Page  1
CONFORMED COPY
CREDIT NUMBER 3627 SL
Development Credit Agreement
(HIV/AIDS Response Project)
between
REPUBLIC OF SIERRA LEONE
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated April 4, 2002
CREDIT NUMBER 3627 SL
DEVELOPMENT CREDIT AGREEMENT
AGREEMENT, dated April 4, 2002, between the REPUBLIC OF SIERRA LEONE (the 
Page  2
Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association).
WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and priority of 
the Project described in Schedule 2 to this Agreement, has requested the Association to assist in 
the financing of the Project;
(B)
the Association has received from the Borrower the following policy document, 
namely, the Borrower’s National HIV/AIDS Policy paper dated January 23, 2002, describing the 
Borrower’s program of actions, objectives and policies designed to prevent and control the 
HIV/AIDS epidemic (the Program) and declaring the Borrower’s commitment to the execution of 
the Program; 
(C)
the Project is part of the second phase of the Multi-Country AIDS Program 
(MAP II) for the Africa Region, approved by the Board of Executive Directors of the Association 
on February 7, 2002; and 
WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to 
extend the Credit to the Borrower upon the terms and conditions set forth in this Agreement;
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 (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)
“AIDS” means the Acquired Immune Deficiency Syndrome;
(b)
“Beneficiary Community” means a community of people living in the 
Borrower’s territory for the benefit of whom a Work Plan (as hereinafter defined), or a CCSI 
Subproject (as hereinafter defined), is carried out, including, but not limited to, out of school 
youth, ex-combatants, women, children, commercial sex workers, PLWHA (as hereinafter 
defined), people with signs and symptoms of STI (as hereinafter defined), workers, members of 
the armed forces, refugees, migrants, and health workers;
(c)
“CCSI Grant” means a grant for a CCSI Subproject under Part D of the Project 
made in accordance with the CCSI Manual and Section G of Schedule 4 to this Agreement;
Page  3
(d)
“CCSI Manual” means the supplement to the Project Operations Manual setting 
out procedures, and terms and conditions for CCSI Grants, under Part D of the Project;
(e)
“CCSI Subproject” means an activity to be carried out by a Participating Private 
Sector Agency under Part D of the Project which, having met the eligibility criteria set out in the 
CCSI Manual and the provisions of Schedule 4 to this Agreement, is eligible for financing, on a 
grant basis, out of the proceeds of the Credit; “Large CCSI Subproject” means a CCSI 
Subproject estimated to cost more than $25,000 equivalent; and “Small CCSI Subproject” means 
a CCSI Subproject estimated to cost $25,000 equivalent or less;
(f)
“Financial Monitoring Report” means each report prepared in accordance with 
Section 4.02 of this Agreement;
(g)
“Financial/Procurement Management Agent” and “FPMA” mean the private 
financial institution, accounting or audit firm to be appointed by the Borrower pursuant to 
Section B.5 of Schedule 4 to this Agreement to manage the proceeds of the Credit, including 
procurement and financial accounting;
(h)
“HIV”
means the Human Immuno-Deficiency Virus;
(i)
“IEC/BCC” means Information, Education and Communication, and Behavioral 
Change Communication activities;
(j)
“Intervention Management Agent” and “IMA” mean a private organization or 
firm appointed by the Borrower for the purpose of receiving, appraising and approving 
applications for Small CCSI Subprojects in conjunction with NAS (as hereinafter defined);
(k)
“Leone” means the currency of the Borrower;
(l)
“Line Ministry” means an entity in the Borrower’s government cabinet structure, 
including the Ministry of Health and Sanitation;
(m)
“Mano River Union HIV/AIDS Initiative” means the regional initiative for Sierra 
Leone, Liberia and Guinea initiated by United Nations Agencies; 
(n)
“MAP II” means the second phase of the multi-country HIV/AIDS Program for 
the Africa Region;
(o)
“MOHS” means the Ministry of Health and Sanitation;
(p)
“NAC” means the National HIV/AIDS Council to be established under the 
Office of the President of the Borrower pursuant to Section B.1 of Schedule 4 to this Agreement;
(q)
“NaCSA” means the Borrower’s National Commission for Social Action;
(r)
“NAS” means the National HIV/AIDS Secretariat to be established and 
maintained under the supervision of NAC, pursuant to Section B.2 of Schedule 4 to this 
Agreement;
Page  4
(s)
“Participating Private Sector Agency” means a private sector entity operating 
under the laws of the Borrower including, but not limited, to NaCSA, an association, a 
non-governmental organization, a community based organization, a civil society group, a 
religious body, a labor union or worker association, a research institution, a chiefdom, a village, a 
group of ex-combatants, a group of refugees, returnees, internally displaced persons, a women or 
youth group, a business or a sports club which has met the eligibility criteria and requirements 
set out in the CCSI Manual and in Schedule 4 to this Agreement and which, as a result, is entitled 
to receive a CCSI Grant for the carrying out of a CCSI Subproject under Part D of the Project;
(t)
“Participating Public Sector Agency” means a Line Ministry or other agency of 
the Borrower which has met the eligibility criteria set out in the Project Operations Manual and 
has met the requirements of Schedule 4 to this Agreement and which, as a result, has received or 
is entitled to receive, funds from the proceeds of the Credit for carrying out a Work Program (as 
hereinafter defined) under Part B of the Project;
(u)
“PLWHA” means People Living with HIV/AIDS;
(v)
“Project Implementation Plan” and “PIP” mean the plan for the implementation 
of the Project referred to in Paragraph A of Schedule 4 to this Agreement;
(w)
“Project Operations Manual” and “POM” mean the Project Operations Manual 
for the Project referred to in paragraph 1 of Schedule 4 to this Agreement;
(x)
“Project Preparation Advance” means the project preparation advance granted by 
the Association to the Borrower pursuant to the letter agreement signed on behalf of the 
Association on September 24, 2001 and on behalf of the Borrower on October 1, 2001;
(y)
“Special Accounts” mean the accounts referred to in Section 2.02 (b) of this 
Agreement;
(z)
“STI” means sexually transmitted infections; and
(aa)
“Work Plan” means an activity or activities to be carried out by a Participating 
Public Sector Agency under Part B of the Project which, having met the eligibility criteria set out 
in the PIP and POM and the provisions of Schedule 4 to this Agreement, is eligible for financing 
out of the proceeds of the Credit.
ARTICLE II
The Credit
Section 2.01. The Association agrees to lend to the Borrower, on the terms and 
conditions set forth or referred to in the Development Credit Agreement, an amount in various 
currencies equivalent to twelve million one hundred thousand Special Drawing Rights (SDR 
12,100,000).
Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in 
accordance with the provisions of Schedule 1 to this Agreement for (i) expenditures made (or, if 
Page  5
the Association shall so agree, to be made) in respect of the reasonable cost of goods, works and 
services required for the Project and to be financed out of the proceeds of the Credit; and (ii) 
amounts paid (or, if the Association shall so agree, amounts to be paid) by the Borrower on 
account of withdrawals made to meet the reasonable cost of goods, works and services required 
for any Subproject in respect of which the withdrawal from the Credit Account is requested.
(b)
The Borrower may open and maintain in dollars a separate special deposit 
account (the Main Project Account) for the purposes of Parts A, B, and D of the Project, and a 
separate special deposit account (the MOHS Special Account) for purposes of Part C of the 
Project, both in a bank satisfactory to the Association, and on terms and conditions satisfactory 
to the Association including appropriate protection against set off, seizure or attachment.  
Deposits into, and payments out of, each respective Special Account shall be made in accordance 
with the provisions of Schedule 6 to this Agreement.
(c)
Promptly after the Effective Date, the Association shall, on behalf of the 
Borrower, withdraw from the Credit Account and pay to itself the amount required to repay the 
principal amount of the Project Preparation Advance withdrawn and outstanding as of such date 
and to pay all unpaid charges thereon. The unwithdrawn balance of the authorized amount of the 
Project Preparation Advance shall thereupon be canceled.
Section 2.03. The Closing Date shall be December 31, 2006 or such later date as the 
Association shall establish. The Association shall promptly notify the Borrower of such later 
date.
Section 2.04. (a) The Borrower shall pay to the Association a commitment charge on the 
principal amount of the Credit not withdrawn from time to time at a rate to be set by the 
Association as of June 30 of each year, but not to exceed the rate of one-half of one percent (1/2 
of 1%) per annum.
(b)
The commitment charge shall accrue: (i) from the date sixty days after the date 
of this Agreement (the accrual date) to the respective dates on which amounts shall be withdrawn 
by the Borrower from the Credit Account or canceled; and (ii) at the rate set as of the June 30 
immediately preceding the accrual date and at such other rates as may be set from time to time 
thereafter pursuant to paragraph (a) above. The rate set as of June 30 in each year shall be 
applied from the next date in that year specified in Section 2.06 of this Agreement.
(c)
The commitment charge shall be paid: (i) at such places as the Association shall 
reasonably request; (ii) without restrictions of any kind imposed by, or in the territory of, the 
Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 
of the General Conditions or in such other eligible currency or currencies as may from time to 
time be designated or selected pursuant to the provisions of that Section.
Section 2.05. The Borrower shall pay to the Association a service charge at the rate of 
three-fourths of one percent (3/4 of 1%) per annum on the principal amount of the Credit 
withdrawn and outstanding from time to time.
Page  6
Section 2.06. Commitment charges and service charges shall be payable semiannually on 
June 15 and December 15 in each year.
Section 2.07. (a)  Subject to paragraphs (b), (c) and (d) below, the Borrower shall repay 
the principal amount of the Credit in semiannual installments payable on each June 15 and 
December 15 commencing June 15, 2012 and ending December 15, 2041. Each installment up to 
and including the installment payable on December 15, 2021 shall be one percent (1%) of such 
principal amount, and each installment thereafter shall be two percent (2%) of such principal 
amount.
(b)
Whenever: (i) the Borrower's per capita gross national product (GNP), as 
determined by the Association, shall have exceeded for three consecutive years the level 
established annually by the Association for determining eligibility to access the Association's 
resources; and (ii) the Bank shall consider the Borrower creditworthy for Bank lending, the 
Association may, subsequent to the review and approval thereof by the Executive Directors of 
the Association and after due consideration by them of the development of the Borrower's 
economy, modify the repayment of installments under paragraph (a) above by:
(A)
requiring the Borrower to repay twice the amount of each such 
installment not yet due until the principal amount of the Credit shall 
have been repaid; and
(B)
requiring the Borrower to commence repayment of the principal amount 
of the Credit as of the first semiannual payment date referred to in 
paragraph (a) above falling six months or more after the date on which 
the Association notifies the Borrower that the events set out in this 
paragraph (b) have occurred, provided, however, that there shall be a 
grace period of a minimum of five years on such repayment of principal.
(c)
If so requested by the Borrower, the Association may revise the modification 
referred to in paragraph (b) above to include, in lieu of some or all of  the increase in the amounts 
of such installments, the payment of interest at an annual rate agreed with the Association on the 
principal amount of the Credit withdrawn and outstanding from time to time, provided that, in the 
judgment of the Association, such revision shall not change the grant element obtained under the 
above-mentioned  repayment modification.
(d)
If, at any time after a modification of terms pursuant to paragraph (b) above, the 
Association determines that the Borrower's economic condition has deteriorated significantly, the 
Association may, if so requested by the Borrower, further modify the terms of repayment to 
conform to the schedule of installments as provided in paragraph (a) above.
Section 2.08. The currency of the United States of America is hereby specified for the 
purposes of Section 4.02 of the General Conditions.
Page  7
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 end, shall carry out Parts A, B and D of 
the Project through the NAC and the NAS, and Part C of the Project through the MOHS, all with 
due diligence and efficiency and in conformity with appropriate administrative, financial, public 
health and environmental 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 Borrower and the Association shall otherwise agree, the Borrower shall carry out 
the Project in accordance with the Implementation Program set forth in Schedule 4 to this 
Agreement and with the PIP and the POM.
Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, 
works and consultants’ services required for the Project and to be financed out of the proceeds of 
the Credit shall be governed by the provisions of Schedule 3 to this Agreement.
Section 3.03. Without limitation upon the provisions of Section 3.01 of this Agreement, 
the Borrower shall, for the purposes of facilitating its counterpart contribution to the Project: 
(a)
open and maintain in a bank, until the completion of the Project, an account on 
terms and conditions satisfactory to the Association;
(b)
deposit into the Project Account an initial amount in Leones equivalent to 
$100,000, and thereafter, at quarterly intervals, deposit into the Project Account such amounts as 
are estimated to be required for the ensuing quarter or such other amounts as shall be agreed 
between the Borrower and the Association; and 
(c)
ensure that the amounts deposited into the Project Account in accordance with 
paragraph (b) of this Section shall be used exclusively for expenditures under the Project not 
otherwise financed from the proceeds of the Credit. 
Section 3.04. For the purposes of Section 9.06 of the General Conditions and without 
limitation thereto, the Borrower shall:
(a)
prepare, on the basis of guidelines acceptable to the Association, and furnish to 
the Association not later than six (6) months after the Closing Date or such later date as may be 
agreed for this purpose between the Borrower and the Association, a plan designed to ensure the 
continued achievement of the Project’s objectives; and
(b)
afford the Association a reasonable opportunity to exchange views with the 
Page  8
Borrower on said plan.
ARTICLE IV
Financial Covenants
Section 4.01. (a) The Borrower shall maintain a financial management system, including 
records and accounts, and prepare financial statements in a format acceptable to the Association, 
adequate to reflect the operations, resources and expenditures related to the Project.
(b)
The Borrower shall:
(i)
have the records, accounts and financial statements referred to in 
paragraph (a) of this Section and the records and accounts for the 
Special Accounts for each fiscal year audited, in accordance with 
auditing standards acceptable to the Association, consistently applied, by 
independent auditors acceptable to the Association;
(ii)
furnish to the Association as soon as available, but in any case not later 
than six months after the end of each such year, (A) certified copies of 
the financial statements referred to in paragraph (a) of this Section for 
such year as so audited, and (B) an opinion on such statements, records 
and accounts and report of such audit, by said auditors, of such scope 
and in such detail as the Association shall have reasonably requested; 
and
(iii)
furnish to the Association such other information concerning such 
records and accounts, and the audit thereof, and concerning said 
auditors, as the Association may from time to time reasonably request.
(c)
For all expenditures with respect to which withdrawals from the Credit Account 
were made on the basis of statements of expenditure, the Borrower shall:
(i)
maintain or cause to be maintained, in accordance with paragraph (a) of 
this Section, records and separate accounts reflecting such expenditures;
(ii)
retain, until at least one year after the Association has received the audit 
report for the fiscal year in which the last withdrawal from the Credit 
Account was made, all records (contracts, orders, invoices, bills, receipts 
and other documents) evidencing such expenditures;
(iii)
enable the Association’s representatives to examine such records; and
(iv)
ensure that such records and accounts are included in the annual audit 
Page  9
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.  (a) Without limitation upon the Borrower’s progress reporting obligations 
set out in Sections H and I of Schedule 4 to this Agreement, the Borrower shall prepare and 
furnish  to the Association a Financial Monitoring Report, in form and substance satisfactory to 
the Association, which:
(i)
sets forth sources and uses of funds for the Project, both cumulatively 
and for the 
period covered by said report, showing separately funds 
provided under the 
Credit, and explains variances between the 
actual and planned uses of  such 
funds;
(ii)
describes physical progress in Project implementation, both 
cumulatively and for 
the period covered by said report, and explains 
variances between the actual
and planned 
Project 
implementation; and
(iii)
sets forth the status of procurement under the Project, as at the end of the 
period 
covered by said report.
(b)
The first Financial Monitoring Report shall be furnished to the Association not 
later than 45 days after the end of the first calendar quarter after the Effective Date, and shall 
cover the period from the incurrence of the first expenditure under the Project through the end of 
such first calendar quarter; thereafter, each financial monitoring report shall be furnished to the 
Association not later than 45 days after each subsequent calendar quarter, and shall cover such 
calendar quarter. 
ARTICLE V
Remedies of the Association
Section 5.01. Pursuant to Section 6.02 (l) of the General Conditions, the following 
additional event is specified, namely that a situation shall have arisen which shall make it 
improbable that the Program or a significant part thereof will be carried out.
ARTICLE VI
Effective Date; Termination
Section 6.01. The following events are specified as additional conditions to the 
effectiveness of this Agreement within the meaning of Section 12.01 (b) of the General 
Page  10
Conditions:
(a)
the Borrower has established the NAC and the NAS and has appointed the 
following key staff for the NAS: a Director, a Deputy Director and a Planning, Monitoring and 
Evaluation Specialist, all with qualifications, experience and terms of reference acceptable to the 
Association;
(b)
the Borrower has adopted the Project Operations Manual (other than the CCSI 
Manual) in form and substance satisfactory to the Association;
(c)
the Borrower has finalized the Project Implementation Plan for the first calendar 
year of the Project in form and substance satisfactory to the Association;
(d)
the Borrower has established an accounting and a financial management system 
satisfactory to the Association;
(e)
the Borrower has appointed the Financial/Procurement Management Agent 
referred to in Section B.5 of Schedule 4 to this Agreement in accordance with the provisions of 
Section II of Schedule 3 to this Agreement;
(f)
the Borrower has appointed an independent auditor in accordance with the 
provisions of Section II of Schedule 3 to this Agreement; and
(g)
the Borrower has finalized a medical waste management training plan for the six 
(6) month period following the effectiveness date of the Project, in form and substance 
satisfactory to the Association and has undertaken to develop a comprehensive medical waste 
management plan.
Section 6.02. 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
Representative of the Borrower; Addresses
Section 7.01. The Minister responsible for finance of the Borrower is designated as the 
representative of the Borrower for the purposes 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:
The Minister of Finance
Ministry of Finance
Page  11
Freetown, 
Sierra Leone
Cable address:
    MINFIN
    Freetown
For the Association:
International Development Association 
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
Facsimile
    INDEVAS
    248423 (MCI) or
    (202) 477-6391
    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 the District 
of Columbia, United States of America, as of the day and year first above written.
REPUBLIC OF SIERRA LEONE
By
/s/ John E. Leigh
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By
/s/ Callisto Madavo
Regional Vice President
Africa
SCHEDULE 1
Page  12
Withdrawal of the Proceeds of the Credit
1.
The table below sets forth the Categories of items to be financed out of the proceeds of 
the Credit, the allocation of the amounts of the Credit to each Category and the percentage of 
expenditures for items so to be financed in each Category:
Category
Amount of the
Credit Allocated 
(Expressed in SDRs)
% of Expenditure
to be Financed
(1)
Civil works
(a) Under Parts A, B 
      and D of the Project
(b) Under Part C of the  
      Project
           40,000                                
           40,000
90%
(2)
Goods
(a) Under Parts A, B and   
      D of the Project
(b) Under Part C of the       
      Project
          450,000
          450,000                                                     
100% of foreign 
expenditures and 90% of 
local expenditures
(3)
Consultants’ Services, 
Audit and Training
(a) Under Parts A, B and  
      D of the Project
(b) Under Part C of the     
      Project
       2,100,000
       2,100,000
100% of foreign 
expenditures and 90% of 
local expenditures
(4)
CCSI Grants under Part 
D of the Project
       5,250,000
100% of amounts 
disbursed
Page  13
Category
Amount of the
Credit Allocated 
(Expressed in SDRs)
% of Expenditure
to be Financed
(5)
Operating Costs
(a) Under Parts A, B and   
      D of the Project
(b) Under Part C of the   
      Project
          200,000
          200,000
90%
(6)
Project preparation 
advance
          320,000
Amount due pursuant to 
Section 2.02 (c) of this 
Agreement
(7)
Unallocated
          950,000
TOTAL
     12,100,000
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;
(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; and
(c)
the term “Operating Costs” means the operating costs arising under the Project 
on account of maintenance of vehicles, fuel, equipment, office supplies, utilities, consumables, 
travel per diems and allowances, travel and accommodation, office rental and Project support to 
staff recruited to work in the NAS, but excluding salaries of the Borrower’s civil servants.
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in 
respect of:
(a)
payments made for expenditures prior to the date of this Agreement, except that 
withdrawals in an aggregate amount not exceeding the equivalent of SDR1,200,000 may be made 
in respect of Categories (2), (4) and (5) on account of payments made for expenditures before 
that date but after February 14, 2002; and
Page  14
(b)
expenditures under Category (4) unless: (i) NAC has formally approved and 
adopted the CCSI Manual; and (ii) the CCSI Grant in question has been made in accordance with 
the procedures, guidelines and other provisions set out or referred to in the CCSI Manual, the 
POM and Schedule 4 of this Agreement.
4.
The Association may require withdrawals from the Credit Account to be made on the 
basis of statements of expenditure for: (i) goods under contracts costing less than $100,000 
equivalent each; (ii) services under contracts costing less than (A) $100,000 equivalent each for 
consulting firms, and (B) $50,000 equivalent each for individual consultants; (iii) CCSI Grants 
costing less than $50,000 equivalent each; and (iv) all Operating Costs and training, all under 
such terms and conditions as the Association shall specify by notice to the Borrower. 
SCHEDULE 2
Description of the Project
The objective of the Project is to support the Borrower’s efforts to organize a 
multisectoral response to the HIV/AIDS crisis, including containing or reducing the spread of 
HIV/AIDS and mitigating its effects.
The Project consists of the following parts, subject to such modifications thereof as the 
Borrower and the Association may agree upon from time to time to achieve such objectives:
Part A:
Capacity Building, Policy and Program Coordination
1.
Strengthening the capacity of the Borrower to contain the spread of HIV/AIDS and to 
mitigate its effects through provision of technical advisory services and training to staff of NAC 
and NAS.
2.
Dissemination of information related to the prevention and care of HIV/AIDS, including 
meetings, workshops, preparation and dissemination of materials related thereto through 
multimedia channels.
3.
Provision of training to key staff in Participating Public Sector Agencies to assist in the 
design, planning and execution of Work Plans.
4.
Provision of training to Participating Private Sector Agencies to assist in the design, 
planning and execution of CCSI Subprojects.
5.
Carrying out a comprehensive assessment, monitoring and evaluation of the National 
HIV/AIDS Policy, strategy and plan of action, including biological and behavioral surveillance 
and epidemiological research.
Page  15
Part B:
Multi-sector Response for HIV/AIDS Prevention and Care
Improving the capacity of Participating Public Sector Agencies to respond to the 
HIV/AIDS crisis through carrying out of Work Plans.
Part C:
Health Sector Responses to STI/HIV Management
Strengthening the capacity of MOHS to respond to HIV/AIDS through:
1.
Reform of MOHS institutional arrangements in order to increase its capacity to 
effectively address HIV/AIDS.
2.
Rehabilitation of MOHS’s central laboratory at Connaught Hospital.
3.
Upgrading of MOHS’s national sentinel surveillance system.
4.
Carrying out of voluntary counseling and testing (VCT) activities.
5.
Implementation of syndromic management of STI.
6.
Upgrading of the Borrower’s blood transfusion system, including carrying out of 
screening and supply programs.
7.
Strengthening the capacity of the national and other referral hospitals to deal with 
HIV/AIDS, STI, and other opportunistic infections including Tuberculosis.
8.
Procurement and distribution of condoms and carrying out of a social marketing 
campaign to encourage the use of condoms.
9.
Carrying out of IEC/BCC activities, in collaboration with Participating Public Sector 
Agencies, aimed at vulnerable or potentially high transmitter groups.
10.
Establishment of a primary level care and treatment program for people infected and 
affected by HIV/AIDS.
11.
Carrying out of programs to prevent mother to child transmission of HIV in HIV-positive 
pregnant women and children.
12.
Developing, approving and implementing a medical waste management training plan and 
comprehensive medical waste management plan of action.
Part D:
Community and Civil Society Initiatives
Provision of CCSI Grants for the financing of CCSI Subprojects to be carried out by 
Participating Private Sector Agencies for HIV/AIDS prevention and care related activities, 
including, but not limited to: (i) information education and communication and behavioral 
Page  16
change communication campaigns; (ii) support to high-risk groups such as commercial sex 
workers and vulnerable groups subject to sexual abuse and discrimination; (iii) youth-related 
activities; (iv) activities which support orphans and other vulnerable children, including street 
children; (v) counseling for various interventions to prevent mother-to-child transmission, 
including infant feeding support; (vi) condom supply, distribution and dissemination; (vii) 
voluntary testing, counseling, and management of opportunistic infections; (viii) literacy 
programs with reproductive health content; (ix) assistance to CCSI Subproject partners in 
management, supervision and beneficiary assessment; and (x) care provided by traditional 
healers.
***
The Project is expected to be completed by July 31, 2006.
SCHEDULE 3
Procurement
Section I
.
Procurement of Good and Works
Part A
:
General
Goods and works shall be procured in accordance with (a) 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 (b) the provisions of the following Parts of this Section I.
Part B
:
International Competitive Bidding
1.
Except as otherwise provided in Part C of this Section, goods 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 to be procured under contracts awarded in 
accordance with the provisions of paragraph 1 of this Part B.
(a)
Grouping of contracts
To the extent practicable, contracts for goods shall be grouped in bid packages estimated 
to cost $100,000 equivalent or more each.
Page  17
(b)
Preference for domestically manufactured goods
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.
Part C
:
Other Procurement Procedures
1.
National Competitive Bidding
Goods and works estimated to cost less than $100,000 equivalent per contract, up to an 
aggregate amount not to exceed $300,000 equivalent, may be procured under contracts awarded 
in accordance with the provisions of paragraphs 3.3 and 3.4 of the Guidelines.
2.
International or National Shopping
Goods estimated to cost less than $30,000 equivalent per contract, up to an aggregate 
amount not to exceed $ 800,000 equivalent may be procured under contracts awarded either on 
the basis of national shopping procedures or international shopping procedures, depending on 
local availability, in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines.
3.
Limited International Bidding
Condoms and other goods may be procured under contracts awarded in accordance with 
the provisions of paragraph 3.2 of the Guidelines.
4.
Procurement from UN Agencies
Contracts for medical drugs, condoms and equipment, office equipment and vehicles not 
exceeding the equivalent of $100,000 each may be procured from the Interagency Procurement 
Services Office, United Nations Children’s Fund, United Nations Fund for Population Activities, 
World Food Program, or World Health Organization in accordance with the provisions of 
paragraph 3.9 of the Guidelines.
5.
Community Participation
Goods and works required for Part D of the Project may be procured following the 
provisions of paragraph 3.15 of the Guidelines and in accordance with procedures acceptable to 
the Association, including the Bank’s Simplified Procurement and Disbursement Procedures.
6.
Procurement of Small Works
Works estimated to cost less than $50,000 equivalent per contract, may be procured 
under lump-sum, fixed-price contracts awarded on the basis of quotations obtained from three (3) 
Page  18
qualified domestic contractors in response to a written invitation. The invitation shall include a 
detailed description of the works, including basic specifications, the required completion date, a 
basic form of agreement acceptable to the Association, and relevant drawings, where applicable. 
The award shall be made to the contractor who offers the lowest price quotation for the required 
work, and who has the experience and resources to complete the contract successfully.
Part D
:
Review by the Association of Procurement Decisions
1.
Procurement Planning
Prior to the issuance of any invitations to bid for contracts, the proposed procurement 
plan for the Project shall be furnished to the Association 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 Association, and with the provisions of said paragraph 1.
2.
Prior Review
(a)
With respect to each contract estimated to cost the equivalent of $100,000 or more, the 
procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.
(b)
With respect to each contract under the CCSI Grants estimated to cost the equivalent of 
$50,000 or more, prior to the execution of the contract, the Borrower shall provide to the 
Association the contract together with all supporting documents for prior review.
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 (a) the provisions of the 
Introduction and Section IV of the “Guidelines:  Selection and Employment of Consultants by 
World Bank Borrowers” published by the Association in January 1997 and revised in September 
1997 and January 1999, subject to the modifications thereto set forth in paragraph 2 of this Part 
A (the Consultant Guidelines), and (b) the provisions of the following Parts of this Section II.
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 
Page  19
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 for all assignments estimated to cost less than $50,000 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.
Least-cost Selection
Services for financial auditing only may be procured under contracts awarded in 
accordance with the provisions of paragraphs 3.1 and 3.6 of the Consultant Guidelines.
2.
Selection Based on Consultants’ Qualifications
Consultants’ services estimated to cost less than $30,000 for firms and $15,000 for 
individuals equivalent per contract may be procured under contracts awarded in accordance with 
the provisions of paragraphs 3.1 and 3.7 of the Consultant Guidelines.
3.
Service Delivery Contractors
Services to be provided by social workers/medical personnel under Parts B and C of the 
Project shall be procured in accordance with procedures acceptable to the Association.
4.
Individual Consultants
Consultants’ services for tasks that meet the requirements set forth in paragraph 5.1 of 
the Consultant Guidelines shall be procured under contracts awarded to individual consultants in 
accordance with the provisions of paragraphs 5.1 through 5.3 of the Consultant Guidelines.
Part D
:
Review by the Association 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 Association 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 Association, and with the provisions of said 
paragraph 1.
Page  20
2.
Prior Review
(a)
With respect to each contract for the employment of consulting firms for any 
assignment estimated to cost the equivalent of $100,000 or more, the procedures set forth in 
paragraphs 1, 2 (other than the third subparagraph of paragraph 2(a)) and 5 of Appendix 1 to the 
Consultant Guidelines shall apply.
(b)
With respect to each contract for the employment of individual consultants 
estimated to cost the equivalent of $50,000 or more, the qualifications, experience, terms of 
reference and terms of employment of the consultants shall be furnished to the Association 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 4
Implementation Program
A.
Project Operations Manual and Project Implementation Plan
The Borrower shall prepare and furnish to the Association a Project Implementation Plan 
and a Project Operations Manual for the Project, in form and substance satisfactory to the 
Association.  Except as the Association shall otherwise agree, no provisions of the PIP or POM 
shall be amended or waived, if in the opinion of the Association, such amendment or waiver will 
materially and adversely affect the carrying out of the Project or the achievement of the 
objectives thereof.
B.
Institutional Arrangements
1.
For the purpose of general oversight of the Project, the Borrower shall establish the NAC 
within its Office of the President and maintain NAC until the completion of the Project. NAC 
shall, among other things:
(i) have oversight of the Borrower’s HIV/AIDS Policy/Strategy and 
Plan of Action; (ii) define broad priorities of action for the Project; (iii) review the progress 
towards achieving the Project’s objectives, including the Project’s annual agreed Work Plans, 
participating Line Ministry Work Plan Agreements and CCSI Subprojects; and (iv) monitor 
national performance in responding to the HIV/AIDS epidemic, including that of the health 
sector.
2.
For the purposes of coordinating and supervising the day-to-day activities under the 
Project, the Borrower shall establish and maintain until completion of the Project, NAS under the 
supervision of NAC.  NAS shall be adequately staffed with persons having qualifications and 
Page  21
experience and terms of reference acceptable to the Association, including: (i) a Director; (ii) a 
Deputy Director; (iii) a Planning, Monitoring and Evaluation Specialist; (iv) a Line Ministry 
Coordinator; (v) a Capacity Development Specialist;  (vi)  an IEC/BCC Coordinator; and (vii) 
appropriate support staff.
3.
NAS shall be responsible for: (i) overall coordination regarding the implementation of 
the different Parts of the Project; (ii) regular monitoring and evaluation of all Parts of the Project; 
(iii) the approval of annual Work Plan agreements and CCSI Subprojects; and (iv) the financial 
and administrative management of the Project.
4.
The Borrower shall establish and maintain an HIV/AIDS office in each Participating 
Public Sector Agency which will serve as its focal point in the coordination of HIV/AIDS related 
activities.
5.
The Financial/Procurement Management Agent shall assist in the implementation of the 
Project through the carrying out of: (i) the financial management of Project activities, including 
the accounting and disbursement requirements thereof; (ii) the review and approval of annual 
Work Plans and CCSI Subprojects in conjunction with NAS; and (iii) reporting requirements and 
monitoring activities.
6.
The Borrower shall appoint an Intervention Management Agent with experience, 
qualifications and terms of reference satisfactory to the Association to process CCSI applications 
for CCSI Subprojects estimated to cost the equivalent of $25,000 or less, and to monitor the 
progress of such CCSI Subprojects, where approved.
C.
Implementation Arrangements
1.
The Borrower shall carry out the Project in accordance with the PIP and the POM.
2.
In carrying out Parts B and D of the Project, the Borrower shall apply the procedures and 
guidelines set out in the POM including, but not limited to the eligibility criteria set out in 
Section D of this Schedule.
D.
Eligibility Criteria
1.
The following types of Work Plans shall be eligible for financing out of the proceeds of 
the Credit under Parts B and D of the Project:
(a)
provision to staff of Participating Public Sector Agencies, or their dependents, of 
HIV/AIDS related services and supplies including HIV/AIDS and STI education, condoms, and 
other support which encourages avoidance behavior and, for those already infected or otherwise 
affected by HIV/AIDS, care related support;
(b)
provision to clients of Participating Public Sector Agencies or their dependents 
of HIV/AIDS related services and supplies including HIV/AIDS and STI education, condoms, 
and other support which encourages avoidance behavior and, for those already infected or 
Page  22
otherwise affected by HIV/AIDS, care related support; or
(c)
provision of assistance to the Beneficiary Communities to design, appraise, and 
implement CCSI Subprojects under Part D of the Project.
2.
The types of CCSI Subprojects referred to in Part D of the Project shall be eligible for 
financing out of the proceeds of the Credit, including the provision to Beneficiary Communities 
of HIV/AIDS related services and supplies including HIV/AIDS and STI education, condoms, 
and other support which encourages avoidance behavior and, for those already infected or 
otherwise affected by HIV/AIDS, care related support.
3.
In order for a CCSI Subproject or a Work Plan to be eligible for financing, it must be 
compatible with the policy and priorities of the Project and take into account the performance 
indicators set out in the POM and must include an itemized budget and work plan.
E.
Procedures for Work Plan Agreements
1.
Work Plan agreements shall be reviewed and approved by NAC (or its designated agent) 
all in accordance with eligibility criteria set forth in the PIP and POM; and
2.
Work Plan agreements shall take into account the policy and priorities of the Project and 
the key performance indicators described in the PIP and POM.
F.
Procedures for CCSI Subprojects
1.
Applications for CCSI Subprojects estimated to cost the equivalent of $25,000 or less 
(Small CCSI Subprojects) shall be submitted by Participating Private Sector Agencies and shall 
be reviewed and approved by IMA, in conjunction with NAS, in accordance with eligibility 
criteria set forth in the PIP and POM;
2.
CCSI Subproject applications for CCSI Subprojects estimated to cost more than $25,000 
equivalent (Large CCSI Subprojects) shall be submitted by NaCSA, or such other entity as may 
be agreed between the Borrower and the Association, and shall be reviewed and approved by 
NAS in accordance with eligibility criteria set forth in the PIP and POM; and
3.
CCSI Subproject applications which fail the eligibility criteria may be referred to NAS 
for capacity development, support and technical assistance.
G.
Terms and Conditions of Work Plan Agreements and CCSI Grant Agreements
1.
In financing a Work Plan or a Large CCSI Subproject, NAS shall enter into a Work Plan 
Agreement with the relevant Participating Public Sector Agency or into a CCSI Grant Agreement 
with the relevant Participating Private Sector Agency.  In financing a Small CCSI Subproject, the 
Page  23
IMA, as designated agent of NAS, shall enter into a CCSI Grant agreement with the relevant 
Participating Private Sector Agency as set out in the CCSI Manual.   The said agreements shall 
set forth the respective obligations of the parties, all under terms and conditions acceptable to the 
Association, which shall include the following:
(a)
that the financing of the Work Plan or CCSI Subproject shall be on a 
non-reimbursable grant basis and that NAS or the IMA shall take all measures and actions 
necessary to permit the Participating Public Sector Agency or the Participating Private Sector 
Agency to carry out the Work Plan or CCSI Subproject and ensure the achievement of the 
objectives thereof, and, subject to the fulfillment by the Participating Public Sector Agency or 
the Participating Private Sector Agency of its obligations under the agreement, shall not take or 
permit to be taken any action which would prevent or interfere with the carrying out of the Work 
Plan or CCSI Subproject;
(b)
in the case of CCSI Subprojects, that a Participating Private Sector Agency shall 
contribute in cash or in kind approximately 10% of the cost of a Small CCSI Subproject and 20% 
of the cost of a Large CCSI Subproject;
(c)
that the Participating Public Sector Agency or Participating Private Sector 
Agency shall carry out the Work Plan or CCSI Subproject, as the case may be, with due diligence 
and efficiency, and in accordance with the POM and with sound technical, financial, health, 
social and medical practices and standards and shall maintain adequate financial and other 
records;
(d)
that the goods, works and services to be financed out of the proceeds of the 
Work Plan agreement or the CCSI Grant agreement shall be procured in conformity with the 
provisions set forth in Schedule 3 to this Agreement and that such goods, works and services 
shall be used exclusively in the carrying out of the Work Plan or CCSI Subproject;
(e)
that: (i)  technical and financial reports on the implementation of the Work Plan 
or CCSI Subproject shall be furnished quarterly to NAS or the IMA for review; and (ii) during 
the last review for the period concerned, the Work Plan or CCSI Subproject plan and budget for 
the following year shall be furnished to NAS for review and approval;
(f)
that the Participating Private Sector Agency shall take out and maintain with 
responsible insurers, or make other satisfactory provision for, insurance against such risks and in 
such amounts as shall be consistent with appropriate practices;
(g)
that NAC, NAS, or its designee, as the case may be, shall have the right to 
inspect by itself or jointly with the Association the services included in the Work Plan or the 
CCSI Subproject and any record or relevant document;
(h)
that the Participating Public Sector Agency or Participating Private Sector 
Agency shall, at the request of NAC, NAS, or its designee, as the case may be, exchange views 
with the NAC or the IMA  with regard to the progress of the Work Plan or the CCSI Subproject 
and the achievement of the objectives thereof, and the performance by the Participating Public 
Sector Agency or Participating Private Sector Agency of its obligations under the relevant 
Agreement;
(i)
that the Participating Public Sector Agency or Participating Private Sector 
Page  24
Agency shall promptly inform NAC, NAS, or its designee, as the case may be, of any condition 
which interferes or threatens to interfere with the implementation of the Work Plan or the CCSI 
Subproject and the achievement of the objectives thereof; and
(j)
that NAC, NAS, or its designee, as the case may be, shall have the right to 
suspend or terminate the right of a Participating Public Sector Agency or the Participating Private 
Sector Agency to use the proceeds of the Credit upon failure by the Participating Public Sector 
Agency or the Participating Private Sector Agency to perform any of its obligations under the 
Work Plan agreement or the CCSI Grant agreement.
H.
Dated covenants
1.
The Borrower shall, not later than 90 days after the end of each calendar year during the 
duration of the Project, furnish to the Association a Project annual progress report and a 
supervision action plan for the Project.
2.
The Borrower shall, by September 15, 2002, adopt the CCSI Manual in form and 
substance acceptable to the Association.
I.
Reviews
1.
The Borrower shall:
(a)
maintain policies and procedures adequate to enable it to monitor and evaluate 
on an ongoing basis, in accordance with the indicators set forth in Schedule 5 to this Agreement, 
the carrying out of the Project and the achievement of the objectives thereof;
(b)
prepare, under terms of reference satisfactory to the Association, and furnish to 
the Association, on or about April 1 in each year during Project implementation, 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 with the Association, by April 30 of each year, or such later date as the 
Association shall request, the report referred to in paragraph (b) of this Section, and, thereafter, 
take all measures required 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 Association’s views on the matter.
2.
The Borrower shall on or about twenty four months after the Effective Date, carry out 
jointly with the Association a midterm review of the progress made in carrying out the Project 
Page  25
(hereinafter referred to as the Midterm Review).
(a)
The Midterm Review shall cover, amongst other things:
(i)
progress made in meeting the Project’s objectives; 
(ii)
results of the monitoring and evaluation activities under the Project; and
(iii)
overall Project performance against Project performance indicators.
(b) 
The Borrower shall, at least four weeks prior to the Midterm Review, furnish to 
the Association a separate report describing the status of implementation of each component of 
the Project and a summary report of Project implementation generally.
(c) 
The Borrower shall, not later than four weeks after the Midterm Review, prepare 
an action program, acceptable to the Association, for the further implementation of the Project 
having regard to the findings of the Midterm Review and, thereafter, implement such action 
program.
SCHEDULE 5
Performance Indicators
For purposes of this Agreement, the Borrower agrees that Project performance will be 
measured by the indicators below as of December 31, 2006 unless otherwise agreed by the 
Association.
Output Indicators
1.
by the Closing Date, at least 12 HIV/AIDS sentinel populations are regularly surveyed 
both with regard to behavioral and biological aspects;
2.
by the Closing Date, 100% of functioning referral and regional hospitals, 80% of 
functioning district hospitals, and 30% of all functioning health centers provide: a) opportunistic 
infection treatment and care, b) improved safety injection programs, and c) effective medical 
waste management programs;
3.
by the Closing Date, at least 1 site providing HIV/AIDS infected pregnant women and 
newborns with mother-to-child-transmission prevention services will be operating in every 
District;
4.
by the Closing Date, at least 20 organizations are providing counseling, care, and support 
services to PLWHA families as well as orphans and vulnerable children;
5.
by the Closing Date, at least 500 Participating Public Sector Agency and Participating 
Page  26
Private Sector Agency staff have been trained in HIV care and prevention and are active peer 
educators.
Process Indicators
6.
by December 31, 2004 the Borrower’s HIV/AIDS national policy is being systematically 
implemented by the NAC and the NAS, reviewed on an annual basis, consistent with the 
strategic planning process;
7.
by the Closing Date, at least 75% of all 
Participating
 Public Sector Agencies have 
incorporated HIV/AIDS prevention activities in their annual work plans and budgets, and have 
core teams in place;
8.
by the Closing Date, at least 50 Large CCSI Subprojects and 900 Small CCSI 
Subprojects are being carried out.
Outcome Indicators
9.
by the Closing Date, 70% of youth, women, commercial sex workers, uniformed 
services, and ex-combatants can cite at least two major modes of HIV/AIDS transmission and at 
least two methods of protection;
10.
by the Closing Date, 30% of youth use condoms at sexual debut, 35% of adults use 
condoms in their last casual sex act, and 50% of adults use condoms in their last commercial sex 
act.
SCHEDULE 6
Special Accounts
1.
For the purposes of this Schedule:
(a)
the term “eligible Categories” means Categories (1) (a), (2) (a), (3) (a), (4) and 
(5) (a) set forth in the table in paragraph 1 of Schedule 1 to this Agreement in respect of Parts A, 
B
and D of the Project and Categories (1) (b), (2) (b), (3) (b) and (5) (d) set forth in said table in 
respect of Part C of the Project.
(b)
the term “eligible expenditures” means expenditures in respect of the reasonable 
cost of goods and services required for  the Project and to be financed out of the proceeds of the 
Credit allocated from time to time to the eligible Categories in accordance with the provisions of 
Schedule 1 to this Agreement; and
(c)
the term “Authorized Allocation” means an amount equivalent to $1,000,000 in 
Page  27
respect of the Main Special Account and an amount equivalent to $500,000 in respect of the 
MOHS Special Account, to be withdrawn from the Credit Account and deposited into the Special 
Accounts pursuant to paragraph 3 (a) of this Schedule, provided, however, that unless the 
Association shall otherwise agree, the Authorized Allocation shall be limited to an amount 
equivalent to $500,000 in respect of the Main Special Account and an amount equivalent to 
$250,000 in respect of the MOHS Special Account, until (i) in respect of the Main Special 
Account, the aggregate amount of withdrawals from the Credit Account allocated to Categories 
(1) (a), (2) (a), (3) (a), (4) and (5) (a) plus the total amount of all outstanding special 
commitments entered into by the Association pursuant to Section 5.02 of the General Conditions 
for Parts A, B and D of the Project shall be equal to or exceed the equivalent of SDR 2,000,000, 
and (ii) in respect of the MOHS Special Account, the aggregate amount of withdrawals from the 
Credit Account allocated to Categories (1) (b), (2) (b), (3) (b) and (5) (d) plus the total amount of 
all outstanding special commitments entered into by the Association pursuant to Section 5.02 of 
the General Conditions for Part C of the Project shall be equal to or exceed the equivalent of 
SDR 1,000,000.
2.
Payments out of the respective Special Account shall be made exclusively for eligible 
expenditures in accordance with the provisions of this Schedule.
3.
After the Association has received evidence satisfactory to it that the respective Special 
Account has been duly opened, withdrawals of the Authorized Allocation and subsequent 
withdrawals to replenish the respective Special Account shall be made as follows:
(a)
For withdrawals of the Authorized Allocation, the Borrower shall furnish to the 
Association a request or requests for deposit into the respective Special Account of an amount or 
amounts which do not exceed the aggregate amount of the Authorized Allocation. On the basis of 
such request or requests, the Association shall, on behalf of the Borrower, withdraw from the 
Credit Account and deposit into the respective Special Account such amount or amounts as the 
Borrower shall have requested.
(b)
(i)
For replenishment of the respective Special Account, the Borrower shall 
furnish to the Association requests for deposits into the respective Special 
Account at such intervals as the Association shall specify.
(ii)
Prior to or at the time of each such request, the Borrower shall furnish to 
the Association the documents and other evidence required pursuant to 
paragraph 4 of this Schedule for the payment or payments in respect of which 
replenishment is requested. On the basis of each such request, the Association 
shall, on behalf of the Borrower, withdraw from the Credit Account and deposit 
into the respective 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 respective Special Account for eligible expenditures. 
All such deposits shall be withdrawn by the Association from the Credit Account 
under the respective eligible Categories, and in the respective equivalent 
amounts, as shall have been justified by said documents and other evidence.
4.
For each payment made by the Borrower out of the respective Special Account, the 
Page  28
Borrower shall, at such time as the Association shall reasonably request, furnish to the 
Association such documents and other evidence showing that such payment was made 
exclusively for eligible expenditures.
5.
Notwithstanding the provisions of paragraph 3 of this Schedule, the Association shall not 
be required to make further deposits into any Special Account:
(a)
if, at any time, the Association shall have determined that all further withdrawals 
should be made by the Borrower directly from the Credit Account in accordance with the 
provisions of Article V of the General Conditions and paragraph (a) of Section 2.02 of this 
Agreement;
(b)
if the Borrower shall have failed to furnish to the Association, 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 Association pursuant to said Section in respect of the audit of the records and 
accounts for the Special Accounts;
(c)
if, at any time, the Association 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 Credit 
Account pursuant to the provisions of Section 6.02 of the General Conditions; or
(d)
once the total unwithdrawn amount of the Credit allocated to the eligible 
Categories for the respective Special Account, minus the total amount of all outstanding special 
commitments entered into by the Association pursuant to Section 5.02 of the General Conditions 
with respect to the Project, shall equal the equivalent of twice the amount of the Authorized 
Allocation.
Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the 
Credit allocated to the eligible Categories shall follow such procedures as the Association shall 
specify by notice to the Borrower. Such further withdrawals shall be made only after and to the 
extent that the Association shall have been satisfied that all such amounts remaining on deposit 
in the respective Special Account as of the date of such notice will be utilized in making 
payments for eligible expenditures.
6.
(a)
If the Association shall have determined at any time that any payment out of any 
Special Account: (i) was made for an expenditure or in an amount not eligible pursuant to 
paragraph 2 of this Schedule; or (ii) was not justified by the evidence furnished to the 
Association, the Borrower shall, promptly upon notice from the Association: (A) provide such 
additional evidence as the Association may request; or (B) deposit into the respective Special 
Account (or, if the Association shall so request, refund to the Association) an amount equal to 
the amount of such payment or the portion thereof not so eligible or justified. Unless the 
Association shall otherwise agree, no further deposit by the Association into any 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 Association shall have determined at any time that any amount outstanding 
in any Special Account will not be required to cover further payments for eligible expenditures, 
the Borrower shall, promptly upon notice from the Association, refund to the Association such 
Page  29
outstanding amount.
(c)
The Borrower may, upon notice to the Association, refund to the Association all 
or any portion of the funds on deposit in the Special Accounts.
(d)
Refunds to the Association made pursuant to paragraphs 6 (a), (b) and (c) of this 
Schedule shall be credited to the Credit Account for subsequent withdrawal or for cancellation in 
accordance with the relevant provisions of this Agreement, including the General Conditions.