Philippines - Third Highway Project : Loan 1353 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1353 PH LOAN AGREEMENT (Third Highway Project) between REPUBLIC OF THE PHILIPPINES and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated January 12, 1977 ........S LOAN AGREEMENT AGREEMNT, dated January 12, 1977, between REPUBLIC OF THE PHILIPPINES (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). . * 2- 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 term "DPH" means the Borrower's Department of Public High- ways. -3- 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 ninety- five million dollars ($95,000,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank, for expend- itures made (or, if the Bank shall so agree, to be made) in res- pect of the reasonable 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 Loan. Section 2.03. Except as the Bank shall otherwise agree, contracts for the purchase of goods or for civil works required for the Project shall be procured in accordance with the provi- sions of Schedule 4 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charge at the rate of three-fourths of one per cent, (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of eight and seventy-hundredths per cent (8.70%) 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 June 15 and December 15 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 3 to this Agreement. -5- ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appro- priate engineering, administrative and financial practices, and shall provide, promptly as needed, the funds, facilities, serv- ices and other resources required for the purpose. Section 3.02. In order to assist the Borrower in the super- vision of construction of roads under Part A of the Project and of workshops under Part B of the Project and in carrying out Part C of the Project, the Borrower shall employ engineering and other consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank. Section 3.03. Except as the Bank shall otherwise agree, the general design standards to be used for highways included in Part A of the Project shall be as set forth in Schedule 5 to this Agreement. Section 3.04. The Borrower shall maintain within DPH a spe- cial office to assist in the administration of the Project and in the preparation and supervision of other similar projects financed, or to be financed by the Bank, with functions and res- ponsibilities, and minimum staff satisfactory to the Bank, and shall provide said office with such facilities, resources and funds as shall be required for it to carry out its purposes. -6 - Section 3.05. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to re- place or repair such goods. (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 3.06. (a) The Borrower shall furnish to the Bank, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or addi- tions thereto, in such detail as the Bank shall reasonably request. (b) The Borrower: (i) shall maintain records adequate to record the progress of the Project (including the cost thereof) and to identify the goods and services financed out of the pro- ceeds of the Loan, and to disclose the use thereof in the Project; (ii) shall enable the Bank's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Loan and any relevant records and documents; and (iii) shall furnish to the Bank all such information as the Bank shall reasonably request concerning the Project, the expenditure of the proceeds of the Loan and the goods and services financed out of such proceeds. -7- Section 3.07. The Borrower shall take, or cause to be taken, all such action as shall be necessary to acquire all such land and rights in respect of land as shall be required for the carry- ing out of Part A of the Project and shall furnish to the Bank, pr.ior to awarding any contract for the construction or improvement of the road sections included in Part A of the Project, evidence satisfactory to the Bank that such land and rights in respect of land has been acquired for the construction or improvement of such road sections. - -8- 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 interest and other charges on, the Loan and in the creation of any such lien express provision will be made to that effect. The Borrower shall promptly inform the Bank of the creation of any such lien. (c) The foregoing representation undertaking shall not apply to: (i) any lien created on property, at the time of purchase 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. (d) 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. ........0 -9- (e) 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 maintain or cause to be maintained records adequate to reflect in accordance with con- sistently maintained sound accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carry- ing out the Project or any part thereof. Section 4.03. (a) The Borrower shall take all actions as may be necessary to adequately maintain the roads in its national road network, to make promptly all necessary repairs thereof in accordance with sound engineering practices, and to maintain and renew, as and when needed, the road maintenance equipment required for the purpose and shall provide, as and when needed, the funds, facilities, services and other resources required therefor. (b) Without any limitation or restriction on the Borrower's obligations set forth in paragraph (a) of this Section, and except as the Bank shall otherwise agree, the Borrower shall: - 10- (i) implement its Five-Year Road Maintenance Program in accordance with a general time table of physical targets and budgetary allocations agreed between the Borrower and the Bank; (ii) furnish to the Bank not later than October 31 in each of the years from 1977 until the said mainte- nance program is completed, for the Bank's concurrence, annual detailed physical targets and budget require- ments for the next fiscal year for the abovementioned road maintenance program, including the road restora- tion component, prepared in accordance with planning and budgeting procedures agreed with the Bank; (iii) complete the road restoration component of its Five-Year Road Maintenance Program not later than December 31, 1981; (iv) dispose of, in an appropriate manner, all non- serviceable equipment, scrap parts and components by not later than December 31, 1977 and thereafter dispose of regularly all items of equipment as they reach the end of their economic life; and (v) furnish to the Bank each August and February semi- annual progress reports on its road maintenance program including the road restoration component. Section 4.04. The Borrower shall put into operation not later than December 31, 1977 or such other date as the Bank shall agree, 0 -11 - a system to collect and record in accordance with appropriate statistical methods and procedures such data as are required to assess the technical, economic and financial aspects of the Bor- rover's national road network for the proper planning of construc- tion, maintenance, and improvements and shall thereafter make such modifications to the said system as shall be agreed between the Bor-Lower and the Bank. Section 4.05. The Borrower shall take all necessary steps to insure that the dimensions and axle loads of vehicles using the Borrower's national road network are consistent with the structural and geometric design standards of the roads used. Section 4.06. The Borrower shall endeavor to fill all vacant professional positions in the Planning and Project Development Service of DPH, including three economists and fifteen engineers, with qualified persons not later than December 31, 1977 or such other date as the Bank shall agree. - 12- ARTICLE V Termination Section 5.01. The date April 12, 1977, is hereby specified for the purposes of Section 12.04 of the General Conditions. 0 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 7.02. 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: Telex: SECFINANCE 727550 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: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (wUI) - 14 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 Is/ Eduardo Z. Romualdez Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Is/ Bernard R. Bell Regional Vice President East Asia and Pacific - 15 - SCHEDULE 1 Withdrawal of the Proceeds of the Loan 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 of the Loan to each Category and the percentage of ex- penditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works (a) under Part A 45,000,000 50% of the Project (b) under Part B (i) 1,000,000 30% of the Project (c) under Part B 8,000,000 40% (iii) of the Project (2) Equipment under 12,500,000 Part B (ii) of the Project (a) directly 100% of foreign imported expenditures (b) imported but 65% of local procured expenditures locally (c) locally 100% of local manufactured expenditures (ex-factory) -16- Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (3) Consultants' 6,500,000 100% of foreign services expenditures or 45% (4) Unallocated 22,000,000 TOTAL 95,000,000 0 -17- 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower and for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in compli- ance with the policy of the Bank that no proceeds of the Loan shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Loan decreases or increases, the Bank may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Bank. 4. Notwithstanding the provisions of paragraph 1 above (i) no withdrawals shall be made in respect of payments made for expendi- tures prior to the date of this Agreement, except that withdrawals, in an aggregate amount not exceeding the equivalent of $50,000, - 18 - may be made in respect of Category (3) on account of payments made for such expenditures before that date but after July 1, 1976; and (ii) no withdrawals shall be made in respect of payments made for expenditures under Part B (iii) of the Project until the road restoration component of the Borrower's road maintenance program for each of the two fiscal years commencing January 1, 1977, and ending December 31, 1978 has beer approved by the Bank. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in paragraph 1 above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Bank may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Loan which are then allocated to another Category and which in the opinion of the Bank are not needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then appli- cable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Bank shall have reasonably determined that the pro- curement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expen- ditures for such item shall be financed out of the proceeds of -19 - the Loan and the Bank may, without in any way restricting or lim- iting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the Loan as, in the Bank's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Loan. -20- SCHEDULE 2 Description of the Project The Project consists of: Part A: The construction and improvement of 10 national road sections totalling about 500 km and of 16 minor road sections totalling about 230 km, as described in the Exhibit to this Schedule. Part B: The implementation of the follcwing components of the Borrower's five-year road maintenance program for the period January 1, 1977, through December 31, 1981, namely: (i) the enlargement of 5 Regional Base Shops and of 12 Area Shops and the construction of 11 Area Shops, all in Luzon; (ii) the procurement of road maintenance equipment for use in Luzon, including spares, hand tools, work- shop tools and machinery, and spares and components for existing equipment; and (iii) the carrying out of the first two years of the road restoration component of the abovementioned five- year road maintenance program. -21 - Part C: The utilization of consultants' services to: (i) carry out feasibility studies on about 1,400 km of national roads, about 800 km of minor roads and seven ferry crossings, and detailed engineering on such sections of the said roads and such ferry crossings as shall be agreed between the Borrower and the Bank; (ii) provide about 168 man-months of technical assis- tance to assist DPH in improving its management and operations; and (iii) provide about 72 man-months of technical assistance to train DPH staff. The Project is expected to be completed by September 30, 1980. -22- EXHIBIT TO SCHEDULE 2 1. National Road sections to be constructed or improved under Part A of the Project: Island Road section Length (km) (1) Luzon Legaspi-Tabaco 25 (2) Panay Iloilo-Jaro 9 (3) Panay Zarraga-Passi 45 (4) Panay Jaro-Barotac Viejo 57 (5) Panay Passi-Dao 35* (6) Negros Bacolod-Silay 14 (7) Negros Bacolod-Kabankalan 91 (8) Cebu Cebu-Carmen South 33 (9) Cebu Naga-Toledo 35 (10) Mindanao Puerto-Kibawe 156** * plus three low standard feeder roads totalling about 10 km. ** plus five low standard feeder roads totalling about 35 km. -23- 2. Minor road sections to constructed or improved under Part A of the Project: Island Road section Length (km) (1) Panay Talanghauan-Inas 14 (2) Panay Passi-Calinog 14 (3) Panay Cabugao-Tayongan 10 (4) Panay Bnntog-Dumarao 9 (5) Panay Janiuay-Pototan 16 (6) Panay Gibalo-Cabuyagan 11 (7) Negros Talisay-Concepcion 11 (8) Negros Silay-Guimbalaon 14 (9) Negros Imbang-Patag 20 (10) Negros Sumay-Abuanan 12 (11) Negros La Castellana-Isabela 16 (12) Negros Hinigaran-Aranda 18 (13) Negros Cagulaan-San Isidro (14) Negros Himanayalan-Carabalan 10 (15) Mindanao Aglayan-Miglamin 15 (16) Mindanao Aglayan-Basak 36 -24- SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* On each June 15 and December 15 beginning June 15, 1981 through December 15, 1995 3,065,000 On June 15, 1996 3,050,000 * 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. L0 -25- 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 before maturity 1.30% More than three years but not more than six years before maturity 2.60% More than six years but not more than eleven years before maturity 4.80% More than eleven years but not more than sixteen years before maturity 6.95% More than sixteen years but not more than eighteen years before maturity 7.85% More than eighteen years before maturity 8.70% -26- SCHEDULE 4 Procurement A. International Competitive Bidding 1. Except as provided in Part B hereof, contracts for the pur- chase of goods or for civil works shall be procured in accordance with procedures 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 the basis of international competitive bidding. 2. Bidders for the works included in Part A of the Project shall be prequalified as described in paragraph 1.3 of Part A of the Guidelines. 3. With respect to contracts for civil works under Part A of the Project: (i) For bidding purposes, roads included in Part A of the Project shall be divided into sections and packages formed of appropriate sections, and qualified contractors shall be permitted to bid for one or more such sections and/or for one or more such packages. Contracts shall be awarded for the lowest evaluated bid for each section. In the case of packages, contracts shall be awarded either on the basis of the S1 - 27 - lowest evaluated bid for each package or on the basis of the lowest aggregate total of evaluated bids for the sections included in such package, whichever is the lower. (ii) Non-Philippine contractors shall not be required to register in the Philippines as a condition of bidding for a contract. Where said registration is required of a non-Philippine contractor after he has been awarded the contract, the Borrower shall take such action as may be practicable to facilitate his registration. (iii) Prequalified contractors shall be given a period of not less than 60 days for submission of bids, which shall be accompanied by a bid bond or bank guarantee in an amount equivalent to 5% of the bid price. (iv) The successfull bidder shall be required to furnish at his option, either a 100% performance bond or a bank guarantee by an acceptable finan- cial institution in an amount of about 20% of the cost of the contract, which guarantee or bond shall remain in effect until the works specified in the contract are completed. (v) The contract with the successful bidder shall con- tain terms and conditions which shall not, without the Bank's concurrence, materially differ from -28- those on which bids were asked, and shall include the following provisions: (a) the contract shall provide for retention monies of 5% of the cost of works statei in each monthly invoice until 100% of total contract payments have been made, after which retention shall be discontinued. One-half of the retention monies shall be released when all works have been substantially completed. The balance of the retention monies shall be retained until fourteen days after termination of the contractor's responsibility in respect of defects; (b) at any time during the warranty periods the contractor shall have the option of sub- stituting a satisfactory bank guarantee for such retention in which case the retention money shall be released to him; (c) the warranty period during which the con- tractor remains responsible in respect of defects in the works (fair wear and tear excepted) shall extend for one year after acceptance of the work, except as otherwise agreed by the Bank. -29- B. Other Procurement Procedures 1. Contracts for: (i) the construction and/or improvement of minor roads; (ii) construction or extension of workshop, includ- ing installation of equipment; and (iii) the restoration of the national road network, shall be awarded after local competitive bidding under procedures to be agreed with the Bank. 2. Hand tools for road maintenance, and other items expected to cost less than the equivalent of $15,000 each, shall be procured under the Borrower's procurement procedures for such items, pro- vided that the aggregate amount of all contracts for such tools and items shall not exceed the equivalent of $500,000. C. Evaluation and Comparison of Bids for Goods 1. For the purpose of evaluation and comparison of bids for the supply of goods except those to be procured in accordance with local procedures: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for imported goods, or the ex- factory price for domestically-manufactured goods; (ii) customs duties and other import taxes on imported goods, and sales and sim- ilar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expen- ditures incidental to the delivery of goods to the place of their use or installation shall be included. 2. Goods manufactured in the Philippines may be granted a margin of preference in accordance with, and subject to, the following provisions: - 30- (a) All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the infor- mation required to establish the eligibility of a bid for such preference and the following methods and stages that will be fol- lowed in the evaluation and comparison of bids. (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in the Philippines if the bidder shall have established to the satisfaction of the Borrower and the Bank that the manufacturing cost of such goods includes a value added in the Philippines equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in the Philippines. (3) Group C: bids offering any other goods. (c) All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any sales or similar taxes on goods to be supplied domestically, to determine the lowest evalu- ated bid of each group. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. 01 -31- (d) If, as a result of the comparison under paragraph (c) above, the lowest bid is a bid from group C, all group C bids shall be further compared with the lowest evaluated bid from group A after adding to the c.i.f. bid price of the imported goods offered in each group C bid, for the purpose of this fur- ther comparison only, an amount equal to (i) the amount of cus- toms duties and other iLport taxes which a non-exempt importer would have to pay for the importation of the goods offered in such group C bid; or (ii) 15% of the c.i.f. bid price of such goods if said customs duties and taxes exceed 15% of such price. If the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the bid from group C which as a result of the comparison under paragraph (c) is the lowest evaluated bid shall be selected. D. Review of Procurement Decisions by the Bank 1. Review of prequalification. The Borrower shall, before qua- lification is invited, inform the Bank 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 pre- qualified bidders, together with a statement of their qualifica- tions and of the reasons for the exclusion of any applicant for prequalification shall be furnished by the Borrower to the Bank for its comments before the applicants are notified of the Borrower's decision, and the Borrower shall make such additions to, deletions from, or modifications in, the said list as the Bank shall reasonably request. - 32- 2. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for civil works and equipment to be awarded in accordance to paragraph A.1 of this Schedule: (a) Before bids ae invited, the Borrower shall furnish to the Bank, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said docu- ments or procedures as the Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Bank of the name of the bidder to which it intends to award the contract and shall furnish to the Bank, in sufficient time for its review, a detailed report, by the consultants referred to in Section 3.02 of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants and such other information as the Bank shall reasonably request. 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. -33- (c) The terms and conditions of the contract shall not, with- out 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 submis- sion to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 3. With respect to each contract to be financed out of the pro- ceeds of the Loan and not governed by the preceding paragraph, the Borrower shall furnish to the Bank, promptly after its execu- tion and prior to the submission to the Bank of the first applica- tion for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other information as the Bank shall reasonably re- quest. 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 de- termination. SCHEDULE 5 Highway Design Standards* Terrain Flat Class of Road Minor 2 3 5 Expressway Roads** Design speed (km/h) 6o 60 70 80 100 120 Pavement width (m) 6.0 6.10 6.70 7.00 2x7.30 2x7.30 Median width (m) - - - - 4.00 12.00 Shoulder width (m) 1.50 1.50 2.00 2.50 3.00 3.00 Right of way (m) 30 30 60 60 60 60 Stopping sight distance (m) 70 70 110 110 180 260 * Structural Design: "Standard Specifications for Highway Bridges" adopted by the American Association of State Highway Officials (AASHO). Loading: HS 20-44 and HS 15-44. Pavement Design: Based on an equivalent standard 8-ton single axle load. ** Standards of minor roads may be relaxed where terrain and other physical conditions necessitate lower standards. -35 - Terrain Flat Class of Road Minor 2 3 4 5 Expressway Roads* Passing sight distance (m) 350 350 450 450 600** .800** Maximum super- elevation (%) 8 8 8 8 8 8 Minimum horizontal radius (m) 125 125 240 240 400 750 * Standards of minor roads may be relaxed where terrain and other physical conditions necessitate lower standards. ** Only to be applied if constructed as an undivided highway in the initial stage. - 36 - Terrain Rolling Class of Road Minor 2 3 4 5 Expressway Roads* Design speed (km/h) W0-50 50 60 70 90 100 Pavement width (m) 6.00 6.10 6.70 7.00 2x7.30 2x7.30 Median width (m) - - - - 4.00 12.00 Shoulder width (m) 1.00-1.50 1.50 2.00 2.00 3.00 3.00 Right of way (m) 30 30 60 60 60 60 Stopping sight distance (m) 60 60 70 90 150 230 Passing sight distance (m) 275-300 300 400 400 525** 700** Maximum super- elevation () 8 8 8 8 8 8 Minimum horizontal radius (m) 50-90 90 200 200 350 550 * Standards of minor roads may be relaxed-where terrain and other conditions necessitate lower standards. ** Only to be applied if constructed as an undivided highway in the initial stage. -37- Terrain Mountainous Class of Road Minor 2 3 4 5 Expressway Roads* Design speed (km/h) 30 40 50 60 70 100 Pavement width (m) 5.50 5.50 6.00 6.7 2x7.00 2x7.00 Median vidth (m) - - - - 2.00 4.00 Shoulder width (m) 1.00 1.00 1.50 1.50 3.00 3.00 Right of way (m) 30 40 4o 50 60 60 Stopping sight distance (m) 50 50 60 70 90 190 Passing sight distance (m) 275 275 300 350 450** 600** Maximum super- elevation (%) 8 8 8 8 8 8 Maximum horizontal radius (m) 25 50 80 125 180 400 * Standards of minor roads may be relaxed where terrain and other physical conditions necessitate lower standards. ** Only to be applied if constructed as an undivided highway in the initial stage.