Treaty Series Recuei dens Traitds - United Nations Treaty Collection

218 United Nations - Treaty Series 1967
Agreement or under the Subsidiary Loan Agreement or which shall increase or
threaten to increase materially the estimated cost of the Project.
Section 2.06. (a) The R~gie shall take out and maintain with responsible
insurers or make other provision satisfactory to the Association for insurance
against such risks and in such amount as shall be consistent with sound practice.
(b) Without limiting the generality of the foregoing, the Rdgie undertakes
to insure the imported goods to be financed out of the proceeds of the Credit against
marine, transit and other hazards incident to 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 Rdgie to replace or repair such
goods.
Section 2.07. Except as shall otherwise be agreed by the Rdgie and the Association,
the R6gie shall use all goods financed out of the proceeds of the Credit
exclusively in the carrying out of the Project.
Section 2.08. Except in the normal course of business, goods purchased or
paid for out of the proceeds of the Credit shall not be sold or otherwise disposed
of without the prior consent of the Association.
Section 2.09. (a) The Rdgie shall operate and maintain the Railways, and
from time to time make or cause to be made all necessary renewals and repairs
thereof, all in accordance with sound engineering and railway practices.
(b) The Rdgie shall at all times manage its affairs, plan the development
of the Railways and maintain its financial position all in accordance with sound
engineering, railway, financial and business principles and practices and with
qualified and experienced management.
Section 2.10. Except as the Association shall otherwise agree, the R~gie
shall have its financial statements (balance sheet and related statements of revenues
and expenses) certified annually by an independent accountant or accounting
firm acceptable to the Association, and shall promptly after their preparation
and not later than six months after the close of the R~gie's fiscal year transmit
to the Association certified copies of such statements and a signed copy of the
accountant's or accounting firm's report.
Section 2.11. The R~gie shall from time to time take such steps (including,
but without limitation, adjustments in its rates and fares) as shall be required
to provide revenues sufficient, by such date or dates as shall be agreed upon between
the Borrower, the Association and the Rdgie: (a) to ensure a reasonable return
on its net fixed assets, after covering all operating expenses, including adequate
maintenance and depreciation ; and (b) to enable it, out of its cash resources, to
meet debt interest and amortization, to establish and maintain adequate working
capital, and to finance a material part of its capital expenditures.
No. 8604