Arrangement --------------------------------------------------------

ARRANGEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF KOREA AND THE GOVERNMENT OF CONCERNING A LOAN FROM THE ECONOMIC DEVELOPMENT COOPERATION FUND

(Date)

The Government of the Republic of Korea and the Government of (hereinafter referred to as "the Contracting Parties"), in accordance with the Agreement signed on (Date) between the Government of the Republic of Korea and the Government of (the Borrower country) concerning the extension of loans from the Economic Development Cooperation Fund (hereinafter referred to as "the EDCF") of the Government of the Republic of Korea, have agreed as follows :

1. (1) The Government of the Republic of Korea shall enable the Government of (the Borrower country) to obtain a loan (hereinafter referred to as "the Loan") from the Export-Import Bank of Korea (hereinafter referred to as "the Bank"), the Government Agency for the EDCF, for the implementation of (the name of the Project) (hereinafter referred to as "the Project"). (2) The Borrower of the Loan shall be (the name of the Borrower). [And the Guarantor for the Loan shall be .] (3) The Loan amount will be up to Korean Won ( ).

 Arrangement -------------------------------------------------------2. The terms and conditions of the Loan , as well as the procedures for its utilization will be governed by the loan agreement (hereinafter referred to as "the Loan Agreement") which will be concluded between the Borrower and the Bank, and contain, inter alia, the following principles : (1) The repayment period will be (2) The interest rate will be years including a grace period of years ;

percent per annum ;

(3) The disbursement period will be months from the date of the signing of the Loan Agreement or such other period as the Borrower and the Bank will agree upon ; (4) A service charge of 0.1% of the amount of each disbursement in case of direct payment procedure, or of the amount of the letter of commitment in case of letter of credit procedure, shall be collected by the Bank. And all banking charges and/or expenses for services rendered by commercial banks in connection with disbursement of the proceeds of the Loan, repayment of principal or payment of interest payable to the Bank under the Loan Agreement are subject to an arrangement to be concluded between the commercial banks concerned of the two countries ; and (5) In the event the Borrower fails to make payment of all or any portion of the principal of the Loan or any other amount when due under the Loan Agreement, the unpaid amount shall bear an overdue charge at the rate of two percent (2%) per annum above the interest rate specified in the Loan Agreement. 3. (1) The eligible source countries for the procurement of goods and services other than consulting services required for the Project will be the Republic of Korea [, and (name of country)]. (2) The eligible source countries for the purchase of consulting services required for the Project will be the Republic of Korea. [It is desirable that ( name of consultant ) be a consultant for the Project, considering that it satisfactorily carried out the feasibility study and/or the detailed design for the Project].

 Arrangement --------------------------------------------------------

(3) The suppliers of goods and services except consulting services necessary for the implementation of the Project shall be selected through (international competitive bidding / limited international bidding / direct contracting) among suppliers of the eligible source countries [, or other methods to be agreed upon between the Borrower and the Bank where such competitive bidding is inapplicable or inappropriate]. (4) The goods which contain materials imported from countries other than the eligible source countries may be eligible for financing under the Loan, if the imported portion is less than fifty percent (50%) of the contract price of such products. A formula for calculating a ratio of such imported portion will be prescribed in the Loan Agreement. (5) The detailed method and procedures of procurement will be governed by the Loan Agreement. 4. Should the funds available from the proceeds of the Loan be insufficient for the implementation of the Project, the Borrower shall make arrangements promptly to provide such funds as shall be needed. 5. The proceeds of the Loan shall be disbursed by the Bank to or on behalf of the Borrower in accordance with the progress of the Project, up to the amount of the Loan, and within the disbursement period specified in the Loan Agreement and in accordance with disbursement procedure under the Loan Agreement. 6. Other terms and conditions to be specified in the Loan Agreement shall be determined through negotiations between the Borrower and the Bank. 7. This Arrangement shall enter into force from the date of signing and shall remain effective, unless otherwise agreed upon, until the Borrower performs all the obligations under the Loan Agreement.

 Arrangement --------------------------------------------------------

Done in duplicate at copies being equally authentic.

this

day of

200 in the English language, two

For The Government of the Republic of Korea

For The Government of the (the Borrower country)

(Name) (Title)

(Name) (Title)