Common use of Entry into force Clause in Contracts

Entry into force. This Contract shall enter into force upon confirmation by the Bank to the Borrower that it has received a certified copy of the Official Gazette of the Republic of Serbia publishing the law on ratification of this Contract by the Parliament of the Republic of Serbia. The Recitals and following Schedules form part of this Contract: (A) Project Specification and Reporting (B) Definition of EURIBOR (C) Forms for Borrower (D) Interest Rate Revision and Conversion (E) Certificates to be provided by the Borrower (F) Additional Forms for Allocation Request The parties hereto have caused this Contract to be executed in 6 (six) originals in the English language. At Belgrade, this 15 of April 2019 Signed for and on behalf of REPUBLIC OF SERBIA Minister of Finace Signed for and on behalf of EUROPEAN INVESTMENT BANK Head of Division Legal Counsel ▇▇▇▇▇▇ Mali ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ The investment schemes will be located in less developed and underdeveloped municipalities dispersed throughout Serbia. The Project is comprised of a programme of small investments in public infrastructure in municipalities that have either been affected by migration and/or assessed as underdeveloped by the Promoter. The scope of investments will be as follows: a) Repair and improvement of Public Buildings b) (Re)Construction of local markets c) Renewal of Public Space and Local Amenities (including public lightning) d) Repair or upgrade of other elements of local infrastructure The Project will be implemented in the period 2018 to 2022 • The Bank will generally allocate its funds only to eligible schemes which are economically, technically and financially justified and environmentally sound. All schemes must comply with EU environmental, procurement and state aid legislation and also comply with the principles and standards of the Bank’s Environmental Policy Statement1. • The loan amount across the set of schemes financed shall not exceed 75% of the project investment costs and 100% of the eligible investment costs. • The eligible project investment cost includes (non-exhaustive list), studies and engineering, all PIU costs (including remuneration/fees of PIU personnel and associated costs of running the PIU), civil works, equipment and installation, non-recoverable VAT, technical and price contingencies. • The following costs are not eligible for the Bank: VAT and other taxes and duties, land acquisition, purchase of buildings, maintenance, repairs and other operating costs, acquisition of second-hand assets, interest during construction, purchase of licences for the use of non-generated public resources (e.g. telecom licences), patents, brands and trademarks. Purely financial transactions are also not eligible. • The eligibility for EIB financing will be checked by the Bank at allocation stage against the above list and the Bank’s standard eligibility criteria. • The Bank reserves the right to review allocation procedures in view of the development of the Project. 1 ▇▇▇▇://▇▇▇.▇▇▇.▇▇▇/▇▇▇▇▇▇▇▇▇▇▇/▇▇▇▇▇▇▇▇▇▇/▇▇▇_▇▇▇▇▇▇▇▇▇_▇▇▇▇_▇▇.▇▇▇ The EIB loan will be allocated to the schemes satisfying the sectors listed in the technical description with procedures modulated in line with applicable loan procedures: a) Eligible schemes are selected by the Promoter. The choices are subject to ex- post confirmation of eligibility by the Bank’s services. The Promoter is to submit an allocation request in a form required by the Bank (as defined in A.1.2). b) Together with an allocation request, the Promoter should provide the following documentation supporting environmental compliance of the schemes concerned: • Procurement plan as defined in A.1.3 • Compliance with EIA Directive 2011/92/EU and EIA Directive 2014/52/EU, when relevant: For schemes requiring an EIA (Annex II screened in or Annex I of EIA Directive): copy of the Environmental Decision(s) (or equivalent) and Environmental Impact Assessment (EIA) with a summary description of the environmental measures adopted (mitigating, compensation, etc.) In addition, please provide a copy of the corresponding Non-Technical Summary (NTS) or a link to a public version of it on a relevant public entity’s official web site. Compliance with the EU Habitats and Birds Directives (92/43/EEC and 79/409/EEC) • For schemes with potential or likely significant effects on protected areas (equivalent to Site of Community Importance (SCI), Natura 2000 or otherwise) and subject to a screening under the EU Habitats and Birds Directives: Form A or its equivalent signed by the competent authority responsible for the monitoring of such sites. This declaration should confirm that the required assessments under the EU Habitats and Birds Directives have been carried out (if necessary), that the scheme will have no significant impact on any protected site and that the appropriate mitigation measures have been identified. • For schemes with a significant impact, potential or likely, on a protected area (equivalent to SCI), requiring an assessment under Article 6(4) of the Habitats Directive: Form B or its equivalent - signed by the competent authority responsible for monitoring such areas, together with the justification of overriding public interest. c) For schemes which fall under ▇▇▇▇▇ ▇▇ of the EIA Directive and not requiring an EIA: the Promoter shall ensure that a screening procedure taking into account the criteria listed in Annex III of EU EIA Directive was carried out by the environmental competent authority. The screening decision can be common for several schemes. A copy of this decision might be requested by the EIB. d) The Promoter shall store and keep the relevant documents updated, including documents supporting the compliance with the environmental legislation. In case the EIB requires such documentation for any of the schemes included in this operation, the Promoter shall promptly provide all documents requested. • Manufacture and distribution of weapons and ammunition, arms and military equipment • Waste incineration (including RDF) and processing of hazardous waste • Gambling and betting activities • Detention Facilities e.g. prisons, police stations, schools with custodial functions. • Sectors and activities with a strong ethical dimension considered to carry significant reputation risk. No of allocation Project number Project number in allocation Location (settlement and municipality) Project description Civil works Cost Consultancy PIU EIB Source of funding National government Municipality UNDP Start date Completion date (update) Progress status % completion Name of local plan or equivalent strategy Planning framework Public consultation y/n Project referenced as an ojective? y/n EIA required y/n Natura 2000 or equivalent required y/n Land acquisition y/n Resettlement y/n Temporary Jobs created Permanent Energy savings (MWh/annum) Redeveloped area (hectares) Number Public buildings upgraded Civil servants benefitting Commentary on the foregoing incl problems/issues 53 A.1.2 Allocation table A.1.3 Procurement plan template Procurement plan Nº Contra ct Name Prom Tender Identifier Contra ct Type Estimated amount (€) Upd ate Financing Procurem ent Method Tender Docume nts Publishe d in OJEU? Estimated publication date Upda te Estimat ed bid submis sion date Upda te Estima ted contra ct award date Upda te Estima ted contra ct end date Upda te Procure ment Status No. of bids % finance d by EIB Other Financi ers Fields Nº Arbitrary number that is assigned consecutively Contract Name Scope of the contract or short description Prom Tender Identifier Code or reference used by the promoter to refer to the contract (if any) Contract Type Type of contract being procured, works: goods or services Estimated Amount Estimation of contract value by the promoter % financed by EIB Share of the contract that will be financed by EIB, in accordance with the financing plan of the project Other Financiers Other IFIs or MDBs that will be jointly co-financing the contract, if any Procurement Method Procurement method used, chosen among the ones available under 3.3 of the Guide to Procurement Tender Documents Type of standard tender documents used, whether they are based on other IFI's templates or national templates Published in OJEU Flag showing whether the tender notice will be published in the Official Journal of the European Union Estimated publication date Promoter's estimation of the date of publication of the tender notice Estimated bid submission date ▇▇▇▇▇▇▇▇'▇ estimation of the date of bid submission Estimated contract award date ▇▇▇▇▇▇▇▇'▇ estimation of the date of contract award Estimated contract end date ▇▇▇▇▇▇▇▇'▇ estimation of the date of contract end Procurement Status Status of the procurement process (not started - tender notice not yet published, ongoing - tender notice started but contract not yet signed or contract signed) No. of bids No. of bids received

Entry into force. This Contract shall enter into force upon confirmation by the Bank to the Borrower that it has received a certified copy of the Official Gazette of the Republic of Serbia publishing the law on ratification of this Contract by the Parliament of the Republic of Serbia. The Recitals and following Schedules form part of this Contract: (A) Project Specification and Reporting (B) Definition of EURIBOR (C) Forms for Borrower (D) Interest Rate Revision and Conversion (E) Certificates to be provided by the Borrower (F) Additional Forms for Allocation Request The parties hereto have caused this Contract to be executed in 6 (six) originals in the English language. At Belgrade, this 15 of April 2019 Signed for and on behalf of REPUBLIC OF SERBIA Minister of Finace Signed for and on behalf of EUROPEAN INVESTMENT BANK Head of Division Legal Counsel ▇▇▇▇▇▇ Mali Mali, s.r. ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇, s.r. ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇, s.r. The investment schemes will be located in less developed and underdeveloped municipalities dispersed throughout Serbia. The Project is comprised of a programme of small investments in public infrastructure in municipalities that have either been affected by migration and/or assessed as underdeveloped by the Promoter. The scope of investments will be as follows: a) Repair and improvement of Public Buildings b) (Re)Construction of local markets c) Renewal of Public Space and Local Amenities (including public lightning) d) Repair or upgrade of other elements of local infrastructure The Project will be implemented in the period 2018 to 2022 •  The Bank will generally allocate its funds only to eligible schemes which are economically, technically and financially justified and environmentally sound. All schemes must comply with EU environmental, procurement and state aid legislation and also comply with the principles and standards of the Bank’s Environmental Policy Statement1. •  The loan amount across the set of schemes financed shall not exceed 75% of the project investment costs and 100% of the eligible investment costs. •  The eligible project investment cost includes (non-exhaustive list), studies and engineering, all PIU costs (including remuneration/fees of PIU personnel and associated costs of running the PIU), civil works, equipment and installation, non-recoverable VAT, technical and price contingencies. •  The following costs are not eligible for the Bank: VAT and other taxes and duties, land acquisition, purchase of buildings, maintenance, repairs and other operating costs, acquisition of second-hand assets, interest during construction, purchase of licences for the use of non-generated public resources (e.g. telecom licences), patents, brands and trademarks. Purely financial transactions are also not eligible. •  The eligibility for EIB financing will be checked by the Bank at allocation stage against the above list and the Bank’s standard eligibility criteria. •  The Bank reserves the right to review allocation procedures in view of the development of the Project. 1 ▇▇▇▇://▇▇▇.▇▇▇.▇▇▇/▇▇▇▇▇▇▇▇▇▇▇/▇▇▇▇▇▇▇▇▇▇/▇▇▇_▇▇▇▇▇▇▇▇▇_▇▇▇▇_▇▇.▇▇▇ The EIB loan will be allocated to the schemes satisfying the sectors listed in the technical description with procedures modulated in line with applicable loan procedures: a) Eligible schemes are selected by the Promoter. The choices are subject to ex- post confirmation of eligibility by the Bank’s services. The Promoter is to submit an allocation request in a form required by the Bank (as defined in A.1.2). b) Together with an allocation request, the Promoter should provide the following documentation supporting environmental compliance of the schemes concerned: •  Procurement plan as defined in A.1.3 •  Compliance with EIA Directive 2011/92/EU and EIA Directive 2014/52/EU, when relevant: For schemes requiring an EIA (Annex II screened in or Annex I of EIA Directive): copy of the Environmental Decision(s) (or equivalent) and Environmental Impact Assessment (EIA) with a summary description of the environmental measures adopted (mitigating, compensation, etc.) In addition, please provide a copy of the corresponding Non-Technical Summary (NTS) or a link to a public version of it on a relevant public entity’s official web site. Compliance with the EU Habitats and Birds Directives (92/43/EEC and 79/409/EEC) •  For schemes with potential or likely significant effects on protected areas (equivalent to Site of Community Importance (SCI), Natura 2000 or otherwise) and subject to a screening under the EU Habitats and Birds Directives: Form A or its equivalent signed by the competent authority responsible for the monitoring of such sites. This declaration should confirm that the required assessments under the EU Habitats and Birds Directives have been carried out (if necessary), that the scheme will have no significant impact on any protected site and that the appropriate mitigation measures have been identified. •  For schemes with a significant impact, potential or likely, on a protected area (equivalent to SCI), requiring an assessment under Article 6(4) of the Habitats Directive: Form B or its equivalent - signed by the competent authority responsible for monitoring such areas, together with the justification of overriding public interest. c) For schemes which fall under ▇▇▇▇▇ ▇▇ of the EIA Directive and not requiring an EIA: the Promoter shall ensure that a screening procedure taking into account the criteria listed in Annex III of EU EIA Directive was carried out by the environmental competent authority. The screening decision can be common for several schemes. A copy of this decision might be requested by the EIB. d) The Promoter shall store and keep the relevant documents updated, including documents supporting the compliance with the environmental legislation. In case the EIB requires such documentation for any of the schemes included in this operation, the Promoter shall promptly provide all documents requested. •  Manufacture and distribution of weapons and ammunition, arms and military equipment •  Waste incineration (including RDF) and processing of hazardous waste •  Gambling and betting activities •  Detention Facilities e.g. prisons, police stations, schools with custodial functions. • functions  Sectors and activities with a strong ethical dimension considered to carry significant reputation risk. No of allocation Project number Project number in allocation Location (settlement and municipality) Project description Civil works Cost Consultancy PIU EIB Source of funding National government Municipality UNDP Start date Completion date (update) Progress status % completion Name of local plan or equivalent strategy Planning framework Public consultation y/n Project referenced as an ojective? y/n EIA required y/n Natura 2000 or equivalent required y/n Land acquisition y/n Resettlement y/n Temporary Jobs created Permanent Energy savings (MWh/annum) Redeveloped area (hectares) Number Public buildings upgraded Civil servants benefitting Commentary on the foregoing incl problems/issues 53 52 A.1.2 Allocation table A.1.3 Procurement plan template Procurement plan Nº Contra ct Name Prom Tender Identifier Contra ct Type Estimated amount (€) Upd ate Financing Procurem ent Method Tender Docume nts Publishe d in OJEU? Estimated publication date Upda te Estimat ed bid submis sion date Upda te Estima ted contra ct award date Upda te Estima ted contra ct end date Upda te Procure ment Status No. of bids % finance d by EIB Other Financi ers Fields Nº Arbitrary number that is assigned consecutively Contract Name Scope of the contract or short description Prom Tender Identifier Code or reference used by the promoter to refer to the contract (if any) Contract Type Type of contract being procured, works: goods or services Estimated Amount Estimation of contract value by the promoter % financed by EIB Share of the contract that will be financed by EIB, in accordance with the financing plan of the project Other Financiers Other IFIs or MDBs that will be jointly co-financing the contract, if any Procurement Method Procurement method used, chosen among the ones available under 3.3 of the Guide to Procurement Tender Documents Type of standard tender documents used, whether they are based on other IFI's templates or national templates Published in OJEU Flag showing whether the tender notice will be published in the Official Journal of the European Union Estimated publication date Promoter's estimation of the date of publication of the tender notice Estimated bid submission date ▇▇▇▇▇▇▇▇'▇ estimation of the date of bid submission Estimated contract award date ▇▇▇▇▇▇▇▇'▇ estimation of the date of contract award Estimated contract end date ▇▇▇▇▇▇▇▇'▇ estimation of the date of contract end Procurement Status Status of the procurement process (not started - tender notice not yet published, ongoing - tender notice started but contract not yet signed or contract signed) No. of bids No. of bids received