Agreement

on estending a tied aid credit between

the Government of the Republic of Poland and

the Government of the Republic of the Union of Myanmar

The Government of the Republic of Poland and the Goyemment of the Republic of the Union of Myanmar seeking to promote the economic deyelopment and welfare of the Republic of the Union of Myanmar as well as to deepen economic co-operation between the Republic of Poland and the Republic of the Union of Myanmar, have agreed as follows:

Article 1

The Goyemment of the Republic of Poland, henceforth referred to as “the Lender”, shall extend a credit in the amount not exceeding EUR 50 million (say: fifty million euro), henceforth called “the Credit”, to the Goyemment of the Republic of the Union of Myanmar, henceforth referred to as “the Borrower”, for financing of projects in the area of firefighting and rescue in the Republic of the Union of Myanmar. The Credit shall be used to finance 100% (say: one hundred percent) of the value of the contracts for deliveries of goods and services from the Republic of Poland to the Republic of the Union of Myanmar.

Article 2

1.    This Agreement, all projects as well as individual contracts financed under this Agreement are assumed to be in accordance with the Organization for Economic Co-operation and Deyelopment (OECD) regulations conceming tied aid, as defined in the Arrangement on Officially Supported Export Credits, henceforth called “the Arrangement”, and other releyant OECD documents. According to the regulations the concessionality level of tied aid shall be at least 50%.

2.    The Borrower will utilise the Credit in conformity with the OECD regulations on tied aid and shall proyide its support to the Lender in ensuring the compliance with such OECD regulations if reąuested by the Lender.

3.    The Republic of Poland shall notify the OECD this Agreement, all projects as well as the contracts to be financed under the Credit in accordance with the procedures outlined in the Arrangement. In case of any objections of the OECD as to accordance of the notified projects or indiyidual contracts financed under this Agreement with the proyisions of the Arrangement, the contracts will not be financed under this

Agreement, irrespective of the fact that indiyidual contracts within the projects have been accepted by the Lender and the Borrower according to Article 3.

4. The Lender and the Borrower will inform entrepreneurs in the Country of the Lender and the Borrower about the OECD regulations and procedures conceming tied aid.

Article 3

1.    The contracts implementing the projects financed under the Credit must be concluded in accordance with the provisions of this Agreement. The export documents, especially invoices, presented by the parties to the contract shall include the clause “under the Agreement on extending a tied aid credit done on

. A A:. &. h.-... 7:GA ^7..........between the Govemment of the Republic of Poland and the

Govemment of the Republic of the Union of Myanmar”.

2.    The contracts, referred to in Article 1, shall be concluded by entrepreneurs having their seats in the Republic of Poland, henceforth called “Polish entrepreneurs”, and the importers fiom the Republic of the Union of Myanmar not later than one year after the datę this Agreement enters into force.

3.    The Borrower's selection of Polish entrepreneurs for realization of the projects to be financed under the Credit shall comply with applicable laws in the Republic of th( Union of Myanmar including regulations on public procurement.

4.    Ali projects as well as contracts to be financed under this Agreement shall be approved according to intemal laws of the Country of the Lender and the Borrower.

5.    The contracts, concluded in accordance with this Agreement, must be approved by the Lender and the Borrower according to the following procedurę:

1)    the Ministry of Planning and Finance of the Republic of the Union of Myanmar will inform the Ministry of Finance of the Republic of Poland in writing about the approval of the chosen indicated contract by the appropriate authorities of the Republic of the Union of Myanmar;

2)    subseąuently, the Ministry of Finance of the Republic of Poland will provide the Ministry of Planning and Finance of the Republic of the Union of Myanmar with its written approval of the contract;

3)    the contract will enter into force on 15 day after the datę the written approval of the Ministry of Finance of the Republic of Poland has been sent to the Ministry of Planning and Finance of the Republic of the Union of Myanmar;

4)    the approval procedurę should not exceed 45 days for the Lender and 45 days for the Borrower.

6.    The Lender and the Borrower may additionally make the approval of the contracts dependent, in particular, on good financial standing of the parties to the contract, settlements of taxes and public fees, properly proven realisation of International transactions and declaration of obeying provisions of this Agreement and OECD regulations.

Article4

1.    Payments to the Polish entrepreneurs resulting from the contracts signed and realised under this Agreement shall be madę by the Lender, represented by the Minister of Economic Development and Finance, by the agency of the bank authorised to service the Credit according to Article 10 paragraph 1 of this Agreement, from the State Budget of the Republic of Poland in PLN, according to the tenns of the contracts.

2.    Ali prices, fbced in accordance with the world market prices, and value of contracts Mdli be denominated in EUR.

3.    Ali the goods exported from the Republic of Poland to the Republic of the Union of Myanmar under this Agreement cannot be re-exported to other countries without the written pennission of the Minister of Economic Development and Finance of the Republic of Poland.

4.    The value of goods and sendces of Polish origin within the contract, financed under this Agreement, cannot be less than 50% (say: fifty percent) of the value of this contract. Detailed information on fulfilment of this reąuirement, indnding presentation of the relevant documents, for example certificates of origin, may be demanded by the Lender and the Borrower from the exporter.

Article 5

The datę of each Credit utilisation shall be the datę of disbursement of the funds to the Polish entrepreneur in accordance with the terms of the contract. The payment will be madę to the Polish entrepreneur only upon receipt by Bank Gospodarstwa Krajowego, appointed to service the Credit according to Article 10 paragraph 1 of this Agreement, of the appropriate payment authorisation from a bank appointed to sendce the Credit by the Borrower according to Article 10 paragraph 1 of this Agreement

Article 6

1.    The repayment of each Credit utilisation by the Borrower in favour of the Lender shall take place in 110 eąual, semi-annual, consecutive instalments paid in EUR on every 15 February and 15 August of a given year after a 5-year grace period from the datę of the respective Credit utilization.

2.    The first instalment shall be paid on the first payment datę after a 5-year grace period from the datę of Credit utilization.

Article 7

1.    The Credit utilised as in Article 5 above shall bear interest at the ratę of 0.15% (say: zero point fifteen percent) p.a. The interest shall be calculated from the datę referred to in Article 5.

2.    Interest shall be paid in EUR, in semi-annual consecutive instalments, from the datę of each Credit utilisation, for interest periods ending on 15 February and 15 August each year.

3.    The first interest is payable at the end of an interest period in which udlization of Credit has been madę.

4.    Due interest for each interest period is calculated on the basis of 360 days a year taking into consideration the effective number of days (365[366]/360).

5.    In the event the Borrower fails to make any payment resulting from this Agreement on respective maturity dates, the unpaid amount shall bear default interest at the ratę of 2% (say: two percent) p.a. above the contractual ratę as defined in paragraph 1. Default interest shall be calculated for the period from the maturity datę to the datę of actual payment.

6.    In the event of late payment or if an amount paid under this Agreement is not sufficient to cover the total amount due, the amount paid shall be applied against amounts due in chronological order and in the first instance against interest accrued after the due datę, in the second instance against interest accrued up to the due datę and thereafter against principal.

Article 8

Payments to the Polish entrepreneurs resulting from the contracts realised under this Agreement shall be madę under the stipulations of the Agreement until the datę of the execution of these contracts, according to the terms of the relevant contracts, but for no longer than five years from the datę the contract enters into force.

Article 9

In case any payment resulting from this Agreement falls due on a day that is not a business day in the country through which payment will be madę, such payment shall be madę on the next succeeding business day after the originally stipulated payment datę. For the purpose of this Agreement, business day means a datę on which banks are open for domestic and foreign exchange settlements in a given country as above.

Article 10

1.    In order to make possible the realisation of payments within the framework of this Agreement, Bank Gospodarstwa Krajowego, acting on behalf of the Lender, shall open in its books an account in EUR in the name of the bank appointed to service the Credit by the Borrower styled „Tied Aid Credit to the Govemment of the Republic of the Union of Myanmar” to record utilisation of the Credit as well as subseąuent payments of due principal instalments and interests. The bank, acting on behalf of the Borrower, shall open in its books a counter account in the name of Bank Gospodarstwa Krajowego. The Credit accounts shall be free from any charges.

2.    Bank Gospodarstwa Krajowego and the bank appointed to service the Credit by the Borrower shall conclude within the shortest possible time from entering into force of this Agreement a Banking Arrangement that is necessary for the implementation of this Agreement.

Article 11

1.    Any taxes, obligations, charges and other fees, which may arise in connection with the execution of contracts concluded under this Agreement, will be paid by each side of a contract in its respective Country and will not be financed by the Credit.

2.    Any bank commissions as well as any other payments, which may be due for any reason whatsoever related to the repayments under this Agreement, will be paid by each side of a contract in its respective Country outside of the framework of the Credit.

3.    Ali repayments of principal and payments of interest instalments nnHar this Agreement shall be madę without deduction of any fees or taxes that may be imposed by the authorities of the Republic of the Union of Myanmar.

Article 12

Any differences between the Lender and the Borrower relating to the interpretation and application of this Agreement shall be settled in direct negotiations between the Lender and the Borrower.

Article 13

Changes to this Agreement can be introduced only in writing as an Annex which will be the integral part of the Agreement. The Annex will enter into force according to Article 15 of this Agreement.

Article 14

Ali correspondence and documentation relating to this Agreement shall be conducted in English.

Article 15

This Agreement shall enter into force on the datę of signing and remain in force until all obligations of the Lender and the Borrower arising from this Agreement are fulfilled.

Done at h^.^U^on Wd-JaM two identical originals, each in the Polish, Myanmar anu English languages, all texts being eąually authentic. In case of any divergences of interpretation of the provisions of this Agreement, the English text shall prevail.

For the Government

of the Republic of the Union of Myanmar

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