Jordan - Energy Development Project : Loan 2371 - Loan Agreement - Conformed

LOAN NUMBER 2371 JO Loan Agreement (Energy Development Project) between HASHEMITE KINGDOM OF JORDAN and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated , 1984 LOAN NUMBER 2371 JO LOAN AGREEMENT AGREEMENT, dated 7 1984, between HASHEMITE KINGDOM OF JORDAN (here4qafter cled the Borrower) and INTER- NATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS (A) the Borrower has requested the Bank to assist in the financing of the Project described in Schedule 2 to this Agreement by making the Loan as hereinafter provided; (B) the Project will be carried out partly by the Borrower and partly, with the Borrower's assistance, by certain indepen- dent agencies of the Borrower, namely, the Natural Resources Authority, the Jordanian Electric Power Company, the Irbid District Electricity Company and the Royal Scientific Society and, as part of such assistance, the Borrower will make available to said agencies part of the proceeds of the Loan as hereinafter provided; (C) the Borrower intends to secure under contract or other arrangements with other external sources of finance an aggregate amount equivalent to about two million eight hundred thousand dollars ($2,800,000) to assist in financing Parts C, D and E of the Project; and WHEREAS the Bank has agreed, on the basis inter alia of the foregoing, to make the Loan available to the Borrower upon the terms and conditions set forth hereinafter and in the Project Agreement of even date herewith between the Bank and the agencies referred to in (B) above; NOW THEREFORE the parties hereto hereby agree as follows: 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 Guarantee Agreements of the Bank, dated October 27, 1980, 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). -2- Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following addi- tional terms have the following meanings: (a) "JEPCO" means the Jordanian Electric Power Company, established and operating under Law Number 1651 of 1962 of the Borrower; (b) "IDECO" means the Irbid District Electricity Company, established and operating under Law Number 1 of 1961 of the Borrower; (c) "NRA" means the Natural Resources Authority of the Borrower, established and operating under Law N.imber 12 of 1968 of the Borrower; (d) "Project Agreements" means the agreements between the Bank and each of JEPCO, IDECO and NRA of even date herewith, as the same may be amended from time to time, and such term includes all schedules to thE 'roject Agreements and all agreements supplemental to the Pro, _t Agreements; (e) "JEPCO Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and JEPCO pursuant to Section 3.01 (e) of this Agreement, as the same may be amended from time to time, and such term includes all schedules to the JEPCO Subsidiary Loan Agreement, and the term "JEPCO Loan" means the loan provided under the JEPCO Subsidiary Loan Agreement; (f) "IDECO Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and IDECO pursuant to Section 3.01 (e) of this Agreement, as the same may be amended from time to time, and such term includes all schedules to the IDECO Subsidiary Loan Agreement, and the term "IDECO Loan" means the loan provided under the IDECO Subsidiary Loan Agreement; (g) "RSS" means the Royal Scientific Society, a private non-profit organization for the promotion of science and technology, established and operating under the laws of the Borrower; (h) "EPU" means the Energy Planning Unit, established within the National Planning Council of the Borrower; - 3 - (i) "Implementing Agencies" means all entities, nther than NPC, responsible for the carrying out of the Project, namely, NRA, RSS, JEPCO and IDECO; and (j) "NPC" means the National Planning Council 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 referred to, an amount in various currencie2s equivalent to thirty million dollars ($30,000,000). 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 expen- ditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Loan. Section 2.03. (a) Except as the Bank shall otherwise agree, procurement of the goods required for Parts A and B of the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of the Schedules to the Project Agreements. (b) Goods required for Parts C, D and E of the Project and to be financed from the proceeds of the Loan shall be procured (i) under contracts awarded after obtaining price quotations from not less than three manufacturers or suppliers of such goods; or (ii) if the Bank agrees that such goods are of a specialized nature, under contracts to be negotiated with the suppliers of such goods under procedures satisfactory to the Bank. Section 2.04. The Closing Date shall be December 31, 1987, or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. I Section 2.05. (a) The Borrower shall pay to the Bank a fee equivalent to seventy-five thousand dollars ($75,000). (b) Prior to the dispatch by the Bank of the notice referred to in paragraph (a) of Section 12.03 of the General Conditions, the Borrower shall pay to the Bank the amount of the said fee in such currency or currencies as the Bank shall specify. Section 2.06. The Borrower shall pay to the Bank a commit- ment 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 2.07. (a) The Borrower shall pay interest on the principal amount of the Loan withdrawn and outstanding from time to time at a rate per annum for each Interest Period equal to one half percent per annum above the Cost of Qualified Borrowings for the last Semester ending prior to the commencement of such Interest Period. (b) As soon as practicable after the end of each Semester, the Bank shall notify the Borrower of the Cost of Qualified Borrowings for such Semester. (c) For purposes of this Section: (i) "Interest Period" means the six-month period commencing on each date specified in Section 2.08 of this Agreement, including the Interest Period in which this Agreement is signed. (ii) "Cost" of Qualified Borrowings means the cost, expressed as a percentage per annum, as reasonably determined by the Bank, provided that the amount of $8,520.5 million referred to in (iii) (B) hereunder shall be reckoned at a cost of 10.93% per annum, (iii) "Qualified Borrowings" means (A) outstanding borrowings of the Bank drawn down after June 30, 1982; and (B) until July 1, 1985, the amount of $8,520.5 million (representing borrowings of the Bank between July 1, 1981 and June 30, 1982) less any part thereof repaid earlier than July 1, 1985. (iv) "Semester" means the first six months or the second six months of a calendar year, - 5 - Section 2.08. Interest and other charges shall be payable semiannually on April 15 and October 15 in each year. Section 2.09. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall: (i) carry out Parts C and E of the Project through NPC and Part D of the Project through NPC in cooperation with RSS, in accordance with appro- priate financial, engineering and administrative practices, and provide, promptly as needed, the funds, facilities, services and other resources required for the purpose; (ii) exercise, through NPC, the overall responsibility for coordinating and monitoring all activities under the Project; and (iii) ensure that NPC will assign to EPU, in a timely manner, the staff required to enable EPU to perform its administrative and technical functions under the Project, including staff for energy conservation and renew- able energy. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause NRA, JEPCO and IDECO to perform in accordance with the provisions of their respective Project Agreements all of their obligations therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, ser- vices and other resources, necessary or appropriate to enable NRA, JEPCO and IDECO to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with sucb performance. (c) The Borrower shall make available in the form of budgetary allocations: (i) to NRA, the proceeds of the Loan allocated for Part A of the Project under Category (1) of the table shown in paragraph 1 of Schedule 1 to this Agreement; and (ii) to NPC, the proceeds of the Loan allocated for Parts C, D and E of the Project under Categories (4), (5) and (6) of said table. (d) The Borrower shall ensure that adequate arrangements will be made between NPC and RSS for the implementation of Part D of the Project and the utilization of the proceeds of the Loan allocated therefor. - 6 - (e) The Borrower shall relend: (i) to JEPCO, the proceeds of the Loan allocated for Part B (1) of the Project under Category (2) of the table shown in paragraph 1 of Schedule 1 to this Agreement; and (ii) to IDECO, the proceeds of the Loan allocated for Part B (2) of the Project under Category (3) of said table, under a Subsidiary Loan Agreement to be entered into between the Borrower and each of JEPCO and IDECO under terms and conditions which shall have been approved by the Bank and which shall include, inter alia, the obligations of each of JEPCO and IDECO to repay the principal amount so relent to it over a period of seventeen years, including a grace period of four years, and with commitment charga and interest at rates identical to those applicable to the Loan pursuant to Sections 2.06 and 2.07 hereof, respectively; such principal amount to be repaid shall be the equivalent in terms of Jordanian dinars (determined as of the respective dates of repayment) of the currency or currencies withdrawn from the Loan Account and charged to the account of the JEPCO Loan or the IDECO Loan, as the case may be. (f) The Borrower shall exercise its rights under the JEPCO Subsidiary Loan Agreement and the IDECO Subsidiary 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 said Agreements or any provision thereof. Section 3.02. The Borrower shall: (a) conclude with other external sources of finance, not later than December 31, 1984 (or such other date as the Bank may agree) arrangements required for securing, for the purpose of financing Parts C, D and E of the Project, the amount referred to in Recital (C) of the Preamble to this Agreement; or (b) provide to the Bank, by such date, alter- native arrangements which the Borrower shall have made in order to secure such amount from the Borrower's own resources. Section 3.03. The Borrower shall cause NPC: (a) to prepare and provide to the Bank for its review and comments, a program for carrying out the training activities provided under Parts C, D, and E of the Project; and (b) after taking into account the Bank's comments thereon, implement such program in accordance with a time schedule satisfactory to the Bank. Section 3.04. In order to assist in the implementation of Parts C, D and E of the Project, the Borrower shall employ, or - 7 - cause NPC to employ, consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers ai. by the World Bank as Executing Agency" published by the Bank in "ugust 1981. Section 3.05. (a) The Borrower shall cause NPC to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Loan made available to it by the Borrower 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 NPC to replace or repair such goods. (b) The Borrower shall cause NPC to ensure that all goods and services financed out of the proceeds of the Loan made available to it by the Borrower for purposes of Parts C, D and E of the Project will be used exclusively for the purposes of the Project. Section 3.06. (a) The Borrower shall cause NPC to furnish to the Bank, promptly upon their preparation, the plans, specifica- tions, reports, contract documents and work and procurement schedules for Parts C, D and E of the Project, and any material modifications thereof or additions thereto, in such detail as the Bank shall reasonably request. (b) The Borrower shall cause NPC: (i) to maintain records and procedures adequate to record and monitor the progress of Parts C, D and E of the Project (including their cost and the benefits to be derived from them), to identify the goods and services financed out of the proceeds of the Loan made available to NPC, and to disclose their use in Parts C, D or E of the Project; (ii) to enable the Bank's representatives to visit the facilities and construction sites included in Parts C, D and E of the Project and to examine the goods financed out of the proceeds of the Loan made available to NPC and any relevant records and documents; and (iii) to furnish to the Bank at regular intervals all such information as the Bank shall reasonably request con- cerning Parts C, D and E of the Project, their cost and, where appropriate, the benefits to be derived from them, the expen- diture of the proceeds of the Loan made available to NPC and the goods and services financed out of such proceeds. - 8 - (c) Upon the award of any contract for goods or services to be financed out of the proceeds of the Loan under Parts C, D and E of the Project, the Bank may publish a description thereof, the name and nationality of the party to whom the contract was awarded and the contract price. (d) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower, acting through NPC and in cooperation with the Implementing Agencies, shall prepare and furnish to the Bank a report, of such scope and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Implementing Agencies and the Bank of their respective obligations under this Agreement and the Project Agreements and the accomplishment of the purposes of the Loan. Section 3.07. (a) The Borrower, acting through NPC, shall, at the request of the Bank, exchange views with the Bank with regard to the progress of Parts C, D and E of the Project, the performance of its oblig tions under this Agreement and under the Subsidiary Loan Agreements, and other matters relating to the purposes of the Loan. (b) The Borrower, acting through NPC, shall promptly inform the Bank of any condition which interferes or threatens to inter- fere with the progress of Parts C, D and E of the Project, the accomplishment of the purposes of the Loan, or the performance by the Borrower of its obligations under this Agreement and under the Subsidiary Loan Agreements. ARTICLE IV Other Covenants Section 4.01. (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution of foreign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any - 9 - external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the allocation, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or permitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or administrative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfactory to the Bank. (b) The foregoing 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 or as security for the payment of debt incurred for the purpose of financing the purchase of such property; and (ii) any lien aris- ing in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower, of any political or administrative sub- division thereof and of any entity owned or controlled by, or operating for the account or benefit of, the Borrower or any such subdivision, including gold and foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. Section 4.02. The Borrower shall cause NPC to maintain sepa- rate accounts adequate to reflect in accordance with consistently maintained appropriate accounting practices its operations, resources and expenditures in respect of Parts C, D and E of the Project. Section 4.03. The Borrower shall cause NPC: (a) to have the accounts referred to in Section 4.03 hereof for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; - 10 - (b) to furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors of such scope and in such detail as the Bank shall have reasonably requested; and (c) to furnish to the Bank such other information concern- ing said accounts and the audit thereof, as the Bank shall from time to time reasonably request. ARTICLE V Remedies of the Bank Section 5.01. For the purposes of Section 6.02 of the Gene- ral Conditions, the following additional events are specified pursuant to paragraph (k) thereof: (a) JEPCO, IDECO or NRA shall have failed to perform any of its obligations under its respective Project Agreement. (b) As a result of events which have occurred after the date of this Agreement, an extraordinary situation shall have arisen which shall make it improbable that JEPCO, IDECO or NRA will be able to perform its obligations under its respective Pro- ject Agreement. (c) Law No. 1651 of 1962 or Law No. 1 of 1961 or Law No. 12 of 1968 shall have been amended, suspended, abrogated, repealed or waived so as to affect materially and adversely the ability of JEPCO or IDECO or NRA, respectively, to perform any of its oblig- ations under its respective Project Agreement. (d) The Borrower or any other authority having jurisdiction shall have taken any action for the dissolution or disestablish- ment of JEPCO, IDECO or NRA or for the suspension of its opera- tions. Section 5.02. For the purposes of Section 7.01 of the Gene- ral Conditions, the following additional events are specified pursuant to paragraph (h) thereof: (a) the event specified in paragraph (a) of Section 5.01 of this Agreement shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Bank to the Borrower and JEPCO, IDECO or NRA; and - 11 - (b) any event specified in paragraphs (c) and (d) of Sec- tion 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 6.01. The following event is specified as an addi- tional condition to the effectiveness of this Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely, that the JEPCO Subsidiary Loan Agreement and the IDECO Subsidiary Loan Agreement have been executed on behalf of the Borrower and JEPCr and on behalf of the Borrower and IDECO, re- spectively. Section 6.02. The following are specified as additional matters, 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: (a) that the Project Agreements have been duly authorized or ratified by JEPCO, IDECO and NRA, respectively, and are legal- ly binding upon JEPCO, IDECO and NRA, respectively, in accordance with their terms; and (b) that the JEPCO Subsidiary Loan Agreement and the IDECO Subsidiary Loan Agreement have been duly authorized or ratified by the Borrower and JEPCO and the Borrower and IDECO, respective- ly, and are legally binding upon the Borrower and JEPCO and the Borrower and IDECO, respectively, in accordance with their terms. Section 6.03. The date '4 Y, is hereby speci- fied for the purposes of Section7 12.04 of the General Condi- tions. ARTICLE VII Representatives of the Borrower; Addresses Section 7.01. The President of the National Planning Council 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. - 12 - For the Borrower: National Planning Council P.O. Box 555 Amman, Jordan Cable address: Telex: NPC 21319 JO AMMAN 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) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, 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. HASHEMITE KINGDOM OF JORDAN By >1 r/ " .' & /i Authorie Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By ) 2/' 4 Regional Vice President Europe, Mid e East and North Africa - 13 - 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 expenditures 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) Part A of the Project: (a) Consultants' 2,100,000 100% of foreign services expenditures (b) Training 600,000 100% foreign expenditures (c) Advance pro- 1,500,000 100% of foreign cessing of expenditures seis ic data (d) Equipment 500,000 100% of foreign expenditures (2) Part B (1) of the Project: (a) Equipment 10,400,000 100% of foreign expenditures and 100% of local expenditures ex-factory (b) Installation 2,100,000 40% contracts (c) Consultants' 300,000 100% of foreign services expenditures - 14 - Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (3) Equipment under 7,600,000 100% of foreign Part B (2) of the expenditures and Project 100% of local expenditures ex-factory (4) Part C of the Project: (a) Consultants' 2,300,000 100% of foreign services expenditures (b) Services of a 200,000 75% Conservation Adviser (c) Equipment 350,000 100% of foreign expenditures (5) Part D of the Project: (a) Consultants' 50,000 100% of foreign services expenditures (b) Equipment 200,000 100% of foreign expenditures (6) Consultants' 250,000 100% of foreign services under expenditures Part E of the Project (7) Unallocated 1,550,000 TOTAL 30,000,000 - 15 - 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. The disbursement percentages have been calculated in com- pliance with the policy of the Bank that the proceeds of the Loan shall not 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; on this basis, if the amount of any such taxes levied on or in respect of items in any Category decreases or increases, the Bank may, by notice to the Borrower, increase or decrease the dis- bursement percentage then applicable to such Category as required to be consistent with the aforementioned policy of the Bank. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of expenditures made prior to the date of this Agreement, expect that withdrawals, in an aggregate amount not exceeding $200,000 equivalent, may be made under Category (4) on account of payments made for such expenditures before that date but after November 1, 1983. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in paragraph I 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 Cate- gory, the Bank may, by notice to the Borrower: (i) reallocate to suci 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 disburse- ment percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. - 16 - 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 expenditure for such item shall be financed out of the proceeds of the Loan, and the Bank may, without in any way restricting or limiting 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. - 17 - SCHEDULE 2 Description of the Project The main objectives of the Project are to initiate or continue the implementation of investments that would contribute to the improvement of Jordan's overall energy efficiency and to assist in providing the groundwork needed for the formulation of a comprehensive long-term energy plan. The Project consists of: Part A: Petroleum Exploration Strengthening of NRA's program for prospect mapping, log interpretation and seismic data acquisition, processing and interpretation through: (1) provision of equipment and materials for micropalaento- logy, palynology, petrography, geochemistry and well- testing; (2) provision of consultants' services in petroleum geo- logy, drilling and production; seismic interpretation and seismostratigraphy; (3) advance processing of seismic data; and (4) training of NRA's staff in petroleum exploration and production techniques. Part B: Power Distribution (1) Expansion and rehabilitation of the power distribution system and electrification of about 20 villages in JEPCO's concession area through (a) the provision and installation of underground cables, medium and low voltage overhead lines, and (b) the provision of power transformers and of distribution transformers. (2) Expansion and rehabilitation of the power distribution system in IDECO's concession area and electrification of about 55 villages in the Governorate of Irbid through (a) the provision and installation of under- ground cables, medium and low voltage overhead lines and (b) the provision of power transformers and of dis- tribution transformers. - 18 - (3) The provision of technical services (a) for JEPCO, in connection with Part B (1) of the Project, in the pre- paration of the detailed engineering design and tender documents, the evaluation of bids and the supervision of construction, and (b) for IDECO, in the formulation of a strategy to strengthen its financial planning and control capabilities. Part C: Energy Conservation (1) Studies, to be undertaken with the assistance of an engineering firm, to establish energy conservation measures for major energy consuming idustries, and to assess the cost and potential saving of such measures. (2) Provision of equipment required for undertaking the studies and for testing the measures referred to in (1) above. (3) Technical assistance for EPU, through the employment of an energy conservation adviser, to assist in the identification of conservation projects and in the implementation of an industrial conservation strategy. (4) Training in the identification and preparation of pro- jects for the improvement of energy efficiency. Part D: Renewable Energy (1) A program of planning studies and, on the basis of the findings of such studies, of pilot/demonstration schemes, with the assistance of consultants for renew- able energy. (2) Provision of equipment required under (1) above. (3) Training of RSS's staff in renewable energy technolo- gies. Part E: Energy Planning (1) Studies, with the assistance of consultants, of poli- cies and measures for energy planning, management and pricing. - 19 - (2) Provision of equipment for EPU. (3) Training of EPU's staff in project appraisal, prepara- tion -nd implementation, investment planning, energy pricing and conservation, demand management and macro- economic policy formulation. The Project is expected to be completed by December 31, 1986. - 20 - SCHEDULE 3 Amortization Schedule Payment of Principal Date of Payment Due (Expressed in dollars)* On each April 15 and October 15 beginning October 15, 1988 through October 15, 2000 1,155,000 On April 15, 2001 1,125,000 * The figures in this column represent dollar equivalents determined as of the respective dates of withdrawal; see General Conditions, Section 3.04. - 21 - Premiums on Prepayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.04 (b) of the General Conditions: Time of Prepayment Premium The interest rate (ex- pressed as a percentage per annum) applicable to the balance outstanding on the Loan on the day of prepayment multiplied by: Not more than three years .18 before maturity More than three years but not .35 more than six years before maturity More than six years but not .65 more than eleven years before maturity More than eleven years but not .88 more than fifteen years before maturity More than fifteen years 1.00 before maturity INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Bank for Reconstruction and Develop- ment. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Bank thereunto this F Eday ofC R FOR SECRETARY