Institutional and Implementation Arrangements. 1. The Project Implementing Entity shall carry out its Respective Part of the Project in accordance with the Financing Agreement, this Agreement and the Project Operational Manual. (a) The Project Implementing Entity shall take all necessary measures, including annual adjustments of water supply and sewerage tariffs, in order to maintain for each its fiscal years after the fiscal year ending on December 31, 2009, a ratio of total cash operating expenses to total cash operating revenues not higher than 0.90 and to collect effectively all operating revenues related to its respective operations, including (i) budgeting and paying for water supply and sewerage services that benefit its respective oblast budget organizations; and (ii) effectively support the disconnection of non-paying consumers. (b) For the purposes of this paragraph: (i) The term "total cash operating expenses" means all expenses related to operations, including administration, adequate maintenance, taxes and payments in lieu of taxes, but excluding interest and other charges on debt. (ii) The term "total cash operating revenues" means revenues from all sources related to operations. (a) Except as the Association shall otherwise agree, the Project Implementing Entity shall not incur any debt unless a reasonable forecast of its revenues and expenditures shows that the estimated net revenues for each fiscal year during the term of the debt to be incurred shall be at least 1.2 time the estimated debt service requirements of the Project Implementing Entity in such year on all its debt, including the debt to be incurred. (b) For the purposes of this paragraph:
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Sources: Project Agreement, Project Agreement, Project Agreement