2011 წლის 10 მაისს ხელმოწერილი „საქართველოსა და აზიის განვითარების ბანკს შორის სასესხო ხელშეკრულება (სპეციალური ოპერაციები) (ურბანული მომსახურების გაუმჯობესების საინვესტიციო პროგრამა-პროექტი 1)
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LOAN NUMBER 2749‐ GEO(SF)
LOAN AGREEMENT
(SpeCial operaOons)
(urban serv ces lmprovementlnvestment Program― Prolect l)
be●veen
GEORCIA
and
υ
ASIAN DEVELOPMENT BANK
︶
DATED to
M(f zal I
GE0 43405
LOAN ACREEMENT
(SpeCial operation3)
LOAN AGREEMENT dAtEd ,O I'tiT,O'I
bEtWCEN GEORGIA
('Borrowea) and ASIAN DEVELOPMENT BANK CADB).
WHEREAS
(A)
by a framework tinancing agreement dated 1 March 20'11 between the
Bor.ower and ADB fFFA"), ADB has agreed to provide a multitranche financing facility
('Facility') to the Bonower for purposes of financing projects under the Urban Services
lmprovement lnvestment Program ('lnvestment Program'):
(B)
by a periodic tinancing request dated 2 Match 2011 submitted by the
Borrower, the Bonower has applied to ADB Ior a loan for the purposes of the Project
described in Schedule 'l to this Loan Agreement;
(C)
∨
the Projecl will be canied out by the United Water Supply Company of
Limited
Liability
Company ('UWSCG') (for Components 1 and 3 of the Projecl) and
Georgia
Regional
Development and lnfrastruclure of the Borrower ('MRDI') (for
the Ministry of
Component 2 of the Projecl), and for this purpose the Borrower will make available to
UWSCG and MRDI the proceeds of the loan provided herein in accordance with the terms
and conditions satisfactory to ADB; and
(D) ADB has agreed to make a loan to the Borrower from ADB'S Special
Funds resources upon the terms and conditions set forth herein and in the Project
Agreement between ADB and UWSCG.
NOW THEREFORE the parties agree as follows:
ARTICLE I
ヽ
Loan Regulations; Defl nitions
V
1.0'1.
All the provisions of the Special Operations Loan
Section
Regulations of AOB, dated 1 January 2006 ('Loan Regulations'), are hereby made
applicable to lhis Loan Agreement with the same force and effec,t as if they were fully set
forth herein, subject to the following modifications:
(a)
SeCtiOn 2 01(25)is deleted and the fo‖
owing is substituted therefor:
・Prolect Agreement・ means the Prolect Agreement bemeen ADB and
uWSCG:
(b)
The term the Prolect Executing Agency'appearing in Section 6 01(a).
801(d). 801(o, 801(k). 901(C)and 9 02(c)of the Loan Regulations
sha‖ be subst uted by the term・ uvvsCC・
2
VVherever used in this Loan Agreement, the several
Section 4 02
terms defined in the Loan Regulations have the respective meanjngs therein sel forth unless
modified herein or the context otheMise requires. Additional terms used in this Loan
Agreement have the following meanings:
(a)
'Componenl' means each of Components '1, 2 and 3 of the Project as
further described in paragraph 2 of Schedule 1 to this Loan Agreement;
(b)
'Consulting Guidelines" means the Guidelines on the Use of
Consultants by Asian Development Bank and its Borrowers (2010, as amended from time to
time);
(c)
"Consulling Services' means the services to be financed out of the
proceeds of the Loan as described in subparagraphs 2(b) to 2(d) of Schedule 'l to this Loan
Agreement;
(d)
'EARF' means the Environmental Assessment and Review
Framework for the lnveslment Program, as agreed between the Borower and ADB, as
amended from time to time;
(e)
V
"EMP' means the Environmental Management Plan for the Project
prepared in accordance with the EARF, incorporated in the lEEi
(0
'FAM" means the Facility Administration Manual for the Facility, as
agreed between the Borower and ADB, as amended from time to lime;
(S)
'GNEWSRC" means the ceorgia National Energy and Water Supply
Regulatory Commission of the Borower or any successor thereto;
(h)
"Goods' means equipment and materials to be tinanced out of the
proceeds of the Loan, including related services such as transportation, tnsurance,
installation, commissioning, training, and initial maintenance, but excluding Consulting
Services:
(D 'lEE means the lnitial Environmental Examination for the project
prepared in accordance with the EARF;
(j)
'Loan Disbu6ement Handbook' means ADB'S Loan Disbursement
Handbook (2007, as amended from time to time);
(k)
"MA' means the Ministry of Agriculture of the Bonower or any
successor thereto;
(l)
"MEPNR' means the Ministry of Environmentat protection and Nationat
Resources of the Bonower or any successor thereto;
(m)
'pFR' means the periodic linancing request submitted or to be
submitted_by the Bonower, for the purposes of each loan under the Facility, and for the
purpose of this Loan Agreement means the periodic financing request dated
2 March 201j;
3
(n)
"Procurement Guidelines' means ADB'S Procurement Guidelines
(2010, as amended from time to time);
(o)
'Procurement Plan' means the procurement plan for the Project dated
24 Febtuary 2011 and agreed between the Borrower and ADB, as updated from time to time
in accordance with the Procurement Guidelines, the Consulting Guidelines, and other
anangements agreed with ADB;
(p)
'Project Executing Agency" means MRDI, which is responsible for
canying out the Projecti
(q)
'RF'means the Resettlement Framework for the lnvestment Program,
as agreed between the Bonower and ADB, as amended from time to time;
(r)
"RP' means the Resettlement Plan for the Project prepared in
accordance with the RF;
(s)
'Subsidiary Loan Agreement' means the agreement between the
Bonower, MRDI and UWSCG refened to in Section 3.01(a) of this Loan Agreement;
V
(t)
'UWSCG' means the United Water Supply Company of Georgia
Limited Liability Company established under the laws and regulations of the Borrower with its
registered address at #5, Anna Politkovskaia Street, Tbilisi 0186, Georgia;
(u)
"Works' means construction or civil works to be flnanced out of the
proceeds ot the Loan, including services such as drilling or mapping, and project related
seNices that are provided as part of a single responsibility or tumkey contract, but excluding
Consulling Services; and
(v)
'WSS' means water supply and sanitation.
ART:CLE‖
The Loan
Section 2 01
ADB agrees to lend to the Borclwerfrom ADB's Spedal
Funds resources an amount in vanous curencies equivalent to niy‐ one m‖ ‖
on three
hundred and forty three thousand Special Draw ng Rights(sDR51,343,000)
(a)
Secllon 2 02
The Borower shall pay to ADB an interest
charge at the rate of 1% pe. annum during the grace period, and 1.57o p€r annum thereafler.
on the amount of the Loan withdrawn from the Loan Account and outstanding from time to
time.
(b) The term "grace period,' as used in paragraph (a) of this Sec{ion
means the period prior to the fi.st principat payment Date in accordance with lhe
amortization schedule set forth in Schedule 2 to this Loan Agreement.
4
The interest charge and any othe「 charge on the Loan
Section 2 03
shall be payable semiannually on 15 January and 15 July in each year.
2.04.
The Bonower shall repay the principal amount of the
Seqtion
Loan withdrawn from the Loan Account in accordance with the amortization schedule set
forth in Schedule 2 to this Loan Agreement.
The currency of repayment of the principal amount of
Section 2.05.
the Loan and the cunency of payment ol the interest charge for the purposes of Sections
4.03(a) and 4.04 of the Loan Regulations shall be the Dollar.
ARTiCLE‖
l
use Of PrOceed8 0fthe Loan
∨
Section 3 01
(a)
The BorOwer sha‖ relend a portion of the
proceeds of the Loan (SDR40,681,000) to UWSCG under a Subsidiary Loan Agreement
upon terms and conditions satisfaclory to ADB. Except as ADB shall otheMise agree, the
terms lor relending the proceeds of the Loan shall include interest charge at the rate of 1%
per annum during the grace p€riod, and 1.5% per annum thereafter, and a repayment period
of 32 years, including a grace period of 8 years. Foreign exchange risk shall be borne by
UWSCG.
(b) The Bo.rower shall cause UWSCG to apply the proceeds ol the Loan
described in subparagraph (a) of this Section to the flnancing of expenditures on
Components 1 and 3 of the Project in accordance with the provisions of this Loan Agreement
and the Project Agreement.
Secton 3 02
The Borror,ver shall make a portion of the proceeds of
the Loan (SDR7,342,000) available to MROI upon terms and conditions satisfactory to ADB
and cause MROI to apply such proceeds to the financing of expenditures on Component 2 of
the Projecl in accordance with the provisions of this Loan Agreement.
▼
Secton 3 03
Any change to the portion of the proceeds of the Loan
IJWSCG,
that is relent to
as described in Seclion 3.01(a) ot this Loan Agreement, or to the
portion of the proceeds of the Loan that is made available to MRDI, as described in Section
3.02 of this Loan Agreement, shall be agreed between the Borower and ADB.
Secton 3 04
The proceeds of the Loan shall be allocated and
withdrawn in accordance with the provisions of Schedule 3 to this Loan Agreement, as such
Schedule may be amended from time to lime by agreement between the Borrower and ADB.
3.05.
Seclion
Except as ADB may otheMise agrea, lhe Bonower
shall procure, or cause to be procured, the items of expenditure to be financed out of the
proceeds of the Loan in accordance with the provjsions of Schedule 4 to this Loan
Agreement.
5
3.06.
Wthdrawals from the Loan Account in respect of
Goods, Works and Consulting Services shall be made only on account ol expenditures
Sec.tion
relating to:
(a)
Goods which are produced in and supplied from and Works and
Consulting Services which are supplied from such member countries
of ADB as shall have been specified by ADB from time to time as
etigible sources for procurement; and
(b)
Goods, Works and Consulting Services which meet such other
eligibility requirements as shall have been specafied by ADB from time
to iime-
The Loan Closing Oate for the purposes of Section 8.02
Section 3 07
of the Loan Regulations shall be 30 September 2016 or such other date as may from time to
time be agreed between the Bonower and ADB.
ARTICLE IV
Partlcular covsnant!
4.01.
ln the canying out the Proiect and operation of the
Section
Projec{ facilities, the Bonower shall perform, or cause to be performed, all obligations set
forth in Schedule 5 to this Loan Agreement.
The Bonower shall enable ADB'S representatives to
Section 4 02
inspec{ the Projecl, the Goods and Works, and any relevant records and documenls.
4.03.
V
(a)
The Borrower shalli (i) maintain, or cause to be
Section
(ii) have such accounts and relaled financial
for
Projecl;
the
maintained, separale accounts
statements audited annually, in accordance with appropriate auditing standards consistently
applied, by independent auditors whose qualifications, experience and terms of reference are
acceptable to ADB; (iii) fumish to ADB, as soon as available but in any event not later than
9 months afie. the end of each related fiscal year, certified copies of such audited accounts
and tinancial statements and the report of the auditors relating thereto (including the auditors'
opinion on the use of the Loan proceeds and compliance with the financial covenants of this
Loan Agreement), all in the English language; and (iv) fumish to AOB such other information
concerning such accounts and linancial statements and the audit thereof as ADB shall from
time to time reasonably request.
(b)
The Bonower shall enable ADB, upon ADB'S request, to discuss the
Borroweis financial statements for the Project and its financial affairs related to the Project
from time to time with the auditors appointed by the Borrower pursuant to subparagraph (a)
of thiir Section, and shall authorize and require any representative of such auditors to
participate in any such discussions requested by ADB, provided that any such discussion
shall be conducled only in the presence of an authorized officer of the Borrower unless the
Bonower shall otherwise agree.
6
The Bonower shall take all actions which shall be
Section 4.04.
necessary on its part to enable UWSCG to perform its obligations under the Project
Agreement, and shall not take or permit any action which would interfere with the
performance of such obligations.
(a)
The Borrower shall exercise its rights under the
Subsidiary Loan Agreement in such a manner as to protect the interests of the Bonower and
ADB and to accomplish the purposes of the Loan.
Section 4 05
(b)
No rights or obligations under the Subsidiary Loan Agreement shall be
assigned, amended or waived without the prior concurrence of ADB.
ARTICLE V
Effectivene!9
Secton 5 01
A date 30 days afler the date of this Loan Agreement is
specfied for the effectiveness of the Loan Agreement for the purposes of Seclion 9.04 oI the
Loan Regulations.
ARTICLE VI
lrEcallanoous
The Minister ol Finance of the Bonower is designated
Section 6 01
as representative of the Borrower for the purposes of Section 11 .02 of the Loan Regulations.
Secton 6 02
The following addresses are specified for the purposes
of Section '11.0'l ofthe Loan Regulations:
For the Bonower
\,
Ministry of Finance
16 Gorgosali Street, 01'14
Tbilisi, Georgia
Facsimile Number:
(99532) 26't 461.
7
Fo「
ADB
Asian Development Bank
6 ADB Avenue
Mandaluyong Cny
1550 Metro Man‖ a
Ph‖ ippines
Facsim‖ e Numbers:
(632)636‐ 2444
(632)636‐ 2301
:N W!TNESS WHEREOF the panies heretO, acting through their
representatives thereunto duly authoHzed,have caused thisし oan Agreementto be signed in
their respective names as of the day and year nrst abOve written and to be denvered atthe
p● ncipal ttc●
of ADB
NDURASHVlLl
Minister of Finance
ヽ
V
Dlrector Genera
Ce[tral and West Asla Department
8
SCHEDULE I
D6scrlptlon ot ths Projoct
l.
The objective of the lnveslment Program is to flnance projecls with one or
more of the following comPonents:
2.
(a)
(b)
rehabilitation. improvement and expansion oIWSS infrastructure;
(c)
projeclimplemenlationsupport.
capacity development tor Wss-related institutions, including providing
managemenl contftrc,tor support to improve management and technical
capabiities of UWSCG; and
The Projecl shallcomprise:
Comoonent 1 - lnfrastruclure lmorovement Comoonent
(a)
V
construction of water supply facilities, water treatment facilities and
water transmission systems in the towns of Anaklia, Mameuli. Mestia
and Zugdidi and procurement of WSS system maintenance vehicles
and equiPmenti
Comoonent 2 - lnstitutional Effecliveness ComDonent
(b)
(c)
provision of managemenl contraclor support to UWSCG;
provision of capacity development to MA, MEPNR, MRDI and
GNEwSRCi and
Comoonent 3 - Proiect lmplementation Support Comoonent
(d)
provision of support to UWSCG for detailed engineering, construction
supervision, procurement, safeguards compliance, preparing
subsequent projecls ot the lnveslrnent Program and a publac
awareness program on health, hygiene, sanitation and water
conservation.
3.
4.
The Projecl is described more rully in the PFR.
The Projeci is expecled to be qompleted by 31 March 2016.
9
SCHEDuLE 2
Amo測 2at10n Schedu:o
(urban services improvement:nvesOnent Pro9ram‐ Pr● ect l)
Date Pavment Due
Pavment of Pttnc pal
(eXpressed in Special
Drawing R ghts)・
15」 uly 2019
15」 anuary 2020
15 July 2020
15」 anuary 2021
15」 uly 2021
15 January 2022
15」 uly 2022
15」 anuary 2023
▼
15」 uly 2023
15」 anuary 2024
15 July 2024
15 0anuary 2025
15 July 2025
15 January 2026
15」 uly 2026
15 January 2027
15 July 2027
15 Janualγ 2028
15 July 2028
15」 anuary 2029
15」 uly 2029
15」 anuary 2030
15」 uly 2030
15」 anuary 2031
ヽ
V
15 July 2031
15」 anuary 2032
15」 uly 2032
15」 anuary 2033
15」 uly 2033
15」 anuary 2034
15」 uly 2034
15」 anualγ 2035
15」 uly 2035
15 January 2036
15」 uly 2036
15」 anuary 2037
15」 uly 2037
15」 anuary 2038
1,069.646
1,069,646
1.069,646
1.069,646
1.069,646
1,069.646
1,069,646
1,069.646
1,069646
1,069.646
1,069.646
1,069,646
1.069,646
1.069.646
1.069,646
1,069,646
1.069,646
1.069,646
1.069,646
1,069,646
1,069.646
1,069.646
1,069.646
1,069.646
1.069,646
1.069,646
1.069,646
1.069,646
1,069,646
1.069,646
1,069,646
1,069,646
1,069.646
1,069,646
1,069.646
1,069,646
1,069,646
1,069,646
10
Schedule 2
Date Pavment Due
Pavment of P百 nc pa
(eXpressed in Special
Drawing Rights)'
15」 uly 2038
15」 anuary 2039
15」 uly 2039
15」 anuary 2040
1,069,646
1,069646
1069,646
1069646
15 January 2043
1,069.646
1,069,646
1.069,646
11069.646
1,069.646
1.069.638
Total
51343000
15 July 2040
15」 anuary 2041
15」 uly 2041
15」 anuary 2042
15」 uly 2042
︶・
‐
The anangsmenls for payment are subj€ct lo lh€ provisions of Seclions 3.O4 and 403 ol lhe Loan
Regulations.
11
SCHEDULE 3
Allocaiion and Withdtawal of Loan Procoedg
General
1.
The table attached to this Schedule sets lorth the Categories of atems of
expenditure to be tinanced out of the proceeds of the Loan and the allocation of the Loan
proceeds to each such Category ("Table'). (Reference to "Category" in this Schedul€ is to a
Category o, Categories of the Table.)
Percentaqes ot AOB Financino
2.
Except as ADB may otherwise agree, each item of expendature shall be
financed out of the proceeds of the Loan on the basis of the percentages set forth in the
Table.
lnterest Charoe
3.
The amount allocated to Category 4 is for financing the interest charge on the
Loan during the implementation period of the Project.
Reallocation
4.
Notwithstanding the allocation of Loan proceeds and the withdrawal
percentages set forth in the Table:
(a)
if the amount of the Loan allocated to any Category appears to be
insufficient to finance all agreed expenditures in that Category, ADB may, by notice to the
Bonower: (i) reallocate to such Category, to the extent required to meet the estimated
shortfall, amounts of the Loan which have been allocated to another Category but, in the
opinion of AOB, are not needed to meet other expenditures; and (ii) if such reallocation
cannot fully meet the estimated shortfall, reduce the withdrawal percentage applicable to
such expenditures in order that further withdrawals under such Category may continue until
allexpenditures thereunder shall have been made; and
(b) if the amount of the Loan allocated to any Category appears to exc€ed
all agreed expenditurss in that Category, ADB may, by notice to the Borrower, reallocale
such excess amounl to any other Category.
Disbursement Procedures
5.
Except as ADB may oiherwise agree, the Loan proceeds shall be disbursed in
accordance wilh the Loan Oisbursement Handbook.
Retroac{ive Financino
6.
Wthdrawals from the Loan Account may be made for reimbursement of
eligible expenditures incurred under the Projecl before the Effective Date, but not earlier than
'12 months before the date of this Loan Agreement in
connection with Works, Goods, and
Consulting Services, subjecl to a maximum amount equivalent to 20016 of the Loan amount.
12
Schedule 3
Condition for Withdrawals from Loan Account
7.
Notwithstanding any other provision of this Loan Agreement, no withdrawal
shall be made from the Loan Accounl for Components 1 and 3 of the Project until the
Subsidiary Loan AgreemEnt, in form and substance satisfaclory to ADB, has been duly
authorized or ratified, and exgcuted and delivered on behalf of, the Bonower and UWSCG,
and is legally binding upon the parties the.elo in accordance with its terms
V
13
Attachment to Schedule 3
TABLE
ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS
(Urban Servlces lmprovement lnvestflont Program - Projsct ,l)
CATECORY
ADB FINANCiNG
Total Amount Allocated
for ADB Financing
hem
Number
Percentage and Basis for
Withdrawal from tho Loan
Account
2
Goods
2,719,000
3
Consulting Services
,4,030,000
84.75% of total expenditure
claimed
84.75% ol total expenditure
claimed
84.75% of total expenditure
claimed
4
lnterest
1 393000
10070 of amounts due
υ
V
(sDR)
Category
Unallocated
1 927000
Total
51,343,000
31,274,OOO
1
14
SCHEDULE 4
Procurement of Goods,Wo「 ks and Consuitlng services
General
The procurement of Goods, Works and Consulting Services shall be subject to
govemed
and
by the Procurement Guidelines, and the Consulting Guidelines, respeclively.
1.
2.
All terms used and not otherwise defined in this Loan Agreement have the
meanings provided in the Procurement Guidelines and/or the Consulting Guidelines, as
applicable.
Procuremeni of Goods and Works
3.
Except as ADB may otherwise agree, Goods and Wo*s shall only be
procured on the basis ot lnternational Competitive Bidding.
4.
The method of procurement is subject to, among other things, the detailed
arrangements and threshold values set forth in the Procurement Plan. The Borower may
only modify the method ot procurement or threshold values wath the prior agreement of ADB,
and modifications must be set out in updates to the Procurement Plan.
Conditions lor Award of Contract
5.
The Bonower shall not award any Works contracts until the applicable IEE
and RP have been approved by ADB.
Seleclion of Consultino Services
6.
Except as ADB may otheMise agree, the Borrower shall apply quality- and
cost-based selection for selecring and engaging Consulting Services.
7.
The Borrower shall recruii individual consultants for Components 2 and 3 of
the Project in accordance with procedures acceptable to ADB for recruiting individual
consultants.
lndustrial or lntellectual P.operlv Riqhts
(a) The Borrower shall ensure that all Goods and Works procured
(including without limitation all computer hardware, software and systems, whether
separately procured or incorporated within other goods and services procured) do not violate
or infringe any industrial property or intelleclual prope.ly right or claim oI any third party.
8.
(b)
The Bonower shall ensure thal all contracts for the procurement of
Goods and Works contain appropriate representataons, waranties and, if appropriate,
indemnities lrom the contraclor or supplier with respect to the matters refered to in
subparagraph (a) ot this paragraph.
9.
The Borrower shall ensure that all ADB-financed contracts with consultants
contain appropriate representations, wananties and, if appropriate, indemnities from the
15
Schedule 4
consultants to ensure that the Consulting Services provided do not violate or infringe any
industrial property or intelleclual property rilht or claim of any third party.
AOB'S Review of Procurement Decisions
10.
Contracts procured under lnternataonal Competitive Bidding procedures and
contracls for Consulting Services shall be subject to prior review by ADB, unless otherwise
agreed between the Bo.rower and ADB and set forth in the Procurement Plan.
11.
Before granting an extension ofthe stipulated time for completion ol a contract
for Goods or Works, or before agreeing to any modification or waiver of the terms and
conditions of such contract, including issuing any change order or orders under such
contract, the Bonower shall seek ADB'S no objection to the proposed extension,
modification, or change order. lf ADB determines that the proposal is inconsistent with the
provisions of the Loan Agreement and,/or the Procurement Plan. it shall promptly inform the
Bonower and state the reasons tor its determination. A copy of all amendments to the
contrac{ shall be furnished to ADB for its record.
V
to
SCHEOULE 5
Ex€cullon of Prorect and Operation of
Proioct Facilitl6s; Flnanclal Matterr
lmolementation Ananoements
1.
The Bonower and UWSCG shall ensure that the Project is implemented in
accordanca with the detailed anangements set forth in the FAM. Any subsequent change to
the FAM shall become effective only afrer approval of such change by the Borrower and
ADB. ln the event of any discrepancy between the FAM and this Loan Agreement and/or the
Project Agreement, the provisions ol this Loan Agreement and/or the Project Agreement
shall prevail.
Counterpart Fundino and Resources
2.
The Bonower shall ensure that: (a) financial, technical and human resources
necessary for the implementation of the Project are provided on a timely basis throughout the
implementation period; and (b) adequale funds are allocated lor the maintenance of the
infrastructure built and items procured under Project.
Construclion Qualitv
3.
The Bonower shall ensure that the Projecl is carried out in accordance with
applicable standards and intemational best practice for design, technical specilications,
construction supervision, quality control and project management.
Sector Develooment
4.
The Borrower shall ensure thati (a) AOB is kept informed of the Bonoweas
policies and programs ,or the WSS sector that will materially affect the economic viability of
the Project; and (b) best efforts are used to sustain and strengthen the WSS sector.
5.
The Borrower shall cause GNEWSRC to strengthen its regulatory function,
including tarift setting and regulation of service strandards of service providers.
6.
The Bonower shall cause UWSCG to strengthen its financial management
through: (a) adoption of a 3-year business plan by the end ol 2013 to improve services,
enhance revenue and reduce system loss; and (b) achievement of financial sustainability
through attainment of an operating ratio (i.e. the ratio of expenditure over revenue) of 1 by
the end of 2019.
7.
The Bonower shall cause UWSCG to improve its service delivery and revenue
collection through attainment of an aggregate 95% revenue collection rate per annum from
all domestic consumers and nondomestic consumers by the end of 20j 9.
8.
The Bonower shall cause UWSCG to improve its management of WSS assets
through the establishment and implementation of a geospatiat WSS m:nagement system by
the end of 2013.
′
︐
Schedule 5
9.
The Borrower shall ensure that AOB'S consent is obtained at least 3 months
prior to the implementation of any of lhe following: (a) any change in the ownership or control
of UWSCG or any asset, facility or struclure rehabilitated, procured or constructed under the
Project; or (b) any change to UWSCG'S authority or functions, that may affecl implementation
ot the Projec{. The Borrower shall ensure that any such change is carried out in accordance
with all applicable laws and regulations of the Bonower.
Environment
'10.
The Bonower shall ensure that the P.oject is developed, implemented and
maintained in accordan@ with all applicable laws and regulations of the Borrower, ADB'S
Safeguard Policy Statement (2009), the EARF, the IEE and the EMP.
11.
The Bonower shall cause UWSCG to ensure that:
(a)
an IEE is prepared for the Project in accordance with all applicable
laws and regulations of ths Bonower, ADB'S Safegua.d Policy Statement (2009) and the
EARF, and that the IEE is approved by ADB and adhered to during the design, construction
and operation phases ot the Projecti
(b) the EMP is implemented by the contractors, all recommendations of
the EMP are incorporated in the bidding documents and civil works contracts to ensure
compliance, and adequate budgetary allocation is made by the contractors for
implementation ofthe EMP. Priorto commencement ofcivilworks, UWSCG shall updale the
EMP in consultation with the construction supervision consultant and the contraclors: and
(c)
semiannual monitoring reports on EMP implementation are submitted
to ADB in a timely manner.
12.
The Borrower shall ensure that no proceeds of the Loan are used to finance
any activity included in the list of prohibited investment activities provided jn Appendix S of
ADB'S Safeguard Policy Statement (2009).
13.
The Bonower shall cause UWSCG to ensure that no water intake facility
under the Project shall be commissionsd and made operational until UWSCG has been
issued with a license or permit for water absiraclion activities for such facility.
Resettlement
14.
The Bonower shall ensure that the project is developed, implemented and
maintained in accordance with all applicable laws and regulations of the Bonower, ADB,S
Safeguard Policy Statement (2009), the RF and the Rp.
15.
..
The Borrower shall cause UWSCG to ensure that:
a RP acceplabte to ADB is prepared for the projecl in accordance with
.. . . !")
laws and regulations
poticy
1lqplio.blg
(2009)
and the RF;
of the Borrower, ADB,s Safeguard
Statement
18
Schedule 5
(b)
all land and rights-of-way required by the projecl are made availabte
free ahd clear f.om any and all rights and claims of third parties and any other encumbrances
in a timely manner, subject to compliance with all applicable laws and regulations of the
Borrower, ADB'S Safeguard Policy Statement (2009). the RF and the Rp; and
(c)
contraclors shall only commence civil works after the Rp has been
implemented in accordance with its terms (including compensation of atfected persons based
on ths detailed engineering design estimates confirming pipetine alignment), as verified by
an independent body or person.
Labor Standards and Health
16.
V
The Borrower shall cause UWSCG to ensure monitoring of the social impacts
throughout the implementation of the Project in consultation with tocal governm€nts, local
communities and nongovemment organizations. L,WSCG shall ensure that all civil works
contrac{ors: (a) comply with all applicable labor laws of the Bonower; (b) use their best
efforts to employ women and local people, including disadvantaged peopte, tiving in the
vicinity of the Project; (c) disseminate information at worksites on health safety (including HIV
prevention programs) for those employed during construction; (d) maintain equat pay to men
and women for work of equal type; (e) provide safe working conditions and appropriate
facilities for male and female workers; and (f) abstain from child Iabor.
Gender and Develooment
17.
The Bonower shall cause UWSCG toi (a) ensure that the gender aclion plan
prepared tor the lnvestment Program is implemented in a timely manner over the lnvestment
Program periodi and (b) submit semiannual reports to ADB.
Govemance and Anticonuption
18.
ヽ̲
The Borrower and UWSCG shalt: (a) compty with ADB,S Anticorruption poticy
(1998, as amended to date) and acknowledge that ADB reserves the right to investigat;
directly, or through its agents, any alleged conupt, ,raudulent, collusive or coercive praatice
relating to the Project; and (b) cooperate with any such investigation and extend a
necessary assistance for satistaclory completion of such investigation. This includes
ensuring that anticonuption provisions acceptable to ADB are included in all bidding
documents and contracts, including provisions specifying the right of AOB to audit and
examine the records and accounts of the Project Executing Agency and implemenling
agencies and all contrac,tors, suppliers, consultants and othar servicl providers as the!
relate lo the Project.