Common use of Subsidiary Financing Institutional and Other Arrangements Clause in Contracts

Subsidiary Financing Institutional and Other Arrangements. 1. To facilitate the carrying out of the Project, the Recipient shall make the proceeds of the Financing available to the Project Implementing Entity on a grant basis, under a Subsidiary Agreement to be entered into between the Recipient, the Project Implementing Entity and the Municipality of Dushanbe, under terms and conditions approved by the Association, which shall include the following, namely, that the Subsidiary Grant shall be denominated in US Dollars. 2. The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. The Recipient shall not assign, amend, arrogate, or waive the Subsidiary Agreement or any of its provisions without prior approval by the Association. 3. The Recipient shall review, in accordance with established procedures, the periodic proposals for tariff adjustments submitted by the Project Implementing Entity at least annually, and thereafter, the Recipient, jointly with the Municipality of Dushanbe, shall promptly take action, in accordance with the applicable laws of the Republic of Tajikistan, to adjust said tariffs so that the Project Implementing Entity can meet its obligations by collecting sufficient revenues to cover operation and maintenance costs and other expenses. 4. The Recipient, jointly with the Municipality of Dushanbe, shall cause the Project Implementing Entity to implement the Operational Performance Improvement Action Plan in a timely and satisfactory manner. 5. The Recipient shall take all measures necessary to ensure that the Municipality of Dushanbe and the national government agencies shall, after review of the forecast amount of water consumption prepared by the Project Implementing Entity every six (6) months: (a) allocate in the relevant operating budgets of municipal entities adequate funds for payment of water fees; and (b) ensure that said funds are paid. 6. The Recipient shall, and shall cause, the Municipality of Dushanbe to take all measures necessary to ensure that the Project Implementing Entity is able to collect water fees from its customers. 7. The Recipient shall cause the Municipality of Dushanbe to take all measures necessary to ensure appropriate yearly local budgetary allocations required for Project implementation. 8. The Recipient shall ensure that all measures necessary for carrying out the EMMP, the Resettlement Policy Framework and the Resettlement Action Plan(s) shall be taken in a timely manner. 9. The Recipient shall not assign, amend, arrogate, or waive the Resettlement Policy Framework, the Resettlement Action Plan and/or EMMP or any of their provisions, without prior approval of the Association.

Subsidiary Financing Institutional and Other Arrangements. 1. To facilitate the carrying out of the Project, Project the Recipient shall make the proceeds of the Financing available to the Project Implementing Entity on a grant basis, DVK under a Subsidiary Agreement to be entered into between the Recipient, the Project Implementing Entity Recipient and the Municipality of DushanbeDVK, under terms and conditions approved by the Association, which shall include the following, namely, that : (a) The term of the Subsidiary Grant Loan shall be thirty (30) years, including a grace period of five years. (b) Interest on the amount of the Subsidiary Loan withdrawn and outstanding from time to time at a rate that shall gradually increase every year for ten years after the grace period to reach five percent (5%). (c) The Subsidiary Loan shall be denominated in US Dollars. 2. The Recipient shall exercise its rights under the Subsidiary Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. The Recipient shall not assign, amend, arrogate, or waive the Subsidiary Agreement or any of its provisions without prior approval by the Association. 3. The Recipient shall take all measures necessary to ensure that: (a) the Municipality of Dushanbe shall review, in accordance with established procedures, the periodic proposals for tariff adjustments submitted by the Project Implementing Entity at least annually, DVK quarterly; and (b) thereafter, the Recipient, jointly with the Municipality of Dushanbe, Dushanbe shall promptly take action, in accordance with the applicable laws of the Republic of Tajikistan, action to adjust said tariffs so that the Project Implementing Entity DVK can meet its obligations by collecting sufficient revenues to cover operation and maintenance costs and other expenses. 4. The Recipient, jointly with the Municipality of Dushanbe, shall cause the Project Implementing Entity to implement the Operational Performance Improvement Action Plan in a timely and satisfactory manner. 5. The Recipient shall take all measures necessary to ensure that the Municipality of Dushanbe and the national government agencies shall, after review of the forecast amount of water consumption prepared by the Project Implementing Entity DVK every six (6) months: (a) allocate in the relevant operating budgets of municipal entities or budget organizations adequate funds for payment of water fees; and (b) ensure that said funds are paidpaid to DVK. 65. The Recipient shall, and shall cause, the Municipality of Dushanbe to shall take all measures necessary to ensure that the Project Implementing Entity DVK is able to collect water fees from its customers, including but not limited to disconnection of non-paying customers. 76. The Recipient shall cause the Municipality of Dushanbe to take all measures necessary to ensure appropriate yearly local budgetary allocations required for Project implementation. 87. The Recipient shall ensure that all measures necessary for the carrying out of the EMMP, the Resettlement Policy Framework and the Resettlement Action Plan(s) EMMP shall be taken in a timely manner. 98. The Recipient Recipient, through the PCU, shall not assignprepare and furnish to the Association by November 30 in each year, amendfor its review and concurrence, arrogatean annual work program for the Project for the following calendar year, or waive the Resettlement Policy Framework, the Resettlement Action Plan and/or EMMP or any of their provisions, without prior approval of the Associationincluding procurement and financing plans.