Public Disclosure Authorized
Public Disclosure Authorized
AN NUMBER 21 f7 CE
Loan Agreement
Public Disclosure Authorized
(Eighth Power Project)
between
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
and
Public Disclosure Authorized
CEYLON ELECTRICITY BOARD
Dated
/
, 1982
LOAN NUMBER 2187 CE
LOAN AGREEMENT
AGREEMENT, dated
, 1982, between
INTERNATIONAL BANK FOR RECON TRUCTION AND DEVELOPMENT (hereinafter called the Bank) and CEYLON ELECTRICITY BOARD (hereinafter
called the Borrower).
WHEREAS (A) the Borrower has requested the Bank to assist in
the financing of the foreign exchange cost of the Project
described in Schedule 2 to this Agreement by extending the Loan
as hereinafter provided;
(B) by an agreement of even date herewith (the Guarantee
Agreement) between the Democratic Socialist Republic of Sri Lanka
(the Guarantor) and the Bank, the Guarantor has agreed to
guarantee the Loan and to undertake certain obligations with
respect to the Project;
WHEREAS the Bank has agreed, on the basis inter alia of the
foregoing, to extend the Loan to the Borrower upon the terms and
conditions hereinafter set forth;
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. The parties to this Agreement accept all the
provisions of the General Conditions Applicable to Loan and
Guarantee Agreements of the Bank, dated October 27, 1980, with
the same force and effect as if they were fully set forth herein
(said General Conditions Applicable to Loan and Guarantee Agreements
of
the
Bank
being hereinafter
called the
General
Conditions).
Section 1.02. Wherever used in this Agreement, 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)
"Ceylon
Electricity
Board
Act"
means
Electricity Board Act, No. 17 of 1969, as amended;
the
Ceylon
"Joint Scheme" means any joint scheme for the genera(b)
tion of electrical energy, the irrigation of land, the control of
floods or other like purposes as referred to in Section 12 (L) of
the Ceylon Electricity Board Act;
authorities
local
the
means
authorities"
(c) "local
21
carrying on electrical undertakings as referred to in Section
of the Ceylon Electricity Board Act; and
(d) "Rupees"
currency.
and
"Rs"
means
Rupees
in
the
Guarantor's
ARTICLE II
The Loan
Section 2.01. The Bank agrees to lend to the Borrower, on
the terms and conditions in the Loan Agreement set forth or
referred to, an amount in various currencies equivalent to
forty-two million seven hundred thousand dollars ($42,700,000).
Section 2.02. The amount of the Loan may be withdrawn from
the Loan Account in accordance with the provisions of Schedule 1
to this Agreement, as such Schedule may be amended from time to
time by agreement between the Borrower and the Bank, for
expenditures made (or, if the Bank shall so agree, to be made) in
respect of the reasonable cost of goods and services required for
the Project described in Schedule 2 to this Agreement and to be
financed out of the proceeds of the Loan.
Section 2.03. Except as the Bank shall otherwise agree, procurement of the goods and civil works required for the Project
and to be financed out of the proceeds of the Loan shall be
governed by the provisions of Schedule 4 to this Agreement.
Section 2.04. The Closing Date shall be March 31, 1985 or
The Bank shall
such later date as the Bank shall establish.
of such later
Guarantor
the
and
Borrower
the
notify
promptly
date.
Section 2.05. Not later than the Effective Date, the
Borrower shall pay to the Bank a fee equivalent to six hundred
thirty one thousand thirty four dollars ($631,034). The fee shall
be payable in such currency or currencies as the Bank shall
specify. In the event that the Bank shall not have received full
-3payment of the fee by the Effective Date, the Bank shall, on
behalf of the Borrower, withdraw from the Lo-n Account and pay to
itself the amount required for the full payment of the fee in the
currency or currencies specified for the purpose.
Section 2.06. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of
1%) per annum on the principal amount of the Loan not withdrawn
from time to time.
Section 2.07. The Borrower shall pay interest at the rate of
eleven and three-fifths per cent (11-3/5%) per annum on the
principal amount of the Loan withdrawn and outstanding from time
to time.
Section 2.08. Interest and other charges shall
semiannually on March I and Septrtmber 1 in each year.
be
payable
Section 2.09. The Borrower shall repay the principal amount
of the Loan in accordance with the amortization schedule set
forth in Schedule 3 to this Agreement.
Section 2.10. The Borrower shall pay to
guarantee fee provided for in Section 3.05
Agreement.
the Guarantor the
of the Guarantee
ARTICLE III
Execution of the Project
Section 3.01. The Borrower shall carry out the Project with
due diligence and efficiency and in conformity with appropriate
administrative,
financial,
engineering
and
public
utility
practices.
Section 3.02. In order to assist the Borrower in carrying
out the Project, the Borrower shall employ consultants whose
selection, qualifications, experience and terms and conditions of
employment shall be satisfactory to the Bank in accordance with
the principles and procedures described in the "Guidelines for
the Use of Consultants by World Bank Borrowers and by the World
Bank as Executing Agency" published by the Bank in August 1981.
Section 3.03. (a) The Borrower undertakes to insure, or make
adequate provision for the insurance of, the imported goods to be
-4-
financed out of the proceeds of the
to the acquisition, transportation
place of use or installation, and
nity shall be payable in a currency
to replace or repair such goods.
Loan against hazards incident
and delivery thereof to the
for such insurance any indemfreely usable by the Borrower
(b) The Borrower shall cause all goods and services
financed out of the proceeds of the Loan to be used exclusively
for the purposes of the Project.
Section 3.04. (a) The Borrower shall furnish to the Bank,
promptly upon their prepa ation, the plans, specifications,
reports, contract documents and construction and procurement
schedules for the Project, and any material modifications thereof
or additions thereto, in such detail as the Bank shall reasonably
request.
(b) The Borrower shall: (i) maintain records and procedures
adequate to record and monitor the progress of the Project
to
(including its cost anu the benefits to be derived from it),
identify the goods and services financed out of the proceeds of
enable
the Loan, and to disclose their use in the Project; (ii)
the Bank's representatives to visit the facilities and construction sites included in the Project and to examine the goods
financed out of the proceeds of the Loan and any relevant records
furnish to the Bank at regular intervals
and documents; and (iii)
all such information as the Bank shall reasonably request concerning the Project, its cost and, where appropriate, the benethe expenditure of the proceeds of
to be derived from it,
fits
the Loan and the goods and services financed out of the proceeds.
(c) Upon the award by the Borrower of any contract for
goods, works or services to be financed out of the proceeds of
the Loan, the Bank may publish a description thereof, the name
and nationality of the party to whom the contract was awarded and
the contract price.
(d) The Borrower shall enable the Bank's representatives to
examine all plants, installations, sites, works, buildings,
property and equipment of the Borrower and any relevant records
and documents.
event
(e)
Promptly after completion of the Project, but in any
not later than six months after the Closing Date or such
-5-
later date as may be agreed for this purpose between the Borrower
and the Bank, the Borrower shall prepare and furnish to the Bank
a report, of such scope and in such detail as the Bank shall
reasonably request, on the execution and initial operation of the
Project, its cost and the benefits derived and to be derived from
it, the performance by the Borrower and the Bank of their
respective obligations under the Loan Agreement and the accomplishment of the purposes of the Loan.
Section 3.05. The Berrower shall take all such action as
shall be necessary to acquire as and when needed all such land
and rights in respect of land as shall be required for carrying
out the Project.
ARTICLE IV
Management and Operations of the Borrower
Section 4.01. The Borrower shall take out and maintain with
responsible insurers, or make other provisions satisfactory to
the Bank for, insurance against such risks and in such amounts as
shall be consistent with appropriate practice.
Section 4.02. (a) The Borrower shall at all times maintain
its corporate existence and the right to carry on its operations
and take all steps necessary to acquire, maintain and renew all
rights, powers, privileges and franchises which are necessary or
useful in the conduct of its business.
(b) The Borrower shall at all times manage its affairs,
plan its fliture expansion and carry on its operations, all in
accordance with sound business,
financial and public utility
practices, under the supervision of experienced and competent
management, and with the assistance of adequate, qualified and
experienced staff.
(c)
The Borrower shall at all times operate and maintain
its plants, machinery, equipment and other property, and make all
necessary repairs and renewals thereof, in accordance with sound
engineering, and public utility practices.
(d)
Except in the normal course of business, the Borrower
shall not sell, lease, transfer or otherwise dispose of any of
its property or assets which shall be required for the efficient
operation of its business.
-6Section 4.03. The Borrower shall furnish to the Bank for its
comments, any proposal for major changes in the Borrower's organizational structure, prior to implementing such proposals.
Section 4.04. The Borrower shall implement a staff training
program satisfactory to the Bank and the Borrower in accordance
with a timetable satisfactory to the Bank and the Borrower.
Section 4.05. In the event that the electrical undertakings
carried on by local authorities are to be transferred to the
Borrower, the Borrower shall, prior to the date of transfer,
prepare and agree with the Bank on a program and terms for such
transfer.
Section 4.06. (a) The Borrower shall, by December 31, 1982
furnish through the Guarantor to the Bank for its review a longterm power development plan.
(b) The Borrower shall, commencing by December 31, 1983 and
by each December 31 thereafter, furnish through the Guarantor to
the Bank for its review an updated version of the long-term power
development plan.
(c) The Borrower shall implement the long-term power develand the
opment plan as agreed between the Guarantor, the Bank
Borrower.
ARTICLE V
Financial Covenants
Section 5.01. The Borrower shall maintain records adequate
to reflect in accordance with consistently maintained appropriate
accounting practices its operations and financial condition.
accounts and
Section 5.02. The Borrower shall: (i) have its
income and
of
statements
sheets,
(balance
statements
financial
in
audited,
year
fiscal
each
for
statements)
expenses and related
consistently
principles
auditing
accordance with appropriate
applied, by independent auditors acceptable to the Bank; (ii)
furnish to the Bank as soon as available, but in any case not
later than: (A) four months after the end of each such year,
financial statements for such year; and
certified copies of its
(B) ten months after the end of each such year, the report of
such audit by said auditors, of such scope and in such detail as
-7-
the Bank shall have reasonably requested; and (iii) furnish to
the Bank such other infcrmation concerning the accounts and
financial statements of the Borrower and the audit thereof as the
Bank shall from time to time reasonably request.
Section 5.03. (a) The Borrower represents that at the date
of this Agreement no lien exists on any of its assets as security
for any debt except as otherwise currently reported to the Bank
or stated in writing.
(b)
The Borrower undertakes that, except as the Bank shall
otherwise agree: (i) if the Borrower shall create any lien on any
of its
assets as security for any debt, such lien will equally
and ratably secure the payment of the principal of, and interest
and other charges on, the Loan, and in the creation of any such
lien express provision will be made to that effect, at no cost to
the Bank; and (ii)
if any statutory lien shall be created on any
assets of the Borrower as security for any debt, the Borrower
shall grant, at no cost to the Bank, an equivalent lien
satisfactory to the Bank to secure the payment of the principal
of, and interest and other charges on, the Loan; provided,
however, that the foregoing provisions of this paragraph shall
not apply to: (A) any lien created on property, at the time
of
purchase thereof, solely as security for the payment of the
purchase price of such property; or (B) any lien arising in the
ordinary course of banking transactions and securing a debt
maturing not more than one year after the date on which it is
originally incurred.
Section 5.04. Except as the Bank shall otherwise agree, the
Borrower shall not incur any debt unless its net revenues for the
fiscal year immediately preceeding such incurrence or for a later
twelve-month period ended prior to such incurrence, whichever is
the greater, shall be not less than 1.25 times the maximum debt
service requirements for any succeeding fiscal year on all debt
including the debt to be incurred.
For the purposes of this
Section:
(a) the term "debt" means all debt of the Borrower, including debt for the service of which the Borrower is responsible,
maturing by its terms more than one year after the date on which
it is originally incurred;
(b) debt shall be deemed to be incurred on the date of
execution and delivery of a contract, loan agreement or other
instrument providing for such debt;
-8the term "net revenues" means gross revenues from all
(c)
to take account of the Borrower's tariffs in
adjusted
sources,
effect at the time of the incurrence of debt even though they
were not in effect during the fiscal year or twelve-month period
to which such revenues relate, less all expenses of operation and
maintenance in connection with the generation, transmission and
distribution of electricity, administration, and taxes, if any,
but before deduction of provision for depreciation of assets,
interest and other charges on debt;
the term "debt service requirements" means the aggre(d)
gate amount of amortization (including sinking fund allocations,
if any), of, and interest and other charges on debt; and
(e) whenever for the purposes of this Section, or of
Section 5.05 hereof, it shall be necessary to value, in terms of
the currency of the Guarantor, debt payable in another currency
such valuation shall be made on the basis of the prevailI.ng
lawful rate of exchange at which such other currency is, at the
time of such valuation, obtainable for the purposes of servicing
such debt, or, if such other currency is not so obtainable, at
such rate of exchange as shall be reasonably determined by the
Bank; such valuation shall exclude any amount to which the
Guarantor may be entitled or liable in accordance with Section 42
(6) of the Ceylon Electricity Board Act.
Section 5.05. (a) Except as the Bank shall otherwise agree,
the Borrower shall before the start of each fiscal year review,
and adjust if necessary, its tariffs, to provide sufficient
revenue to cover operating expenses including taxes, if any, and
straight-line depreciation, and to produce an annual return on
the current value of its net fixed assets in service of eight per
cent (8%) or such higher return as may be agreed upon between the
Guarantor, the Bank and the Borrower.
Prior to the payment to the Guarantor, of any dividend
(b)
on the share capital of the Borrower, including any dividend
referred to in Section 39 (B) of the Ceylon Electricity Board
Act, or to the making of any other payment or distribution to the
Guarantor in respect of any such year, the Borrower, out of its
net income, shall satisfy, or make due provision for the
satisfaction of, not less than 30% of the capital expenditures
incurred in respect of such year, after adding thereto or
deducting therefrom the amount of any shortfall or excess in the
amount so satisfied or provided for in respect of the immediately
-9preceding
fiscal year below or above
expenditures incurred in respect thereof.
(c)
30%
of
the
capital
For the purposes of this Section:
(i)
(ii)
(iii)
the annual return shall be calculated by relating
net income before intereet and other charges on
debt for that year to the average of the current
value of net fixed assets in service at the
beginning and at the end of that year;
the term "current value of net fixed assets" means
the gross value of fixed assets as initially
revalued in accordance with the valuation study
provided for in Part V of Schedule 1 of the Loan
Agreement between the Bank and the Borrower dated
July 28, 1969 and thereafter as annually reviewed
and revalued from time to time, on the basis of
appropriate methods of valuation acceptable to the
Bank, less the amounts accumulated in respect of:
(1)
depreciation of assets (as so revalued);
and
(2)
consumers' contributions or other contributions to capital expenditures all
in accordance with proper accounting
principles consistently applied;
the term "net income" means
11 revenues of
Borrower
except
income
fr m
investments
directly related to its operations, less
operating expenses;
the
not
all
(iv)
the term "operating expenses" means all expenses
of operation and maintenance in connection with
the generation, transmission and distribution of
electricity, and
of
administration, including
adeq,ate provision for depreciation, and for
taxes,
if
any,
but
excluding provision
for
interest and other charges on debt;
(v)
the term "capital expenditures" shall mean all
expenditures, including interest during construction but excluding operating expenses, incurred in
-
10
-
connection with the generation, transmission and
distribution of electricity either:
(A)
(B)
(vi)
by the Borrower; or
by any Government Department or body for the
purpose of each Joint Scheme entered into by
such Department or body as referred to in
Section 12 (L) of the Ceylon Electricity
Board Act; and
the term "debt" and "debt service requirements"
respectively set forth in
have the meanings
Section 5.04 of this Agreement.
Section 5.06. The Borrower shall ensure that as at the last
working day of each month the aggregate amount due to it in
meters
respect of electricity supplied by the Borrower for which
Section
shall have been read (other than amounts disputed under
55 of the Ceylon Electricity Board Act and any amounts duly
written off in the books of the Borrower) shall not exceed the
of
aggregate amount of billings issued by the Borrower in respect
on
earlier,
if
or,
day
such
on
expiring
the period of 3 months
is
billings
of
amount
aggregate
such
which
at
as
the latest date
Borrower.
known to the
Section 5.07. The Borrower shall, with regard to its
recommendations
agreed
the
implement
continue to
tariffs,
referred to in Section 4.06 (ii) of the Priject Agreement (Sixth
Power Project) between the Association and the Borrower dated
September 24, 1980.
Section 5.08. The Borrower shall continue to maintain its
inventories at levels satisfactory to the Guarantor and the Bank.
ARTICLE VI
Remedies of the Bank
of the
Section 6.01. For the purposes of Section 6.(
specified
are
events
General Conditions, the following additional
pursuant to paragraph (k) thereof:
The Guarantor or any other authority having jurisdic(a)
tion shall have taken any action for the dissolution or disestablishment of the Borrower or for the suspension of its operations.
-
11
-
(b) The Ceylon Electricity Board Act shall have been
amended, suspended, abrogated, repealed oi waived in such a way
as to materially and adversely affect t7e ability of the Borrower
to carry out the covenants, agreements and obligations set forth
in this Agreement.
(c) An extraordinary situation shall have arisen which
shall make it improbable that the Borrower will be able to
perform its obligations under this Agreement.
Section 6.02. For the purposes of Section 7.01 of the
General Conditions, the following additional events are specified
pursuant to paragraph (h) thereof, namely that any events specified in paragraphs (a) or (b) of Section 6.01 of this Agreement
shall occur.
ARTICLE VII
Termination
AMAOGuA.I
Section 7.01. The date
/6pl9g L , is hereby specified for the purpose of Section 12.04 of the General Conditions.
ARTICLE VIII
Addresses
Section 8.01. The following addresses are specified for the
purposes of Section 11.01 of the General Conditions:
For the Bank:
International Bank for
Reconstruction and Development
1818 H Street N.W.
Washington, D.C. 20433
United States of America
Cable address:
INTBAFRAD
Washington, D.C.
Telex:
440098 (ITT)
248423 (RCA) or
64145 (WUI)
-
12
-
For the Borrower:
Ceylon Electricity Board
P.O. Box 540
Colombo
Sri Lanka
Cable address:
Telex:
21368 KILOWATTS CE
KILOWATTS
Colombo
IN WITNESS WHEREOF, the parties hereto, acting through their
representatives thereunto duly authorized, have caused this
Agreement to be signed in their respective names in the District
of Colombia, United States of America, as of the day and year
first above written.
INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT
By
Regional Vice President
South Asia
CEYLON ELECTRICITY BOARD
By
Authorized Representative
- 13
SCEDULE 1
Withdrawal of the Proceeds of the Loan
1.
The table below sets forth the Categories of imported items
to be financed out of the proceeds of the Loan and the allocation
of the amounts of the Loan to each Category:
Amount of the
Loan Allocated
(Expressed in
Dollar Equivalent)
Category
(1)
Equipment, materials
and installation for
the 80 megawatt
diesel station
38,500,000
(2) Technical
1,500,000
services
(3) Fee
631,034
(4) Unallocated
2,068,966
TOTAL
2.
Notwithstanding the provisions of
withdrawals shall be made in respect of:
42,700,000
paragraph
1
above,
no
(a) expenditures in the currency of the Guarantor or for
goods or services supplied from the territory of the Guarantor;
(b) payments made for expenditures prior to the date of
this Agreement, except that withdrawals, in an aggregate amount
not exceeding the equivalent of $4,200,000, may be made on
account of payments made for such expenditures before that date
but after April 1, 1982; and
(c)
payments for taxes levied by, or in the territory of,
the Guarantor on goods or services, or on the importation,
manufacture, procurement or supply thereof.
- 14 -
3.
Notwithstanding the allocation of an amount of the Loan set
forth in the second column of the table in paragraph 1 above, if
the Bank has reasonably estimated that the amount of the Loan
then allocated to any Category will be insufficient to finance
all expenditures in that Category, the Bank may, by notice to the
Borrower, reallocate to such Category, to the extent required to
meet the estimated shortfall, proceeds of the Loan which are then
allocated to another Category and which in the opinion of the
Bank are not needed to meet other expenditures.
4.
If the Bank shall have reasonably determined that the procurement of any item in any Category is inconsistent with the
procedures set forth or referred to in this Agreement, no
expenditures for such item shall be financed out of the proceeds
of the Loan and the Bank may, without in any way restricting or
limiting any other right, power or remedy of the Bank under the
Loan Agreement, by notice to the Borrower, cancel such amount of
the Loan as, in the Bank's reasonable opinion, represents the
amount of such expenditures which would otherwise have been
eligible for financing out of the proceeds of the Loan.
-
15 -
SCHEDULE 2
Description of the Project
The Project consists of the continuing development
electricity generating system in Sri Lanka and comprises:
1.
The development of an 80 megawatt
located in the outskirts of Colombo.
2.
Technical services,
including engineering
detailed design and implementation.
diesel
power
of
the
station
services
for
The Project is expected to be completed by March 31, 1984.
-
16 -
S(BIEDULE 3
Amortization Schedule
Date Payment Due
Payment of Principal
(expressed in dollars)*
On each March 1 and September 1
beginning March 1, 1985
March 1, 2002
through
On September 1, 2002
*
The figures in this column represent
determined as of the respective dates
General Conditions, Section 3.04.
1,185,000
1,225,000
dollar equivalents
of withdrawal; see
-17Premiums on Prepayment
The following percentages are specified as the premiums
payable on repayment in advance of maturity of any portion of the
principal amount of the Loan pursuant to Section 3.04 (b) of the
General Conditions:
Time of Prepayment
Premium
Not more than three years
before maturity
1.75%
More than three years but
not more than six years
before maturity
3.50%
More than six years but
not more than eleven years
before maturity
6.40%
More than eleven years but
not more than sixteen years
before maturity
9.30%
More than sixteen years but
not more than eighteen years
before maturity
10.45%
More than eighteen years
before maturity
11.60%
-
18
-
SCHEDULE 4
Procurement
A.
International Competitive Bidding
Goods and civil works shall be procured under contracts
1.
awarded in accordance with procedures consistent with those set
forth in the current edition of the "Guidelines for Procurement
under World Bank Loans and IDA Credits" published by the Bank in
March 1977 (hereinafter called the Guidelines), on the basis of
international competitive bidding as described in Part A of the
Guidelines.
Supply and erection of the 80 megawatt diesel power station
2.
a single
under
carried out
shall be
Project
the
under
contract.
responsibility
For the purpose of evaluation and comparison of bids for the
3.
supply of goods to be procured on the basis of international competitive bidding: (i) bidders shall be required to state in their
bid the c.i.f. (port of entry) price for the imported goods, or
the ex-factory price or off-the-shelf price of other goods
offered in such bid; (ii) customs duties and other import taxes
levied in connection with the importation, or the sales and
similar taxes levied in connection with the sale or delivery,
pursuant to the bid, of the goods shall not be taken into account
in the evaluation of the bids; and (iii) the cost of inland
freight and other expenditures incidental to the delivery of the
goods to the place of their use or installation shall be
included.
B.
Review of Procurement Decisions by the Bank
Review of invitations
1.
final contract:
to bid
and
of
proposed
With respect to the single contract referred
of this Schedule:
(a) After bids have been received
Borrower shall, before a final decision on
inform the Bank of the name of the bidder to
award the contract and shall furnish to the
time for its review, a detailed report on
awards
to in
and
Part A.3
and evaluated, the
the award is made,
which it intends to
Bank, in sufficient
the evaluation and
-
19
-
comparison of the bids received, together with the recommendations for award of the Borrower and such other information as the
Bank shall reasonably request. The Bank shall, if it determines
that the intended award would be inconsistent with the Guidelines
or this Schedule, promptly inform the Borrower and state the
reasons for such determination.
a
(b) The terms and conditions of the contract shall not,
without the Bank's concurrence, materially differ from those on
which bids were asked or prequalification was invited.
(c)
Two conformed copies of the contract shall be furnished
to the Bank promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds
from the Loan Account in respect of such contract.
2.
Before agreeing
o any material modification or waiver of
the terms and conditi- ts of a contract, or granting an extension
of the stipulated time for performance of such contract, or
issuing any change order under such contract (except in cases of
extreme urgency) which would increase the cost of the contract by
more than 1% of the original. price, the Borrower shall inform the
Bank of the proposed modification, waiver, extension or change
order and the reasons therefor. The Bank, if it determines that
the proposal would be inconsistent with the provisions of this
Agreement, shall promptly inform the Borrower and state the
reasons for its determination.
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
CERTIFICATE
I hereby certify that the foregoing is a true
copy of the original in the archives of the International Bank for Reconstruction and Development.
In witness whereof I have signed this Certificate and affixed the Seal of the Bank thereunto
this
day of
4
1
, 198
.
FOR SECRETARY