Common use of Part C of the Project Clause in Contracts

Part C of the Project. 1. In order to achieve the objectives of Part C of the Project, the Borrower shall maintain arrangements, satisfactory to the Association, pursuant to which the Borrower shall select Sub-projects to be carried out under Part C of the Project. When presenting a Sub-project to the Association for approval, the Borrower shall furnish to the Association an application, in form satisfactory to the Association, together with an appraisal of the proposed Sub-project, including a description of the expenditures proposed to be financed out of the proceeds of the Credit. 2. Unless otherwise agreed by the Borrower and the Association, no expenditures for works required for a Sub-project shall be eligible for financing out of the proceeds of the Credit allocated from time to time to Part C of the Project unless the Borrower shall have furnished to the Association: (i) an environmental and social management plan relating to the proposed Sub-project, prepared pursuant to the principles, policies and guidelines set out in ESMP and the Framework, together with evidence, satisfactory to the Association, that the Sub-project shall not involve any involuntary resettlement of local population; (ii) a feasibility study concerning the proposed Sub-project, including an economic justification, satisfactory in substance to the Association, demonstrating that the internal rate of return of the proposed Sub-project equals or exceeds twelve percent (12%).