:
Amount of the
Loan Allocated
% of
(Expressed in
Expenditures
Category
Dollar Equivalent)
to be Financed
(1)
Goods
   50,000,000
Page  9
100% of foreign expen-
ditures; 100% of local
expenditures (ex-
factory cost) and 80%
of local expenditures
for other items procured
locally
(2)
Consultants’ services
    4,500,000
100% 
(3)
Training and Study Tours
    2,500,000
100%
(4)
Fee
      620,000
Amount due under
Section 2.04 of this
Agreement
(5)
Unallocated
    4,380,000
TOTAL
   62,000,000
2.
For the purposes of this Schedule:
(a)
the term “foreign expenditures” means 
expenditures in the currency of any country other than 
that of the Borrower for goods or services supplied 
from the territory of any country other than that of 
the Borrower; and
(b)
the term “local expenditures” means 
expenditures in the currency of the Borrower or for 
goods or services supplied from the territory of the 
Borrower.
3.
Notwithstanding the provisions of paragraph 1 
above, no withdrawals shall be made:
(a)
in respect of payments made for 
expenditures prior to the date of this Agreement, 
except that withdrawals, in an aggregate amount not to 
exceed the equivalent of $4,000,000 may be made on 
account of payments made for expenditures before that 
date but after August 15, 1999; and
(b)
for Part B.2 of the Project unless: (i) 
the plan of action referred to in paragraph 6(a) of 
Schedule 5 to this Agreement shall have been submitted 
to the Bank; and (ii) TDSAT shall have established a 
financial management system satisfactory to the Bank.
4.
The Bank may require withdrawals from the Loan 
Account to be made on the basis of statements of 
expenditure for expenditures for: (i) goods under 
contracts costing the equivalent of $200,000 or less; 
(ii) consultant services under contracts costing less 
than $100,000 equivalent for employment of consulting 
Page  10
firms; (iii) consultant services under contracts 
costing less than $50,000 for employment of individual 
consultants; and (iv) training and study tours, all 
under such terms and conditions as the Bank shall 
specify by notice to the Borrower.
Part B:
Special Account
1.
The Borrower shall open and maintain in dollars 
a special deposit account in the Reserve Bank of India 
on terms and conditions satisfactory to the Bank.
2.
After the Bank has received evidence 
satisfactory to it that the Special Account has been 
opened, withdrawals from the Loan Account of amounts 
to be deposited into the Special Account shall be made 
as follows:
(a)
until the Bank shall have received: (i) 
the first Project Management Report referred to in 
Section 4.02 of this Agreement; and (ii) a request 
from the Borrower for withdrawal on the basis of 
Project Management Reports, withdrawals shall be made 
in accordance with the provisions of Annex A to this 
Schedule 1; and
(b)
upon receipt by the Bank of a Project 
Management Report pursuant to Section 4.02 of this 
Agreement accompanied by a request from the Borrower 
for withdrawal on the basis of Project Management 
Reports, all further withdrawals shall be made in 
accordance with the provisions of Annex B to this 
Schedule 1.
3.
Payments out of the Special Account shall be 
made exclusively for Eligible Expenditures.  For each 
payment made by the Borrower out of the Special 
Account, the Borrower shall, at such time as the Bank 
shall reasonably request, furnish to the Bank such 
documents and other evidence showing that such payment 
was made exclusively for Eligible Expenditures.
4.
Notwithstanding the provisions of Part B.2 of 
this Schedule, the Bank shall not be required to make 
further deposits into the Special Account:
(a)
if the Bank determines at any time that 
any Project Management Report does not adequately 
provide the information required pursuant to Section 
4.02 of this Agreement;
(b)
if the Bank determines at any time that 
all further withdrawals should be made by the Borrower 
directly from the Loan Account; or
(c)
if the Borrower shall have failed to 
furnish to the Bank within the period of time 
specified in Section 4.01 (b) (ii) of this Agreement, 
any of the audit reports required to be furnished to 
the Bank pursuant to said Section in respect of the 
audit of: (A) the records and accounts for the Special 
Account; or (B) the records and accounts reflecting 
expenditures with respect to which withdrawals were 
made on the basis of Project Management Reports or 
statements of expenditures.
5.
The Bank shall not be required to make further 
Page  11
deposits into the Special Account in accordance with 
the provisions of Part B.2 of this Schedule if, at any 
time, the Bank shall have notified the Borrower of its 
intention to suspend in whole or in part the right of 
the Borrower to make withdrawals from the Loan Account 
pursuant to Section 6.02 of the General Conditions.  
Upon such notification, the Bank shall determine, in 
its sole discretion, whether further deposits into the 
Special Account may be made and what procedures should 
be followed for making such deposits, and shall notify 
the Borrower of its determination.
6.
(a)
If the Bank determines at any time that 
any payment out of the Special Account was made for an 
expenditure which is not an Eligible Expenditure, or 
was not justified by the evidence furnished to the 
Bank, the Borrower shall, promptly upon notice from 
the Bank, provide such additional evidence as the Bank 
may request, or deposit into the Special Account (or, 
if the Bank shall so request, refund to the Bank) an 
amount equal to the amount of such payment.  Unless 
the Bank shall otherwise agree, no further deposit by 
the Bank into the Special Account shall be made until 
the Borrower has provided such evidence or made such 
deposit or refund, as the case may be.
(b)
If the Bank determines at any time that 
any amount outstanding in the Special Account will not 
be required to cover payments for Eligible 
Expenditures during the six-month period following 
such determination, the Borrower shall, promptly upon 
notice from the Bank, refund to the Bank such 
outstanding amount.
(c)
The Borrower may, upon notice to the 
Bank, refund to the Bank all or any portion of the 
funds on deposit in the Special Account.
(d)
Refunds to the Bank made pursuant to 
subparagraph (a), (b) or (c) of this paragraph 6 shall 
be credited to the Loan Account for subsequent 
withdrawal or for cancellation in accordance with the 
provisions of the Loan Agreement.
Annex A to SCHEDULE 1
Operation of Special Account When Withdrawals Are Not 
Made On the Basis of Project Management Reports
1.
For the purposes of this Annex the term 
“Authorized Allocation” means an amount of $3,000,000 
to be withdrawn from the Loan Account and deposited 
into the Special Account pursuant to paragraph 2 of 
this Annex. 
2.
Withdrawals of the Authorized Allocation and 
subsequent withdrawals to replenish the Special 
Account shall be made as follows:
(a)
For withdrawals of the Authorized 
Allocation, the Borrower shall furnish to the Bank a 
request or requests for deposit into the Special 
Account of an amount or amounts which in the aggregate 
do not exceed the Authorized Allocation.  On the basis 
of each such request, the Bank shall, on behalf of the 
Borrower, withdraw from the Loan Account and deposit 
into the Special Account such amount as the Borrower 
Page  12
shall have requested.
(b)
For replenishment of the Special Account, 
the Borrower shall furnish to the Bank requests for 
deposit into the Special Account at such intervals as 
the Bank shall specify. Prior to or at the time of 
each such request, the Borrower shall furnish to the 
Bank the documents and other evidence required 
pursuant to Part B.3 of Schedule 1 to this Agreement 
for the payment or payments in respect of which 
replenishment is requested.  On the basis of each such 
request, the Bank shall, on behalf of the Borrower, 
withdraw from the Loan Account and deposit into the 
Special Account such amount as the Borrower shall have 
requested and as shall have been shown by said 
documents and other evidence to have been paid out of 
the Special Account for Eligible Expenditures. Each 
such deposit into the Special Account shall be 
withdrawn by the Bank from the Loan Account under one 
or more of the Eligible Categories.
3.
The Bank shall not be required to make further 
deposits into the Special Account, once the total 
unwithdrawn amount of the Loan minus the total amount 
of all outstanding special commitments entered into by 
the Bank pursuant to Section 5.02 of the General 
Conditions shall equal the equivalent of twice the 
amount of the Authorized Allocation. Thereafter, 
withdrawal from the Loan Account of the remaining 
unwithdrawn amount of the Loan shall follow such 
procedures as the Bank shall specify by notice to the 
Borrower.  Such further withdrawals shall be made only 
after and to the extent that the Bank shall have been 
satisfied that all such amounts remaining on deposit 
in the Special Account as of the date of such notice 
will be utilized in making payments for Eligible 
Expenditures.
Annex B to SCHEDULE 1
Operation of Special Account When Withdrawals Are 
Made On the Basis of Project Management Reports
1.
Except as the Bank may otherwise specify by 
notice to the Borrower, all withdrawals from the Loan 
Account shall be deposited by the Bank into the 
Special Account in accordance with the provisions of 
Schedule 1 to this Agreement.  Each such deposit into 
the Special Account shall be withdrawn by the Bank 
from the Loan Account under one or more of the 
Eligible Categories.
2.
Each application for withdrawal from the Loan 
Account for deposit into the Special Account shall be 
supported by a Project Management Report.
3.
Upon receipt of each applications for withdrawal 
of an amount of the Loan, the Bank shall, on behalf of 
the Borrower, withdraw from the Loan Account and 
deposit into the Special Account an amount equal to 
the lesser of: 
(a)
the amount so requested; and 
(b) 
the amount which the Bank has determined, 
based on the Project Management Report accompanying 
said applications, is required to be deposited in 
Page  13
order to finance Eligible Expenditures during the 
six-month period following the date of such report; 
provided, however, that the amount so deposited, when 
added to the amount indicated by said Project 
Management Report to be remaining in the Special 
Account, shall not exceed the equivalent of 
$6,000,000.
SCHEDULE 2
Description of the Project
The objective of the Project is to strengthen 
elements of the policy and regulatory environment of 
the telecommunications sector in India for the purpose 
of promoting private investment, competition, rural 
connectivity and customer satisfaction.
The Project consists of the following parts, 
subject to such modifications thereof as the Borrower 
and the Bank may agree upon from time to time to 
achieve such objective:
Part A:
Support to DOT
1.
Strengthening DOT’s government functions through 
the provision of equipment, consultants’ services and 
training.
2.
Acquisition, installation and implementation of 
a national frequency spectrum monitoring and 
management network, including all required 
computerized tools and procedures for automating 
spectrum frequency assignments, for issuing license, 
and for preventing harmful interference among users of 
the frequency spectrum and the enforcement of 
regulations which permit the harmonious use of the 
spectrum by all its users.
3.
Carrying out an assessment of the system of 
spectrum management and preparing an implementation 
plan for its modernization.
4.
Strengthening the institutional capabilities of 
WPC in the field of spectrum management and 
monitoring.
5.
Preparing and implementing programs to enhance 
WPC’s technical, managerial and commercial skill, 
including spectrum pricing, and educate industry 
participants regarding spectrum use and compliance 
requirements.
6.
Strengthening the institutional capabilities of 
TEC to set technical standards in the multi-operator 
telecommunications sector.
Part B:
Support to TRAI and TDSAT
1.
Strengthening the institutional capabilities of 
TRAI to perform its functions under the Act including:
(a)
provision of training to TRAI staff; and
(b)
carrying out consultative studies on 
regulatory issues, including, inter alia, in 
regulatory infrastructure, sector liberalization, 
Page  14
spectrum management, licensing and inter-connection 
issues, development network and services, convergence, 
network access, universal service obligations, quality 
of service and customer satisfaction, and fostering 
fair competition.
2. 
Formulating and implementing a program of 
technical assistance for strengthening the 
institutional capabilities of TDSAT in the areas of 
adjudication and dispute resolution.
*   *   *
The Project is expected to be completed by June 
30, 2004.
SCHEDULE 3
Amortization Schedule
 Payment 
of Principal
Date Payment Due
(
Expressed in Dollars)*
February 15, 2006
1,235,000
August 15, 2006
1,275,000
February 15, 2007
1,320,000
August 15, 2007
1,365,000
February 15, 2008
1,410,000
August 15, 2008
1,455,000
February 15, 2009
1,505,000
August 15, 2009
1,555,000
February 15, 2010
1,605,000
August 15, 2010
1,660,000
February 15, 2011
1,715,000
August 15, 2011
1,770,000
 February 15, 2012
1,830,000
August 15, 2012
1,890,000
February 15, 2013
1,955,000
August 15, 2013
2,020,000
February 15, 2014
2,085,000
August 15, 2014
2,155,000
February 15, 2015
2,225,000
August 15, 2015
2,300,000
February 15, 2016
2,380,000
August 15, 2016
Page  15
2,455,000
February 15, 2017
2,540,000
August 15, 2017
2,625,000
February 15, 2018
2,710,000
August 15, 2018
2,800,000
February 15, 2019
2,895,000
August 15, 2019
2,990,000
February 15, 2020
3,090,000
August 15, 2020
3,185,000
______________________
*
The figures in this column represent the amount 
in dollars to be repaid, except as provided 
in 
Section 4.04 (d) of the General Conditions.
SCHEDULE 4
Procurement and Consultants Services
Section I.
Procurement of Goods and Works
Part A:
General
Goods and works shall be procured in accordance 
with the provisions of Section I of the “Guidelines 
for Procurement under IBRD Loans and IDA Credits” 
published by the Bank in January 1995 and revised in 
January and August 1996, September 1997 and January 
1999 (the Guidelines) and the following provisions of 
Section I of this Schedule.
Part B:
International Competitive Bidding
1.
Except as otherwise provided in Part C of this 
Section, goods and works shall be procured under 
contracts awarded in accordance with the provisions of 
Section II of the Guidelines and paragraph 5 of 
Appendix 1 thereto.
2.
The following provisions shall apply to goods 
and works to be procured under contracts awarded in 
accordance with the provisions of paragraph 1 of this 
Part B.
(a)
Preference for Domestically Manufactured 
Goods and Domestic Contractors
The provisions of paragraphs 2.54 and 2.55 of 
the Guidelines and Appendix 2 thereto shall apply to 
goods manufactured in the territory of the Borrower 
and works to be carried out by domestic contractors.
(b)
Notification and Advertising
The invitation to prequalify or bid for each 
contract estimated to cost $10,000,000 equivalent or 
more shall be advertised in accordance with the 
procedures applicable to large contracts under 
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paragraph 2.8 of the Guidelines.
Part C:
Other Procurement Procedures
 
1.
National Competitive Bidding
Goods estimated to cost less than $200,000 
equivalent per contract, up to an aggregate amount not 
to exceed the equivalent of $1,000,000 may be procured 
under contracts awarded on the basis of competitive 
bidding advertised nationally in accordance with the 
provisions of paragraphs 3.3 and 3.4 of the Guidelines 
and procedures satisfactory to the Bank.
2.
Direct Contracting
Computer software, CD ROMS, audio and 
video-cassettes, and books, which must be purchased 
from the original supplier to be compatible with 
existing equipment or are of a proprietary nature and 
costing $600,000 equivalent or less in the aggregate, 
may, with the Bank’s prior agreement, be procured in 
accordance with the provisions of paragraph 3.7 of the 
Guidelines. 
Part D:
Review by the Bank of Procurement 
Decisions
1.
Procurement Planning
Prior to the issuance of any invitations to 
prequalify for bidding or to bid for contracts, the 
proposed procurement plan for the Project shall be 
furnished to the Bank for its review and approval, in 
accordance with the provisions of paragraph 1 of 
Appendix 1 to the Guidelines. Procurement of all goods 
and works shall be undertaken in accordance with such 
procurement plan as shall have been approved by the 
Bank, and with the provisions of said paragraph 1.
2.
Prior Review
With respect to all contracts for goods 
estimated to cost the equivalent of $200,000 or more, 
the procedures set forth in paragraphs 2 and 3 of 
Appendix 1 to the Guidelines shall apply.
3.
Post Review
With respect to each contract not governed by 
paragraph 2 of this Part, the procedures set forth in 
paragraph 4 of Appendix 1 to the Guidelines shall 
apply.
Section II.
Employment of Consultants
Part A:
General
Consultants’ services shall be procured in 
accordance with the provisions of the Introduction and 
Section IV of the “Guidelines: Selection and 
Employment of Consultants by World Bank Borrowers” 
published by the Bank in January 1997 and revised in 
September 1997 and January 1999 (the Consultant 
Guidelines) and the following provisions of Section II 
of this Schedule.
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Part B:
Quality- and Cost-based Selection
1.
Except as otherwise provided in Part C of this 
Section, consultants’ services shall be procured under 
contracts awarded in accordance with the provisions of 
Section II of the Consultant Guidelines, paragraph 3 
of Appendix 1 thereto, Appendix 2 thereto, and the 
provisions of paragraphs 3.13 through 3.18 thereof 
applicable to quality- and cost-based selection of 
consultants.
2.
The following provisions shall apply to 
consultants’ services to be procured under contracts 
awarded in accordance with the provisions of the 
preceding paragraph.  The short list of consultants 
for services of the Project, estimated to cost less 
than $200,000 equivalent per contract, may comprise 
entirely national consultants in accordance with the 
provisions of paragraph 2.7 of the Consultant 
Guidelines.
Part C:
Other Procedures for the Selection of 
Consultants
1.
Selection under a Fixed Budget
Services for radio spectrum management 
assessment under Part A.3 of the Project may be 
procured under contracts awarded in accordance with 
the provisions of paragraphs 3.5 of the Consultant 
Guidelines.
2.
Source Selection based on Consultants’ 
Qualifications
Services for training and domestic long distance 
assessment may be procured under contracts awarded in 
accordance with the provisions of paragraphs 3.1 and 
3.7 of the Consultant Guidelines.
Part D:
Review by the Bank of the Selection of 
Consultants
1.
Selection Planning
Prior to the issuance to consultants of any 
requests for proposals, the proposed plan for the 
selection of consultants under the Project shall be 
furnished to the Bank for its review and approval, in 
accordance with the provisions of paragraph 1 of 
Appendix 1 to the Consultant Guidelines.  Selection of 
all consultants’ services shall be undertaken in 
accordance with such selection plan as shall have been 
approved by the Bank, and with the provisions of said 
paragraph 1.
2.
Prior Review
With respect to each contract for the employment 
of consulting firms estimated to cost the equivalent 
of $100,000 or more, the procedures set forth in 
paragraphs 1, 2, 3 and 5 of Appendix 1 to the 
Consultant Guidelines shall apply.
With respect to each contract for the employment 
of individual consultants estimated to cost the 
equivalent of $50,000 or more, the qualifications, 
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experience, terms of reference and terms of employment 
of the consultants shall be furnished to the Bank for 
its prior review and approval. The contract shall be 
awarded only after the said approval shall have been 
given.
3.
Post Review
With respect to each contract not governed by 
paragraph 2 of this Part, the procedures set forth in 
paragraph 4 of Appendix 1 to the Consultant Guidelines 
shall apply.
SCHEDULE 5
Implementation Schedule
1.
The Borrower shall carry out or cause to be 
carried out the Project in accordance with the 
procedures and performance and monitoring indicators 
set out in the PIP and shall not amend such PIP or 
waive any provision thereof, which in the opinion of 
the Bank, shall materially or adversely affect the 
implementation of the Project.
2.
The Borrower shall cause DOT, WPC, TEC and TRAI 
to maintain during the implementation of the Project, 
the PCU, the PIUs and PMUs with sufficient powers, 
functions, staff and resources satisfactory to the 
Bank.
3.
For the purpose of carrying out Part A.2 of the 
Project, the Borrower shall cause WPC by June 30, 
2003, to implement a state-of-the art computerized 
licensing system and install modernized spectrum 
monitoring facilities for effective control and 
regulation.
4.
For the purpose of carrying out Part A.3 of the 
Project, the Borrower shall cause WPC by December 31, 
2000 to formulate a time bound action plan, 
satisfactory to the Bank, for strengthening radio 
spectrum management and monitoring, and to implement 
such plan in accordance with the provisions thereof.
5.
The Borrower shall make available to TRAI, 
through DOT, a portion of the proceeds of the Loan in 
order to enable TRAI to carry out the activities under 
Part B.1 of the Project in accordance with a time 
schedule and terms of reference satisfactory to the 
Bank. 
6.
The Borrower shall:
(a)
no later than June 30, 2001 submit to the 
Bank a time bound plan of action for implementing a 
program of technical assistance for TDSAT under Part 
B.2 of the Project, satisfactory to the Bank; and
(b)
make available to TDSAT, through DOT, a 
portion of the proceeds of the Loan in order to enable 
TDSAT to implement such plan of action in a manner 
satisfactory to the Bank.
7.
The Borrower shall:
(a)
maintain or cause to be maintained 
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policies and procedures adequate to enable it to 
monitor and evaluate on an ongoing basis, in 
accordance with indicators satisfactory to the Bank, 
the carrying out of the Project and the achievement of 
the objectives thereof;
(b)
prepare or cause to be prepared, under 
terms of reference satisfactory to the Bank, and 
furnish to the Bank, on or about March 31, 2002, a 
report integrating the results of the monitoring and 
evaluation activities performed pursuant to paragraph 
(a) of this Section, on the progress achieved in the 
carrying out of the Project during the period 
preceding the date of said report and setting out the 
measures recommended to ensure the efficient carrying 
out of the Project and the achievement of the 
objectives thereof during the period following such 
date; and
(c)
review or cause to be reviewed with the 
Bank by June 30, 2002, or such later date as the Bank 
shall request, the report referred to in paragraph (b) 
of this Section, and, thereafter, take all measures to 
ensure the efficient completion of the Project and the 
achievement of the objectives thereof, based on the 
conclusions and recommendations of the said report and 
the Bank’s views on the matter.