Philippines - Second Grain Processing Project : Loan 1269 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1269 PH LOAN AGREEMENT (Second Grain Processing Project) between REPUBLIC OF THE PHILIPPINES and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated July 2, 1976 LOAN AGREEMENT AGREEMENT, dated July 2, 1976, between REPUBLIC OF THE PHILIP- PINES (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guar- antee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "DBP" means the Development Bank of the Philippines, an agency of the Borrower; (b) "Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and DBP pursuant to Section 3.02 of this Agreement; (c) "sub-loan" means a loan made or proposed to be made by DBP, in carrying out Part A of the Project described in Schedule 1 hereto, to a beneficiary for an Investment Project excluding any loan for working capital, and to be financed in part out of the proceeds of the Loan; -3- (d) "beneficiary" means an individual, private corporation or partnership active in grain milling and trade to which DBP pro- poses to make or has made a sub-loan; (e) "Investment Project" means a specific investment proj- ect, as approved by DBP pursuant to this Loan Agreement and the Subsidiary Loan Agreement, to be carried out by a beneficiary and to be financed in part by means of a sub-loan; (f) "cost of Investment Project" means the cost of acquisi- tion and installation of fixed assets required for an Investment Project but excluding the cost of land and the working capital requirement; and (g) "peso" means the currency of the Borrower. ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or re- ferred to, an amount in various currencies equivalent to eleven million five hundred thousand dollars ($11,500,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account for (a) 56% of the amounts disbursed under sub- loans in respect of reasonable expenditures made by the benefi- ciaries for the carrying out of Investment Projects after the date of this Agreement and (b) 100% of reasonable expenditures, to be agreed with the Bank, not to exceed $300,000, made by the Borrower after the date of this Agreement in carrying out Part B of the Project. Section 2.03. Except as the Bank shall otherwise agree, the goods and civil works to be financed out of the proceeds of the Loan, shall be procured in accordance with the provisions of para- graph C of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1981 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. -5- Section 2.06. The Borrower shall pay interest at the rate of eight and one-half per cent (8-1/2%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semi-annually on March 1 and September 1 in each year. Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 2 to this Agreement. -6- ARTICLE III Execution of the Project Section 3.01. The Borrower shall cause the Project to be car- ried out with due diligence and efficiency and in conformity with sound administrative, agricultural, engineering and financial practices, and shall provide DBP, promptly as needed, the funds, facilities, services and other resources required for the program of credit included in Part A of the Project. Section 3.02. (a) The Borrower shall relend the equivalent of the proceeds of the Loan with respect to Part A of the Project in the currency of the Borrower to DBP under a Subsidiary Loan Agreement to be entered into between the Borrower and DBP, under terms and conditions satisfactory to the Bank that will include those set forth in paragraph A of Schedule 3 hereto. (b) The Borrower shall exercise its rights under the Subsid- iary Loan Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive any provision of the Subsidiary Loan Agreement. (c) The Borrower shall take and shall cause all its agencies to take all action which shall be necessary on their part to en- able DBP to perform all of its obligations under the Subsidiary Loan Agreement and shall not take or permit to be taken any action which might interfere with such performance. -7- Section 3.03. The Borrower shall cause DBP: (a) to make sub-loans on terms and conditions satisfactory to the Bank and, except as the Bank shall otherwise agree, in ac- cordance with the Operating Policies and Procedures set forth in paragraph B of Schedule 3 hereto, as such Schedule may be amended from time to time by agreement between the Bank and the Borrower, represented for these purposes by DBP, and to exercise its rights under the agreements providing for sub-loans so as to achieve the purposes of Part A of the Project and enable the Borrower to comply with its obligations under this Agreement; (b) to establish and maintain a separate account to be used exclusively for Part A of the Project; and (c) to record in such account all receipts and payments for or in connection with Part A of the Project, in accordance with sound accounting principles consistently applied, including the following: (i) amounts received from and payments made to the Borrower under the Subsidiary Loan Agreement; (ii) amounts disbursed and received on account of sub-loans; and (iii) amounts paid to, and received from, beneficiaries under the working capital loans referred to in Secti-n ,.)4 of this Agreement. - 8 - Section 3.04. Except as the Bank shall otherwise agree, if any beneficiary cannot otherwise obtain sufficient working capi- tal required for the Investment Project, the Borrower shall cause DBP out of DBP's own resources to make a working capital loan to the beneficiary on terms and conditions not less favorable than those of DBP's lending operations for working capital under simi- lar conditions. Section 3.05. The facilities included in Part A of the Project shall be constructed to design standards acceptable to the Bank. The Borrower shall cause to be furnished to the Bank, promptly upon their preparation, the plans, specifications, and work and procurement schedules for said Part of the Project when the re- spective Investment Project is financed with a sub-loan or, if a working capital loan is made by DBP, with a sub-loan and a working capital loan, of $300,000 equivalent in the aggregate or more, or in any other case the Bank shall so request, and any material modifications thereof or additions thereto, in such detail as the Bank shall reasonably request. Section 3.06. (a) The Borrower shall cause DBP to cause the beneficiaries to insure, or make adequate provision for the in- surance of, the imported goods to be financed out of the proceeds of the Loan with respect to Part A of the Project against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indennity shall be payable in a currency freely usable by the beneficiary to replace or repair such goods. -9- (b) Except as the Bank shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Loan to be used exclusively for the Project. Section 3.07. The Borrower shall cause DBP: (i) to maintain records adequate to reflect the progress and cost of Part A of the Project and to identify the goods, works and services financed out of the proceeds of the Loan with respect to said Part of the Proj- ect, and to disclose the use thereof in said Part of the Project; (ii) to enable the Bank's accredited representatives to visit the facilities and construction sites included in Part A of the Project and to examine the goods financed out of the proceeds of the Loan with respect to Part A of the Project and any relevant records and documents; and (iii) to furnish to the Bank all such information as the Bank shall reasonably request concerning Part A of the Project, the account referred to in Section 3.03 (b) hereof, the expenditure of proceeds of the Loan with respect to Part A of the Project and the goods, works and services financed out of such proceeds. Section 3.08. The Borrower shall cause DBP to obtain from the beneficiaries semi-annual reports showing, on a monthly basis, the utilization of their milling, storage, ad drying facilities. Section 3.09. The Borrower shall (a) cause an analysis project with respect to post-harvest grain losses to be carried out and administered by the Secretary of Agriculture pursuant to terms of reference agreed between the Borrower and the Bank; (b) within six months after the date of this Agreement, furnish or cause to be furnished to the Bank the proposed terms of reference; and (c) sub- mit the findings of such project to the Bank promptly upon comple- tion. - 10 - ARTICLE IV Other Covenants Section 4.01. (a) It is the mutual intention of the Borrower and the Bank that no other external debt shall enjoy any priority over the Loan by way of a lien on governmental assets. (b) To that end the Borrower: (i) represents that at the date of this Agreement no lien exists on any governmental assets as security for any external debt except as otherwise disclosed in writing by the Borrower to the Bank; and (ii) undertakes that, except as the Bank shall otherwise agree, if any such lien shall be created, it will ipso facto equally and ratably, and at no cost to the Bank, secure the payment of the principal of, and in- terest and other charges on, the Loan and in the creation of any such lien express provision will be made to that effect. The Bor- rower shall promptly inform the Bank of the creation of any such lien. (c) The foregoing representation and undertaking shall not apply to: (i) any lien created on property, at the time of pur- chase thereof, solely as security for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. As used in this Section, the term "governmental assets" means assets of the Borrower or of any agency of the Borrower in- cluding the Central Bank of the Philippines or any institution performing the functions of a central bank for the Borrower. - 11 - (d) The Borrower further undertakes that, within the limits of the laws in force in its territories, it will make the fore- going undertaking effective with respect to liens on the assets of its political subdivisions and their agencies, and to the ex- tent that the Borrower is unable within the limits of the laws in force in its territories to make this undertaking effective, the Borrower will give to the Bank an equivalent lien satisfactory to the Bank. Section 4.02. The Borrower shall cause DBP to maintain rec- ords adequate to reflect in accordance with consistently maintained sound accounting practices the operations and financial condition of DBP. Section 4.03. The Borrower shall cause DBP to: (i) have its accounts and financial statements (balance sheets, statements of income and expenses and related statements for each fiscal year) audited, in accordance with sound auditing principles consistently applied, by the Commission on Audit of the Borrower; (ii) furnish to the Bank as soon as available, but in any case not later than three months after the end of each such year, (A) certified copies of its financial statements for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) fur- nish to the Bank such other information concerning the accounts and financial statements of DBP and the audit thereof as the Bank shall from time to time reasonably request. - 12 - Section 4.04. The Borrower shall cause DBP to cause the bene- ficiaries to operate and maintain the facilities included in their Investment Projects in accordance with sound agricultural, engi- neering and financial practices. Section 4.05. The Borrower shall require DBP to cause the beneficiaries to take out and maintain with responsible insurers, or to make other provisions satisfactory to the Bank for, insurance against such risks and in such amounts as shall be consistent with sound practice. Section 4.06. The Borrower shall cause DBP (i) to use its best efforts to reduce substantially the amount of principal and interest in arrears on all the outstanding loans made by DBP to the grain processing and trading industry, (ii) to undertake and complete a portfolio review program of such loans and prepare a detailed plan of action for discussion with the Bank not later than June 30, 1977, (iii) to implement such plan of action according to a timetable to be agreed with the Bank, and (iv) to include such information on its arrears as shall be agreed with the Bank in DBP's quarterly reports to the Bank. - 13 - ARTICLE V Effective Date; Termination Section 5.01. The following event is specified as an addi- tional condition to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely, that the execution and delivery of the Subsidiary Loan Agreement on behalf of the parties thereto have been duly authorized or rati- fied by all necessary governmental and corporate action. Section 5.02. The following is specified as an additional matter, within the meaning of Section 12.02 (c) of the General Conditions, to be included in the opinion or opinions to be fur- nished to the Bank, namely, that the Subsidiary Loan Agreement has been duly authorized or ratified by, and executed and deliv- ered on behalf of, the Borrower and DBP, and is legally binding upon the parties thereto in accordance with its terms. Section 5.03. The date October 4, 1976, is hereby specified for the purposes of Section 12.04 of the General Conditions. - 1j4 - ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Secretary of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Secretary of Finance Department of Finance Manila, Philippines Cable address: SECFINANCE Manila For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INTBAFRAD Washington, D.C. - 15 - IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF THE PHILIPPINES By /s/ Mario Belisario Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Bernard R. Bell Regional Vice President East Asia and Pacific - 16 - SCHEDULE 1 Description of the Project The Project is part of the Borrower's program to modernize and enlarge its grain processing industry. Part A: This part consists of the construction, expansion, rehabilitation, modernization and equipment of rice and corn pro- cessing facilities to be owned and operated by private corporations and entrepreneurs active in grain processing and trade, L,inanced by means of a program of credit administered by the Development Bank of the Philippines. Such facilities shall consist of: (a) equipment and facilities for rice and corn milling and corn feed manufacture; (b) warehouses and bulk storages; (c) mill operated grain driers; (d) trucks and barges to be operated by bona fide operators of grain processing and storage facilities; and (e) ancillary equipment. Part B: This part consists of a post-harvest grain losses analysis project to be administered by the Secretary of Agriculture. - 17 - SCHEDULE 2 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* September 1, 1981 250,000 March 1, 1982 260,000 September 1, 1982 270,000 March 1, 1983 285,000 September 1, 1983 295,000 March 1, 1984 310,000 September 1, 1984 320,000 March 1, 1985 335,000 September 1, 1985 350,000 March 1, 1986 365,000 September 1, 1986 380,000 March 1, 1987 395,000 September 1, 1987 415,000 March 1, 1988 430-,000 September 1, 1988 450,000 March 1, 1989 470,000 September 1, 1989 490,000 March 1, 1990 510,000 September 1, 1990 530,000 March 1, 1991 550,000 September 1, 1991 575,000 March 1, 1992 600,000 September 1, 1992 625,000 March 1, 1993 650,000 September 1, 1993 68o,ooo March 1, 1994 710,000 * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equiva- lents determined as for purposes of withdrawal. - 18 - Premiums on Prepayment The following percentages are specified as the premiums pay- able on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years 1-1/4% before maturity More than three years but not 2-1/2% mcre than six years before maturity More then six years but not 4-1/2% more than eleven years before maturity More than eleven years but not 6-3/4% more than fourteen years before maturity More than fourteen years but not 7-1/2% more than sixteen years before maturity More than sixteen years 8-1/2% before maturity - 19 - SCHEDULE 3 Operating Policies and Procedures A. Subsidiary Loan Agreement Repayment: 18 years, including 5 years of grace. Rate of interest: 8-1/2% per annum on outstanding amounts. Exchange risk: the Borrower shall bear it. B. Lending Program 1. Sub-loan Applications 1.1 Sub-loan applications shall be filed with DBP's branch nearest to the location proposed for the Investment Project, or with DBP's headquarters. 1.2 The applications shall be sent to DBP's Grain Processing Division for analysis and investigation. They shall include, among other things, sufficient information and, if applicable, the comments of the branch with regard to: (a) the applicant's past experience in grain milling and trading; - 20 - (b) the status and size of his existing processing and storage facilities and operations and to whether the facilities for which financing is sought will be replacement or additional facilities; (c) a detailed list of goods and services to be procured for the investment project including functional specification; (d) the amount of the sub-loan applied for; (e) the collateral security offered; (f) the working capital required for the invest- ment Project and how the applicant proposes to finance such working capital; and (g) the stage of planning or iTmlementation of the proposed Investment Project. 2. Review of Sub-loan Applications 2.1 All applications shall be reviewed by the Grain Processing Division with regard to: (a) prior grain processing and trading experience of the applicant; (b) managerial and technical competence of the applicant; - 21 - (c) credit standing of the applicant; and (d) the need for the facilities in the area to be serviced. 3.Feasibility Studies 3.1 Applications which are accepted by the Grain Pro- cessing Division on the basis of paragraph 2.1 above and for which a sub-loan equivalent to $20,000 or more is sought, will be subject to feasibility studies. 3.2 Among other things, such feasibility studies shall: (a) ascertain whether the sites proposed by applicants are satisfactory in terms of transport facilities, utilities, paddy or corn supply sources, flood protection and sub-soil features; (b) check whether the total plant of the applicant as set up or expanded by the Investment Project would be technically sound; (c) estimate the cash flow, debt equity ratio, debt service coverage, financial and economic return and working capital requirements of the Investment Project; - 22 - (d) review technical staff requirements; and (e) propose technical modifications and amendments arising from the study as well as recommenda- tions for training of managerial, supervisory and operating personnel. 3.3 Each feasibility study for an Investment Project to be financed with a sub-loan of $200,000 equivalent or more shall be promptly submitted to the Bank for comment. 4. Sub-loan Approval 4.1 Sub-loan approval shall be the responsibility of the Board of Governors of DBP acting on the recommendation of the Grain Processing Division. 4.2 No Investment Project shall be approved without prior Bank consent if, by itself or together with any outstanding amount of any (i) other sub-loan or (ii) loan made by DBP and financed out of the proceeds of the loan made by the Bank to the Borrower pursuant to the Loan Agreement (Rice Processing and Storage Project) dated February 4, 1971 as amended by Agree- ment Amending Loan Agreement dated May 14, 1974, between them or (iii) loan for working capital made to the same beneficiary, it shall exceed $600,000 equivalent. - 23 - 4.3 No sub-loan in an amount of $4,000 equivalent or below shall be approved. 5. Amount, Terms and Conditions of Sub-loans 5.1 Each sub-loan shall be in an amount not exceeding 80% of the cost of the Investment Project, and each beneficiary shall contribute, in cash, not less than 20% of such cost. 5.2 DBP shall, in making sub-loans, utilize the form of sub-loan agreement agreed upon with the Bank. The sub-loan agreement shall provide, among other things, for the following: (a) An interest rate of twelve per cent (12%) a year on the aAount withdrawn and outstanding on sub- loans secured by land, and of fourteen per cent (14%) on all sub-loans not secured by land; penal interest at the rate of two per cent (2%) per month, on any amount in arrears of 90 days or more, provided that from June 30, 1977 such rate shall be three per cent (3%) per month; (b) a term of up to 14 years, counted from the date of first disbursement, including a grace period not exceeding two years; (c) that the beneficiary shall not bear any foreign exchange risk; - 24 - (d) that all procurement of goods and services financed by the sub-loans be made pursuant to the procedures set forth in paragraph C of this Schedule; (e) that the proceeds of the sub-loans be used exclusively in the carrying out of the Invest- ment Project; (f) that authorized representatives of DBP, the Borrower and the Bank shall have the right to inspect the facilities included in the Invest- meht Project, the operations thereof and any relevant records and documents, and that the beneficiary shall provide DBP such information thereon as DBP shall reasonably request; (g) a covenant empowering DBP to act as agent for the be,.eficiary with respect to procurement up to a specified maximum sum; (h) that beneficiaries of sub-loans exceeding three million pesos shall pay to DBP a fee, not to exceed 2% per annum on the principal amount of the sub-loan outstanding from time to time, to defray DBP's cost of appraising and supervising the sub-loan; and - 25 - (i) that the beneficiary shall maintain records adequate to reflect in accordance with con- sistently maintained sound accounting prac- tices the operations and financial condition of its Investment Project, and that, if DBP shall so request, they shall cause indepen- dent auditors acceptable to DBP, or DBP's representatives, to audit such accounts. C. Procurement 1. International Competitive Bidding 1.1 Except as provided in paragraphs 2.1, 2.2 and 2.3 of this part C, civil works shall be procured under contracts to be awarded in accordance with proce- dures consistent with those set forth in Part A of the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in August 1975 (hereinafter called the Guidelines), on tne basis of international competitive bidding. 1.2 Bidders for the civil works referred to in the pre- ceding paragraph may be required to prequalify as described in paragraph 1.3 of Part A of the Guidelines. Adequate advertisements therefor shall be placed in at least one English language newspaper of general circulation in Manila in sufficient time - 26 - to enable contractors to participate in the pre- qualification procedure, and further opportunities to prequalify shall be offered every 18 months or more often. 2. Other Procurement Procedures 2.1 Civil works estimated to cost $100,000 equivalent or more but less than $200,000 equivalent may be carried out under contracts awarded on the basis of competitive bidding advertised locally and in accordance with procedures acceptable to the Bank. 2.2 Civil works estimated to cost less than $100,000 equivalent may be carried out under contracts let through normal commercial channels, with due regard to economy and efficiency. 2.3 Equipment: (a) The Borrower shall cause DBP to place advertise- ments, in accordance with paragraph 1.2 of Part A of the Guidelines, inviting suppliers of the equipment to be financed out of the proceeds of sub-loans to indicate to DBP their capabilities and interest in supplying such goods. Such advertisements shall be repeated every 12 months or more often. - 27 - (b) Equipment estimated to cost less than $20,000 equivalent shall be procured through normal commercial channels, at a reasonable price, account being taken also of other relevant factors such as timing of delivery and effi- ciency, and their reliability and availability of maintenance facilities and spare parts therefor. (c) Equipment estimated to cost $20,000 or more shall be procured after obtaining not less than three quotations from the list of qualified and interested suppliers prepared by DBP in accor- dance with the provisions of paragraph (a) hereof. The beneficiarie3 will select the suppliers from whom they will request quotations after having had access to the entire list. A con- tract may be placed with a supplier who has not given the lowest quotation, or who is not on said list, only if there are reasonable grounds to do so. Record of such selection and of the grounds thereof shall be kept by DBP. (d) Equipment estimated to cost $100,000 or more shall be procured as provided in paragraph (c) hereof, E ept that the beneficiaries shall first agree with DBP on the required design criteria and performance specifications. - 28 - 3. Review of Procurement Decisions by the Bank 3.1 Review of prequalification for civil works. The Borrower shall, before qualification is invited for civil works, cause the Bank to be informed in detail of the procedure to be followed and shall introduce such modifications in said procedure as the Bank shall reasonably request. The list of prequalified bidders, together with a statement of their qualifications and of the reasons for the exclusion of any applicant for prequalification shall be furnished to the Bank for its comments before the applicants are notified, and there shall be made such additions to, deletions from, or modifications in, the said list as the Bank shall reasonably request. 3.2 Review of invitation to bid and of proposed awards and final contracts awarded under paragraph 1.1 hereof: (a) Before bids are invited, there shall be fur- nished to the Bank, for its comments, the text of the invitations to bid and the specifica- tions and other bidding documents, together with a description of the advertising proce- dures to be followed for the bidding, and there shall be made such modifications in the said - 29 - documents or procedures as the Bank shall rea- sonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospec- tive bidders. (b) After bids have been received and evaluated, and before a final decision on the award is made, the Bank shall be informed of the name of the bidder to which it is intended to award the contract and there shall be furnished to the Bank, in sufficient time for its review, a detailed report on the evaluation and compar- ison of the bids received, and such other information as the Bank shall reasonably re- quest. The Bank shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Bank's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Bank promptly after its execution and prior to the submission to the - 30 - Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 3.3 With respect to each contract to be financed out of the proceeds of the Loan and not governed by the preceding paragraph, there shall be furnished to the Bank, upon its request, two conformed copies of such contract, together with such other information as the Bank shall reasonably request. The Bank shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. 3.4 In addition to the provisions of paragraph 3.3 above, with respect to procurement of equipment estimated to cost the equivalent of $100,000 or more, the Borrower shall cause DBP to furnish to the Bank a copy of the invitation to bid, the list of bids submitted together with a detailed report and the evaluation and comparison of bids received.