Common use of Execution of the Project Clause in Contracts

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, shall cause the Palestinian Authority to shall: (i) carry out the Project through PMU MAFWM; and (ii) without any limitation or restriction upon any of its other obligations under this Agreement, shall cause HAMAG to carry out Part A.3 of the Project; all with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental and public utility practices financial practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Bank shall otherwise agree, the Recipient Borrower, through MAFWM, shall cause the Palestinian Authority to carry out the Project through PMU and shall cause HAMAG to carry out Part A.3 of the Project in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 5 to this Agreement. (c) The Recipient For the purposes of carrying out Part A.3 of the Project, the Borrower shall make the proceeds of the Grant available Loan, allocated from time to time to Category (5) in the Palestinian Authority table set forth in Part A.1 of Schedule 1 to this Agreement, to HAMAG, under a subsidiary agreement the Administrative Service Agreement, to be entered into between the Recipient Borrower, represented by MOF and the Palestinian Authority MAFWM, and HAMAG under terms and conditions which shall have been approved by the Administrator.Bank, including, inter alia, the provisions of Part C of Schedule 5 to this Agreement; (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Administrative Service Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Administrative Service Agreement or any provision thereof. (a) Except as the Administrator Bank shall otherwise agree, procurement of the goodsworks, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient Borrower, through MAFWM, shall update the Procurement Plan in accordance with guidelines acceptable to the AdministratorBank, and furnish such update to the Administrator Bank not later than twelve (12) months after the date of the preceding Procurement Plan, for the AdministratorBank’s approval. Section 3.03. For the purposes of Section 8.06 9.07 of the General Conditions and without limitation thereto, the RecipientBorrower, through the Palestinian AuthorityMAFWM, shall cause PMU toshall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrativeadministrative and financial practices, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient For the purpose of carrying out Parts B.1 and B.2 of the Project, the Borrower shall make part of the proceeds of the Grant Credit available to the Palestinian Authority Participating Financial Institutions under a subsidiary agreement Subsidiary Loan Agreements to be entered into between the Recipient Borrower and the Palestinian Authority Participating Financial Institutions, under terms and conditions which shall have been approved by the AdministratorAssociation to include those set forth in the Annex to Schedule 4 to this Agreement. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement Loan Agreements or any provision thereof. (a) Except as the Administrator Association shall otherwise agree, procurement of the goods, services and works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the AdministratorAssociation, and furnish such update to the Administrator Association not later than twelve (12) 12 months after the date of the preceding Procurement Plan, for the AdministratorAssociation’s approval. Section 3.03. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to shall: (i) carry out its (including FANA’s, FATA’s and ICT’s) activities under the Project through PMU NACP with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental medical and public utility practices health practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for its (including FANA’s, FATA’s, and ICT’s) activities under the Project; and (ii) without any limitation or restriction upon any of its other obligations under the Financing Agreement, cause the Provinces and AJK to perform in accordance with the provisions of the Project Agreement all the obligations of the Provinces and AJK therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the Provinces and AJK to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall, and shall cause the Palestinian Authority to Provinces and AJK to, carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this AgreementAgreement and their respective PIPs. (c) The Recipient Borrower shall make the proceeds of the Grant Financing available to the Palestinian Authority under a subsidiary agreement Provinces and AJK from time to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform time in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectits standard budgetary procedures. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Financing shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan designed to ensure the continued achievement sustainability of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan. Section 3.04. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of their activities under the Project shall be carried out by the Provinces and AJK pursuant to Section 2.03 of the Project Agreement.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU the R2E2 Fund, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineeringengineering and environmental practices, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions Operational Manual, Eligibility Criteria and Procedures for Sub-loans under Part B of the Master Project set forth in Schedule 6 to this Agreement, and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall make the proceeds of the Grant Credit available to the Palestinian Authority PFI under a subsidiary agreement Subsidiary Loan Agreement to be entered into between the Recipient R2E2 Fund on behalf of the Borrower and the Palestinian Authority PFI, under terms and conditions which shall have been approved by the AdministratorAssociation, including the terms of the Sub-loans under Part B of the Project. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Loan Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Loan Agreement or any provision thereof. (e) If the Borrower determines that the PFI has used the funds provided under the Subsidiary Loan Agreement inefficiently or outside the scope and purpose specified in the Subsidiary Loan Agreement, the Borrower may request to return the amount of such funds, either in whole or in part, including the applicable interest calculated up to the payment with prior consultation and agreement with the Association. (a) Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the AdministratorAssociation, and furnish such update to the Administrator Association not later than twelve (12) months after the date of the preceding Procurement Plan, for the AdministratorAssociation’s approval. Section 3.03. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, end shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineeringand social services practices, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) For the purposes of Parts A.2 (a) and B.1 (c) of the Project, the Borrower shall make a portion of the proceeds of the Credit available to eligible Beneficiaries under a grant agreement (the Grant Agreement) to be entered into between the CAPMU, through the PIU, and each Beneficiary, under terms and conditions which shall have been approved by the Association and which shall include those set forth in Schedule 5 to this Agreement. (c) The Borrower shall exercise its rights under each Grant Agreement in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit, and, except as the Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive a Grant Agreement or any provision thereof. (d) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after before the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, agricultural, engineering, accounting, and environmental standards and public utility practices practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions any of its obligations under paragraph (a) of this Section and except as the Recipient and the Administrator Association shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authorityshall: (i) not later than during thirty (30) days after the date of this Agreement open a separate project account (Project Account) in a commercial bank acceptable to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forthAssociation and deposit into said Account an initial amount equivalent to US$15,000; (ii) thereafter maintain the Project Account, and replenish said Account promptly before the beginning of each calendar quarter with funds sufficient to take all action, including enable the provision of funds, facilities, services Recipient to meet its obligations under this Section for such period; (iii) use the amount in the Project Account exclusively for financing the Recipient’s contribution to Project expenditures; and other resources, necessary or appropriate (iv) ensure that sufficient annual allocations will be made in the Recipient’s budget for the carrying out Recipient’s counterpart contribution to the costs of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the AdministratorAssociation, and furnish such update to the Administrator Association not later than twelve (12) 12 months after the date of the preceding Procurement Plan, for the AdministratorAssociation’s approval. Section 3.03. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toRecipient shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Recipient and the AdministratorAssociation, a plan designed to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Recipient on said plan.

Execution of the Project. (a) The Recipient DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to this the Development Credit Agreement, and, to this end, shall cause the Palestinian Authority to shall: (i) carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental environmental, water, sewerage and public utility practices resettlement practices, and shall provide, or cause the Palestinian Authority to providebe provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Association and the Administrator DAWASA shall otherwise agree, the Recipient DAWASA shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 2 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 2.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 1 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, as said provisions may be further elaborated the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the Procurement PlanGeneral Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Recipient, through the Palestinian Authority, shall cause PMU toBorrower: (ai) prepare, on the basis of guidelines acceptable to the Administrator, Association and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between among the Palestinian Authority Association, the Borrower and the AdministratorDAWASA, a plan for the future operation of the Project designed to ensure the continued achievement of the Project’s objectivesits sustainability; and (bii) afford the Administrator Association a reasonable opportunity to exchange views with DAWASA and the Palestinian Authority Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into the Project Account shall be used exclusively to make payments to meet expenditures made or to be made in respect of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Credit.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project Project, through PMU MIGA, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as neededFramework Agreement, the fundsOperational Rules, facilities, services and other resources required for the ProjectEnvironmental and Social Safeguards Framework and appropriate administrative and financial practices. (b) Without limitation or restriction upon its obligations under the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agreeDevelopment Credit Agreement, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate for to enable MIGA to perform all its obligations under the carrying out of Framework Agreement and the Project; and (iii) Operational Rules or any other applicable legal agreement. The Borrower shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approvalperformance. Section 3.033.02. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after before the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan designed to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said the plan. (a) The Borrower shall, after the Facility has been fully implemented (including if at the Closing Date no guarantees have been issued) and all guarantee commitments have expired or been cancelled in accordance with the provisions of the Framework Agreement, be entitled to withdraw the Unwithdrawn Facility Amount from the Facility Account for the purposes of financing Critical Imports, subject to the provisions of this Section 3.03 and paragraph C of Schedule 3 to this Agreement. (b) The Borrower undertakes that the Unwithdrawn Facility Amount shall be used to finance Critical Imports and shall not be used to finance expenditures excluded pursuant to the provisions of paragraph C.2 of Schedule 3 to this Agreement. If the Association shall have determined at any time that the Unwithdrawn Facility Amount shall have been used to make a payment for an expenditure so excluded, the Borrower shall, promptly upon notice from the Association, pay such amount to the Association or apply such amount as agreed with the Association. Amounts paid to the Association upon such request shall be applied by the Association as a refund of the Credit.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out Parts A, C, D and E of the Project through PMU MIREME with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, energy and environmental and public utility practices practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any of its other obligations under the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agreeDevelopment Credit Agreement, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) EdM to perform in accordance with the provisions of the Subsidiary Project Agreement all of the obligations of the Palestinian Authority EdM therein set forth; (ii) forth with respect to Part B of the Project, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable EdM to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (ec) The Recipient Borrower shall relend the proceeds of the Credit for Part B of the Project to EdM in the amount of twelve million eight hundred thousand Special Drawing Rights (SDR 12,800,000) under a Subsidiary Loan Agreement to be entered into between the Borrower and EdM, under terms and conditions which shall have been approved by the Association which shall include: (i) the principal amount of the subsidiary loan shall be repaid by EdM in Metical to the Borrower over twenty (20) years, including a grace period of five (5) years, with the interest incurred during such grace period capitalized and repaid under the same terms and conditions as the principal amount; (ii) the principal amount of the subsidiary loan repayable by EdM shall be the equivalent in Metical of the value of the currency or currencies withdrawn from Special Account B, determined as of the date, or respective dates of withdrawal from such account; (iii) interest shall be charged on the outstanding balance of the subsidiary loan at a rate of five per cent (5%) per annum; and (iv) the foreign exchange risk shall be borne by EdM. (d) The Borrower shall exercise its rights under the Subsidiary Loan Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Loan Agreement or any provision thereof. (e) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts A, C, D and E of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after before the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan. Section 3.04. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part B of the Project shall be carried out by EdM pursuant to Section 2.03 of the Project Agreement.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project Project, through PMU the PCU and the TIU, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineeringengineering and environmental practices, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule POM and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall make the proceeds of the Grant Credit available to the Palestinian Authority MOCIT and NBA, respectively, under a subsidiary agreement loan agreements to be entered into between the Recipient Borrower’s Ministry of Finance and the Palestinian Authority MOCIT and NBA, respectively, under terms and conditions which shall have been approved by the Administrator.Association, and which shall include, with respect to the Subsidiary Loan Agreement with MOCIT, that MOCIT: (i) will provide Azeri Post with the appropriate managerial autonomy and accountability necessary for the successful completion of the Project and for direct participation in the national payment system; and (ii) will enable Azeri Post to obtain the necessary licenses, as needed, to establish and operate a satellite-based network for postal offices, provided it has satisfied the technical parameters; and (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement Loan Agreements or any provision thereof. (a) Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient Borrower shall update the Procurement Plan in accordance with guidelines terms of reference acceptable to the AdministratorAssociation, and furnish such update to the Administrator Association not later than twelve (12) months after the date of the preceding Procurement Plan, for the AdministratorAssociation’s approval. Section 3.03. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall end shall: (i) carry out Part B of the Project through MEC; (ii) carry out Part C of the Project through MoH; and (iii) cause the Palestinian Authority IBGE to carry out Part A of the Project through PMU Project, all with due diligence and efficiency, efficiency and in conformity with appropriate economic, administrative, financial, engineering, environmental and public utility practices social practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon The Borrower shall, during the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions implementation of the Master Schedule Project: maintain in MoH; and cause IBGE to maintain, Project implementation units (PIUs) with functions and responsibilities satisfactory to the Implementation Program set forth in Schedule 4 to this AgreementBank. (c) The Recipient Borrower shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary enter into an agreement to be entered into between the Recipient and the Palestinian Authority with IBGE, under terms and conditions which shall have been approved by satisfactory to the AdministratorBank, to set forth their respective responsibilities in the implementation and coordination of Part A of the Project, including IBGE’s obligation to establish and maintain: (i) the IBGE Unit; and (ii) a social statistics committee, with powers and responsibilities satisfactory to the Bank, to monitor and evaluate the statistical information demands of other governmental agencies. (d) The Recipient shall cause the Palestinian Authority: Borrower shall: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights and carry out its obligations under the Subsidiary IBGE Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate abrogate, suspend, waive, terminate or waive fail to enforce the Subsidiary IBGE Agreement or any provision thereof; and (ii) cause IBGE to carry out its obligations and exercise its rights under the IBGE Agreement, in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan. (a) Except as the Administrator Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for Parts A and C of the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement PlanPlans. (b) The Recipient Borrower shall update the Procurement Plan Plans in accordance with guidelines acceptable to the AdministratorBank, and furnish such update updates to the Administrator Bank not later than twelve (12) 12 months after the date of the preceding Procurement PlanPlans, for the AdministratorBank’s approval. (c) MEC shall furnish to the Bank for its technical comments the terms of reference of the consultants to be employed for purposes of Part B of the Project. Section 3.03. For the purposes of Section 8.06 The Borrower shall: (a) carry out Part C of the General Conditions and without limitation theretoProject through MoH; and (b) cause IBGE to carry out Part A of the Project, in accordance with an operational manual, said manual to include, inter alia, the Recipientprocedures for the carrying out, monitoring and evaluation of the Project (including the procurement, financial and disbursement requirements thereof and the Performance Indicators). In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.04. The Borrower shall through the Palestinian AuthorityMEC and MoH, shall and cause PMU IBGE to: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Performance Indicators, the carrying out of the Project and the achievement of the objective thereof; (b) prepare, on the basis under terms of guidelines acceptable reference satisfactory to the AdministratorBank, and furnish to the Administrator Bank, not later than six (6) months after the Closing DateEffective Date and biannually thereafter during the period of Project implementation, or three reports, one each for MEC, MoH and IBGE, comprising the results of the evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of such later date as may be agreed for this purpose between report and setting out the Palestinian Authority and the Administrator, a plan measures recommended to ensure the continued efficient carrying out of the Project and the achievement of the Project’s objectivesobjective thereof during the period following such date; and (c) (i) review with the Bank, within no more than two months after each such report’s preparation, the reports referred to in paragraph (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.of this Section; and

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialfinancial and educational practices, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this the Development Credit Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the DFID Grant shall be governed by the provisions of Schedule 3 2 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Administrator’s approvalAdministrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. Section 3.03. (c) For all expenditures with respect to which withdrawals from the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, DFID Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit for the fiscal year in which the last withdrawal from the DFID Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator, and furnish ’s representatives to the Administrator not later than six (6) months after the Closing Date, or examine such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesrecords; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) afford of this Section and that the Administrator report of such audit contains a reasonable opportunity separate opinion by said auditors as to exchange views whether the statements of expenditure submitted during such fiscal year, together with the Palestinian Authority on said planprocedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU the office of the Minister of Flood Recovery with due diligence and efficiency, efficiency and in conformity with appropriate administrativeengineering, financial, engineeringadministrative and environmental practices, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Bank shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 5 to this Agreement. (c) The Recipient Borrower shall make the proceeds of the Grant Loan available to the Palestinian Authority Beneficiaries under a subsidiary agreement Funding Agreement to be entered into between the Recipient Borrower and the Palestinian Authority each Beneficiary, under standard terms and conditions which shall have been approved by the AdministratorBank and which shall include, inter alia, provisions with respect to: (i) a description of the activity to be financed under the Funding Agreement and the amount to be made available to the Beneficiary for the implementation thereof; (ii) the provision to the Beneficiary of the Loan amount allocated to such activity in the form of a grant; (iii) the arrangement for implementation of such activity under the overall supervision of the PCU; (iv) undertakings of the Beneficiary to maintain separate records and accounts for such activity and to furnish the PCU with quarterly reports on progress of the implementation thereof; (v) the obligation of the Beneficiary to undertake, under the overall supervision of the PCU, the procurement of goods and works under such activity in accordance with the provisions of Schedule 4 to this Agreement; and (vi) the technical assistance needs, if any, to be provided to the Beneficiary for implementation of the activity. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights under the Subsidiary any Funding Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary a Funding Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.08 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrativebusiness, financialfinancial and accounting practices, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) four months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s approvalrepresentatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the proce-dures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.033.04. For Without limitation upon the purposes applicable provisions of Section 8.06 Article IX of the General Conditions and without limitation theretoConditions, the Recipient, through the Palestinian Authority, shall cause PMU toRecipient shall: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Recipient and the Administrator, a plan designed to ensure the continued achievement sustainability of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority Recipient on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU HDA-PIU and the Project Implementation Agencies with due diligence and efficiency, efficiency and in conformity with appropriate administrativeengineering, financial, engineeringadministrative and environmental practices, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Bank shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 5 to this Agreement. (c) The Recipient Borrower shall make the proceeds of the Grant Loan available to the Palestinian Authority each Project Implementation Agency under a subsidiary agreement Protocol to be entered into between the Recipient HDA and the Palestinian Authority each Project Implementation Agency, under standard terms and conditions which shall have been approved by the AdministratorBorrower and the Bank and which shall include, inter alia, provisions with respect to: (i) description of the activity to be financed under the Protocol and the amount of the proceeds of the Loan to be made available to the Project Implementation Agency for the implementation thereof; (ii) the arrangement for implementation of such activity under the overall supervision of the PIU; (iii) undertakings of the Project Implementation Agency to maintain separate records and accounts for such activity and to furnish the PIU with quarterly reports on progress of the implementation thereof; (iv) the obligation of the Project Implementation Agency to undertake, under the overall supervision of the PIU, the procurement of goods and works under such activity in accordance with the provisions of Schedule 4 to this Agreement; and (v) the technical assistance needs, if any, to be provided to the Project Implementation Agency for implementation of the activity. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement each Protocol in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement any Protocol or any provision thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.08 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, shall cause the Palestinian Authority ONATRA and SNCZ to carry out the Project through PMU with due diligence Parts A and efficiencyB thereof, in conformity with appropriate administrativerespectively, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions pro- visions of the Subsidiary Agreement Project Agreements all of the other obligations of the Palestinian Authority ONATRA and SNCZ therein set forth; (ii) , shall take and cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable ONATRA and (iii) SNCZ to perform such obligations, and shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (eb) The Recipient Borrower shall relend to ONATRA the proceeds of the Credit allocated to and withdrawn under Categories I through 5 in the table set forth in paragraph I of Schedule I to this Agreement, and to SNCZ the amount allocated to and withdrawn under Categories 6 through 10 in such table, under subsidiary loan agreements to be entered into between the Borrower and ONATRA (the ONATRA Subsidiary Loan Agreement) and SNCZ (the SNCZ Subsidiary Loan Agreement), each under terms and conditions which shall have been approved by the Association and which shall include interest at the rate of 7.65% per annum, a term of 20 years including 5 years’ grace and the assumption of the exchange risk by ▇▇▇▇▇▇ and SNCZ. (c) The Borrower shall exercise its rights under the ONATRA and SNCZ Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, Borrower and those of the Palestinian Authority and the Administrator Association and to accomplish the purposes of the GrantCredit, and, and except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the either Subsidiary Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable 2 to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approvalProject Agreements. Section 3.03. For The Borrower and the purposes of Section 8.06 Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and without limitation theretoservices, the Recipientplans and schedules, through the Palestinian Authorityrecords and reports, shall cause PMU to: (amaintenance and land acquisition, respectively) prepare, on the basis in respect of guidelines acceptable to the Administrator, Parts A and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement B of the Project’s objectives; and (b) afford Project shall be carried out by ONATRA and SNCZ, respectively, pursuant to Section 2.03 of the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said planProject Agreements.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall: (i) ensure that each Participating Bank shall cause perform in accordance with its Respective Project Agreement all of the Palestinian Authority obligations of the Participating Bank therein set forth; (ii) take all action necessary or appropriate to carry out enable the Project through PMU Participating Bank to perform such obligations; and (iii) not take any action which would prevent or interfere with due diligence and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Projectsuch performance. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient Borrower shall make the proceeds of the Grant Credit available to the Palestinian Authority PA under a subsidiary agreement to be entered into between the Recipient Borrower and the Palestinian Authority PA, under terms and conditions which shall have been approved by the Administrator. (c) The Borrower shall cause the PA to make the proceeds of the Credit available to Participating Banks under subsidiary loan agreements to be entered into between the PA (on behalf of the Borrower) and each of said Participating Banks, under terms and conditions which shall have been approved by the Administrator, including the following: (i) the Borrower shall lend to the respective Participating Bank the amount in dollars allocated from time to time to such Participating Bank in the table set forth in paragraph 1 of Schedule 1 to this Agreement and the Participating Bank shall repay such amount in dollars pursuant to the terms and conditions set forth in its respective Subsidiary Loan Agreement, including those set forth here below; (ii) the Subsidiary Loan shall be charged on the principal amount thereof (A) withdrawn and outstanding from time to time, interest at the rate of 1.25% per annum, and (B) not withdrawn from time to time at the same rate applicable to the Credit pursuant to Section 2.04 (a) of this Agreement; and (iii) the Subsidiary Loan shall be repaid over a period of twenty (20) years, including a grace period of ten (10) years. (d) The Recipient Borrower shall cause the Palestinian Authority: (i) PA to perform perform, in accordance with the provisions of the Subsidiary Agreement Loan Agreements, all of the obligations of the Palestinian Authority PA therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall cause the PA to exercise its rights under the each Subsidiary Loan Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator and to accomplish the purposes of the GrantCredit, and, except as the Administrator shall otherwise agree, the Recipient Borrower shall cause the PA not to assign, amend, abrogate or waive the any Subsidiary Loan Agreement or any provision thereof. (a) Except as Section 3.02. The Borrower and the Administrator shall otherwise agreehereby agree that the obligations set forth in Sections 9.03, procurement of the goods9.04, works 9.05, 9.06, 9.07 and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.08 of the General Conditions (relating to insurance, use of goods and without limitation theretoservices, the Recipientplans and schedules, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administratorrecords and reports, and furnish maintenance, respectively) shall be carried out, respectively, by AB, CBP and JNB, each pursuant to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement Section 2.03 of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said planits Respective Project Agreement.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, shall cause the Palestinian Authority SAT pursuant to carry out the Project through PMU with due diligence and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of to carry out the obligations of the Palestinian Authority therein set forth; (ii) Project with due diligence and efficiency and in conformity with appropriate financial, management, administrative and taxation practices, and shall take or cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for to enable the carrying SAT to carry out of the Project; , and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the ProjectProject by the SAT. (eb) The Recipient Borrower shall make the proceeds of the Loan available to the SAT under a subsidiary agreement (the Subsidiary Agreement) to be entered into between the Borrower and the SAT, under terms and conditions satisfactory to the Bank which shall include, inter alia, the SAT’s obligation to carry out the Project in accordance with the provisions of this Agreement. (c) The Borrower shall exercise its rights and comply with its obligations under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the Grant, Loan and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate abrogate, terminate, waive or waive fail to enforce the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.08 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, Borrower shall cause PMU the SAT to: : (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan designed to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineeringand educational practices, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) For the purposes of overall Project coordination, the Borrower shall enter into an agreement with NTF on such terms as shall be acceptable to the Bank which shall include terms specifying the responsibilities of NTF in respect of coordination of Project activities, accounting, preparation of requests for withdrawals from the Loan Account, procurement and administrative support. (c) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Bank shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 5 to this Agreement. (cd) The Recipient Borrower: (i) shall make relend out of the proceeds of the Grant available Loan amounts allocated from time to time under Category (56) of the Palestinian Authority table set forth in paragraph 1 of Schedule 1 to this Agreement to Regions under a subsidiary agreement Sub-Loan Agreements to be entered into between the Recipient Borrower and each of the Palestinian Authority Regions under terms and conditions which shall have been approved by satisfactory to the Administrator. (d) The Recipient shall cause Bank, including, without limitations, the Palestinian Authority: (i) terms and conditions specified in Schedule 7 to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forththis Agreement; (ii) to take all action, including make available the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out proceeds of the ProjectLoan amounts allocated from time to time under Categories (1) and (2, (2) and (3) of the table set forth in paragraph 1 of Schedule 1 to this Agreement to the Higher Education Institutions under financial arrangements which shall include Sub-Loans and gGrants in accordance with paragraph 43 of Schedule 5 to this Agreement; and (iii) not make available the proceeds of the Loan amounts allocated from time to take or permit time under Category (45) (c) of the table set forth in paragraph 1 of Schedule 1 to be taken any action which would prevent or interfere this Agreement as grants to authors and publishers in accordance with the carrying out of procedures set forth in the ProjectOperational Manual. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement Sub-Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate abrogate, or waive the Subsidiary Agreement Sub-Loan Agreements or any provision thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.08 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end: (i) shall, shall cause through the Palestinian Authority to PCU, coordinate all Parts of the Project and carry out Parts A, C and E of the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialtransportation, engineering, financial and environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for such Parts of the Project.; and (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) without limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause ENAFER and MLM to perform all their obligations set forth in, respectively, the ENAFER Project Agreement and the MLM Project Agreement, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable ENAFER and (iii) MLM to perform such obligations, and shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (eb) The Recipient Borrower shall relend a portion of the proceeds of the Loan to ENAFER and MLM under subsidiary loan agreements to be entered into between the Borrower and, respectively, ENAFER and MLM, under terms and conditions which shall have been approved by the Bank. (c) The Borrower shall exercise its rights under the ENAFER Subsidiary Loan Agreement and the MLM Subsidiary Loan Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the ENAFER Subsidiary Loan Agreement or the MLM Subsidiary Loan Agreement, or any provision thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for Parts A, C and E of the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement. Section 3.03. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, as said provisions may 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts B and D of the Project shall be further elaborated carried out by, respectively, ENAFER and MLM pursuant to Section 2.03 of the Project Agreements. Section 3.04. The Borrower shall maintain in MTCC the Procurement Planproject coordination unit with staff in sufficient numbers and with qualifications and experience acceptable to the Bank in accordance with terms of reference for the PCU acceptable to the Bank, which shall include, inter alia, responsibility for overall Project coordination (including the preparation of the reports referred to in Section 3.07 (a) below, processing of disbursement requests and management of the Special Account) and for the execution of Parts A, C and E of the Project (including the procurement of goods, works and services, progress monitoring, supervision of suppliers, contractors and consultants, and management of the account referred to in Section 4.02 of this Agreement). (a) The Borrower shall ensure proper coor- dination of the activities under Part C of the Project with the operations of CORPAC at Lima Airport and, to that end, shall establish a coordinating committee to be chaired by the Minister or Vice-Minister of MTCC. (b) The Recipient shall update Prior to signing the Procurement Plan in accordance with guidelines acceptable to construction contract for the Administrator, and furnish such update to the Administrator not later than twelve runway rehabilitation of Lima Airport under Part C (121) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation theretoProject, the Recipient, through Borrower shall: (i) engage an independent expert to advise the Palestinian Authority, shall cause PMU to:Minister or the Vice- Minister for Transport; and (ii) engage consultants for construction supervision. (a) prepare, on The Borrower shall require all contractors carrying out works under Part A of the basis of guidelines Project to use an environ- mental manual acceptable to the AdministratorBank, said manual to include, inter alia: (i) the applicable environmental and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority natural resource legislation and the Administrator, a plan to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.regulations;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU the Directorate General of Urban and Rural Development of its Ministry of Settlements and Regional Infrastructure with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental and public utility practices financial practices, and with due regard to ecological and environmental factors, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (ca) The Recipient Borrower shall make available out of the proceeds of the Grant available Credit the amounts allocated from time to time to Category (1) of the Palestinian Authority table in paragraph 1 of Schedule 1 to this Agreement to selected Participating Local Governments under a subsidiary agreement Subsidiary Loan Agreements to be entered into between the Recipient Borrower and the Palestinian Authority selected Participating Local Governments, under terms and conditions which shall have been approved by the AdministratorAssociation. (db) The Recipient Borrower shall cause make available out of the Palestinian Authority: proceeds of the Credit to the Participating Local Governments, on a grant basis, the amount allocated from time to time to Category (i2) of the table in paragraph 1 of Schedule 1 to perform this Agreement, in accordance with conditions which shall have been approved by the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the ProjectAssociation. (ec) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Loan Agreement or any provision thereof. (a) Section 3.03. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.033.04. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after before the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan designed to ensure the continued achievement of the objectives of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives Objectives of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and without any limitation or restriction upon any of its other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to obligations under this Agreement. (c) The Recipient , shall make the proceeds of the Grant available take all reasonable action within its power to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) COTCO to perform in accordance with the provisions of the Subsidiary COTCO Project Agreement all of the obligations of the Palestinian Authority COTCO therein set forth; (ii) , shall take or cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable COTCO to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (eb) The Recipient Borrower shall make the proceeds of the Cameroon Loan available to COTCO under a funding agreement to be entered into between COTCO and the Borrower, under terms and conditions which shall have been approved by the Bank. (c) The Borrower shall exercise its rights under the Subsidiary COTCO Shareholder Funding Agreement and the COTCO Governmental Funding Agreement to which the Borrower is party, in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantCameroon Loan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive (except as set forth in the Subsidiary Direct Agreements with the Republics and other loan and security documents entered into with the Senior Lenders (or a trustee or agent on their behalf) pursuant to which a party: (i) may be required not to exercise or may be required to cease to exercise remedies against a counterparty during a certain period of time in order for such counterparty to cure or contest the event or circumstance giving rise to such remedy or for the Senior Lenders (or their representatives) to exercise their security or substitution rights, or (ii) consents to the assignment of the Core Project Documents to the Senior Lenders) the COTCO Shareholder Funding Agreement and the COTCO Governmental Funding Agreement to which the Borrower is a party or any provision thereof. (d) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Bank shall otherwise agree, the Borrower shall assist COTCO in carrying out Part C of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for Part C of the Project and to be financed out of the proceeds of the Grant Cameroon Loan shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable 1 to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approvalCOTCO Project Agreement. Section 3.03. For the purposes of Section 8.06 9.08 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, Borrower shall cause PMU take steps to: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan for its future actions to ensure support the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in: (i) Sections 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedule s, records and reports, and maintenance, respectively) in respect of Part C of the Project, shall be carried out by COTCO pursuant to Section 2.03 of the COTCO Project Agreement; and (ii) Section 9.09 of the General Conditions (relating to land acquisition) in respect of Part C of the Project shall be carried out by the Borrower and COTCO, in accordance with their respective obligations under the relevant provisions of the COTCO Convention.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under the Loan Agreement, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project.cause: (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) Pusan to perform in accordance with the provisions provi- sions of the Subsidiary Pusan Project Agreement all of the obligations of the Palestinian Authority Pusan therein set forth; (ii) , shall take or cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable Pusan to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with such performance, and (ii) Taejon to perform in accordance with the carrying provisions of the Taejon Project Agreement all the obligations of Taejon therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable Taejon to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall relend an amount equivalent to $20,000,000 out of the Projectproceeds of the Loan to Pusan under the Pusan Subsidiary Loan Agreement to be entered into between the Borrower and Pusan, under terms and conditions which shall have been approved by the Bank which shall include those set forth in paragraph 1 of the Schedule to the Pusan Project Agreement. (ec) The Recipient Borrower shall relend an amount equivalent to $20,000,000 out of the proceeds of the Loan to Taejon under the Taejon Subsidiary Loan Agreement to be entered into between the Borrower and Taejon, under terms and conditions which shall have been approved by the Bank which shall include those set forth in paragraph 1 of the Schedule to the Taejon Project Agreement. (d) The Borrower shall exercise its rights under the Pusan and Taejon Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive either the Pusan Subsidiary Loan Agreement or the Taejon Subsidiary Loan Agreement or any provision of either thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services goods required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For The Bank and the purposes of Section 8.06 Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and without limitation theretoservices, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by Pusan and Taejon pursuant to Section 2.03 of each of the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority Pusan Project Agreement and the AdministratorTaejon Project Agreement, a plan to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said planrespectively.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, shall cause the Palestinian Authority to carry out Part B.1 of the Project through PMU the National Office for Vocational Training under the Ministry for National Education, Part B.2 of the Project through the Secretariat of Employment, Part B.4 of the Project through ASACE, Part B.5 of the Project through CICES, and Part C of the Project through MDIA, all with due diligence and efficiency, efficiency and in conformity with appropriate administrativefinancial and administrative practices, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. For purposes of carrying out Part A of the Project, the Borrower shall enter into a Protocol with BCEAO under terms and conditions acceptable to the Association which shall include: (a) eligibility criteria for Participating Banks and Invest- ment Projects, Sub-loan processing procedures, the definition of BCEAO’s responsibilities regarding the administration of the line of credit to be provided under Part A.1 of the Project and the carrying out of Part A.2 of the Project; (b) Without limitation upon the provisions obligation of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority BCEAO to carry out the Project through PMU in accordance enter into Subsidiary Loan Agreements with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority Participating Banks under terms and conditions which shall have been approved by the AdministratorAssociation which shall include an interest rate of five percent (5%) per annum; and (c) the obligation of BCEAO to ensure that the Participating Banks enter into Investment Agreements with Investment Enterprises under terms and conditions acceptable to the Association which shall include the terms set forth in paragraph A.2 of Schedule 4 to this Agreement. Section 3.03. (da) The Recipient shall cause When presenting a Sub-loan to the Palestinian AuthorityAssocia- tion for approval, the Borrower shall, through BCEAO, furnish to the Association an application, in a form satisfactory to the Association, together with: (i) to perform in accordance with the provisions a description of the Subsidiary Agreement all Investment Enterprise and an evaluation of the obligations Investment Project, including a report on the fulfillment of the Palestinian Authority therein criteria set forth; (ii) forth in Part A.1 of Schedule 4 to take all actionthis Agreement, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out a description of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and expendi- tures proposed to be financed out of the proceeds of allocated to Category 1 in the Grant shall be governed by the provisions table set forth in paragraph 1 of Schedule 3 1 to this Agreement, as said provisions may be further elaborated in ; (ii) the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, proposed terms and furnish such update to the Administrator not later than twelve (12) months after the date conditions of the preceding Procurement PlanSub- loan, for including the Administrator’s approval. Section 3.03. For the purposes schedule of Section 8.06 amortization of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority Sub-loan and the Administratorterms and conditions set forth in Part A.2 of Schedule 4 to this Agreement; and (iii) such other information as the Associa- tion shall reasonably request; provided, a plan to ensure however, that no prior approval by the continued achievement Association shall be required for Sub-loans if the same Participating Bank already had prepared two Sub-loans which were approved by the Association and the amount of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said planproposed Sub-loan does not exceed CFAF 100 million.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU SAS, with the assistance of the Participating Organizations, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, agricultural, cultural, educational, environmental, financial, engineeringmanagerial, environmental social, and public utility practices technical practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement. (a) The Borrower shall carry out the Project in accordance with a manual (the Operational Manual), acceptable to the Bank, said manual to include, inter alia: (i) an institutional implementation plan of SAS for the management of the Project (including, inter alia, allocation of responsibilities within staff, yearly planning of activities and budget and time allocation for those activities); (ii) the procurement, financial management, project implementation plans and environmental guidelines to be followed during Project implementation by the Borrower and the Participating Organizations; (iii) the guidelines for the preparation of the Annual Action Plans; (iv) the criteria and procedures for: (A) the selection of Participating Organizations to receive Subproject Grants; (B) the preparation, review, approval and implementation of Subprojects (including, inter alia, the appropriate environmental requirements, a suggested list of possible activities to be carried out under Subprojects and a negative list of activities that cannot be carried out under Subprojects); (C) the financial management procedures applicable to the Subprojects; and (D) the procurement and contracting procedures applicable to goods, works and consultant’s services procured by the Participating Organizations under Subprojects; and (v) the Model Forms of the Subproject Agreements. (b) Except as the Borrower, through SAS, and the Bank may otherwise agree in writing, the Borrower shall not amend, suspend, abrogate, waive or otherwise fail to enforce the Operational Manual or any provision thereof. (c) In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.04. The Borrower shall: (a) not later than October 15 of each year during Project implementation, starting in year 2002, furnish to the Bank, for its approval, an annual action plan (the Annual Action Plan), each said provisions may plan to include, inter alia: (i) the Project activities to be further elaborated carried out by the Borrower with the assistance of the Participating Organizations, during the calendar year following the presentation of each said plan; (ii) the procurement plan, disbursement schedule, and chart of accounts for each said calendar year; and (iii) the amount of counterpart funds needed and to be provided by the Borrower to carry out the Project during said calendar year; (b) thereafter implement each said Annual Action Plan, approved by the Bank, in accordance with its terms; and (c) carry out the Annual Action Plan for the year 2002 as approved by the Bank prior to the date of this Agreement. (a) Upon approval of the corresponding Annual Action Plan by the Bank, the Borrower shall: (i) enter into an agreement or amend an existing agreement (the Subproject Agreement) with each relevant Participating Organization, on terms and conditions satisfactory to the Bank, including, inter alia, the obligation of each said Participating Organization to assist the Borrower in the Procurement Planimplementation of the corresponding Annual Action Plan and to follow the provisions of the Operational Manual; and (ii) cause each relevant Participating Organization to carry out its obligations under each Subproject Agreement, respectively. (i) The Borrower shall exercise its rights and carry out its obligations under each Subproject Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate, terminate, waive or fail to enforce any Subproject Agreement or any provision thereof. (c) In case of any conflict among the terms of any Subproject Agreement, the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) The Borrower shall establish, and thereafter operate and maintain within SAS, at all times during Project implementation, a Project coordination unit (the PCU) with a structure, functions and responsibilities acceptable to the Bank, including, inter alia, the responsibility of the PCU to assist the Borrower in the coordination, monitoring and supervision of the Project. (b) The Recipient Borrower shall update ensure that the Procurement Plan PCU is, at all times during Project implementation, headed by a Project coordinator and staffed with a financial director, an administrative director, a procurement specialist and other professional and administrative staff, all hired through competitive processes, with qualifications and experience acceptable to the Bank. Turnover of PCU staff shall be duly justified by the Borrower, through SAS, and said justification shall be satisfactory to the Bank. Section 3.07. The Borrower shall: (a) maintain or cause to be maintained policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with guidelines acceptable the indicators set forth in the Implementation Letter and the data produced by the monitoring and evaluation program referred to in Part C.3 of the Project, the carrying out of the Project and the achievement of the objective thereof; (b) prepare, under terms of reference satisfactory to the AdministratorBank, and furnish such update to the Administrator Bank, each December 31 and June 30 during Project implementation, starting with the report due not later than twelve December 31, 2002, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (12a) months after of this Section, on the progress achieved in the carrying out of the Project during the calendar semester preceding the date of presentation of the preceding Procurement Planreport and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objective thereof during the following calendar semester; (c) review with the Bank, within sixty days (60) of receipt of such report, or such later date as the Borrower and the Bank shall agree, the pertinent reports referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objective thereof, based on the conclusions and recommendations of said reports and the Bank’s views on the matter; (d) employ independent auditors, under terms of reference satisfactory to the Bank, to monitor the eligibility of Participating Organizations and compliance with the requirements of the Operational Manual in respect of Subproject Grants; (e) provide to the Bank for its review, the Administrator’s approvalfirst three urban and the first three rural subprojects to be approved each calendar year during Project implementation; and (f) carry out an in-depth review (the Mid-Term Review) jointly with the Bank, by December 31, 2004, or such later date as the Bank shall agree, on the progress achieved in the implementation of the Project. Section 3.033.08. Without limitation to the provisions of Section 3.01 of this Agreement, the Borrower shall include in each proposed annual budget to its legislature, and make available each year of Project implementation, promptly as needed, in Guaraníes, the minimum amounts set forth in Section 3.04 (a) (iii) of this Agreement, as counterpart funds for the carrying out of the Project. Section 3.09. For the purposes of Section 8.06 9.07 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan designed to ensure the continued achievement sustainability of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause the Palestinian Authority PNOC-EDC to carry out the Project through PMU with due diligence and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Project Agreement all of the obligations of the Palestinian Authority PNOC- EDC therein set forth; (ii) , all with due diligence and efficiency and in conformity with appropriate economic, energy, engineering, financial, administrative and environmental practices, and shall promptly take or cause to take be taken all action, including the provision of funds, facilities, services and other resources, resources necessary or appropriate for the carrying out of the Project; appropriate, to enable PNOC-EDC to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (ea) The Recipient Borrower shall relend the entire proceeds of the Loan to PNOC-EDC under a Subsidiary Loan Agreement to be entered into between the Borrower and PNOC-EDC, under terms and conditions which shall have been approved by the Bank. (b) The Borrower shall exercise its rights and obligations under the Subsidiary Loan Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank, and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement Loan Agreement, or any provision thereof. Section 3.03. The Borrower shall take all action necessary to ensure that: (a) Except as the Administrator shall otherwise agree, procurement any adverse environmental impact of the goodsProject, works or any part thereof, is mitigated in a timely manner which is acceptable to the Bank; and consultants’ services required (b) adequate measures are promptly adopted and carried out for the Project resettlement and to be financed out rehabilitation of the proceeds persons involuntarily displaced as a result of the Grant shall be governed Project, or any part thereof, all in accordance with a resettlement plan previously approved by the Bank. Section 3.04. Without limitation or restriction upon the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.01 of the General Conditions and without limitation theretoConditions, beginning on June 30, 1994, the Recipient, through Borrower shall furnish to the Palestinian Authority, shall cause PMU to: Bank: (a) preparequarterly Project procurement progress reports and quarterly Project implementation progress reports, on of such scope and detail as the basis of guidelines acceptable to Bank shall reasonably request, covering the Administrator, progress achieved by the Borrower and furnish to PNOC-EDC during the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesimmediately preceding quarter; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out out: (i) Parts A, B, C.2 and D of the Project through PMU SEDUC; and (ii) Part C.1 of the Project through SARE and SEPLAN, all with due diligence and efficiency, efficiency and in conformity with appropriate educational, economic, technical, administrative, financial, engineering, environmental and public utility practices social practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall maintain, during the implementation of the Project, the Project Coordination Unit and a Special Bidding Committee with functions and responsibilities satisfactory to the Bank, at all times headed by a Project coordinator and assisted by staff in adequate numbers, all with qualifications and experience acceptable to the Bank. (c) The Borrower shall, through SEDUC, prior to submitting the Loan withdrawal application for the respective PME School Subproject, enter into an agreement with each School Subproject Implementation Entity, under terms and conditions satisfactory to the Bank, substantially in accordance with the terms of the Model PME School Subproject Implementation Agreement, setting forth, inter alia: (i) the terms and conditions for the financing of the PME School Subprojects; and (ii) the obligation of the School Subproject Implementation Entity to carry out the PME School Subproject in accordance with the provisions of the Operational Manual, the PDE Guidelines and PME Guidelines. (d) The Borrower shall, through SEDUC, prior to submitting the Loan withdrawal application for related expenditures under Part B.2 of the Project, enter into an agreement with each municipality with jurisdiction over the schools participating in Part B.2 of the Project and those serving Quilombola students, under terms and conditions satisfactory to the Bank, substantially in accordance with the terms of the Model Municipality Cooperation Agreement, setting forth, inter alia, the municipality’s obligation: (i) to propose the Municipal Schools that could participate in the Project; and (ii) to cooperate in the execution of the activities included therein in accordance with the provisions of the Operational Manual. (e) The Borrower shall: (i) not later than twenty-four months from the Effective Date, start the construction of Indigenous Schools, mentioned in the Indigenous Peoples and Quilombolas Action Plan, in accordance with the environmental guidelines applicable to school construction in rural areas set forth in the Guarantor’s document, issued by its Minister of Education and Culture, and entitled “Subsidios para a Elaboração de Projetos e Adequação de Edificações Escolares, MEC/Fundescola 2002”; and (ii) ensure that the contractors hired to construct such schools abide by the environmental requirements of such guidelines, and that all works are finalized not later than forty-two months after the Effective Date. (f) The Borrower shall exercise its rights and carry out its obligations under each of the Subproject Implementation Agreements and Municipality Cooperation Agreements, in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce any Subproject Implementation Agreement or Municipality Cooperation Agreement. (g) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agreeabove, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authoritywith: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forthPerformance Indicators; and (ii) to take all action, including the provision of funds, facilities, services Indigenous Peoples and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the ProjectQuilombolas Action Plan. (eh) The Recipient shall exercise its rights under Borrower shall, through SEDUC, enter into agreements or make other institutional arrangements with the Subsidiary Agreement in such manner Guarantor’s agencies concerned with Indigenous Peoples and Quilombolas as to protect needed for the interests implementation of the Recipient, the Palestinian Authority Indigenous Peoples and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereofQuilombolas Action Plan. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ ' services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) . The Recipient Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the AdministratorBank, and furnish such update to the Administrator Bank not later than twelve (12) 12 months after the date of the preceding Procurement Plan, for the AdministratorBank’s approval. Section 3.03. For The Borrower shall carry out the purposes of Section 8.06 of Project in accordance with an operational manual, satisfactory to the General Conditions and without limitation theretoBank, the Recipientsaid manual to include, through the Palestinian Authority, shall cause PMU tointer alia: (a) the procedures for the carrying out, monitoring and evaluation of the Project (including the procurement, financial and environmental requirements thereof); (b) the criteria for the approval, implementation and monitoring of PME School Subprojects and for the financing of the related Grants; and (c) a model agreement: (i) for implementation of PME School Subprojects; and (ii) for municipal cooperation in the PME School Subprojects carried out in Municipal Schools. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.04. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Performance Indicators, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, on the basis under terms of guidelines acceptable reference satisfactory to the AdministratorBank, and furnish to the Administrator Bank, not later than six (6) twelve months after the Closing Date, or such later date as may be agreed for this purpose between Effective Date and yearly thereafter during the Palestinian Authority and the Administratorperiod of Project implementation, a plan report integrating the results of the evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of such report and setting out the measures recommended to ensure the continued efficient carrying out of the Project and the achievement of the Project’s objectivesobjectives thereof during the period following such date; and (c) (i) review with the Bank, within no more than two months after each such reports’ preparation, the reports referred to in paragraph (b) afford of this Section and progress in the Administrator a reasonable opportunity to exchange views with implementation of the Palestinian Authority on said plan.Integrated Development Program; and

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence RPGCL and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) LPGL to perform in accordance with the provisions of the Subsidiary Agreement RPGCL and LPGL Project Agreements, respectively, all of the obligations of the Palestinian Authority RPGCL and LPGL therein set forth; (ii) , shall take and cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable RPGCL and (iii) LPGL to perform such obligations, and shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (eb) The Recipient Borrower shall relend part of the proceeds of the Credit to RPGCL under a subsidiary loan agreement to be entered into between the Borrower and RPGCL, under terms and conditions which shall have been approved by the Association which shall include the following: (i) interest on the Subsidiary Loan shall be payable at the rate of 10% per annum; (ii) the Subsidiary Loan shall be repaid over a period of fifteen years, including a grace period of five years; and (iii) the foreign exchange risk shall be borne by RPGCL. (c) The Borrower shall relend part of the proceeds of the Credit to LPGL under a subsidiary loan agreement to be entered into between the Borrower and LPGL, under terms and conditions which shall have been approved by the Association which shall include the folowing: (i) interest on the Subsidiary Loan shall be payable at the rate of 10% per annum; (ii) the Subsidiary Loan shall be repaid over a period of fifteen years, including a grace period of five years; and (iii) the foreign exchange risk shall be borne by LPGL. (d) The Borrower shall exercise its rights under the RPGCL and LPGL Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, and except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the RPGCL and LPGL Subsidiary Agreement Loan Agreements or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For The Borrower and the purposes of Section 8.06 Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and without services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by RPGCL and LPGL pursuant to Section 2.03 of the RPGCL and LPGL Project Agreements, respectively. Section 3.04. Without any limitation theretoor restriction upon Section 3.01 of this Agreement, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) preparereview annually, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator but not later than six (6) months after March 31 in each year, commencing March 31, 1992, the Closing Datetransfer and retail prices of LPG, or and, thereafter, make any adjustments to such later date as may be prices, in a manner satisfactory to the Association, to comply with the financial viability objectives referred to in Section 3.06 of this Agreement, and with the economic efficiency criteria agreed for this purpose between with the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesAssociation; and (b) afford by June 30, 1994, cause the Administrator transfer price of LPG from LPG producers to LPG bottlers to be uniform throughout Bangladesh. Section 3.05. Without any limitation or restriction upon Section 3.01 of this Agreement, the Borrower shall finance, as the Borrower’s equity contribution to RPGCL, all future CNG feasibility and pilot projects carried out by RPGCL on behalf of the Borrower. Section 3.06. Without any limitation or restriction upon Section 3.01 of this Agreement, the Borrower shall: (a) price NGL products so as to enable RPGCL to earn revenues from the sale of NGL products sufficient to cover its operating expenses, debt service, additional working capital requirements, and contribution to investments of not less than 35%; and (b) price LPG so as to enable LPGL to earn revenues from the sale of LPG sufficient to cover its operating expenses, debt service, additional working capital requirements, and a reasonable opportunity contribution to exchange views with the Palestinian Authority on said planinvestments of not less than 35%.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the time objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, shall cause the Palestinian Authority to carry out Part B of the Project through PMU the Regies, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental financial engineering and public utility practices practices, and shall provide or cause the Palestinian Authority to providebe provided, promptly as needed, the funds, facilities, services and other resources required for said Part of the Project. (b) Without any limitation or restriction upon any of its other obligations under the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agreeLoan Agreement, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) RAD to perform in accordance with the provisions of the Subsidiary Project Agreement all of the obligations of the Palestinian Authority RAD therein set forth; (ii) , shall take or cause to take be taken all action, including the provision of funds, facilities, services and other resources, resources necessary or appropriate for the carrying out of the Project; to enable RAD to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with such performance. (c) For the purpose of carrying out part A of the Project, the Borrower shall relend to RAD the proceeds of the Loan allocated from time to time to Category (1) under a subsidiary loan agreement to be entered into between the Borrower and RAD, under terms and conditions which shall have been approved by the Bank, and which shall include, without limitation, those set forth in Schedule 5 to this Agreement. (d) For the purpose of carrying out Part B of the Project, the Borrower shall relend to each of the Regies the proceeds of the Loan allocated from time to time to Category (2) under a subsidiary loan agreement to be entered into between the Borrower and the Regie concerned, under terms and conditions which shall have been approved by the Bank and which shall include, without limitation, those set forth in Schedule 5 to this Agreement. (e) The Recipient shall Borrower shall: (i) exercise its rights under each of the Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement Loan Agreements or any provision thereof; and (ii) cause each of the Regies to perform in accordance with the provisions of its Subsidiary Loan Agreement all the obligations of the Regie therein set forth and shall take all action necessary or appropriate to enable the Regie to perform such obligations, and shall not take or permit to be taken any such action which would prevent or interfere with such performance. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 6 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on The Borrower shall take all measures necessary to ensure that the basis of guidelines acceptable to the Administrator, and furnish to the Administrator Regies shall: (i) not later than six (6) months after the Closing DateNovember 1, 1987, or such later date as the Bank may agree, employ consultants whose qualifications, experience and terms of reference shall be agreed for this purpose between satisfactory to the Palestinian Authority and Bank, to assist the Administrator, a plan to ensure Regies in carrying out the continued achievement studies included in Part B of the Project; (ii) furnish to the Borrower’s objectivesMinistry of the Interior and to the Bank bi-monthly reports prepared by said consultants on the progress of said studies; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU DECS, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineeringand management practices for quality elementary education, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Bank shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 5 to this Agreement. (c) The Recipient shall make the proceeds Borrower shall, in respect of each DEDP under Part B.2 of the Grant available Project, through the respective DECS-DO enter into a memorandum of agreement satisfactory to the Palestinian Authority under a subsidiary agreement to be entered into between Bank with the Recipient respective provincial and the Palestinian Authority under terms municipal LGUs, parent representatives and conditions other concerned parties, which shall have been approved by set forth the Administratorobligations of each party to implement such DEDP in accordance with the TEEP Guidelines. (d) The Recipient shall cause Borrower shall, in respect of Part B.2 (c) of the Palestinian Authority: Project, ensure that: (i) DECS and DOF enter into a memorandum of agreement, satisfactory to perform in accordance with the provisions Bank, whereby the Borrower shall make available to LGUs, through MDF, proceeds of the Subsidiary Agreement all Loan allocated from time to time to Categories 1 and 2 of the obligations table set forth in paragraph 1 of Schedule 1 to this Agreement, under terms and conditions satisfactory to the Palestinian Authority therein set forthBank; and (ii) DECS and the Department of Public Works and Highways enter into a memorandum of agreement, satisfactory to take all actionthe Bank, including whereby the provision of funds, facilities, services administration and other resources, necessary or appropriate for the carrying out implementa- tion of the Project; and (iii) not to take or permit to school building program for elementary schools in the Project Provinces shall be taken any action which would prevent or interfere with the carrying out responsibility of the Projectrespective LGUs. (e) The Recipient Borrower shall ensure that DECS and the Department of Budget and Management enter into a memorandum of agreement whereby all central government funding for public elementary education in the Project Provinces will be allocated by divisions, incorporated into the corresponding annual divisional budget and released directly to DECS-DOs. (f) The Borrower shall exercise its rights under each of the Subsidiary Agreement memoranda of agreement entered into pursuant to the provisions of paragraphs (c), (d) and (e) of this Section in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, and except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement such memoranda or any provision thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement procure- ment of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.08 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan designed to ensure the continued achievement sustainability of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence KONEBA and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) PUSRI to perform in accordance with the provisions of the Subsidiary Agreement KONEBA and PUSRI Project Agreements, respectively, all of the obligations of the Palestinian Authority KONEBA and PUSRI therein set forth; (ii) , shall take or cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable KONEBA and (iii) PUSRI to perform such obligations, and shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (ea) The Recipient Borrower shall relend part of the proceeds of the Loan to KONEBA under a subsidiary loan agreement to be entered into between the Borrower and KONEBA, under terms and conditions which shall have been approved by the Bank which shall include the following: (i) interest shall be payable at a rate of 13.5% per annum on the principal amount of the subsidiary loan withdrawn and outstanding from time to time; and (ii) the subsidiary loan shall be repaid over a period of fifteen years, including a grace period of five years. (b) The Borrower shall exercise its rights under the KONEBA Subsidiary Loan Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the KONEBA Subsidiary Loan Agreement or any provision thereof. (a) The Borrower shall relend part of the proceeds of the Loan to PUSRI under a subsidiary loan agreement to be entered into between the Borrower and PUSRI, under terms and conditions which shall have been approved by the Bank which shall include the following: (i) interest shall be payable at a rate of 13.5% per annum on the principal amount of the subsidiary loan withdrawn and outstanding from time to time; (ii) the subsidiary loan shall be repaid over a period of ten years, including a grace period of four years. (b) The Borrower shall exercise its rights under the PUSRI Subsidiary Loan Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the PUSRI Subsidiary Loan Agreement or any provision thereof. Section 3.04. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.033.05. For The Bank and the purposes of Section 8.06 Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and without limitation theretoservices, the Recipientplans and schedules, through the Palestinian Authorityrecords and reports, shall cause PMU to: (amaintenance and land acquisition, respectively) prepare, on the basis in respect of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement Part A of the Project, shall be carried out by KONEBA pursuant to Section 2.03 of the KONEBA Project Agreement, and in respect of Part B of the Project, shall be carried out by PUSRI pursuant to Section 2.03 of the PUSRI Project Agreement. Section 3.06. The Borrower shall, for purposes of Part A of the Project, maintain the Board of Commissioners, with powers and responsibilities satisfactory to the Bank, consisting of representatives from the Borrower’s objectives; and (b) afford Ministry of Mines and Energy, from PUSRI and from other shareholders of KONEBA, and such other representatives as the Administrator a reasonable opportunity Borrower may from time to exchange views with the Palestinian Authority on said plantime select, to give policy guidance to ▇▇▇▇▇▇.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU MLGRUD, MPCNH, ZESA, the Eligible Local Authorities and the Building Societies as indicated in said Schedule, with due diligence and efficiency, efficiency in conformity with appropriate administrative, financial, engineeringengineering and urban development principles and practices, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section Section, the Borrower shall allocate not less than 60% of its annual budgetary provisions for housing projects to finance part of the costs of Part ▇.▇ of the Project. (c) Without limitation upon the provisions of paragraph (a) of this Section, and except as the Recipient Borrower and the Administrator Bank shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 5 to this Agreement. Section 3.02. Without any limitation or restriction upon any of its obligations under the Loan Agreement, the Borrower shall: (ca) The Recipient shall make relend the proceeds of the Grant available Loan allocated to Parts A and B of the Palestinian Authority Project, excluding those allocated for electricity facilities, to Eligible Local Authorities under a subsidiary agreement Subsidiary Loan Agreements to be entered into between the Recipient Borrower and the Palestinian Authority such entities under terms and conditions which shall have been approved by the Administrator.Bank, including those set forth in Parts B and C of Schedule 5 to this Agreement; (b) relend the proceeds of the Loan allocated to electricity facilities under Parts A and B of the Project to ZESA under a Subsidiary Loan Agreement to be entered into between the Borrower and ZESA under terms and conditions which shall have been approved by the Bank, including those set forth in Part D of Schedule 5 to this Agreement; (c) relend the proceeds of the Loan allocated for the acquisition of computer equipment to the Building Societies under Subsidiary Loan Agreements to be entered into between the Borrower and each of such entities under terms and conditions which shall have been approved by the Bank, including those set forth in Part E of Schedule 5 of this Agreement; and (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under each of the Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the Grant, Loan and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the any such Subsidiary Loan Agreement or any provision thereof. (a) Section 3.03. Except as the Administrator Bank shall otherwise agree, procurement of the goods, goods and works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.033.04. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, The Borrower shall cause PMU each Eligible Local Authority to: (a) prepareestablish a revolving account in an approved financial institution into which the proceeds of sales of plots prepared under the Project shall be deposited, such account to be maintained on the basis of guidelines acceptable terms and conditions satisfactory to the Administrator, Borrower and the Bank and to be used exclusively to finance housing infrastructure development; (b) prepare and furnish to the Administrator Borrower and the Bank, by not later than six (6) months after November 30, 1990, a FPP in form and substance satisfactory to the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesBank; and (bc) afford carry out its operations and affairs in accordance with sound financial principles and practices and meet financial targets which are satisfactory to the Administrator Borrower and the Bank. Section 3.05. Notwithstanding the generality of Section 9.06 of the General Conditions, the Borrower shall cause each Eligible Local Authority to furnish to the Bank for its review and comment prior to initiating bidding or procurement procedures, the final standards and designs for community facilities to be constructed under Part B.2 of the Project in each such Eligible Local Authority. Section 3.06. The Borrower declares its commitment to the policy of self-managed progressive housing construction and to that end, except as the Bank shall otherwise agree, the Borrower shall cause each Eligible Local Authority to institute the standards, to apply the eligibility criteria and to establish procedures set forth in Part C of Schedule 5 to this Agreement in the allocation of plots to Allottees under the Project. Section 3.07. The Borrower shall carry out, not later than September 30 each year, a reasonable opportunity review of the performance of the Building Societies under Part C.2 of the Project with a view to exchange views with ensuring the Palestinian Authority on said plancompetitiveness of the Building Societies in mobilizing savings. The results of such review and any action proposed to be taken by the Borrower shall be communicated to the Bank for its comments.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrativeagricultural, financialenvironmental, engineeringmanagerial and accounting practices, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, financial re- sources, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions Implementation Program set forth in Schedule 6 to this Agreement. (i) The Borrower shall, out of the Master Schedule proceeds of the Credit for Part A.2 of the Project, relend to BM an amount equivalent to two million three hundred thousand Special Drawing Rights (SDR 2,300,000) under the Subsidiary Administration Agreement to be entered into betweeen the Borrower and BM on terms and conditions which shall have been ap- proved by the Implementation Program Association and as set forth in Schedule 4 to this Agreement.; (cii) The Recipient the Subsidiary Administration Agreement shall make include, inter alia, the following provisions: (A) definition of the functions and respon- sibilities of BM and the PFIs regarding Part A.2 of the Project; (B) the obligation of BM to enter into a Par- ticipation Agreement with each PFI under which the equivalent of the proceeds of the Grant available Credit allocated under Part A.2 of the Project will be lent to such PFI for relen- ding in the form of Subloans to Beneficia- ▇▇▇▇ to finance Subprojects, such Partici- pation Agreement to be satisfactory to the Palestinian Authority under a subsidiary agreement Association and in accordance with the provisions of Part A of Schedule 4 to be entered into between this Agreement; and (C) the Recipient and Borrower, through its Ministry of Finance, shall carry the Palestinian Authority under terms and conditions which shall have been approved by the Administratorforeign exchange risk. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise and cause BM to exercise its respective rights under the Subsidiary Agreement Administration Agreement, in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the Grant, Credit and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assigntake or concur in any action which should have the effect of assigning, amendamending, abrogate abrogating or waive waiving the Subsidiary said Agreement or any provision provisions thereof. (e) The Borrower shall: (i) ensure that Subloans made under Part A.2 of the Project will be made in accordance with the procedures, terms and conditions set forth in Schedule 4 to this Agreement; and (ii) conduct, jointly with the Association, annual reviews of said procedures, terms and conditions. (a) Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date procurement of plant protection chemical materials under Part A.2 of the preceding Procurement Plan, for Project shall be reviewed and approved by the Administrator’s approvalAssociation. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation theretoThe Borrower shall not later than December 31, the Recipient, through the Palestinian Authority, shall cause PMU to1990: (a) prepare, on legally establish and thereafter maintain the basis Sales and Trade Unit within CM in accordance with the provisions of guidelines acceptable Part D of Schedule 6 to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectives; andAgreement; (b) afford the Administrator (i) select a reasonable opportunity Marketing Economist and an Economist specialized in food processing to exchange views with the Palestinian Authority on be assigned to said plan.Unit;

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrativepractices, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. In order to assist the Recipient in carrying out the Project, the Recipient shall employ consultants whose qualifications, experience, terms of reference and terms and conditions of employment shall be satisfactory to the Administrator. Such consultants shall be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by The World Bank as Executing Agency" published by the Bank in August 1981. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) Without limitation upon The Recipient shall: (i) have the provisions of records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and except in such detail as the Recipient and the Administrator shall otherwise agree, have reasonably requested; and (iii) furnish to the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule Administrator such other information concerning said records and accounts and the Implementation Program set forth in Schedule 4 audit thereof as the Administrator shall from time to this Agreementtime reasonably request. (c) The Recipient shall make the proceeds of For all expenditures with respect to which withdrawals from the Grant available to Account were made on the Palestinian Authority under a subsidiary agreement to be entered into between basis of statements of expenditure, the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator.shall: (d) The Recipient shall cause the Palestinian Authority: (i) maintain or cause to perform be maintained, in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof.paragraph (a) Except as of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator shall otherwise agree, procurement of has received the goods, works and consultants’ services required audit report for the Project and to be financed out of fiscal year in which the proceeds of last withdrawal from the Grant shall be governed by the provisions of Schedule 3 to this AgreementAccount was made, as said provisions may be further elaborated in the Procurement Plan.all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (biii) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for enable the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable representatives to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or examine such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesrecords; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) afford of this Section and that the Administrator report of such audit contains a reasonable opportunity separate opinion by said auditors as to exchange views whether the statements of expenditure submitted during such fiscal year, together with the Palestinian Authority on said planprocedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, : (i) shall cause the Palestinian Authority to carry out Parts A and B of the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialeconomic, engineering, environmental environmental, financial, management, technical and public utility practices transport practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for Parts A and B of the Project; and (ii) without any limitation or restriction upon any of its other obligations under this Agreement, shall cause SNCFT to carry out Part C of the Project with due diligence and efficiency and in conformity with appropriate administrative, commercial, economic, engineering, environmental, financial, management, railways, technical and transport practices, and shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable SNCFT to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Bank shall otherwise agree, the Recipient shall cause the Palestinian Authority to Borrower shall: (i) carry out Parts A and B of the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 5 to this Agreement and the provisions of the Project Implementation Plan pertaining to Parts A and B of the Project as well as the mitigating measures set forth in the Environmental Impact Assessment prepared by, respectively, SNT, SORETRAS and STS; and (ii) cause SNCFT to carry out Part C of the Project in accordance with the Implementation Program set forth in the Schedule to the Project Agreement, the provisions of the Project Implementation Plan pertaining to Part C of the Project, the SNCFT Phosphate Transport Policy as well as the mitigating measures set forth in the Environmental Impact Assessment to be prepared by SNCFT. (c) For the purposes of Part C of the Project, the Borrower shall make available to SNCFT, through Allocations, the proceeds of the Loan allocated from time to time to Categories 1(b), 2(c); 2(d) and 3(b) of the table in Paragraph 1 of Schedule 1 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan, shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.07 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after before the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part C of the Project shall be carried out by SNCFT pursuant to Section 2.03 of the Project Agreement.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU its Judicial Branch, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, educational, environmental, financial, engineeringmanagerial, environmental social, and public utility practices technical practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement. (a) The Borrower, through its Judicial Branch, shall carry out the Project in accordance with a manual (the Operational Manual), acceptable to the Bank, said manual to include, inter alia: (i) an institutional implementation plan of the Judicial Branch for the management of the Project (including, inter alia, allocation of responsibilities within staff, yearly planning of activities and budget and time allocation for those activities); (ii) the procurement, financial management, and environmental guidelines to be followed during Project implementation by the Borrower; and (iii) the guidelines for the preparation of the Annual Action Plans. (b) Except as said provisions the Borrower, through its Judicial Branch, and the Bank may be further elaborated otherwise agree in writing, the Procurement PlanBorrower shall not abrogate, amend, suspend, waive or otherwise fail to enforce the Operational Manual or any provision thereof. (c) In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) The Borrower shall cause its Ministry of Finance and the Judicial Branch to enter into an arrangement (the Administrative Arrangement), for the purposes of establishing the procedures for the transfer by the Ministry of Finance to the Judicial Branch of the resources required for the carrying out of the Project. (b) The Recipient Borrower shall update ensure that the Procurement Plan Administrative Arrangement is implemented in accordance with guidelines its terms. (c) In case of any conflict between the terms of the Administrative Arrangement and those of this Agreement, the terms of this Agreement shall prevail. Section 3.05. The Borrower shall: (a) not later than December 31 of each year during Project implementation, starting in year 2004, furnish to the Bank, for its approval, an annual action plan (the Annual Action Plan), each said plan to include, inter alia: (i) the Project activities to be carried out by the Borrower, through its Judicial Branch, during the calendar year following the presentation of each said plan; (ii) the procurement plan and disbursement schedule for each said calendar year; and (iii) the amount of counterpart funds needed and to be provided by the Borrower to carry out the Project during said calendar year; (b) thereafter implement each said Annual Action Plan, approved by the Bank, in accordance with its terms; and (c) carry out the Annual Action Plan for the year 2004 as approved by the Bank. (a) The Borrower shall establish, and thereafter operate and maintain in its Judicial Branch, at all times during Project implementation, a Project coordination unit (the PCU) with a structure, functions and responsibilities acceptable to the AdministratorBank, including, inter alia, the responsibility of the PCU to assist the Borrower in the coordination, monitoring and supervision of the Project. (b) The Borrower, through its Judicial Branch, shall ensure that the PCU is, at all times during Project implementation, headed by a manager and staffed with a financial specialist, an administrative specialist, a procurement specialist and other professional and administrative staff, all hired in numbers and with qualifications and experience acceptable to the Bank. Turnover of PCU staff, which is deemed excessive in the opinion of the Bank, may serve as evidence that the provisions of Section 3.01 of this Agreement are not being met. Section 3.07. The Borrower shall: (a) maintain or cause to be maintained policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter and the data produced by the monitoring and evaluation program referred to in Part E.3 of the Project, the carrying out of the Project and the achievement of the objective thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish such update to the Administrator Bank, each January 15 and July 15 during Project implementation, starting with the report due not later than twelve July 15, 2005, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (12a) months after of this Section, on the progress achieved in the carrying out of the Project during the calendar semester preceding the date of presentation of the preceding Procurement Planreport and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objective thereof during the following calendar semester; (c) review with the Bank, for by January 15, of each year of Project implementation, or such later date as the AdministratorBank shall agree, starting in year 2005, the pertinent reports referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objective thereof, based on the conclusions and recommendations of said reports and the Bank’s approvalviews on the matter; and (d) carry out an in-depth review (the Mid-Term Review) jointly with the Bank, by December 31, 2006, or such later date as the Bank shall agree, on the progress achieved in the implementation of the Project. Section 3.033.08. Without limitation upon the provisions of Sections 3.01 and 3.04 of this Agreement, the Borrower shall include in each annual budget proposed to its legislature, and make available each year of Project implementation, promptly as needed, the following minimum amounts as counterpart funds for the Project: $879,000 for FY 2004; $2,520,000 for FY 2005; $1,520,000 for FY 2006; $760,000 for FY 2007; and $169,620 for FY 2008 Section 3.09. With regard to the training activities to be carried out under Parts A.1 (b) and D.1 (c) of the Project, the Borrower, through its Judicial Branch, shall: (a) furnish to the Bank, for its approval, each January 15 during Project implementation, starting in year 2004, the contents, schedule and selection criteria of the respective training programs; (b) carry out such training programs in accordance with the contents, schedule and selection criteria approved by the Bank; and (c) furnish to the Bank, each December 31 during Project implementation, starting with the report due not later than December 31, 2004, a report, of such scope and in such detail as the Bank shall reasonably request, on the results of each such training programs and the benefits derived therefrom. Section 3.10. For the purposes of Section 8.06 9.07 of the General Conditions and without limitation thereto, the RecipientBorrower, through the Palestinian Authority, shall cause PMU toshall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan designed to ensure the continued achievement sustainability of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out Part A of the Project through PMU MFE and Part B of the Project through RESF with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental administrative and public utility financial practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for such Parts of the Project. (b) Section 3.02. Without limitation or restriction upon any of its other obligations under this Agreement, the provisions Borrower shall, for the purposes of paragraph carrying out Part B of the Project, and unless the Bank shall otherwise agree: (a) of this Section solicit and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU approve proposals from candidate agencies in accordance with the provisions of the Master Schedule eligibility criteria and the Implementation Program procedures for approval for Energy Efficiency Sub-projects set forth or referred to in Schedule 4 Schedules 5 and 6 to this Agreement.; (cb) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) Executing Agencies to perform carry out their respective Energy Efficiency Sub-projects in accordance with the provisions same eligibility criteria and the terms of the respective Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all actionLoan Agreements, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the carrying out by such Executing Agencies of their respective activities under the Project.Energy Efficiency Sub-projects; (ec) The Recipient make available to each such Executing Agency the amount of financing required for such Energy Efficiency Sub-projects, under the Subsidiary Loan Agreement to be entered into between the Borrower and such Executing Agency, under terms and conditions which shall have been approved by the Bank, and which shall include, without limitation, those set forth in Schedule 5 to this Agreement; and (d) exercise its rights under the Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agreeLoan, the Recipient Borrower shall not assign, amend, abrogate or waive the any such Subsidiary Loan Agreement or any provision thereof. (a) Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approvalthereafter. Section 3.03. For the purposes of the efficient carrying out of the Project and ensuring the effective supervision of the execution of the Energy Efficiency Sub-projects, and without limitation on the provisions of Sections 3.01 and 3.02 of this Agreement, the Borrower shall cause an agreement to be entered between MFE and RESF concerning the carrying out of their respective responsibilities connected with the carrying out of Part B of the Project. Section 8.06 3.04. Without limitation upon the provisions of Article IX of the General Conditions and without limitation theretoConditions, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the Administrator, prepare and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure plan, of such scope and in such detail as the continued achievement Bank shall reasonably request, for the future operation of the Project’s objectives; and; (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan; and (c) thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Bank’s comments thereon. Section 3.05. Except as the Bank shall otherwise agree, procurement of the goods and consultants’ services required for Parts A and B of the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.06. The Borrower shall: (a) by June 30, 1997, carry out a study of the appropriate legal and regulatory framework for the gas distribution sub-sector; and (b) by December 31, 1997, prepare a satisfactory action plan, in consultation with the Bank, to improve the regulatory framework for the gas distribution sub-sector.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under the Credit Agreement, shall within the limits of its constitutional powers through FMPS cause BPE and NEPA to perform in accordance with the Palestinian Authority to carry out provisions of their respective Project Agreements all the Project through PMU with due diligence obligations of BPE and efficiencyNEPA therein set forth, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall take or cause to be taken all actions, including the Palestinian Authority to provide, promptly as needed, the provision of funds, facilities, services and other resources required for resources, necessary or appropriate to enable BPE and NEPA to perform the Projectobligations set forth in their respective Project Agreements; and upon unbundling of NEPA, to enable TransysCo and the respective GENCOS and DISCOS to perform their respective obligations to be set forth in the respective Project Agreements to be entered into with the Association upon establishment of TransysCo and the respective GENCOS and DISCOS, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall grant to BPE the proceeds of the Credit allocated to Categories (2) (a), (3) (a), and (4) (a) set forth in the table in Part A.1 of Schedule 1 to this Agreement under a Subsidiary Grant Agreement, and shall lend to NEPA the proceeds of the Credit allocated to Categories (1), (2) (b), (3) (b), (4) (b), and (5) set forth in the table in Part A.1 of Schedule 1 to NEPA under a Subsidiary Credit Agreement, all under terms and conditions which shall have been approved by the Association; (c) The Borrower shall exercise its rights under the Subsidiary Grant Agreement and the Subsidiary Credit Agreement in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit and, upon unbundling of NEPA, the Borrower shall assign the NEPA Subsidiary Credit Agreement to a holding company to be established as successor to NEPA, upon terms and conditions satisfactory to the Association; and (d) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to through FMPS carry out the Project through PMU in accordance with the provisions of Program, Project Implementation Manual, CREST, Market Rules and Grid Code, Procurement Procedures Manual, the Master Schedule Environmental and Social Management Framework, the Resettlement Policy Framework, and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient Borrower shall through FMPS update the Procurement Plan in accordance with guidelines acceptable to the AdministratorAssociation, and furnish such update to the Administrator Association not later than twelve (12) 12 months after the date of the preceding Procurement Plan, for the AdministratorAssociation’s approval. Section 3.03. The Borrower shall cause NEPA to: (a) open and maintain an account (the “Project Account”) in Naira in a commercial bank acceptable to the Association and the Borrower on terms and conditions satisfactory to the Association and the Borrower; (b) promptly thereafter, make an initial deposit into such account, in an amount equivalent to $1,000,000, to finance NEPA’s contribution to the costs of the Project; (c) thereafter deposit into the Project Account, semi-annually, the amount required to replenish the Project Account up to NEPA's contribution to the costs of the Project; and (d) use the funds in the Project Account exclusively to finance expenditures under the Project and not otherwise financed out of the proceeds of the Credit. Section 3.04. The Borrower shall through FMPS, prior to any displacement of any Affected Persons from works to be carried out under the Project: (a) undertake the acquisition of all necessary land and other property, compensation therefore and resettlement for such works in accordance with the principles and institutional procedures established in the Resettlement Policy Framework; (b) ensure that Affected Persons from such works shall be compensated, resettled and rehabilitated in accordance with the Resettlement Policy Framework; (c) prepare and furnish to the Association, a detailed resettlement action plan acceptable to the Association documenting the implementation arrangements for resettlement arising from such works, including compensation, relocation and rehabilitation of Affected Persons; (d) complete the implementation of such resettlement action plan in a manner satisfactory to the Association; and (e) prepare and furnish to the Association, an Environmental Management Plan, satisfactory to the Association, and thereafter implement such Plan accordingly. Section 3.05. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, Borrower shall through the Palestinian Authority, shall cause PMU toFMPS: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan. Section 3.06. Upon incorporation of the distribution business units into separate companies, upon incorporation of the generation companies, and upon incorporation of the transmission and operation company, the Borrower through FMPS will cause the DISCOS, GENCOS and TransysCo to enter into Project Agreements with the Association thereby assuming NEPA’s respective obligations for implementation of the Project set forth in the Project Agreement of even date herewith between NEPA and the Association.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence AAAR, AWSA and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) HSB to perform in accordance with the provisions of the Subsidiary AAAR Project Agreement, the AWSA Project Agreement and the HSB Project Agreement all of the respective obligations of the Palestinian Authority AAAR, AWSA and HSB therein set forth; (ii) , shall take and cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable AAAR, AWSA and (iii) HSB to perform such obligations, and shall not to take or permit to be taken any action which would prevent or interfere with the carrying out such performance. (b) The Borrower shall relend a portion of the Projectproceeds of the Credit equivalent to $20,500,000 to AAAR under a subsidiary loan agreement to be entered into between the Borrower and AAAR, under terms and conditions which shall have been approved by the Association which shall provide, inter alia, that such proceeds be relent at an interest rate of 4.5% per annum, for a term of twenty- six (26) years, including a grace period of six (6) years on the repayment of principal. The Borrower shall bear the foreign exchange risk. (c) The Borrower shall relend a portion of the proceeds of the credit equivalent to $5,200,000 to AWSA under a subsidiary loan agreement to be entered into between the Borrower and AWSA, under terms and conditions which shall have been approved by the Association which shall provide, inter alia, that such proceeds be relent at an interest rate of 4.0% per annum, for a term of twenty- six (26) years, including a grace period of six (6) years on the repayment of principal. The Borrower shall bear the foreign exchange risk. (d) The Borrower shall relend a portion of the proceeds of the credit equivalent to $9,300,000 to HSB under a subsidiary loan agreement to be entered into between the Borrower and HSB, under terms and conditions which shall have been approved by the Association which shall provide, inter alia, that such proceeds be relent at an interest rate of 1.5% per annum, for a term of twenty- six (26) years, including a grace period of six (6) years on the repayment of principal. The Borrower shall bear the foreign exchange risk. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive any of the Subsidiary Agreement Loan Agreements or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For The Borrower and the purposes of Section 8.06 Association hereby agree that the obligations set forth in Sections 9.03 through 9.08 of the General Conditions (relating to insurance, use of goods and without limitation theretoservices, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by AAAR, AWSA and HSB pursuant to Section 2.03 of the RecipientAAAR Project Agreement, through the Palestinian AuthorityAWSA Project Agreement and HSB Project Agreements, shall cause PMU to:respectively. (a) prepareSection 3.04. The Borrower shall, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after December 31, 1990, establish and thereafter maintain a Project Advisory Committee whose chairman shall be the Closing DateMinister of MUDH and whose other members shall consist of senior officials of MUDH, or such later date AAAR, AWSA, HSB and others as may be agreed required. The said Project Advisory Committee shall be responsible for this purpose between resolving operational issues arising during the Palestinian Authority and the Administrator, a plan to ensure the continued achievement implementation of the Project’s objectives; and. (b) afford Section 3.05. The Borrower shall take all appropriate measures to ensure that AWSA complies with Section 4.02 of the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said planAWSA Project Agreement.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, shall cause the Palestinian Authority to carry out Parts A, D and E of the Project through PMU CETUD, and Part C of the Project through the Association de Financement, with due diligence and efficiency, efficiency and in conformity with appropriate administrativetechnical practices, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient The Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) SNCS to perform in accordance with the provisions of the Subsidiary Project Agreement all of the obligations of the Palestinian Authority SNCS therein set forth; (ii) , shall take and cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable SNCS to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with such performance. (c) The Borrower shall make available, on a non-reimbursable basis, the carrying out proceeds of the ProjectCredit withdrawn from Categories 1 (b), 1 (c), 2 (b) and 3 (b) of the table in paragraph 1 of Schedule 1, to SNCS under a subsidiary agreement to be entered into between the Borrower and SNCS, under terms and conditions which shall have been approved by the Association. (d) The Borrower shall relend part of the proceeds of the Credit to the AF under a subsidiary financing agreement to be entered into between the Borrower and the AF, under terms and conditions which shall have been approved by the Association which shall include, inter alia, that the proceeds of the Credit withdrawn from Category 2 (c) of the table in paragraph 1 of Schedule 1 to be onlent with: (i) an interest rate of not less than 6% per annum; (ii) a repayment period not exceeding 6 years, and (iii) a provision that the AF shall keep a margin of 2% maximum. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement and the Subsidiary Financing Agreement respectively in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement or the Subsidiary Financing Agreement, or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 9.07 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan. Section 3.04. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrativeadministrative and financial practices, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 3 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 4 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section and those for the Special Account for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) four months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s approvalrepresentatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.033.04. For Without limitation upon the purposes applicable provisions of Section 8.06 Article IX of the General Conditions and without limitation theretoConditions, the Recipient, through the Palestinian Authority, shall cause PMU toRecipient shall: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Recipient and the Administrator, a plan designed to ensure the continued achievement sustainability of the Project’s objectives; and; (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority Recipient on said plan; and (c) thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Administrator’s comments thereon.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, : (a) (i) shall cause the Palestinian Authority to carry out Part A of the Project through PMU to be carried out by the Federation and shall cause Part B of the Project to be carried out by Republika Srpska, all with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineeringforestry and environmental practices; (ii) shall take or cause to be taken all action, environmental and public utility practices and shall cause including the Palestinian Authority to provide, promptly as needed, the provision of funds, facilities, services and other resources required for resources, necessary or appropriate to enable the Federation to carry out Part A of the Project and to enable Republika Srpska to carry out Part B of the Project.; and (iii) shall not take or permit to be taken any action which would prevent or interfere with the carrying out of said parts of the Project by the Federation and Republika Srpska, respectively; (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority Federation to carry out Part A of the Project through PMU and Republika Srpska to carry out Part B of the Project in accordance with the provisions of the Master Implementation Program set forth in Schedule 5 to this Agreement. (a) The Borrower shall on-lend the proceeds of the Interim Fund Credit to the Federation and Republika Srpska for purposes of the Project under separate subsidiary credit agreements to be entered into between the Borrower and the Federation and the Borrower and Republika Srpska in accordance with the provisions of the Implementation Program set forth in Schedule 4 5 to this Agreement. (cb) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement Credit Agreements in such a manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator and to accomplish the purposes of the GrantInterim Fund Credit, and, and except as the Administrator shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement Credit Agreements or any provision thereof. (a) Section 3.03. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services goods required for the Project and to be financed out of the proceeds of the Grant Interim Fund Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.033.04. For the purposes of Section 8.06 The Borrower shall cause each of the General Conditions Federation and without limitation theretoRepublika Srpska to employ, the Recipientby September 30, through the Palestinian Authority1998, shall cause PMU to: (a) prepare, on the basis procurement agents under terms of guidelines acceptable to the Administrator, and furnish to reference satisfactory'to the Administrator not later than six (6) months after to assist the Closing Date, or such later date as may be agreed Federation and Republika Srpska in the procurement of goods required for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement carrying out of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.

Execution of the Project. (a) The Recipient declares its commitment to the objectives shall carry out Part A of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out through JMRC; Part B of the Project through PMU HUDC, and Part C of the Project through the Ministry of Planning, all with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialmanagerial and economic practices, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 4 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s approvalrepresentatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.033.04. For the purposes of Section 8.06 9.08 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toRecipient shall: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Recipient and the Administrator, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority Recipient on said plan.

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineeringand engineering practices, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) four months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s approval's representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.033.04. For Without limitation upon the purposes applicable provisions of Section 8.06 Article IX of the General Conditions and without limitation theretoConditions, the Recipient, through the Palestinian Authority, shall cause PMU toRecipient shall: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Recipient and the Administrator, a plan designed to ensure the continued achievement of the objectives of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority Recipient on said plan.

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrativeadministrative and financial practices, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve six (126) months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s approvalrepresentatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the proce-dures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.033.04. For Without limitation upon the purposes applicable provisions of Section 8.06 Article IX of the General Conditions and without limitation theretoConditions, the Recipient, through the Palestinian Authority, shall cause PMU toRecipient shall: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Recipient and the Administrator, a plan designed to ensure the continued achievement of the objectives of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority Recipient on said plan.

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrativepractices, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ ' services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 2 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section including those for the Special Account, for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) four months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Administrator’s approvalAdministrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. Section 3.03. (c) For all expenditures with respect to which withdrawals from the purposes Grant Account were made on the basis of Section 8.06 statements of the General Conditions and without limitation theretoexpenditure, the RecipientRecipient shall: (i) maintain or cause to be maintained, through the Palestinian Authority, shall cause PMU to:in accordance with paragraph (a) prepareof this Section, on records and accounts reflecting such expenditures; (ii) retain, until at least one year after the basis of guidelines acceptable to Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator, and furnish 's representatives to the Administrator not later than six (6) months after the Closing Date, or examine such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesrecords; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) afford of this Section and that the Administrator report of such audit contains a reasonable opportunity separate opinion by said auditors as to exchange views whether the statements of expenditure submitted during such fiscal year, together with the Palestinian Authority on said planprocedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineeringenvironmental, environmental social and public utility practices forestry practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator Association shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this the Development Credit Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Danish Grant shall be governed by the provisions of Schedule 3 to this the Development Credit Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section including those for the Special Account for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and Association; (ii) furnish such update to the Administrator Association as soon as available, but in any case not later than twelve (12) six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Administrator’s approvalAssociation shall have reasonably requested; and (iii) furnish to the Association such other information concerning said records and accounts and the audit thereof as the Association shall from time to time reasonably request. Section 3.03. (c) For all expenditures with respect to which withdrawals from the purposes Grant Account were made on the basis of Section 8.06 statements of the General Conditions and without limitation theretoexpenditure, the RecipientRecipient shall: (i) maintain or cause to be maintained, through the Palestinian Authority, shall cause PMU to:in accordance with paragraph (a) prepareof this Section, on the basis of guidelines acceptable to the Administratorrecords and accounts reflecting such expenditures; (ii) retain, and furnish to the Administrator not later than six (6) months until at least one year after the Closing DateAssociation has received the audit for the fiscal year in which the last withdrawal from the Grant Account was made, or all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such later date as may be agreed for this purpose between expenditures; (iii) enable the Palestinian Authority Association’s representatives to examine such records; and ensure that such records and accounts are included in the Administrator, a plan annual audit referred to ensure the continued achievement of the Project’s objectives; and in paragraph (b) afford of this Section and that the Administrator report of such audit contains a reasonable opportunity separate opinion by said auditors as to exchange views whether the statements of expenditure submitted during such fiscal year, together with the Palestinian Authority on said planprocedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority Federation to carry out the Project through PMU its Ministry of Finance, and such other ministries and agencies as agreed with the Administrator, with due diligence and efficiency, in conformity with appropriate administrative, financial, engineering, environmental efficiency and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement, as such Implementation Program shall be modified from time to time by the agreement of the Recipient and the Administrator. (ca) The For purposes of the carrying out of the Project, the Recipient shall make provide the proceeds of the Grant available to the Palestinian Authority Federation under a subsidiary agreement Subsidiary Grant Agreement to be entered into between the Recipient Borrower and the Palestinian Authority Federation under terms and conditions which shall have been approved by the Administrator, which shall include those described in the Implementation Program set forth in Schedule 4 to this Agreement, as such Implementation Program shall be modified from time to time by the agreement of the Recipient and the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (eb) The Recipient shall exercise its rights under the Subsidiary Grant Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Recipient and the Administrator and to accomplish the purposes of the Grant, and, and except as at the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Grant Agreement or any provision thereof. (a) Section 3.03. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement. (a) The Recipient shall cause the Federation to maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Federation responsible for carrying out the Project or any part thereof. (b) The Recipient shall update cause the Procurement Plan Federation to: (i) have the records and accounts referred to in paragraph (a) of this Section and those for the Special Account for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Administrator’s approvalAdministrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. Section 3.03. (c) For all expenditures with respect to which withdrawals from the purposes Grant Account were made on the basis of Section 8.06 statements of the General Conditions and without limitation theretoexpenditure, the Recipient, through the Palestinian Authority, Recipient shall cause PMU the Federation to: (i) maintain or cause to be maintained, in accordance with paragraph (a) prepareof this Section, on records and accounts reflecting such expenditures; (ii) retain, until at least one year after the basis of guidelines acceptable to Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator, and furnish ’s representatives to the Administrator not later than six (6) months after the Closing Date, or examine such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesrecords; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) afford of this Section and that the Administrator report of such audit contains a reasonable opportunity separate opinion by said auditors as to exchange views whether the statements of expenditure submitted during such fiscal year, together with the Palestinian Authority on said planprocedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate engineering, administrative, financialfinancial and highway transport practices, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon The Borrower shall carry out, together with FARP, the provisions of paragraph (a) of this Section and except as the Recipient Action Plan and the Administrator shall otherwise agreeRoad Expenditure Program with due diligence and efficiency and in conformity with appropriate engineering, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule administrative, financial and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereofhighway transport practices. (a) Except as the Administrator shall otherwise agreeThe Borrower shall, procurement by September 30, 1991, together with FARP, carry out a revision of the goods, works and consultants’ services required for Feasibility Study Guidelines in accordance with terms of reference satisfactory to the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement PlanBank. (b) The Recipient shall update Borrower shall: (i) carry out a feasibility study of each roadwork proposed to be included in the Procurement Plan Road Expenditure Program on the basis of the Feasibility Study Guidelines and in accordance with guidelines acceptable levels of economic analysis satisfactory to the AdministratorBank; and (ii) furnish to the Bank summaries of such proposed roadworks with the results of each feasibility study, all in accordance with an implementation schedule satisfactory to the Bank. (c) Except as the Bank shall otherwise agree, the Borrower shall: (i) include in the Road Expenditure Program such proposed roadworks which have been approved by the Bank and which have an economic rate of return of not less than 12% calculated on the basis of a methodology satisfactory to the Bank; and (ii) carry out such roadworks: (A) no earlier than the year in which the first year economic rate of return is not less than 10% calculated on the basis of a methodology satisfactory to the Bank; and (B) in their order of priority as determined by their economic rates of return, Section (a) The Borrower shall: (i) prepare and furnish such update to the Administrator Bank for review and comment, not later than twelve October 15 of each of its fiscal years, the following information, of such scope and in such detail as the Bank shall reasonably request: (12A) months after a report on the date progress achieved in the carrying out of the preceding Procurement Plancurrent Road Expenditure Program, (B) proposed revisions to the current Road Expenditure Program and Financing Plan and the Road Expenditure Program and Financing Plan proposed for the Administrator’s approvalfollowing calendar year; and (C) the road expenditure program and financing plan proposed for the period through 1992; (ii) afford the Bank a reasonable opportunity to review and comment on such report and proposals; and (iii) thereafter, promptly introduce any revisions in a manner that such Road Expenditure Program and Financing Plan for the following year are satisfactory to the Bank. Section 3.03. (b) With respect to the foregoing: (i) Except as the Bank shall otherwise agree, the Borrower shall not introduce any material change in the Road Expenditure Program or Financing Plan as agreed between the Bank and the Borrower. (ii) For the purposes of Section 8.06 this Section, the term "material change" means any change or changes in new construction, betterment, rehabilitation and pavement strengthening works which amounts to the equivalent of not more than five percent (5%) of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to:cost of such works. (a) prepareThe Borrower shall: (i) each calendar year and in accordance with the Road Expenditure Program and Financing Plan for each such calendar year, allocate the revenue received from the road user charge on fuel initially to road maintenance, debt service and administrative costs and thereafter to other roadworks; (ii) each calendar year and in accordance with the basis Road Expenditure Program and Financing Plan for each such calendar year, allocate not less than the equivalent of guidelines acceptable $21,000,000 in October 1989 prices to road maintenance from both the Administrator, revenue received from the road user charge on fuel and furnish to from the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement Borrower’s other sources of the Project’s objectivesfunds; and (iii) provide in a timely manner from its own resources the amount needed over and above the revenue received from the road user charge on fuel to meet the requirements of the Road Expenditure Program. (b) afford For purposes of this Section: (i) road user charge on fuel" means the Administrator a reasonable opportunity to exchange views with road user charge included in the Palestinian Authority retail price on said plangasoline and diesel fuel; and (ii) road maintenance" means routine road maintenance, including pavement strengthening and excluding winter maintenance.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause FETF through the Palestinian Authority Federation and RETF through Republika Srpska to respectively carry out Part A and Part B of the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, economic, financial, engineeringmanagerial and environmental practices, environmental and public utility practices and shall take or cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement taken all of the obligations of the Palestinian Authority therein set forth; (ii) to take all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying to enable FETF and RETF to carry out their respective part of the Project; , and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the FETF and RETF carrying out their respective part of the Project. (ea) The Recipient Borrower shall make the proceeds of the Credit available to FETF and RETF, through the Federation and Republika Srpska respectively, pursuant to separate tripartite subsidiary financing and project implementation agreements to be entered into among the Borrower, the Federation and FETF and the Borrower, Republika Srpska and RETF, under terms and conditions which shall have been approved by the Association and which shall, inter alia, include the terms and conditions specified in Schedule 5 to this Agreement. (b) The Borrower shall exercise its rights under the FETF Subsidiary Financing and Project Implementation Agreement and RETF Subsidiary Financing and Project Implementation Agreement in such a manner so as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association, and to accomplish the purposes of the GrantCredit and the objectives of FETF and RETF, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the FETF Subsidiary Financing and Project Implementation Agreement or RETF Subsidiary Financing and Project Implementation Agreement, or any provision thereof. (a) Section 3.03. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall cause the Palestinian Authority to carry out the Project through PMU PEA with due diligence and efficiency, in conformity with appropriate administrative, financial, engineering, environmental efficiency and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement, as the same may be amended from time to time by mutual agreement of the Borrower and the Administrator. (cb) The Recipient Borrower shall make the proceeds of the Grant Credit available to the Palestinian Authority PEA under a subsidiary agreement to be entered into between the Recipient Borrower and the Palestinian Authority PEA, under terms and conditions which shall have been approved by the Administrator. (dc) The Recipient Borrower shall cause the Palestinian Authority: (i) PEA to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority PEA therein set forth; (ii) , shall cause to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying to enable PEA to carry out of the Project; , and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (ed) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator and to accomplish the purposes of the GrantCredit, and, except as the Administrator shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For Without limitation upon the purposes provisions of Section 8.06 Article IX of the General Conditions and without limitation theretoConditions, the Recipient, through the Palestinian Authority, Borrower shall cause PMU PEA to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator Administrator, not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the Administrator, a plan to ensure for the continued achievement future operation of the Project’s objectives; and; (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority ▇▇▇ on said plan; and (c) thereafter, carry out said plan with due diligence and efficiency, and in accordance with appropriate practices, taking into account the Administrator’s comments thereon. Section 3.04. The Borrower, through PEA, shall, on the basis of criteria acceptable to the Administrator including those set forth in Schedule 6 to this Agreement, select from LGDP, and furnish to the Administrator for its approval, Infrastructure Sub-projects to be financed out of the proceeds of the Credit allocated to Parts A.1, A.2, A.3, A.4, A.5, A.6 and A.7 of the Project.

Execution of the Project. (a) The Recipient declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU MARN, with the assistance of CNR as set forth below, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, environmental, economic, social, financial, engineeringand technical practices, environmental and public utility practices in accordance with the Operational Manual, the CNR Participation Agreement and the ISTA Participation Agreement, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon to the provisions of paragraph (a) above, prior to carrying out any activity under Part B.1 of this Section and except as the Recipient and the Administrator shall otherwise agreeProject, the Recipient Recipient, through MARN, shall cause enter into an agreement with CNR (the Palestinian Authority CNR Participation Agreement), under terms and conditions satisfactory to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program Bank, including those set forth in Schedule 4 the Operational Manual with respect to this Agreementthe role of CNR in the delimitation of Protected Areas under the Project. (c) The Recipient shall make Without limitation to the proceeds provisions of paragraphs (a) and (b) above, prior to carrying out any activity under Part B.2 of the Grant available to Project, the Palestinian Authority under a subsidiary Recipient, through MARN, shall enter into an agreement to be entered into between with ISTA (the Recipient and the Palestinian Authority ISTA Participation Agreement), under terms and conditions which shall have been approved by satisfactory to the AdministratorBank, including those set forth in the Operational Manual with respect to the role of ISTA in the transfer of the Pilot Protected Areas to MARN. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all actionRecipient, including the provision of fundsthrough MARN, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights and carry out its obligations under the Subsidiary CNR Participation Agreement and the ISTA Participation Agreement, in such a manner as to protect the interests of the Recipient, the Palestinian Authority Recipient and the Administrator Bank and to accomplish the purposes of the GEF Trust Fund Grant, and, except as the Administrator Bank shall otherwise agree, the Recipient Recipient, through MARN, shall not amend, assign, amendabrogate, abrogate suspend, terminate, waive or waive fail to enforce the Subsidiary CNR Participation Agreement, the ISTA Participation Agreement or any provision thereof. (a) Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the GEF Trust Fund Grant shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the AdministratorBank, and furnish such update to the Administrator Bank not later than twelve (12) 12 months after the date of the preceding Procurement Plan, for the AdministratorBank’s approval. (a) The Recipient, through MARN, shall issue an operational manual (the Operational Manual), satisfactory to the Bank, setting forth rules and procedures for the carrying out of the Project, such manual to include, inter alia: (i) the duties and responsibilities of MARN, ISTA and CNR in Project implementation; (ii) the technical, legal, administrative, financial, procurement and monitoring procedures for Project implementation; (iii) the Process Framework, which shall include the prohibition of involuntary resettlement in the NPAS; (iv) the Environmental Procedures; and (v) the updated management plans referred to in Part B.3 of the Project. (b) The Operational Manual may be amended by MARN from time to time with the prior approval of the Bank. In the case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.033.04. The Recipient, through MARN, shall, throughout the course of Project implementation, maintain a Project coordinating unit (the PCU) with functions, staffing and responsibilities satisfactory to the Bank, including without limitation a coordinator responsible for overseeing the day-to-day implementation of Project activities, a procurement officer, and a financial management officer. Section 3.05. The Recipient, through MARN, shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in Schedule 4 to this Agreement, the carrying out of the Project and the achievement of the objective thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank not later than six months after the Effective Date and semestrally thereafter, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objective thereof during the period following such date; and (c) review with the Bank, not later than two months after the date of such report, or such later date as the Bank shall request, the report referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objective thereof, based on the conclusions and recommendations of the said report and the Bank’s views on the matter. Section 3.06. Without limitation to the provisions of Section 3.01 of this Agreement, the Recipient shall: (a) not later than October 31, of each year of Project implementation, starting in the year 2006, prepare and furnish to the Bank an annual work program, acceptable to the Bank, containing the Project activities to be carried out during the calendar year following the date of presentation of said program to the Bank, and a timetable for the completion of said Project activities during the year in question; and (b) thereafter carry out said program in accordance with its terms, and in a manner acceptable to the Bank. Section 3.07. For the purposes of Section 8.06 9.08 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toRecipient shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Recipient and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Recipient on said plan.

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrativeadministrative practices, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section Section, and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 3 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 4 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) four months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s approvalrepresentatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the proce-dures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.033.04. For Without limitation upon the purposes applicable provisions of Section 8.06 Article IX of the General Conditions and without limitation theretoConditions, the Recipient, through the Palestinian Authority, shall cause PMU toRecipient shall: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Recipient and the Administrator, a plan designed to ensure the continued achievement of the objectives of the Project’s objectives; and; (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority Recipient on said plan; and (c) thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Administrator’s comments thereon.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause FETF through the Palestinian Authority Federation and RETF through Republika Srpska to carry out out, respectively, Part A and Part B of the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, economic, financial, engineeringmanagerial and environmental practices, environmental and public utility practices and shall take or cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement taken all of the obligations of the Palestinian Authority therein set forth; (ii) to take all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying to enable FETF and RETF to carry out their respective part of the Project; , and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the FETF and RETF carrying out their respective part of the Project. (ea) The Recipient Borrower shall on-lend the proceeds of the Interim Fund Credit to the Federation and Republika Srpska for purposes of the Project under separate subsidiary financing and project implementation agreements to be entered into between the Borrower, the Federation and FETF and the Borrower, Republika Srpska and RETF in accordance with the provisions of the Implementation Program set forth in Schedule 4 to this Agreement. (b) The Borrower shall exercise its rights under the FETF Subsidiary Financing and Project Implementation Agreement and RETF Subsidiary Financing and Project Implementation Agreement in such a manner so as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Administrator, and to accomplish the purposes of the GrantInterim Fund Credit and the objectives of FETF and RETF, and, except as the Administrator shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the FETF Subsidiary Financing and Project Implementation Agreement or the RETF Subsidiary Financing and Project Implementation Agreement, or any provision thereof. (a) Section 3.03. Except as the Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Interim Fund Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out Part B.2 of the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental financial and public utility technical practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any of its other obligations under the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agreeDevelopment Credit Agreement, the Recipient Borrower shall cause the Palestinian Authority FAS to carry out the Project through PMU perform, in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Project Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement , all of the obligations of the Palestinian Authority FAS therein set forth; (ii) , shall take and cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable FAS to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall assist FAS in the carrying out of the ProjectProject in accordance with the Implementation Program set forth in Schedule 2 to the Project Agreement. (d) The Borrower shall make the proceeds of the Credit available to FAS as a grant under a Subsidiary Agreement to be entered into between the Borrower and FAS, under terms and conditions which shall have been approved by the Association and which shall include, but without being limited to, the provisions set forth in Schedule 2 to the Project Agreement. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and works, subprojects, consultants’ services services, audits and training required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable 1 to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approvalProject Agreement. Section 3.03. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepareprepare jointly with FAS, and on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan designed to ensure the continued achievement of the objective of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower and ▇▇▇ on said plan. Section 3.04. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by FAS pursuant to Section 2.03 of the Project Agreement. Section 3.05. Without limitation to its obligations under Section 3.01 of this Agreement, the Borrower shall, for the purposes of making available its counterpart contribution to the financing of the Project: (a) cause FAS to open and thereafter maintain, until the completion of the Project, an account (the FAS III Project Account) in KZ in a commercial bank, on terms and conditions satisfactory to the Association; (b) deposit into the FAS III Project Account an initial deposit in KZ of an amount equivalent to $500,000 (the Initial Deposit) into such account; (c) thereafter ▇▇▇▇▇▇▇▇▇ said account up to the initial amount of $500,000 by September 30, December 31, March 31 and June 30 in each Fiscal Year during Project implementation until the completion of the Project; and (d) use the funds in the FAS III Project Account exclusively to finance expenditures under the Project. Section 3.06. The Borrower shall, during the Project implementation, maintain or cause to be maintained the National Coordination Committee, the National Coordination Unit, (including its committees at the Provincial level) as well as the Municipal Administrations; all in form and functions satisfactory to the Association and with competent staff in adequate numbers. Section 3.07. The Borrower shall cause the Municipal Administrations to carry out Part B of the Project in accordance with the Operational Manual, and the MOU. Section 3.08. The Borrower shall cause the Municipal Administrations to enter into a Financing Agreement with each Subproject Committee for the benefit of each Beneficiary under Part B of the Project. The terms of the Financing Agreement shall be satisfactory to the Association and shall include the right for the Municipal Administrations to obtain adequate protection of the interests of the Borrower, the Association and FAS, through, inter alia, the following provisions: (a) the Subproject Committee shall carry out the Subproject with due diligence and efficiency in accordance with sound technical, financial, managerial and environmental standards and maintain adequate records. (b) The goods, works and services to be financed out of the proceeds of the Credit for the Subproject shall be procured in accordance with the provisions of Schedule 2 to this Agreement. (c) The Borrower, the Municipal Administrations or FAS shall have the right to inspect, by itself or jointly with the Association and FAS, the goods and sites, works and construction included in the Subproject. (d) The Borrower, the Municipal Administrations or FAS shall have the right to obtain all such information as the Borrower, FAS or the Association shall reasonably request regarding the goods, works, site and construction included in the Subproject, the administration, operation, financial and environmental condition of the Subproject and the benefits to be derived from the Subproject. (e) The Municipal Administration shall have the right to suspend or terminate the right of a Subproject Committee to use the proceeds of the Credit for the relevant Subproject upon failure by any such Subproject Committee to perform any of its respective obligations under the Financing Agreement. (f) The Subproject Committee shall have the obligation to report to the Borrower, the Municipal Administrations or FAS on progress in implementing the Subproject. (g) The obligation for the Municipal Administration if so instructed by the Borrower or FAS to suspend or terminate the right of a Subproject Committee to use the proceeds of the Credit for the relevant Subproject upon failure by any such Subproject Committee to perform any of its respective obligations under the Financing Agreement.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, : (i) shall cause the Palestinian Authority to carry out Part B of the Project through PMU the MOT, and Part C of the Project through Autosnabsbyt and MOT, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental administrative and public utility financial practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for such Parts of the Project.; (bii) Without shall assist the Participating Cities, through the UTPCC and PID, to carry out Part A of the Project; and (iii) without limitation or restriction upon any of its other obligations under the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agreeLoan Agreement, the Recipient Borrower shall cause the Palestinian Authority Participating Cities to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program perform all their obligations set forth in Schedule 4 to this Agreement. (c) The Recipient the Subsidiary Loan Agreements, shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement take or cause to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement taken all of the obligations of the Palestinian Authority therein set forth; (ii) to take all necessary or appropriate action, including the provision of funds, facilities, services and other resources, necessary or appropriate for to enable the carrying out of the Project; Participating Cities to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (eb) The Recipient shall exercise its rights under Without limitation upon the Subsidiary Agreement in such manner as to protect the interests provisions of the Recipientparagraph (a) of this Section, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator Borrower and the Bank shall otherwise agree, the Recipient Borrower shall not assigncarry out Part B, amendthrough the MOT, abrogate or waive and Part C of the Subsidiary Agreement or any provision thereofProject, through Autosnabsbyt and MOT, in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. (ac) Except as the Administrator The Borrower shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out relend a portion of the proceeds of the Grant Loan to the Participating Cities under Subsidiary Loan Agreements to be entered into between the Borrower, the Oblast Governments acting as guarantors, and the Participating Cities, under terms and conditions satisfactory to the Bank, including, without limitation, the terms and conditions set forth in Schedule 7 to this Agreement. (d) The Borrower shall relend a portion of the proceeds of the Loan to Autosnabsbyt under a Autosnabsbyt Subsidiary Loan Agreement to be entered into between the Borrower and Autosnabsbyt, under terms and conditions which shall be governed by acceptable to the Bank and which shall include, inter alia: (i) one year maturity; (ii) a floating rate up to the equivalent of 250 basis points above the interest rate determined in accordance with the provisions of Schedule 3 to Section 2.05 of this Agreement, as said provisions may be further elaborated in the Procurement Plan. Agreements; (biii) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to foreign exchange views with the Palestinian Authority on said plan.risk borne by Autosnabsbyt;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, shall cause the Palestinian Authority to shall: (i) carry out all parts of the Project (other than Part B.2 thereof) through PMU CNA, with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, technical and environmental practices, the Environmental Management Plan and public utility the Approved POAs; (ii) carry out Parts B.2 of the Project, through SAGARPA, as part of the irrigated crop technology programs of Alianza Contigo, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, technical and environmental practices and shall the Environmental Management Plan; and (iii) provide and cause the Palestinian Authority to provide, be provided promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon The Borrower shall, through CNA, maintain during the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions implementation of the Master Schedule Project, a Project coordination system (PCS), with functions and responsibilities described in the Implementation Program set forth in Schedule 4 to this AgreementOperational Manual. (c) The Recipient shall make Borrower shall, through SHCP and CNA, enter into a contract with NAFIN (▇▇▇▇▇▇▇ Contract), satisfactory to the proceeds Bank, whereby: (i) NAFIN agrees to act as financial agent of the Grant available Borrower with regard to the Palestinian Authority under a subsidiary agreement Loan, meaning that, inter alia, NAFIN agrees to be entered into between represent the Recipient Borrower vis-à-vis the Bank for purposes of submitting Loan withdrawal applications to the Bank in form and the Palestinian Authority under terms and conditions which shall have been approved substance sufficient to justify disbursement by the AdministratorBank to the Borrower of Loan proceeds; (ii) CNA agrees to carry out all Parts of the Project (other than Part B.2 thereof), according to the terms of this Agreement; and (iii) the Borrower agrees that, through CNA (as executing agency) and SHCP, the Borrower shall cooperate fully with NAFIN to ensure that NAFIN is able to comply with all of NAFIN’s obligations referred to in paragraph (c) (i) of this Section and in Sections 4.01 and 4.02 of this Agreement. (d) The Recipient Borrower shall cause exercise its rights and carry out its obligations under the Palestinian Authority▇▇▇▇▇▇▇ Contract in such a manner as to protect the interests of the Bank and the Borrower to accomplish the purposes of the Loan. Except as the Bank may otherwise agree, the Borrower shall not amend or fail to enforce any provision of the ▇▇▇▇▇▇▇ Contract. In case of any conflict between the terms of: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth▇▇▇▇▇▇▇ Contract; and (ii) to take all actionthose of this Agreement, including the provision terms of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectthis Agreement shall prevail. (e) The Recipient shall Borrower shall, through CNA, enter into an agreement (Carta Compromiso) with each WU carrying out a WU Managed Off-farm Irrigation Subproject or a WU Managed On-farm Irrigation Subproject, under terms and conditions substantially similar to those of the model form contained in the Operational Manual (the Subproject Implementation Agreements), such agreements to provide for: (i) the terms under which the financial contributions will be made available to the WU to carry out the respective WU Managed Off-farm Irrigation Subproject or WU Managed On-farm Irrigation Subproject; and (ii) the obligation of such WU: (A) to carry out the WU Managed Off-farm Irrigation Subproject or the WU Managed On-farm Irrigation Subproject, and the IIIP, as provided in the Loan Agreement and the Operational Manual; (B) to contribute part of the capital costs of the WU Managed Off-farm Irrigation Subproject or the WU Managed On-farm Irrigation Subproject, all in accordance with the requirements of the Operational Manual; and (C) to comply with the environmental and social requirements applicable to the WU Managed Off-farm Irrigation Subproject or the WU Managed On-farm Irrigation Subproject. (f) The Borrower shall, through CNA: (i) exercise its rights and carry out its obligations under each of the Subsidiary Agreement Subproject Implementation Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the Grant, and, Loan; and (ii) except as the Administrator Bank shall otherwise agree, the Recipient shall not assign, amend, abrogate abrogate, suspend, waive, terminate or waive fail to enforce any of the Subsidiary Agreement Subproject Implementation Agreements or any provision thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ ' services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement. Section 3.03. The Borrower shall not later than March 30, 2004, through CNA and SAGARPA, make arrangements, satisfactory to the Bank (the Acuerdo SAGARPA), to set forth the terms of SAGARPA’s cooperation in the implementation of the Project, in coordinating with CNA in the financing of Irrigated Crop Technology Subprojects included in IIIPs; and in informing on the progress of such Irrigated Crop Technology Subprojects. Section 3.04. The Borrower shall, through NAFIN, inform the Bank of any revisions to the procedural rules of Alianza Contigo dated April 7, 2003, as said provisions may be further elaborated relevant for the implementation of Off-farm Irrigation Subprojects, On-farm Irrigation Subprojects and Irrigated Crop Technology Subprojects, prior to incorporation in the Procurement PlanOperational Manual of the revisions that may accordingly be needed. Section 3.05. The Borrower shall carry out the Project, through CNA, in accordance with an operational manual, satisfactory to the Bank, said manual to include, inter alia: (a) the procedures for the carrying out, monitoring and evaluation of the Project (including the procurement, financial management and disbursement requirements thereof); (b) the requirements for the preparation of IIIPs; (c) the criteria for the approval, implementation and monitoring of Off-farm Irrigation Subprojects and On-farm Irrigation Subprojects; (d) a model agreement for implementation of WU Managed Off-farm Irrigation Subprojects and WU Managed On-farm Irrigation Subprojects; (e) the screening procedures for implementation of works (including specific procedures for instances where the implementation of works and/or the use of the resulting infrastructure affects international waterways); and (f) the organization of the PCS. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.06. The Recipient shall update Borrower shall, through CNA, during the Procurement Plan execution of the Project: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, and in accordance with guidelines acceptable the indicators set forth in the Implementation Letter, the carrying out of the Project (including the Irrigated Crop Technology Subprojects), and the achievement of its objective, with the assistance of SAGARPA in respect of Part B.2 of the Project; (b) furnish and cause to be furnished to the AdministratorBank, and furnish such update to the Administrator not later than twelve (12) months after March 31 and September 30 of each year, commencing March 31, 2004, a progress report on the execution of the Project during the six-month period immediately preceding the date of each such report, said report to be of such scope and detail as the preceding Procurement PlanBank may reasonably request and to include the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section; (c) carry out, jointly with the Bank: (i) not later than May 31 and November 30 of each year, commencing May 31, 2004, reviews of the progress of the Project and the attainment of Project objective on the basis of the reports referred to in paragraph (b) of this Section; and (ii) not later than December 31, 2006, in addition to the subjects mentioned in (c) (i) hereof, a review (the mid-term review) of: (A) the appropriateness of IIIPs as a mechanism for integrating investments and coordinating On-farm Irrigation Subprojects, Off-farm Irrigation Subprojects and Irrigated Crop Technology Subprojects, (B) the Administratorprogress made in the transfer of Irrigation District’s approvalmanagement, and (C) the overall effectiveness of the performance and implementation arrangements of the Project; and (d) after each such review, take all measures required to ensure the efficient completion of the Project and the achievement of its objective, based on the conclusions and recommendations of the said reports and reviews, and the Bank's views on the matter. Section 3.033.07. The Borrower shall through CNA: (a) by November 30 of each year during Project implementation prepare and furnish to the Bank for comments, the proposed preliminary operating plan and budget, satisfactory to the Bank, detailing the Project (other than Part B.2 thereof) activities proposed to be carried out during the next succeeding year and the respective sources of funding therefor; and (b) not later than March 31 of each year furnish to the Bank the final operating plan, for such year (Approved POA). Section 3.08. Without limitation to or restrictions upon any provision of this Agreement, the Borrower shall through CNA, under arrangements satisfactory to the Bank, cause the dams and related infrastructure works supplying waters for Off-farm Irrigation Subprojects, On-farm Irrigation Subprojects and Irrigated Crop Technology Subprojects, to be periodically inspected in accordance with sound engineering practices in order to determine whether there are any deficiencies in infrastructure works or in the quality and adequacy of maintenance or methods of operations of the same, which may endanger their safety. Section 3.09. For the purposes of Section 8.06 9.07 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) through CNA prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority CNA on said plan.

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU WAPDA with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and management practices, and shall provide, or cause the Palestinian Authority WAPDA to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of WAPDA and any other departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section and those for the Special Account for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Administrator’s approvalAdministrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. Section 3.03. (c) For all expenditures with respect to which withdrawals from the purposes Grant Account were made on the basis of Section 8.06 statements of the General Conditions and without limitation theretoexpenditure, the RecipientRecipient shall: (i) maintain or cause to be maintained, through the Palestinian Authority, shall cause PMU to:in accordance with paragraph (a) prepareof this Section, on records and accounts reflecting such expenditures; (ii) retain, until at least one year after the basis of guidelines acceptable to Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator, and furnish ’s representatives to the Administrator not later than six (6) months after the Closing Date, or examine such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesrecords; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) afford of this Section and that the Administrator report of such audit contains a reasonable opportunity separate opinion by said auditors as to exchange views whether the statements of expenditure submitted during such fiscal year, together with the Palestinian Authority on said planprocedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialfinancial and environmental practices, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) six months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Administrator’s approvalAdministrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. Section 3.03. (c) For all expenditures with respect to which withdrawals from the purposes Grant Account were made on the basis of Section 8.06 statements of the General Conditions and without limitation theretoexpenditure, the RecipientRecipient shall: (i) maintain or cause to be maintained, through the Palestinian Authority, shall cause PMU to:in accordance with paragraph (a) prepareof this Section, on records and accounts reflecting such expenditures; (ii) retain, until at least one year after the basis of guidelines acceptable to Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator, and furnish 's representatives to the Administrator not later than six (6) months after the Closing Date, or examine such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesrecords; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) afford of this Section and that the Administrator report of such audit contains a reasonable opportunity separate opinion by said auditors as to exchange views whether the statements of expenditure submitted during such fiscal year, together with the Palestinian Authority on said planprocedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project Technical Assistance through PMU Elektroprivreda Bosne i Hercegovina (EPBiH) with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialfinancial and engineering practices, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the ProjectTechnical Assistance. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project Technical Assistance and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanTechnical Assistance of the departments or agencies of the Recipient responsible for carrying out the Technical Assistance or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to:; (aii) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator as soon as available, but in any case not later than six (6) months after the Closing Dateend of each such year, or the report of such later date audit by said auditors, of such scope and in such detail as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesAdministrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) afford of this Section and that the Administrator report of such audit contains a reasonable opportunity separate opinion by said auditors as to exchange views whether the statements of expenditure submitted during such fiscal year, together with the Palestinian Authority on said planprocedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause without any limitation or restriction upon any of its other obligations under the Palestinian Authority to carry out the Project through PMU with due diligence and efficiencyLoan Agreement, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project.shall: (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) cause FUNDACION and ESCUELA to perform in accordance with the provisions of the FUNDACION Project Agreement and the Subsidiary Agreement Agreement, respectively, all of the obligations of the Palestinian Authority FUNDACION and ESCUELA therein set forth; (ii) take or cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Projectto enable FUNDACION and ESCUELA to perform such obligations; and (iii) not to take or permit to be taken any action which would prevent or interfere with such performance. (b) Without limitation to the carrying provisions of paragraph (a) above, the Borrower shall: (i) make available to FUNDACION, as a grant, on a timely basis, the proceeds of the Loan, and any additional funds and resources as required by FUNDACION to carry out Parts A and B.1 of the Project; and (ii) make available to ESCUELA, through FUNDACION, as a grant, on a timely basis, the proceeds of the Loan as required by ESCUELA to carry out Part B.2 of the Project under an agreement to be entered into between the Borrower, FUNDACION and ESCUELA, such agreement to include, inter alia, the provisions set forth in Schedule 6 to this Agreement. (ec) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, and except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the such Subsidiary Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority The Bank and the AdministratorBorrower hereby agree that the obligations set forth in Sections 9.04, a plan to ensure the continued achievement of the Project’s objectives; 9.05, 9.06, 9.07, 9.08 and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU MAAR with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialagricultural, engineering, environmental administrative and public utility practices ▇▇▇▇▇- cial practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. Section 3.02. The Borrower shall: (ca) The Recipient shall make maintain the proceeds PMU with qualified and experienced staff in adequate numbers and with terms of the Grant available reference satisfactory to the Palestinian Authority under Association; and (b) establish and thereafter maintain within the PMU an IMU with qualified and experienced staff in adequate numbers and with terms of reference satisfactory to the Association, including responsibility for monitoring abstraction and utilization of groundwater and planning and coordinating the routine preventative maintenance and remedial repairs of irrigation structures and pumps in collaboration with the MRS. Section 3.03. The Borrower shall ensure the availability in each year of fertilizer, chemicals and seeds for all farmers in the Project Area in the quantities and on the basis of a subsidiary agreement timetable agreed with the Association to meet production targets. Section 3.04. The Borrower shall, by November 15 of each year: (a) furnish through the PMU to the Association for review and comment the work program, draft budget and financing plan for the Project for the following calendar year; and (b) review with the Association the crop protection chemi- cals proposed to be entered into between purchased by the Recipient Borrower during the following calendar year for the Project and thereafter purchase only the chemicals agreed with the Association. Section 3.05. The Borrower shall take all measures necessary to ensure that PCEP provide adequate power supply to operate the pumps on the tubewells constructed under WHAP II and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient engineering consultants required to assist in the design and supervision of civil works, whose employment shall update not be governed by the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date provisions of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: paragraph (a) prepareabove, on the basis of guidelines acceptable shall have qualifications and experience satisfactory to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said planAssociation.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU the PEAs with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialfinancial and economic policies and practices, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon The Borrower shall provide in its budget amounts adequate to meet the provisions Borrower’s counterpart contributions to the costs of paragraph the Project, said contributions being presently estimated by the Borrower and the Association to amount over the Project period to $6,000,000 equivalent. (ac) of this Section The Borrower shall appoint and except assign to FMF the following staff with functions and qualifications satisfactory to the Association: (i) a Project Officer to serve as the Recipient liaison between the PEAs and the Administrator shall otherwise agreeAssociation with respect to Project procurement and accounting procedures; (ii) a Procurement Specialist who shall, through procurement seminars (if necessary), assist the Recipient shall cause PEAs in: (A) the Palestinian Authority to carry carrying out of procurement under the Project through PMU in accordance with Project guidelines and procedures; and (B) preparing tender documents and contracts; (iii) a Project Accountant who shall assist the provisions Project Officer in (A) obtaining Project accounts from the PEAs, (B) arranging for the carrying out of Project audits, and (C) the administration of proceeds of the Master Schedule and Credit to be used for the Implementation Program set forth employment, as necessary, of qualified auditors to assist the PEAs in the preparation of their accounts; and (iv) a Senior Systems Analyst who shall assist the PEAs in the establishment of information systems under the computerization components of the Project. (d) The Borrower shall make available to the PEAs, as grants, the proceeds of the Credit allocated to the PEAs in Schedule 4 1 to this Agreement. (ce) The Recipient shall make the proceeds Borrower shall, until completion of the Grant available Project, carry out jointly with the Association an annual review of the Project in October of each year with a view to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator.assessing: (d) The Recipient shall cause the Palestinian Authority: (i) to perform progress made by the PEAs in accordance with the provisions carrying out their components of the Subsidiary Agreement all Project during the year immediately preceding the review including progress made in (A) carrying out (1) the training components of the obligations of Project against the Palestinian Authority therein targets set forth; out in training plans satisfactory to the Association, and (ii2) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of studies included in the Project; and (B) implementing the results and recommendations arising out of such studies; (ii) the work program and budgetary allocations proposed for each of the PEAs for the year immediately following; (iii) not to take or permit what changes, if any, need to be taken any action which would prevent or interfere with made in the scope and contents of the Project; and (iv) the reallocation of proceeds of the Credit taking into account progress made by the PEAs in carrying out of the Project. (ef) The Recipient Borrower shall exercise its rights under cause each PEA to carry out the Subsidiary actions described in Schedule 4 to this Agreement in such manner as to protect the interests satisfaction of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereofAssociation. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.

Execution of the Project. (a) Section 3.01. The Recipient declares its commitment to shall carry out, through the objectives Unidad de Coordinación - Proyecto de Transporte Público Privatizado de Buenos Aires, within the Recipient's Ministry of Economy and Public Works and Services the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrativetechnical, financialfinancial and environmental practices, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the ProjectProject . (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) 3.02. Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ ' services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement. (a) The Recipient shall maintain or cause to be maintained records and separate accounts adequate to reflect in accordance with sound accounting practices the operations, as said provisions may be further elaborated resources and expenditures in respect of the Procurement PlanProject of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall update shall: (i) have the Procurement Plan records and accounts referred to in paragraph (a) of this Section and those for the Special Account for each fiscal year audited, in accordance with guidelines appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator, and ; (ii) furnish such update to the Administrator as soon as available, but in any case not later than twelve (12) four months after the date end of each such year, the preceding Procurement Planreport of such audit by said auditors, for of such scope and in such detail as the Administrator’s approvalAdministrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. Section 3.03. (c) For all expenditures with respect to which withdrawals from the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator, and furnish ’s representatives to the Administrator not later than six (6) months after the Closing Date, or examine such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesrecords; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) afford of this Section and that the Administrator report of such audit contains a reasonable opportunity separate opinion by said auditors as to exchange views whether the statements of expenditure submitted during such fiscal year, together with the Palestinian Authority on said planprocedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals.

Execution of the Project. (a) The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU CMWU with due diligence and efficiency, and in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU CMWU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement Subsidiary Agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Except as the Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall cause the Palestinian Authority to update through CMWU, the Procurement Plan in accordance with guidelines terms of reference acceptable to the Administrator, Administrator and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to exchange views with the Palestinian Authority on said plan.twelve

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU SAT (with the assistance of NAFIN pursuant to the NAFIN Contract), all with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialfinancial and fiscal practices, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (ba) Without limitation upon The Borrower, through SAT, shall enter into a contract (Contrato ▇▇ ▇▇▇▇▇▇▇) with NAFIN, satisfactory to the provisions Bank, whereby: (i) NAFIN agrees to act as financial agent of the Borrower with regard to the Loan, meaning that, inter alia, NAFIN agrees to represent the Borrower vis-à-vis the Bank for purposes of submitting Loan withdrawal applications to the Bank in form and substance sufficient to justify disbursement by the Bank to the Borrower of Loan proceeds, agrees to maintain and operate the Special Account in compliance with the terms of this Agreement, agrees to ensure that the obligations set forth in Article IV of this Agreement are complied with as pertain to the Special Account and agrees to participate in the review referred to in Section 3.05 (d) of this Agreement; and (ii) the Borrower agrees that, through SAT, the Borrower shall cooperate fully with NAFIN to ensure that NAFIN is able to comply with all of NAFIN’s obligations referred to in paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this AgreementSection. (cb) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights and carry out its obligations under the Subsidiary Agreement NAFIN Contract in such a manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator Bank and to accomplish the purposes of the Grant, and, except Loan. Except as the Administrator shall Bank may otherwise agree, the Recipient Borrower shall not assign, amend, abrogate amend or waive the Subsidiary Agreement or fail to enforce any provision thereofof the NAFIN Contract. In case of any conflict between the terms of the NAFIN Contract and those of this Agreement, the terms of this Agreement shall prevail. (a) Without prejudice to Section 3.01 of this Agreement, the Borrower, through SAT, shall carry out the Project in accordance with an operational manual satisfactory to the Bank, which shall include, inter alia, the Project indicators, procedures and requirements on Project accounting, internal controls, planning, budgeting, financial reporting (including format and contents of FMR), auditing and disbursements. (b) In case of discrepancy between the provisions of the Operational Manual and those of this Agreement, the provisions set forth in this Agreement shall prevail. Section 3.04. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement. Section 3.05. The Borrower, as said provisions may be further elaborated through SAT, shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Procurement Plan.Operational Manual, the carrying out of the Project and the achievement of the objectives thereof; (b) The Recipient shall update prepare, under terms of reference satisfactory to the Procurement Plan Bank, and furnish to the Bank, each February 15 and August 15 during Project implementation, starting with the report due not later than February 15, 2003, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in accordance the carrying out of the Project during the calendar semester preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; (c) not later than February 15 of each year during Project implementation, starting with guidelines the procurement plan due not later than February 15, 2003, prepare and furnish to the Bank, a procurement plan, acceptable to the AdministratorBank, which plan shall include, inter alia, the Project activities to be carried out by the Borrower during the twelve calendar months following the presentation of said plan, a timetable for the implementation of said Project activities and furnish the appropriate procurement methods as provided in Schedule 4 to this Agreement; and (d) review with the Bank and NAFIN, starting on March 31, 2003, or such update later date as the Bank shall request, the pertinent reports referred to in paragraph (b) of this Section, and, thereafter, take or cause to be taken all measures required to ensure the Administrator not later than twelve (12) months after the date efficient completion of the preceding Procurement PlanProject and the achievement of the objectives thereof, for based on the Administratorconclusions and recommendations of the said reports and the Bank’s approvalviews on the matter. Section 3.033.06. For the purposes of Section 8.06 9.07 of the General Conditions and without limitation thereto, the RecipientBorrower, through the Palestinian AuthoritySAT, shall cause PMU toshall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority FHIS to carry out the Project through PMU with the assistance of the Participating Sector Agencies, the Eligible Mancomunidades, and, for purposes of Part B.3 of the Project, the Electricity Providers, all with due diligence and efficiency, efficiency and in conformity with appropriate administrative, engineering, economic, financial, engineeringtechnical, social and environmental practices, and public utility practices in accordance with the Operational Manual, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon The Borrower shall enter into an agreement with FHIS (the provisions FHIS Subsidiary Agreement), satisfactory to the Association, providing inter alia, for: (i) the provision to FHIS of paragraph the funds, facilities, services and other resources required to enable FHIS to carry out the Project, including the transfer of the proceeds of the Credit on a grant basis; and (aii) the obligation of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority FHIS to carry out the Project through PMU in accordance with the provisions of the Master Schedule terms and the Implementation Program conditions set forth in Schedule 4 this Agreement and in the Operational Manual, including the obligation to: (A) comply with the provisions of Sections 4.01 and 4.02 of this Agreement; (B) promptly inform the Association of any condition which interferes or threatens to interfere with the progress of the Project or the Subprojects, the accomplishment of the purposes of the Credit, or the performance of its obligations under the FHIS Subsidiary Agreement; and (C) prepare the reports referred to in Section 3.09 of this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights under the FHIS Subsidiary Agreement in such a manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not change, assign, amend, abrogate abrogate, waive or waive fail to enforce the FHIS Subsidiary Agreement or any provision thereof. (a) Except as The Borrower shall cause FHIS to enter into an agreement with each Participating Sector Agency (a Participation Agreement), under terms and conditions satisfactory to the Administrator shall otherwise agreeAssociation, procurement of the goodssuch agreement to provide inter alia, works for: (i) coordination mechanisms ensuring consistent approaches and consultants’ services required for complementarity between the Project and activities implemented by such Participating Sector Agency; (ii) assistance by such Participating Sector Agency to be financed out FHIS on sector specific technical issues, including, inter alia, Subproject evaluation, screening criteria, preparation of technical specifications, and review of technical designs; (iii) provision by such Participating Sector Agency of technical assistance and training to FHIS, UTIs and small-scale infrastructure service providers for the design, implementation and the monitoring of the proceeds of the Grant shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated infrastructure systems included in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement of the Project’s objectivesRIAPs; and (biv) afford provision of technical assistance by consultants hired by FHIS under Part C of the Administrator a reasonable opportunity Project and goods to exchange views with the Palestinian Authority on said plansuch Participating Sector Agency to enable it to fulfill its obligations under paragraphs (i), (ii) and (iii) above.

Execution of the Project. (a) The Recipient Twitezimbere declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, the Development Credit Agreement and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental and public utility management practices and shall provide, or cause the Palestinian Authority to providebe provided, promptly as needed, the funds, facilities, services services, and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and and, except as the Recipient Association, the Borrower, and the Administrator Twitezimbere shall otherwise agree, the Recipient Twitezimbere shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 3 to the Development Credit Agreement and the Twitezimbere Implementation Program set forth in Schedule 2 to this Agreement. (c) The Recipient Twitezimbere undertakes that, unless the Association shall make otherwise agree, Subproject Grants will be made in accordance with the proceeds of procedures and on the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administratorset forth or referred to in Section II of Schedule 2 to this Agreement. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Twitezimbere shall exercise its rights under the Subsidiary each Subproject Grant Agreement in such manner as to (i) protect the interests of the RecipientBorrower, the Palestinian Authority Association, and Twitezimbere; (ii) comply with its obligations under this Agreement and the Administrator Convention; and to accomplish (iii) achieve the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereofProject. (a) Section 2.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 1 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.032.03. For Twitezimbere shall perform all its obligations under the purposes Convention. Except as the Association shall otherwise agree, Twitezimbere shall not take or concur in any action which would have the effect of amending, abrogating, assigning, or waiving the Convention or any provision thereof. Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: 2.04. (a) prepareTwitezimbere shall, on at the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement request of the Project’s objectives; and (b) afford the Administrator a reasonable opportunity to Association, exchange views with the Palestinian Authority on said planAssociation with regard to the progress of the Project, the performance of its obligations under this Agreement and the Convention, and other matters relating to the purposes of the Credit.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialfinancial and public health and safety practices, engineering, and environmental and public utility practices social standards acceptable to the Association, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Association shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with Section 3.02. Without limitation upon the provisions of the Subsidiary Agreement all paragraph (a) of the obligations Section 3.01 of the Palestinian Authority therein set forth; (ii) to take all actionthis Agreement, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator Borrower and the Association shall otherwise agree, the Recipient shall not assignBorrower shall, amend, abrogate or waive for purposes of financing its contribution to expenditures under the Subsidiary Agreement or any provision thereof.Project: (a) open an account at the National Bank of Cambodia (the Project Account) and, thereafter, maintain said Project account under terms and conditions acceptable to the Association until the completion of the Project; (b) deposit into the Project Account, out of its own resources, an initial amount equivalent to two hundred thousand Dollars ($200,000); (c) thereafter, out of its own resources, replenish the Project Account on a quarterly basis by depositing therein the amounts needed in accordance with the annual action plan and budget referred to in paragraph 8 (b)(iv) of Schedule 4 to this Agreement; (d) ensure that funds deposited into the Project Account in accordance with paragraphs (b) and (c) of this Section shall be used exclusively to finance expenditures under the Project other than those financed from the proceeds of the Credit, the Development Grants or the DFID Grant; and (e) for purposes of this Section, the term “own resources” referred to in paragraphs (b) and (c) of this Section means resources of the Borrower other than those derived from the proceeds of the Credit, the Development Grants, the DFID Grant or the ADB Loan. Section 3.03. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.033.04. For the purposes of Section 8.06 9.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator not Association by no later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a final Project evaluation report together with a plan to ensure for the continued achievement of the objectives of the Project’s objectives; and; (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan; and (c) for purposes of preparing the Project evaluation report and the plan referred to in paragraph (a) of this Section, the Borrower shall, by no later than three (3) months prior to the Closing Date, carry out an evaluation survey of the impacts of the Project, under terms of reference satisfactory to the Association.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out or cause the Palestinian Authority to carry be carried out the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financialbanking, engineeringeconomic, environmental financial and public utility practices technical practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) For the purpose of carrying out the Project, the Borrower shall make available the equivalent of the proceeds of the Loan under Subsidiary Financing Agreements acceptable to the Bank to be entered into between the Borrower and each Participating Financial Institution, under terms and conditions satisfactory to the Bank, and which shall include, without limitation, those set forth in Schedule 5 to this Agreement. (c) The Borrower shall exercise its rights under the Fiscal Agency Agreement and any Subsidiary Financing Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the Fiscal Agency Agreement and any Subsidiary Financing Agreement or any provision thereof. (d) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Bank shall otherwise agree, the Recipient Borrower shall carry out or cause the Palestinian Authority to carry be carried out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 5 to this Agreement. (ca) The Recipient Borrower undertakes that, unless the Bank shall make otherwise agree, Sub-loans will be made in accordance with the proceeds of procedures and on the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administratorset forth or referred to in Schedule 5 to this Agreement. (db) The Recipient Borrower shall cause the Palestinian Authorityexercise its rights in relation to each Subsidiary Financing Agreement in such manner as to: (i) to perform in accordance with protect the provisions interests of the Subsidiary Agreement all of Bank and the obligations of the Palestinian Authority therein set forthBorrower; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Projectcomply with its obligations under this Agreement; and (iii) not to take or permit to be taken any action which would prevent or interfere with achieve the carrying out purposes of the Project. (e) The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator and to accomplish the purposes of the Grant, and, except as the Administrator shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive the Subsidiary Agreement or any provision thereof. (a) Section 3.03. Except as the Administrator Bank shall otherwise agree, procurement of the goods, goods and works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.033.04. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toThe Borrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) Section 3.01. The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, shall cause carry out: (a) Part A of the Palestinian Authority Project, through CNA; and (b) Part B of the Project, through CNA, with the assistance of an Organismo Operador (pursuant to carry out the Project through PMU Subproject Agreement), all with due diligence and efficiency, efficiency and in conformity with the Operational Manual and with appropriate environmental, administrative, financialmanagerial, engineeringfinancial and social practices, environmental and public utility practices and shall take or cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable CNA to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (ea) The Recipient Borrower, through SHCP and CNA, shall enter into a contract (Contrato ▇▇ ▇▇▇▇▇▇▇) with BANSEFI, satisfactory to the Bank, whereby: (i) BANSEFI agrees to act as financial agent of the Borrower with regard to the Loan, meaning that, inter alia, BANSEFI agrees to represent the Borrower vis-à-vis the Bank for purposes of submitting Loan withdrawal applications to the Bank in form and substance sufficient to justify disbursement by the Bank to the Borrower of Loan proceeds and agrees to maintain and operate the Special Account in compliance with the terms of this Agreement; and (ii) the Borrower agrees that, through SHCP and CNA, the Borrower shall cooperate fully with BANSEFI to ensure that BANSEFI is able to comply with all of BANSEFI’s obligations referred to in paragraph (a) of this Section. (b) The Borrower shall exercise its rights and carry out its obligations under the Subsidiary Contrato ▇▇ ▇▇▇▇▇▇▇ and (through CNA) under each Subproject Agreement in such a manner as to protect the interests of the Recipient, the Palestinian Authority and the Administrator Bank and to accomplish the purposes of the Grant, and, except Loan. Except as the Administrator shall Bank may otherwise agree, the Recipient Borrower, through SHCP or CNA (as the case may be), shall not assign, amend, abrogate amend or waive the Subsidiary Agreement or fail to enforce any provision thereofof the Contrato ▇▇ ▇▇▇▇▇▇▇ or of any Subproject Agreement. In case of any conflict between the terms of the Contrato ▇▇ ▇▇▇▇▇▇▇ or a Subproject Agreement and those of this Agreement, the terms of this Agreement shall prevail. (a) Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient Borrower, through CNA, shall update the Procurement Plan in accordance with guidelines acceptable to the AdministratorBank, and furnish such update to the Administrator Bank not later than twelve (12) 12 months after the date of the preceding Procurement Plan, for the AdministratorBank’s approval. (a) The Borrower, through CNA, shall maintain an operational manual, satisfactory to the Bank, containing, inter alia, specific provisions on detailed arrangements for the carrying out of the Project, including: (i) the procurement, financial management and disbursement requirements thereof; (ii) the criteria for the selection, approval, implementation and monitoring of Subprojects; (iii) a model to be used in the preparation of FMRs; (iv) a model Subproject Agreement; (v) the Monitoring Indicators; and (vi) institutional arrangements for Project coordination. (b) If any provision of the Operational Manual is inconsistent with a provision of this Agreement, the provision of this Agreement shall prevail. Section 3.033.05. At all times during Project implementation the Borrower, through CNA, shall maintain within CNA a team operating in accordance with the Operational Manual, responsible for overall Project planning, coordination, implementation, supervision, monitoring and evaluation. Section 3.06. For the purposes of Section 8.06 9.07 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) through CNA, prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future sustainability of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan. Section 3.07. The Borrower, through CNA, shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Monitoring Indicators, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, for each year during the implementation of the Project, semi-annual reports integrating the results of the monitoring and evaluation activities (including the status of the procurement and disbursements under the Project) performed pursuant to paragraph (a) of this Section, on the progress achieved in the execution of the Project during the period preceding the date of each said reports and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objective thereof during the period following such date; and (c) review with the Bank, by March 31 and September 30 of each year during the implementation of the Project or such later date as the Bank shall request, each report referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objective thereof, based on the conclusions and recommendations of said report and the Bank’s views on the matter. (a) Prior to the approval of any proposed civil work(s) under a Subproject, the Borrower, through CNA, shall, or shall cause the Organismo Operador (pursuant to the Subproject Agreement) to: (i) carry out an environmental screening and assessment of such proposed civil work(s); and (ii) prepare recommendations for the prevention, mitigation and remediation of any potential environmental damage arising from the implementation of such proposed civil work(s). (b) During the implementation of any civil work(s), the Borrower, through CNA shall, or shall cause the Organismo Operador (pursuant to the Subproject Agreement) to have the recommendations of the environmental screening and assessment referred to in subparagraph (a) (i) above carried out.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Program and the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project.Schedule (b) Without any limitation or restriction upon the provisions any of paragraph (a) of its other obligations under this Section and except as the Recipient and the Administrator shall otherwise agreeDevelopment Credit Agreement, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) TPTC to perform in accordance with the provisions of the Subsidiary Agreement Project Agreement, with respect to Parts B and C of the Project, all of the obligations of the Palestinian Authority TPTC therein set forth; (ii) , shall take and cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable TPTC to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with the carrying out such performance. (c) The Borrower shall make $20,000,000 equivalent of the Projectproceeds of the Credit available to TPTC as an equity contribution. (d) The Borrower shall relend $53,500,000 equivalent of the proceeds of the Credit to TPTC under a subsidiary loan agreement to be entered into between the Borrower and TPTC, under terms and conditions which shall have been approved by the Association, which shall include, inter alia, an interest rate of at least 8% per annum, with the principal to be repaid in twenty years including a grace period of five years, and with TPTC bearing the cost of fluctuations in the currencies relent to it. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Loan Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, and except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Loan Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for Part A of the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For The Borrower and the purposes of Section 8.06 Association hereby agree that the obligations set forth in Sections 9.03 through 9.08 of the General Conditions (relating to insurance, use of goods and without limitation theretoser- vices, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out by TPTC pursuant to Section 2.03 of the RecipientProject Agreement. Section 3.04. The Borrower shall by March 31, through 1994: (a) esta- ▇▇▇▇▇ a regulatory body for telecommunications and transfer responsibility for regulation of the Palestinian Authoritytelecommunications sector to said body; and (b) take all actions necessary to permit private sector involvement in Basic and Non Basic Telecommunications Services. Section 3.05. The Borrower shall: (a) by December 31, 1993, take all actions necessary to issue or cause to be issued at least one license for a cellular operator on the basis of competitive bidding procedures, satisfactory to the Association; and (b) by December 31, 1995, take all actions necessary to issue licenses to private sector operations or investors for two other Non-Basic Telecommunications Services. Section 3.06. The Borrower shall, by no later than March 31, 1994, take all necessary measures to establish two new entities to be responsible respectively for TPTC’s postal and telecommunica- tions functions. Section 3.07. The Borrower shall, by the date of the mid-term review: (a) furnish to the Association for its review and comments the recommendations of the study to be carried out under Part A.6 of the Project; and (b) prepare and submit to the Association an action plan, taking into account the Association’s comments, for the involvement of the private sector in the telecommunications sector. Section 3.08. The Borrower shall prepare or cause PMU to:to be prepared annually, for the Association’s review, a comparative analysis of the actual performance of TPTC against the performance indicators in the MOU and as indicated in the Annex to Schedule 2 to the Project Agreement. (a) prepare, on the basis of guidelines acceptable to the AdministratorThe Borrower shall, and furnish to the Administrator shall cause TPTC to, by not later than six (6) months after December 31, 1995, carry out jointly with the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority Association and the AdministratorDonors, a plan to ensure the continued achievement mid-term review of the Project’s objectives; and . Such review shall include, inter alia, an assessment of: (bi) afford the Administrator a reasonable opportunity to exchange views satisfactory compliance with the Palestinian Authority on said plan.Project implementation schedule; (ii) satis- factory compliance with the performance indicators; (iii) the establishment of a legal and regulatory framework for telecom- munications; (iv) operation of the regulatory body for telecom- munications; (v) issuance of licenses to private sector operators;

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementProject, and, to this end, shall carry out Parts A, B, D and E of the Project through RRA, and shall cause the Palestinian Authority PFIs to carry out Part C of the Project through PMU Project, all with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, agricultural and environmental and public utility practices practices, and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient Borrower and the Administrator Bank shall otherwise agree, the Recipient Borrower shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 5 to this Agreement. (c) The Recipient For the purposes of Part C of the Project, the Borrower shall make relend the proceeds of the Grant available Loan allocated to Category (4) of the Palestinian Authority table in Part A of Schedule 1 to this Agreement to PFIs under a subsidiary agreement Subsidiary Loan Agreement to be entered into between the Recipient Borrower, each PFI and the Palestinian Authority RRA under terms and conditions which shall have been approved by the AdministratorBank, including those set forth in Schedule 5 to this Agreement. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Project. (e) The Recipient Borrower shall exercise its rights under the Subsidiary Agreement Loan Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Bank and to accomplish the purposes of the GrantLoan, and, except as the Administrator Bank shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement Loan Agreements or any provision thereof. Section 3.02. Without limitation upon any of its obligations under Section 3.01 of this Agreement, the Borrower shall: ( a) open the Project Account in a commercial bank acceptable to the Bank, and deposit into said Account an initial amount equivalent to three hundred thousand Dollars ($300,000); (b) thereafter maintain the Project Account, and replenish said Account promptly before the beginning of each calendar semester with funds sufficient to enable the Borrower to meet its obligations under Section 3.01 of this Agreement for such period; (c) use the amount in the Project Account exclusively for financing the Borrower’s contribution to Project expenditures; and (d) ensure that sufficient annual allocations will be made, including in the Borrower’s budget, for the Borrower’s counterpart contribution to the costs of the Project. Section 3.03. Except as the Administrator Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Loan shall be governed by the provisions of Schedule 3 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.033.04. For the purposes of Section 8.06 9.07 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepare, on the basis of guidelines acceptable to the AdministratorBank, and furnish to the Administrator Bank not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorBank, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Bank a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, Agreement and, to this end, without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, shall cause the Palestinian Authority to carry out the Project through PMU with due diligence CBM and efficiency, in conformity with appropriate administrative, financial, engineering, environmental and public utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Recipient shall cause the Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) AGEPMF to perform in accordance with the provisions of the Subsidiary Agreement Project Agreements all of the obligations of the Palestinian Authority CBM and AGEPMF therein set forth; (ii) , shall take and cause to take be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable CBM and (iii) AGEPMF to perform such obligations, and shall not to take or permit to be taken any action which would prevent or interfere with the carrying out of the Projectsuch performance. (eb) The Recipient Borrower shall make part of the proceeds of the Credit available to CBM as a grant under a subsidiary agreement (the CBM Subsidiary Agreement) to be entered into between the Borrower and CBM, under terms and conditions which shall have been approved by the Association. (c) The Borrower shall make part of the proceeds of the Credit available to AGEPMF as a grant under a subsidiary agreement (the AGEPMF Subsidiary Agreement) to be entered into between the Borrower and AGEPMF, under terms and conditions which shall have been approved by the Association. (d) The Borrower shall exercise its rights under the Subsidiary Agreement Agreements in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the Grant, Credit and, except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Agreement Agreements or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable 1 to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approvalProject Agreements. Section 3.03. For The Borrower and the purposes of Section 8.06 Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and without limitation theretoservices, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out in respect of: (i) Part A.1 (b) of the RecipientProject by CBM pursuant to Section 2.03 of the CBM Project Agreement; and (ii) Parts A.2 through D of the Project by AGEPMF pursuant to Section 2.03 of the AGEPMF Project Agreement. Section 3.04. The Borrower shall establish and thereafter maintain, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Palestinian Authority and the Administrator, a plan to ensure the continued achievement until completion of the Project’s objectives; and (b) afford , a Project Account in a commercial bank, into which it shall deposit in advance, no later than January 31 in each year of the Administrator a reasonable opportunity Project, the amount required to exchange views with cover the Palestinian Authority on said planBorrower's annual counterpart contributions to the Project for the 12 months immediately following thereafter, as such amount shall have been determined by the Borrower and the Association.

Execution of the Project. (a) The Recipient Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 3 to this Agreement, and, to this end, : (i) shall cause the Palestinian Authority to carry out Part A of the Project through PMU with due diligence and efficiency, efficiency and in conformity with appropriate administrative, financial, engineering, environmental and public utility financial practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project.said Part; and (bii) Without without limitation or restriction upon any of its other obligations under the provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agreeDevelopment Credit Agreement, the Recipient Borrower shall cause the Palestinian Authority NBE to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program perform all its obligations set forth in Schedule 4 to this the Project Agreement. (c) The Recipient , shall make the proceeds of the Grant available to the Palestinian Authority under a subsidiary agreement take or cause to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Subsidiary Agreement all of the obligations of the Palestinian Authority therein set forth; (ii) to take taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; to enable NBE to perform such obligations, and (iii) shall not to take or permit to be taken any action which would prevent or interfere with such performance. (b) Without limitation upon the carrying out provisions of paragraph (a) of this Section, and except as the Borrower and the Association shall otherwise agree, the Borrower shall (i) coordinate the overall implementation of the Project, and (ii) carry out Part A of the Project, in accordance with the Implementation Program set forth in Schedule 3 to this Agreement. (ec) The Recipient Borrower shall make available the proceeds of the Credit to NBE under a subsidiary financing agreement to be entered into between the Borrower and NBE, under terms and conditions which shall have been approved by the Association and which shall include those set forth in paragraph 2 of Schedule 4 to this Agreement. (d) The Borrower shall exercise its rights under the Subsidiary Financing Agreement in such manner as to protect the interests of the Recipient, the Palestinian Authority Borrower and the Administrator Association and to accomplish the purposes of the GrantCredit, and, and except as the Administrator Association shall otherwise agree, the Recipient Borrower shall not assign, amend, abrogate or waive the Subsidiary Financing Agreement or any provision thereof. (a) Section 3.02. Except as the Administrator Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for Part B of the Project and to be financed out of the proceeds of the Grant Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient shall update the Procurement Plan in accordance with guidelines acceptable 2 to the Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approvalProject Agreement. Section 3.03. For the purposes of Section 8.06 9.07 of Article IX of the General Conditions and without limitation limitations thereto, the Recipient, through the Palestinian Authority, shall cause PMU toBorrower shall: (a) prepareprepare or cause to be prepared, on the basis of guidelines acceptable to the AdministratorAssociation, and furnish to the Administrator Association not later than six (6) months after the Closing Date, Date or such later date as may be agreed for this purpose between the Palestinian Authority Borrower and the AdministratorAssociation, a plan to ensure for the continued achievement future operation of the Project’s objectives; and (b) afford the Administrator Association a reasonable opportunity to exchange views with the Palestinian Authority Borrower on said plan. Section 3.04. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and