Burundi - Population And Health Project : Credit 1862 - Credit Agreement - Conformed

OFFCAL CREDIT NUMBER 1862 BU Development Credit Agreement (Population and Health Project) between REPUBLIC OF BURUNDI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated , 1988 CREDIT NUMBER 1862 BU DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1988, between REPUBLIC OF BURUNDI (the "Borrower") aKd INTERNATIONAL DEVELOPMENT ASSOCIATION (the "Association"). WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; (B) the Borrower intends to seek additional funds from other donors to assist in financing the Project; and WHEREAS the Association has agreed, on the basis, inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Develop- ment Credit Agreements" of the Association, dated January 1, 1985, with the last sentence of Section 3.02 deleted (the "General Conditions") constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions have the respec- tive meanings therein set forth and the following additional terms have the following meanings: (a) "BIP" means Bureau de l'Inspection et de la Planifica- tion, the Bureau of Inspection and Planning of the Borrower's Ministry of Health, responsible, inter alia, of planning, monitor- ing and evaluating the execution of Parts A through E of the Project; (b) "Department of Population" means the Department of the Borrower's Ministry of Interior responsible, inter alia, of planning, monitoring and evaluating Part F of the Project; (c) "Inspector General of Health" means the head of BIP, filling, inter alia, the position of Project Coordinator; -2- (d) "MI" means the Borrower's Ministry of Interior; (e) "MOH" means the Borrower's Ministry of Health; (f) "Project Account" means the account referred to in Section 3.01 (d) (i) of this Agreement; (g) "Project Preparation Advance" means the aggregate of the advances granted by the Association to the Borrower pursuant to exchanges of letters dated July 4, 1985 and October 22, 1985; and May 25, 1987 and June 25, 1987, respectively, between the Borrower and the Association; (h) "SDEPS" means Sous Direction de 1'Education pour la Sant6, the Health Education Division of MOH; and (i) "Special Accounts" means the accounts referred to in Section 2.02 (b) of this Agreement. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Devel- opment Credit Agreement, an amount in various currencies equiva- lent to eleven million Special Drawing Rights (SDR 11,000,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement for expenditures made (or, if the Association shall so agree, to be made) in respect of the reason- able cost of goods and services required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit. (b) The Borrower shall open and maintain in Dollars in the Bank of the Republic of Burundi on terms and conditions satisfac- tory to the Association: (i) a special account (hereinafter referred to as "Special Account A") for the purposes of Parts A through E of the Project; and (ii) a special account (hereinafter referred to as "Special Account B") for the purposes of Part F of the Project. Deposits into, and payments out of, the Special Accounts shall be made in accordance with the provisions of Schedule 4 to this Agreement. -3- (c) Promptly after the Effective Date, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and pay to itself the amount required to repay the principal amount of the Project Preparation Advance withdrawn and outstand- ing as of such date and to pay all unpaid charges thereon. The unwithdrawn balance of the authorized amount of the Project Prep- aration Advance shall thereupon be cancelled. Section 2.03. The Closing Date shall be June 30, 1993, or such later date as the Association shall establish. The Associa- tion shall promptly notify the Borrower of such later date. Section 2.04. (a) The Borrower shall pay to the Association a commitment charge at the rate of one-half of one percent (1/2 of 1%) per annum on the principal amount of the Credit not withdrawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Development Credit Agreement to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without restric- tions of any kind imposed by, nr in the territory of, the Bor- rower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one percent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Commitment charges and service charges shall be payable semiannually on May 15 and November 15 in each year. Section 2.07. (a) Subject to paragraphs (b) and (c) below, the Borrower shall repay the principal amount of the Credit in semiannual installments payable on each May 15 and November 15, commencing May 15, 1998 and ending November 15, 2027. Each installment to and including the installment payable on Novem- ber 15, 2007 shall be one percent (1%) of such principal amount, and each installment thereafter shall be two percent (2%) of such principal amount. (b) Whenever: (i) the Borrower's gross national product per capita, as determined by the Association, shall have exceeded $790 in constant 1985 dollars for five consecutive years, and (ii) the Bank shall consider the Borrower creditworthy for Bank lending, the Association may, subsequent to the review and approval thereof by the Executive Directors of the Association and after due con- sideration by them of the development of the Borrower's economy, modify the terms of repayment of installments under paragraph (a) above by requiring the Borrower to repay twice the amount of each such installment not yet due until the principal amount of the Credit shall have been repaid. If so requested by the Borrower, the Association may revise such modification to include, in lieu of some or all of the increase in the amounts of such install- ments, the payment of interest at an annual rate agreed with the Association on the principal amount of the Credit withdrawn and outstanding from time to time, provided that, in the judgment of the Association, such revision shall not change the grant element obtained under the above-mentioned repayment modification. (c) If, at any time after a modification of terms pursuant to paragraph (b) above, the Association determines that the Bor- rower's economic condition has deteriorated significantly, the Association may, if so requested by the Borrower, further modify the terms of repayment to conform to the schedule of installments as provided in paragraph (a) above. Section 2.08. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out the Project through MOH and MI and under the overall responsibility of BIP and of the Department of Population with due diligence and efficiency and in conformity with appropriate administrative, financial, economic and public health practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower and the Association shall from time to time exchange views on the progress achieved in carrying out the Project. Such exchange of views shall take place: (i) for the first time not later than October 31, 1988; (ii) not later than October 31 of each year thereafter before completion of the -5- Project; and (iii) at such other times as the Association shall reasonably request. (c) Prior to any such exchange of views the Borrower shall furnish to the Association: (i) a project performance review, including project management, for the preceding year of Project implementation, carried out under terms of reference satisfactory to the Association; (ii) a project implementation plan for the following year of Project implementation in such detail as the Association shall reasonably request; and (iii) the revised three year rolling Program of Investments and Public Expenditures of the Borrower for the health sector. (d) Without limitation to the generality of the provisions of paragraph (a) above with regard to the provision of funds, the Borrower shall: (i) open, and thereafter maintain, in the Borrower's currency and in the name of MOH-Health and Popula- tion Project, an account in the Bank of the Republic of Burundi on terms and conditions satisfactory to the Association; (ii) deposit into such Project Account an initial amount equivalent to $30,000; and (iii) thereafter deposit into the Project Account, not later than January 31, April 30, July 31 and October 31 during Project implementation, amounts equivalent to the financial requirements of the Project as assessed for the next three months in the project implementation plan referred to in paragraph (c) (ii) of this Section. (e) Amounts deposited in the Project Account pursuant to paragraphs (d) (ii) and (iii) above shall be used only to make payments to meet local expenditures made or to be made in respect of the reasonable cost of goods and services for the Project and not eligible for financing under the Credit. -6- Section 3.02. In order to carry out Part A of the Project, the Borrower shall: (a) not later than June 30, 1988, acquire all sites not already owned by the Borrower for the health centers to be rehabilitated under such Part of the Project; and (b) recruit not less than four additional nurses for each of the health centers mentioned under (a). Section 3.03. In order to carry out Part B of the Project, the Borrower shall, not later than August 31, 1988, appoint a man- ager of SDEPS and two advisors whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. Section 3.04. In order to carry out Part C of the Project, the Borrower shall: (a) prepare a five-year National AIDS Control Program; (b) not later than March 31, 1988, submit such Program to the Association; and (c) on the occasion of the exchanges of views provided for in Section 3.01 (b) of this Agreement, submit to the Association annual updates of such Program. Section 3.05. In order to carry out Part D of the Project, the Borrower shall appoint eleven multidisciplinary health super- visors in each of its provinces in addition to the ones already appointed in the provinces of Bujumbura, Ngozi, Bururi and Gitega, according to the following schedule: (i) three not later than December 31, 1988; (ii) three not later than December 31, 1989; and (iii) five not later than December 31, 1990. Section 3.06. In order to carry out Part E of the Project, the Borrower shall: (a) prepare a policy paper on health financing policy development; and (b) not later than December 31, 1988, furnish to the Association the recommendations (including a plan of action) contained therein. Section 3.07. In order to carry out Part F of the Project, the Borrower shall: (a) prepare a Census Master Plan for the programming of the Borrower's activities relating to the 1989 Census Project; (b) not later than March 31, 1988, submit such Master Plan to the Association; (c) on the occasion of the exchanges of views provided for in Section 3.01 (b) of this Agree- ment, submit to the Association progress reports on the Borrower's activities relating to the 1989 Census Project in such form and detail as the Association may reasonably request; (d) prepare a Plan of Action for the improvement of national demographic and vital statistics; and (e) tot later than January 31, 1990, submit such Plan of Action to tb3 Association. - 7 - Section 3.08. The Borrower shall appoint, not later than December 31, 1988, a full time deputy project coordinator to assist the Inspector General of Health. Section 3.09. Except as the Association shall otherwise agree, procurement of the goods, works and consultants' services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to this Agreement. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of the departments or agen- cies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower shall: (i) have the records and accounts referred to in para- graph (a) of this Section, including those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association, as soon as available, but in any case not later than six months after the end of each such year, a certified copy of the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning said records, accounts and the audit thereof as the Association shall, from time to time, reasonably request. (c) For all expenditures with respect to which withdrawals from the Credit Account were made on the basis of statements of expenditure, the Borrower shall: - 8 - (i) maintain, or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the comple- tion of the audit for the fiscal year in which the last withdrawal from the Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association's representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the proce- dures and internal controls involved in their prep- aration, can be relied upon to support the related withdrawals. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the Borrower has employed, in accordance with the provi- sions of Section II of Schedule 3 to this Agreement, the following consultants and experts: (i) a technical assistant in health plan- ning to support BIP for at least the first two years of Project implementation; (ii) a technical assistant in health architecture to support BIP for at least the first three years of Project implementation; and (iii) a certified public accountant to assist the Budget Division of the MOH in the Project related accounting; and (b) the Borrower has opened the Project Account and depo- sited the initial amount referred to in Section 3.01 (d) (ii). - 9 - Section 5.02. The date one hundred and twenty (120) days after the date of this Agreement is hereby specified for the pur- poses of Section 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of the Borrower at the time responsible for Health 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: Minist6re de la Sant6 Publique B.P. 1820 Bujumbura Rdpublique du Burundi Cable address: Telex: MINISANTE 5131 MINISANTE BDI Bujumbura For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) - 10 - IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement 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 BURUNDI By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION BY pCIRegional Vice President, A' Africa - 11 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1, The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Lxpenditures Category SDR Equivalent) to be Financed (1) Civil Works: 4,690,000 100% Construction and Rehabilitation (2) Furniture, Equip- 1,570,000 100% of foreign ment, Teaching expenditures and Materials, Vehi- 80% of local cles and Supplies expenditures (3) Training, Consul- 790,000 100% tants' and Experts' Services (4) Goods and Services 1,400,000 100% of foreign for AIDS control expenditures and activities 80% of local expenditures (5) Operating Costs 550,000 50% (6) Personnel 790,000 100% for Census Activities - 12 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (7) Refunding of PPF 610,000 Amount due pur- suant to section 2.02 (c) of this Agreement (8) Unallocated 600,000 (Categories 1 to 5) TOTAL 11,000.000 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower. 3. Notwithstanding the provisions of paragraph 1 above, no with- drawals shall be made in respect of payments made for expendi- tures: (a) prior to the date of this Agreement; (b) under Category 4 of paragraph 1 above until the National AIDS Control Plan referred to in Section 3.04 (a) of this Agree- ment has been submitted and is satisfactory to the Association; and (c) under Category 6 of paragraph 1 above until the Census Master Plan referred to in Section 3.07 (a) of this Agreement has been submitted and is satisfactory to the Association. - 13 - SCHEDULE 2 Description of the Project The objectives of the Project are: (i) to contribute to the reduction of maternal and child morbidity and mortality; (ii) to promote birth spacing and strengthen the National Maternal and Child Health and Family Planning Program; (iii) to assist in controlling the AIDS epidemic; (iv) to improve the overall effectiveness and efficiency of the health system; and (v) to improve the demographic data base needed for socio-economic planning. The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Strengthening of maternal and child health services and of family planning services in all health facilities in the Borrower's territory. Part B: Establishment of population and health information, education and communication programs. Part C: Support to the National AIDS Control Program. Part D: Strengthening of the planning and management capabili- ties of MOH at the central, provincial and field levels. Part E: Development of new financing mechanisms for improvement of resource allocation for the health sector. Part F: Support to the 1989 Census of Population and dissemina- tion of its results. T * i The Project is expected to be completed by December 31, 1992. - 14 - SCHEDULE 3 Procurement and Consultants' Services Section I. Procurement of Goods and Works Part A: International Competitive Bidding 1. Except as provided in Part D hereof, goods and works shall be procured under contracts awarded in accordance with procedures consistent with those set forth in Sections I and II of the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the Bank in May 1985 (the "Guidelines"). 2. To the extent practicable, contracts for furniture shall be grouped in bid packages estimated to cost the equivalent of $20,000 or more each. Part B: Preference for Domestic Manufacturers In the procurement of goods in accordance with the procedures described in Part A.1 hereof, goods manufactured in the Borrower's territory may be granted a margin of preference in accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the Guidelines and paragraphs 1 through 4 of Appendix 2 thereto. Part C: Preference for Domestic Contractors In the procurement of works in accordance with the procedures described in Part A.1 hereof, the Borrower may grant a margin of preference to domestic contractors in accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the Guidelines and paragraph 5 of Appendix 2 thereto. Part D: Other Procurement Procedures 1. Contracts for the construction of health centers and regional maintenance centers may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with the Borrower's applicable procedures and paragraph 3.3 of the Guidelines. 2. Furniture which cannot be grouped in bid packages of more than the equivalent of $20,000, but totalling less than $50,000, - 15 - may be procured under contracts awarded on the basis of competi- tive bidding, advertised locally, in accordance with the Bor- rower's applicable procedures and paragraph 3.3 of the Guidelines. 3. Vehicles may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers from at least three different countries eligible under the Guidelines, in accordance with procedures acceptable to the Association. 4. Items which cannot be grouped, or groups of items, estimated to cost less than the equivalent of $10,000 per contract, up to an aggregate amount not to exceed the equivalent of $100,000, may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with paragraph 3.4 of the Guidelines. Part E: Review by the Association of Procurement Decisions 1. Review of invitations to bid and of proposed awards and final contracts: (a) With respect to each contract for civil works estimated to cost the equivalent of $200,000 or more and to each contract for goods estimated to cost the equivalent of $50,000 or more, the procedures set forth in paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of any of the Special Accounts, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Association pursuant to said paragraph 2 (d) shall be furnished to the Association prior to the making of the first payment out of the Special Account in respect of such contract. (b) With respect to each contract not governed by the pre- ceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of any of the Special Accounts, such procedures shall be modified to ensure that the two conformed copies of the contract together with the other information required to be furnished to the Association pursuant to said para- graph 3 shall be furnished to the Association as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 4 to this Agreement. - 16 - (c) The provisions of the preceding subparagraphs (a) and (b) shall not apply to contracts on account of which the Asso- ciation has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Such contracts shall be re- tained in accordance with Section 4.01 (c) (ii) of this Agreement. 2. The figure of 15% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. Section II. Employment of Consultants and Experts In order to assist the Borrower in carrying out the Project, the Borrower shall employ consultants and experts whose qualifica- tions, experience and terms and conditions of employment shall be satisfactory to the Association. Such consultants and experts shall be selected in accordance with principles and procedures satisfactory to the Association on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the Bank in August 1981. - 17 - SCHEDULE 4 Special Accounts 1. For the purposes of this Schedule: (a) the term "eligible Categories" means: (i) in the case of Special Account A, Categories (1) to (5) set forth in the table in paragraph 1 of Schedule 1 to this Agreement; and (ii) in the case of Special Account B Category (6) set forth in said table; (b) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit allocated from time to time to the eligible Categories in accord- ance with the provisions of Schedule 1 to this Agreement; and (c) the term "Authorized Allocation" means an amount to be withdrawn from the Credit Account and deposited into each of the Special Accounts pursuant to paragraph 3 (a) of this Schedule, equivalent, in the case of Special Accoun A, to $600,000 and in the case of Special Account B, to $150,000. 2. Except as the Association shall otherwise agree, payments out of a Special Account shall be made exclusively for eligible expenditures in accordance with the provisions of this Schedule. 3. After the Association has received evidence satisfactory to it that a Special Account has been duly opened, withdrawals of the corresponding Authorized Allocation and subsequent withdrawals to replenish such Special Account may be made as follows: (a) On the basis of a request or requests by the Borrower for a deposit or deposits which add up to the aggregate amount of the Authorized Allocation concerned, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into such Special Account such amount or amounts as the Borrower shall have requested. (b) The Borrower shall furnish to the Association requests for replenishment of such Special Account at such intervals or in such minimum amounts as the Association shall specify. On the basis of such requests, the Association shall withdraw from the Credit Account and deposit into such Special Account such amounts as shall be required to replenish it with amounts not exceeding the amount of payments made out of such Special Account for eligi- ble expenditures. All such deposits shall be withdrawn by the - 18 - Association from the Credit Account under the respective eligible Categories, and in the respective equivalent amounts, as shall have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph 4 of this Schedule. 4. For each payment made by the Borrower out of any Special Account for which the Borrower requests replenishment pursuant to paragraph 3 (b) of this Schedule, the Borrower shall furnish to the Association, prior to or at the time of request for replenishment or upon request of the Association, such documents and other evidence as the Association shall reasonably request, showing that such payment was made for eligible expenditures. 5. (a) Notwithstanding the provisions of paragraph 3 of this Schedule, no further deposit into any Special Account shall be made by the Association when either of the following situations first arises: (i) the Association shall have determined that all further withdrawals should be made by the Borrower directly from the Credit Account in accordance with the provisions of Article V of the General Conditions and paragraph (a) of Section 2.02 of this Agreement; or (ii) the total unwithdrawn amount of the Credit allo- cated to the eligible Categories, minus the amount of any outstanding special commitment entered into by the Association pursuant to Section 5.02 of the General Conditions with respect to the Project, shall be equal to the equivalent of twice the amount of the Authorized Allocation. (b) Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to the eligi- ble Categories shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in any Special Account as of the date of such notice will be utilized in making payments for eligible expenditures. 6. (a) If the Association shall have determined at any time that any payment out of a Special Account: (i) was made for any expenditure or in any amount not eligible pursuant to paragraph 2 of this Schedule; or (ii) was not justified by the evidence furn- ished pursuant to paragraph 4 of this Schedule, the Borrower - 19 - shall, promptly upon notice from the Association deposit into such Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment or the portion thereof not so eligible or justified. No further deposit by the Association into any Special Account shall be made until the Borrower has made such deposit or refund. (b) If the Association shall have determined at any time that any amount outstanding in a Special Account will not be required to cover further payments for eligible expenditures, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount for crediting to the Credit Account.