Common use of Operational Principles Clause in Contracts

Operational Principles. The operations of the Bank shall be conducted in accordance with the following principles: (i) The Bank may not take part in any operation whatsoever that is contrary to, or likely to restrict or modify, its purpose or functions. (ii) The Bank may not undertake any operation in an African country if the country concerned objects to it. (iii) The Bank shall apply generally accepted principles for development financing on favourable terms without jeopardizing its overall solvability. (iv) The Bank shall undertake its financing operations upon such terms as are deemed appropriate to the nature and circumstances of each operation. When determining the conditions governing its activities in the less developed African countries, the Bank shall give consideration to the prevailing condition in these countries, and their need for financing on more favourable terms. (v) In its financing operations, the Bank shall take into consideration the ability of the recipient, or, as the case may be, of the recipient’s guarantor to fulfill its obligations. (vi) The Bank shall take any necessary measures to ensure that the amounts of any finance granted are used exclusively for the purposes for which they were made available, due regard being paid to economy considerations in costs and to efficiency considerations in implementation. (vii) Any loan granted by the Bank to provide finance for a particular project shall be subject to public bid procedures in African and Arab countries for the procurement of goods and services produced in those countries. The Board of Directors may, whenever it deems it appropriate, authorize the purchase of goods and services from countries other than those mentioned, or through a method other than the public bid requirement.