Common use of Special Account Clause in Contracts

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii) of this Agreement any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a separate special deposit account, account in a commercial bankNepal Rastra Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account and the Pooled Funds Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 3.02 (b) of this the Project Agreement; , and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 3.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account or Pooled Funds Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 3.01 (b)(ii) of this Agreement the Project Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account and the Pooled Funds Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bankthe Reserve Bank of India, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of the Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report- based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or; (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement the Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made Report-based Disbursements; or (d) if Karnataka shall have failed to furnish to the Association: (i) within the period of time specified in Section 3.01 of the Project Agreement, the audit reports required to be furnished to the Association pursuant to the said Section; or (ii) within the period of time specified in paragraph 5(g) of Schedule 2 to the Project Agreement, the Consolidated Report on Audits required to be furnished to the basis of Project Management ReportsAssociation pursuant to the said paragraph. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $25,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For withdrawals of the Credit under Category 1, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the reports required pursuant to Part A.6(a)(I) of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.6(a)(I) of Schedule 1 applicable to such withdrawal application and any adjustments carried out pursuant to Part A.6(a)(IV), required to be deposited in order to finance Eligible Subprogram Expenditures during the Fiscal Year prior to the date of such reports. (c) For withdrawals of the Credit under Categories 2 to 5, the Borrower shall furnish to the Association requests for deposits into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the reports required pursuant to Part A.6(b) (I) of Schedule 1 to this Agreement for the payment or payments in respect of when replenishment is requested. On the basis of each such report, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.6(b) (I) of Schedule 1 to this Agreement as applicable to such withdrawal application, required to be deposited in order to finance Eligible Expenditures, other than Eligible Subprogram Expenditures, during the period covered by such reports. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures.

Special Account. 1. The Borrower Recipient shall open and maintain in Dollars DEM a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAdministrator, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Administrator has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Administrator shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Administrator of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Bank Administrator shall reasonably request, furnish to the Bank Administrator such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Administrator shall not be required to make further deposits into the Special Account: (a) if the Bank Administrator determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Administrator determines at any time that all further withdrawals should be made by the Borrower Recipient directly from the Loan Grant Account; or (c) if the Borrower Recipient shall have failed to furnish to the Bank Administrator, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Administrator pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Administrator shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Administrator shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Loan Grant Account pursuant to Section 6.02 1.15 of the General Conditions. Upon such notification, the Bank Administrator shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Bank Administrator determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAdministrator, the Borrower Recipient shall, promptly upon notice from the BankAdministrator, provide such additional evidence as the Bank Administrator may request, or deposit into the Special Account (or, if the Bank Administrator shall so request, refund to the BankAdministrator) an amount equal to the amount of such payment. Unless the Bank Administrator shall otherwise agree, no further deposit by the Bank Administrator into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Administrator determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the BankAdministrator, refund to the Bank Administrator such outstanding amount. (c) The Borrower Recipient may, upon notice to the BankAdministrator, refund to the Bank Administrator all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Administrator made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:or

Special Account. 1. The Borrower shall shall, for the purposes of the Project, open and maintain in Dollars dollars a separate special deposit account, account in a commercial the Borrower’s Central bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; , and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that, unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $1,000,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of $4,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bankthe Reserve Bank of India, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report- based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower or Himachal Pradesh shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this the Agreement or Section 3.01 (b) (ii) of the Project Agreement, as the case may be, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means an amount equivalent to $5,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six (6) month period following the date of such reports. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5. 02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. The objective of the Project is to assist Himachal Pradesh in improving its productive potential of the Project Area and increasing incomes of rural inhabitants in selected watersheds through socially inclusive, institutionally and environmentally sustainable approaches. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Institutional Strengthening 1. Provision of technical assistance and material support to strengthen the capacity of Gram Panchayats and other local agencies, communities and institutions in the Project Area in the areas of planning, budgeting, financial management, implementation and reporting, and also promote activities designed to encourage good performance. 2. Design and implementation of a comprehensive information, education and communications strategy to increase general awareness about the Project, communicate terms of participation and promote transparency amongst stakeholders. Part B: Watershed Development and Management 1. Promotion of social mobilization and community-driven decision-making activities to develop ▇▇▇▇-level Proposals and facilitate their integration into GPWDPs, including identification of specific interventions for treatment of the watershed on arable and non-arable lands, identification of vulnerable sections of selected villages, integration of WC Proposals into GPWDPs, and identification of inter-GP areas and planning for treatment of such areas. 2. Development of GPWDPs based on the ▇▇▇▇-level Proposals and implementation of activities provided for therein, including soil conservation activities on arable lands, development of non-arable lands and other ancillary activities related to watershed-treatment, including upgrading of link roads, bridle paths and mule tracks. Part C: Enhancing Mountain Livelihood Opportunities 1. Provision of support to CIGs for the implementation of demonstration activities, including introduction of improved technologies and practices for agriculture, horticulture, silvi-pastoral treatments and animal husbandry, to increase the role of the private sector in input supply and support services, and increase the participation of farmers in the choice of technologies. 2. Implementation of agribusiness pilots to identify potential market opportunities, establish linkages with private sector entrepreneurs to exploit the market potential and disseminate agricultural production related information and technology to CIGs, and provision of support to contribute to the financing of activities undertaken by CIGs, as well as storage, processing and other marketing infrastructure facilities. 3. Provision of support to finance small income generating micro-enterprises for the benefit of vulnerable groups, and provide training to vulnerable groups to encourage their entrepreneurial development.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this AgreementReport; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a the first Project Management Report pursuant to Section 4.02 (b) of this AgreementReport, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Maharashtra Project Agreement or MRVC Project Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower Borrower, Maharashtra or Indian Railways shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement, or Section 3.01 (b) (ii) of the Maharashtra Project Agreement or MRVC Project Agreement, as the case may be, any of the audit reports required to be furnished to the Bank pursuant to said Section Sections in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of this Agreement. Operation of Special Account On the Loan Agreement.Basis of Project Management Reports 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $30,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $15,000,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of $150,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankbank acceptable to the Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit deposits by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount equal to $2,250,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equal to $1,200,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed $4,500,000.

Special Account. 1. The Borrower shall open and maintain in Dollars Euro a special deposit account, in a commercial bankBank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-set off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankNepal Rastra Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $500,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall cause NEPA to open and maintain in US Dollars a special deposit account, account in a commercial bank, bank on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, bank on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) 4.07 of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) 4.07 of this Agreement, Agreement accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 4.07 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 4.02 (b)(iia) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, or ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower Recipient may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars DEM a special deposit account, account in a commercial bank, bank on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 3.02 (b) of this the Project Agreement; , and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 3.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 3.01 (b)(ii) of this Agreement the Project Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall shall, for the purposes of the Project, open and maintain in Dollars dollars a special deposit account, account in a commercial bankbank acceptable to the Association, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible ExpendituresExpenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (cb) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall shall, for the purposes of the Project, open and maintain in Dollars FCFA a special deposit account, Special Account for the Project in a commercial bank, bank on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and or attachment. Except as the Association may otherwise specify by notice to the Borrower, all withdrawals from the Credit Account shall be deposited into the Special Account in accordance with the provisions of this Schedule. 2. After Except as the Bank Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible ExpendituresExpenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term “Eligible Categories” means Categories 1 (a), (b), (2), (3), and (4) set forth in the table in paragraph A.1 of this Schedule 1. 5. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (Ai) the records and accounts for the Special Account, or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 56. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 7 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of this Agreement. Annex A to SCHEDULE 1 Operation of the Loan Agreement.Special Account 1. For the purposes of this Annex:

Special Account. 1. The Borrower Borrower’s MOE shall through PPMU open and maintain in Dollars US dollars a special deposit accountaccount (the Special Account), in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and or attachment. 2. After Except as the Bank has received evidence satisfactory Association may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Loan Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. Except as the Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $5,000,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories. 3. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 54. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, determine whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 5 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. The objective of the Project is to assist the Borrower to establish the basis for an equitable education system, through quality and opportunity improvement and strengthening of management and accountability procedures. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Improvement of Secondary Education Quality and Opportunity 1. Redesigning the curriculum framework for general and technical education to increase access to education opportunities through the introduction of core courses and flexible options for differing levels of ability for both general and technical schools. 2. Developing new assessment and evaluation methods for the education system. 3. Providing professional development programs for teachers, including on the job learning of the new curriculum and assessment techniques. 4. Rehabilitation, conversion and equipment of selected technical schools. Part B: Strengthening Institutional Capacity 1. Carrying out a program to enhance the community and private sector involvement through increased local management responsibilities, support for parent council activities and public/private sector partnerships, and the provision of grants to schools and local education administrations to assist in improving in-service training and incentives schemes for teachers. 2. Developing new quality assurance mechanisms and improving management practices through the devising of schemes for clearer lines of responsibilities, including accountability mechanisms. 3. Providing professional development for school heads and administrators, including management techniques and training on using technology for management. The Project is expected to be completed by December 31, 2005. Procurement and Consultants’ Services Section I. Procurement of Good and Works Part A: General Goods and works shall be procured in accordance with the provisions of Section I of the “Guidelines for Procurement under IBRD Loans and ▇▇▇ Credits” published by the Bank in January 1995 and revised in January and August 1996, September, 1997 and January, 1999 (the Guidelines) and the following provisions of Section I of this Schedule. 1. For the purposes Except as otherwise provided in Part C of this Annex:Section, goods and works shall be procured under contracts awarded in accordance with the provisions of Section II of the Guidelines and paragraph 5 of Appendix 1 thereto. 2. The following provisions shall apply to goods to be procured under contracts awarded in accordance with the provisions of paragraph 1 of this Part B. (a) Notification and Advertising The invitation to prequalify or bid for each contract estimated to cost US$250,000 equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines.

Special Account. 1. The Borrower shall shall, for the purposes of the Project, open and maintain in Dollars FCFA a special deposit account, account in a commercial bankbank acceptable to the Association, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 4.03 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 4.03 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible ExpendituresExpenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term “eligible Categories” means Categories 1, 2, 3, 4, 5 and 6 set forth in the table in paragraph 1 of this Schedule 1. 5. Notwithstanding the provisions of Part B.2 B 2. of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that that: (i) any deficiencies indicated in any audit report referred to in Section 4.02 of this Agreement have not been corrected promptly and with due diligence; and (ii) any Project Management Report does not adequately provide the information required pursuant to Section 4.02 4.03 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 56. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 B 2. of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:Section

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 3.02 (b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 3.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $7,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount of $3,500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed SDR 10,500,000.

Special Account. 1. The Borrower Recipient shall open and maintain in Dollars DEM a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAdministrator, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Administrator has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Administrator shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Administrator of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Bank Administrator shall reasonably request, furnish to the Bank Administrator such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Administrator shall not be required to make further deposits into the Special Account: (a) if the Bank Administrator determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Administrator determines at any time that all further withdrawals should be made by the Borrower Recipient directly from the Loan Grant Account; or (c) if the Borrower Recipient shall have failed to furnish to the Bank Administrator, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Administrator pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Administrator shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Administrator shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Loan Grant Account pursuant to Section 6.02 1.15 of the General Conditions. Upon such notification, the Bank Administrator shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Bank Administrator determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAdministrator, the Borrower Recipient shall, promptly upon notice from the BankAdministrator, provide such additional evidence as the Bank Administrator may request, or deposit into the Special Account (or, if the Bank Administrator shall so request, refund to the BankAdministrator) an amount equal to the amount of such payment. Unless the Bank Administrator shall otherwise agree, no further deposit by the Bank Administrator into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Administrator determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the BankAdministrator, refund to the Bank Administrator such outstanding amount. (c) The Borrower Recipient may, upon notice to the BankAdministrator, refund to the Bank Administrator all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Administrator made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:or

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankNepal Rastra Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the sixeight-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $1,000,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of SDR 1,500,000.

Special Account. 1. The Borrower shall open and maintain in United States Dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b3.02(b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b3.02(b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower or Karnataka shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement and Section 3.01 (b) (ii) of the Project Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in Bank Indonesia or in a state commercial bankbank acceptable to the Association, on terms and conditions satisfactory to the BankAssociation, including including, in the case of a commercial bank, appropriate protection against set-off, seizure and attachment. 2. After Except as the Bank has received evidence satisfactory Association may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Loan Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. Except as the Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a FMR. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the FMR accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $16,400,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories. 3. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report FMR does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsFMRs. 54. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 5 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $1,100,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that, unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $400,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of SDR 1,500,000.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial its central bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that, unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $1,000,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of SDR 4,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, bank on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special AccountAccount or, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:or

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankthe Reserve Bank of India, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b3.02(b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b3.02(b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower Borrower, Uttar Pradesh or EFAPB shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement and Section 3.01(b)(ii) of the Project Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section Sections in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $15,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $7,500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of SDR 14,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a separate special deposit account, account in a commercial bankthe Reserve Bank of India, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars FCFA a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1, Annex B, hereto. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii) of this Agreement any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, its Central Bank on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) Agreement a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $1,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount of $500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed SDR 5,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, on terms and conditions satisfactory to the Bank, Association including appropriate protection against set-off, seizure and attachment. 2. After Except as the Bank has received evidence satisfactory Association may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Loan Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. Except as the Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $6,000,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories. 3. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 54. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 5 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means, an amount equivalent to $2,500,000 (two million five hundred thousand dollars) to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $1,250,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 4,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars Euro a special deposit account, in a commercial bankBank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-set off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:: The term “Authorized Allocation” means an amount of EUR 2,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount of EUR 1,000,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed EUR 5,000,000.

Special Account. 1. The Borrower shall open and maintain maintain, in Dollars Dollars, a special deposit account, account in the name of DPEF (the Special Account) in a commercial bankbank acceptable to the Association, on terms and conditions satisfactory acceptable to the BankAssociation, including appropriate protection against set-off, seizure and or attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible ExpendituresExpenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, as the case may be, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 B. 2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report management report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Financial Monitoring Report referred to in Section 4.02 (b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Financial Monitoring Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Financial Monitoring Report pursuant to Section 4.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Financial Monitoring Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report-based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement.. Operation of Special Account When Withdrawals are Not Made On the Basis of Report-based Disbursements 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $10,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount of $5,000,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed SDR 30,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bankits Central Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly shall upon notice from the Bank, promptly provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, promptly refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex: the term "Authorized Allocation" means an amount equivalent to $15,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $5,000,000 until the aggregate amount of withdrawals for Categories (1) through (5) set forth in the table in paragraph 1 of this Schedule from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of $15,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish said Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Loan minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions in respect of expenditures to be financed out of the proceeds of the Loan allocated to said Categories, shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Loan Account of the remaining unwithdrawn amount of the Loan shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Except as the Bank may otherwise specify by notice to the Borrower, all withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Special Account’s Eligible Categories. 2. Each application for withdrawal from the Loan Account for deposit into the Special Account shall be supported by a Project Management Report. 3. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and

Special Account. 1. The Borrower shall open and maintain in Dollars United States dollars a special deposit account, in a commercial bankits Central Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this the Project Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 4.01(b) (b)(iiii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:, the term "Authorized Allocation" means an amount equivalent to two million United States dollars (US$2,000,000) to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to one million United States dollars (US$1,000,000) until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of five million United States dollars (US$5,000,000).

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 3.02 (b) of this the Federation Project Agreement and the Republika Srpska Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 3.02 (b) of this the Federation Project Agreement and the Republika Srpska Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 (b) of this the Federation Project Agreement and the Republika Srpska Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:or

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, bank on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; the Project Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement the Project Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a commercial bank a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this the Project Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower or NHAI shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement and Section 4.01(b)(ii) of the Project Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section Sections in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term "Authorized Allocation" means an amount equivalent to $40,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $20,000,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of $120,000,000.

Special Account. 1. The Borrower Recipient shall open and maintain in Dollars a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAdministrator, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Administrator has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Administrator shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Administrator of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Bank Administrator shall reasonably request, furnish to the Bank Administrator such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Administrator shall not be required to make further deposits into the Special Account: (a) if the Bank Administrator determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Administrator determines at any time that all further withdrawals should be made by the Borrower Recipient directly from the Loan Grant Account; or (c) if the Borrower Recipient shall have failed to furnish to the Bank Administrator, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Administrator pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Administrator shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Administrator shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Loan Grant Account pursuant to Section 6.02 1.15 of the General Conditions. Upon such notification, the Bank Administrator shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Bank Administrator determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAdministrator, the Borrower Recipient shall, promptly upon notice from the BankAdministrator, provide such additional evidence as the Bank Administrator may request, or deposit into the Special Account (or, if the Bank Administrator shall so request, refund to the BankAdministrator) an amount equal to the amount of such payment. Unless the Bank Administrator shall otherwise agree, no further deposit by the Bank Administrator into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Administrator determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the BankAdministrator, refund to the Bank Administrator such outstanding amount. (c) The Borrower Recipient may, upon notice to the BankAdministrator, refund to the Bank Administrator all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Administrator made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:or

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bankbank acceptable to the Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex, the term "Authorized Allocation" means the amount of $6,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to the amount of $3,000,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed the amount of $18,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Loan minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Loan Account of the remaining unwithdrawn amount of the Loan shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Except as the Bank may otherwise specify by notice to the Borrower, all withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 2. Each application for withdrawal from the Loan Account for deposit into the Special Account shall be supported by a Project Management Report. 3. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and

Special Account. 1. The Borrower Recipient shall open and maintain in Dollars DEM a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAdministrator, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Administrator has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Administrator shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Administrator of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Bank Administrator shall reasonably request, furnish to the Bank Administrator such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Administrator shall not be required to make further deposits into the Special Account: (a) if the Bank Administrator determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Administrator determines at any time that all further withdrawals should be made by the Borrower Recipient directly from the Loan Grant Account; or (c) if the Borrower Recipient shall have failed to furnish to the Bank Administrator, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Administrator pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Administrator shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Administrator shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Loan Grant Account pursuant to Section 6.02 1.15 of the General Conditions. Upon such notification, the Bank Administrator shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Bank Administrator determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAdministrator, the Borrower Recipient shall, promptly upon notice from the BankAdministrator, provide such additional evidence as the Bank Administrator may request, or deposit into the Special Account (or, if the Bank Administrator shall so request, refund to the BankAdministrator) an amount equal to the amount of such payment. Unless the Bank Administrator shall otherwise agree, no further deposit by the Bank Administrator into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Administrator determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the BankAdministrator, refund to the Bank Administrator such outstanding amount. (c) The Borrower Recipient may, upon notice to the BankAdministrator, refund to the Bank Administrator all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Administrator made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:or

Special Account. 1. The Borrower shall open and maintain in Dollars a separate special deposit account, account in a commercial bankBCH, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:Section

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankthe Bank of Bhutan, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term "Authorized Allocation" means an amount equivalent to $1,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of SDR 2,200,000.

Special Account. 1. The Borrower shall open and maintain in Dollars FCFA a special deposit account, account in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the a Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; , and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (Ai) the records and accounts for the Special Account, or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means an amount equivalent to FCFA 500,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that, unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to FCFA 250,000,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of SDR 3,000,000. 2. Withdrawals of the Special Account’s Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Special Account’s Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal the equivalent of twice the amount of the Special Account’s Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Except as the Association may otherwise specify by notice to the Borrower, all withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories. 2. Each application for withdrawal from the Credit Account for deposit into the Special Account shall be supported by a Project Management Report. 3. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said Project Management Report to be remaining in the Special Account, shall not exceed the equivalent of FCFA 500,000,000. The objective of the Project is to assist the Borrower in improving transparency and good governance in selected public sector activities within its territory. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Petroleum Sector Management Strengthening the financial, legal and technical environment of the Petroleum sector through: 1. carrying out of financial and operational audits of SNPC, AGIP, TEP-CONGO and NOMECO, by providing technical advisory services; 2. completing the establishment of a legal and regulatory framework for the petroleum sector, by providing technical and legal advisory services; 3. carrying out of a comprehensive diagnostic study aimed at assessing the current financial, operational, technical, legal, procurement and contractual arrangements of the petroleum sector with a view to designing a comprehensive reform program, by providing technical and legal advisory services; and 4. implementing the reform program made under Part A (3) above, by providing technical advisory services and training to staff of MoHy and SNPC. Part B: Public Sector Management Strengthening transparency, accountability, good economic governance and financial management capacity in MoEFB through: 1. Reviewing and strengthening the organization and procedures for strategic planning and economic management, public expenditures and accounting, budget preparation and implementation, internal audit procedures and controls, fiscal and customs controls, procurement of public goods and services and communication channels within MoEFB, through the provision of technical advisory services and training to staff, and the acquisition of equipment; and 2. Strengthening the capacities of MoEFB, DMCE, CDC and CCA on matters relating to public finance, taxation, public accounting and statistics through the provision of technical advisory services and training to staff, and the acquisition of equipment. Part C: Private Sector Development Providing support to the Borrower’s privatization process and assisting in the promotion of local and foreign investments through: 1. strengthening the capacity and institutional framework of CP and creation of a regulatory agency to regulate and monitor the delivery of services by newly privatized public utilities through the provision of technical advisory services including training of staff; 2. carrying out of a diagnostic study on the existing institutional and administrative arrangements aimed at attracting foreign and local direct investment so as to strengthen the Borrowers policies, programs and institutions through the provision of technical advisory services; and 3. strengthening the partnership between the Borrower, in particular MoEFB, MoL, MAT, MDISP and MCPME, and civil society through, inter alia: (a) preparing and organizing seminars for staff of the Ministries heretofore indicated, selected staff of NGOs and Private Sector Entities; (b) carrying out of studies on micro-enterprises; and (c) setting up of small consultative fora, all through the provision of technical advisory services and the acquisition of equipment for the staff of the Ministries heretofore indicated in the partnership. Part D: HIV/AIDS National Action Plan Preparation Assisting the Borrower to prepare a national action plan for the fight against the HIV/AIDS epidemic through the provision of technical advisory services to the staff of MoHe and PNLS.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankBangladesh Bank, on terms and conditions satisfactory to the BankAssociation. Except as the Association may otherwise specify by notice to the Borrower, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, all withdrawals from the Loan Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. Except as the Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $9,500,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories. 3. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 54. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 5 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Development Credit Agreement. The objective of the Project is to promote the development of financial institutions and improvements in investment financing on a sustainable basis through strengthening the quality of intermediation with the aim of increasing industrial growth in Bangladesh. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Resource Mobilization 1. Development and implementation of simplified procedures for market traded financial instruments to facilitate issuance of bonds and other securities. 2. Strengthening the institutional capabilities of Bangladesh Bank and the Securities and Exchange Commission of Bangladesh to develop and regulate debt market and instruments. 3. Carrying out a program to reform the Borrowers National Savings Scheme in order to reduce distortions in the potential demand for market traded instruments while providing adequate incentives to small savers. 4. Developing market mechanisms for raising funds by the Borrower through strengthening the secondary treasury bond market. Part B: Strengthening of Financial Institutions 1. Financing of Investment Projects through the provision of Subloans and Lease Financing. 2. Provision of Investment Loan, Bridge Loan and Standby Loan through the Facility to be utilized by Participating Financial Institutions to finance Investment Projects. 3. Strengthening the management and operation of the Facility. 4. Strengthening the capacity of Participating Financial Institutions in the areas of business planning, resource mobilization and management information system. * * * * * The Project is expected to be completed by December 31, 2004. A. Administration Agreement 1. The Administration Agreement shall contain provisions, satisfactory to the Association, to ensure that the proceeds of the Loan are utilized by Bangladesh Bank to make Facility Loans through the Facility for the purpose of financing Investment Projects in accordance with the provisions of this Agreement and the Administration Agreement. Towards that end the Administration Agreement shall contain provisions requiring: (a) Bangladesh Bank to appoint a Facility Advisor satisfactory to the Borrower and the Association; (b) Bangladesh Bank to enter into a Facility Management Agreement with the Facility Advisor for assisting Bangladesh Bank in managing and administering the Facility and containing procedures and terms and conditions satisfactory to the Borrower and the Association, including those set out in Part B of this Schedule; (c) Bangladesh Bank to enter into a Master Facility Agreement with Participating Financial Institutions that meet the eligibility criteria set out in Part E of this Schedule; (d) Bangladesh Bank to ensure that each Master Facility Agreement contains procedures and terms and conditions satisfactory to the Borrower and the Association for the purpose establishing the framework for making Facility Loans, including those set out in Part C of this Schedule; (e) Bangladesh Bank to ensure that it provides Facility Loans to PFIs under Facility Access Agreements in accordance with procedures, and containing terms and conditions, satisfactory to the Borrower and the Association, including those set out in Part D of this Schedule; (f) Bangladesh Bank to ensure that it disburses Facility Loans to PFIs against Subloans and Lease Financing; (g) Bangladesh Bank to ensure that it requires PFIs to make Subloans and Lease Financing in accordance with the procedures and the terms and conditions set out in Schedule 4 to this Agreement; and (h) Bangladesh Bank to provide to the Borrower all reports that Bangladesh Bank receives from the Facility Advisor under the Facility Management Agreement. 1. For (i) Bangladesh Bank to provide Facility Loans to Participating Financial Institutions (PFIs) from the purposes Facility upon the recommendation of the Facility Advisor for the purpose of financing Investment Projects in accordance with the provisions of this AnnexAgreement, the Administration Agreement, the Facility Management Agreement and the Operational Directives. (j) Bangladesh Bank to make available three types of Facility Loans to PFIs from the Facility: (A) Investment Loan: Bangladesh Bank shall provide Investment Loans to PFIs in order to enable PFIs to make Subloans and Lease Financing to Investment Enterprises in accordance with the procedures and on the terms and conditions set out in Schedule 4 to this Agreement. After a PFI shall have received Investment Loans in an aggregate amount of US$ 4 million that is financed out of the proceeds of the Credit, a PFI shall be eligible to receive additional Investment Loans only if it has received Bridge Loans or Standby Loans and the amount of the additional Investment Loans shall not be greater than the aggregate of resources mobilized by the PFI in the process of receiving Bridge Loans and proceeds through Offerings as set out in clause (C) of this paragraph. A PFI shall not be eligible to receive Investment Loans after Bangladesh Bank shall have committed the equivalent of US$ 25 million in Investment Loans from the Facility that is financed out of the proceeds of the Credit. With the prior approval of the Borrower and the Association, Bangladesh Bank may consider other forms of resource mobilization. (B) Bridge Loan: Bangladesh Bank shall provide Bridge Loans to PFIs to enable them to accumulate quality earning assets and sell participation on these assets in the form of participation certificates in a pool of either loans or lease contracts ("Collateralized Loan Obligations" or "Collateralized Lease Obligations", collectively referred to as "CLOs"). Bangladesh Bank shall ensure that adequate arrangements are in place for the repayment of the Bridge Loans from other sources so that the Subloan against which the Bridge Loan is disbursed continues to be available to finance the related Investment Project. (C) Standby Loan: Bangladesh Bank shall provide Standby Loans to PFIs equivalent to the amount agreed to be paid out of the Facility in accordance with the applicable Master Facility Agreement and the Standby Loan Access Agreement, and financed out of the proceeds of the Credit, as the purchase price for CLOs or bonds/debentures issued by PFIs ("Offering") under underwriting arrangements, satisfactory to Bangladesh Bank, the Borrower and the Association, which the underwriter fails to sell. The amount of a Standby Loan shall not exceed a certain percentage of the Offering determined in accordance with procedures set out in the Operational Directive. Where the underwriter fails to sell and Bangladesh Bank purchases the Offering upto such amount in accordance with its standby commitment, the Standby Loan shall be considered to be drawn down and shall be disbursed against Subloans and Lease Financing. If the Offering or any portion thereof corresponds to Investment Projects financed out of the proceeds of Investment Loans or Bridge Loans, the amount received by the PFI from the Facility Advisor as the purchase price for such Offering or part thereof under the Standby Loan shall be utilized by the PFI to repay the corresponding Investment Loans and Bridge Loans. Bangladesh Bank shall hold the Offering purchased in accordance with the terms and conditions of such Offering. (k) Bangladesh Bank to make Facility Loans under terms and conditions as set out in Part F of this Schedule. (l) Bangladesh Bank to disburse Facility Loans to PFIs against Subloans and Lease Financing made in accordance with procedures and under terms and conditions set out in Schedule 4 to this Agreement. (m) Bangladesh Bank to enter into a Master Facility Agreement with each Participating Financial Institution that meets the eligibility criteria set out in Part E of this Schedule. (n) Bangladesh Bank to ensure that each Master Facility Agreement contains procedures and terms and conditions, satisfactory to the Borrower and the Association for the purpose establishing the framework for making Facility Loans, including those set out in Part C of this Schedule. (o) Bangladesh Bank to provide Facility Loans to PFIs under Facility Access Agreements in accordance with procedures, and containing terms and conditions, satisfactory to, the Borrower and the Association, including those set out in Part D of this Schedule; (p) Bangladesh Bank to duly perform all its obligations under the Administration Agreement, and except as the Association and the Borrower shall otherwise agree, Bangladesh Bank shall not take or concur in any action which would have the effect of assigning, amending, abrogating or waiving the Administration Agreement or any provision thereof.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, its Central Bank on terms and conditions satisfactory to the BankAssociation for the purposes of Parts ▇, including appropriate protection against set-off▇.▇, seizure ▇, ▇, ▇.▇, ▇.▇, ▇.▇, ▇.▇, ▇.▇, J and attachment. 2K.1 of the Project. After Except as the Bank has received evidence satisfactory Association may otherwise specify by notice to it that the Special Account has been openedBorrower, all withdrawals from the Loan Credit Account of amounts to shall be deposited by the Association into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3Schedule. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 42. Except as the Association shall otherwise agree, after the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals from the Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) Each application for withdrawal from the Credit Account shall be supported by a Project Management Report. (b) Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (i) the amount so requested; and (ii) the amount which the Association has determined, based on the Project Management Report accompanying said application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such report; provided, however, that the amount so deposited, when added to the amount indicated by said report to be remaining in the Special Account, shall not exceed the equivalent of $1,000,000. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Special Account’s Eligible Categories. 3. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 54. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 5 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of this Agreement. The objectives of the Loan AgreementProject are to assist the Borrower in implementing policies and strategies whose objectives are to improve the health and nutrition of children under five (5) years of age and the educational status of primary school girls in economically disadvantaged parts of the country. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Capacity Building Program for Project Area Communities Carrying out a program whose objective is to assist local communities in identifying health, nutrition and education issues affecting their daily lives, and in planning productive initiatives in each of the three above-mentioned sectors. Part B: Health System Strengthening 1. For Carrying out, through the purposes execution of this Annex:works, a program to rehabilitate pilot referral health facilities, health centers and health units, and another program, consisting of the provision of training and technical assistance, to improve the operational capabilities of health offices in the Project Area. 2. Provision of goods to equip the facilities, centers and units referred to under Part B.1 of the Project. Part C: Integrated Management of Childhood Illnesses Carrying out, through the provision of goods, including oral re-hydration solution sachets, expert services and training of physicians and health workers, a program to develop, and thereafter implement, a management strategy to integrate approaches to the treatment of children stricken by acute respiratory infections, diarrheal diseases, malaria, measles and malnutrition. Part D: Immunization Program Carrying out, through the provision of goods, including vaccines, expert services and training, a program to increase the coverage rate of vaccines for measles, tetanus, whooping cough, tuberculosis and poliomyelitis, and the enhancement of the capabilities of local health facilities to cope with childhood illnesses. Part E: Safe Motherhood 1. Carrying out, through the provision of goods and expert services, a program to enhance the quality of obstetric services and the ability of hospitals and health centers to perform child deliveries. 2. Carrying out a training program, including workshops, to educate outreach workers and other health facilities’ personnel on pre- and post-natal care. Part F: Water and Sanitation Schemes 1. Carrying out, through the provision of technical assistance, training and the execution of works, a program to provide drinking water and sanitation services to selected communities and districts in the Project Area.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) 3.07 of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) 3.07 of this Agreement, the Project Agreement accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.07 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars United States dollars a special deposit account, account in a commercial bankits Central Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) received a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 4.01(b) (b)(iiii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars Taka a special deposit account, for the Project, in a scheduled commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account and the Pooled Funds Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: : (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; and and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account and the Pooled Funds Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account and the Pooled Funds Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account and the Pooled Funds Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall may open and maintain in Dollars a special deposit account, account in a commercial bank, the Borrower’s Central Bank on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report- based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $600,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $300,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 600,000.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankbank acceptable to the Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1.the 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (Aof:(A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal withdrawals or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount equal to $2,200,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equal to $1,000,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed $3,200,000.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $7,200,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount of $3,600,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed SDR10,800,000.

Special Account. 1. The Borrower shall shall, for the purposes of the Project, open and maintain in Dollars a special deposit account, account (the Special Account) in a commercial bankbank acceptable to the Association, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this AgreementAgreement ; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible ExpendituresExpenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term "Eligible Categories" means Categories (1), (2), and (3), set forth in the table in paragraph 1 of Part A of this Schedule 1. 5. Notwithstanding the provisions of Part B.2 B. 2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (cb) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 56. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 7 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $7,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount of $3,500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed SDR10,800,000.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankthe Bank of Bhutan, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term "Authorized Allocation" means an amount equivalent to $1,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of SDR 2,500,000.

Special Account. 1. The Borrower shall may open and maintain in Dollars a special deposit account, account (Special Account) in a commercial bankits Central Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special AccountAccount if: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Section A.5 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report-Based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-Based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part Section B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $1,500,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $750,000, until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of SDR 2,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts, which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Section B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total un-withdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining un-withdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Section A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, bank acceptable to the Association on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:Section

Special Account. 1. The Borrower shall may open and maintain in Dollars a special deposit account, account in a commercial bank, the Borrower’s Central Bank on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report-based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $600,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $300,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 600,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. SCHEDULE 1 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.5 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall Recipient may, for the purposes of Categories (2)-(5) of the table in Part A.1 of this Schedule, open and maintain in US Dollars a special deposit account, account in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and or attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Grant Account of amounts to be deposited into the Special Account shall be made as follows: (a) until if the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management ReportsRecipient is not making Report-Based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A B to this Schedule 1; and (b) upon receipt by if the Bank of a Project Management Report pursuant to Section 4.02 (b) of this AgreementRecipient is making Report-Based Disbursements, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B C to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report- Based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower Recipient directly from the Loan Grant Account; or (c) if the Borrower Recipient shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-Based Disbursements. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Grant Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower Recipient of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower Recipient shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower Recipient may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Grant Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. Agricultural equipment and inputs; 2. Petroleum and fuel products; 3. Construction materials; 4. Transport vehicles and spare parts; 5. Livestock, animal products and veterinary supplies; 6. School supplies and equipment; 7. Medical supplies and equipment; 8. Construction equipment, industrial machinery and spare parts; 9. Electrical equipment, machinery, materials and parts; and 10. Industrial raw materials and chemicals. 1. For the purposes of this Annex:, the term “Authorized Allocation” means the amount of $450,000 equivalent to be withdrawn from the Grant Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $225,000 until the aggregate amount of withdrawals from the Grant Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 450,000.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii) of this Agreement any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:: The term “Authorized Allocation” means an amount equal to $500,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that, unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equal to $350,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of $2,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bankthe Reserve Bank of India, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1Schedule; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.5 of this Schedule adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report-based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower or any of the Participating States shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement or Section 3.01 (b) (ii) of the Project Agreement, as the case may be, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $30,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that, unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $15,000,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of SDR 68,000,000.

Special Account. 1. The Borrower shall shall, for the purposes of the Project, open and maintain in Dollars dollars a separate special deposit account, account in a commercial bankthe Central Bank of Yemen, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; , and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six- month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex:, the term "Authorized Allocation" means an amount equivalent to $1,500,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, its Central Bank on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this AgreementAgreement satisfactory to the Association, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:Section

Special Account. 1. The Borrower Recipient shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, bank on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, Agreement accompanied by a request from the Borrower Recipient for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower Recipient out of the Special Account, the Borrower Recipient shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower Recipient shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower Recipient of its intention to suspend in whole or in part the right of the Borrower Recipient to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower Recipient has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower Recipient shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower Recipient may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars a two separate special deposit accountaccounts one for Parts A.1, A.3 (a), ▇.4, A.5, and Part B of the Project in the name of the Generation Company (Special Account "A") and another for Parts C and D of the Project in the name of MEMD (Special Account "B"), in a commercial bank, on terms and conditions satisfactory to the Bank, Association including appropriate protection against set-off, seizure and attachment. Except as the Association may otherwise specify by notice to the Borrower, all withdrawals from the Credit Account shall be deposited by the Association into the respective Special Account in accordance with the provisions of this Schedule. Payments out of each Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of a Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 2. After Except as the Bank Association shall otherwise agree, after the Association has received evidence satisfactory to it that the a Special Account has been duly opened, withdrawals from the Loan Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the any Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall may open and maintain in Dollars a special deposit account, account in a commercial bankNepal Rastra Bank acceptable to the Association, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report- based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $2,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $1,000,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of $10,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the amount so requested.

Special Account. 1. The Borrower shall may open and maintain in Dollars a special deposit account, account in a commercial bankNBE, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from if the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from if the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.4 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report-based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report-based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex, the term “Authorized Allocation” means the amount of $2,500,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $1,500,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 4,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposit into the Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 3. The Association shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. Annex B SCHEDULE 1 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.4 of this Schedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:or

Special Account. 1. The Borrower shall may open and maintain in Dollars a special deposit account, in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of the Annex A to this Schedule 1; and Schedule1 (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Report-based Disbursements). 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.4 of this Schedule adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report-based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(iib) or (c) of this Agreement the Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time anytime that any amount of the Authorized Advance (as defined in the Annex to Schedule 1) outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determinationExpenditures, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. Withdrawals from the Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under Category 1 of Schedule 1 to this Agreement. 2. For the purposes of this Annex:, the term “Authorized Advance” means an amount equivalent to $75,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 3 of this Annex.

Special Account. 1. The Borrower shall shall, for the purposes of the Project, open and maintain in US Dollars a special deposit account, account in a commercial bankbank acceptable to the Association, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible ExpendituresExpenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 B. 2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (cb) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statement of expenditures, as the case may be. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association, provide such additional evidence as the Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall may open and maintain in Dollars a special deposit account, account in a commercial bankthe National Reserve Bank of Tonga, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.2 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report- based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReport-based Disbursements. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For Withdrawals from the purposes Credit Account shall be deposited by the Association into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories. 2. Upon receipt of each application for withdrawal of an amount of the Credit, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and (b) the amount which the Association has determined, based on the reports referred to in Part A.2 of this AnnexSchedule 1 applicable to such withdrawal application, is required to be deposited in order to finance Eligible Expenditures during the six-month period following the date of such reports. The objective of the Project is to assist the Borrower in establishing a consistent and equitable mechanism that will empower schools and communities to improve the quality of schooling at primary and secondary schools levels, and to produce an upward trend in educational outcomes. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Institutional Strengthening and Capacity Building 1. Strengthening the capacity of MOE, specifically with respect to the School Grants Program, to: (a) develop, analyze and review education policies; (b) establish investment priorities, (c) develop specific rolling plans based on the sector priorities; (d) efficiently allocate resources; and (e) conduct consultative policy dialogues with relevant stakeholders. 2. Strengthening the capacity of MOE to: (a) develop and annually review three (3) year rolling plans detailing the Project investments and the performance indictors at both the national and school levels; and (b) monitor the Project implementation and collect baseline information for the Project. 3. Strengthening the capacity of the schools participating in the Project, including: (a) provision of School Grants for managing their resources and planning their three (3) years rolling development plans; and (b) provision of training to head teachers, teachers and community members. Part B: School Grants Program 1. Designing, managing, and monitoring the School Grants Program, including: (a) providing technical assistance to design and manage the School Grants Program, and to develop the operations guidelines for said Program; (b) conducting public awareness campaigns for the School Grants Program; (c) providing training to schools participating in the School Grants Program on the processes and procedures of the School Grants Program; and (d) supporting the annual review of the performance of the participating schools in the School Grants Program. 2. Providing School Grants to selected primary or secondary schools to finance the schools’ overall development needs detailed in their three (3) year rolling plans.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankthe Reserve Bank of India, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the a Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 3.02 (b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 3.02 (b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Project Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall shall, for the purposes of the Project, open and maintain in Dollars in a commercial bank acceptable to the Association, a special deposit account, in a commercial bank, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible ExpendituresExpenditures in accordance with the provisions of this Schedule. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. For the purposes of this Schedule, the term “eligible Categories” means Categories 1, 2, and 3 set forth in the table in paragraph 1 of this Schedule 1. 5. Notwithstanding the provisions of Part B.2 B 2. of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 56. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 B 2. of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:Section

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bank, dollars in the Federal Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts the amount to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this AgreementReport; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this AgreementReport, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule Schedule, if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $5,000,000, to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 (a) of this Annex, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $2,500,000, until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall be equal to or exceed the equivalent of SDR 30,000,000.

Special Account. 1. The In accordance with the provisions of Section 2.02 (b) of this Agreement, the Borrower shall may open and maintain in Dollars a special deposit accountthe CPMO Special Account and the MOF Special Account, in a commercial bankbank acceptable to the Association, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-set- off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has Accounts have been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the respective Special Account Accounts shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (brespect of Parts A and D.1(a) of this Agreement; and (ii) a request from the Project where the Borrower for withdrawal on the basis of Project Management Reportsis not making Report-based Disbursements, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by in respect of Part C.1 of the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from where the Borrower for withdrawal on the basis of Project Management Reportsis making Report-based Disbursements, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the respective Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the respective Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the respective Special Account: (a) if the Bank determines Association, at any time time, is not satisfied that any Project Management Report does not the reports referred to in Part A.5 of this Schedule 1 adequately provide the information required pursuant to Section 4.02 of this Agreementfor Report- based Disbursements; (b) if the Bank Association determines at any time that all further withdrawals for payment of Eligible Expenditures should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association, within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the respective Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were Report- based Disbursements or were made on the basis of Project Management Reportsstatements of expenditure, as the case may be. 5. The Bank Association shall not be required to make further deposits into the respective Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the respective Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the respective Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the respective Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the respective Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the respective Special Account will not be required to cover payments for Eligible Expenditures during the six-six (6) month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the respective Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex, and in respect of the CPMO Special Account and Categories (1), (2) (3), (4) and (6) as set forth in the table in paragraph 1 of this Schedule 1, the term “Authorized Allocation” means the amount of $5,000,000 to be withdrawn from the Credit Account and deposited into the CPMO Special Account pursuant to paragraph 2 of this Annex. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the CPMO Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the CPMO Special Account of an amount or amounts which in the aggregate do not exceed the respective Authorized Allocation. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the CPMO Special Account such amount as the Borrower shall have requested. (b) For replenishment of the CPMO Special Account, the Borrower shall furnish to the Association requests for deposit into the CPMO Special Account at such intervals as the Association shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the CPMO Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the CPMO Special Account for Eligible Expenditures. Each such deposit into the CPMO Special Account shall be withdrawn by the Association from the Credit Account under one or more of the Eligible Categories (1), (2), (3), (4) and (6). 3. The Association shall not be required to make further deposits into the CPMO Special Account, once the total unwithdrawn amount of the Credit minus the total amount of all outstanding special commitments in respect of Parts A and D.1 (a) of the Project, entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to the Eligible Categories (1), (2), (3), (4) and (6) shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the CPMO Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures in respect of Parts A and D.1(a) of the Project. 1. In respect of Part C.1 of the Project, withdrawals from the Credit Account shall be deposited by the Association into the MOF Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the MOF Special Account shall be withdrawn by the Association from the Credit Account under Category

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bankBank, on terms and conditions satisfactory to the Bank, Bank including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars US dollars a special deposit account, account in a commercial bankits Central Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 4.01(b) (b)(iiii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account or an Advance Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. (a) The Borrower shall withdraw from the Special Account and deposit into each Community Advance Account an advance for a period not exceeding ninety days to allow the relevant CDC to finance Subgrants for approved Subprojects and other Eligible Expenditures. Advances shall be made by the Borrower to a Community Development Committee upon receipt and approval by EPO of a quarterly work plan and funding requirement report based on the disbursement schedule submitted by the Community Development Committee as part of its Community Development Plan. Each subsequent advance shall be contingent upon satisfactory justification of the preceding period’s advance with sufficient financial reporting on a monthly basis to ensure that cost overruns or unexecuted projects are identified. (b) Payments out of Community Advance Accounts shall only be made for Eligible Expenditures in respect of Categories (2) through (6) set forth in the table in paragraph 1 of Schedule 1 to this Agreement. (c) Any withdrawal from any Community Advance Account must be justified to the Borrower by the same documentation and other evidence regarding Eligible Expenditures. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $3,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that, unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $2,000,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of SDR 6,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars [Dollars] a separate special deposit account, in a commercial bankbankAssociation acceptable to the Association, on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the a Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex:, the term "Authorized Allocation" means an amount equivalent to $2,600,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $1,300,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of SDR 3,700,000.

Special Account. 1. The Borrower shall open and maintain in United States Dollars a special deposit account, account in a commercial bank, bank on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the a Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the a Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the said Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement.. Annex A to SCHEDULE 1 Operation of Special Account When Withdrawals Are Not Made On the Basis of Project Management Reports 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars the Banco de la Nación Argentina, a special deposit account, in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal withdrawals or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equal to $500,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall open and maintain in Dollars a separate special deposit account, account in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (Ai) the records and accounts for the Special Account, ; or (Bii) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex, the term "Authorized Allocation" means the amount of $4,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to the amount of $1,000,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of $4,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to, or at the time of, each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Loan minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Loan Account of the remaining unwithdrawn amount of the Loan shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Except as the Bank may otherwise specify by notice to the Borrower, all withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 2. Each application for withdrawal from the Loan Account for deposit into the Special Account shall be supported by a Project Management Report. 3. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bank, Banco de México on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 4.01 (bd) (ii) of this Agreement; and (ii) a request from the Borrower for withdrawal all withdrawals to be made on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 4.01 (bd) (ii) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1.withdrawals 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 4.01 (d) (i) of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower or the Guarantor shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement and Section 3.08 (b) (ii) of the Guarantee Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section Sections in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means the amount of $27,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bankthe National Bank of the Republic of Macedonia, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1Schedule. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii) of this Agreement any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankbank acceptable to the Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower and the Guarantor of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower and the Guarantor of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit deposits by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex the term "Authorized Allocation" means an amount equal to $3,750,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equal to $2,500,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed $7,500,000.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bankthe Banco Nacional de Panama, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; Agreement and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, Account or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex the term "Authorized Allocation" means the amount of $2,700,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:.

Special Account. 1. The Borrower shall open and maintain in Dollars a separate special deposit account, in a commercial bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the a Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the said Special Account shall be made as follows: (a) until the Bank shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; , and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $1,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $500,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions shall equal or exceed the equivalent of $2,000,000.

Special Account. 1. The Borrower shall shall, for the purposes of the Project, open and maintain in Dollars dollars a separate special deposit account, account in a commercial bankits Central Bank, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; , and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-six- month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex:, the term "Authorized Allocation" means an amount equivalent to $1,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex.

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b3.02(b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a Project Management Report pursuant to Section 4.02 (b3.02(b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Project Agreement;. (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower or Karnataka shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement and Section 3.01(b)(ii) of the Project Agreement, any of the audit reports required to be furnished to the Bank pursuant to said Section Sections in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex, the term "Authorized Allocation" means an amount equivalent to $25,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $13,000,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of $50,000,000. 2. Withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Bank a request or requests for deposit into the Special Account of an amount or amounts which in the aggregate do not exceed the Authorized Allocation. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested. (b) For replenishment of the Special Account, the Borrower shall furnish to the Bank requests for deposit into the Special Account at such intervals as the Bank shall specify. Prior to or at the time of each such request, the Borrower shall furnish to the Bank the documents and other evidence required pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for Eligible Expenditures. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 3. The Bank shall not be required to make further deposits into the Special Account, once the total unwithdrawn amount of the Loan, minus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions, shall equal the equivalent of twice the amount of the Authorized Allocation. Thereafter, withdrawal from the Loan Account of the remaining unwithdrawn amount of the Loan shall follow such procedures as the Bank shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Bank shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for Eligible Expenditures. 1. Except as the Bank may otherwise specify by notice to the Borrower, all withdrawals from the Loan Account shall be deposited by the Bank into the Special Account in accordance with the provisions of Schedule 1 to this Agreement. Each such deposit into the Special Account shall be withdrawn by the Bank from the Loan Account under one or more of the Eligible Categories. 2. Each application for withdrawal from the Loan Account for deposit into the Special Account shall be supported by a Project Management Report. 3. Upon receipt of each application for withdrawal of an amount of the Loan, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and deposit into the Special Account an amount equal to the lesser of: (a) the amount so requested; and

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement, and Section 4.02 (b) of the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, and Section 4.02 (b) of the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement or Section 4.02 of the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditures. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Development Credit Agreement. 1. For the purposes of this Annex the term “Authorized Allocation” means an amount of $4,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex:; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount of $2,000,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal or exceed SDR7,500,000.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, account in a commercial bank, bank acceptable to the Association on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: received (i) the first Project Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; orand (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of (A) the records and accounts for the Special Account, ; or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph paragraphs (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Agreement. 1. For the purposes of this Annex:or

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bank, the Reserve Bank of India on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachment. 2. After the Bank has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank shall have received: (i) the first Project Management Report referred to in Section 4.02 (b) of this AgreementReport; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank of a the first Project Management Report pursuant to Section 4.02 (b) of this AgreementReport, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank shall reasonably request, furnish to the Bank such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank shall not be required to make further deposits into the Special Account: (a) if the Bank determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Maharashtra Project Agreement or MRVC Project Agreement; (b) if the Bank determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Account; or (c) if the Borrower Borrower, Maharashtra or Indian Railways shall have failed to furnish to the Bank within the period of time specified in Section 4.01 (b)(iib) (ii) of this Agreement, or Section 3.01 (b) (ii) of the Maharashtra Project Agreement or MRVC Project Agreement, as the case may be, any of the audit reports required to be furnished to the Bank pursuant to said Section Sections in respect of the audit of of: (A) the records and accounts for the Special Account, ; or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the Bank, the Borrower shall, promptly upon notice from the Bank, provide such additional evidence as the Bank may request, or deposit into the Special Account (or, if the Bank shall so request, refund to the Bank) an amount equal to the amount of such payment. Unless the Bank shall otherwise agree, no further deposit by the Bank into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the Bank, refund to the Bank such outstanding amount. (c) The Borrower may, upon notice to the Bank, refund to the Bank all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank made pursuant to sub-paragraph subparagraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term “Authorized Allocation” means an amount equivalent to $30,000,000 to be withdrawn from the Loan Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Bank shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $15,000,000 until the aggregate amount of withdrawals from the Loan Account, plus the total amount of all outstanding special commitments entered into by the Bank pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of $150,000,000.

Special Account. 1. The Borrower shall open and maintain in Dollars a special deposit account, in a commercial bank, bank on terms and conditions satisfactory to the BankAssociation, including appropriate protection against set-off, seizure and attachment. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b4.02(b) of this Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b4.02(b) of this Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 of this Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii) of this Agreement Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section in respect of the audit of of: (A) the records and accounts for the Special AccountAccount or, or (B) the records and accounts reflecting expenditures with respect to which withdrawals were made on the basis of Project Management Reports. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan Credit Agreement. 1. For the purposes of this Annex:

Special Account. 1. The Borrower shall open and maintain in Dollars dollars a special deposit account, account in a commercial bankthe Reserve Bank of India, on terms and conditions satisfactory to the Bank, including appropriate protection against set-off, seizure and attachmentAssociation. 2. After the Bank Association has received evidence satisfactory to it that the Special Account has been opened, withdrawals from the Loan Credit Account of amounts to be deposited into the Special Account shall be made as follows: (a) until the Bank Association shall have received: (i) the first Project Management Report referred to in Section 4.02 (b3.02(b) of this the Project Agreement; and (ii) a request from the Borrower for withdrawal on the basis of Project Management Reports, withdrawals shall be made in accordance with the provisions of Annex A to this Schedule 1; and (b) upon receipt by the Bank Association of a Project Management Report pursuant to Section 4.02 (b3.02(b) of this the Project Agreement, accompanied by a request from the Borrower for withdrawal on the basis of Project Management Reports, all further withdrawals shall be made in accordance with the provisions of Annex B to this Schedule 1. 3. Payments out of the Special Account shall be made exclusively for Eligible Expenditures. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Bank Association shall reasonably request, furnish to the Bank Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 4. Notwithstanding the provisions of Part B.2 of this Schedule, the Bank Association shall not be required to make further deposits into the Special Account: (a) if the Bank Association determines at any time that any Project Management Report does not adequately provide the information required pursuant to Section 4.02 3.02 of this the Project Agreement; (b) if the Bank Association determines at any time that all further withdrawals should be made by the Borrower directly from the Loan Credit Account; or (c) if the Borrower Borrower, Rajasthan or RCPE shall have failed to furnish to the Bank Association within the period of time specified in Section 4.01 (b)(ii4.01(b)(ii) of this Agreement and Section 3.01(b)(ii) of the Project Agreement, any of the audit reports required to be furnished to the Bank Association pursuant to said Section Sections in respect of the audit of of: (A) the records and accounts for the Special Account, or (B) the records records, accounts and accounts financial statements reflecting expenditures with respect to which withdrawals were made on the basis of Project Management ReportsReports or statements of expenditure. 5. The Bank Association shall not be required to make further deposits into the Special Account in accordance with the provisions of Part B.2 of this Schedule if, at any time, the Bank Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Credit Account pursuant to Section 6.02 of the General Conditions. Upon such notification, the Bank Association shall determine, in its sole discretion, whether further deposits into the Special Account may be made and what procedures should be followed for making such deposits, and shall notify the Borrower of its determination. (a) If the Bank Association determines at any time that any payment out of the Special Account was made for an expenditure which is not an Eligible Expenditure, or was not justified by the evidence furnished to the BankAssociation, the Borrower shall, promptly upon notice from the BankAssociation, provide such additional evidence as the Bank Association may request, or deposit into the Special Account (or, if the Bank Association shall so request, refund to the BankAssociation) an amount equal to the amount of such payment. Unless the Bank Association shall otherwise agree, no further deposit by the Bank Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (b) If the Bank Association determines at any time that any amount outstanding in the Special Account will not be required to cover payments for Eligible Expenditures during the six-month period following such determination, the Borrower shall, promptly upon notice from the BankAssociation, refund to the Bank Association such outstanding amount. (c) The Borrower may, upon notice to the BankAssociation, refund to the Bank Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Bank Association made pursuant to sub-paragraph (a), (b) or (c) of this paragraph 6 shall be credited to the Loan Credit Account for subsequent withdrawal or for cancellation in accordance with the provisions of the Loan this Agreement. 1. For the purposes of this Annex:, the term "Authorized Allocation" means an amount equivalent to $7,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 2 of this Annex; provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to $3,500,000 until the aggregate amount of withdrawals from the Credit Account, plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions, shall equal or exceed the equivalent of SDR 15,000,000.