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CONFORMED COPY
AGREEMENT RELATED TO CREDIT NUMBER 2488 LA
NORWEGIAN GRANT AGREEMENT
(Education Development Project)
between
LAO PEOPLE’S DEMOCRATIC REPUBLIC
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
As Administrator of development aid funds provided by
The Royal Ministry of Foreign Affairs of the
Kingdom of Norway
Dated December 08, 1993
AGREEMENT RELATED TO CREDIT NUMBER 2488 LA
NORWEGIAN GRANT AGREEMENT
AGREEMENT, dated December 08, 1993, between LAO PEOPLE'S DEMOCRATIC REPUBLIC 
(the "Grantee") and INTERNATIONAL DEVELOPMENT ASSOCIATION (the "Association") acting 
as Administrator (the "Administrator") of the Norwegian Grant (as hereinafter defined) 
provided by the Royal Ministry of Foreign Affairs of the Kingdom of Norway ("Norway").
WHEREAS: (A) The Grantee has requested the assistance of the Association and 
Norway in the financing of its Education Development Project (the "Project") described 
in Schedule 2 to this Agreement;
WHEREAS: (B) Norway has agreed to make available a grant (the "Norwegian Grant") 
through the Administrator to the Grantee to assist in financing the printing of new 
primary and lower secondary education textbooks, and training and technical assistance 
for publishing and distribution of instructional materials, and development of a 
system for the provision of school supplies under Part A.1 of the Project, on the 
terms and conditions hereinafter set forth;
WHEREAS: (C) By an agreement between Norway and the Association (the 
"Administration Agreement"), Norway has requested the Association, and the Association 
has accepted, to administer the Norwegian Grant in accordance with the provisions, of 
the Administration Agreement;
WHEREAS: (D) The Grantee acknowledges that the financial assistance extended to 
the Grantee under this agreement (the "Norwegian Grant Agreement") shall be considered 
as part of the bilateral development aid extended by Norway to the Grantee; and
WHEREAS: (E) The Administrator has agreed on the basis, inter alia, of the 
foregoing to extend the Norwegian Grant to the Grantee in support of the Project, upon 
the terms and conditions set forth in this Agreement.
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NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. The General Conditions Applicable to Development Credit Agreements 
of the Association, dated January 1, 1985 (the "General Conditions") constitute an 
integral part of this Agreement subject, however, to the following modifications 
thereof:
(a)
The term "Association", whenever used in the General Conditions, means 
the International Development Association acting as Administrator of the Norwegian 
Grant pursuant to the Administration Agreement, except in the phrase "member of the 
Association" in Sections 2.01 (5), 4.02 (b) and 6.02 (e);
(b)
The term "Development Credit Agreement", whenever used in the General 
Conditions, means the Norwegian Grant Agreement;
(c)
The term "Credit", whenever used in the General Conditions, means the 
Norwegian Grant;
(d)
The term "Credit Account", whenever used in the General Conditions, means 
the trust account opened by the Administrator in its books in the name of the Grantee 
to which the amount of the Norwegian Grant is credited (the "Trust Account");
(e)
In Section 6.02 the term "Association" shall also include the Association 
acting in its own capacity;
(f)
Section 9.06 (c) shall be modified to read:
"(c) Not later than six months after the Closing Date, or such later 
date as may be agreed for this purpose between the Grantee and the 
Administrator, the Grantee shall prepare and furnish to the Administrator a 
report of such scope and in such detail as the Administrator shall reasonably 
request, on the execution of the Project referred to in the Preamble to the 
Norwegian Grant Agreement, the performance by the Grantee and the 
Administrator of their respective obligations under the Norwegian Grant 
Agreement and the accomplishment of the purposes of the Norwegian Grant."; and
(g)
Sections 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 
(a), and Article XII are deleted.
Section 1.02. Wherever used in this Agreement, unless the context otherwise 
requires, the several terms defined in the General Conditions, in the Administration 
Agreement, and in the Preamble to this Agreement have the respective meanings therein 
set forth and the following additional terms have the following meanings:
(a) 
"MOE" means the Borrower’s Ministry of Education
(b)
"Norwegian Special Account" means the account referred to in Section 2.02 
(c) of this Agreement; and
(c)
"Norwegian Kroner" or "NOK" means the currency of Norway.
ARTICLE II
The Grant
Section 2.01. The Administrator agrees to extend to the Grantee, on the terms 
and conditions herein set forth or referred to, a grant in an amount of twenty-one 
million Norwegian Kroner (NOK 21,000,000) as such amount shall have been made 
available by Norway to the Administrator pursuant to the Administration Agreement.
Section 2.02. (a) The amount of the Norwegian Grant may be withdrawn from the 
Trust Account in accordance with the provisions of Schedule 1 to this Agreement, as 
such Schedule may be amended from time to time by agreement between the Grantee and 
the Administrator for expenditures made (or if the Administrator shall so agree, to be 
made) in respect of the reasonable cost of the goods and services required for Part 
A.1 of the Project.
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(b)
Notwithstanding the provisions of paragraph (a) above, no withdrawals 
shall be made in respect of payments for taxes levied by, or in the territory of, the 
Grantee on goods and services or in the importation, manufacture, procurement or 
supply thereof.
(c)
The Grantee shall, for the purposes of the Project, open and maintain in 
dollars a special deposit account (the "Norwegian Special Account") in the Banque pour 
le Commerce Exterieur Lao (the "BCEL") on terms and conditions satisfactory to the 
Administrator, including appropriate protection against set off, seizure or 
attachment. Deposits into, and payments out of, the Norwegian Special Account shall be 
made in accordance with the provisions of Schedule 5 to this Agreement.
Section 2.03. The Closing Date shall be June 30, 2000, or such later date as the 
Administrator shall establish. The Administrator shall promptly notify the Grantee of 
such later date.
ARTICLE III
Execution of the Project
Section 3.01. (a) The Grantee declares its commitment to the objectives of the 
Project as set forth in Schedule 2 to this Agreement, and, to this end, shall carry 
out the Project through MOE with due diligence and efficiency and in conformity with 
appropriate administrative, educational, engineering and financial practices, and 
shall provide, promptly as needed, the 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 Grantee and the Association shall otherwise agree, the Grantee shall 
carry out the Project in accordance with the Implementation Program set forth in 
Schedule 4 to this Agreement.
Section 3.02. (a) Except as the Administrator shall otherwise agree, procurement 
of the goods and consultants' services required for carrying out Part A.1 of the 
Project and to be financed out of the proceeds of the Norwegian Grant shall be 
governed by the provisions of Schedule 3 to this Agreement.
(b)
If the Administrator shall have reasonably determined that the 
procurement of any item is inconsistent with the procedures set forth or referred to 
in Schedule 3 to this Agreement, no expenditures for such item shall be financed out 
of the proceeds of the Norwegian Grant, and the Administrator may, without in any way 
restricting or limiting any other right, power or remedy of the Administrator under 
this Agreement, by notice to the Grantee, cancel such amount of the Norwegian Grant 
as, in the Administrator's reasonable opinion, represents the amount of such 
expenditures which would otherwise have been eligible for financing out of the 
proceeds of the Norwegian Grant.
ARTICLE IV
Financial Covenants
Section 4.01. (a) The Grantee shall maintain or cause to be maintained separate 
records and accounts adequate to reflect in accordance with sound accounting practices 
the operations, resources and expenditures in respect of Part A.1 of the Project of 
the departments or agencies of the Grantee responsible for carrying out such part of 
the Project or any part thereof.
(b)
The Grantee shall:
(i)
have the records and accounts referred to in paragraph (a) of this 
Section including those for the Norwegian Special Account for each 
fiscal year audited, in accordance with appropriate auditing 
principles consistently applied, by independent auditors 
acceptable to the Administrator;
(ii)
furnish to the Administrator, as soon as available, but in any 
case not later than nine months after the end of each such year, a 
certified copy of the report of such audit by said auditors, of 
such scope and in such detail as the Administrator shall have 
reasonable requested; and
(iii)
furnish to the Administrator such other information concerning 
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said records, accounts and the audit thereof as the Administrator 
shall from time to time reasonably request.
(c)
For all expenditures with respect to which withdrawals from the Trust 
Account were made on the basis of statements of expenditure, the Grantee 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 (1) year after the Administrator has 
received the audit for the fiscal year in which the last 
withdrawal from the Trust Account was made, all records 
(contracts, orders, invoices, bills, receipts and other documents) 
evidencing such expenditures;
(iii)
enable the Administrators representatives to examine such records; 
and 
(iv)
ensure that said accounts and records 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.
ARTICLE V
Effectiveness; Transfer of Rights
and Obligations
Section 5.01. This Agreement shall become effective as of the date first above 
written or the date of the Administration Agree-ment, whichever is the later, and 
shall continue in effect until the Norwegian Grant has been fully disbursed and the 
parties to this Agreement have fulfilled their obligations under this Agreement.
Section 5.02. In accordance with the provisions of the Administration Agreement, 
the rights and obligations of the Administrator under this Agreement may be 
transferred to Norway. The Grantee accepts and agrees that, upon notice by the 
Administrator to the Grantee to that effect, Norway shall, ipso facto, from the date 
specified in such notice, be substituted in all rights and obligations of the 
Administrator under this Agreement as if Norway had been an original party to this 
Agreement, without any further action or formality required on the part of any party, 
and from such date the Administrator shall cease to have any rights or obligations as 
a party under this Agreement.
ARTICLE VI
Representative of the Grantee; Addresses
Section 6.01. The Minister of Finance of the Grantee is designated as 
representative of the Grantee for the purposes of Section 11.03 of the General 
Conditions.
Section 6.02. The following addresses are specified for the purposes of Section 
11.0. of the General Conditions:
For the Grantee:
Minister of Finance
Ministry of Finance
P.O. Box 46
Vientiane
Lao People's Democratic Republic
Cable address:
Telex:
MINFINANCE
4353 MEPF VTE LS
VIENTIANE
For the Administrator:
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International Development Association
1818 H Street, N.W
Washington, D.C. 20433
United States of America
Cable address:
Telex:
INDEVAS
199688 (TRT),
Washington, D.C.
248423 (RCA),
 64145 (WUI) or
197688 (TRT).
IN WITNESS WHEREOF, the parties hereto, acting through their representatives 
thereunto duly authorized, have caused this Agreement to be signed in their respective 
names in the District of Columbia, United States of America, as of the day and year 
first above written.
LAO PEOPLE'S DEMOCRATIC REPUBLIC
By /s/ Hiem Phommchanh
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
as Administrator of the Norwegian Grant
By /s/ Gautam S. Kaji
Regional Vice President
East Asia and Pacific
Schedule 1
Withdrawal of the Proceeds of the Grant
1.
The table below sets forth the categories of items to be financed out of the 
proceeds of the Grant, the allocation of the amounts of the Grant to each Category and 
the percentage of expenditures for items so to be financed in each Category:
  Amount of
  the Grant
  Allocated
   % of
(Expressed in Expenditures
Category
NOK Equivalent
to be Financed
(1)
Printing of text books under
  16,100,000
100% of foreign
part A(1) (b) of the project
expenditures, 100%
of local expenditures
(ex-factory cost) and
85% of local
expenditures for other
items procured
locally.
(2)
Technical Assistance and
   4,200,000
100%
training under Part A(1) 
(b) of the project
(3)
Unallocated
           700,000
TOTAL
  21,000,000
2.
For the purposes of this Schedule:
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(a)
The term "foreign expenditures" means expenditures in the currency of any 
country other than that of the Grantee for goods or services supplied from the 
territory of any country other than that of the Grantee; and
(b)
The term "local expenditures" means expenditures in the currency of the 
Grantee or for goods or services supplied from the territory of the Grantee.
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made in respect of payments made for expenditures prior to the date of this Agreement.
Schedule 2
Description of the Project
The objectives of the Project are to assist the Grantee to: (a) improve student 
and teacher performances in primary and lower secondary education; (b) develop 
mechanisms for the provision of educational facilities for primary and lower secondary 
education; (c) promote efficiency in the allocation and use of resources in the 
education sector; and (d) provide effective delivery of basic education services.
The Project consists of the following parts, subject to such modifications 
thereof as the Grantee and the Association may agree upon from time to time to achieve 
such objectives:
Part A:
Curriculum Development and Pedagogical Support
1.
(a)
Curriculum development and development of instructional materials, 
including the provision of MOE staff training and technical assistance therefore.
(b)
Publishing, printing and distribution of instructional materials, and 
development of a system for the provision of school supplies, including the provision 
of MOE staff training and technical assistance therefore.
2.
Provision of school teacher training for implementation of the curriculum 
developed under Part A.1 of the Project:
3.
Establishment of a corps of pedagogical advisers for primary education, and of 
teacher advisers for lower secondary education.
4. Provision of training and educational materials to support the establishment of 
professional networks of teachers and principals of neighboring primary schools.
5.
Carrying out of a study on Lao language teaching and schooling needs for ethnic 
minority children.
6.
Introduction of continuous student progression and evaluation systems in primary 
schools; review of student assessment and examination systems in primary and secondary 
education; and organization of multi-grade classes at the primary level.
Part B:
School Infrastructure
1.
Reconstruction of about three hundred and ninety (390) primary schools in 
Vientiane Prefecture and in the Grantee's provinces of Saravane, Savannakhet, 
Vientiane, Xieng Khouang, Luang Prabang and Luang Namtha, and of about thirty-four 
(34) lower secondary schools country-wide.
2.
Strengthening of the Grantee's educational, administration capacity for 
construction, rehabilitation and maintenance of education facilities through, inter 
alia, the: (a) enhancement of the School Construction Service Unit; (b) establishment 
of Provincial Units for Construction Assistance; and (c) provision of facilities, 
equipment and technical assistance therefore.
Part C:
Planning, Monitoring and Evaluation
1.
Development of a data collection and analysis system to enhance planning and 
management of the education sector, including school database, instructional materials 
database, school maps, inventory of school facilities, furniture and equipment, and 
personnel inventory of teaching and administrative staff.
2.
Carrying out of studies to assess: (a) educational outcomes, including rates and 
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patterns of student attendance and achievement; (b) factors affecting school and 
student performance; and (c) cost -effectiveness of specific educational policies.
Part D:
Educational Administration and Management
1.
Strengthening of MOE capacities in financial and personnel management through 
provision of staff training and technical assistance.
2.
Development of plans to improve the structures and procedures of the Grantee's 
educational administration, including provision of technical assistance.
3.
Carrying out of an institutional assessment of local and school administrations, 
including staff training and provision of technical assistance.
4.
Rehabilitation and construction of about 130 administrative facilities of MOE at 
the central, provincial and district levels, including provision of furniture and 
equipment.
5.
Development and implementation of a policy for establishing efficient 
student-teacher ratios in primary and secondary education.
***************************
The Project is expected to be completed by June 30, 1999.
Schedule 3
Procurement and Consultants’ Services
Section I.
Procurement of Goods
Part A:
International Competitive Bidding
1.
Printing of new primary and lower secondary education textbooks under Part A.1 
of the Project (the "Goods") shall be procured under contracts awarded in accordance 
with procedures consistent with those set forth in Sections I and II of the 
"Guidelines for Procurement under IBRD Loans and IDA Credits" published by the Bank in 
May 1992 (the "Guidelines"). For fixed- price contracts, the invitation to bid 
referred to in paragraph 2.13 of the Guidelines shall provide that, when
contract 
award is delayed beyond the original bid validity period, the successful bidder's bid 
price will be increased for each week of delay by two pre-disclosed correction factors 
acceptable to the Administrator, one to be applied to all foreign currency components 
and the other to the local currency component of the bid price. Such an increase shall 
not be taken into account in the bid evaluation.
2.
To the extent practicable, contracts for Goods shall be grouped into bid 
packages each estimated to cost the equivalent of one hundred thousand dollars 
($100,000) or more.
Part B:
Preference for Domestic Manufacturers
In the procurement of Goods in accordance with the procedures described in Part 
A.1 hereof, goods manufactured in the Lao People s Democratic Republic may be granted 
a margin of preference in accordance with, and subject to, the provisions of 
paragraphs 2.55 and 2.56 of the Guidelines and paragraphs 1 through 4 of Appendix 2 
thereto.
Part C:
Review by the Administrator of Procurement Decisions
1.
Review of invitations to bid and of proposed awards and final contracts:
(a)
With respect to all contracts for Goods estimated to cost the equivalent 
of one hundred thousand dollars ($100,000) or more the procedures set forth in 
paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for 
such contract are to be made out of the Norwegian Special Account, such procedures 
shall be modified to ensure that the two (2) conformed copies of the contract required 
to be furnished to the Administrator pursuant to said paragraph 2 (d) shall be 
furnished to the Administrator prior to the making of the first payment out of the 
Norwegian Special Account in respect of such contract.
(b)
With respect to each contract not governed by the preceding paragraph, 
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the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall 
apply. Where payments for such contract are to be made out of the Norwegian Special 
Account, such procedures shall be modified to ensure that the two (2) conformed copies 
of the contract together with the other information required to be furnished to the 
Administrator pursuant to said paragraph 3 shall be furnished to the Administrator as 
part of the evidence to be furnished pursuant to paragraph 4 of Schedule 5 to this 
Agreement.
(c)
The provisions of the preceding subparagraph (b) shall not apply to 
contracts on account of which withdrawals from the Trust Account are to be made on the 
basis of statements of expenditure.
2.
The figure of ten percent (109) is hereby specified for purposes of paragraph 4 
of Appendix 1 to the Guidelines.
Section II.
Employment of Consultants
1.
In order to assist the Grantee in carrying out the training and technical 
assistance for publishing and distribution of instructional materials, and development 
of a system for the provision of school supplies under Part A.1 of the Project, the 
Grantee shall employ consultants whose qualifications, experience and terms and 
conditions of employment shall be satisfactory to the Administrator. Such consultants 
shall be selected in accordance with procedures satisfactory to the Administrator on 
the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by 
The World Bank as Executing Agency" published by the Bank in August 1981 (the 
"Consultant Guidelines").
2.
Notwithstanding the provisions of paragraph 1 of this Section, the provisions of 
the Consultant Guidelines requiring prior Administrator review or approval of budgets, 
short lists, selection procedures, letters of invitation, proposals, evaluation, 
reports and contracts shall not apply to contracts estimated to cost less than the 
equivalent of one hundred thousand dollars ($100,000) per contract. However, this 
exception to prior Administrator review shall not apply to the terms of reference for 
such contracts nor to the employment of individuals, to single source selection of 
firms, to assignments of a critical nature as reasonably determined by the 
Administrator and to the amendments of contracts raising the contract value to the 
equivalent of one hundred thousand dollars ($100,000) or more.
Schedule 4
Implementation Program
1.
The Grantee shall carry out the Project in accordance with work programs and 
time-tables satisfactory to the Administrator. For such purposes, on April 15 of each 
year, commencing on April 15, 1994, the Grantee shall prepare and furnish to the 
Administrator, for its approval, a proposed annual work program and time-table for 
Project implementation during the Grantee's following fiscal year, and thereafter 
adopt and implement such work program and time-table as so approved.
2.
On April 15 of each year, commencing on April 15, 1994, the Grantee shall 
furnish to the Administrator, for its review and comments, its proposed budgetary 
allocations for the education sector in the Grantee's following fiscal year, and 
thereafter, taking into account the Administrator's comments, make the required 
budgetary allocations.
3.
The Grantee shall maintain within MOE the Project Support Unit (the "PSV") 
headed by an experienced and qualified officer, and vest it with such 
responsibilities, funds and staff as shall be required to enable the PSU to undertake 
the overall coordination of the Project. For such purposes, the Grantee shall, by 
December 31, 1993, employ and thereafter assign to the PSU, as a minimum, the 
following staff: a Project Director, two Project Coordinators, an office Manager and 
an Assistant manager. In addition and pursuant to Section II of Schedule 3 to this 
Agreement, the Grantee shall, by
December 31, 1993 and until the completion of the 
Project, employ and assign to the PSU a Project Adviser.
4.
The Grantee shall maintain within MOE the School Construction Service Unit (the 
"SCSU"), headed by an experienced and qualified officer, and vest it with such 
responsibilities, funds and staff as shall be required to enable the SCS to plan and 
manage the investment program for the construction of schools and administrative 
facilities under the Project. For such purposes, the Grantee shall employ and 
thereafter assign to the SCS, as a minimum, the following staff: (a) by December 31, 
1993, an architect or civil works technician, an engineer, a draftsman, a procurement 
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manager, an accountant and
a construction supervisor; and (b) by October 31, 1995, 
four additional construction supervisors of whom two shall be employed by July 31, 
1994.
5.
By December 31, 1993, the Grantee shall vest the Instructional Materials Unit 
(the "IMU"), within MOE with the responsibility for planning and supervision of the 
production and distribution of the, instructional materials provided under the 
Project. For such purposes, the Grantee shall maintain the IMU headed by an 
experienced and qualified officer, and provide it with such funds and staff as shall 
be required to enable the IMU to adequately undertake its aforesaid responsibilities.
6.
The Grantee shall, pursuant to a time-table satisfactory to the Administrator, 
establish and, thereafter, maintain a Provincial Unit for Construction Assistance (the 
"PUCA") in each of its administrative provinces of Saravane, Savannakhet, Vientiane, 
Xieng Iihouang, Luang Prabang and Luang Namtha, headed by an experienced and qualified 
officer, and vest each PUCA with such responsibilities, funds and staff as shall be 
required to enable each of them to preserve community-based primary school 
rehabilitation and construction.
7.
The Grantee shall, by June 30, 1994, assign three pedagogical advisers to each 
of the Grantee's District Education and Sports Service and, by June 30, 1996, assign 
eight teacher advisers to each of the Grantee's Provincial Education and Sports 
Service.
8.
On April 15 and October 15 of each year, commencing on April 15, 1994, the 
Grantee shall prepare and furnish to the Administrator semi-annual reports on progress 
in Project implementation. In addition, on April 15, 1996, the Grantee shall, in 
consultation with the Administrator, carry out a mid-term review of Project 
implementation.
Schedule 5
Norwegian Special Account
1.
For the purposes of this Schedule:
(a)
The term "Category" means the Categories set forth in the table in 
paragraph 1 of Schedule 1 to this Agreement;
(b)
The term "Eligible Expenditures" means expenditures in respect of the 
reasonable cost of goods and services required for the Project to be financed out of 
the proceeds of the Grant; and
(c)
The term "Authorized Allocation" means an amount equivalent to one 
hundred fifty thousand dollars ($150,000) to be withdrawn from the Trust Account and 
deposited into the Special Account pursuant to paragraph 3(a) of this Schedule.
2.
Except as the Administrator shall otherwise agree, payments out of the Norwegian 
Special Account shall be made exclusively for Eligible Expenditures in accordance with 
the provisions of this Schedule.
3.
After the Administrator has received evidence satisfactory to the Administrator 
that the Norwegian Special Account has been duly opened, withdrawals of the Authorized 
Allocation and subsequent withdrawals to replenish the Norwegian Special Account may 
be made as follows:
(a)
On the basis of a request or requests by the Grantee for a deposit or 
deposits which add up to the aggregate amount of the Authorized Allocation, the 
Administrator shall, on behalf of the Grantee, deposit into the Norwegian Special 
Account such amount or amounts out of the proceeds of the Grant as the Grantee shall 
have requested.
(b)
The Grantee shall furnish to the Administrator requests for replenishment 
of the Norwegian Special Account at such intervals as the Administrator shall specify. 
On the basis of such requests, the Administrator shall deposit into the Norwegian 
Special Account such amounts out of the proceeds of the Grant as shall be required to 
replenish the Norwegian Special Account with amounts not exceeding the amount of 
payments made out of the Norwegian Special Account for Eligible Expenditures. Each 
such deposit shall be made by the Administrator in the respective equivalent amount, 
as shall have been justified by the evidence supporting the request for such deposit 
furnished pursuant to paragraph 4 of this Schedule.
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4.
For each payment made by the Grantee out of the Norwegian Special Account for 
which the Grantee requests replenishment pursuant to paragraph 3 (b) of this Schedule, 
the Grantee shall furnish to the Administrator, prior to or at the time of such 
request, such documents and other evidence as the Administrator shall reasonably 
request, showing that such payment was made for Eligible Expenditures.
5.
(a)
Notwithstanding the provisions of paragraph 3 of this Schedule, no 
further deposit into the Norwegian Special Account shall be made by the Administrator 
when either of the following situations first arises:
(i)
the Administrator shall have determined that all further 
withdrawals of the Grant proceeds should be made directly to the 
Grantee; or
(ii)
the total unwithdrawn amount of the Grant shall be equal to the 
equivalent of twice the amount of the Authorized Allocation.
(b)
Thereafter, withdrawals of the Grant proceeds remaining unwithdrawn shall 
follow such procedures as the Administrator shall specify by notice to the Grantee. 
Such further withdrawals shall be made only after and to the extent that the 
Administrator shall have been satisfied that all such amounts remaining on deposit in 
the Norwegian Special Account as of the date of such notice have been or will be 
utilized in making payments for Eligible Expenditures.
6.
If the Administrator shall have determined at any time that any payment out of 
the Norwegian Special Account: (i) was made for any expenditure or in any amount not 
eligible pursuant to paragraph 2 of this Schedule; or (ii) was not justified by the 
evidence furnished pursuant to paragraph 4 of this Schedule, the Grantee shall, 
promptly upon notice from the Administrator, deposit into the Norwegian Special 
Account (or, if the Administrator shall so request, refund to the Administrator) an 
amount equal to the amount of such payment or the portion thereof not so eligible or 
justified. No further deposit by the Administrator into the Norwegian Special Account 
shall be made until the Grantee has made such deposit or refund.
7.
If the Administrator shall have determined at any time that any amount 
outstanding in the Norwegian Special Account will not be required to cover further 
payments for Eligible Expenditures, the Grantee shall, promptly upon notice from the 
Administrator, refund to the Administrator such outstanding amount which will be added 
to the unwithdrawn amount of the Grant.