Common use of Financing Terms Clause in Contracts

Financing Terms. ADB will provide loans and grants to finance tranches under the program, as and when the latter are ready for financing, provided that the government is in compliance with the understandings hereunder, and the tranches are in line with those same understandings. Loans and grants will constitute a tranche. Each tranche may be financed under terms different from the financing terms of previous or subsequent tranches. The choice of financing terms will depend on the project and ADB’s financing policies, all prevailing at the time the tranche is documented in a legal agreement. Tranches may be provided in sequence or simultaneously, and some may overlap in time with each other. Commitment charges are not payable on the Facility. They are payable only on financing actually committed by ADB as a loan. ADB rules on commitment, which are in effect when a tranche is provided, will apply with respect to such tranche. Amount The maximum financing amount available under the Facility is $163.7 million. It will be provided in individual tranches from ADB's ordinary capital resources,2 ADB's Special Funds resources,3 and cofinancing to be administered by ADB, subject to ADB’s then applicable policies concerning the allocation of, and eligibility for, such resources. Cofinancing A parallel collaborative cofinancing (not administered by ADB) up to $60.30 million equivalent will be provided for the program. The ADB-administered cofinancing is expected at $13.70 million under the Facility. Availability Period The last date on which any disbursement under any tranche may be made will be 31 December 2022. The last financing tranche is expected to be executed no later than 31 December 2018. Terms and Conditions The GOM will relend the proceeds of each tranche to the Municipality of Ulaanbaatar (MUB) and will cause such proceeds to be applied to the financing of expenditures of the program in accordance with conditions set forth in this FFA and the legal agreements for each tranche. Execution The executing agency will be the MUB. It will implement the program in accordance with the principles set forth in Schedule 1 and 3 to this FFA, and as supplemented in the legal agreements for each tranche. Periodic Financing Requests The GOM through the Ministry of Economic Development (MED) or its successor may request, and ADB may agree, to provide loans under the Facility to finance the program and its related projects upon the submission of a periodic financing request (PFR). The MED should submit each PFR. The GOM will make available to the MUB the proceeds of the tranche in accordance with the related PFR and the legal agreements for the tranche. ADB will review the PFR and, if found satisfactory, prepare the related legal agreements. The tranches for which financing is requested under the PFR will be subject to the selection criteria set out in Schedule 4 hereto, satisfactory due diligence, and preparation of relevant safeguards and fiduciary frameworks and other documents. ADB and the MUB will agree on a Facility Administration Manual 2 Provisions of the ordinary operations loan regulations applicable to LIBOR-based loans made from ADB's ordinary capital resources, dated 1 July 2001, would apply to each such loan, subject to modifications, if any, that may be included under relevant loan agreement.