Соглашение между Российской Федерацией и международным банком реконструкции и развития о займе для финансирования проекта «Медицинское оборудование» (Loan NUMBER 4033 ru) [англ.]

(Заключено в г. Вашингтоне 27.08.1996)

LOAN AGREEMENT

(MEDICAL EQUIPMENT PROJECT) BETWEEN RUSSIAN FEDERATION AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

(Washington, 27.VIII.1996)

Agreement, dated August 27, 1996, between Russian Federation (the Borrower) and International Bank for Reconstruction and Development (the Bank).

Whereas the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Bank to assist in the financing of the Project; and

Whereas the Bank has agreed, on the basis, inter alia, of the foregoing, to extend the Loan to the Borrower upon the terms and conditions set forth in this Agreement;

Now therefore the parties hereto hereby agree as follows:

Section 1.01. The «General Conditions Applicable to Loan and Guarantee Agreements for Single Currency Loans» of the Bank, dated May 30, 1995, (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 have the respective meanings therein set forth and the following additional terms have the following meanings:

(a) «Special Account» means the account referred to in Section 2.02 (b) of this Agreement; and

(b) «Project Preparation Advance» means the project preparation advance granted by the Bank to the Borrower pursuant to two exchanges of letters dated August 2, 1995 and September 6, 1995 and dated March 4, 1996 and April 2, 1996 between the Borrower and the Bank;

(c) «MOHMI» means the Borrower's Ministry of Health and Medical Industry;

(d) «PPIU» means the Project Preparation and Implementation Unit, established and operating within the Borrower's Ministry of Finance pursuant to a Regulation signed by the Deputy Minister of Finance, the Deputy Minister of Economy and the Deputy Minister of Health and Medical Industry, dated March 15, 1996;

(e) «Working Group» means the Interministerial Working Group for the Establishment of the National Health Accounts System, established pursuant to the Order signed by the First Deputy Prime Minister, dated March 23, 1996 and headed by MOHMI;

(f) «Participating Oblast» means any oblast of the Borrower in whose territory health facilities are located which are included, under Part A of the Project; and

(g) «Participating Oblast Commitment» means the letter of commitment received by the Borrower, from each Participating Oblast according to the provisions of paragraph 2 of Schedule 5 to this Agreement.

Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Loan Agreement an amount equal to two hundred seventy million dollars (270,000,000 USD).

Section 2.02. (a) The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to this Agreement for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Loan.

(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 Bank, 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.

(c) Promptly after the Effective Date, the Bank shall, on behalf of the Borrower, withdraw from the Loan 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 June 30, 1999 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date.

Section 2.04. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one percent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time.

Section 2.05. (a) The Borrower shall pay interest on the principal amount of the Loan withdrawn and outstanding from time to time, at a rate for each Interest Period equal to LIBOR Base Rate plus LIBOR Total Spread.

(b) For the purposes of this Section:

(i) «Interest Period» means the initial period from and including the date of this Agreement to, but excluding, the first Interest Payment Date occurring thereafter, and after the initial period, each period from and including an Interest Payment Date to, but excluding the next following Interest Payment Date.

(ii) «Interest Payment Date» means any date specified in Section 2.06 of this Agreement.

(iii) «LIBOR Base Rate» means, for each Interest Period, the London interbank offered rate for six-month deposits in Dollars for value the first day of such Interest Period (or, in the case of the initial Interest Period, for value the Interest Payment Date occurring on or next preceding the first day of such Interest Period), as reasonably determined by the Bank and expressed as a percentage per annum.

(iv) «LIBOR Total Spread» means, for each Interest Period:

(A) one half of one percent (1/2 of 1%);

(B) minus (or plus) the weighted average margin, for such Interest Period, below (or above) the London inter- bank offered rates, or other reference rates, for six-month deposits, in respect of the Bank's outstanding borrowings or portions thereof allocated by the Bank to fund single currency loans or portions thereof made by it that include the Loan; as reasonably determined by the Bank and expressed as a percentage per annum.

(c) The Bank shall notify the Borrower of LIBOR Base Rate and LIBOR Total Spread for each Interest Period, promptly upon the determination thereof.

(d) Whenever, in light of changes in market practice affecting the determination of the interest rates referred to in this Section 2.05, the Bank determines that it is in the interest of its borrowers as a whole and of the Bank to apply a basis for determining the interest rates applicable to the Loan, the Bank may modify the basis for determining the interest rates applicable to the Loan upon not less than six (6) months' notice to the Borrower of the new basis. The basis shall become effective on the expiry of the notice period unless the Borrower notifies the Bank during said period of its objection thereto, in which case said modification shall not apply to the Loan.

Section 2.06. Interest and other charges shall be payable April 15 and October 15 in each year.

Section 2.07. 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 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 Part A of the Project through the PPIU and Part B, under the overall coordination of the PPIU, through the Working Group with due diligence and efficiency and in conformity with appropriate administrative, financial and public health 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 Bank shall otherwise agree, the Borrower shall cause the PPIU to carry out Part A of the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement.

Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods and consultants' services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement.

Section 3.03. For the purposes of Section 9.08 of the General Conditions and without limitation thereto, the Borrower shall:

(a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank 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 Bank, a plan for the future operation of the Project; and

(b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan.

Section 4.01. (a) The Borrower shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof.

(b) The Borrower shall:

(i) have the records and accounts referred to in paragraph (a) of this Section, including those for the Special Accounts for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank;

(ii) furnish to the Bank as soon as available, but in any case not later than six (6) months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and

(iii) furnish to the Bank such other information concerning said records and accounts and the audit thereof as the Bank shall from time to time reasonably request.

(c) For all expenditures with respect to which withdrawals from the Loan Account were made on the basis of statements of expenditure, the Borrower shall:

(i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures;

(ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the Loan Account was made. all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;

(iii) enable the Bank's representatives to examine such records; and

(iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Section 5.01. Pursuant to Section 6.02 (1) of the General Conditions, the following additional event is specified, namely, that a Participating Oblast has failed to comply with the provisions of the respective Participating Oblast Commitment.

Section 5.02. Pursuant to Section 7.01 (h) of the General Conditions, the following additional event is specified, namely that the event specified in Section 5.01 of this Agreement shall occur and shall continue for a period of 30 days after notice thereof shall have been given by the Bank to the Borrower.

Section 6.01. The date ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Section 7.01. The Minister of Finance or the Deputy Minister of Finance of the Borrower is designated as 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: Ministry of Finance Ilyinka Street 9 103097 Moscow Russian Federation Telex: 112008

For the Bank:
International Bank for
Reconstruction and Development
1818H Street, N.W.
Washington, D.C. 20433
United States of America

    Cable address:                                  Telex:
    INTBAFRAD                                       197688 (TRT),
    Washington, D.C.                                248423 (RCA),

                                                64145 (WUI) or
                                                82987 (FTCC)

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.

SCHEDULE 1

WITHDRAWAL OF THE PROCEEDS OF THE LOAN

1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expenditures for items so to be financed in each Category:

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 «medical equipment» means medical equipment, including spare parts and supplies financed out of the proceeds of the Loan and being subject to the applicable certification requirements of the institutes authorized for certification purposes;

(d) the term «operating cost of the PPIU» means expenditures on account of the Project of the PPIU for salaries, office accommodations, supplies and minor equipment, utilities, staff travel, and training; and

(e) the term «consolidation and forwarding services» means services pertaining to the provision of warehouse space, receipt and inspection of goods, insurance in the Borrower's territories and transport to health facilities included in the Project.

3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement.

4. The Bank may require, under such terms and conditions as the Bank shall specify to the Borrower, withdrawals from the Loan Account to be made on the basis of statements of expenditure for expenditures:

(i) under Category (1) under contracts for goods costing less than 300,000 USD equivalent;

(ii) under Category (3) under contracts for technical services and the employment of consulting firms costing less than 100,000 USD equivalent;

(iii) under Category (3) under contracts for the employment of individual consultants costing less than 50,000 USD equivalent; and

(iv) for operating cost of the PPIU under such terms and conditions as the Bank shall specify.

SCHEDULE 2

DESCRIPTION OF THE PROJECT

The objectives of the Project are to:

(i) increase the availability and range of services provided by primary and secondary health facilities in Participating Oblasts; and

(ii) improve the analytical framework of the health sector through the establishment of national health accounts.

The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Bank may agree upon from time to time to achieve such objectives:

Part A

Provision of medical equipment, related supplies, and spare parts and related training to selected primary (polyclinics, women's clinics and feldsher stations) and secondary (raion hospitals and maternity homes) health care facilities in about 34 oblasts to enable such facilities to provide primary and preventive health care and to diagnose and treat more effectively cardiovascular disease, trauma and cancer and to strengthen their prenatal care program.

Part B

Development and implementation of a system of national health accounts and provision of consultants services, study tours, computer equipment and software therefor.

The Project is expected to be completed by December 31, 1998.

SCHEDULE 3

AMORTIZATION SCHEDULE

<*> The figures in this column represent the amount in Dollars to be repaid, except as provided in Section 4.04 (d) of the General Conditions.

SCHEDULE 4

PROCUREMENT AND CONSULTANTS'SERVICES

Section I. PROCUREMENT OF GOODS AND TECHNICAL SERVICES

Goods shall be procured in accordance with the provisions of Section I of the «Guidelines for Procurement under IBRD Loans and IDA Credits» published by the Bank in January 1995 and revised in January 1996 (the Guidelines) and the following provisions of this Section, as applicable.

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) 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.

(b) Notification and Advertising

The invitation to prequalify or bid for each contract estimated to cost 10,000,000 USD equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines.

Specialized equipment, including endoscopic and ultrasonic medical equipment up to an aggregate amount not to exceed 19,400,000 USD equivalent, and consolidation and forwarding services, up to an aggregate amount of 13,500,000 USD equivalent, which the Bank agrees can only be obtained from a limited number of suppliers, regardless of the cost thereof, may be procured under contracts awarded in accordance with the provisions of paragraph 3.2 of the Guidelines.

2. National Competitive Bidding

Sets of specialized medical instruments estimated to cost less than 300,000 USD equivalent per contract, up to an aggregate amount not to exceed 3,400,000 USD equivalent, may be procured under contracts awarded in accordance with the provisions of paragraphs 3.3 and 3.4 of the Guidelines.

3. International and National Shopping

(a) Goods estimated to cost less than 300,000 USD equivalent per contract, up to an aggregate amount not to exceed 4,300,000 USD 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.

(b) Goods estimated to cost less than 50,000 USD equivalent per contract, up to an aggregate amount not to exceed 2,000,000 USD, may be procured under contract 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 which are of a proprietary nature and must be procured from a particular supplier may, with the Bank's prior agreement, up to an aggregate amount of 7,100,000 USD, be procured in accordance with the provisions of paragraph 3.7 of the Guidelines.

5. Procurement from UN Agencies

Medical equipment and supplies may be procured from UNICEF or other UN Agencies in accordance with the provisions of paragraph 3.9 of the Guidelines.

1. Procurement Planning

Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1.

2. Prior Review

With respect to each contract processed in accordance with Parts B, C.1, C.4 and C.5 of this Schedule and the first two contracts processed in accordance with Parts C.2 and C.3 (a) of this Schedule, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

3. Post Review

With respect to each contract not governed by paragraph 2 of this Part, the procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply.

Section II. EMPLOYMENT OF CONSULTANTS

1. Consultants' services shall be procured under contracts awarded in accordance with the provisions of the «Guidelines for the Use of Consultants by World Bank Borrowers and by The World Bank as Executing Agency» published by the Bank in August 1981 (the Consultant Guidelines). For complex, time-based assignments, such contracts shall be based on the standard form of contract for consultants' services issued by the Bank, with such modifications thereto as shall have been agreed by the Bank. Where no relevant standard contract documents have been issued by the Bank, other standard forms acceptable to the Bank shall be used.

2. Notwithstanding the provisions of paragraph 1 of this Section, the provisions of the Consultant Guidelines requiring prior Bank review or approval of budgets, short lists, selection procedures, letters of invitation, proposals, evaluation reports

and contracts, shall not apply to (a) contracts for the employment of consulting firms estimated to cost less than 100,000 USD equivalent each or (b) contracts for the employment of individual consultants estimated to cost less than 50,000 USD equivalent each. However, said exceptions to prior Bank review shall not apply to (a) the terms of reference for such contracts, (b) single-source selection of consulting firms, (c) assignments of a critical nature, as reasonably determined by the Bank, (d) amendments to contracts for the employment of consulting firms raising the contract value to 100,000 USD equivalent or above, or (e) amendments to contracts for the employment of individual consultants raising the contract value to 50,000 USD equivalent or above.

SCHEDULE 5

IMPLEMENTATION PROGRAM

1. During execution of the Project, the Borrower shall:

(i) maintain the PPIU with adequate authority to carry out its responsibilities under the Project; and

(ii) employ, at all times, a director as head of the PPIU with adequate qualifications and experience assisted by competent staff in adequate numbers.

2. The PPIU shall, in consultation with MOHMI and each Participating Oblast, establish the list of medical equipment and other goods to be provided under Part A of the Project, specify the training to be provided in relation to such equipment, and promptly inform the Bank prior to the initiation of procurement actions in accordance with the provisions of Schedule 4 of this Agreement in respect of any such goods or initiation of any such training.

3. The PPIU shall initiate procurement actions in accordance with the provisions of Schedule 4 of this Agreement in respect of health facilities in any Participating Oblast, only if the Borrower has received a letter of commitment (the Participating Oblast Commitment) from the respective Participating Oblast which shall be acceptable to the Bank and include the undertakings of the respective Participating Oblast to take all necessary measures to:

(a) assure that the medical equipment and supplies provided under the Project shall be installed at the intended facilities and be used exclusively for the purposes of the Project;

(b) ensure participation of the beneficiary health facilities in ordering equipment;

(c) provide additional clinical training for staff using the equipment provided under the Project, where needed;

(d) provide adequate resources for supplies needed to fully utilize the equipment provided under the Project after the initial stock has been consumed;

(e) contribute at least 10 percent of the Project costs applicable to the activities carried out in the respective Participating Oblast in counterpart funds and finance all applicable customs duties and taxes;

(f) appoint an oblast-level project coordinator to liaise with the PPIU; and

(g) submit periodic reports as requested by the PPIU) on the status of project implementation and utilization of equipment.

4. The Borrower shall take all necessary measures to assure that the institutes authorized for the certification of medical equipment shall review the requests from suppliers for certification of medical equipment and supplies financed out of the proceeds of the Loan on a priority basis and in conformity with a time frame agreed upon by the Borrower and the Bank.

SCHEDULE 6

SPECIAL ACCOUNT

1. For the purposes of this Schedule:

(a) the term «eligible Categories» means Categories (1) through (4) 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 Loan 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 1.5 million USD to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 3 (a) of this Schedule, provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to 500,000 USD until the aggregate amount of withdrawals from the Loan Account plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of 2.5 million USD.

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 Bank 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 Bank 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 Bank shall, on behalf of the Borrower, withdraw from the Loan 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 Bank requests for deposits into the Special Account at such intervals as the Bank shall specify.

(ii) Prior to or at the time of each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to 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 Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for eligible expenditures. All such deposits shall be withdrawn by the Bank from the Loan 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 Bank shall reasonably request, furnish to the Bank 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 Bank shall not be required to make further deposits into the Special Account:

(a) if, at any time, the Bank shall have determined that all further withdrawals should be made by the Borrower directly from the Loan 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 Bank, within the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of the records and accounts for the Special Account;

(c) if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to the provisions of Section 6.02 of the General Conditions; or

(d) once the total unwithdrawn amount of the Loan allocated to the eligible Categories, minus the total amount of all outstanding special commitments entered into by the Bank 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 Loan Account of the remaining unwithdrawn amount of the Loan allocated to the eligible Categories shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for eligible expenditures.

6. (a) If the Bank 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 Bank, the Borrower shall, promptly upon notice from the Bank:

(A) provide such additional evidence as the Bank may request; or

(B) deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment or the portion thereof not so eligible or justified. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be.

(b) If the Bank 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 Bank, refund to the Bank such outstanding amount.

(c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account.

(d) Refunds to the Bank made pursuant to paragraphs 6 (a), (b) and (c) of this Schedule shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the relevant provisions of this Agreement, including the General Conditions.