Common use of Effective Date; Termination Clause in Contracts

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions: (a) the terms of reference, the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the Bank; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems; (c) a manual, satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties thereto. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) the Loan has been validly registered by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorized, and are legally binding upon Recife and Olinda, respectively, in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their terms. Section 6.03. The date October 21, 2003, is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan this Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) a Project Agreement has been executed on behalf of the Association and an Entity on terms of reference, and conditions satisfactory to the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankAssociation; (b) for the financial management systems Entity referred to in Sections 4.01 and 4.03 paragraph (a) of this Section 6.01: (i) a Subsidiary Credit Agreement and in Section 3.01 has been executed on behalf of the Recife Project Agreement Borrower and said Entity, on terms and conditions satisfactory to the Olinda Project Agreement have Association; and (ii) the Program Manual, satisfactory to the Association, has been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsadopted by said Entity; (c) the School Grants Evaluation Board and the School Grants Quality Assurance Team have been established by the Federation and Republika Srpska, respectively, in a manual, manner and under terms of reference satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andAssociation; (d) the Subsidiary AgreementsProject Coordination Secretariat has been established by the Minister of Civil Affairs, the CONDEPE/FIDEM Agreement and the COMPESA Agreement a Grants coordinator and an education finance coordinator have been entered into between hired, and an individual consultant responsible for Project procurement and an individual consultant responsible for Project financial management have been contracted, to form part of the respective parties theretoProject Coordination Secretariat; and (e) the Association has completed satisfactorily its financial management assessment of the Project. Section 6.02. The following are specified as additional matters, within with the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Entity concerned and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, on said Entity in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Credit Agreement and the COMPESA Agreement have referred to in Section 6.01 (b) (i) has been duly authorized, authorized or ratified by and are is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, said Entity in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Article III of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty (20) years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms Subsidiary Financing Agreement has been executed on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the Bank▇▇▇▇▇▇; (b) the financial management systems Escrow Account has been opened; (c) the Borrower has employed, with respect to Part A of the Project, the auditors referred to in Sections Section 4.01 and 4.03 of this Agreement, acceptable to the Association; (d) ▇▇▇▇▇▇ has employed, with respect to Part B of the Project, the auditors referred to in Section 4.01 of this Agreement and in Section 3.01 4.01 of the Recife Project Agreement and Agreement, acceptable to the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems;Association; and (ce) the Borrower has submitted to the Association: (i) a manualdetailed action plan, satisfactory to the BankAssociation, has been issued by CONDEPE/FIDEM for the restructuring of KPLC; and (ii) a public statement, satisfactory to the Association, consistent with the policies and procedures above-mentioned action plan, outlining the Borrower’s plan for the carrying out restructuring of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties theretoKPLC. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankKenGen and KPLC and is legally binding upon KenGen and KPLC in accordance with its terms; (b) that the Recife Project Subsidiary Financing Agreement and the Olinda Project Agreement have has been duly authorized, authorized or ratified by the Borrower and are KenGen and is legally binding upon Recife the Borrower and Olinda, respectively, KenGen in accordance with their its terms; and (c) that the CONDEPE/FIDEM Agreement and the COMPESA Agreement have Contractual Implementation Framework has been duly authorizedauthorized or ratified by the Borrower, KenGen or KPLC as the case may be and are is legally binding upon CONDEPE/FIDEM and COMPESA, respectively, them in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Section 4.01 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.017.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms of referenceSubsidiary Administration Agreement has been entered into between the Borrower and SIF; (b) SIF has established an accounting system acceptable to the Association; (c) SIF By-laws and SIF Operational Procedures Guide, the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 1.02 (j) and (k) of this Agreement, have been presented to, adopted by SIF and found are satisfactory by, to the BankAssociation; (bd) SIF has furnished to the financial management systems referred to in Sections 4.01 and 4.03 Association an action plan covering the first twelve-months’ period of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems; (c) a manualits operations, satisfactory to the BankAssociation; (e) SIF has furnished to the Association a model Subproject Agreement, has been issued by CONDEPE/FIDEM with including separate provisions for SA Subprojects, SI Subprojects and EI Subprojects, acceptable to the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)Association; and (df) the Subsidiary AgreementsProject management consultant, the CONDEPE/FIDEM Agreement referred to in Section 3.03 of this Agreement, has been recruited and the COMPESA Agreement have been entered into between the respective parties theretohas assumed his functions. Section 6.027.02. The following are is specified as an additional mattersmatter, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) Association, namely, that the Loan Subsidiary Administration Agreement has been validly registered by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorizedauthorized or ratified by, and are is legally binding upon Recife upon, the Borrower and Olinda, respectively, SIF in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their its terms. Section 6.037.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 7.04. The obligations of the Borrower under Articles IV and V of this Agreement and the provisions of paragraph (c) of Section 6.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms Convention has been executed on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankFID; (b) the Manual of Procedures, satisfactory to the Borrower and the Association, has been adopted by FID; (c) accounting and financial management systems systems, satisfactory to the Association, have been set up by the BPS for Parts A.2, B and C of the Project and by FID for Part A.1 of the Project; (d) the auditors referred to in Sections Section 4.01 and 4.03 (b) of this Agreement and in Section 3.01 4.01 (b) of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff appointed for a period of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsthree years; (ce) a manual, satisfactory the Borrower has made the initial contributions into the two accounts referred to in Section 3.01 (e) of this Agreement in accordance with the Bank, provisions of such Section; (f) the monitoring and evaluation specialist at the national level has been issued employed by CONDEPE/FIDEM the BPS in accordance with the policies and procedures for the carrying out provisions of the Project, including, inter alia, the roles and responsibilities Section II of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications Schedule 3 to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)this Agreement; and (dg) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement executive director of FID and the COMPESA Agreement regional directors for FID offices in the Provinces of Antananarivo and Toliary have been entered into between the respective parties theretoappointed. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation, that: (a) the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankFID and is legally binding upon FID in accordance with its terms; (b) the Recife Project Agreement and the Olinda Project Agreement have Convention has been duly authorized, authorized or ratified by the Borrower and are FID and is legally binding upon Recife the Borrower and Olinda, respectively, FID in accordance with their its terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have Manual of Procedures has been duly authorized, approved by FID and are is legally binding upon CONDEPE/FIDEM and COMPESA, respectively, FID in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Sec- tion 4.01 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.017.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Financing Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms of reference, the short-list of firms Project Account has been opened and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankInitial Deposit deposited therein; (b) the Borrower and EEC each have established an adequate financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have been establishedsystem, and adequate capacity to produce FMRs, in form and substance satisfactory to the relevant staff Association, to ensure proper accounting and monitoring of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsProject funds; (c) the Borrower has adopted a manualFinancial Management Manual, in form and substance satisfactory to the BankAssociation; (d) EEC has issued the request for proposal for selection of the independent auditors referred to in Section 4.01 of this Agreement, has been issued by CONDEPE/FIDEM in form and substance satisfactory to the Association and in accordance with the policies provisions of Section III of Schedule 3 to this Agreement; (e) the Borrower and procedures for EEC have executed the carrying out Subsidiary Financing Agreement, in form and substance satisfactory to the Association; (f) EEC has appointed an accountant, having terms of reference and qualifications satisfactory to the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)Association; and (dg) the Subsidiary Agreements, Borrower has caused EEC to submit its 2003 audited financial statements to the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties theretoAssociation. Section 6.027.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorizedEEC, and are is legally binding upon Recife and Olinda, respectively, EEC in accordance with their its terms; and (c) and that the CONDEPE/FIDEM Subsidiary Financing Agreement and the COMPESA Agreement have has been duly authorized, authorized or ratified by the Borrower and are EEC and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, in EEC accordance with their its terms. Section 6.037.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.017.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms FASP Convention, Seminars Fund Convention and MMF Convention have each been duly signed and delivered on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankFASP; (b) the financial management systems CRC Protocol of Agreement referred to in Sections 4.01 and 4.03 paragraph 4 of Schedule 4 to this Agreement has been duly signed and in Section 3.01 delivered on behalf of the Recife Project Agreement FASP and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsCRC; (c) a manual, satisfactory to the Bank, Procedures Manual has been issued duly approved by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA Borrower and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding proceduresAssociation, and indicators to measure adopted by the progress of the Project (the Operational Manual); andFASP; (d) the Subsidiary AgreementsImplementation Plan has been duly approved by the Association, and adopted by the CONDEPE/FIDEM Agreement Borrower; and (e) the Project Account has been duly opened, and the COMPESA Agreement have been entered into between the respective parties theretoinitial amount of $50,000 equivalent deposited therein. Section 6.027.02. The following are is specified as an additional mattersmatter, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) Association: namely, that the Loan has FASP Convention, Seminars Fund Convention and MMF Convention have each been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Borrower and the Olinda Project Agreement have been duly authorizedFASP, and are legally binding upon Recife the Borrower and Olinda, respectively, FASP in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their respective terms. Section 6.037.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 7.04. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which this Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.017.01. The following events are specified as additional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions: (a) the terms of reference, the short-list of firms that the: (i) INIA Agreement; (ii) Research Agreements; and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement(iii) Convenio, have been presented to, duly executed and found satisfactory by, delivered by the Bankrespective parties thereto; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement that MGAP, MTOP and the Olinda Project Agreement Executing Unit, have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems; (c) a manualadopted accounting procedures, satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out maintenance of the records and accounts referred to in Section 4.01 (a)(i) of this Agreement; (c) that INIA has adopted accounting procedures, satisfactory to the Bank, for the maintenance of the records and accounts referred to in Section 4.01 (a)(ii) of this Agreement; (d) that the Borrower has duly issued a decree which authorizes it to use special procedures to transfer to the User Groups the use, administration and maintenance of the irrigation and drainage schemes referred to under Part B.1 (a) of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under ; (e) that the Project including environmental specifications Manual has been approved by the Borrower in terms satisfactory to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)Bank; and (df) that the Subsidiary Agreements, Project Account has been opened under terms and conditions satisfactory to the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties theretoBank. Section 6.027.02. The following are specified as additional matters, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) that the Loan INIA Agreement has been validly registered by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorizedauthorized or ratified by, and are is legally binding upon Recife and Olinda, respectively, the respective parties to such agreement in accordance with their its terms; and (cb) that the CONDEPE/FIDEM decree referred to in Section 7.01 (d) of this Agreement and the COMPESA Agreement have has been duly authorized, issued and are legally binding upon CONDEPE/FIDEM is in full force and COMPESA, respectively, in accordance with their termseffect. Section 6.037.03. The date October 21June 2, 2003, 1994 is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms Subsidiary Loan Agreement has been executed on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankSOLIMA; (b) the financial management systems Project coordinator referred to in Sections 4.01 and 4.03 paragraph 1 of Schedule 4 to this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have has been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsappointed; (c) a manualthe Project manager, satisfactory the mechanical engineer, the accountant and the engineering consultant have been employed, in accordance with the provisions of paragraph 1 of the Schedule to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)Agreement; and (d) [Deleted] (e) standard bidding documents for the Subsidiary Agreementsprocurement of crude oil, acceptable to the CONDEPE/FIDEM Agreement and the COMPESA Agreement Association, have been entered into between adopted by the respective parties theretoBorrower and SOLIMA. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankSOLIMA and is legally binding upon SOLIMA in accordance with its terms; (b) that the Recife Project Subsidiary Loan Agreement and the Olinda Project Agreement have has been duly authorized, authorized or ratified by the Borrower and are SOLIMA and is legally binding upon Recife the Borrower and Olinda, respectively, SOLIMA in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Section 4.01 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan this Agreement within the meaning of Section 12.01 (c12.01(b) of the General Conditions: (a) the terms Borrower has opened the Project Account and deposited therein the amount of reference, the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankInitial Deposit; (b) the Borrower has established a financial accounting and management systems referred system acceptable to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have been establishedAssociation, and has appointed, in accordance with the relevant staff provisions of CONDEPE/FIDEMSection II of Schedule 3 to this Agreement, COMPESA and the Municipalities have received a minimum an auditor for purposes of 40 hours of training in the use of such systemsArticle 4 to this Agreement; (c) a manual, satisfactory the Borrower has furnished to the Bank, has been issued by CONDEPE/FIDEM with Association the policies draft report detailing the time table and procedures action plan for the carrying out establishment of the ProjectRoad Works Agency, including, inter alia, in form and substance acceptable to the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andAssociation; (d) the Borrower has adopted the Project Execution Manual, in form and substance acceptable to the Association; and (e) the PAD Subsidiary Agreements, the CONDEPE/FIDEM Loan Agreement and the COMPESA SNCS Subsidiary Loan Agreement have been entered into between executed on behalf of the respective parties theretoBorrower and PAD and the Borrower and SNCS respectively. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan has been validly registered by the Guarantor’s Central Bank; (b) the Recife PAD Project Agreement and the Olinda SNCS Project Agreement have been duly authorizedauthorized or ratified by PAD and SNCS respectively, and are legally binding upon Recife PAD and Olinda, respectively, SNCS in accordance with their terms; and (cb) that the CONDEPE/FIDEM PAD Subsidiary Loan Agreement and the COMPESA SNCS Subsidiary Loan Agreement have been duly authorized, authorized or ratified by the Borrower and PAD and the Borrower and SNCS respectively and are legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, PAD and the Borrower and SNCS in accordance with their terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.017.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms of reference, the short-list of firms Project Implementation Manual and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, Procedures Manual have been presented toduly approved by the Association, and found satisfactory by, adopted by the BankBorrower; (b) the Borrower has established an adequate financial management systems and accounting system, and a management information system to monitor performance indicators referred to in Sections 4.01 paragraph 4 (a) (i) of Schedule 4 to this Agreement, and 4.03 selected the auditors referred to in Article IV of this Agreement and Agreement, in accordance with Section 3.01 II of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsSchedule 3 to this Agreement; (c) a manual, satisfactory to the Bank, FDES has been issued by CONDEPE/FIDEM with duly established, and the policies FDES Convention signed and procedures for the carrying out delivered on behalf of the Project, including, inter alia, the roles Borrower and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andFDES; (d) the Subsidiary AgreementsProject Accounts have been duly opened, the CONDEPE/FIDEM Agreement and the COMPESA Agreement amounts of the initial deposits deposited therein in accordance with Section 3.05 (b) (i) of this Agreement; (e) the Project Coordinator, FDES Executive Director, and four Project Managers referred to in paragraph 3 (b) of Schedule 4 to this Agreement, shall have been entered into between duly recruited, in accordance with Section II of Schedule 3 to this Agreement; and (f) the respective parties Borrower has made satisfactory progress in the implementation of its teacher recruitment and redeployment program in accordance with Part VI (Conditions Critical to the Success of the Program) of the Program, and the Implementation Schedule attached thereto. Section 6.027.02. The following are is specified as an additional mattersmatter, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) Association, namely, that: the Loan FDES Convention has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Borrower and the Olinda Project Agreement have been duly authorizedFDES, and are is legally binding upon Recife the Borrower and Olinda, respectively, FDES in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their its terms. Section 6.037.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 7.04. The obligations of the Borrower under Article IV shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms of reference, the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, Subsidiary Loan Agreements have been presented toexecuted on behalf of the Borrower and of DICOL and EAGB, and found satisfactory by, the Bank;respectively; and (b) the financial management systems referred to in Sections 4.01 Borrower shall have presented financing plans for MNRI (the MNRI Financing Plan), DICOL (the DICOL Financing Plan) and 4.03 of this Agreement and in Section 3.01 of EAGB (the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems; (c) a manualEAGB Financing Plan), satisfactory to the BankAssociation, has been issued by CONDEPE/FIDEM delineating the sources of financing and expected expenditures of MNRI, DICOL and EAGB over no shorter than a three-year period beginning with the policies and procedures for the carrying out date of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties theretosuch presentation. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan DICOL Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankDICOL and is legally binding upon DICOL in accordance with its terms; (b) that the Recife EAGB Project Agreement has been duly authorized or ratified by EAGB and is legally binding upon EAGB in accordance with its terms; (c) that the Olinda Project Agreement DICOL Subsidiary Loan Agreements have been duly authorized, authorized or ratified by the Borrower and DICOL and are legally binding upon Recife the Borrower and Olinda, respectively, DICOL in accordance with their respective terms; and (cd) that the CONDEPE/FIDEM EAGB Subsidiary Loan Agreement and the COMPESA Agreement have has been duly authorized, authorized or ratified by the Borrower and are EAGB and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, EAGB in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section Sections 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Sections 3.06 and 4.02 of this Agreement and Schedule 6 to this Agreement, shall cease and determine on the earlier of the date on which the Development Credit Agreement shall terminate and the date four years after the date of this Agreement.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan this Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) a Project Agreement has been executed on behalf of the Association and an Entity on terms of reference, and conditions satisfactory to the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the Bank;Association; and (b) for the financial management systems Entity referred to in Sections 4.01 and 4.03 paragraph (a) of this Section 6.01: (i) a Subsidiary Credit Agreement and in Section 3.01 has been executed on behalf of the Recife Project Agreement Borrower and said Entity, on terms and conditions satisfactory to the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAssociation; (cii) a manualthe Project Implementation Manual, satisfactory to the BankAssociation, has been issued adopted by CONDEPE/FIDEM with said Entity; and (iii) the policies Project Account has been opened by said Entity and procedures an initial amount of □20,000 equivalent for Part A of the carrying out Project and □15,000 equivalent for Part B of the Project, includingas the case may be, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA Agreement have has been entered deposited into between the respective parties theretosuch Account. Section 6.02. The following are specified as additional matters, within with the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Entity concerned and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, on said Entity in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Credit Agreement and the COMPESA Agreement have referred to in Section 6.01 (b) (i) has been duly authorized, authorized or ratified by and are is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, said Entity in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Article III of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty (20) years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms of reference, the short-list of firms FAS III Project Account has been opened and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankInitial Deposit deposited therein; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this Subsidiary Agreement and in Section 3.01 has been executed on behalf of the Recife Project Agreement Borrower and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsFAS; (c) a manualcertified accountant, a financial internal auditor and a technical internal auditor have been appointed, under terms of reference, qualification and experience satisfactory to the BankAssociation, in accordance with the provisions of Section II of Schedule 2 to the Project Agreement; (d) external auditors have been appointed under terms of reference, qualification and experience satisfactory to the Association for purposes of Section 4.01 of this Agreement, in accordance with the provisions of Section II of Schedule 2 to the Project Agreement; (e) a financial management system with capacity to produce FMRs for the Project, including a Financial Management Procedural Manual, has been issued by CONDEPE/FIDEM with approved in form and substance satisfactory to the policies Association; (f) the Operational Manual in form and procedures substance satisfactory to the Association had been approved; and (g) the first Annual Work Plan and Budget for the carrying out first 12 months of the Project, includingincluding the commitments for each province to carry out the planned subprojects, inter aliahas been submitted to the Association, in form and substance satisfactory to the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties theretoAssociation. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorizedFAS, and are is legally binding upon Recife and Olinda, respectively, FAS in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Agreement and the COMPESA Agreement have has been duly authorized, authorized or ratified by the Borrower and are FAS and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, FAS in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms Subsidiary Loan Agreement has been executed on behalf of reference, the short-list of firms Maharashtra and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankCorporation; (b) all conditions precedent to the financial management systems referred effectiveness of the Loan Agreement shall have been fulfilled, other than those related to in Sections 4.01 and 4.03 the effectiveness of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAgreement; (c) the Corporation has issued a manual, satisfactory Letter of Acceptance to the Bank, successful bidder in respect of the contract for the construction of the Worli and ▇▇▇▇▇▇ outfalls under Part A (i) of the Project; (d) the Corporation has been issued by CONDEPE/FIDEM with Tenders for the policies and procedures works to be carried out under Part A (vii) of the Project; (e) consultants’ contracts for the carrying out of the Project, including, inter alia, the roles Parts B (ii) and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress (iii) of the Project (the Operational Manual)have been awarded; and (df) the Subsidiary AgreementsAssociation has received consultant recruitment documentation and program, satisfactory to the CONDEPE/FIDEM Agreement Association, for the recruitment of consultants for the supervision of construction of works to be carried out under Parts A (i) through (v) and (vii) of the COMPESA Agreement have been entered into between the respective parties theretoProject. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Maharashtra Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankMaharashtra, and is legally binding upon Maharashtra in accordance with its terms; (b) that the Recife Project Agreement and the Olinda Project Agreement have has been duly authorizedauthorized or ratified by the Corporation, and are is legally binding upon Recife and Olinda, respectively, the Corporation in accordance with their its terms; and (c) that the CONDEPE/FIDEM Subsidiary Loan Agreement has been duly authorized or ratified by Maharashtra and the COMPESA Agreement have been duly authorized, Corporation and are is legally binding upon CONDEPE/FIDEM Maharashtra and COMPESA, respectively, the Corporation in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The provisions of paragraph (b) of Section 5.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date 25 years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) a memorandum of understanding, in form and substance satisfactory to the terms of referenceAssociation, the shorthas been signed between DLC-list of firms CI and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankENA; (b) the financial management systems Borrower has appointed a Director and the key staff referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 paragraph 2 (b) of the Recife Schedule to the Project Agreement Agreement, i.e., atechnician (computer specialist with communications skills) a facilitator/trainer and an accountant/financial officer with functions and experience satisfactory to the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAssociation; (c) DLC-CI has adopted a manualProject Implementation Manual, in form and substance satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andAssociation; (d) the Subsidiary AgreementsAgreement has been executed by the Borrower and DLC-CI; (e) the financial management system referred to in paragraph 4 of the Schedule to the Project Agreement has been established and is operational; (f) DLC-CI has furnished to the Association a draft of its Business Plan for its first year of operation; and (g) an auditor satisfactory to the Association has been appointed, on terms and conditions satisfactory to the CONDEPE/FIDEM Agreement and Association, to audit the COMPESA Agreement have been entered into between the respective parties theretoProject accounts. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized by the Guarantor’s Central Bank; (b) the Recife Project Agreement DLC-CI and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, on DLC-CI in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Agreement and the COMPESA Agreement have has been duly authorized, authorized or ratified by the Borrower and are DLC-CI and is legally binding upon CONDEPE/FIDEM on the Borrower and COMPESA, respectively, DLC-CI in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Section 4.01 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan this Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) all conditions precedent to the terms effectiveness of referencethe other ▇▇▇ Credits and GEF Trust Fund Grant Agreements, other than those related to the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 effectiveness of this Agreement, have been presented to, and found satisfactory by, the Bankfulfilled; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 Borrowers have confirmed the membership of the Recife Project Agreement Regional Policy and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsSteering Committee; (c) the Borrowers have strengthened the three National Secretariats by the appointment of a manualHead of Secretariat, satisfactory in accordance with paragraph 2 of Schedule 2 to the BankJoint Project Agreement, has been issued by CONDEPE/FIDEM an Accountant, Disburse- ment and Procurement Officer, an Operations Officer and a Management Information Systems Officer, all with experience and qualifications acceptable to the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andAssociation; (d) the Subsidiary AgreementsBorrowers have appointed the panel of internationally renowned scientists in accordance with Paragraph 3 of Schedule 2 to the Joint Project Agreement; (e) the Borrowers have furnished evidence satisfactory to the Association that they have agreed on common standard methods for measuring and monitoring water quality; (f) the Borrowers have furnished evidence satisfactory to the Association that they have each made budgetary allocation representing their first year contribution to the Project; and (g) the Borrowers have finalized and furnished to the Association, the CONDEPE/FIDEM Agreement Project Implementation Plan, work plans and financial plans, satisfactory to the COMPESA Agreement have been entered into between Association, for the respective parties theretofirst year of the Project Implementation Plan. Section 6.02. The following are is specified as an additional mattersmatter, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) Association, namely that the Loan Joint Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorizedparties, and are is legally binding upon Recife and Olinda, respectively, the parties in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General ConditionsCondition: (a) the terms of reference, the short-list of firms The Agency and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Funding Agreement, have satisfactory to the Association, has been presented to, entered into by the Borrower and found satisfactory by, the Bank;IGA. (b) At least one Project Support Agreement, satisfactory to the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of Association, has been entered into by the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems;parties thereto. (c) a manualAn Operations Manual, which sets out the operating policies and procedures of IGA for support of the Export Financing FacilityExport Financing/Guarantee Facility and Performance Bond SupportExport Performance Support Facility, satisfactory to the BankAssociation, has been issued adopted and approved by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA IGA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andBorrower. (d) A financial management system for IGA, satisfactory to the Subsidiary AgreementsAssociation, the CONDEPE/FIDEM Agreement and the COMPESA Agreement have has been entered into between the respective parties theretoestablished. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered by the Guarantor’s Central Bankduly authorized or ratified by, and executed and delivered on behalf of, IGA and is legally binding upon IGA in accordance with its terms; (b) that the Recife Project Agency and Funding Agreement and the Olinda Project Agreement have has been duly authorized, authorized and are executed by the parties thereto and is legally binding upon Recife and Olinda, respectively, them in accordance with their its terms; and (c) that the CONDEPE/FIDEM Agreement and the COMPESA Agreement have Project Support Agreement, referred to in Ssection 6.01(b) hereof, has been duly authorizedauthorized and executed by the parties thereto, and are is legally binding upon CONDEPE/FIDEM and COMPESA, respectively, them in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Articles III and V of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions: (a) the terms First Subsidiary Loan Agreement has been signed on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankSEDAPAL; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this Management Agreement and in Section 3.01 for 1995 has been signed on behalf of the Recife Project Agreement Borrower and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsSEDAPAL; (c) the Implementation Manual has been duly approved by SEDAPAL; (d) the PCC and PMU have been established and the following personnel have been employed in the PMU: the Project manager, a manualprocurement specialist, a field supervision engineer, a financial manager and a social assessment specialist; (e) the Borrower has furnished to the Bank a time-bound plan, satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures to set up a mechanism for the carrying out financing of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities secondary works in the carrying out of Lima Metropolitan Area; (f) the ProjectBorrower's Executive Branch has enacted regulations, their Project related reporting obligationssatisfactory to the Bank, guidelines to the Services Law; such regulations to include specific norms and criteria regarding the tariff structure and levels for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, provision of water supply and indicators to measure the progress of the Project (the Operational Manual)sewerage services; and (dg) ▇▇▇▇▇▇▇ has opened the Subsidiary Agreements, Project Account in a manner satisfactory to the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties theretoBank. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankSEDAPAL, and is legally binding upon SEDAPAL in accordance with its terms; (b) that the Recife Project First Subsidiary Loan Agreement and the Olinda Project Agreement have has been duly authorized, authorized or ratified by the Borrower and are SEDAPAL and is legally binding upon Recife the Borrower and Olinda, respectively, SEDAPAL in accordance with their its terms; (c) that the Management Agreement for 1995 has been duly authorized or ratified by the Borrower and SEDAPAL and is legally binding upon the Borrower and SEDAPAL in accordance with its terms; (d) that the Regulations have been legally enacted and are in full force and effect; and (ce) that the CONDEPE/FIDEM Agreement and the COMPESA Agreement have Implementation Manual has been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their termsapproved by SEDAPAL. Section 6.03. The date October 21May 2, 2003, 1995 is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions: (a) the terms of reference, Loan Agreement has been duly registered by the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the Central Bank; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement Contractual Arrangements have been established, duly signed and authorized by the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsparties thereto; (c) a manualthe counterpart funds required to carry out the activities during the first year of the Project shall have been allocated in terms consistent with the estimated costs therefor in the 1991 budget of the Borrower; (d) the terms of reference and work program, satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works study under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress Part B (1) of the Project have been furnished to the Bank; (e) the Operational Manual)terms of reference, satisfactory to the Bank, for the study under Part B (2) of the Project have been furnished to the Bank; and (df) the Subsidiary Agreements, members of the CONDEPE/FIDEM Agreement and the COMPESA commission referred to in Section 3.05 of this Agreement have been entered into between the respective parties theretoduly appointed. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) that the Loan Agreement has been validly duly registered by the Guarantor’s Central Bank; (b) that the Recife Project Agreement and the Olinda Project Agreement Contractual Arrangements have been duly authorized, authorized by the parties thereto and are legally valid and binding upon Recife and Olinda, respectively, them in accordance with their terms; and (c) that all necessary acts, consents and approvals to be performed or given by the CONDEPE/FIDEM Agreement Borrower, its political subdivisions or agencies, or otherwise to be performed or given in order to authorize the carrying out of the Project and to enable the COMPESA Agreement Borrower to perform its obligations pursuant to this Agreement, together with all necessary powers and rights in connection therewith, have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their termsperformed or given. Section 6.03. The date October 21of May 15, 2003, 1991 is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan this Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) a Project Agreement has been executed on behalf of the Association and an Entity on terms of reference, and conditions satisfactory to the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankAssociation; (b) for the Entity referred to paragraph (a) of this Section 6.01: (i) the respective LDF has been established in form and substance satisfactory to the Association and its Operational Guidelines have been adopted satisfactory to the Association; (ii) a Subsidiary Financing and Project Implementation Agreement has been executed on behalf of the Borrower, said Entity and the respective LDF on terms and conditions satisfactory to the Association; (iii) the financial management systems system referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife respective Project Agreement and Agreement, in a format acceptable to the Olinda Project Agreement have Association, has been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems;; and (c) a manual, satisfactory the auditors referred to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out in Section 4.01 (b) (i) of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA this Agreement have been entered into between the respective parties theretoemployed. Section 6.02. The following are specified as additional matters, within with the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Entity concerned and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, on said Entity in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Financing and Project Implementation Agreement and the COMPESA Agreement have referred to in Section 6.01 (b) (ii) has been duly authorized, authorized or ratified by and are is legally binding upon CONDEPE/FIDEM the Borrower, said Entity and COMPESA, respectively, the respective LDF in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Article III of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty (20) years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms Subsidiary Loan Agreement has been duly executed on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankNEA; (b) the financial management systems referred Borrower and NEA have duly entered into a performance contract whose terms and conditions shall be satisfactory to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAssociation; (c) a manual, satisfactory NEA has employed consultants with terms of reference and qualifications acceptable to the BankAssociation for purposes of supervising implementation of Parts A, has been issued by CONDEPE/FIDEM with the policies B.1, B.2, B.3 and procedures for the carrying out B.4 of the Project; (d) NEA has invited contract bids for the provision of materials and equipment under Parts A, includingB.1, inter aliaB.2, the roles B.3 and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out B.4 of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (de) all conditions precedent to the Subsidiary Agreements, effectiveness of the CONDEPE/FIDEM Agreement and the COMPESA NDF Loan Agreement have been entered into between fulfilled, other than those related to the respective parties theretoeffectiveness of this Agreement. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankNEA, and is legally binding upon NEA in accordance with its terms; (b) that the Recife Project Subsidiary Loan Agreement and the Olinda Project Agreement have has been duly authorized, authorized or ratified by the Borrower and are NEA and is legally binding upon Recife the Borrower and Olinda, respectively, NEA in accordance with their its terms; and (c) that the CONDEPE/FIDEM Agreement and the COMPESA Agreement have Performance Contract has been duly authorized, authorized or ratified by the Borrower and are NEA and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, NEA in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Sections 4.01(a), 4.01(b) and 4.03 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty five years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms Subsidiary Credit Agreement has been executed on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankBCRM; (b) the financial management systems referred Ordonnance setting forth BCRM's revised Statutes, so as to make BCRM more independent and accountable in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have its operations, has been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemspromulgated; (c) a manualthe audit report for BCRM's accounts for fiscal year 1992, satisfactory to prepared in accordance with the Bankprovisions of Section 4.01 of the Project Agreement, has been issued received by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)Association; and (d) all conditions precedent to the Subsidiary Agreementseffectiveness of the Swiss Grant Agreement, the CONDEPE/FIDEM USAID Grant Agreement and the COMPESA BITS Grant Agreement have been entered into between fulfilled, other than those related to the respective parties theretoeffectiveness of this Agreement. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement BCRM and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, BCRM in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Credit Agreement and the COMPESA Agreement have has been duly authorized, authorized or ratified by the Borrower and are BCRM and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, BCRM in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Section 4.01 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.017.01. The following events are specified as additional conditions to the effectiveness of the Loan Agreement Association within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms AGETIPA Convention has been duly signed and delivered on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankAGETIPA; (b) the financial management systems referred Procedures Manual has been duly amended, pursuant to in Sections 4.01 and 4.03 paragraph 1 (a) (ii) of Schedule 4 to this Agreement and in Section 3.01 Agreement, to take account of the Recife Project Agreement and specific objectives of the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsProject; (c) a manual, satisfactory to the Bank, AGETIPA Project Account has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Projectduly opened, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out initial amount of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and$500,000 equivalent deposited therein; (d) the Subsidiary Agreements, the CONDEPE/FIDEM auditors referred to in Article IV of this Agreement and the COMPESA Project Agreement have been entered into between the respective parties theretoduly selected in accordance with Section II of Schedule 3 to this Agreement. Section 6.027.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankAGETIPA, and is legally binding upon AGETIPA in accordance with its terms; (b) the Recife Project Agreement and the Olinda Project Agreement have AGETIPA Convention has been duly authorizedauthorized or ratified by the Borrower and AGETIPA, and are is legally binding upon Recife the Borrower and Olinda, respectively, AGETIPA in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their its terms. Section 6.037.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 7.04. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms of reference, the short-list of firms Subsidiary Loan Agreement and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, Performance Agreement have been presented to, executed on behalf of the Borrower and found satisfactory by, the BankDWASA; (b) all conditions precedent to the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 effectiveness of the Recife Project French Grant Agreement and the Olinda Project Japanese Grant Agreement have been establishedfulfilled, and other than the relevant staff effectiveness of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems;this Agreement; and (c) a manualthe following contracts, satisfactory to the BankAssociation, has have been issued executed and delivered by CONDEPE/FIDEM with the policies and procedures Borrower: (i) the contract for the carrying out twinning program under Part D.2 of the Project, including, inter alia, ; (ii) the roles and responsibilities of CONDEPE/FIDEM, COMPESA and contract for the Municipalities in the carrying out sanitation study under Part D.4 of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (diii) the Subsidiary Agreements, contract for the CONDEPE/FIDEM Agreement and strategy study under Part D.5 of the COMPESA Agreement have been entered into between the respective parties theretoProject. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankDWASA, and is legally binding upon DWASA in accordance with its terms; (b) that the Recife Project Subsidiary Loan Agreement and the Olinda Project Performance Agreement have been duly authorized, authorized or ratified by the Borrower and DWASA and are legally binding upon Recife the Borrower and Olinda, respectively, in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, DWASA in accordance with their terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The provisions of paragraph (a) of Section 5.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan this Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) a Project Agreement has been executed on behalf of the Association and an Entity on terms of reference, and Conditions satisfactory to the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankAssociation; (b) for the financial management systems Entity referred to in Sections 4.01 and 4.03 paragraph (a) of this Section 6.01: (i) the Operational Guidelines have been adopted satisfactory to the Association; and (ii) a Subsidiary Financing and Project Implementation Agreement and in Section 3.01 has been executed on behalf of the Recife Project Agreement Borrower and said Entity on terms and conditions satisfactory to the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems;Association; and (c) a manual, satisfactory the auditors referred to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out in Section 4.01 (b) (i) of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA this Agreement have been entered into between the respective parties theretoemployed. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Entity concerned and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, said Entity in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Financing and Project Implementation Agreement and the COMPESA Agreement have referred to in Section 6.01 (b) (ii) has been duly authorized, authorized or ratified by the Borrower and are said Entity and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, said Entity in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Article III of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty (20) years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms Subsidiary Loan Agreement has been executed on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankGeneration Company; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project NDF Loan Agreement and the Olinda Project NORAD Loan Agreement have been established, executed and delivered and all conditions precedent to the effectiveness or to the right of the Borrower to make withdrawals under the NDF Loan Agreement and the relevant staff NORAD Loan Agreement, respectively, (except for the effectiveness of CONDEPE/FIDEMthe Development Credit Agreement), COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsbeen fulfilled; (ci) a manual, MEMD has employed an accountant with qualifications and experience satisfactory to the BankAssociation, has been issued by CONDEPE/FIDEM with to assist in the policies implementation of Parts C and procedures for the carrying out D of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (ii) the Generation Company has employed an environment officer with qualifications and experience satisfactory to the Association; (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement Generation Company Project Implementation Manual and the COMPESA Agreement MEMD Project Implementation Manual, in form and substance satisfactory to the Association, have been entered into between adopted and furnished to the respective parties theretoAssociation; (e) the Borrower has: (i) settled all overdue arrears payable to the Distribution Company as of June 30, 2001; and (ii) furnished to the Association an action plan to ensure that the Borrower’s agencies shall remain current on their electricity bills; (f) UEB and the Generation Company have executed the Management Services Agreement; and (g) UEB and the Generation Company have adopted financial management arrangements, satisfactory to the Association, for the implementation of Parts A.1, A.3 (a), ▇.4, A.5, and Part B of the Project. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Generation Company and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, the Generation Company in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Loan Agreement has been duly authorized or ratified by the Borrower and the COMPESA Agreement have been duly authorized, Generation Company and are is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, the Generation Company in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms furnishing to the Association by Lagos State of referencedraft bidding documents, satisfactory to the short-list Association, for the contracting to private sector contractors of firms and maintenance of existing drainage under the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankProject; (b) the financial management systems referred employment by Lagos State of consultants to in Sections 4.01 supervise construction and 4.03 of this Agreement and in Section 3.01 assist with the carrying out of the Recife Project Agreement and the Olinda Project Agreement have been establisheddrainage maintenance program, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training included in the use of such systemsProject; (c) a manual, satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out signing of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andSubsidiary Loan Agreement; (d) the Subsidiary Agreements, issuance by Lagos State to the CONDEPE/FIDEM Borrower of the written instructions referred to in Section 2.01 (b) (iii) of the Project Agreement authorizing: (i) the deduction from the Federation Account of Lagos State’s counterpart contributions to Project costs; and (ii) payment into the COMPESA Agreement have been entered Project Account of the said counterpart contributions; and (e) the payment by Lagos State into between the respective parties theretoProject Account of the initial amount referred to in Section 2.01 (b) (iii) (A) of the Project Agreement. Section 6.02. The following are is specified as an additional mattersmatter, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorizedLagos State, and are is legally binding upon Recife and Olinda, respectively, Lagos State in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Loan Agreement and the COMPESA Agreement have has been duly authorizedauthorized or ratified by the Borrower and Lagos State, and are is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, Lagos State in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan this Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) a Project Agreement has been executed on behalf of the Association and an Entity on terms of reference, and conditions satisfactory to the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the Bank;Association; and (b) for the financial management systems Entity referred to in Sections 4.01 and 4.03 paragraph (a) of this Section 6.01: (i) a Subsidiary Credit Agreement and in Section 3.01 has been executed on behalf of the Recife Project Agreement Borrower and said Entity, on terms and conditions satisfactory to the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAssociation; (cii) a manualthe Project Implementation Manual, satisfactory to the BankAssociation, has been issued adopted by CONDEPE/FIDEM with said Entity; and the policies Project Account has been opened by said Entity and procedures an initial amount of €20,000 equivalent for Part A of the carrying out Project and €15,000 equivalent for Part B of the Project, includingas the case may be, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); and (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA Agreement have has been entered deposited into between the respective parties theretosuch Account. Section 6.02. The following are specified as additional matters, within with the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Entity concerned and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, on said Entity in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Credit Agreement and the COMPESA Agreement have referred to in Section 6.01 (b) (i) has been duly authorized, authorized or ratified by and are is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, said Entity in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Article III of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty (20) years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions: (a) the terms requirement of reference, the short-list prior authorization for exports of firms fisheries and livestock products has been removed and the request for proposals registration of exporters of food products with MINDIC has been simplified and decentralized in a manner satisfactory to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the Bank; UTAVA; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this UTAVA Grant Agreement and in Section 3.01 has been executed on behalf of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems;Borrower and (c) a manual, satisfactory to the Bank, CFC Subsidiary Loan Agreement has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out executed on behalf of the Project, including, inter alia, the roles Borrower and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andCFC; (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA following FIMAC staff referred to in Section B.1 of Schedule 5 to this Agreement have been entered into between appointed: the respective parties theretoFIMAC Project Director, the Assistant Project Director, the administrative and financial controller, the field staff supervisor and the two MINAGRI training coordinators; (e) the DEAPA staff of the coordinating unit referred to in Section B.3 of Schedule 5 to this Agreement has been appointed; and (f) the MINSANTE coordinator referred to in Section B.5 of Schedule 5 to this Agreement has been appointed and the specialized non-governmental organization referred to in Section 3.02 (b) of this Agreement has been employed. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) that the Loan has been validly registered by the Guarantor’s Central Bank; (b) the Recife UTAVA Project Agreement and the Olinda CFC Project Agreement have been duly authorizedauthorized or ratified by UTAVA and CFC, respectively, and are legally binding upon Recife UTAVA and Olinda, respectively, CFC in accordance with their terms; (b) that the UTAVA Grant Agreement has been duly authorized or ratified by the Borrower and UTAVA and is legally binding upon the Borrower and UTAVA in accordance with its terms; and (c) that the CONDEPE/FIDEM CFC Subsidiary Loan Agreement and the COMPESA Agreement have has been duly authorized, authorized or ratified by the Borrower and are CFC and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, CFC in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) a memorandum of understanding, in form and substance satisfactory to the terms of referenceAssociation, the shorthas been signed between DLC-list of firms BENIN and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankNEI; (b) DLC-BENIN has appointed a Director, and the financial management systems staff referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 paragraph 2 (a) of the Recife Schedule to the Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAgreement; (c) DLC-BENIN’s Executive Board has adopted a manualProject Implementation Manual, in form and substance satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andAssociation; (d) the Subsidiary AgreementsAgreement has been executed by the Borrower and DLC-BENIN; (e) the financial management system referred to in paragraph 4 of the Schedule to the Project Agreement has been established and is operational; (f) DLC-BENIN has furnished to the Association a draft of its Business Plan for the first year of DLC-BENIN’s operations; and (g) an auditor satisfactory to the Association has been appointed, on terms and conditions satisfactory to the CONDEPE/FIDEM Agreement and Association, to audit the COMPESA Agreement have been entered into between the respective parties theretoProject accounts. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement DLC-BENIN and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, on DLC-BENIN in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Agreement and the COMPESA Agreement have has been duly authorized, authorized or ratified by the Borrower and are DLC-BENIN and is legally binding upon CONDEPE/FIDEM on the Borrower and COMPESA, respectively, DLC-BENIN in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Section 3.01 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.015.01. The following events are specified as additional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c12.01(c) of the General Conditions: (a) the terms of reference, the short-list of firms Executing Agency Trust Account has been established in accordance with Section 3.03 (a) and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 (b) of this Agreement, have been presented to, and found satisfactory by, the Bank; (b) the financial management systems referred to a Provincial Executing Agency Trust Account has been established in Sections 4.01 each Participating Province in accordance with Section 3.04 (a) and 4.03 (b) of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAgreement; (c) an Imprest Account has been established in each Participating Province in accordance with Section 3.05 (a) and (b) of this Agreement; (d) the Borrower has entered into arrangements with the Employer’s Project Manager pursuant to paragraph 1(b) of Schedule 5 to this Agreement; (e) the Borrower has adopted a manualfinancial management system for the Project within DOWT and each Participating Province, in accordance with paragraph 3 of Schedule 5 to this Agreement; (f) the Borrower has furnished evidence of the actions taken, and a time-bound action plan of the outstanding actions, if any, to be taken, all satisfactory to the Bank, has been issued by CONDEPE/FIDEM with to implement the policies and procedures recommendations of the Auditor-General’s Office special review of the internal control system for the carrying out operations of the ProjectDOWT, includingdated July 26, inter alia2001, the roles and responsibilities in accordance with paragraph 4 of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications Schedule 5 to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)this Agreement; and (dg) the Subsidiary Agreements, Memorandum of Agreement between the CONDEPE/FIDEM Agreement Borrower and the COMPESA Agreement have each Participating Province has been entered into between the respective parties theretoin accordance with paragraph 8 of Schedule 5 to this Agreement. Section 6.025.02. The following are specified as additional matters, within the meaning of Section 12.02 (c12.02(c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) the Loan Land Acquisition and Compensation Framework has been validly registered duly adopted by the GuarantorBorrower’s Central BankNational Executive Council and is legally binding upon the Borrower and each Participating Province in accordance with their respective terms; (b) the Recife Project Agreement Environmental and the Olinda Project Agreement have Social Impact Assessment Management and Monitoring Plans has been duly authorizedadopted by the Borrower on June 1, 2001, and are is legally binding upon Recife the Borrower and Olinda, respectively, each Participating Province in accordance with their respective terms; and (c) the CONDEPE/FIDEM Memorandum of Agreement between the Borrower and the COMPESA Agreement have each Participating Province has been duly authorized, authorized or ratified by the Borrower and are each Participating Province and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, each Participating Province in accordance with their its terms. Section 6.035.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General ConditionsConditions : (a) the terms Borrower has, in accordance with the provisions of referenceSection II of Schedule 3 to this Agreement, the short-list appointed an auditor for purposes of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 Article IV of this Agreement, have been presented to, and found satisfactory by, the Bank; (b) the financial management systems referred Borrower has adopted a Program Implementation Manual, in form and substance acceptable to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAssociation; (c) MEN has entered into: (i) an agreement with the Maître d’ouvrage délégué, and (ii) a manualProtocole d’Accord with the Associations des Elus Locaux, both in form and substance satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andAssociation; (d) the Subsidiary AgreementsBorrower has: (i) established a financial management and accounting system, satisfactory to the Association; and (ii) adopted a Financial Procedures Manual, in form and substance acceptable to the Association; (e) the Borrower has completed the procurement plan for the first two years of the Project; (f) the Borrower has approved the AWPB for the first year of the Project, in accordance with, and subject to, the CONDEPE/FIDEM provisions paragraph 6 of Schedule 4 to this Agreement; (g) the Subsidiary Agreement has been executed on behalf of the Borrower and AGETIP; and (h) the COMPESA Agreement have been entered into between Borrower has opened the respective parties theretoProject Account and deposited therein the amount of the Initial Deposit. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorizedAGETIP, and are is legally binding upon Recife and Olinda, respectively, AGETIP in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Agreement and the COMPESA Agreement have has been duly authorizedauthorized or ratified by the Borrower and AGETIP, and are is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, AGETIP in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions: (a) the terms of reference, the short-list of firms and the request for proposals Borrower has designated CORFO as its financial agent to be sent to such firms, regarding the consulting services referred to in Section 3.04 3.01 tb) of this Agreement, have been presented to, and found satisfactory by, the Bank; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 Funds Transfer Arrangement has been entered into on behalf of the Recife Project Agreement Borrower and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsCORFO; (c) the Borrower has adopted legislation providing for a manual, satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andDepository System; (d) the Subsidiary AgreementsBorrower has raised the limit of bonds which can be issued by an enterprise, organized under the CONDEPE/FIDEM Agreement laws of the Borrower and engaged primarily in the COMPESA Agreement have been entered into between business of leasing equipment, for purchase by AFPs and Insurance Companies to twice the respective parties theretopermanent capital of such enterprise; and (e) CORFO has adopted Auction Procedures satisfactory to the Bank and provided the came to the Bank. Section 6.02. The following are specified as additional mattersatters, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank:. (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central BankCORFO, and is legally binding upon CORFO in accordance with its terms; (b) that the Recife Project designation of CORFO as the financial agent of the Borrower as provided in Section 3.01 (b) of this Agreement is legally valid and the Olinda Project Agreement have been duly authorized, and are legally binding upon Recife the Borrower and Olinda, respectively, CORFO in accordance with their its terms; and; (c) that the CONDEPE/FIDEM Agreement and the COMPESA Agreement have Funds Transfer Arrangement has been duly authorizedauthorized or ratified by the Borrower and CORFO, entered into on behalf of the parties thereto, and are is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, CORFO in accordance with their its terms: and (d) that the legislation referred to in condition (c) of Section 6.01 of this Agreement has been duly adopted and the legislative and regulatory changes that are or may be required by condition (d) of Section 6.01 of this Agreement have taken effect, and that no other actions or ratifications are required by any party or governmental agency or department in order for such changes to be applicable and binding law within the territory of the Borrower. Section 6.03. The date October 21May 9, 2003, 1990 is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms of reference, the short-list of firms ONATRA Subsidiary Loan Agreement and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, SNCZ Subsidiary Loan Agreement have been presented toexecuted on behalf of the Borrower and ONATRA and SNCZ, and found satisfactory by, the Bankrespectively; (b) the financial management systems referred to in Sections 4.01 agreements providing for additional financing for Parts B.1 and 4.03 of this Agreement and in Section 3.01 B.2 of the Recife Project Agreement by the Kreditanstalt fur Wiederaufbau and the Olinda Project Agreement African Development Bank have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems;signed; and (c) a manual, Contrats-Programmes satisfactory to the Bank, has been issued by CONDEPE/FIDEM with Association between the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding proceduresBorrower, and indicators to measure the progress of the Project (the Operational Manual)ONATRA and SNCZ, respectively, have been entered into by such parties and have become effective; and (d) all action required on the Subsidiary Agreements, part of the CONDEPE/FIDEM Agreement Borrower to authorize the restructuring of ONATRA’s capital and the COMPESA Agreement have debt has been entered into between the respective parties theretotaken. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan has been validly registered by the Guarantor’s Central Bank; (b) the Recife ONATRA Project Agreement and the Olinda SNCZ Project Agreement have been duly authorizedauthorized or ratified by ONATRA and SNCZ, respectively, and are legally binding upon Recife ONATRA and Olinda, respectively, SNCZ in accordance with their terms; and (cb) that the CONDEPE/FIDEM ONATRA Subsidiary Loan Agreement and the COMPESA SNCZ Subsidiary Loan Agreement have been duly authorizedauthorized or ratified by the Borrower and ONATRA and SNCZ, respectively, and are legally binding upon CONDEPE/FIDEM the Borrower, ONATRA and COMPESA, respectively, SNCZ in accordance with their terms. Section 6.03. The date October 21, 2003, one hundred twenty (120) days after the date of this Agreement is hereby specified for the purposes of Section section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Article IV of this Agreement and the provisions of paragraphs (b) and (c) of Section 5.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan this Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) all conditions precedent to the terms effectiveness of referencethe other ▇▇▇ Credits and GEF Trust Fund Grant Agreements, other than those related to the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 effectiveness of this Agreement, have been presented to, and found satisfactory by, the Bankfulfilled; (b) the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 Borrowers have confirmed the membership of the Recife Project Agreement Regional Policy and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsSteering Committee; (c) the Borrowers have strengthened the three National Secretariats by the appointment of a manualHead of Secretariat, satisfactory in accor- dance with paragraph 2 of Schedule 2 to the BankJoint Project Agreement, has been issued by CONDEPE/FIDEM an Accountant, Disbursement and Procurement Officer, an Operations Officer and a Management Information Systems Officer, all with experience and qualifications acceptable to the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andAssociation; (d) the Subsidiary AgreementsBorrowers have appointed a panel of internationally renowned scientists in accordance with paragraph 3 of Schedule 2 to the Joint Project Agreement; (e) the Borrowers have furnished evidence satisfactory to the Association that they have agreed on common standards for measuring and monitoring water quality; (f) the Borrowers have furnished evidence satisfactory to the Association that they have each made budgetary allocations represent- ing their first year contribution to the Project; and (g) the Borrowers have finalized and furnished to the Asso- ciation annual work plans and financial plans, satisfactory to the CONDEPE/FIDEM Agreement and Association, for the COMPESA Agreement have been entered into between first year of the respective parties theretoProject Implementation Plan. Section 6.02. The following are is specified as an additional mattersmatter, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: (a) Association, namely that the Loan Joint Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement parties and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, the parties in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are event is specified as an additional conditions condition to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c12.01(c) of the General Conditions: (a) the terms of reference, Fund Agreement has been entered into between the short-list of firms Borrower and the request for proposals Fund pursuant to be sent to such firms, regarding the consulting services referred to in Section 3.04 3.01 (b) of this Agreement, have been presented to, and found satisfactory by, the Bank; (b) Memorandum of Agreement has been entered into between the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement Fund and the Olinda Project Agreement have been established, and the relevant staff ARMM pursuant to paragraph 1(a) of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsSchedule 5 to this Agreement; (c) a manualthe Policies and Guidelines of the Fund and the Operations Manual, in each case satisfactory to the Bank, has have been issued approved by CONDEPE/FIDEM with the policies and procedures for the carrying out Board of Directors of the Project, including, inter alia, the roles Fund pursuant to paragraphs 2(c) and responsibilities 2(d) of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications Schedule 5 to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andthis Agreement; (d) the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA Agreement Sub-project Approval Committees have been established pursuant to paragraph 2 (b) (iii) of Schedule 5 to this Agreement; and (e) the Fund has entered into between Sub-project Memoranda of Agreements with at least ten Beneficiaries under Part A of the respective parties theretoProject. Section 6.02. The following are is specified as an additional mattersmatter, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: , namely, that: (i) the Fund Agreement referred to in Section 6.01 (a) the Loan above has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Borrower and the Olinda Project Agreement have been duly authorized, Fund and are is legally binding upon Recife the Borrower and Olinda, respectively, the Fund respectively in accordance with their terms; and (ii) the MOA referred to in Section 6.01 (b) above has been duly authorized or ratified by the Fund and the ARMM Regional Government and is legally binding upon the Fund and the ARMM Regional Government respectively in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement Environmental Framework, the Framework for the Treatment of Indigenous Peoples, and the COMPESA Agreement Land Acquisition and Resettlement Policy Framework have been duly authorized, adopted in accordance with applicable laws and regulations and are legally binding upon CONDEPE/FIDEM the Borrower, the ARMM Regional Government and COMPESA, respectively, in accordance with their termsthe Fund. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms of reference, the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services Subsidiary Loan Agreement referred to in Section 3.04 3.02 of this Agreement, have Agreement has been presented to, executed on behalf of the Borrower and found satisfactory by, the BankELECTROGAZ; (b) the financial management systems PCAU and the PIUs referred to in Sections 4.01 paragraphs 1 and 4.03 2 (a) of Schedule 4 to this Agreement respectively have been established and the Manager in Section 3.01 each of the Recife Project Agreement PIUs and the Olinda Project accountants referred to in paragraph 2 (b) of Schedule 4 to this Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsappointed; (c) a manual, satisfactory the Borrower has submitted to the Bank, has been issued by CONDEPE/FIDEM with Association its proposal on the policies new tariff structure referred to in Section 3.09 of this Agreement and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual); andits implementation; (d) the Subsidiary Agreements, Borrower has submitted to the CONDEPE/FIDEM Agreement Association evidence of the implementation of the Ministerial Decree establishing the details on charcoal transport taxation including its collection through the National Forestry Fund; (e) the Borrower has prepared the set of measures referred to in Section 3.10 of this Agreement; (f) the Borrower has confirmed the financing plan of the Project and has submitted evidence that ELECTROGAZ has taken all necessary measures to conform with Section 3.08 of this Agreement; (g) the COMPESA Agreement have Borrower has submitted the evidence that the bids for the selection of the professional private operator has been entered into between launched; and (h) the respective parties theretoBorrower has increased and implemented a 15% tariff increase on electricity and water. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the Bank: Association: (ai) that the Loan Project Agreement has been validly registered duly authorized or ratified by ELECTROGAZ in accordance with its terms; and (ii) that the Subsidiary Loan Agreement has been duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Borrower and the Olinda Project Agreement have been duly authorized, ELECTROGAZ and are legally is binding upon Recife and Olinda, respectivelythe parties, in accordance with their terms; and (c) the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been duly authorized, and are legally binding upon CONDEPE/FIDEM and COMPESA, respectively, in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan this Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) a Project Agreement has been executed on behalf of the Association and an Entity on terms of reference, and conditions satisfactory to the short-list of firms and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankAssociation; (b) for the Entity referred to paragraph (a) of this Section 6.01: (i) Operational Manual has been adopted satisfactory to the Association; (ii) a Subsidiary Financing Agreement has been executed on behalf of the Borrower and said Entity on terms and conditions satisfactory to the Association; (iii) the financial management systems system referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife respective Project Agreement and Agreement, in a format acceptable to the Olinda Project Agreement have Association, has been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systems; (c) a manual, satisfactory the auditors referred to the Bank, has in Section 4.01 (b) (i) of this Agreement have been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)employed; and (d) that the Subsidiary Agreements, Standards and Assessment Agency has been established in a manner acceptable to the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties theretoAssociation. Section 6.02. The following are specified as additional matters, within with the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement Entity concerned and the Olinda Project Agreement have been duly authorized, and are is legally binding upon Recife and Olinda, respectively, on said Entity in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Financing Agreement and the COMPESA Agreement have referred to in Section 6.01 (b) (ii) has been duly authorized, authorized or ratified by and are is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, said Entity in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Article III of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty (20) years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General ConditionsGeneral: (a) the terms Subsidiary Loan Agreement has been executed on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankEdM; (b) GEF Grant Agreement has been executed and delivered and all conditions precedent to its effectiveness or to the financial management systems referred to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 right of the Recife Project Agreement and Borrower to make withdrawals thereunder, except only the Olinda Project Agreement effectiveness of the Development Credit Agreement, have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsfulfilled; (c) the Borrower and EdM have opened the Project Accounts referred to in Section 3.05 (b) of this Agreement and Section 2.06 (b) of the Project Agreement, respectively; (d) The Borrower and EdM have fulfilled the financial management conditions set out in an action plan agreed upon with the Association, such plan including but not limited to: (i) the establishment of financial management and information systems in a manualform and substance that is acceptable to the Association; (ii) the appointment of the auditor referred to Section 4.01 (b) of this Agreement and Section 4.01 (b) of the Project Agreement, respectively; (iii) employment of financial management staff with experience and qualifications satisfactory to the BankAssociation, has been issued by CONDEPE/FIDEM in accordance with the policies and procedures for the carrying out provisions of Section II of Schedule 3 to this Agreement; (iv) preparation of the Project, including, inter alia, financial management manual; and (v) appointment of a Trust Agent that is acceptable to the roles and responsibilities Association to manage the disbursement of CONDEPE/FIDEM, COMPESA Subproject Financing from Special Account A and the Municipalities in Special Account established under the carrying out GEF Grant Agreement, and preparation of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)Trust Agent procedures manual; and (de) EdM has employed a consultant with qualifications and experience satisfactory to the Subsidiary AgreementsAssociation, in accordance with the CONDEPE/FIDEM Agreement provisions of Section II of Schedule 3 to this Agreement, to review its assets and the COMPESA Agreement have been entered into between the respective parties thereto.current policy on insurance, and subsequently propose a suitable insurance strategy for EdM. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorizedEdM, and are is legally binding upon Recife and Olinda, respectively, EdM in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Loan Agreement and the COMPESA Agreement have has been duly authorized, authorized or ratified by the Borrower and are EdM and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, EdM in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General ConditionsConditions : (a) the terms Subsidiary Agreement has been executed on behalf of reference, the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the Bank▇▇▇▇▇▇▇; (b) the financial management systems Project Account has been opened and the initial contribution referred to in Sections Section 3.05 (b) of this Agreement has been deposited therein; (c) FODEFCA has adopted an Operational Manual and an Administrative and Financial Manual, both in form and substance satisfactory to the Borrower and the Association; (d) FODEFCA has employed the independent auditors referred to in Section 4.01 and 4.03 of this Agreement and in Section 3.01 4.01 of the Recife Project Agreement and Agreement, in accordance with the Olinda provisions of Section II of Schedule 1 to the Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAgreement; (ce) a manualFODEFCA has established an accounting and financial management system for the Project, satisfactory to the Bank, has been issued by CONDEPE/FIDEM with the policies and procedures for the carrying out of the Project, including, inter alia, the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)Association; and (d▇) ▇▇▇▇▇▇▇ has appointed its Administrative and Financial Chief, its Chief of Studies and Information, Education and Communication, an accountant, a procurement specialist and two vocational training advisors, all in accordance with the Subsidiary Agreements, provisions of Section II of Schedule 1 to the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties theretoProject Agreement. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation : (a) that the Loan Project Agreement has been validly registered duly authorized or ratified by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been duly authorizedFODEFCA, and are is legally binding upon Recife and Olinda, respectively, FODEFCA in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Agreement and the COMPESA Agreement have has been duly authorized, authorized or ratified by the Borrower and are FODEFCA and is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, FODEFCA in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under Section 4.01 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date fifteen years after the date of this Agreement, whichever shall be the earlier.

Effective Date; Termination. Section 6.01. The following events are specified as additional conditions to the effectiveness of the Loan Development Credit Agreement within the meaning of Section 12.01 (cb) of the General Conditions: (a) the terms of reference, Subsidiary Loan Agreement has been signed by the short-list of firms Borrower and the request for proposals to be sent to such firms, regarding the consulting services referred to in Section 3.04 of this Agreement, have been presented to, and found satisfactory by, the BankBCRDM; (b) BCRDM has adopted a new reserve requirement determination system applicable to the financial management systems referred banking sector, acceptable to in Sections 4.01 and 4.03 of this Agreement and in Section 3.01 of the Recife Project Agreement and the Olinda Project Agreement have been established, and the relevant staff of CONDEPE/FIDEM, COMPESA and the Municipalities have received a minimum of 40 hours of training in the use of such systemsAssociation; (c) BCRDH has started to publish the outcome of treasury ▇▇▇▇ auctions; (d) BCRDM has increased its threshold for prior authorization of credits to FMG 5 billion; (e) BCRDM has modified the system of fixing individual credit ceilings for banks, in a manual, satisfactory manner acceptable to the Bank, Association; (f) BCRDM has been issued by CONDEPE/FIDEM with an instruction which clarifies the policies and procedures for the carrying out provisions of Article 51 of the Project, including, inter alia, Banking Law in a manner acceptable to the roles and responsibilities of CONDEPE/FIDEM, COMPESA and the Municipalities in the carrying out of the Project, their Project related reporting obligations, guidelines for the works under the Project including environmental specifications to be included in the bidding documents, standard bidding documents to be used for national competitive bidding procedures, and indicators to measure the progress of the Project (the Operational Manual)Association; and (dg) BCRDM has resumed the Subsidiary Agreements, the CONDEPE/FIDEM Agreement and the COMPESA Agreement have been entered into between the respective parties theretoregular publications of its statistical bulletin. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (cb) of the General Conditions, to be included in the opinion or opinions to be furnished to the BankAssociation: (a) that the Loan Project Agreement has been validly registered signed by the Guarantor’s Central Bank; (b) the Recife Project Agreement and the Olinda Project Agreement have been a person duly authorizedauthorized by BCRDM, and are is legally binding upon Recife and Olinda, respectively, BCRDM in accordance with their its terms; and (cb) that the CONDEPE/FIDEM Subsidiary Loan Agreement and the COMPESA Agreement have has been duly authorizedsigned and authorized by, and are is legally binding upon CONDEPE/FIDEM the Borrower and COMPESA, respectively, BCRDM in accordance with their its terms. Section 6.03. The date October 21, 2003, ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under the pro- visions of paragraphs (a) and (b) of Section 5.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date twenty (20) years after the date of this Agreement, whichever shall be the earlier.