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Law No. 57 Of 1 August 1991 Ratification Of The Loan Agreement Between Romania And The International Bank For Reconstruction And Development

Original Language Title:  LEGE nr. 57 din 1 august 1991 pentru ratificarea Acordului de împrumut dintre România şi Banca Internaţională pentru Reconstrucţie şi Dezvoltare

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LEGE No. 57 of 1 August 1991 for the ratification of the Loan Agreement between Romania and the International Bank for Reconstruction and Development
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR NO. 168 of 15 August 1991



The Romanian Parliament adopts this law + Article UNIC. The loan agreement between Romania and the International Bank for Reconstruction and Development, amounting to US $180 million, concluded in Washington on July 3, 1991, is ratified. This law was adopted by the Assembly of Deputies at its meeting on July 31, 1991. p. PRESIDENT OF THE ASSEMBLY IONEL ROMAN This law was passed by the Senate at its July 31, 1991 meeting. p. SENATE PRESIDENT VASILE MOIS By virtue art. 82 lit. m) of Decree-Law no. 92/1990 for the election of the Romanian Parliament and President promulgam the Law on the ratification of the Loan Agreement between Romania and the International Bank for Reconstruction and Development and we have its publication in the Official Gazette of Romania. ROMANIAN PRESIDENT ION ILIESCU LOAN AGREEMENT (Project on technical assistance and critical loans) between Romania and the International Bank for Reconstruction and Development Agreement, dated July 3, 1991, between Romania (Lending) and the International Bank for Reconstruction and Development (Bank). Since the loan being satisfied with the feasibility and priority of the project, described in Annex 2 of the Agreement, he asked the Bank to help him in financing the project; Emboit (B): The borrower intends to contract from the European Investment Bank (EIB) a loan in the amount equivalent to $17.4 million to help fund Part A. 2 of the project, in the terms and conditions described in a agreement (EIB loan agreement) to be concluded between the Loan and the EIB; and As (C): The Bank has agreed, taking into account the foregoing, to extend the loan to the Loan in the terms and conditions described in this Agreement; Consequently, the present parties, in this way, agree with the following: + Article 1 General conditions. Definitions Section 1.01. "the" general conditions " applicable to the Bank's loan and guarantee agreements of 1.01.1985, as described below (General Conditions), are an integral part of this agreement: (a) The last sentence of section 3.02 is deleted. (b) In section 6.02, the subparagraph (k) shall become subparagraphs 1 and a new subparagraph (k) shall be added as follows: " (k) An extraordinary situation will be arisen, given that any further shooting within the loan would be inconsistent with the provisions of art. III, Section 3 of the Bank's Statute. " Section 1.02. If the context does not require a different approach, the terms defined in the "General Conditions" have that meaning in this regard as described, and the following additional terms have the following meanings: ((a) "Agricultural Bank" means the Agricultural Bank of Lending, established and functioning in accordance with the Decision of the Loan no. 1196/12.11.1990 1196/12.11.1990; (b) "Bucharest Metro" means the Bucharest underground transport system of the Loan; (c) "categories" means, grouped, each of the categories of benchmarks to be financed from the loan, as described in Table 1 of Annex 1 to the Agreement, and the term "category" means each of these categories; (d) "Commercial Bank" means the Commercial Bank of the Loan (Romanian Commercial Bank), established and functioning in accordance with the Decision of the Loan no. 1195/12.11.1990 1195/12.11.1990; ((e) "Convex"-S.A. means the commercial company of the Loan for handling operations of bulk goods at the terminal, established and operating in accordance with the Decision of the Loan no. 19/10.01.1991 19/10.01.1991; (f) "Contransimex" means the external trade firm of the Lending for public works and technical consultancy (engineering), established and functioning in accordance with the Decision of the Loan no. 93/31.1.1991 93/31.1.1991; ((g) "Cooperative Bank" means the Cooperative Bank of the Loan (Bank Coop), established and functioning in accordance with the Decision of the Loan no. 992/3.11.1990 992/3.11.1990; ((h) "Development Bank" means the Loan Development Bank (Romanian Development Bank), established and functioning in accordance with the Decision of the Loan no. 1178/2.11.1990 1178/2.11.1990; (i) "Fiscal year" means the period of 12 months corresponding to any of the fiscal years of the Loan, the period starting on 1 January and ending on 31 December in a calendar year; (j) "Interbank market course" means the exchange rate in the convertible currency of the leu (as it is defined below) as established periodically in accordance with the provisions of the Law on Loan no. 15/1990 15/1990; (k) "leu" means the monetary unit of the borrower and "lei" means the plural of the term "leu"; ((l) "MOA" means the Ministry of Agriculture and the Food Industry of Lending; ((m) "MEF" means the Ministry of Economy and Finance of the Loan; ((n) "MOI" means the Ministry of Industry of Lending; ((o) "MOLSP" means the Ministry of Labour and Social Protection of the Loan; (p) "NAP" means the National Agency for the Privatization of Lending, established and functioning on the basis of the Decision of the Loan no. 823/25.07.1990 823/25.07.1990; ((q) "NCS" means the National Commission for the Statistics of Lending, established and functioning in accordance with the Decision of the Loan no. 27/30.12.1990 27/30.12.1990; (r) "Participation agreements" means, grouped, each of the bank participation agreements, to be concluded between the Loan and the participating banks (as this term is defined below) according to section 3.02 (b) and Part B a Annex 7 to the Agreement and the term "Participation Agreement" means each of the participation agreements; (s) "Participating banks" means the Agricultural Bank and the Romanian Development Bank and the term "Participating Bank" means any of the participating banks; (t) "PETROM" means the Autonomous Oil Regia of the Loan, established and functioning in accordance with the Decision of the Loan no. 23/30.01.1991 23/30.01.1991; ((u) "PIU" means the Project Implementation Collective, established within the Ministry of Economy and Finance in accordance with Minister's Order no. 233/ 233/ 15.04.1991 ; ((v) "RAL" means the Autonomous Regia of the Lending Lignite, established and functioning in accordance with the Decision of the Loan no. 1211/2.11.1990 1211/2.11.1990; ((w) "RENEL" means the Autonomous Electricity Regia of the Loan, established and functioning in accordance with the Decision of the Loan no. 1199/2.11.1990 1199/2.11.1990; (x) "ROMGAZ" means the Autonomous Regia of the natural gas of the Loan, established and functioning in accordance with the Decision of the Loan no. 16/10.01.1990 16/10.01.1990; ((y) "ROMAGRIMEX" means the foreign trade firm for the agriculture of the borrower, established and functioning in accordance with the Decision of the Loan no. 69/26.01.1990 69/26.01.1990; ((z) "ROM-POST-TELECOM" means the Administration for Post and Telecommunications of the Loan, established and functioning in accordance with the Decision of the Loan no. 883/30.07.1990 883/30.07.1990; (aa) "Banca de Economii" means the House of Savings and Consemnations of the Loan, established and functioning on the basis of the Borrower Decree no. 371/1958 371/1958; ((bb) "SOCEP"-S.A. means the commercial firm for general handling and containerization operations, established and functioning in accordance with the Decision of the borrower no. 19/10.01.1990 19/10.01.1990; ((cc) 'subsidiary loan agreement' means each of the subsidiary loan agreements to be concluded between the Loan and the implementing agencies (as the term is defined below) in accordance with Section 3.02 (a) of the Part Annex 7 to the Agreement and the term 'subsidiary loan agreement' means each of the sub-loan agreements; ((dd) "subloans" means the loans proposed to be made by the Loan to the implementing agencies (as the term is defined below) for the realization of the respective component of the project, in accordance with the terms and conditions The corresponding subsidiary loan agreement and the term 'sub-loan' means any of the sub-loans; (ee) 'implementing agencies' means the agencies, undertakings and other entities of the Loan referred to in paragraphs (b), (e), (f), paragraphs from (o) to (q), paragraph (t), paragraphs (v) to (z) and (bb) of this paragraph. sections and the term "implementing agency" means any of the implementing agencies; (ff) "the respective component of the project" means the following: METRO-Bucharest, part A (4) (b) of the project; CONVEX-S.A., part A (4) (c) of the project; CONTRANSIMEX, part A (4) (a) of the project; MOLSP, part B (8) of the project; NAP, Part B (2) of the project; NCS, part C (2) of the project; PETROM, parts A (1) (a) and B (5) (b) (ii) and (iii) of the project; RAL, parts A (3) and B (7) of the project; RENEL, part A (2) of the project: ROMGAZ, part A (1) (b) of the project: ROMAGRIMEX, part A (7) of the project: ROM-POST-TELECOM, part A (5) of the project and SOCEP-S.A., part A (4) ((c) of the project; and ((gg) 'special account' means any of the accounts referred to in Section 2.02 (b) of this Agreement and the term 'special accounts' means all of the above accounts. + Article 2 Loan Section 2.01. The Bank agrees to borrow on the Loan, in the terms and conditions exposed or referred to in this agreement, in different currencies, which will have a total agreed value equating to the amount of $180 million, which is represented by the Bank. the total drawdowns in the loan, each drawing as the date of its performance being determined by the Bank. Section 2.02. (a) The amount of the loan may be drawn from the loan account in accordance with the provisions of Annex 1 to this Agreement for the expenses incurred (or, if the Bank agrees, for those to be made) on the basis of the reasonable cost of the products and the services required by the project described in Annex 2 to this Agreement and to be financed by the loan. (b) For the purposes of the project, the Loan will open and maintain a special deposit account in dollars and a special deposit account in German marks, in banks agreed by the Bank and in terms and conditions satisfactory to the Bank, including a appropriate protection in case of damages for confiscation or seizure. Making deposits in/or payments from special accounts will be made in accordance with the provisions of Annex 6 to this agreement. Section 2.03. The closing date will be December 31, 1994 or a later date that the Bank will determine. The bank will promptly announce on the Loan about this later date. Section 2.04. The borrower will pay the Bank an non-use charge of 0.75% per year on the amount of the loan not drawn periodically. Section 2.05. (a) The borrower will pay the interest for the part of the loan drawn and paid periodically, at an equal rate, for each interest period, with the cost of the qualified loans, determined in the account of the previous semester, plus 0.5%. On each of the dates specified in section 2.06 of the Agreement, the Loan will pay the cumulative interest for the unused capital during the previous interest calculated at the rate applicable during such a period of interest. (b) As soon as possible, after the end of each semester, the bank will notify the Loan of the cost of the qualified loans, determined for that semester. (c) For purposes of this section: (i) "period of interest" means a period of 6 months ending on the date immediately preceding each date specified in section 2.06 of this Agreement, beginning with the period of interest in which this agreement is signed; (ii) "the cost of qualifying loans" signifies the cost, as reasonably determined by the Bank and expressed as an annual percentage, of the Bank's unsettled loans drawn after 30.07.1982, excluding those loans or parts of loans that the Bank has allocated for the financing of: (A) investments of the Bank and (B) loans that may be made by the Bank after 1.07.1989, bearing interest rates determined differently than those provided for in paragraph (a) of this section; ((iii) "semester" means the first 6 months or the next 6 months of the calendar year. (d) On a date that the Bank will subsequently communicate to the Loan, but in no less than 6 months, paragraphs (a), (b) and (c) (iii) of this section will be amended as follows: " (a) The borrower will pay the interest for the part of the loan drawn and repaid periodically, at a rate for each quarter equal to the cost of the qualified loans, determined for the previous quarter, plus 0.50%. On each of the dates specified in section 2.06 of this Agreement, the Loan will pay the cumulative interest for the part not reimbursed during the preceding period of interest, calculated at the rates applicable during such a period of interest. " "(b) As soon as possible after the end of each quarter, the Bank shall inform the Loan about the cost of the qualified loans, determined for such a quarter." "(c) (iii)" quarter "means a period of 3 months beginning on 1 January, 1 April, 1 July and 1 October of each calendar year." Section 2.06. Dobinda and other commissions will be paid semi-annually on March 15 and September 15 of each year. Section 2.07. The borrower will repay the loan in accordance with the amortization schedule set out in Annex 3 to the Agreement. + Article 3 Project implementation Section 3.01. (a) The borrower declares his commitment to the objectives of the project as stipulated in Annex 2 to the Agreement and, for this purpose, will result in good end or will cause the project to be carried out with due attention and efficiency and in compliance with the appropriate, technical, financial and administrative practices and will promptly provide the funds, facilities, services, and other project necessity resources. (b) Without limiting the provisions of paragraph (a) of this section and except for cases when the Loan and the Bank will otherwise agree, the Loan will realize or determine the project in accordance with the Implementation Program stipulated in Annex 5 to this Agreement. Section 3.02. (a) The loan will lay off part of the loan funds to the implementing agencies for the realization of the respective components of the project, through subsidiary loan agreements, concluded in terms and conditions that satisfy The Bank shall include, inter alia, the main terms and conditions set out in Part A of Annex 7 to the Agreement. (b) In order to administer the implementation and supervision of the subsidiary loan agreements, the Loan will conclude the participatory agreements with the participating banks, in terms and conditions to satisfy the Bank, including, among others, the main the terms and conditions set out in Part B of Annex 7 to this Agreement. (c) Without any limitation or restriction on the provisions of Annex 7 to the Agreement, the Loan will exercise its rights and will comply with its obligations arising from each of the subsidiary loan agreements and participation agreements in such So as to protect its own interests, as well as those of the Bank and to fulfill the purposes of the loan and, except in cases when the Bank would give express consent, the borrower does not agree, modify, repeal or waive any of the subsidiary or participation loan agreements, or none of the provisions of these Agreements. Section 3.03. (a) The loan will proceed as follows: (i) will submit to the Bank, no later than December 31, 1992, for analysis and commentary, an action plan drawn up on the basis of the recommendations in the study on the cost and energy prices referred to in Part B (4), (b), (i) of the project, with the aim, inter alia, to reconsider the price structure of its energy sector; and (ii) immediately thereafter will bring to fruition that plan with due attention and effectiveness, taking into account and Bank comments on its basis. (b) Until 31 January 1993, the Loan will send to the Bank for analysis and comment an action plan based on the reference period to be agreed by the Bank for-inter alia-immediate improvement in the economic and financial viability of RAL (including, but not limited, restructuring or closing of lignite mines and the application of measures aimed at increasing production from low cost area mines and reducing production in the case of non-efficient underground mines), as and to provide lignite needs for the rehabilitation of the two thermal power plants of the Loan located in Rovinari and Turceni. (c) The borrower: (i) no later than 1 September 1992, on the basis of the conclusions and recommendations of the first phase of the irrigation sector study, referred to in Part B (5) of the project, will submit to the Bank for analysis and comment the priority investments immediate and short term proposed by the Loan for its irrigation sector; (ii) no later than August 1, 1993, based on the conclusions and recommendations of the second and third phases of the said study, will present the Bank for analysis and comment on investment programmes on five (5) and ten (10) years for its irrigation sector, which will have the extent and details that the Bank will reasonably require. Section 3.04. The borrower, until the project is fulfilled, will maintain or care to maintain the PIU in a form and with such structure and functions (including, but not limited to, those presented in paragraph A of Annex 5 to this agreement) of the terms of the the reference agreed by the Bank in full. Section 3.05. Before initiating the purchase of any goods from those provided for in Part 4 (a) of the project, the Lending shall establish a system of sale by competitive domestic auction of the said goods, according to the requirements of the Bank, system which must ensure, among other things, that: (i) each of the said goods will be bought by the most advantageous bidder/bidders, based on a competitive bidding process, publicly announced; (ii) bids will be presented in sealed envelopes and will comprise the price and quantity offered; (iii) the opening of envelopes (tenders) will take place in public and in the presence of auctioneers who wish to participate; (iv) no adjudication will be made unless the price offered is at least equal to the equivalent in lei of the CIF cost of goods, valued at the lowest exchange rate on the market interbank of the last thirty (30) days before public announcement. Section 3.06. (a) No later than 31 August 1992, the borrower will consider and exchange views with the Bank on the following: (i) the portfolio of investment projects, including unfinished, of the Loan, for the purpose of determining, inter alia, the the future financing plan of the said projects; (ii) on the basis of the conclusions and recommendations resulting from the analysis in the above paragraph (i), the proposed investment programmes and the financing plans referred to for public investments of the Loan to be financed by the Government or semi-autonomous agencies during the financial year 1993. b) As soon as possible after the analysis stipulated in the sub-paragraph (a) (ii) of this section, the Loan will put into practice the mentioned investment programs, with the appropriate attention and efficiency, taking into account the comments and opinions Bank on them. Section 3.07. Unless the Bank agrees otherwise, the purchase of goods and consultancy services required by the project and which will be financed from the loan amounts will be subject to the provisions of Annex 4 to this agreement. + Article 4 Financial terms Section 4.01. (a) The borrower will hold or care for the record keeping of the loan in separate books and accounts that reflect, in accordance with established accounting practices, operations, resources and expenditure on the project of the agencies implementation and departments, agencies and other entities of the Loan responsible for carrying out the project or any part thereof. ((b) Lending: ((i) shall keep records and accounts referred to in paragraph (a) of this section, including those for special accounts for each financial year, verified in accordance with the principles of accounting expertise applied consistently by accounting experts independent banks agreed by the Bank; (ii) The borrower will make available to the Bank as soon as it is available, but in any case no later than six (6) months after the expiration of such a year, the report on the accounting expertise made by the experts remembered on the scope and the details required by the Bank; (iii) The loan will provide the Bank with any other information regarding the books and accounts mentioned, as well as their expertise, as the Bank will require, periodically. (c) For all expenses for which draws were made from the loan account, on the basis of supporting documents of expenses, the Loan: (i) will keep, in accordance with paragraph (a) of this section, registers and accounts reflecting these expenses; (ii) will keep, at least one more year after the Bank has received the report of the accounting expert for the financial year in which the last drawing from the loan or payment account was made from the special accounts, all documents (contracts, orders, invoices, receipts and other documents) highlighting the expenditure concerned; (iii) allows the representatives of the Bank to examine these documents; (iv) will ensure that these registers and accounts are included in the annual expertise referred to in paragraph (b) of this section and that the report on this expertise contains a point separate views of the said experts, on whether the statements of expenditure submitted by the Loan during the financial year, as well as the internal procedures and checks occasioned by their preparation, can guarantee the correctness of the drawdowns to which he refers. + Article 5 Penalties of the Bank Section 5.01. In addition to the provisions of section 6.02 (i) of the "General Conditions" the following additional situation is specified, namely: (a) The loan agreement with the EIB shall become effective until 31 December 1991 or at a later date agreed by the Bank; however, the provisions of this paragraph shall not apply if the borrower determines, in accordance with the requirements of the Bank, that the the project has funds available from other sources, in terms and conditions compatible with the obligations of the borrower in this agreement; ((b) (i) Conditioned by the provisions of subparagraphs (ii) of this paragraph: (A) the right of the borrower to draw from the EIB loan would be suspended, cancelled or terminated, in whole or in part, in accordance with the conditions of the Loan Agreement with the EIB; or (B) the EIB loan would become payable prior to the maturity agreed by the Loan Agreement; ((ii) Subparagraph (i) of this paragraph (b) shall not apply if the borrower determines, according to the Bank's requirements, that: (A) this suspension, cancellation, termination or premature termination is not caused by the inability of the Loan to execute any of its obligations under the EIB Loan Agreement; (B) adequate funds to carry out the project are available from other sources, in terms and conditions comparable to the obligations of the borrower arising from this agreement. Section 5.02. In accordance with the provisions of section 7.01 (h), of the "General Conditions", the following additional situation is stated, namely that the circumstance provided for in paragraph (b) (i) (B) of section 5.01 of this agreement may occur, conditional upon the provision of paragraph (b) (ii) of this section. + Article 6 Entry into force. Cease Section 6.01. The following situations are considered additional conditions for the entry into force of this agreement, within the meaning of section 12.01. ((c) of the "General Conditions": (a) that the borrower has concluded at least two subsidiary loan agreements, agreed by the Bank, in order to carry out the project or any part thereof; (b) that the borrower has entered into participation agreements, agreed by the Bank, with each of the administrative banks; and (c) that the Loan has opened the special accounts in terms and conditions agreed by the Bank. Section 6.02. The following situation is specified as an additional issue within the meaning of section 12.02. (c) of the "General Conditions", being included in the opinion or opinions provided to the Bank by a Board agreed by the Bank, namely that each of the subsidiary and, participating loan agreements referred to in paragraphs (a) and (b) of the section 6.01. above may have been legalized or ratified according to the procedure, as well as signed and transmitted on behalf of the said parties and also that the parties be legally bound to it in accordance with the terms of the agreement. Section 6.03. Date ninety (90) days after the date of the agreement is specified for purposes of section 12.04 of the "General Conditions". + Article 7 Borrower's Representative. Addresses Section 7.01. The Ministry of Economy and Finance of the Loan is appointed as a representative of the Loan for the purposes of section 11.03 of the "General Conditions". Section 7.02. Specify the following addresses for the purposes of section 11.01. of the "General Conditions": For Borrower: Ministry of Economy and Finance, str. Madam no. 8, Bucharest-Romania telegraphic address: Telex 11.239 MINFIN For the Bank: International Bank for Reconstruction and Development 1818 H Street, N-W. Washington D.C. 20433 U.S.A. Telegraph address: Telex INTBAFRAD248423 (RCA) Washington D.C. 82987 (FTCC) 64145 64145 (WUI) or 197688 (TRT) For the certification of the above, the parties present, through the authorized representatives according to the procedure, agreed that this agreement should be signed, on their behalf, in the District of Columbia U.S.A., on the day and year mentioned at the beginning of the agreement ROMANIA, through the authorized representative BIRD, through the Regional Vice President for Central and Eastern Europe and for North Africa + Annex 1 Drawdowns on loan 1. The table below indicates the categories of projects financed from the amounts received, the allowance of the loan amounts per category and the percentage of expenditure financed for the objectives in each category: CategoryAmount allotted (equivalent $)% of expenditure to be financed 1.Imports of spare parts and equipment 100% of foreign expenditure (a) (i) Part A (1) (i) of the project26.000.000 (ii) Part A (1) (ii) of the project9.000.000 (b) Part A (2) of the project22.800,000 (c) Part A (3) of the project26.600,000 (d) Part A (4) of the project: (i) Part A (4) (i) 26.800,000 (ii) Part A (4) (ii) 2.600,000 (iii) Part A (4) (iii) 1.700,000 (iv) Part A (4) (iv) 3.900.000 (e) Part A (5) a project6.800 000 (f) Part A (6) of the project15.900,000 (g) Part A (7) a project7.000.000 2.Consultancy and training services 100% of foreign expenditure (a) Part B (1) of the project400,000 (b) Part B (2) of the project1.000.000 (c) Part B (3) of the project1.400,000 (d) Part B (4) of the project2.000.000 (e) Part B B (5) of the project3.800,000 (f) Part B (6) of the project2.700.000 (g) Part B (7) of the project900,000 (h) Part B (8) of the project3.600,000 (i) Part C (1) of the project2.600,000 (j) Part C (2) of the project3.000.000 (k) Part C (3) a project200,000 3.Unallocated amount 9.300,000 TOTAL:180.000.000 2. For the purposes of this annex, the term "foreign expenses" means those expenses made in any currency, other than that of the Loan, for goods and services delivered from the territory of any country, other than that of the Loan. 3. Making abstraction of the provisions of paragraph 1 above: (i) no draws can be made regarding payments made prior to the date of this agreement, except for the drawdowns in the overall amount not more than $18,000,000, which may be made in respect of categories 1; 2 (b); 2 (c); 2 (e); 2 (g); 2 (h); 2 (i) and 2 (k) covering payments made for different expenses incurred before this date, but after 1 May 1991; (ii) no deposit may be made in the special accounts, no drawdowns and no commitments may be made for the payment of amounts for or on behalf of the Expenditure Loan of category 1, with the exception of category 1 (f), outside the situation in which the Loan: (A) has entered into a subsidiary loan agreement corresponding to the Implementation Agency for the realization of the respective component of the project in accordance with the provisions of Section 3.02 and Part (A) of Annex 7 to this Agreement; (B) presented the Bank with satisfactory evidence for the Bank from a legal body agreed by the Bank in the sense that the Subsidiary Loan Agreement was legalised or ratified according to the procedure and that it was concluded and sent on behalf of the parties, and the fact that the parties are legally bound to it in accordance with its conditions. + Annex 2 Project description The objectives of the project are: (a) supporting the performance of the production of key economic sectors of the Loan by financing imports of vital spare parts and other goods; (b) providing technical assistance to support the Lent in the implementation of the ongoing macroeconomic and sectoral reform programme. The project consists of the following parties, being subject to possible changes to which the Loan and the Bank may agree from time to time, in order to meet the following objectives: Part A: Imports of goods 1. Oil and Gas Sector: Provision of drilling cutters, pumps and other equipment, spare parts and rehabilitation materials of approximately: (a) one thousand two hundred (1,200) oil wells and ninety (90) gaseous wells. 2. Energy sector: Provision of equipment, spare parts and adjacent materials for: (a) rehabilitation of four (4) electric blocks of 330 MW, two (2) located in Turceni and two (2) in Rovinari; (b) improvement of the protection system at (3) transformer stations located in Tintareni, Urechesti and Filesti; (c) improving the operational safety of the Bucharest Electricity Distribution Centre and all regional electricity distribution centres; (d) perfecting the performance of electrostatic precipitates located in Turceni; (e) the supply of adjacent equipment and materials to measure the level of pollution and (f) the supply of computers and adjacent materials. 3. Mining sector of the lignite: Provision of equipment, spare parts and adjacent materials for the Autonomous Regia of the lignite, which powers with lignite the two (2) energy plants located in Rovinari and Turceni. 4. Transport Sector: Providing: (a) spare parts, tires and engines for buses and trucks; (b) safety and control equipment for SUBWAY-Bucharest and (c) equipment, spare parts and auxiliary materials for the port maritime Constanta, including forklifts, cranes, bulk carriers and equipment for containers, trucks with fork crane, subassemblies for cranes and conveyor belts. 5. Telecommunication sector: Providing telecommunications cables, transmission equipment, spare parts, measuring instruments and other adjacent items. 6. irrigation sector: Supply of pumps for irrigation, engines, spare parts and adjacent equipment and materials for improving the pumping capacities of the following: fifteen (15) irrigation systems; Boiana-Bottle Calarasi, SP Vitcovia; SIST. Conesti; SIST. Greek; SIST. Mouth of Ialomita; Jegalia (SIST. Gorcea); Dichiseni (T. Calarasi); Galati-Calarasi; Movila Miresei (T. Braila); SIST. Galati (SPA Gimia); IMB; Grojori-Chiscani; Borcea de Sus (Calarasi); Biliesti-Ciorvanesti and Galicea (Dolj). 7. Agricultural Mechanization: Supply of batteries and transmission belts for combine-harvesters. Part B: Technical assistance 1. Accounting and accounting expertise: Introduction, development and national strengthening of the accounting profession and accounting expert, including the development of a modern accounting system and accounting expertise. 2. Developing the private sector. Business privatization: (a) the design and development of an appropriate strategy and legislation, as well as regulations, options and techniques for the privatisation of state-owned enterprises; (b) the development of techniques and methodologies for the privatisation of small-scale state-owned enterprises, the establishment, on the basis of a pilot project, of a programme for the privatisation of small selected companies and, (c) the provision of advisory services and experts to strengthen the capacities of the National Agency for Privatisation in the areas of providing strategies on the privatization of enterprises and in shaping privatisation programmes, including in this sense seminars for studies and training abroad of the selected staff of the NAP, as well as the provision of computers and adjacent materials. 3. Industrial restructuring: (a) the development of a strategy and an institutional framework, as well as the implementation of a programme for the restructuring of state industrial enterprises and the preparation of restructuring model programmes for eight (8) industrial enterprises state, selected in accordance with the Bank's systems and methodology; (b) provision of advisory services and experts to strengthen the capacities of the Ministry of Industry in the fields of energy policy and industrial restructuring including study seminars and training abroad for staff Selected M.I. as well as providing computers and adjacent materials. 4. Banking restructuring: Preparation of strategic development plans, personnel training plans and assessment of required hardware needs for Agricultural Bank, Commercial Bank, Cooperative Bank, Development Bank and C.E.C. 5. Energy: (a) the development of a system for determining energy costs and prices and implementing a programme for the full liberalisation of energy prices; (b) the development of the following studies based on reference terms agreed by the Bank: (i) a study on the cost of energy and prices; (ii) an analysis and evaluation study of oil and gas reserves; (iii) a study assessing the potential Borrower's hydrocarbons. 6. Irrigation: Development of a study on the irrigation system, based on the reference conditions agreed by the Bank, assessing the existing irrigation system for the purpose of issuing appropriate recommendations for their modernization/privatization. 7. Mining: Providing consulting services and experts for: (a) providing assistance in the efficient organization of costs and increasing the productivity of some of the surface mines that have low costs; (b) making recommendations for the long-term improvement of the performance and productivity of said mines. 8. Employment services: Assistance for the Ministry of Labour and Social Protection on the line of improving the work in the field of staff, computerization in the field of employment services, development of active labour market analysis, training and employment consulting services, in the development of an information system on the labour market, and in the implementation of a system of social insurance and a pension fund, including the provision of expert services, preparation, computers and related materials. Part C: Institutional development 1. Provide consulting services and experts for the purpose of: (a) strengthening the capacity of the Ministry of Economy and Finance in the fields of macroeconomic policy, quantitative analyses, economic forecasting, revision of non-performing public investment portfolios, development of a system of analysis of public investments, including seminars of studies and training abroad for the selected personnel from the Ministry of Economy and Finance and the provision of computers and adjacent materials; (b) strengthening the capacity of the National Reform Council in the areas of macroeconomic and legislative reform, including studies and training seminars abroad for selected staff within the council, and the provision of Computers and adjacent materials. 2. Provide a network of computers and materials for statistical data analysis and their processing by the National Commission for Statistics, including the preparation of that personnel. 3. Provide consulting services and experts to strengthen the PIU capabilities regarding project coordination, supervision and implementation, including the provision of computers and adjacent materials. * The project is expected to be completed by June (30) 1994. + Annex 3 Amortisation scheme Payment date due to the main debt payment expressed in U.S. dollars *) Every March 15 and September 15-starting March 15, 1997 until March 15, 20069,000,000 On September 15, 20069,000,000 Note *) The figures of this column represent the equivalent in U.S. dollars determined on the respective shooting dates. See "General Conditions", sections 3.04 and 4.03. Premiums for anticipatory payments Following the provisions of section 3.04 of the "General Conditions", the amount to be paid for the principal amount of any maturity in the loan, paid in advance, shall be that fixed by the percentage specified in the table below: Payment period in advance The first interest rate (expressed in percent per year) applied to the loan on the date of advance payment multiplied by:-Not more than three years before the maturity period0,18-More than three years, but not more than six years before the due period0,35-More than six years, but not more than eleven years before maturity 0,65-More than eleven years, but not more than fifteen years before maturity 0,88-More than fifteen years before maturity, 1,00 + Annex 4 Procurement and consultancy services + Section 1 Procurement of goods Part A: Competitive international tender 1. Except those provided for in Part B of this text, the goods shall be procured by contracts awarded in accordance with the procedures set out in Sections 1 and 2 of the " Guide for the procurement of goods in the case of financing by BIRD and AID ", published by the Bank in May 1985. 2. As far as practicable, contracts for goods will be grouped on auction packages estimated at a cost equating to $300,000 or more, each. Part B: Other procurement procedures 1. Contracts for goods estimated at a cost equivalent to $300,000 or less per contract, up to a global amount that will not exceed the equivalent of $33,000,000, can be purchased through contracts awarded on the basis of comparison of price quotations obtained from at least three suppliers from at least two different eligible countries, according to the guide, in accordance with the procedures acceptable to the Bank. 2. Contracts for batteries and transmission belts for combine and secerators awarded no later than July 31, 1991-and this up to the level of a global amount that will not exceed the equivalent of $7,500,000-can be purchased through contracts on the basis of the comparison of the price quotations obtained from at least three suppliers from at least two different eligible countries, in accordance with the guide and the procedures acceptable to the Bank. 3. Contracts for the procurement of original parts or articles requested for standardization may be awarded after negotiations with suppliers, with the prior approval of the Bank, in accordance with the usual procedure. Part C: Analysis by the Bank of procurement decisions 1. Reviving invitations to tender and proposed adjudications, as well as final contracts: ((a) In respect of each contract estimated at $300,000 or more, the procedures set out in paragraphs 2 and 4 of Apendixul 1 of the guide will be applied. Where payments for such contracts will be made from special accounts, these procedures will be amended to ensure that the two copies of the contract, requested to be provided to the Bank in accordance with paragraph (d), will be sent to the Bank before the first payment from the special accounts in the case of such a contract (b) In respect of each contract which is not regulated in the preceding paragraph, the provisions set out in paragraphs 3 and 4 of Apendixul 1 of the guide shall apply. Where payments for such contracts will be made from special accounts, certain procedures will be amended to ensure that the two copies of the contract, together with other information requested to be provided to the Bank as a result of paragraph 3, shall be provided to the Bank as part of the records submitted on the basis of paragraph 4 of Annex 7 to this Agreement. (c) The provisions of the preceding paragraph (b) shall not apply to contracts to which the Bank has authorized drawdowns on the basis of statement of expenditure. The 15% figure is here specified for completing paragraph 4 of Apendixul 1 of the guide. + Section 2 Hiring consultants In the sense of supporting the Loan in the realization of the project, it will employ or determine the employment of only those consultants whose qualification, experience, terms and conditions of employment will meet the requirements of the Bank. These consultants will be selected in accordance with the satisfactory principles and procedures for the Bank, based on the "Guide for the use of consultations by the World Bank's loan recipients", published by the Bank in August 1981. + Annex 5 Implementation programme A. Coordination The Government of the Borrower, represented by the Ministry of Economy and Finance (M.E.F.), will coordinate the overall implementation of the project through the Project Implementation Collective-Project Implementation Unit (PIU); PIU, among others: ((1) keep in touch with the implementing agencies or other entities responsible for carrying out the project or any part thereof; (2) keep records of project-related activities; (3) prepares to provide the Bank with half-yearly reports on the progress made in the implementation of the project; and ((4) shall be in charge of carrying out the expertise referred to in Section 4.01 of this Agreement. B. Project implementation (1) PETROM will be responsible for the realization of parts A (1) (a) and B (5) (b) (ii) and (iii) of the project, and ROMGAZ will be responsible for the realization of Part A (1) (b) of the project. To this end, PETROM, among others: (a) shall designate a special collective to be established and adequately staffed, within PETROM, until 1 September 1991, having as tasks the acquisition of goods within Part A (1) of the project; and ((b) carry out the studies referred to in Part B (5) (b) (ii) and (iii) of the project, in accordance with the satisfactory terms of reference for the Bank and ensure the completion of those studies by 31 July 1993, and thereafter an exchange of views with the Bank on the results, conclusions and recommendations resulting from them. ((2) RENEL shall be responsible for carrying out the rehabilitation of the two power plants referred to in Part A (2) of the project. Among other things, RENEL: ((a) shall maintain with adequate personnel and adequate resources the existence of the implementation collective constituted by it, with a view to achieving that part A (2) of the project; (b) prepare by means of this collective and provide the Bank, on a quarterly basis, reports on the progress made in the performance of that part A (2); ((3) The RAL will respond to the achievement of parts A (3) and B (7) of the project. ((4) CONTRANSIMEX will be responsible for carrying out part A (4) (a) of the project. (5) METRO-Bucharest will be responsible for the realization of part A (4) (b) of the project. ((6) CONVEX and SOCEP will be responsible for carrying out part A (4) (c) of the project. ((7) ROM-POST-TELECOM will be responsible for carrying out part A (5) of the project. (8) The Ministry of Agriculture and Food Industry (MOA) will be responsible for the realization of parts A (6) and B (6) of the project. MOA, among others: ((a) coordinate, through its irrigation department, the purchase and distribution to the irrigation units referred to in Part A (6) of the project, of the equipment to be imported in accordance with that Part A (6); (b) carry out the study to which Part B (6) refers in accordance with the satisfactory terms of reference for the Bank and provide the Bank, for examination and observations, with the report containing the conclusions and recommendations of this study after completion to him. (9) ROMAGRIMEX will be responsible for carrying out part A (7) of the project. (10) The Ministry of Economy and Finance will be responsible for the realization of parts B (1), C (1) and C (3) of the project. (11) The National Privatisation Agency (NAP) will be responsible for carrying out part B (2) of the project. (12) The Ministry of Industry (MOI) will be responsible for carrying out part B (3) and B (5) (a) and B (5) (b) (i) of the project. MOI, inter alia: (a) shall ensure by 31 December 1992 the preparation of the strategy and the restructuring policy of the undertakings referred to in that Part B (3). ((13) Each of: the Agricultural Bank, the Commercial Bank, the Bank Coop, the Development Bank and the C.E.C. will be liable for the realization of their respective parts within Part B (4) of the project. (14) The Ministry of Labour and Social Protection (MOLSP) will be responsible for carrying out part B (8) of the project. Through a collective, which will be established within the MOLSP until September 1, 1991, the collective will be liable, among other things, for: (a) the preparation of a programme in accordance with the satisfactory terms of reference for the Bank, for the contracting of consultancy services, of experts and the realization of training; (b) the preparation of half-yearly reports on the progress made in the implementation of Part B (8). (15) The National Commission for Statistics will be responsible for carrying out part C (2) of the project. + Annex 6 Special accounts 1. For the purposes of this Annex: (a) The term 'eligible category' means categories 1 and 2 as set out in the table in paragraph 1 of Annex 1 to this Agreement; (b) The term 'eligible expenditure' means expenditure covering the reasonable cost of the goods and services financed by this project and to be financed from the loan, allocated from time to time in accordance with the eligible categories, in accordance with the the provisions of Annex 1 to this Agreement; (c) The term "authorized allocation" means the total amount equivalent to $15 million to be drawn from the loan account and stored in the special accounts according to paragraph 3 (a) of this annex. 2. Payments from special accounts will be made exclusively for eligible expenses in accordance with the provisions of this annex. 3. After the Bank has received satisfactory evidence for it that, the special accounts have been opened in good rule, the draws of the authorized allowances and the following draws to refuel the special accounts will be made as follows: (a) For withdrawals of authorized allowances, the Loan will send to the Bank an application or applications for a deposit or deposits that do not exceed the total amount of the authorized allowances. On the basis of these requests, the Bank, on behalf of the Loan, will draw from the loan account and store in the special accounts that (those) amount (amounts) that the Loan asked for (requested); ((b) (i) For the replenishment of the special accounts, the Loan will send to the Bank requests for deposit into the special accounts, at those intervals that the Bank will specify; (ii) Previously, or on the date of each such request, the Loan shall send to the Bank the documents or other evidence required, in accordance with paragraph 4 of this annex, for payment or payments in accordance with the refueling requested. Based on this request, the Bank, on behalf of the Loan, will draw from the loan account and deposit into the special accounts those amounts that the Loan requested and which will have been shown in the said documents and other proof that they were paid. of the special accounts for eligible expenditure. All these deposits will be drawn by the Bank from the loan account in accordance with the respective eligible categories and in the respective equivalent amounts, which were justified by the said documents and other evidence. 4. For each payment made by the borrower from the special accounts, the borrower, when the Bank reasonably requests, will transmit to the Bank such documents and other evidence, showing that that payment was exclusively made for the expenses eligible. 5. Contrary to those provided for in paragraph 3 of this annex, the Bank shall not be required to continue to make deposits in the special accounts: (a) if at any time the Bank will be determined that all draws be made by the Loan directly from the loan account, in accordance with the provisions of art. 5 of the "General Conditions" and paragraph (a) of section 2.02 of this Agreement, or ((b) once the total amount not drawn from the loan, allocated to the eligible categories, minus the amount of any commitment for which the Bank has entered the backlog in accordance with section 5.02. of the "General Conditions", as far as the project is concerned, shall equal the equivalent of twice the amount of the authorised allowance. After that, the draw from the loan account of the remaining amount not drawn from the loan, allocated to the eligible categories, will follow those procedures that the Bank will specify by notification to the Loan. These further draws will be made only and to the extent that the Bank will be convinced that all these amounts, remaining deposited in the special accounts at the time of the notification, will be used for making payments for eligible expenses. 6. (a) If the Bank is to be determined, at any time, that any payment from the special accounts: (i) was made for an expense or an ineligible amount according to paragraph 2 of this annex, or (ii) was not justified by a proof provided to the Bank, The borrower, immediately upon receipt of the note from the Bank: (A) will provide that additional proof that the Bank may require or (B) deposit in the special accounts (or, if the Bank so requests, will return to the Bank) an amount equal to the amount of that payment or Parts of that, unjustified or ineligible. Only if the Bank does not agree otherwise, no further deposit will be made by the Bank in the special accounts until the Loan will provide proof or make the deposit or refund, as the case may be. (b) If the Bank has decided, however, that any remaining amount in the special accounts will not be required to cover further payments for eligible expenses, the Loan-immediately upon receipt of the notification from the Bank-will refund this amount to the Bank. Left. (c) The loan, upon notification of the Bank, may return to it all or any part of the funds deposited in the deposit to the special accounts. ((d) Restitutions to the Bank made in accordance with paragraphs (6) (a) (b) and (c) of this Annex shall be credited to the loan account in accordance with the provisions shown by this Agreement, including the "General Conditions". + Annex 7 The main terms and conditions of the subsidiary loan agreements and the participation agreements Part A: The subsidiary loan agreements The borrower will reborrow, through M.E.F., to each implementing agency, the loan amounts required for the realization of the respective component of the project of the said agency, under a loan agreement to intervene between Borrowed and each implementing agency, based on the terms and conditions with which the Bank agrees, including the following provisions and conditions: 1. The sub-loans (subsidiary loans) maximum to be granted further than the Loan to each agency shall not exceed the amount of the loan allocated to the respective component of the project of that agency within the corresponding category presented in the table in paragraph 1 of Annex 1 to this Agreement. 2. The value of each subloan referred to in paragraph 1 above shall be expressed in dollars or German marks and shall be returned in installments (tranches) half-yearly in: (i) dollars or (ii) German marks or in their equivalent in lei. This equivalent will be determined on the basis of the interbank exchange rate from the dates of maturities or any other exchange rate on the free market, published by the National Bank of Romania and acceptable to the Bank. 3. The maturity of each sub-loan will not exceed ten (10) years, including a grace period of three (3) years, and each implementation agency will be able to repay that subloan in advance of the agreed maturity without any premium. for prepayment. 4. Each implementation agency will pay the borrower a interest on the principal amount of the respective sub-loan from which he draws from time to time, at an annual rate equal to at least: (i) the LIBOR interest at 6 months for the dollar, plus a percentage of 1,5 1,5% or (ii) the Frankfurt interbank market rate, plus a 1.5%. 5. Each subsidiary loan agreement will stipulate for the corresponding implementing agencies, among others, the obligation to carry out the respective correspondence from the project, with due attention and efficiency and in accordance with the terms and conditions consistent with the obligations of the borrower in this agreement. 6. Each subsidiary loan agreement will be subject to prior approval of the Bank. Part B: Participation Agreements In order to support the Loan in the administration of the implementation and supervision of the subsidiary loan agreements, the Loan will enter into participation agreements with each participating bank, which will be approved by the Bank. The participation agreements will involve, inter alia: (i) for the borrower the obligation to pay each participating bank an annual management fee that will be determined as a percentage of the amounts collected by those banks from the implementation and (ii) of each participating bank, the obligation to administer subsidiary loan agreements in accordance with financial, managerial, administrative and banking rules and maintain separate records for each agreement, according to accounting practices. ---------------------