Common use of Operating Principles Clause in Contracts

Operating Principles. Subject to the provisions of this Agreement, the operations of the Bank shall be conducted in accordance with the following principles: (a) The operations of the Bank shall provide principally for the financing of specific projects, including those forming part of a national, sub-regional or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutions, in order that the latter may finance development projects on terms approved by the Bank where the individual financing requirements of such projects are not, in the opinion of the Bank, large enough to warrant the direct supervision of the Bank. (b) The Bank shall not finance any undertaking in the territory of a member if that member objects to such financing. (c) Before a loan or guarantee is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal together with his recommendations on the basis of a staff study. (d) In considering an application for a loan or guarantee, the Bank shall pay due regard to the ability of the borrower to obtain financing elsewhere on terms and conditions that the Bank considers reasonable for the recipient. (e) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects that the borrower and its guarantor, if any, will be in a position to meet their obligations under the loan contract. (f) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such as are, in the opinion of the Bank, appropriate for the loan concerned. (g) In guaranteeing a loan made by other investors, or in under-writing the sale of securities, the Bank shall receive suitable compensation for its risk. (h) The proceeds of financing in the ordinary operations of the Bank shall normally be used only for procurement, in territories of members, of goods and services produced in those territories. In special cases the Board of Directors may, however, determine the circumstances in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement of goods and services produced in the territory of countries which have contributed substantially to the resources of the Bank. (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (j) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection with the project as they are actually incurred. (k) The Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, or participated in by the Bank are used only for the purposes for which the loan was granted and with due regard to considerations of economy and efficiency. (l) The Bank shall pay due regard to the desirability of a reasonable distribution of the benefits from its operations among the members in the region. (m) The Bank shall seek to maintain reasonable diversification in its investments in equity capital. (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (o) The Bank shall be guided by sound development banking principles in its operations.

Operating Principles. Subject to the provisions of this Agreement, the The operations of the Bank shall be conducted in accordance with the following principles: (ai) The operations of the Bank shall provide principally for the financing of specific projects, including those forming part of a national, sub-regional or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutionsentities, in order that the latter may finance specific development projects on terms approved by the Bank where the whose individual financing requirements of such projects are not, in the opinion of the Bank, large enough to warrant the direct supervision of the Bank.; (bii) In selecting suitable projects, the Bank shall always be guided by the provisions of sub- paragraph (ii) of Article 2 of this Agreement; (iii) The Bank shall not finance any undertaking in the territory of a member if that member objects to such financing.; (civ) Before a loan or guarantee is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal proposal, together with his recommendations recommendations, on the basis of a staff study.; (dv) In considering an application for a loan or guarantee, the Bank shall pay due regard to the ability of the borrower to obtain financing or facilities elsewhere on terms and conditions that the Bank considers reasonable for the recipient., taking into account all pertinent factors; (evi) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects that the borrower and its guarantor, if any, will be in a position to meet their obligations under the loan contract.; (fvii) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such such: as are, in the opinion of the Bank, appropriate for the loan concerned.; (gviii) In guaranteeing a loan made by other investors, or in under-writing underwriting the sale of securities, the Bank shall receive suitable compensation for its risk.; (hix) The proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank pursuant to paragraph 1 (i) of Article 19, shall normally be used only for procurement, procurement in territories of members, member countries of goods and services produced in those territories. In special cases member countries, except in any case in which the Board of Directors mayby a vote of the Directors representing not less than two-thirds of the total voting power of the members, however, determine the circumstances determines to permit procurement in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement a non-member country or of goods and services produced in a non-member country in special circumstances making such procurement appropriate, as in the territory case of countries a non-member country in which have contributed substantially a significant amount of financing has been provided to the resources of the Bank.; (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (jx) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection with the project as they are actually incurred.; (kxi) The Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, guaranteed or participated in by the Bank are used only for the purposes for which the loan was granted and with due regard attention to considerations of economy and efficiency.; (lxii) The Bank shall pay due regard to the desirability of avoiding a reasonable distribution disproportionate amount of its resources being used for the benefits from its operations among the members in the region.benefit of any member; (mxiii) The Bank shall seek to maintain reasonable diversification in its investments in equity capital.; it shall not assume responsibility for managing any entity or enterprise in which it has an investment, except where necessary to safeguard its investments; and (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (oxiv) The Bank shall be guided by sound development banking principles in its operations.

Operating Principles. Subject to the provisions of this Agreement, the operations of the The Bank shall be conducted operate in accordance with the following principles: (ai) The the Bank shall apply sound banking principles to all its operations; (ii) the operations of the Bank shall provide principally for the financing of specific projects, including those forming part of a national, sub-regional whether individual or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutions, in order that the latter may finance development projects on terms approved by the Bank where the individual financing requirements of such projects are not, in the opinion context of the Bankspecific investment programmes, large enough and for technical assistance, designed to warrant the direct supervision fulfil its purpose and functions as set out in Articles 1 and 2 of the Bank.this Agreement; (biii) The the Bank shall not finance any undertaking in the territory of a member if that member objects to such financing.; (civ) Before the Bank shall not allow a loan disproportionate amount of its resources to be used for the benefit of any member; (v) the Bank shall seek to maintain reasonable diversification in all its investments; (vi) before a loan, guarantee or guarantee equity investment is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal proposal, together with his recommendations recommendations, on the basis of a staff study.; (dvii) In considering an application for a loan the bank shall not undertake any financing, or guaranteeprovide any facilities, when the applicant is able to obtain sufficient financing or facilities elsewhere on terms and conditions that the Bank considers reasonable; (viii) in providing or guaranteeing financing, the Bank shall pay due regard to the ability of the borrower to obtain financing elsewhere on terms and conditions that the Bank considers reasonable for the recipient. (e) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects prospect that the borrower and its guarantor, if any, will be in a position to meet their obligations under the loan financing contract.; (fix) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such as are, in the opinion of the Bank, appropriate for the loan concerned. (g) In guaranteeing a loan made by other investors, or in under-writing the sale of securities, the Bank shall receive suitable compensation for its risk. (h) The proceeds of financing in the ordinary operations of the Bank shall normally be used only for procurement, in territories of members, of goods and services produced in those territories. In special cases the Board of Directors may, however, determine the circumstances in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement of goods and services produced in the territory of countries which have contributed substantially to the resources of the Bank. (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (j) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection with the project expenditure as they are it is actually incurred.; (kx) The the Bank shall seek to revolve its funds by selling its investments to private investors whenever it can appropriately do so on satisfactory terms; (xi) in its investments in individual enterprises, the Bank shall undertake its financing on terms and conditions which it considers appropriate, taking into account the requirements of the enterprise, the risks being undertaken by the Bank, and the terms and conditions normally obtained by private investors for similar financing; (xii) the Bank shall place no restriction upon the procurement of goods and services from any country from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Bank, and shall, in all appropriate cases, make its loans and other operations conditional on international invitations to tender being arranged; and (xiii) the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, guaranteed or participated in by the Bank Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due regard attention to considerations of economy and efficiency. (l) The Bank shall pay due regard to the desirability of a reasonable distribution of the benefits from its operations among the members in the region. (m) The Bank shall seek to maintain reasonable diversification in its investments in equity capital. (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (o) The Bank shall be guided by sound development banking principles in its operations.

Operating Principles. Subject to the provisions of this Agreement, the operations of the The Bank shall be conducted operate in accordance with the following principles: (ai) The the Bank shall apply sound banking principles to all its operations; (ii) the operations of the Bank shall provide principally for the financing of specific projects, including those forming part of a national, sub-regional whether individual or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutions, in order that the latter may finance development projects on terms approved by the Bank where the individual financing requirements of such projects are not, in the opinion context of the Bankspecific investment programmes, large enough and for technical assistance, designed to warrant the direct supervision fulfil its purpose and functions as set out in Articles 1 and 2 of the Bank.this Agreement; (biii) The the Bank shall not finance any undertaking in the territory of a member if that member objects to such financing.; (civ) Before the Bank shall not allow a loan disproportionate amount of its resources to be used for the benefit of any member; (v) the Bank shall seek to maintain reasonable diversification in all its investments; (vi) before a loan, guarantee or guarantee equity investment is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal proposal, together with his recommendations recommendations, on the basis of a staff study.; (dvii) In considering an application for a loan the Bank shall not undertake any financing, or guaranteeprovide any facilities, when the applicant is able to obtain sufficient financing or facilities elsewhere on terms and conditions that the Bank considers reasonable; (viii) in providing or guaranteeing financing, the Bank shall pay due regard to the ability of the borrower to obtain financing elsewhere on terms and conditions that the Bank considers reasonable for the recipient. (e) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects prospect that the borrower and its guarantor, if any, will be in a position to meet their obligations under the loan financing contract.; (fix) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such as are, in the opinion of the Bank, appropriate for the loan concerned. (g) In guaranteeing a loan made by other investors, or in under-writing the sale of securities, the Bank shall receive suitable compensation for its risk. (h) The proceeds of financing in the ordinary operations of the Bank shall normally be used only for procurement, in territories of members, of goods and services produced in those territories. In special cases the Board of Directors may, however, determine the circumstances in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement of goods and services produced in the territory of countries which have contributed substantially to the resources of the Bank. (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (j) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection with the project expenditure as they are it is actually incurred.; (kx) The the Bank shall seek to revolve its funds by selling its investments to private investors whenever it can appropriately do so on satisfactory terms; (xi) in its investments in individual enterprises, the Bank shall undertake its financing on terms and conditions which it considers appropriate, taking into account the requirements of the enterprise, the risks being undertaken by the Bank and the terms and conditions normally obtained by private investors for similar financing; (xii) the Bank shall place no restriction upon the procurement of goods and services from any country from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Bank, and shall, in all appropriate cases, make its loans and other operations conditional on international invitations to tender being arranged; and (xiii) the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, guaranteed or participated in by the Bank Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due regard attention to considerations of economy and efficiency. (l) The Bank shall pay due regard to the desirability of a reasonable distribution of the benefits from its operations among the members in the region. (m) The Bank shall seek to maintain reasonable diversification in its investments in equity capital. (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (o) The Bank shall be guided by sound development banking principles in its operations.;

Operating Principles. Subject to the provisions of this Agreement, the operations of the The Bank shall be conducted operate in accordance with the following principles: (ai) The the Bank shall apply sound banking principles to all its operations; Appendix H • 489 (ii) the operations of the Bank shall provide principally for the financing of specific spe- cific projects, including those forming part of a national, sub-regional whether individual or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutions, in order that the latter may finance development projects on terms approved by the Bank where the individual financing requirements of such projects are not, in the opinion context of the Bankspecific investment programmes, large enough and for technical assistance, designed to warrant the direct supervision fulfil its purpose and functions as set out in Articles 1 and 2 of the Bank.this Agreement; (biii) The the Bank shall not finance any undertaking in the territory of a member if that member objects to such financing.; (civ) Before the Bank shall not allow a loan disproportionate amount of its resources to be used for the benefit of any member; (v) the Bank shall seek to maintain reasonable diversification in all its investments; (vi) before a loan, guarantee or guarantee equity investment is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal proposal, together with his recommendations recommendations, on the basis of a staff study.; (dvii) In considering an application for a loan the bank shall not undertake any financing, or guaranteeprovide any facil- ities, when the applicant is able to obtain sufficient financing or facilities elsewhere on terms and conditions that the Bank con- ▇▇▇▇▇▇ reasonable; (viii) in providing or guaranteeing financing, the Bank shall pay due regard to the ability of the borrower to obtain financing elsewhere on terms and conditions that the Bank considers reasonable for the recipient. (e) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects prospect that the borrower and its guarantor, if any, will be in a position to meet their obligations under the loan financ- ing contract.; (fix) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such as are, in the opinion of the Bank, appropriate for the loan concerned. (g) In guaranteeing a loan made by other investors, or in under-writing the sale of securities, the Bank shall receive suitable compensation for its risk. (h) The proceeds of financing in the ordinary operations of the Bank shall normally be used only for procurement, in territories of members, of goods and services produced in those territories. In special cases the Board of Directors may, however, determine the circumstances in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement of goods and services produced in the territory of countries which have contributed substantially to the resources of the Bank. (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (j) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection with the project expenditure as they are it is actually incurred.; (kx) the Bank shall seek to revolve its funds by selling its investments to private investors whenever it can appropriately do so on satis- factory terms; (xi) in its investments in individual enterprises, the Bank shall under- take its financing on terms and conditions which it considers appropriate, taking into account the requirements of the enterprise, the risks being undertaken by the Bank, and the terms and condi- tions normally obtained by private investors for similar financing; (xii) the Bank shall place no restriction upon the procurement of goods and services from any country from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Bank, and shall, in all appropriate 490 • The Future of the Global Economic Organizations cases, make its loans and other operations conditional on inter- national invitations to tender being arranged; and (xiii) the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, guaranteed or participated in by the Bank Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due regard attention to considerations of economy and efficiency. (l) The Bank shall pay due regard to the desirability of a reasonable distribution of the benefits from its operations among the members in the region. (m) The Bank shall seek to maintain reasonable diversification in its investments in equity capital. (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (o) The Bank shall be guided by sound development banking principles in its operations.

Operating Principles. Subject to the provisions of this Agreement, the The operations of the Bank shall be conducted in accordance with the following principlesprinciples : (ai) The operations of the Bank shall provide principally for the financing of specific projects, including those forming part of a national, sub-regional or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutionsentities, in order that the latter may finance specific development projects on terms approved by the Bank where the whose individual financing requirements of such projects are not, . in the opinion of the Bank, large enough to warrant the direct supervision of the Bank.; (bii) In selecting suitable projects, the Bank shall always be guided by the provisions of paragraph (ii) of Article 2 of this Agreement; (iii) The Bank shall not finance any undertaking in the territory of a member if that member objects to such financing.; (civ) Before a loan or guarantee is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal proposal, together with his recommendations recommendation, on the basis of a staff study.; (dv) In considering an application for a loan or guarantee, the Bank shall pay due regard to the ability of the borrower to obtain financing or facilities elsewhere on terms and conditions that the Bank considers reasonable for the recipient., taking into account all pertinent factors ; (evi) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects that the borrower and its guarantor, if any, will be in a position to meet their obligations under the loan contract.; (fvii) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such as are, in the opinion of the Bank, appropriate for the loan concerned.concerned ; (gviii) In guaranteeing a loan made by other investors, or in under-writing underwriting the sale of securities, the Bank shall receive suitable compensation for its risk.; (hix) The proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank pursuant to paragraph 1 (i) of Article 19. shall normally be used only for procurement, procurement in territories of members, member countries of goods and services produced in those territories. In special cases member countries, except in any case in wnich the Board of Directors, by a vole of the Directors mayrepresenting not less than two-thirds of the total voting power of the members, however, determine the circumstances determines to permit procurement in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement a non-member country or of goods and services produced in a non-member country in special circumstances making such procurement appropriate, as in the territory case of countries a non-member country in which have contributed substantially a significant amount of financing has been provided to the resources of the Bank.Bank ; (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (jx) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection connexion with the project as they are actually incurred.incurred ; (kxi) The Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, guaranteed or participated in by the Bank are used only for the purposes for which the loan was granted and with due regard attention to considerations of economy and efficiency. (l) The Bank shall pay due regard to the desirability of a reasonable distribution of the benefits from its operations among the members in the region. (m) The Bank shall seek to maintain reasonable diversification in its investments in equity capital. (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (o) The Bank shall be guided by sound development banking principles in its operations.efficiency ;

Operating Principles. Subject The Bank shall operate in accordance with the following principles: (i) the Bank shall apply sound banking principles to the provisions of this Agreement, all its operations; (ii) the operations of the Bank shall be conducted in accordance with the following principles: (a) The operations of the Bank shall provide principally for the financing of specific projects, including those forming part of a national, sub-regional whether individual or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutions, in order that the latter may finance development projects on terms approved by the Bank where the individual financing requirements of such projects are not, in the opinion context of specific investment programmes, and for technical assistance, designed to fulfil its purpose and functions as set out in Articles 1 and 2 of this Agreement; (iii) the Bank, large enough to warrant the direct supervision of the Bank. (b) The Bank shall not finance any undertaking in the territory of a member if that member objects to such financing. ; (civ) Before the Bank shall not allow a loan disproportionate amount of its resources to be used for the benefit of any member; (v) the Bank shall seek to maintain reasonable diversification in all its investments; (vi) before a loan, guarantee or guarantee equity investment is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal proposal, together with his recommendations recommendations, on the basis of a staff study. ; (dvii) In considering an application for a loan the bank shall not undertake any financing, or guaranteeprovide any facilities, when the applicant is able to obtain sufficient financing or facilities elsewhere on terms and conditions that the Bank considers reasonable; (viii) in providing or guaranteeing financing, the Bank shall pay due regard to the ability of the borrower to obtain financing elsewhere on terms and conditions that the Bank considers reasonable for the recipient. (e) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects prospect that the borrower and its guarantor, if any, will be in a position to meet their obligations under the loan financing contract. ; (fix) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such as are, in the opinion of the Bank, appropriate for the loan concerned. (g) In guaranteeing a loan made by other investors, or in under-writing the sale of securities, the Bank shall receive suitable compensation for its risk. (h) The proceeds of financing in the ordinary operations of the Bank shall normally be used only for procurement, in territories of members, of goods and services produced in those territories. In special cases the Board of Directors may, however, determine the circumstances in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement of goods and services produced in the territory of countries which have contributed substantially to the resources of the Bank. (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (j) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection with the project expenditure as they are it is actually incurred. ; (kx) The the Bank shall seek to revolve its funds by selling its investments to private investors whenever it can appropriately do so on satisfactory terms; (xi) in its investments in individual enterprises, the Bank shall undertake its financing on terms and conditions which it considers appropriate, taking into account the requirements of the enterprise, the risks being undertaken by the Bank, and the terms and conditions normally obtained by private investors for similar financing; (xii) the Bank shall place no restriction upon the procurement of goods and services from any country from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Bank, and shall, in all appropriate cases, make its loans and other operations conditional on international invitations to tender being arranged; and (xiii) the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, guaranteed or participated in by the Bank Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due regard attention to considerations of economy and efficiency. (l) The Bank shall pay due regard to the desirability of a reasonable distribution of the benefits from its operations among the members in the region. (m) The Bank shall seek to maintain reasonable diversification in its investments in equity capital. (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (o) The Bank shall be guided by sound development banking principles in its operations.

Operating Principles. Subject to the provisions of this Agreement, the operations of the The Bank shall be conducted operate in accordance with the following principles: (ai) The the Bank shall apply sound banking principles to all its operations; (ii) the operations of the Bank shall provide principally for the financing of specific projects, including those forming part of a national, sub-regional . whether individual or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutions, in order that the latter may finance development projects on terms approved by the Bank where the individual financing requirements of such projects are not, in the opinion context of the Bankspecific investment programmes, large enough and for technical assistance, designed to warrant the direct supervision fulfil its purpose and functions as set out in Articles I and 2 of the Bank.this Agreement; (biii) The the Bank shall not finance any undertaking in the territory of a member if that member objects to such financing.; (civ) Before the Bank shall not allow a loan disproportionate amount of its resources to be used for the benefit of any member; (v) the Bank shall seek to maintain reasonable diversification in all its investments; (vi) before a loan, guarantee or guarantee equity investment is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal proposal, together with his recommendations recommendations, on the basis of a staff study.; (dvii) In considering an application for a loan the bank shall not undertake any financing, or guaranteeprovide any facilities, when the applicant is able to obtain sufficient financing or facilities elsewhere on terms and conditions that the Bank considers reasonable; (viii) in providing or guaranteeing financing, the Bank shall pay due regard to the ability of the borrower to obtain financing elsewhere on terms and conditions that the Bank considers reasonable for the recipient. (e) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects prospect that the borrower and its guarantor, . if any, will be in a position to meet their obligations under the loan financing contract.; (fix) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such as are, in the opinion of the Bank, appropriate for the loan concerned. (g) In guaranteeing a loan made by other investors, or in under-writing the sale of securities, the Bank shall receive suitable compensation for its risk. (h) The proceeds of financing in the ordinary operations of the Bank shall normally be used only for procurement, in territories of members, of goods and services produced in those territories. In special cases the Board of Directors may, however, determine the circumstances in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement of goods and services produced in the territory of countries which have contributed substantially to the resources of the Bank. (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (j) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection with the project expenditure as they are it is actually incurred.; (kx) The the Bank shall seek to revolve its funds by selling its investments to private investors whenever it can appropriately do so on satisfactory terms; (xi) in its investments in individual enterprises, the Bank shall undertake its financing on terms and conditions which it considers appropriate, taking into account the requirements of the enterprise, the risks being undertaken by the Bank, and the terms and conditions normally obtained by private investors for similar financing; (xii) the Bank shall place no restriction upon the procurement of goods and services from any country from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Bank, and shall. in all appropriate cases, make its loans and other operations conditional on international invitations to tender being arranged; and (xiii) the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, guaranteed or participated in by the Bank Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due regard attention to considerations of economy and efficiency. (l) The Bank shall pay due regard to the desirability of a reasonable distribution of the benefits from its operations among the members in the region. (m) The Bank shall seek to maintain reasonable diversification in its investments in equity capital. (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (o) The Bank shall be guided by sound development banking principles in its operations.

Operating Principles. Subject to the provisions of this Agreement, the The operations of the Bank shall be conducted in accordance with the following principles: (ai) The operations of the Bank shall provide principally for the financing of specific projects, including those forming part of a national, sub-regional or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutionsentities, in order that the latter may finance specific development projects on terms approved by the Bank where the whose individual financing requirements of such projects are not, in the opinion of the Bank, large enough to warrant the direct supervision of the Bank.; (bii) In selecting suitable projects, the Bank shall always be guided by the provisions of paragraph (ii) of Article 2 of this Agreement; (iii) The Bank shall not finance any undertaking in the territory of a member if that member objects to such financing.; (civ) Before a loan or guarantee is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal proposal, together with his recommendations recommendations, on the basis of a staff study.; (dv) In considering an application for a loan or guarantee, the Bank shall pay due regard to the ability of the borrower to obtain financing or facilities elsewhere on terms and conditions that the Bank considers reasonable for the recipient., taking into account all pertinent factors; (evi) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects that the borrower and its guarantor, if any, will be in a position to meet their obligations under the loan contract.; (fvii) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such as are, in the opinion of the Bank, appropriate for the loan loan. concerned.; (gviii) In guaranteeing a loan made by other investors, or in under-writing underwriting the sale of securities, the Bank shall receive suitable compensation for its risk.; (hix) The proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank pursuant to paragraph 1 (i) of Article 19, shall normally be used only for procurement, procurement in territories of members, member countries of goods and services produced in those territories. In special cases member countries, except in any case in which the Board of Directors, by a vote of the Directors mayrepresenting not less than two-thirds of the total voting power of the members, however, determine the circumstances determines to permit procurement in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement a non-member country or of goods and services produced in a non-member country in special circumstances making such procurement appropriate, as in the territory case of countries a non-member country in which have contributed substantially a significant amount of financing has been provided to the resources of the Bank.; (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (jx) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection connexion with the project as they are actually incurred.; (kxi) The Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, guaranteed or participated in by the Bank are used only for the purposes for which the loan was granted and with due regard attention to considerations of economy and efficiency.; (lxii) The Bank shall pay due regard to the desirability of avoiding a reasonable distribution disproportionate amount of its resources being used for the benefits from its operations among the members in the region.benefit of any member; (mxiii) The Bank shall seek to maintain reasonable diversification in its investments in equity capital.; it shall not assume responsibility for managing any entity or enterprise in which it has an investment, except where necessary to safeguard its investments; and (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (oxiv) The Bank shall be guided by sound development banking principles in its operations.

Operating Principles. Subject to the provisions of this Agreement, the The operations of the Bank shall be conducted in accordance with the following principles: (ai) The operations of the Bank shall provide principally for the financing of specific projects, including those forming part of a national, sub-sub- regional or regional development programme. They may, however, include loans to, or guarantees of loans made to, national development banks or other suitable financial institutionsentities, in order that the latter may finance specific development projects on terms approved by the Bank where the whose individual financing requirements of such projects are not, in the opinion of the Bank, large enough to warrant the direct supervision of the Bank.; (bii) In selecting suitable projects, the Bank shall always be guided by the provisions of subparagraph (ii) of Article 2 of this Agreement; (iii) The Bank shall not finance any undertaking in the territory of a member if that member objects to such financing.; (civ) Before a loan or guarantee is granted, the applicant shall have submitted an adequate loan or guarantee proposal and the President of the Bank shall have presented to the Board of Directors a written report regarding the proposal proposal, together with his recommendations recommendations, on the basis of a staff study.; (dv) In considering an application for a loan or guarantee, the Bank shall pay due regard to the ability of the borrower to obtain financing or facilities elsewhere on terms and conditions that the Bank considers reasonable for the recipient., taking into account all pertinent factors; (evi) In making or guaranteeing a loan, the Bank shall pay due regard to the prospects that the borrower and its guarantor, if any, will be in a position to meet their obligations under the loan contract.; (fvii) In making or guaranteeing a loan, the rate of interest, other charges and the schedule for repayment of principal shall be such such: as are, in the opinion of the Bank, appropriate for the loan concerned.; (gviii) In guaranteeing a loan made by other investors, or in under-writing underwriting the sale of securities, the Bank shall receive suitable compensation for its risk.; (hix) The proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank pursuant to paragraph 1 (i) of Article 19, shall normally be used only for procurement, procurement in territories of members, member countries of goods and services produced in those territories. In special cases member countries, except in any case in which the Board of Directors mayby a vote of the Directors representing not less than two- thirds of the total voting power of the members, however, determine the circumstances determines to permit procurement in which the procurement of goods and services may be permitted elsewhere, giving particular consideration wherever practicable to procurement a non-member country or of goods and services produced in a non-member country in special circumstances making such procurement appropriate, as in the territory case of countries a non-member country in which have contributed substantially a significant amount of financing has been provided to the resources of the Bank.; (i) In procuring services, and in facilitating financing for entities or enterprises in the private sector, the Bank shall pay due regard to the need to develop and strengthen undertakings, entities and skills of individuals belonging to the region. (jx) In the case of a direct loan made by the Bank, the borrower shall be permitted by the Bank to draw its funds only to meet expenditures in connection with the project as they are actually incurred.; (kxi) The Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed, guaranteed or participated in by the Bank are used only for the purposes for which the loan was granted and with due regard attention to considerations of economy and efficiency.; (lxii) The Bank shall pay due regard to the desirability of avoiding a reasonable distribution disproportionate amount of its resources being used for the benefits from its operations among the members in the region.benefit of any member; (mxiii) The Bank shall seek to maintain reasonable diversification in its investments in equity capital.; it shall not assume responsibility for managing any entity or enterprise in which it has an investment, except where necessary to safeguard its investments; and (n) The Bank may provide financing to meet either external or local expenditures in respect of a project being assisted, provided that in its ordinary operations the Bank shall provide financing for local expenditures in the territory in which the project is located only in exceptional circumstances and not exceeding a reasonable proportion of the total of such expenditures, or in circumstances where such financing may be provided with local currency restricted under paragraph 2 of Article 23. (oxiv) The Bank shall be guided by sound development banking principles in its operations.