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CONFORMED COPY
CREDIT NUMBER 3135 AM
Development Credit Agreement
(Title Registration Project)
between
REPUBLIC OF ARMENIA
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated December 23, 1998
CREDIT NUMBER 3135 AM 
DEVELOPMENT CREDIT AGREEMENT 
AGREEMENT, dated December 23, 1998, between the Republic of Armenia (the 
Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). 
WHEREAS the Borrower, having satisfied itself as to the feasibility and priority 
of the project described in Schedule 2 to this Agreement (the Project), has requested 
the Association to assist in the financing of the Project; 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 December 2, 
1997) with modifications set forth below (the General Conditions) constitute an 
integral part of this Agreement:
(a)
A new paragraph (12) is added to Section 2.01 to read as set forth below, 
and the existing paragraphs (12) through (14) of said Section are accordingly numbered 
as paragraphs (13) through (15): 
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"12.  "Participating Country’ means any country that the Association 
determines meets the requirements set forth in Section 10 of Resolution No. 
183 of the Board of Governors of the Association, adopted on June 26, 1996; 
and ‘Participating Countries’ means, collectively, all such countries."
(b)
The second sentence of Section 5.01 is modified to read:
"Except as the Association and the Borrower shall otherwise agree, no 
withdrawals shall be made: (a) on account of expenditures in the territories 
of any country which is not a Participating Country or for goods produced in, 
or services supplied from, such territories; or (b) for the purpose of any 
payment to persons or entities, or for any import of goods, if such payment or 
import, to the knowledge of the Association, is prohibited by a decision of 
the United Nations Security Council taken under Chapter VII of the Charter of 
the 
United Nations."
Section 1.02. Unless the context otherwise requires, the several terms defined 
in the General Conditions have the respective meanings therein set forth and the 
following additional terms have the following meanings: 
(a)
"IRCs" means collectively Information and Registration Centers at the 
central and local levels operating under SCA; 
(b)
"Mapping Center" means the Mapping Center under SCA established pursuant 
to the Order of the Head of SCA No. 184K, dated December 24, 1997 which is responsible 
for the coordination of base mapping, surveying and production of cadastral maps for 
the national title registration system;  
(c) 
"PIU" means the Project Implementation Unit established within SCA; 
(d)
"PMB" means the Project Management Board, established by the Borrower to 
oversee Project implementation; 
(e)
"SCA" means the State Cadastral Administration established pursuant to 
the Decree of the Government of the Republic of Armenia No. 234, dated June 30, 1997; 
and
(f)
"Special Account" means the account referred to in Section 2.02 (b) of 
this Agreement.
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 six million Special Drawing Rights (SDR 6,000,000). 
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 
expenditures made (or, if the Association shall so agree, to be made) 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. 
(b)
The Borrower may, for the purposes of the Project, open and maintain in 
dollars a special deposit account in a commercial bank on terms and conditions 
satisfactory to the Association, including appropriate protection against set-off, 
seizure or attachment. Deposits into, and payments out of, the Special Account shall 
be made in accordance with the provisions of Schedule 5 to this Agreement.
Section 2.03. The Closing Date shall be December 31, 2002, 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 (60) days 
after the date of this Agreement (the accrual date) to the respective dates on which 
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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. 
Section 2.06. Commitment charges and service charges shall be payable 
semiannually on February 1 and August 1 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 February 1, and August 1, commencing February 1, 2009, and ending August 1, 2033.  
Each installment to and including the installment payable on August 1, 2018, shall be 
one and one-fourth percent (1-1/4%) of such principal amount, and each installment 
thereafter shall be two and one-half percent (2-1/2%) 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 (3) 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 (6) 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 (5) 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 hereby specified for 
the purposes of Section 4.02 of the General Conditions. 
ARTICLE III 
Execution of the Project 
Section 3.01. (a) The Borrower declares its commitment to the objectives of the 
Project, and, to this end, shall carry out the Project through SCA and PIU with due 
diligence and efficiency and in conformity with appropriate financial and 
administrative 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 
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shall carry out the Project in accordance with the Implementation Program set forth in 
Schedule 4 to this Agreement.
Section 3.02. Except as the Association shall otherwise agree, procurement of 
the goods and 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. For the purposes of Section 9.07 of the General Conditions and 
without limitation thereto, the Borrower shall: 
(a)
prepare, on the basis of guidelines acceptable to the 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 for the future operation of the Project; and 
(b)
afford the Association a reasonable opportunity to exchange views with 
the Borrower on said plan. 
ARTICLE IV 
Financial Covenants 
Section 4.01. (a) The Borrower shall establish and maintain a financial 
management system, including records and accounts and prepare financial statements, 
all in a format acceptable to the Association, adequate to reflect the operations, 
resources and expenditures for and in connection with the carrying out of 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 Account 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 (6) 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 financial statements, records and accounts and 
a 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 shall 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 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. 
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Section 4.02. Not later than December 1, 1999, the Borrower shall hire an 
auditing firm acceptable to the Association for conducting audits under the Project. 
ARTICLE V
Termination 
Section 5.01. The date ninety (90) days after the date of this Agreement is 
hereby specified for the purposes of Section 12.04 of the General Conditions.
ARTICLE VI 
Representative of the Borrower; Addresses 
Section 6.01. The Minister of Finance and Economy of the Borrower is designated 
as representative of the Borrower for the purposes of Section 11.03 of the General 
Conditions.
Section 6.02. The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Borrower:
Ministry of Finance and Economy
1, Government House
Republic Square
Yerevan, 375010
Republic of Armenia
Telex:
243331 LADA SU
For the Association:
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
INDEVAS
248423 (MCI) or
Washington, D.C.
 64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names in 
the District of Columbia, United States of America, as of the day and year first above 
written.
REPUBLIC OF ARMENIA
By /s/ Ruben Shugarian 
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Judy O’Connor 
Acting Regional Vice President 
Europe and Central Asia
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SCHEDULE 1
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:
Amount of the
Credit Allocated
   % of
(Expressed in
Expenditures
Category
SDR Equivalent)
to be Financed
(1)
Technical Services
  3,988,000
100% of foreign
expenditures,
90% of local
expenditures
(2)
Goods 
    399,000
100% of foreign
expenditures,
100% of local
expenditures 
(ex-factory cost) 
and 90% of other
items procured 
locally
(3)
Consultants’ Services       592,000
100% 
and Training
(4)
Operating Costs of 
    444,000
75% of expenditures
IRCs and the Mapping 
incurred prior to January
Center
1, 2000, 60% for  
expenditures incurred prior 
to January 1, 2001, 40% 
for expenditures incurred 
prior to January 1, 2002 
and 20% for expenditures 
incurred thereafter
 (5)
Operating Costs
          51,000
100%
of the PIU
(6)
Unallocated
         526,000
TOTAL
       6,000,000
2.
For the purposes of this Schedule: 
(a)
the term "foreign expenditures" means expenditures in the currency of any 
country other than that of the Borrower for goods or services supplied from the 
territory of any country other than that of the Borrower;  
(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; 
(c)
the term "technical services" means services other than consultants’ 
services referred to in Section II of Schedule 3 to this Agreement and include: field 
survey and property data collection services, satellite imagery and aerial photography 
and maintenance of computer and survey equipment and vehicles; 
(d)
the term "operating costs of IRCs and the "Mapping Center" means 
incremental operating expenditures incurred by IRCs and the Mapping Center, including 
expenditures on account of office materials and maintenance, supplies, utilities, 
communications, and vehicle operation and maintenance, but excluding salaries; and 
(e)
the term "Operating costs of the PIU" means incremental operating 
expenditures incurred by the PIU on account of Project implementation, managing and 
monitoring, including expenditures on account of office materials and maintenance, 
supplies, utilities, communications, office rent, financial audits, and vehicle 
operation and maintenance, but excluding salaries.
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3.
The Association may require withdrawals from the Credit Account to be made on 
the basis of statements of expenditure for expenditures for: 
(i)
goods and technical services under contracts not exceeding 
$200,000 equivalent; 
(ii)
services provided by consulting firms under contracts not 
exceeding $100,000 equivalent; 
(iii) services provided by individual consultants under contracts not 
exceeding $50,000 equivalent; 
(iv)
incremental operating costs; and (v) 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 implement a transparent, parcel-based and 
computerized title registration system which chronologically identifies the rights and 
obligations of property owners.
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:
Establishment of the IRC Network
(1)
Provision of equipment and office supplies to a central information center and 
11 selected local offices of the IRC network. 
(2)
Design, procurement and installation of an IRC computer information network to 
manage the data maintained in the title registration system. 
(3)
Provision of technical assistance, training and administrative support to the 
personnel of the IRC network. 
(4)
Financing of the incremental operating costs of the IRC network.
Part B:
Support for Surveying and Cadastral Mapping
(1) 
Provision of equipment and office supplies to the Mapping Center.
(2) 
Carrying out of satellite imagery, grid enhancement work, orthophoto mapping, 
systematic cadastre surveys and revision of available survey data, and linking of 
cadastral maps to the national grid system.
Part C:
Strengthening of PIU
Strengthening of PIU’s financial management and capacity to monitor progress of  
the Project implementation, through provision of consultants’ services, equipment, 
vehicles and  training of its staff.
* * * 
The Project is expected to be completed by June 30, 2002.
SCHEDULE 3 
Procurement and Consultants’ Services  
Section I.
Procurement of Goods
Part A:
General
1.
Goods 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 and September 1997, and 
subject to the modifications thereto set forth in paragraph 2 of this Part A (the 
Guidelines); and (b) the provisions of the following Parts of this Section.   
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2.
In paragraphs 1.6 and 1.8 of the Guidelines, the references to "Bank Member 
Countries" and "Member Country" shall be deemed to be references, respectively, to 
"Participating Countries" and "Participating Country."  
Part B:
International Competitive Bidding 
1.
Except as otherwise provided in Part C of this Section, goods and technical 
services 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. 
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 
Technical services for carrying out orthophotomapping and systematic cadastre 
survey under Part B (2) of the Project estimated to cost less than $200,000 equivalent 
per contract, up to an aggregate amount not to exceed $5,500,000 equivalent, may be 
procured under contracts awarded in accordance with the provisions of paragraphs 3.3 
and 3.4 of the Guidelines. 
2.
International Shopping
Goods estimated to cost less than $200,000 equivalent per contract, up to an 
aggregate amount not exceeding $150,000 equivalent, and technical services for 
satellite imagery under Part B (2) of the Project estimated to cost less than $200,000 
equivalent per contract, up to an aggregate amount not to exceed $200,000 equivalent, 
may be procured under contracts awarded on the basis of international shopping 
procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the 
Guidelines. 
3.
National Shopping 
Goods estimated to cost less than $50,000 equivalent per contract, up to an 
aggregate amount not to exceed $15,000, may be procured under contracts awarded on the 
basis of national shopping procedures in accordance with the provisions of paragraphs 
3.5 and 3.6 of the Guidelines. 
4.
Direct Contracting
Goods and technical services which should be procured as an extension of an 
existing contract or must be purchased from the original supplier to be compatible 
with existing equipment and costing $60,000 equivalent or less in the aggregate, may, 
with the Association’s prior agreement, be procured in accordance with the provisions 
of paragraph 3.7 of the Guidelines.
Part D:
Review by the Association of Procurement Decisions 
1.
Procurement Planning 
Prior to the issuance of any invitations to prequalify for bidding or to bid for 
contracts, the proposed procurement plan for the Project shall be furnished to the 
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 technical 
services 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: (i) each contract awarded in accordance with the 
provisions of Part B of this Schedule; and (ii) the first two contracts awarded in 
accordance with the provisions of Part C.1 of this Schedule, the procedures set forth 
in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.
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(b)
With respect to: (i) the first contract awarded in accordance with the 
provisions of Part C.2 of this Section; and (ii) the first two contracts awarded in 
accordance with the provisions of Part C.3 of this Section, the following procedures 
shall apply: (i)
prior to the selection of any supplier, the Borrower shall provide 
to the Association a report on the comparison and evaluation of quotations received; 
(ii) prior to the execution of the contract, the Borrower shall provide to the 
Association a copy of the specifications and the draft contract; and (iii) the 
procedures set forth in paragraphs 2(f), 2(g) and 3 of Appendix 1 to the Guidelines 
shall apply.
3.
Post Review 
With respect to each contract not governed by paragraph 2 of this Part, the 
procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply. 
Section II.
Employment of Consultants
Part A:
General
Consultants’ services under the Project shall be procured in accordance with the 
provisions of the Introduction and Section IV of the "Guidelines:  Selection and 
Employment of Consultants by World Bank Borrowers" published by the Bank in January 
1997 and September 1997  (the Consultant Guidelines) and the following provisions of 
Section II of this Schedule.
Part B:
Quality- and Cost-based Selection 
1.
Except as otherwise provided in Part C of this Section, consultants’ services 
shall be procured under contracts awarded in accordance with the provisions of Section 
II of the Consultant Guidelines, paragraph 3 of Appendix 1 thereto, Appendix 2 
thereto, and the provisions of paragraphs 3.13 through 3.18 thereof applicable to 
quality- and cost-based selection of consultants. 
2.
The short list of consultants for services under the Project, estimated to cost 
less than $100,000 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.
Individual Consultants
Services for tasks that meet the requirements set forth in paragraph 5.01 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. 
2.
Prior Review
(a)
With respect to each contract for consultants’ services costing the 
equivalent of $100,000 or more, the procedures set forth in paragraphs 1, 2 and (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
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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 
1.  
The Borrower shall maintain the PMB which shall be responsible for overall 
management of the Project and supervision of the activities of the PIU under the 
Project.
2.
The Borrower shall maintain the PIU during execution of the Project under a 
suitably qualified Project Director, and with such facilities, staff and resources and 
under such terms of reference as shall be satisfactory to the Association and which 
shall include, inter alia: 
(a)
by February 15 in each year during Project implementation, the 
preparation and furnishing to the Association, for its review and comments, of annual 
work programs for the Project;
(b)
the coordination of all activities under the Project; 
(c)
maintenance of  the Project financial records and accounts;
(d)
the coordination and supervision of the preparation of bidding and 
contract documents under the Project, including coordination of the recruitment of 
foreign and national consultants required for Project implementation; and 
(e)
by January 31 and July 31 in each year during Project implementation, the 
preparation and furnishing to the Association and PMB of consolidated semi-annual 
reports on the status of Project implementation. 
3.
For the purposes of carrying out Part A of the Project, the Borrower shall cause 
the PIU, in close cooperation with the SCA:
(a)
by December 31, 1998, to prepare and furnish to the Association, for its 
concurrence, a plan, including a time-schedule, for the implementation of title 
registration activities under Part A of the Project, such plan to include, inter alia, 
a list of equipment required thereunder and a program for the procurement thereof; the 
training activities to be conducted and the selection criteria for training 
candidates; and the location, staffing, and organization of IRCs to be established 
under said Part A;
(b)
thereafter carry out such plan in accordance with the time-schedule 
thereof, taking into account the Association’s comments thereon; and
(c)
adjust said plan based on the development of its implementation and in 
consultation with the Association. 
4.
For the purposes of carrying out Part B of the Project, the Borrower shall cause 
the PIU, in close cooperation with the SCA, by December 31, 1998, to prepare and 
furnish to the Association, for its concurrence, a plan, including a time-schedule, 
for the implementation of survey and mapping activities under Part B of the Project, 
such plan to include, inter alia, a list of equipment required thereunder and a 
program for the procurement thereof; the training activities to be conducted and the 
selection criteria for training candidates; and a program for the conclusion and 
implementation of the survey contracts to be awarded under said Part B.
5.
The Borrower shall:
(a)
maintain policies and procedures adequate to enable it to monitor and 
evaluate on an ongoing basis, in accordance with indicators satisfactory to the 
Association, 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 December 31, 2000, 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 
Page  11
the objectives thereof during the period following such date; and
(c)
review with the Association, by March 31, 2001, 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. 
6.
Not later than December 31, 1998, the Borrower shall submit to the National 
Assembly a draft Title Registration Law, acceptable to the Association.  
7.
Not later than February 1, 1999, the Borrower shall submit to the Association 
for its review and concurrence, operational manuals for field surveying, production of 
cadastral maps and for production and issuance of registration information.
SCHEDULE 5 
Special Account
1.
For the purposes of this Schedule:
(a)
the term "eligible Categories" means Categories (1) through (5) 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 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 
to be withdrawn from the Credit Account and deposited into the Special Account 
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 until the aggregate amount of withdrawals from the 
Credit Account plus the total amount of all outstanding special commitments entered 
into by the Association pursuant to Section 5.02 of the General Conditions shall be 
equal to or exceed the equivalent of $1,500,000. 
2.
Payments out of the 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 Special 
Account has been duly opened, withdrawals of the Authorized Allocation and subsequent 
withdrawals to replenish the Special Account shall be made as follows:
(a)
For withdrawals of the Authorized Allocation, the Borrower shall furnish 
to the Association a request or requests for deposit into the 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 Special Account 
such amount or amounts as the Borrower shall have requested.
(b)
(i)
For replenishment of the Special Account, the Borrower shall 
furnish to the Association requests for deposit into the 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 Special Account such amount as the Borrower shall have 
requested and as shall have been shown by said documents and other 
evidence to have been paid out of the Special Account for eligible 
expenditures. 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 Special Account, the Borrower 
shall, at such time as the Association shall reasonably request, furnish to the 
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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 the 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 Account;
(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, minus the total amount of all outstanding special commitments entered into 
by the Association pursuant to Section 5.02 of the General Conditions shall equal the 
equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal 
from the 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 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 the 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 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 the Special Account shall be made until the 
Borrower has provided such evidence or made such deposit or refund, as the case may 
be.
(b)
If the Association shall have determined at any time that any amount 
outstanding in the 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 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 Account.
(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.