Conformed Copy - L4324 - Kiev District Heating Improvement Project - Project Agreement

Page 1 CONFORMED COPY LOAN NUMBER 4324 UA Project Agreement (Kiev District Heating Improvement Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and KIEVENERGO Dated October 14, 1998 LOAN NUMBER 4324 UA PROJECT AGREEMENT AGREEMENT, dated October 14, 1998, between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) and KIEVENERGO (Kievenergo). WHEREAS (A) by the Loan Agreement of even date herewith between Ukraine (the Borrower) and the Bank, the Bank has agreed to make available to the Borrower an amount equal to two hundred million Dollars ($200,000,000) on the terms and conditions set forth in the Loan Agreement, but only on condition that Kievenergo agree to undertake such obligations toward the Bank as are set forth in this Agreement; (B) by a subsidiary loan agreement to be entered into between the Borrower and Kievenergo the proceeds of the loan provided for under the Loan Agreement for Parts A, C.2 and C.4 of the Project will be made available to Kievenergo on the terms and conditions set forth in said Subsidiary Loan Agreement; and WHEREAS Kievenergo, in consideration of the Bank