LOAN AGREEMENT(SERBIA RAIL CORRIDOR X - BELGRADE TO NIS SECTION) BETWEEN THE REPUBLIC OF SERBIA AND EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT("Off. Herald of RS - Treaties", No. 2/2023) |
(Operation Number 53136)
Dated 15 December 2022
TABLE OF CONTENTS
ARTICLE I - STANDARD TERMS AND CONDITIONS; DEFINITIONS |
2 |
Section 1.01. Incorporation of Standard Terms and Conditions |
2 |
Section 1.02. Definitions |
2 |
Section 1.03. Interpretation |
3 |
ARTICLE II - PRINCIPAL TERMS OF THE LOAN |
3 |
Section 2.01. Amount and Currency |
3 |
Section 2.02. Other Financial Terms of the Loan |
4 |
Section 2.03. Drawdowns |
5 |
ARTICLE III - EXECUTION OF THE PROJECT |
9 |
Section 3.01. Other Affirmative Project Covenants |
9 |
ARTICLE IV - SUSPENSION; ACCELERATION; CANCELLATION |
7 |
Section 4.01. Suspension |
7 |
ARTICLE V - EFFECTIVENESS; CONDITIONS PRECeDENT TO TRANCHES |
7 |
Section 5.01. Conditions Precedent to Effectiveness |
7 |
Section 5.02. Conditions Precedent to Drawdowns under the Tranche 1 Loan |
8 |
Section 5.03 Additional Conditions Precedent to the Commitment of each of the Uncommitted Loan Tranches |
8 |
Section 5.04 Additional Conditions Precedent to Drawdowns under of each of the Uncommitted Loan Tranches |
9 |
Section 5.05. Legal Opinions |
9 |
Section 5.06. Termination for Failure to Become Effective |
9 |
ARTICLE VI - MISCELLANEOUS |
9 |
Section 6.01. Notices |
9 |
SCHEDULE 1 - DESCRIPTION OF THE PROJECT |
S1-1 |
SCHEDULE 2 - CATEGORIES AND DRAWDOWNS |
S2-1 |
LOAN AGREEMENT
AGREEMENT dated 15 December 2022 between THE REPUBLIC OF SERBIA (the "Borrower") and EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (the "Bank").
PREAMBLE
WHEREAS, the Bank has been established to provide financing for specific projects to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative in certain countries committed to and applying the principles of multiparty democracy, pluralism and market economics;
WHEREAS, the Borrower intends to implement the Project as described in Schedule 1 which is designed to assist in the modernisation and upgrade of a ca. 243.5 km section of the Corridor X railway between Belgrade and Nis;
WHEREAS, the Project will be carried out by JSC Serbia Railways Infrastructure (the "Project Entity") with financial assistance from the Borrower (acting through the Ministry of Finance) and technical support from the Borrower (acting through the Ministry of Construction, Transport and Infrastructure (the "MoCTI"));
WHEREAS, the Borrower has requested assistance from the Bank in financing part of the Project;
WHEREAS, the Borrower intends to contract a loan from the European Investment Bank (the "Co-financier") in the amount of EUR 1.1 billion to assist in financing the Project, subject to the terms and conditions to be set forth in an agreement (the "Co-financing Agreement") between the Borrower and the Co-financier;
WHEREAS, the Borrower intends to contract an investment grant from the WBIF in the amount of EUR 598 million to assist in financing the Project, subject to the terms and conditions to be set forth in one or more agreements (the "WBIF Grant Agreement") between the Borrower and the WBIF;
WHEREAS, the Bank is in the process of arranging technical cooperation funds on a grant basis to finance consultancy services required for the Project; and
WHEREAS, the Bank has agreed on the basis of, inter alia, the foregoing to make a loan to the Borrower in the amount of EUR 550 million, subject to the terms and conditions set forth or referred to in this Agreement and in the project agreement dated on or about the date hereof by and among the Borrower (acting through the MoCTI), the Project Entity and the Bank (the "Project Agreement" as defined in the Standard Terms and Conditions).
NOW, THEREFORE, the parties hereby agree as follows:
ARTICLE I
STANDARD TERMS AND CONDITIONS; DEFINITIONS
Section 1.01. Incorporation of Standard Terms and Conditions
All of the provisions of the Bank’s Standard Terms and Conditions dated 5 November 2021 are hereby incorporated into and made applicable to this Agreement with the same force and effect as if they were fully set forth herein (the "Standard Terms and Conditions").
Wherever used in this Agreement (including the Preamble and Schedules), unless stated otherwise or the context otherwise requires, the terms defined in the Preamble have the respective meanings given to them therein, the terms defined in the Standard Terms and Conditions and the Project Agreement have the respective meanings given to them therein and the following terms have the following meanings:
"Borrower’s Authorised Representative" |
means the Minister of Finance of the Borrower. |
"Corporate Governance Action Plan" (or "CGAP") |
means the plan of corporate governance measures agreed by the Bank and the Project Entity and which is attached to the Project Agreement as Schedule 2, as such plan may be amended from time to time with the prior written consent of the Bank. |
"ClientNet" |
means the Bank’s online portal for the transmission of documents and information between the Bank and its clients, and any replacement website as the Bank may from time to time notify the Borrower. |
"Commitment Notice" |
has the meaning given to it in Section 2.01(b). |
"Enforcement Policy and Procedures" |
means the Bank’s Enforcement Policy and Procedures dated 4 October 2017. |
"Environmental and Social Action Plan" (or "ESAP") |
means the plan of environmental and social mitigation and improvement measures dated July 2022, and prepared by Enova Consultants and Engineers a copy of which is attached to the Project Agreement as Schedule 1, as such plan may be amended from time to time with the prior written consent of the Bank in accordance with Section 2.04(d) of the Project Agreement. The Environmental and Social Action Plan will be updated before the Bank’s commitment of each of the Uncommitted Loan Tranches. |
"Environmental and Social Impact Assessment (or "ESIA") |
means environmental and social impact assessment, which shall be duly updated by the Bank and Project Entity before the Bank’s commitment of each of the Uncommitted Loan Tranches. |
"Fiscal Year" |
means the Borrower’s fiscal year commencing on 1 January of each year. |
"Loan Currency" |
means EUR. |
"MoCTI" |
means the Ministry of Construction, Transport and Infrastructure or any successor entity. |
"PIU" |
means the team of professional and support staff with the necessary administrative powers as well as physical and financial resources necessary to implement the Project. |
"Sub-Part" |
has the meaning given to it in Schedule 1, sub-paragraph 2. |
"Tranche" |
has the meaning given to it in Section 2.01(b). |
"Tranche 1 Loan" |
has the meaning given to it in Section 2.01(b)(1). |
"Uncommitted Loan Tranche" |
has the meaning given to it in Section 2.01(b). |
In this Agreement, a reference to a specified Article, Section or Schedule shall, except where stated otherwise in this Agreement, be construed as a reference to that specified Article or Section of, or Schedule to, this Agreement.
ARTICLE II
Section 2.01. Amount and Currency
(a) The Bank agrees to lend to the Borrower, on the terms and conditions set forth or referred to in this Agreement, the amount of EUR 550 million.
(b) The Loan shall consist of six tranches (each a "Tranche"), as follows:
(1) Tranche 1 in an amount of up to EUR 60 million for Part 1 of the Project to finance the Stalac-Djunis Lot 2 Sub-Section ("Tranche 1 Loan"), to be committed from the date of effectiveness of the Loan Agreement;
(2) Tranche 2 in the amount of EUR 140 million for Part 2 of the Project to finance the Belgrade Center-Velika Plana Sub-Section ("Tranche 2 Loan");
(3) Tranche 3 in the amount of EUR 85 million for Part 2 of the Project to finance the Velika Plana-Paracin Sub-Section ("Tranche 3 Loan");
(4) Tranche 4 in the amount of EUR 100 million for Part 2 of the Project to finance the Paracin-Medjurovo Sub-Section ("Tranche 4 Loan");
(5) Tranche 5 in the amount of EUR 55 million for Part 2 of the Project to finance the Belgrade and Nis railway nodes Sub-Section ("Tranche 5 Loan"); and
(6) Tranche 6 in the amount of EUR 110 million for Part 2 of the Project to finance the Signalling/Telecommunications contract ("Tranche 6 Loan").
Each of the Tranches set out in (2) to (6) above (an "Uncommitted Loan Tranche") is uncommitted at signing but may be committed by the Bank in its sole discretion following receipt of a written request from the Borrower and the satisfaction or waiver at the Bank’s discretion of the conditions precedent set out in Section 5.03. The Bank will provide a written notice in each case confirming its decision to commit each Tranche (such notice being a "Commitment Notice") with the amounts so committed forming part of the Available Amount from the date of the respective Commitment Notice.
(c) The Borrower shall pay to the Bank a Commitment Charge of 0.5% per annum on the Available Amount as follows:
(1) Tranche 1 Loan: The Commitment Charge in respect of the Tranche 1 Loan shall be calculated based on the Available Amount for such tranche and shall accrue from the date sixty (60) days after the date of the Loan Agreement; and
(2) Uncommitted Loan Tranches: The Commitment Charge in respect of each of the Uncommitted Loan Tranches shall be calculated based on the Available Amount for such tranche and shall accrue from the date sixty (60) days after the date of the respective Commitment Notice.
The Commitment Charge shall accrue and be calculated on the same basis as interest under Section 3.04(b)(ii) of the Standard Terms and Conditions and shall be payable on each Interest Payment Date (even though no interest may be payable on such date) commencing on the first Interest Payment Date following the Effective Date (for the Tranche 1 Loan) or the first Interest Payment Date following the Commitment Notice (for each of the Uncommitted Loan Tranches).
(d) The Borrower shall pay to the Bank a front-end commission equal to one per cent (1%) of the principal amount of each Tranche of the Loan as follows:
(1) Tranche 1 Loan: the Front-end Commission shall be due and payable within 7 days of the Effective Date; and
(2) Uncommitted Loan Tranches: the Front-end Commission in respect of each Uncommitted Loan Tranche shall be due and payable within 7 days of the date of the applicable Commitment Notice.
Section 2.02. Other Financial Terms of the Loan
(a) The Minimum Drawdown Amount shall be EUR 3 million.
(b) The Minimum Prepayment Amount shall be EUR 1 million.
(c) The Minimum Cancellation Amount shall be EUR 1 million.
(d) The Interest Payment Dates shall be 20 April and 20 October of each year.
(e) (1) The Borrower shall repay the Tranche 1 Loan in 22 equal (or as nearly equal as possible) semi-annual instalments on 20 April and 20 October of each year, with the first Loan Repayment Date being 20 April 2027 and the last Loan Repayment Date being 20 October 2037.
(2) The Borrower shall repay each of the Uncommitted Loan Tranches in 22 equal (or as nearly equal as possible) semi-annual instalments on 20 April and 20 October of each year, with the first Loan Repayment Date for each Tranche falling on the Interest Payment Date following the 4 th anniversary of the applicable Commitment Notice.
(3) Notwithstanding the foregoing, in the event that (i) the Borrower does not draw down the entire amount of any Tranche prior to the first Loan Repayment Date specified in this Section 2.02.(e), and (ii) the Bank extends the Last Availability Date for a Tranche specified in Section 2.02.(f) below to a date which falls after such first Loan Repayment Date for that Tranche, then the amount of each drawdown made on or after the first Loan Repayment Date shall be allocated for repayment in equal amounts to the several Loan Repayment Dates which fall after the date of such drawdown (with the Bank adjusting the amounts so allocated as necessary so as to achieve whole numbers in each case). The Bank shall, from time to time, notify the Borrower of such allocations.
(f) The Last Availability Date for the Tranche 1 Loan shall be the 5 th anniversary of the Loan Agreement, or such later date that the Bank may in its discretion establish in accordance with the Standard Terms and Conditions and notify to the Borrower. Any extension of the Last Availability Date of Tranche 1 Loan will be effected through the means of exchange of letters between the Bank and the Borrower. The Last Availability Date for each Uncommitted Loan Tranche shall be the 4 th anniversary of the applicable Commitment Notice, or such later date that the Bank may in its discretion establish in accordance with the Standard Terms and Conditions and notify to the Borrower. Any extension of the Last Availability Date of an Uncommitted Loan Tranche will be effected through the means of exchange of letters between the Bank and the Borrower. If the Available Amount, or any part thereof, is subject to a Fixed Interest Rate, and the Bank postpones the Last Availability Date, the Borrower shall promptly pay to the Bank such amount of Unwinding Costs as shall, from time to time, be notified by the Bank in writing to the Borrower.
(g) The Loan is subject to a Variable Interest Rate. Notwithstanding the foregoing, the Borrower may, as an alternative to paying interest at a Variable Interest Rate on all or any portion of the Loan then outstanding, elect to pay interest at a Fixed Interest Rate on such portion of the Loan in accordance with Section 3.04(c) of the Standard Terms and Conditions.
(a) The Available Amount in respect of any Tranche may be drawn down from time to time in accordance with the provisions of Schedule 2 to finance (1) expenditures made (or, if the Bank so agrees, to be made) in respect of the reasonable cost of goods, works and services required for the Project, and (2) the Front-end Commission.
ARTICLE III
Section 3.01. Other Affirmative Project Covenants
In addition to the general undertakings set forth in Articles IV and V of the Standard Terms and Conditions, the Borrower (acting through the MoCTI) shall, and shall cause the Project Entity to, unless the Bank otherwise agrees:
(a) Cause all goods, works and services financed out of the proceeds of the Loan to be used exclusively for the purposes of the Project;
(b) Delegate to the Project Entity the day-to-day management of the Project, including, but not limited to, the consolidated financial and procurement management;
(c) Cause the Project Entity to perform all of its obligations under the Project Agreement, including, without limitation, relating to:
(1) the Project obligations as provided for in Section 2.01 of the Project Agreement;
(2) establishment and operation of a project implementation unit as provided for in Section 2.02 of the Project Agreement;
(3) procurement of goods, works and services as well as consultancy services from the Project as provided for in Section 2.03 of the Project Agreement;
(4) environmental and social matters as provided for in Section 2.04 of the Project Agreement;
(5) employment and use of consultants to assist in the implementation of the Project as provided for in Section 2.05 of the Project Agreement;
(6) preparation and submission of reports on matters relating to the Project and to the Project Entity’s operations as provided for in Section 2.06 of the Project Agreement;
(7) maintenance of procedures, records and accounts, preparation, auditing and submission to the Bank of financial statements and furnishing to the Bank any other relevant information relating to the Project or the Project Entity’s operations as provided for in Section 3.01 of the Project Agreement; and
(8) compliance with all covenants regarding financial and operational aspects of the Project and the Project Entity as provided for in Sections 3.02 and 3.03 of the Project Agreement;
(d) Take, or cause to be taken, all additional action necessary to provide adequate funds for the completion of the Project, including requesting government contributions if required;
(e) Provide or cause to be provided, when requested, all governmental licenses, approvals or consents required by the Project Entity for the Project, and for carrying out their businesses, including all approvals and licenses necessary to ensure that the Project Entity are granted rights of way and other land use rights necessary for carrying out the Project;
(f) Exempt from VAT and custom duties, all goods, works and services (including consultancy services), procured by the Borrower (acting through the MoCTI) or the Project Entity, for the Project and financed from the proceeds of the Loan or any technical cooperation funds made available by the Bank;
(g) Ensure the implementation of the ESIAs, ESAPs, Stakeholder Engagement Plans, Resettlement Framework and Action Plans as well as compliance with the EBRD’s Environmental and Social Policy by the Project Entity;
(h) Ensure that the Project Entity has adequate resources and suitably qualified personnel during the implementation of the Project as well as after the completion of the Project during the life of the Loan;
(i) Ensure that the actions from CGAP under the Project Entity’s remit are implemented duly, as well as implement all actions that are in the purview of the Borrower;
(j) Implement, through MoCTI coordination, a gender responsive participatory local planning and service provision programme for the municipalities along the Corridor by not later than end-2025;
(k) Implement the actions under the Transport Community Rail Action Plan by no later than end-2025;
(l) Ensure that the Project Entity adopts the Corporate Development Programme and implements at least two of its key priorities/recommendations by no later than end-2025;
(m) Formally approve and implement the strategy and action plan setting out the transition of the Rail Directorate into an independent economic regulator by not later than end-2025; and
(n) Ensure, through the MoCTI and Project Entity, the appointment of suitably qualified consultants under terms of reference acceptable to the Bank to perform the consultancy services under the EBRD Technical Assistance.
ARTICLE IV
SUSPENSION; ACCELERATION; CANCELLATION
The following are specified for purposes of Section 7.01(a)(xvii) of the Standard Terms and Conditions:
(a) The legislative and regulatory framework applicable to the rail sector in the territory of the Borrower shall have been amended, suspended, abrogated, repealed or waived in a manner that would have a material adverse effect on the Project or the ability of the Borrower and/or the Project Entity to perform their obligations under this agreement or the Project Agreement;
(b) The Statutes shall have been amended, suspended, abrogated, repealed or waived in a manner that would have a material adverse effect on the Project or the ability of the Project Entity to perform its obligations under the Project Agreement; or
(c) Control of the Project Entity shall have been transferred to a party other than the Borrower unless the Bank has given its prior written approval to such transfer.
ARTICLE V
EFFECTIVENESS; CONDITIONS PRECeDENT TO TRANCHES
Section 5.01. Conditions Precedent to Effectiveness
The following are specified for purposes of Section 9.02(c) of the Standard Terms and Conditions as additional conditions to the effectiveness of this Agreement and the Project Agreement:
(a) Each of the Co-financing Agreement and the WBIF Grant Agreement for the corresponding funds of the Tranche 1 Loan has been executed and delivered and all conditions precedent to its effectiveness have been met or waived (other than the effectiveness of this Agreement);
(b) Ratification of the Loan Agreement by the Parliament of the Republic of Serbia;
(c) Execution of the Project Agreement; and
(d) Execution of the Project Implementation Agreement by the Bank and the Co-Financier.
Section 5.02. Conditions Precedent to Drawdowns under the Tranche 1 Loan
The obligation of the Bank to make the first Disbursement under the Tranche 1 Loan shall be subject to the prior fulfilment, in form and substance satisfactory to the Bank, or at the sole discretion of the Bank the waiver, whether in whole or part and whether subject to conditions or unconditional, of the following conditions precedent:
(a) The PIU has been established by the Project Entity with adequate resources and suitably qualified personnel, in form and substance satisfactory to the Bank, and is operational;
(b) Appointment by the Project Entity of qualified consultants acceptable to the Bank to assist them with the implementation of the Project;
(c) Appointment by the Project Entity of an independent engineer to supervise construction works of the Project; and
(d) The works contract for the Part 1 of the Project has been signed and the copy of the signed contract has been delivered to the Bank.
Section 5.03 Additional Conditions Precedent to the Commitment of each of the Uncommitted Loan Tranches
The obligation of the Bank to make each of the Uncommitted Loan Tranches available pursuant to Section 2.01(b) shall be at the Bank’s sole discretion and, shall be subject to the prior fulfilment, in form and substance satisfactory to the Bank, or at the sole discretion of the Bank the waiver, whether in whole or part and whether subject to conditions or unconditional, of the following conditions precedent:
(a) The Bank has received a written request from the Borrower to commit the Uncommitted Loan Tranche;
(b) Technical, environmental and social due diligence for the Sub-Part to be funded by the Uncommitted Loan Tranche has been completed in a manner satisfactory to the Bank;
(c) In respect of the works in the Sub-Part to be funded by the Uncommitted Loan Tranche, each of the ESIA, Resettlement Action Plan, updated ESAP and updated Environmental and Social Management Plans have been:
(i) agreed between the Bank and the Project Entity, and
(ii) publicly disclosed in accordance with EBRD’s Environmental and Social Policy and Access to Information Policy.
Section 5.04 Additional Conditions Precedent to Drawdowns under of each of the Uncommitted Loan Tranches
The obligation of the Bank to make the first Disbursement under each of the Uncommitted Loan Tranches shall be subject to the prior fulfilment, in form and substance satisfactory to the Bank, or at the sole discretion of the Bank the waiver, whether in whole or part and whether subject to conditions or unconditional, of the following conditions precedent:
(a) Appointment by the Project Entity of an independent engineer to supervise construction works of the Project;
(b) For each Part 2 Sub-Part, the works contract has been signed and the copy of the signed contract has been delivered to the Bank;
(c) Execution and effectiveness of the Co-financing Agreement in respect of the corresponding Part or Sub-Part of the works; and
(d) Execution and effectiveness of the respective WBIF Grant Agreement in respect of the corresponding Sub-Part of the works.
(a) For purposes of Section 9.03(a) of the Standard Terms and Conditions, the opinion of counsel shall be given on behalf of the Borrower by the Ministry of Justice;
(b) For purposes of Section 9.03(c) of the Standard Terms and Conditions, the opinion or opinions of counsel shall be given on behalf of the Project Entity by the head of the legal department of the Project Entity;
Section 5.06. Termination for Failure to Become Effective
The date 180 days after the date of this Agreement is specified for purposes of Section 9.04 of the Standard Terms and Conditions.
ARTICLE VI
(a) Notices shall meet the language requirements of Section 10.04 of the Standard Terms and Conditions. The following addresses are specified for purposes of Section 10.01 of the Standard Terms and Conditions, except that any notice shall be deemed to be delivered if by hand, mail, or in pdf or similar format by electronic mail:
For the Borrower:
Ministry of Finance of the Republic of Serbia
Kneza Milosa 20
11000 Belgrade
Serbia
Attention: Minister of Finance
Email: kabinet@mfin.gov.rs
For EBRD:
European Bank for Reconstruction and Development
Five Bank Street,
London, E14 4BG
United Kingdom
Attention: Operation Administration Department / Operation No. 53136
Telephone: +44 20 7338 6000
Email: oad@ebrd.com
(b) The Bank may invite the Borrower to register to use ClientNet or another form of electronic communication and, if the Borrower and the Bank agree to use ClientNet or such other form of electronic communication, any notice, application or other communication from the Borrower to the Bank or from the Bank to the Borrower (other than any notice, application or other communication that is required by this Agreement to be in an original, certified or hard copy), may, subject to the terms and conditions of ClientNet or such other form of electronic communication, be given or made by posting such notice, application or other communication on ClientNet or sent in accordance with the terms agreed concerning such other form of electronic communication.
(c) Any notice, application or other communication delivered by hand, airmail or facsimile transmission or via ClientNet or another agreed form of electronic communication will only be effective when actually received (or made available) in readable form, provided that any notice, application or other communication that is received (or made available) after 5:00 p.m. in the place in which the party to whom the relevant notice, application or communication is sent has its address for the purpose of this Agreement shall be deemed only to become effective on the following day.
(d) The following are the names, titles and email addresses of the persons designated as the initial contacts of the Borrower for purposes of any invitation the Bank may send to the Borrower regarding ClientNet:
Name |
Title |
E-mail address |
Language - English, Russian, French |
Kabinet |
|
kabinet@javnidug.gov.rs |
English |
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorised representatives, have caused this Agreement to be signed in the English language in four copies
as of the day and year first above written.
THE REPUBLIC OF SERBIA
By: ______________________________
Name: |
Siniša Mali |
Title: |
Deputy Prime Minister and Minister of Finance |
EUROPEAN BANK
FOR RECONSTRUCTION AND DEVELOPMENT
By: ______________________________
Name: |
Susan Goeransson |
Title: |
Director, Head of Infra Europe, SIG |
DESCRIPTION OF THE PROJECT
1. The purpose of the Project is to assist the Borrower with the modernisation and upgrade of a ca. 243.5 km long section of the Corridor X railway infrastructure between Belgrade and Nis.
2. The Project consists of the two parts (each a "Part"), subject to such modifications thereof as the Bank and the Borrower may agree upon from time to time:
Part 1 of the Project:
Reconstruction and modernization of existing railway line and construction of the second track railway of Stalac Djunis Lot 2 Sub-section.
Part 2 of the Project:
Reconstruction and modernization of the following sub-parts (each a "Sub-Part"):
1. Belgrade Center-Velika Plana Subsection
2. Velika Plana- Paracin Subsection
3. Paracin-Medjurovo Subsection
4. Belgrade and Nis railway nodes Subsection
5. Signalling and Telecommunications (for all sub Sections including Stalac-Djunis Lot 1 and 2)
3. The Part 1 of the Project is expected to be completed by 31 March 2028.
4. Each Sub-Part is expected to be completed by date as designated in each Commitment Notice.
5. EBRD, the Co-Financier and WBIF will provide financing for the co-financed contracts on a pro rata basis, unless otherwise agreed in writing by the Bank.
6. If the obligation of the Co-financier to finance a Sub-Part of the Project is suspended for any reason, the Bank shall not be obliged to disburse in relation to the same Sub-Part.
CATEGORIES AND DRAWDOWNS
1. The table below sets forth the categories of items to be financed out of the proceeds of the Loan the allocation of the amounts, and the percentage of expenditures for items to be financed in each category.
2. Notwithstanding the provisions of paragraph 1 above, no drawdown shall be made until the Loan becomes effective.
3. The Bank shall be entitled to draw down on behalf of the Borrower and pay to itself, as and when due, the Front-end Fee.
Category |
Amount of the Loan (EUR) |
% of Expenditures to be financed |
Part 1 of the Project |
59,400,000 |
100% |
(2) Front-end Fee |
600,000 |
100% |
Total Tranche 1 Loan: |
60,000,000 |
|
Part 2 of the Project |
138,600,000 |
100% |
(2) Front-end Fee |
1,400,000 |
100% |
Total Tranche 2 Loan: |
140,000,000 |
|
(3) Works (Velika Plana - Paracin) |
84,150,000 |
100% |
(4) Front-end Fee |
850,000 |
100% |
Total Tranche 3 Loan: |
85,000,000 |
|
(5) Works (Paracin - Medjurovo) |
99,000,000 |
100% |
(6) Front-end Fee |
1,000,000 |
100% |
Total Tranche 4 Loan: |
100,000,000 |
|
(7) Works (Belgrade and Nis railways nodes) |
54,450,000 |
100% |
(8) Front-end Fee |
550,000 |
100% |
Total Tranche 5 Loan: |
55,000,000 |
|
(9) Works (Signalling and Telecommunications contract) |
108,900,000 |
100% |
(10) Front-end Fee |
1,100,000 |
100% |
Total Tranche 6 Loan: |
110,000,000 |
|
Total Uncommitted Loan Tranches: |
490,000,000 |
|