Subprojects. The Borrower, through MAVDT, shall and/or shall cause FONVIVIENDA to: 1. agree to provide financing out of Loan proceeds for the carrying out of Subprojects in accordance with eligibility criteria, procedures and sequencing of activities, terms and conditions acceptable to the Bank and set forth in the Operational Manual, which shall include, inter alia, the following consecutive actions and procedures: (a) (i) the evaluation of prospective Subprojects shall be carried out by MAVDT; and (ii) the determination of Subprojects’ eligibility under the Project shall be made by MAVDT in consultation with municipal officials of a participating municipality within the Borrower’s territory using criteria specified in the Operational Manual; (b) the selection and appointment, in compliance with relevant provisions of Section III of Schedule 2 to this Agreement, for each Subproject-I and Subproject-III, of a real estate development structuring agent responsible for the technical and financial preparation of said type of Subprojects; (i) the selection and appointment (in accordance with the pertinent provisions of Section III of this Schedule), throughout the duration of each Subproject implementation, of a Fiduciary Agent to manage all fiduciary aspects associated with Subproject implementation, pursuant to an agreement (the Fiduciary Contract) to be entered into between FONVIVIENDA and the pertinent Fiduciary Agent, under which the Fiduciary Agent shall, inter alia: (A) manage on behalf of FONVIVIENDA (pursuant to instructions from MAVDT), the contracting process (in accordance with the pertinent provisions of Section III of this Schedule) of the Subproject Developers for Subprojects-I and Subprojects-III, the independent technical supervisors and other technical functions associated with the development and implementation of Subprojects; (B) manage Project resources on behalf of FONVIVIENDA (pursuant to instructions from MAVDT) for the implementation of Part 1.B of the Project; (C) manage the fiduciary aspects of the real estate trust referred to in Part 1.A (i) and Part 1.B.(ii)(2) of the Project on behalf of FONVIVIENDA, Subproject Developers, and, in the case of Subprojects-I and Subprojects-II, of private landholders, pursuant to instructions from the relevant Fiduciary Committee; (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, both in a manner adequate to reflect the operations, resources and expenditures related to the respective Subprojects; and (2) at the Bank’s or the Borrower’s (through MAVDT) request, the obligation of each Fiduciary Agent responsible for the relevant Subproject to have such financial statements audited by independent auditors acceptable to the Bank, in accordance with consistently applied auditing standards acceptable to the Bank, and promptly furnish the statements as so audited to the Borrower and the Bank; and (E) carry out its obligations in accordance with the provisions of this Agreement, the OM and the Anti- Corruption Guidelines; and (ii) the obligation of the Fiduciary Agent to: (A) exercise its rights and carry out its obligations under the Fiduciary Contract in such manner as to protect the interests of the Borrower, FONVIVIENDA, and the Bank and to accomplish the purposes of the Loan; and (B) except as the Bank shall otherwise agree, not assign, amend, abrogate, terminate, waive or fail to enforce the Fiduciary Contract or any provision thereof; and (d) the selection and appointment, in compliance with relevant provisions of Section III of this Schedule, for each Subproject, of a Subproject Developer by the respective Fiduciary Agent on behalf of FONVIVIENDA (in the case of Subprojects-I and Subprojects-III) or by FONVIVIENDA (in the case of Subprojects-II), all in accordance with Section I.E.2 of this Schedule. 2. extend financing to Subproject Developers responsible for the implementation of any given Subproject pursuant to a Subproject Contract to be entered by and between the Fiduciary Agent on behalf of FONVIVIENDA (in the case of Subprojects-I and Subprojects-III), or by and between FONVIVIENDA (in the case of Subprojects-II), and the respective Subproject Developer (as specified in Section I.E.1 (d) of this Schedule), and having terms and conditions approved by the Bank, which shall include and provide, inter alia, the following: (a) the financing shall be provided out of the proceeds of the Loan through Grants made to Subproject Developers to support the implementation of the respective Subprojects, such financing to be in an amount not to exceed 50 percent of the estimated market value of the low income housing solutions in any given Subproject-I and Subproject-II, or up to 100 percent of the actual cost of any given Subproject-III, as described in detail in the OM. (b) rights adequate to protect the Borrower’s interests and those of the Bank shall be inserted therein, including the right to: (i) suspend or terminate the right of the Subproject Developer to use the proceeds of the Grant, or obtain a refund of all or any part of the amount of the Grant then withdrawn, upon the Subproject Developer’s failure to perform any of its obligations under the respective Subproject Contract; and (ii) require each Subproject Developer to: (A) carry out its Subprojects with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Bank, including in accordance with the provisions of the OM and the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Borrower; (B) when applicable, provide, promptly as needed, the resources required for the purpose; (C) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Bank, the progress of the Subprojects and the achievement of its objectives; (D) enable the Borrower (through MAVDT), FONVIVIENDA, and the Bank to inspect the Subprojects, its operation and any relevant records and documents, including providing the information necessary to carry out the audits referred to in Section I.E.1 (c) (i) (D) (2) of this Schedule; and (E) prepare and furnish to the Borrower (through MAVDT), FONVIVIENDA, and the Bank all such information as the Borrower (through MAVDT), FONVIVIENDA or the Bank shall reasonably request relating to the foregoing; 3. ensure that the Fiduciary Agent’s (in the case of Subprojects-I and Subprojects-
Appears in 1 contract
Sources: Loan Agreement
Subprojects. The Borrower, through MAVDT, shall and/or shall cause FONVIVIENDA to:
1. : agree to provide financing out of Loan proceeds for the carrying out of Subprojects in accordance with eligibility criteria, procedures and sequencing of activities, terms and conditions acceptable to the Bank and set forth in the Operational Manual, which shall include, inter alia, the following consecutive actions and procedures:
(a) (i) the evaluation of prospective Subprojects shall be carried out by MAVDT; and (ii) the determination of Subprojects’ eligibility under the Project shall be made by MAVDT in consultation with municipal officials of a participating municipality within the Borrower’s territory using criteria specified in the Operational Manual;
(b) ; the selection and appointment, in compliance with relevant provisions of Section III of Schedule 2 to this Agreement, for each Subproject-I and Subproject-III, of a real estate development structuring agent responsible for the technical and financial preparation of said type of Subprojects;
(i) the selection and appointment (in accordance with the pertinent provisions of Section III of this Schedule), throughout the duration of each Subproject implementation, of a Fiduciary Agent to manage all fiduciary aspects associated with Subproject implementation, pursuant to an agreement (the Fiduciary Contract) to be entered into between FONVIVIENDA and the pertinent Fiduciary Agent, under which the Fiduciary Agent shall, inter alia:
(A) manage on behalf of FONVIVIENDA (pursuant to instructions from MAVDT), the contracting process (in accordance with the pertinent provisions of Section III of this Schedule) of the Subproject Developers for Subprojects-I and Subprojects-III, the independent technical supervisors and other technical functions associated with the development and implementation of Subprojects;
(B) manage Project resources on behalf of FONVIVIENDA (pursuant to instructions from MAVDT) for the implementation of Part 1.B of the Project;
(C) manage the fiduciary aspects of the real estate trust referred to in Part 1.A (i) and Part 1.B.(ii)(2) of the Project on behalf of FONVIVIENDA, Subproject Developers, and, in the case of Subprojects-I and Subprojects-II, of private landholders, pursuant to instructions from the relevant Fiduciary Committee;
(1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, both in a manner adequate to reflect the operations, resources and expenditures related to the respective Subprojects; and (2) at the Bank’s or the Borrower’s (through MAVDT) request, the obligation of each Fiduciary Agent responsible for the relevant Subproject to have such financial statements audited by independent auditors acceptable to the Bank, in accordance with consistently applied auditing standards acceptable to the Bank, and promptly furnish the statements as so audited to the Borrower and the Bank; and
(E) carry out its obligations in accordance with the provisions of this Agreement, the OM and the Anti- Anti-Corruption Guidelines; and
(ii) the obligation of the Fiduciary Agent to: (A) exercise its rights and carry out its obligations under the Fiduciary Contract in such manner as to protect the interests of the Borrower, FONVIVIENDA, and the Bank and to accomplish the purposes of the Loan; and (B) except as the Bank shall otherwise agree, not assign, amend, abrogate, terminate, waive or fail to enforce the Fiduciary Contract or any provision thereof; and
(d) and the selection and appointment, in compliance with relevant provisions of Section III of this Schedule, for each Subproject, of a Subproject Developer by the respective Fiduciary Agent on behalf of FONVIVIENDA (in the case of Subprojects-I and Subprojects-III) or by FONVIVIENDA (in the case of Subprojects-II), all in accordance with Section I.E.2 of this Schedule.
2. extend financing to Subproject Developers responsible for the implementation of any given Subproject pursuant to a Subproject Contract to be entered by and between the Fiduciary Agent on behalf of FONVIVIENDA (in the case of Subprojects-I and Subprojects-III), or by and between FONVIVIENDA (in the case of Subprojects-II), and the respective Subproject Developer (as specified in Section I.E.1 (d) of this Schedule), and having terms and conditions approved by the Bank, which shall include and provide, inter alia, the following:
(a) the financing shall be provided out of the proceeds of the Loan through Grants made to Subproject Developers to support the implementation of the respective Subprojects, such financing to be in an amount not to exceed 50 percent of the estimated market value of the low income housing solutions in any given Subproject-I and Subproject-II, or up to 100 percent of the actual cost of any given Subproject-III, as described in detail in the OM.
(b) rights adequate to protect the Borrower’s interests and those of the Bank shall be inserted therein, including the right to: (i) suspend or terminate the right of the Subproject Developer to use the proceeds of the Grant, or obtain a refund of all or any part of the amount of the Grant then withdrawn, upon the Subproject Developer’s failure to perform any of its obligations under the respective Subproject Contract; and (ii) require each Subproject Developer to:
(A) carry out its Subprojects with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Bank, including in accordance with the provisions of the OM and the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Borrower;
(B) when applicable, provide, promptly as needed, the resources required for the purpose;
(C) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Bank, the progress of the Subprojects and the achievement of its objectives;
(D) enable the Borrower (through MAVDT), FONVIVIENDA, and the Bank to inspect the Subprojects, its operation and any relevant records and documents, including providing the information necessary to carry out the audits referred to in Section I.E.1 (c) (i) (D) (2) of this Schedule; and
(E) prepare and furnish to the Borrower (through MAVDT), FONVIVIENDA, and the Bank all such information as the Borrower (through MAVDT), FONVIVIENDA or the Bank shall reasonably request relating to the foregoing;
3. ; ensure that the Fiduciary Agent’s (in the case of Subprojects-I and Subprojects-Subprojects-III) or FONVIVIENDA’s (in the case of Subprojects-II) rights under each Subproject Contract shall be exercised in such manner as to protect the interests of the Borrower (through MAVDT), FONVIVIENDA, and the Bank and to accomplish the purposes of the Loan. Except as the Bank shall otherwise agree, the rights of the respective Fiduciary Agent or FONVIVIENDA (as the case may be) in any Subproject Contract or any of its provisions shall not be assigned, amended, abrogated or waived; ensure that the following specific procedures shall be carried out in sequence for each Grant or portion thereof made available to a Subproject Developer under any Subproject Contract: before disbursing the first advance under any Subproject Contract, not to exceed 30 percent of the value of the same, the Borrower, through MAVDT, shall ensure that final bidding documents have been produced acceptable to the Bank; before incurring in any eligible expenditure under a Subproject, the Borrower (through MAVDT) shall and/or shall cause FONVIVIENDA to ensure, as preliminary requirements thereof, that:
(i) each Subproject Contract shall have been duly entered into between the respective Fiduciary Agent, on behalf of FONVIVIENDA (in the case of Subprojects-I and Subprojects-III), or between the FONVIVIENDA (in the case of Subprojects-II), and a Subproject Developer and shall comprise various intermediate stages of implementation (not to exceed four stages in total) all of which shall identify pertinent eligible expenditures in connection with the implementation of each such stage, in accordance with terms and conditions set forth in the OM, including adequate environmental and social mitigation measures mandated by the EMF and SMF respectively; and
(ii) a Fiduciary Agent for each Subproject-I and Subproject-III shall have been competitively selected and appointed with terms of reference and qualifications satisfactory to the Bank (as referred to in Section I.E.1 (c) of this Schedule), and, in the case of Subprojects-II, the procurement consultant referred to in Section IV.B.1 (c) (ii) of this Schedule has been competitively selected and appointed with terms of reference and qualifications satisfactory to the Bank; as further specified in the Operational Manual, after the Bank shall receive evidence that the preliminary requirements mentioned in paragraphs (a) and (b) above have been complied with, the Borrower, through MAVDT, may, subject to the terms and conditions of this Agreement and those of the Operational Manual, withdraw the proceeds of the Loan under Category (2) (as an advance) in an amount not exceeding the estimated value of the intermediate stage of the value of the underlying Subproject Contract, to allocate them for eligible expenditures related to the implementation of a Subproject Contract (such intermediate stage to be determined in accordance with the provisions of the OM), provided that in no case shall the amount of aggregate undocumented advances made to the Subproject Developer exceed 30 percent of the Bank-financed portion of the respective Subproject Contract; and thereafter; as further detailed in the Operational Manual, before any subsequent withdrawal (after the initial withdrawal referred to in paragraph (a) above) can be made out of Loan proceeds, the Borrower, through MAVDT, shall ensure, as secondary requirements thereto, that:
(i) Grants-I and Grants-II shall not finance more than 80 percent of expenditures incurred during the implementation of any intermediate stage of a Subproject Contract; and
(ii) any portion of the relevant Grant-I or Grant-II required prior to the implementation of any intermediate stage of the pertinent Subproject Contract and any portion of the financial contributions expected from Subproject Developers for the implementation of any stage of said Subproject Contract (as specified in more detail in the Operational Manual and in the terms and conditions of said Subproject Contract) shall be deposited with the Fiduciary Agent prior to any request for disbursement out of FONVIVIENDA’s fiduciary account managed by the Fiduciary Agent; and as further detailed in the Operational Manual and as set forth in Section IV.B.1 (c) (ii) of this Schedule, before any withdrawal can be made out of Loan proceeds for Part 1.B (ii) (1) of the Project, the Borrower, through MAVDT, shall ensure that a Fiduciary Agent for each Subproject-II shall have been competitively selected and appointed with terms of reference and qualifications satisfactory to the Bank. ensure that no more than fifteen percent (15%) of the amount of Loan proceeds allocated to Category (2) is used to finance Subprojects-III.
Appears in 1 contract
Sources: Loan Agreement
Subprojects. The (a) Without limitation upon the provisions of paragraph 1 of this Schedule, the Borrower, through MAVDTINCAGRO-PMU, shall and/or shall cause FONVIVIENDA to:
1. agree to provide financing out of Loan proceeds for monitor the carrying out of Subprojects in accordance with eligibility criteria, procedures and sequencing of activities, terms and conditions acceptable to the Bank and set forth in the Operational Manual, which shall include, inter alia, the following consecutive actions and procedures:
(a) (i) the evaluation of prospective Subprojects shall be carried out by MAVDT; and (ii) the determination of Subprojects’ eligibility under the Project shall be made by MAVDT in consultation with municipal officials of a participating municipality within the Borrower’s territory using criteria specified in the Operational Manual;
(b) the selection and appointment, in compliance with relevant provisions of Section III of Schedule 2 to this Agreement, for each Subproject-I and Subproject-III, of a real estate development structuring agent responsible for the technical and financial preparation of said type of Subprojects;
(i) the selection and appointment (in accordance with the pertinent provisions of Section III of this Schedule), throughout the duration of each Subproject implementation, of a Fiduciary Agent to manage all fiduciary aspects associated with Subproject implementation, pursuant to an agreement (the Fiduciary Contract) to be entered into between FONVIVIENDA and the pertinent Fiduciary Agent, under which the Fiduciary Agent shall, inter alia:
(A) manage on behalf of FONVIVIENDA (pursuant to instructions from MAVDT), the contracting process (in accordance with the pertinent provisions of Section III of this Schedule) activities of the Subproject Developers for Subprojects-I and Subprojects-III, the independent technical supervisors and other technical functions associated with the development and implementation of Subprojects;
(B) manage Project resources on behalf of FONVIVIENDA (pursuant to instructions from MAVDT) for the implementation of Part 1.B of the Project;
(C) manage the fiduciary aspects of the real estate trust referred to in Part 1.A (i) and Part 1.B.(ii)(2) of the Project on behalf of FONVIVIENDA, Subproject Developers, and, in the case of Subprojects-I and Subprojects-II, of private landholders, pursuant to instructions from the relevant Fiduciary Committee;
(1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Bank, both in a manner adequate to reflect the operations, resources and expenditures related to the respective Subprojects; and (2) at the Bank’s or the Borrower’s (through MAVDT) request, the obligation of each Fiduciary Agent responsible for the relevant Subproject to have such financial statements audited by independent auditors acceptable to the Bank, in accordance with consistently applied auditing standards acceptable to the Bank, and promptly furnish the statements as so audited to the Borrower and the Bank; and
(E) carry out its obligations Subprojects in accordance with the provisions of this Agreementparagraph, the OM Project Operational Manual and the Anti- Corruption Guidelines; andSubproject Operational Manual that include, inter alia:
(i) the administrative rules and procedures for the planning, preparing, proposing, selecting (on a competitive basis, and following a process of peer review), contracting, financing, implementing, supervising, monitoring and evaluating Subprojects;
(ii) the eligibility rules for Beneficiaries;
(iii) a model form of a Subproject Agreement;
(iv) an indigenous peoples’ action plan setting forth the strategies, procedures, activities, and monitoring indicators addressing, in a culturally appropriate manner, indigenous peoples’ concerns in the implementation of the Project, as well as gender-specific plans for planning, preparation and proposals of Subprojects;
(v) the environmental criteria for screening and selecting Subprojects, and mandatory safeguards and mitigation actions for any such Subprojects, which could possibly have a negative environmental impact such as in particular, use of any pesticides, increase in deforestation, pollution of groundwater, negative impacts on endangered species, increase in pesticides in food, increase in soil erosion, impact on parks and protected areas, and encroachment on natural habitats; and
(vi) the procedures related to the manufacturing, packaging, labeling, handling, storing, and disposal of any pesticides used in the carrying out of Subprojects.
(b) The Borrower, through INCAGRO-PMU, shall, prior to the submission of the Loan withdrawal application for the respective activity to be financed through a Subproject Grant, furnish to the Bank a report confirming that the respective Subproject Agreement has been executed, indicating the name of the Beneficiary and detailing how the selection was conducted.
(c) The Subproject Grants shall be requested by a Beneficiary up to an aggregate amount specified for each selection process in accordance with the Project Operational Manual and shall be used solely for the purposes of the activities of the Project.
(d) The Subprojects shall be carried out pursuant to an agreement, to be concluded between the Borrower (through INCAGRO-PMU) and the Beneficiary under terms and conditions described in more details in the Subproject Operational Manual and which shall include the following:
(i) a copy of the approved activity with its budget, its feasibility study, its disbursement and its performance indicators;
(ii) provisions requiring the financing to be made on a partial grant basis;
(iii) the obligation of the Fiduciary Agent Beneficiary to: (A) exercise its rights and carry out its obligations under the Fiduciary Contract in such manner as to protect the interests of the Borrower, FONVIVIENDA, and the Bank and to accomplish the purposes of the Loan; and (B) except as the Bank shall otherwise agree, not assign, amend, abrogate, terminate, waive or fail to enforce the Fiduciary Contract or any provision thereof; and
(d) the selection and appointment, in compliance with relevant provisions of Section III of this Schedule, for each Subproject, of a Subproject Developer by the respective Fiduciary Agent on behalf of FONVIVIENDA (in the case of Subprojects-I and Subprojects-III) or by FONVIVIENDA (in the case of Subprojects-II), all in accordance with Section I.E.2 of this Schedule.
2. extend financing to Subproject Developers responsible for the implementation of any given Subproject pursuant to a Subproject Contract to be entered by and between the Fiduciary Agent on behalf of FONVIVIENDA (in the case of Subprojects-I and Subprojects-III), or by and between FONVIVIENDA (in the case of Subprojects-II), and the respective Subproject Developer (as specified in Section I.E.1 (d) of this Schedule), and having terms and conditions approved by the Bank, which shall include and provide, inter alia, the following:
(a) the financing shall be provided out of the proceeds of the Loan through Grants made to Subproject Developers to support the implementation of the respective Subprojects, such financing to be in an amount not to exceed 50 percent of the estimated market value of the low income housing solutions in any given Subproject-I and Subproject-II, or up to 100 percent of the actual cost of any given Subproject-III, as described in detail in the OM.
(b) rights adequate to protect the Borrower’s interests and those of the Bank shall be inserted therein, including the right to: (i) suspend or terminate the right of the Subproject Developer to use the proceeds of the Grant, or obtain a refund of all or any part of the amount of the Grant then withdrawn, upon the Subproject Developer’s failure to perform any of its obligations under the respective Subproject Contract; and (ii) require each Subproject Developer to:
(A) carry out its Subprojects activities with due diligence and efficiency and in accordance with sound technical, economicadministrative, financial, managerialagricultural, social, natural and environmental and social standards and practices satisfactory to the Bank, including in accordance with the provisions of the OM and the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Borrower;
Subproject Operational Manual; (B) when applicablemaintain adequate records to reflect, providein accordance with simple and sound accounting practices defined in the Subproject Operational Manual, promptly as neededthe operations, the resources required for and expenditures in respect of the purpose;
Subproject Grant; (C) maintain policies and procedures adequate to enable it to monitor and evaluate reporting in accordance with indicators acceptable the standards specified in the Subproject Operational Manual; and (D) make a contribution in kind or/and in cash as defined in the Subproject Operation Manual;
(iv) the requirement that: (A) the goods, works and services to be financed from the proceeds of the Subproject Grants shall be procured in accordance with the procedures set forth in Schedule 4 to this Agreement; and (B) such goods works and services shall be used exclusively in the carrying out of the activities financed by the Subproject Grant;
(v) the right of the INCAGRO-PMU to inspect, by itself or jointly with the MOA and the Bank, the progress of the Subprojects and the achievement of its objectives;
(D) enable the Borrower (through MAVDT), FONVIVIENDA, and if the Bank to inspect shall so request, the goods, works, sites, plants and construction included in the activities financed by the Subprojects, its operation the operations thereof and any relevant records and documents, including providing the information necessary to carry out the audits referred to in Section I.E.1 (c) (i) (D) (2) of this Schedule; and;
(Evi) prepare and furnish the right of the INCAGRO-PMU to the Borrower (through MAVDT), FONVIVIENDA, and the Bank obtain all such information as the Borrower (through MAVDT), FONVIVIENDA MOA or the Bank shall reasonably request relating regarding the administration, operations and financial conditions of the activities financed by the Subprojects; and
(vii) (A) the right of the INCAGRO-PMU to suspend and terminate the right of the Beneficiary to use the proceeds of the Subproject; and (B) the obligation of the Beneficiary to refund any used portion of the Subproject to the foregoing;
3. ensure that INCAGRO-PMU; upon failure by the Fiduciary Agent’s (in the case Beneficiary to perform any of Subprojects-I and Subprojects-its obligations under its Subproject Agreement.
Appears in 1 contract
Sources: Loan Agreement