МОНГОЛ УЛСЫН ХУУЛЬ

2010 оны 07 дугаар сарын 07-ны өдөр

Улаанбаатар хот

САНХҮҮЖИЛТИЙН БОЛОН ХӨГЖЛИЙН ЗЭЭЛИЙН ШИНЭЧИЛСЭН ХЭЛЭЛЦЭЭР СОЁРХОН БАТЛАХ ТУХАЙ

МОНГОЛ УЛСЫН ИХ ХУРЛЫН ДАРГА Д.ДЭМБЭРЭЛ

ЗЭЭЛИЙН ДУГААР 4687-MN

МОНГОЛ УЛС БА ОЛОН УЛСЫН ХӨГЖЛИЙН АССОЦИАЦИЙН

ХООРОНД БАЙГУУЛСАН САНХҮҮЖИЛТИЙН ХЭЛЭЛЦЭЭР

("Малын индексжүүлсэн даатгал төсөл"-ийн нэмэлт санхүүжилт)

2010 оны 3 сарын 18-ны өдөр

САНХҮҮЖИЛТИЙН ХЭЛЭЛЦЭЭР

Энэхүү гэрээг нэг талаас МОНГОЛ УЛС (цаашид "Зээлдэгч" гэх), нөгөө талаас ОЛОН УЛСЫН ХӨГЖЛИЙН АССОЦИАЦИ (цаашид "Ассоциаци" гэх)-ийн хооронд 2009 оны ____ сарын ___-ны өдөр Үндсэн төсөлд (гэрээний хавсралт хэсэгт тодотгосон) нэмэлт санхүүжилт хийх зорилготойгоор байгуулав. Зээлдэгч болон Ассоциацийн зүгээс дараах зүйлүүдийг хүлээн зөвшөөрсөн болно:

I ЗҮЙЛ

ЕРӨНХИЙ НӨХЦӨЛ; НЭР ТОМЪЁО

Ерөнхий нөхцөл нь (гэрээний хавсралт хэсэгт тодотгосон) энэхүү гэрээний салшгүй хэсэг юм. Энэхүү гэрээнд тусгагдсан ерөнхий нөхцөл, нэр томъёонууд нь гэрээний хавсралт хэсэгт болон Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээрт тодорхойлогдсон байгаа.

II ЗҮЙЛ

Санхүүжилт

Ассоциаци нь энэхүү хэлэлцээрт заасан нөхцөл агуулгын дагуу зээлдэгчид уг гэрээний 1-р хавсралтанд тодотгосон төслийн нэмэлт санхүүжилт болох ____________ -тэй тэнцэх зээлийн тусгай эрх (ЗТЭ) олгохыг зөвшөөрч байна. Зээлдэгч нь санхүүжилтийг энэхүү хэлэлцээрийн 2 дугаар хуваарийн 4 дүгээр хэсэгт заасны дагуу хэрэглэх болно. Зээлдэгч нь санхүүжилтийн хөрөнгийн ашиглагдаагүй үлдэгдэлд Хөрөнгө нөөцлөн баталгаажуулсны дээд хураамжийг нэг жилд нэг хувийн хагас (1%-ийн 1/2)-ын хэмжээгээр төлнө. Зээлдэгч нь Санхүүжилтийн хөрөнгийг гаргаж авсан үлдэгдэлд нэг жилд нэг хувийн дөрөвний гурав (1%-ийн 3/4)-тай тэнцэх Үйлчилгээний хураамж төлнө. Төлбөр хийх өдөр нь жил бүрийн 5 дугаар сарын 15-ны өдөр болон 11 дүгээр сарын 15-ны өдөр байна. Үндсэн зээлийг энэхүү Хэлэлцээрийн 3 дугаар хуваарьт заасан эргэн төлөх хуваарийн дагуу эргүүлэн төлнө. Төлбөр хийх мөнгөн тэмдэгт нь ам.доллар байна.

III ЗҮЙЛ

Төсөл

Зээлдэгч нь төслийн зорилтыг хэрхэн хэрэгжүүлэх саналаа гаргах бөгөөд ерөнхий нөхцлийн 4-р зүйлд заасны дагуу төслийг цаашид зохион байгуулах болно. Хэлэлцээрийн 3.01 хэсэг дэх заалттай зөрчилдөхгүй эсвэл Ассоциаци болон зээлдэгчийн зүгээс татгалзах зүйлгүй бол зээлдэгчийн зүгээс төслийг уг хэлэлцээрийн 2 дугаар хуваарьт заасны дагуу хэрэгжих бололцоог хангах үүрэгтэй.

IV ЗҮЙЛ

Хүчин төгөлдөр болгох; Цуцлах

Төслийн бүтцэд өөрчлөлт орсонтой холбогдуулан хийгдсэн Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээр болон Швейцарийн Буцалтгүй Тусламжийн гэрээг хүчин төгөлдөр болгох мөн түүнчлэн Солонгос Улсын Буцалтгүй Тусламжийн нь гэрээний дагуу зээлдэгч төлөөлөл хэрэгжүүлж эхэлсэн. Энэхүү хэлэлцээрээс бусад бүх хэлэлцээрийн өмнөх нөхцлүүд нь тусгагдсан болно. Энэхүү хэлэлцээр нь байгуулснаас хойш 90 хоногийн дараа хүчин төгөлдөр болно. Ерөнхий нөхцөлд заасан 8.05 (b) хэсгийн зорилго нь зээлдэгчийн гэрээний дагуу хүлээсэн үүргүүд нь (зээлийн хэмжээг буцааж төлөхөөс бусад) гэрээ хийгдсэнээс 20 жилийн дараа төгсгөл болно.

V ЗҮЙЛ

Төлөөлөх байгуулга; Хаяг

5.01 Сангийн яам нь зээлдэгчийг төлөөлөх болно.

5.02 Зээлдэгчийн хаяг:

Сангийн яам Засгийн газрын II байр

Нэгдсэн үндэстний гудамж-5/1

Улаанбаатар-210646

Монгол улс Факс: 976-11-262272

5.03 Ассоциацийн хаяг:

Олон улсын хөгжлийн ассоциаци

1818 H. Street, N.W Washington, D.C. 20433

Америкийн нэгдсэн улс

Кабелийн хаяг: Телекс: Факс:

INDEVAS 248423 (MCI) 1-2024776391 Washington, D.C.

Энэхүү гэрээнд _____оны ___-р сарын __-ний гарын үсэг зурж батламжлав.

МОНГОЛ УЛСЫГ ТӨЛӨӨЛЖ

Эрх бүхий төлөөлөгч

ОЛОН УЛСЫН ХӨГЖЛИЙН АССОЦИАЦИЙГ ТӨЛӨӨЛЖ

Эрх бүхий төлөөлөгч

ХАВСРАЛТ 1

Төслийн тодорхойлолт

Малын Индексжүүлсэн Даатгалын төслийн гол зорилго нь (i) МИД-ийн төслийг сонгогдсон аймгуудаар нэмэгдүүлэх (ii) төслийн чадамж болон хууль зүйн эрхийг бэхжүүлэн тогтвортой болгосноор малчин ард иргэдийн амьжиргааг тодорхойлдог мал сүргийн хорогдлын нөлөөг багасгана.

Төсөл нь төслийн эх хувиас бүрдэнэ.

ХАВСРАЛТ 2

Төслийн хэрэгжилт

1-р хэсэг. Төсөл хэрэгжүүлэх зохицуулалт

Бүтцийн зохицуулалт.

Зээлдэгч нь Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээрийн II зүйлийн 2.02 (c), (d), (e) дэд хэсэгт заасан төсөл хэрэгжүүлэх зохицуулалт болон 4 дүгээр Хавсралтын 1-13 дугаар хэсгүүдэд нийцүүлэн төслийг хэрэгжүүлэх болно.

Авилгалын эсрэг

Зээлдэгчийн зүгээс төслийг Авилгалын эсрэг хэрэгжүүлэх зааварчилгааны дагуу хэрэгжүүлэх үүрэгтэй.

2-р хэсэг. Төслийн хянан шалгалт, тайлан мэдээлэл болон дүгнэлт

Төслийн тайлан мэдээлэл

Ерөнхий нөхцлийн 4.08 хэсэг, Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээрийн 4 дүгээр хуваарийн 9 дүгээр хэсгүүдэд нийцүүлэн Зээлдэгч нь төслийг хянан шалгаж дүгнэсний үндсэн дээр тайланг бэлдэх болно. Үндсэн заалт нь Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээрийн 6 дугаар хавсралтанд заагдсан байгаа.

Санхүүгийн зохицуулалт, тайлан болон аудит Ерөнхий нөхцөлийн 4.09 хэсэгт нийцүүлэн Зээлдэгч нь төслийн санхүүгийн зохицуулалтыг хэрэгжүүлнэ. Зээлдэгчийн зүгээс энэхүү хэсгийн А-д заалнаас үл хамааран Ассоциацид жил бүрийн 2 болон 8-р сарын 15-ний дотор тухайн улирлын (7-12 сар, 1-6 сар хүртэлх) урьдчилсан аудитаар шалггагдаагүй санхүүгийн тайланг танилцуулах ёстой. Зээлдэгч нь ерөнхий нөхцлийн 4.09 (b) хэсэгт заасны дагуу санхүүгийн тайланг гаргах бөгөөд МДНТД, ҮДБ-ний нөөцийн данс болон нөхөн төлбөрийн данс зэргийн бүртгэл тооцоог аудитаар шалгуулах шаардлагатай. Энэхүү санхүүгийн аудит нь зээлдэгчийн тухайн санхүүгын жилийн эхний шилжүүлэг хийгдсэнээс хойшхи дуусах хүртэлх хугацаанд хүчинтэй байна. Энэхүү аудит хийгдсэн санхүүгийн тайланг Ассоциацид тухайн мөчлөг дууссанаас хойш 6 сарын дотор танилцуулах болно.

3-р хэсэг. Бараа үйлчилгээ худалдан авах

Ерөнхий нөхцөл Бараа. Бүх бараа үйлчилгээ нь бараа үйлчилгээ худалдан авах зааврын 1 дүгээр хэсэг болон энэхүү хэсгийн нөхцөлд заасны дагуу сонгон шалгаруулж худалдан авна. Зөвлөхийн үйлчилгээ. Бүх зөвлөхийн үйлчилгээ нь бараа үйлчилгээ худалдан авах зааврын 1 болон 4 дүгээр хэсгүүд болон энэхүү хэсгийн нөхцөлд заасны дагуу сонгон шалгаруулж худалдан авна. Тодорхойлолт. Энэ хавсралтанд дурдагдах нэр томъёонууд нь бараа үйлчилгээ худалдан авах болон Зөвлөх сонгон шалгаруулах заавруудад бараа үйлчилгээ худалдан авах арга эсвэл Ассоциацийн гэрээний дагуух дүгнэлтийг тодорхойлно. Бараа үйлчилгээ худалдан авах онцлох аргууд Олон улсын өрсөлдөөний үйл ажиллагаа. Доорхи 2 дугаар дэд хэсгээс бусад тохилдолд бараа үйлчилгээ нь Олон улсын өрсөлдөөний үндсэн дээр явагдана. Бараа үйлчилгээ худалдан авах бусад аргууд. Дараах хүснэгтэнд Олон улсын өрсөлдөөний үндсэн дэх аргаас бусад бараа үйлчилгээ худалдан авах аргууд болон хэрэглэх нөхцөл байдлыг тусгасан.

Зөвлөх сонгон шалгаруулах онцлох аргууд Чанар болон өртөг тооцон сонгох. 2 дугаар дэд хэсэгт зааснаас бусад тохиолдолд зөвлөх сонгон шалгаруулах ажил нь чанар болон өртөг тооцох аргын үндсэн дээр явагдана. Зөвлөх сонгон шалгаруулах бусад аргууд. Дараах хүснэгтэнд чанар болон өртөг тооцон сонгох аргаас бусад зөвлөх сонгон шалгаруулах аргууд болон хэрэглэх нөхцөл байдлыг тусгасан.

Бараа үйлчилгээ худалдан авах гэрээний шийдвэрийг Ассоциацийн зүгээс хянах

Хэрэв Ассоиациин зүгээс зээлдэгчид ямар нэгэн мэдэгдэл гаргаагүй тохиолдолд Aссоциаци нь (a) 20,000 ам.доллар буюу түүнээс дээш бараа үйлчилгээ авах (зөвлөхөөс бусад) гэрээ, (b) шууд гэрээний дагуу хийгдсэн бараа үйлчилгээ худалдан авах гэрээ, (c) 50,000 ам.доллар болон түүнээс дээш гарсан чанар болон өртөг тооцон сонгох, чанарт үндэслэн сонгох, хямд зардалтайг нь сонгох, Зөвлөхийн ажлын чадвар тооцон сонгох зэрэг зөвлөх сонгох шалгаруулах гэрээ, (d) 20,000 ам.доллар болон түүнээс дээш давсан бие даасан зөвлөх сонгон шалгаруулах гэрээ зэргийг хянан шалгана. Мөн Ассоциаци нь 20,000 ам.доллар болон түүнээс дээш хэмжээний бие даасан зөвлөх сонгон шалгаруулалтанд оролцогчдын ажлын чадвар болон туршлаганд үндэслэн урдчилсан батламж гаргана. Бусад бүх гэрээдтэй Ассоциацийн зүгээс дараа нь хянан танилцах болно.

4-р хэсэг. Нэмэлт санхүүжилтээс гарах зарлага

Ерөнхий нөхцөл Энэхүү хэсэг, Ерөнхий нөхцлийн II зүйлд заасны дагуу зээлдэгч нь нэмэлт санхүүжилтээс зарлагадах эрхтэй бөгөөд зарцуулалтын хэмжээг Ассоциацийн зүгээс (2006 оны 5-р сард гарсан Дэлхийн Банкны төсөл санхүүжүүлэх зааврын дагуу) зарцуулах хэмжээг 2-р дэд хэсгийн хүснэгтэнд тусгасан байгаа. Дараах хүснэгт нь нэмэлт санхүүжилтийн нийт зарцуулах хэмжээг төрөл тус бүрд хуваарилагдах мөнгөн хэмжээ болон нийт зарцуулалттай харьцуулсан хувийг үзүүлсэн.

Зарлага гаргах нөхцөл; хугацаа Энэ хэсгийн A-д заасан хэдий ч энэхүү гэрээ батлагдахаас өмнө хийгдсэн төлбөрүүд нь зарлагад орохгүй болно. (a) Хэдийгээр энэ 4-р хэсгийн 1(c) дэд хэсэгт гүйцэтгэлийн нөхцөлийг тусгасан боловч (4) төрлийн зарлагыг гаргахын тулд Ассоциацийн тавих дараах шаардлагуудыг хангасан байх хэрэгтэй. Үүнд: Зээлдэгч нь Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээрийн II зүйлийн 2.02(c) болон (e) хэсэг мөн түүнчлэн 4-р хавсралтын 5(c) дэд хэсгүүдэд заасанчлан МДНТД, ҮДБ-ний нөөцийн данс, нөхөн төлбөрийн данс зэргийг Ассоциацийн шаардлагад нийцүүлэн нээсэн байх. Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээрийн 4-р хавсралтын 5(d) дэд хэсэгт заасны дагуу зээлдэг нь оролцогч даатгалын компаниудтай алдагдал зогсоох хэмжээний гэрээг хийх мөн түүнчлэн энэхүү гэрээ нь Ассоциацийн алдагдал зогсоох дахин даатгалын гэрээний заалт нөхцөлүүдтэй харшилдах эсэхийг Ассоциацийн зүгээс хянах. Оролцогч даатгалын компаниудын зүгээс гаргасан хүсэлтийн дагуу ҮДБ-ний даатгал эзэмшигчийн баталгааны маягтыг хэвлэнэ. МИД-ийн даатгал эзэмшигчдийн зүгээс ҮДБ-ний эрсдэлийн нэхэмжлэлийн хэмжээг нэхэмжлэх Зээлдэгч нь ТХН-ээр дамжуулан ҮДБ-ний нөөцийн данс нь шавхагдсан баталгааг Ассоциацад гаргах. Зээлдэгч нь Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээрийн 4-р хавсралтын 5(e) дэд хэсэгт заасны дагуу санхүүгийн дундын зуучлагчтай гэрээ хийх.

(b) Ангилал (4) дагуу төлбөрийг хийх үүднээс энэ хавсралтын (а) дэд хэсэгт заасан болон хүчин төгөлдөр нэхэмжлэлийн дагуу холбогдох зарлагыг гүйцэтгэх явцад хүчинтэй байсан нөхцлүүдийг хангаж байгааг илэрхийлсэн ТХН-ийн захирлаар дамжуулан зээлдэгчийн Сангийн сайдаас гаргасан гэрчилгээг оролцуулан Ассоциацийн хүлээн зөвшөөрсөн загвар болон агуулгын дагуу хүчин төгөлдөр нэхэмжлэл ба түүнтэй уялдан хийсэн төлбөрийн талаарх баримт материалыг зээлдэгч Ассоциацид хүргүүлнэ.

Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээр, Солонгос улсаас үзүүлж буй буцалтгүй тусламжийн гэрээ болон энэхүү гэрээнүүдийн санхүүжилтээс зарцуулалтын зузаатгал хийхийн тулд зээлдэгч нь эхний ээлжид тухайн үед ашиглагдаж буй бүх дансдуудыг эдгээр гэрээнүүдэд заасны дагуу шавхсан байх шаардлагатай. 2014 оны 3-р сарын 31-ний өдөр дуусгавар болгоно.

Хавсралт 2-ийн Дагалдах бичиг

Дотоодын өрсөлдөөний үйл ажиллагаа

Дотоодын зах зээлийн өрсөлдөөнөөс төсөлд хэрэглэгдэх бараа үйлчилгээ худалдан авах гэрээг хийхийг дэмжинэ.

Тохиромжтой худалдан авалтын үйл ажиллагаа

Худалдан авалтын сонгон шалгаруулах явц нь 2005 оны 12-р сарын 1-нд батлагдсан Монгол улсын Худалдан авалтын тухай хуулийн 2-р бүлэгт заасны дагуу (2007 оны 2-р сарын 6-нд шинэчлэгдсэн) нээлттэй байдлаар хийгдэнэ.

Сонгон шалгаруулах үйл явц, оролцоо

Энэхүү сонгон шалгаруулах үйл ажиллагаанд зөвхөн Монгол усад харьяалалтай, хууль зүй болон санхүүгийн хувьд бие даасан, арилжааны аж ахуй нэгжүүд (зээлдэгч улсын харьяат агетлаг бус) оролцох эрхтэй. Боломжит оролцогч нар нь сонгон шалгаруулах ажиллагаатай холбогдох мэдээллийг биеэр болон албан бичгээр хүсч болно. Сонгон шалгаруулалттай холбогдох бичиг баримт болон мэдээллийг шаардагдах хураамжийг төлсөн хүн болгон авах эрхтэй бөгөөд өөр ямар нэгэн нөхцөл байхгүй болно. Сонгон шалгаруулалттай холбогдох бичиг баримт мэдээлэл нь хүсэл гаргагчдад сонгон шалгаруулах урилгад тодорхой заагдах хүргэлтийн хураамж зэргээ төлснөөс хамааран шуудангаар эсвэл биеэр хүргэж өгнө. Оролцогч бүр зөвхөн нэг багц мэдээлэл авах эрхтэй. Тухайн оролцогч төслөөс зохион байгуулж буй хэдэн ч сонгон шалгаруулалтанд орлцож болно. Сонгон шалгаруулалтанд орох сонирхолтой гадны боломжит компаниудын хувьд дотоодын оролцогчидтой хамтрахгүйгээр оролцох боломжтой. Гадны компаниудыг шалгаруулалтанд оролцуулах нөхцөл нь дотоодын компаниудтай адилхан байна. Гэвч сонгон шалгаруулах явц болон дүгнэлтэнд Монголын компаниуд болон бараа үйлчилгээнүүд нь илүү давуу эрхтэй оролцох болно. Бүртгэл хийх нь тухайн оролцогчийг сонгон шалгаруулалтанд оролцохыг шаардахгүй. Том хэмжээний болон иж бүрдэл ажлын хувьд Ассоциацийн зүгээс бичгээр хүссэн тохиолдолд гэрээнд оролцогчийн ажил гүйцэтгэх чадварыг урдчилан дүгнэх болно.

Сонгон шалгаруулалтын бэлтгэл ажлын сурталчилгаа болон цаг хугацаа

Сонгон шалгаруулалтанд оролцох урилга нь орон даяар гардаг нэгээс доошгүй сонинд сурталчлан тавьсан байх шаардлага. Боломжит оролцогч нар нь сонгон шалгаруулалтын материал хүлээж авч дуусах хугацаанаас хамгийн багадаа 24 цагийн өмнө хэрэгцээтэй бичиг баримт мэдээллийг худалдан авч болно.

Сонгон шалгаруулалтын стандарт бичиг барамт мэдээлэл

Ассоциацийн зүгээс хүлээн зөвшөөрсөн сонгон шалгаруулатын стандарт бичиг баримт мэдээлэл нь хэрэглэгдэх болно. Энэхүү бичиг баримт мэдээлэл нь сонгон шалгаруулалтын зааварчилгаа, үнийн санал, эхлэх болон дуусах цаг хугацаа зэргийг тусгасан байх бөгөөд оролцогчид материалаа биеэр, шуудангаар эсвэл шуудан зөөгчөөр өгөх боломжтой.

Ажил хэрэгжүүлэх чадвар болон үнэлэлт дүгнэлтийн хэмжээ

Ажил хэрэгжүүлэх чадварын хэмжээг сонгох шалгаруулалтын мэдээлэлд тодотгосон байх бөгөөд үүнээс оролцогчийн шалгаруулалтад оролцох боломжтой эсэхийг тодохойлно. Оролцогчийн ажил хэрэгжүүлэх чадварыг үнэлэх ажлыг тухайн сонгон шалгаруулалтын арилжааны болон техник үзүүлэлтийг үнэлэх дүгнэлтээс тусад нь хэрэгжүүлнэ. Нэмэлт ажил хэрэгжүүлэх чадвар тусгасан үед үнэлгээний явцыг ажил хэрэгжүүлэх чадвар багатайгаас нь эхлэх явуулах зорилгоор худалдан авагч нь бүх оролцогчдын материалыг урьдчилсан байдлаар дэлгэрэнгүй үнэлгээ хийсний дараагаар оролцогчдын ажил хэрэгжүүлэх чадварыг үнэлж эхлэнэ. Оролцогчийн ажил эрхлэх чадварыг үнэлэхдээ шалгаруулалтанд оролцогчын зөвхөн тухайн гэрээний чиглэлтэй холбоотой үйл ажиллагаа явуулах чадамж, адил төстэй үйл ажиллагаа явуулж байсан эсэх туршлага, техник технологи болон санхүүгийн байдлыг судалж үзнэ. Нэмэлт ажил хэрэгжүүлэх чадвар тооцоолох үед худалдан авагч/ажилчны зүгээс шалгаруулалтанд оролцогчдыг шүүн шалгаруулахдаа тодорхой үндэслэлтэй шалгах бөгөөд цаг хугацааны хувьд доод тал нь 7 хоногийн хугацаа олгох болно. Үнэлэлт шалгуур хийх хэм хэмжээ нь сонгон шалгаруулалтын мэдээлэлд тодорхой заагдсан байх бөгөөд үнийн дүнгээс бусад шалгуурын үзүүлэлтүүдийг мөнгөн хэлбэрт шилжүүлсэн байх шаардлагатай. Шалгуур нь бүх талыг хамарсан байх бөгөөд аливаа оролцогчын давуу талыг тооцохгүй болно.

Сонгон шалгаруулалт явуулж эхлэх, шалгуур болон гэрээг баталгаажуулах

Шалгаруулалт нь олон нийтэд нэн даруй тогтсон хугацаатайгаар зарлагдах бөгөөд тухайн орон нутгын оролцох хүсэлтэй төслийн ашиг хүртэгчид болон талуудын төлөөлөгч нар бүгд оролцох эрхтэй. Тухайн сонгон шалгаруулалтын нэр, нийт хөрөнгийн хэмжээ (хөнгөлөлт оролцуулан) зэрэг нь олон нийтэд зарлагдах болно. Сонгон шалгаруулалтын материал хүлээн авах хугацаа өнгөрсөнөөс хойш ирсэн бүх материалыг тухайн оролцогч талд онгойлголгүйгээр буцааж олгоно. Сонгон шалгаруулалт зарласан мөчөөс эхлэн дуусах мөч хүртэл сонгон шалгаруулалт зарлах тухай мэдээний хуулбарыг олон нийтэд хүрэхүйц ил тод газар байршуулах болно. Сонгон шалгаруулалт зарласан тухай мэдээний хуулбарыг оролцогч талуудад цаг алдалгүй тараана. Аливаа сонгон шалгаруулалтын материалыг хүлээн авхад Ассоциацийн бичгээр үйлдсэн урдчилсан зөвшөөрөл хэрэггүй бөгөөд бүх материалуудыг хүлээн авах болно. Ассоциацийн бичгээр үйлдсэн зааварчлагаагүйгээр ямарч оролцогчыг зардал болон төсвийг өндөр хэмжээнд тооцсон хэмээн үзэж хасахыг хориглоно. Сонгон шалгаруулалтын агуулга болон нөхцлүүдтэй зөрчилдсөн мөн түүчлэн ямар нэгэн бүрдүүлэх материалын алдаатай оролцогчдын материалыг үндсэн нөхцөл хангаагүй хэмээн хасах болно. Оролцочид шалгаруулалт эхэлснээс хойш алдаатай болон зөрчилтэй бүрдүүлэх материалыг буцааж авах эрхгүй. Гэвч оролцогчид нь шалгаруулах үйл явцаас ямар нэгэн үл ялих алдаа болон зөрчлийн улмаас хасагдахгүй болно. Шалгаруулалт нь бичиг баримтанд заасны дагуу үнэнч шударга явагдах бөгөөд үүний үндсэн дээр үндсэн нөхцөл хангасан болон үнэлгээний хувьд хамгийн бага зардал санал болгосон оролцогчтой гэрээг байгуулах болно. Тухайн гэрээнд оролцогч тал нь гэрээний үйл ажиллагааг худалдан авагчийн зүгээс тухайн гэрээ дуусгавар болох хугацаанаас өмнө бичгээр сунгах тухай хүсэлт гаргасан тохиолдолд сунгах хүсэлт тавьж болно. Гэрээнд оролцогч тал нь өөрсдийн үйл ажиллагааны нууцаа алдалгүйгээр тухайн гэрээг сунгах хүсэлтээс татагалзах эрхтэй. 18 сараас дээш урт хугацааны гэрээний хувьд үнийн дүнгийн тохиргоог Ассоциацитай зөвлөлдсөний үр дүнд зохион оролцогч талд танилцуулсан томъёогоор тооцоолох болно. Шалгаруулалтын явцад сонгон шалгаруулах хорооны зүгээс хийсэн арифметикийн алдааны залруулгыг хүлээн зөвшөөрхөөс татгалзсан оролцогчдыг материалыг нь нууцлан сонгон шалгаруулалтнаас хасах болно. Гэрээнд оролцогч нь сонгон шалгаруулалтанд тусгагдаагүй болон анх танилцуулсэн материалаас гажсан үйл ажиллагаа зэргийг гүйцэтгэх шаардлагагүй. Сонгогдсон оролцогч болон бусад оролцогчидтой нэмэлт гэрээ хийхгүй бөгөөд гэрээнд оролцогч нь гэрээнд гарын үсэг зурхын тулд танилцуулсан материалыг засаж залруулах эсвэл үнийн саналаа өөрчилж болохгүй. Ассоциацийн зүгээс тухайн оролцогч талыг ил болон далд хэлбэрээр хээл хахууль, авилгад холбогдсон хэмээн тогтоосон тохиолдолд оролцогч талын сонгон шалгаруулалтанд орох эрхийг Ассоциациас тогтоосон хугацаагаар түтгэлзүүлэх болно.

Гэрээт байгууллагууд болон нийлүүлэгчид

Шаардлагатай бол Ассоциациас санхүүжүүлж буй аливаа үйл ажиллагааг хэрэгжүүлж эсвэл ханган нийлүүлж буй аж ахуйн нэгжүүд нь Ассоциацид тухайн үйл ажиллагаатай холбоотой санхүүгийн болон үйл ажиллагааны тайлан бүртгэлээ шалгуулах мөн түүнчлэн Ассоциациас зүгээс томилсон аудитаар хяналт хийлгэх шаардлагатай.

Оролцогч талуудын гомдол санал болон тэдгээрийг зохицуулах

Ассоциаци болон дотоодын өрсөлдөгч талуудын хоорондох гэрээний асуудлыг Монгол улсын Худалдан авалтын тухай хуулийн 7-р бүлэгт заасны дагуу шийдвэрлэнэ.

ХАВСРАЛТ 3

Зээлийг буцааж төлөх хуваарь

* Дээрхи хувиуд нь зээлийг буцааж төлөх хэмжээг хувиар илэрхийлсэн бөгөөд энэ нь Ерөнхий нөхцөлийн 3.03 хэсэгт заасны дагуу Ассоциацийн шийдвэрээр өөрчлөгдөж болно.

Хавсралт

1-р хэсэг. Нэр томъёо:

"Аймаг" гэж зээлдэгчийн засаг захиргааны нэгжийг хэлнэ; "Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээр" гэдэг нь Малын Индэксжүүлсэн Даатгал Төсөлийн хүрээнд 2005 оны 7 сарын 16 нд Олон Улсын Хөгжлийн Сан болон зээлдэгчийн хооронд хийгдсэн "Хөгжлийн Зээлийн гэрээ"-ний шинэчлэн боловсруулсан хэлэлцээр болно. "Хээл Хахуулын Эсрэг Зааварчилгаа" нь төслийн хүрээнд хууль бус үйлдлүүдээс урдчилан сэргийлэх мөн түүнтэй тэмцэх болон төслийн санхүүжүүлэлт болох ОХА болон Дэлхийн Банкны зээл тусламжийг хамгаалан үр ашигтай царцуулах зааварчилгаа юм. "ҮДБ" гэж ҮДБ-ний баталгааны стандарт загварт тусгагдсан нөхцлөөр зохицуулагдах буюу Алдагдлыг зогсоох давхар даатгалын гэрээ болон энэхүү гэрээний 4 дүгээр хавсралтын 6.а дэд хэсэгт заасан нөхцөлийн дагуу оролцогч даатгалын компаниудын борлуулж, үйлчилж байгаа даатгалын бүтээгдэхүүнийг хэлнэ; "ҮДБ-ний нөөцийн данс" гэж энэхүү гэрээний 2-р зүйлийн 2.02.(с) хэсэгт хамаарах дансыг хэлнэ; "ҮДБ-ний баталгааны стандарт загвар" гэж энэхүү гэрээний 4 дүгээр хавсралтын 5.а дэд хэсэгт заасан нөхцөлийн дагуу малын даатгалын баталгаа эзэмшигчид ҮДБ-ний нөхөн төлбөр олгохоор Ассоциацийн хүлээн зөвшөөрсөн хугацаа, нөхцлийн дагуу оролцогч даатгалын компаниудын борлуулж буй ҮДБ-ний баталгааны стандарт загварыг хэлнэ. "Ангилал" гэж энэхүү гэрээний 4-р хэсгийн 2-р хавсралтад хүснэгтээр үзүүлсэн зүйлүүдийг ангилсныг хэлнэ. "Зөвлөх ажилтны зааварчилгаа" гэдэг нь Дэлхийн Банкнаас 2004 онд гарган 2006 онд шинэчилсэн " Зөвлөх ажилтан сонгох заавар" болнов "Нөхцөлт зээл" гэж энэхүү гэрээний 4 дүгээр хавсралтын 5 (f) дэд хэсэгт нийцүүлэн төсөл хэрэгжүүлэх зааврын дагуу төслийн А.2(i) хэсэгт тусгасан зээл бөгөөд энэ нь алдагдлыг зогсоох түвшингээс илүү гарсан ҮДБ-ний нөхөн төлбөрт зориулагдсан болно. "Эрсдэл" гэж Төслийн А.1 (i) хэсэгт тусгагдсаны дагуу явуулах хагас жилийн мал тооллогын үндэс болон түүвэр судалгааны үр дүн дээр жил бүр, сум тус бүрийн индексжүүлсэн малын хорогдолд тооцох үүднээс ҮДБ-ний баталгааны стандарт загвар, Алдагдлыг зогсоох давхар даатгалын гэрээ тус бүрт тодорхойлж өгсөн эрсдэлийг хэлнэ. "Хүчин төгөлдөр нэхэмжлэл" гэж эрсдэл гарсан тохиолдолд малын даатгалд даатгалын баталгаа эзэмшигч, мөн түүний нэрийн өмнөөс бусад этгээд ҮДБ-ний гэрээнд заасан нөхцөлийн дагуу оролцогч даатгалын компанийн эсрэг ТХН-ээр дамжуулан гаргаж байгаа нэхэмжлэл; мөн "хүчин төгөлдөр нэхэмжлэл" гэж хүчин төгөлдөр дээрх аливаа нэхэмжлэлийг хэлнэ. "Санхүүгийн удирдлагын заавар" гэж МДНТД, ҮДБ-ний нөөцийн данс, нөхцөлт зээл, төлбөрийн данс зэргийн үйл ажиллагааг удирдан зохион байгуулахын тулд Хөгжлийн Зээлийн Шинэчилсэн хэлэлцээрийн 4 дүгээр хуваарийн 3(a)(ii) дэд хэсэгт нийцүүлж, Ассоциацийн хүлээн зөвшөөрснөөр зээлдэгчийн боловсруулан баталсан зааврыг хэлнэ. "Ерөнхий нөхцөл" гэж энэхүү гэрээний хуваарийн 2 дугаар хэсгийн 4-т нийцүүлэн ОХА-ын 2005 оны 7-р сарын 1-нд бтатлагдсан зээл тусламж авах нөхцлийг хэлнэ (2006 оны 10-р сарын 15-нд засварлагдсан). "Ажлын зардлын нэмэгдэл" гэдэг нь нийгмийн ажилтны цалигаас гадна төсөлийн үйл явцтай холбогдон гарах зардал буюу байрны түрээс, ТХН-ийн төслийн зохицууллатын хүрээнд гарсан унааны зардал, мэдээлэл түгээх болон банкны хураамжны зардал, ТХН болон ТУХ-ы томилолтын зардалыг хэлнэ. "Малын Индексжүүлсэн Даатгал" програм нь Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээрийн 4 дүгээр хуваарийн 4-6 дугаар дэд хэгийн А-д заасны дагуу зээлдэгчийн зүгээс зохион байгуулан авч хэрэгжүүлах ажиллагаа юм. "Даатгалын мөчлөг" гэдэг нь ҮДБ-ны 2010/2011, 2011/2012, 2012/2013 онуудын мөчлөг бөгөөд тухайн оны 4-р сард эхлэн дараа жилийн 8-р сарын 31-ийг хүртэл үргэлжлэнэ. "Солонгос улсаас үзүүлж буй тусламжийн гэрээ" нь Зээлдэгч болон Бүгд Найрамдах Солонгос Улсын хамтын ажжиллагааны үр дүнд үзүүлж буй тусламжийн гэрээ юм. Нийт 700,000 ам.долларын тусламж нь төслийн А.1, А.3, С, D болон E-дэх заалтуудыг санхүүжүүлэхэд ашиглагдана. "МДНТД" нь Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээрийн 2-р зүйлийн 2.02(d) хэсэгт дурьдагдсан төвлөрсөн дансыг хэлнэ. "Мал" гэж энэхүү гэрээ болон Малын индексжүүлсэн даатгалын хөтөлбөрийн зорилгын дагуу сонгогдсон аймгуудад байгаа үхэр, хонь,ямаа,тэмээ, адууг хэлнэ. "Малын даатгалын баталгаа эзэмшигч" гэж ҮДБ-ний даатгалын хураамж, оролцогч даатгалын компаниас ҮДБ-ний гэрээ болон гэрчилгээ хүлээн авсан малчин (малчин өрх), эсвэл малчдын бүлэг хоршоог хэлнэ. "Үндсэн төсөл" гэдэг нь Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээрийн 2 дугаар хавсралтад тусгагдсан төслийг хэлнэ. "Оролцогч даатгалын компаниуд" гэж зээлдэгчийн нутаг дэвсгэрт даатгалын үйл ажиллагаа явуулах эрхтэй бөгөөд төсөл хэрэгжүүлэх зааварт заасны дагуу Ассоциацийн хүлээн зөвшөөрснөөр төсөл хэрэгжүүлэх зааварт тусгагдах шаардлага, болзлыг хангаж малын индексжүүлсэн даатгал хөтөлбөрт оролцох эрх авсан даатгалын компаниудыг хэлнэ. "Төлбөрийн данс" гэж Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээрийн 2.02 (e) хэсэгт хамаарах дансыг хэлнэ. "Хангамж үйлчилгээ худалдан авах удирдамж" нь ассоциацийн зүгээс 2004 оны 5-р сард гаргасан Олон Улсын Сэргээн Босголт Хөгжлийн Банкны (Дэлхийн Банк) болон Олон Улсын Хөгжлийн Ассоциацийн зээлийн хүрээнд зохион байгуулагдаж буй ажлын хамгамж үйлчилгээ худалдан авах удирдамжыг хэлнэ. (2006 оны 10-р сард шинэчлэгдсэн) "Хангамж үйлчилгээ худалдан авах төлөвлөгөө" гэдэг нь зээлдэгчийн зүгээс _____________________ хоорондох хугацааг хамрах төлийн хамгамж үйлчилгээ худалдан авах төлөвлөгөөг хангамж үйлчилгээ худалдан авах төлөвлөгөөний 1.16-р дэд хэсэг болон Зөвлөгөөний удирдамжийн 1.24-р дэд хэсэгт тусгасны дагуу боловсруулсаныг хэлэх бөгөөд ижил төрлийн бараа, үйлчилгээ худалдан авах ажиллагааны төлөвлөгөөг шинэчлэн боловсруулна. "Төсөл хэрэгжүүлэх заавар", товчилбол "ТХЗ" гэж Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээрийн 4 дүгээр хавсралтын 3 дахь дэд хэсэгт заасан нөхцөлийн дагуу, Ассоциацийн хүлээн зөвшөөрсөн төслийн хэрэгжилтийн үе дэх үйл ажиллагаа, санхүү, захиргааны горим журмыг тогтоож өгөх зорилгоор зээлдэгчийн боловсруулах зааврыг хэлэх бөгөөд Ассоциацитай урьдчилсан тохиролцсоны дагуу уг зааварт өөрчлөлт хийж болно. "Төсөл хэрэгжүүлэх нэгж", товчилбол "ТХН" гэж Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээрийн 4 дүгээр хавсралтын 1(b) дэд хэсэгт заасан нөхцөлийн дагуу зээлдэгчийн Сангийн яамны харьяанд байгуулагдсан төсөл хэрэгжүүлэх нэгжийг хэлнэ. "Төслийн удирдах хороо", товчилбол "ТУХ" гэж Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээрийн 4 дүгээр хавсралтын 1(а) дэд хэсэгт заасан нөхцөл болон төсөл хэрэгжүүлэх зааврын зохих зүйл заалтад нийцүүлэн Малын индексжүүлсэн даатгал хөтөлбөрийг ерөнхий хяналт, удирдамжаар хангах зорилгоор зээлдэгчийн Сангийн яамны харьяанд байгуулсан хороог хэлнэ. "Сонгогдсон аймгууд" гэж зээлдэгч нь төслийг хэрэгжүүлэхийн тулд Ассоциацитай урьдчилан тохиролцсоны үндсэн дээр дараах цаг хугацааны төлөвлөгөөний дагуу сонгон шалгаруулж байгаа аймгуудыг хэлнэ: 2010/2011 оны даатгалын мөчлөгд: Ассоциацитай зөвшилцсөний дагуу Увс, Баянхонгор, Хэнтий, Сүхбаатар аймгууд дээр шинээр 6 аймаг нэмэхээр болсон. 2011/2012 оны даатгалын мөчлөгд: Ассоциоцитай зөвшилцсөний дагуу 2010/2011 оны мөчлөгийн аймгууд дээр шинээр 6 аймаг нэмэхээр болсон. 2012/2013 оны даатгалын мөчлөгд: Ассоциоцитай зөвшилцсөний дагуу зээлдэгчийн бүх 21 аймгийн хэмжээнд хамрах болно. "Сум" гэж зээлдэгчийн орон нутгийн засаг захиргааны нэгжийг хэлнэ. "Алдагдлыг зогсоох давхар даатгалын стандарт гэрээ" нь Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээрийн 4 дүгээр хавсралтын 5(d) хэсэгт заасан нөхцөлийн дагуу зээлдэгчийн зүгээс гаргасан гэрээ бөгөөд Ассоциацитай урьдчилсан тохиролцсоны дагуу нэмэлт өөрчлөлтүүд хийж болно. "Алдагдлыг зогсоох хэмжээ" гэж Алдагдлыг зогсоох давхар даатгалын гэрээнд зааж өгсөн хэмжээнээс илүү гарсан эрсдэлийг харгалзан үзэж, ҮДБ-ний гэрээнд заасан нөхцөлийн дагуу оролцогч даатгалын компаниудын эсрэг малын даатгалд хамpагдаж гэрээ байгуулсан этгээдүүдийн гаргасан хүчин төгөлдөр нэхэмжлэлийн хэсгийг хэлнэ. "Алдагдлыг зогсоох давхар даатгалын гэрээ" гэж Хөгжлийн Зээлийн Шинэчилсэн Хэлэлцээрийн 4 дүгээр хавсралтын 5(d) хэсэгт заасан нөхцөлийн дагуу зээлдэгч болон оролцогч даатгалын компаниудын хооронд байгуулах, Алдагдлыг зогсоох давхар даатгалын стандарт гэрээний загвартай гэрээг хэлнэ; мөн "Алдагдлыг зогсоох давхар даатгалын гэрээ" гэж ийм аргаар байгуулсан аливаа гэрээг хэлнэ. "Швейцарын буцалтгүй тусламжийн гэрээ" нь Зээлдэгч болон Швейцарын холбооны улсыг төлөөлөх ассоциацийн хоорондын 2009 оны 4-р сарын 6-ны өдөр төслийн C хэсэгт нэмэлт санхүүжилт хийх зорилготой хийгдсэн гэрээ юм.

2-р хэсэг. Ерөнхий Нөхцөлд Хийгдсэн Өөрчлөлтүүд

2005 оны 7-р сарын 1-ний өдөр гарсан Ассоциацийн зүгээс зээл болон буцалтгүй тусламж үзүүлэх ерөнхий нөхцөлд доорхи өөрчлөлтүүд хийгдсэн:

"6.,02-р хэсэг. Төслийн үйл ажиллагааг Ассоциацийн зүгээс зогсоох

... (I) Цаашид төсөл хэрэгжүүлэх эрхийг түдгэлзүүлэх. Төслийг санхүүжүүлж буй Банк болон ассоциациин зүгээс төсөл хэрэгжүүлж буй нэгжийг төслийн санхүүжилттэй холбогдон хээл хахууль, ил болон далдуур хууран мэхлэх үйл ажиллагаатай холбогдсон гэж үзвэл тухайн нэгжийн цаашид төсөл хэрэгжүүлэх эрхийг түтгэлзүүлэн болно.

CREDIT NUMBER ______-MN

Financing Agreement

(Additional Financing for the Index Based Livestock Insurance Project)

between

MONGOLIA

and

INTERNATIONAL DEVELOPMENT ASSOCIATION

Dated , 2010

FINANCING AGREEMENT

Agreement dated __________________________, 2010, entered into between MONGOLIA ("Recipient") and INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") for the purpose of providing additional financing for the Original Project (as defined in the Appendix to this Agreement). The Recipient and the Association hereby agree as follows:

ARTICLE I — GENERAL CONDITIONS; DEFINITIONS

The General Conditions (as defined in the Appendix to this Agreement) constitute an integral part of this Agreement. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the General Conditions, the appendix to this Agreement or the Amended and Restated Development Credit Agreement, as the case may be.

ARTICLE II — FINANCING

The Association agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a credit in an amount equivalent to ___________________ Special Drawing Rights (SDR _______________) (variously, "Credit" and "Financing") to assist in financing the project described in Schedule 1 to this Agreement ("Project").[1] The Recipient may withdraw the proceeds of the Financing in accordance with Section IV of Schedule 2 to this Agreement. The Maximum Commitment Charge Rate payable by the Recipient on the Unwithdrawn Financing Balance shall be one-half of one percent (1/2 of 1%) per annum.

2.04 The Service Charge payable by the Recipient on the Withdrawn Credit Balance shall be equal to three-fourths of one percent (3/4 of 1%) per annum.

2.05. The Payment Dates are [May 15] and [November 15] in each year.[2]

2.06. The principal amount of the Credit shall be repaid in accordance with the repayment schedule set forth in Schedule 3 to this Agreement.

2.07. The Payment Currency is [Dollar][3].

ARTICLE III — PROJECT

The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient shall carry out the Project in accordance with the provisions of Article IV of the General Conditions. Without limitation upon the provisions of Section 3.01 of this Agreement, and except as the Recipient and the Association shall otherwise agree, the Recipient shall ensure that the Project is carried out in accordance with the provisions of Schedule 2 to this Agreement.

ARTICLE IV — EFFECTIVENESS; TERMINATION

4.01. The Additional Condition of Effectiveness consists of the following, namely, that, the Amended and Restated Development Credit Agreement, the amendment to the Swiss Grant Agreement (aligning this latter agreement with the Project restructuring), and the Korean Grant Agreement have been executed on behalf of the Recipient by an authorized representative of the Recipient, and all conditions precedent to their effectiveness (other than the effectiveness of this Agreement) have been fulfilled.

4.02. The Effectiveness Deadline is the date ninety (90) days after the date of this Agreement.

4.03. For purposes of Section 8.05 (b) of the General Conditions, the date on which the obligations of the Recipient under this Agreement (other than those providing for payment obligations) shall terminate is twenty years after the date of this Agreement.

ARTICLE V — REPRESENTATIVE; ADDRESSES

5.01. The Recipient's Representative is its Minister of Finance.

5.02. The Recipient's Address is:

Ministry of Finance

Government Building 2

United Nations' Street 5/1

Ulaanbaatar, 210646

Facsimile:

976-11-262272

5.03. The Association's Address is:

International Development Association

1818 H Street, N.W.

Washington, D.C. 20433

United States of America

Cable: Telex: Facsimile:

INDEVAS 248423 (MCI) 1-202-477-6391

Washington, D.C.

AGREED at ______________, __________, as of the day and year first above written.

MONGOLIA

By

Authorized Representative

INTERNATIONAL DEVELOPMENT ASSOCIATION

By

Authorized Representative

SCHEDULE 1

Project Description

The objective of the Project is to ascertain the viability of Index Based Livestock Insurance Program in Mongolia to reduce the impact of livestock mortality for herders' livelihoods, through: (i) scaling up the Index Based Livestock Insurance Program in Selected Aimags; and (ii) building the institutional capacity, and legal and institutional framework, for the sustainability of the Index Based Livestock Insurance Program.

The Project consists of the Original Project.

SCHEDULE 2

Project Execution

Section I. Implementation Arrangements

A. Institutional Arrangements.

The Recipient undertakes to carry out the Project pursuant to the implementation arrangements set forth in Article II, sub-sections 2.02(c), (d) and (e), and in Schedule 4 (paragraphs 1 through 13) to the Amended and Restated Development Credit Agreement.

B. Anti-Corruption

The Recipient shall ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines.

Section II. Project Monitoring, Reporting and Evaluation

A. Project Reports

The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 4.08 of the General Conditions and paragraph 9 of Schedule 4 to the Amended and Restated Development Credit Agreement, and on the basis of the indicators set forth in Schedule 6 to the Amended and Restated Development Credit Agreement.

B. Financial Management, Financial Reports and Audits

1. The Recipient shall maintain or cause to be maintained a financial management system in accordance with the provisions of Section 4.09 of the General Conditions.

2. Without limitation on the provisions of Part A of this Section, the Recipient shall prepare and furnish to the Association by not later than February 15, and August 15 of each year, interim unaudited financial reports for the Project covering the preceding calendar semester (i.e. July to December and January to June, respectively), in form and substance satisfactory to the Association.

3. The Recipient shall have its Financial Statements, and the records and accounts for the LIIP Account, BIP Reserve Account and Payment Account, audited in accordance with the provisions of Section 4.09 (b) of the General Conditions. Each audit of the Financial Statements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period shall be furnished to the Association not later than six (6) months after the end of such period.

Section III. Procurement

A. General

1. Goods. All goods required for the Project and to be financed out of the proceeds of the Financing shall be procured in accordance with the requirements set forth or referred to in Section I of the Procurement Guidelines, and with the provisions of this Section.

2. Consultants' Services. All consultants' services required for the Project and to be financed out of the proceeds of the Financing shall be procured in accordance with the requirements set forth or referred to in Sections I and IV of the Consultant Guidelines, and with the provisions of this Section.

3. Definitions. The capitalized terms used below in this Section to describe particular procurement methods or methods of review by the Association of particular contracts, refer to the corresponding method described in the Procurement Guidelines, or Consultant Guidelines, as the case may be.

B. Particular Methods of Procurement of Goods

1. International Competitive Bidding. Except as otherwise provided in paragraph 2 below, goods shall be procured under contracts awarded on the basis of International Competitive Bidding.

2. Other Methods of Procurement of Goods. The following table specifies the methods of procurement, other than International Competitive Bidding, which may be used for goods and works. The Procurement Plan shall specify the circumstances under which such methods may be used:

C. Particular Methods of Procurement of Consultants' Services

1. Quality- and Cost-based Selection. Except as otherwise provided in paragraph 2 below, consultants' services shall be procured under contracts awarded on the basis of Quality and Cost-based Selection.

2. Other Methods of Procurement of Consultants' Services. The following table specifies methods of procurement, other than Quality and Cost-based Selection, which may be used for consultants' services. The Procurement Plan shall specify the circumstances under which such methods may be used.

D. Review by the Association of Procurement Decisions

Except as the Association shall otherwise determine by notice to the Recipient, the following contracts shall be subject to Prior Review by the Association: (a) each contract for goods and services (other than consultants' services) estimated to cost the equivalent of USD20,000 or more; (b) each contract for goods and services (other than consultants' services) procured under Direct Contracting; (c) each contract for consultants' services provided by a firm estimated to cost the equivalent of USD50,000 or more, procured on the basis of Quality- and Cost-based Selection, Quality-Based Selection, Least-cost Selection or Selection Based on Consultants' Qualifications; and (d) each contract for consultants' services provided by a firm estimated to cost the equivalent of USD20,000 or more, procured on the basis of Single Source Selection. In addition, with respect to each contract for the employment of individual consultants estimated to cost the equivalent of USD20,000 or more, the report on the qualifications and experience of all evaluated candidates, the terms of reference and the terms of employment of the consultants shall be subject to prior approval by the Association. All other contracts shall be subject to Post Review by the Association

Section IV. Withdrawal of the Proceeds of the Financing

General

1. The Recipient may withdraw the proceeds of the Financing in accordance with the provisions of Article II of the General Conditions, this Section, and such additional instructions as the Association shall specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time to time by the Association and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the table in paragraph 2 below.

2. The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Financing ("Category"), the allocations of the amounts of the Financing to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category:

B. Withdrawal Conditions; Withdrawal Period

1. Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made for payments made prior to the date of this Agreement;

2. (a) Notwithstanding the Recipient's fulfillment of the condition established in sub-paragraph 1(c) of this Section IV.B, no withdrawal shall be made from Category (4) unless the Association shall have received evidence, satisfactory to the Association, that:

(i) the Recipient has opened the LIIP Account, BIP Reserve Account and Payment Account in a commercial bank acceptable to the Association, as provided for in Article II, Section 2.02(c), (d) and (e) of, as well as paragraph 5(c) of Schedule 4 to, the Amended and Restated Development Credit Agreement;

(ii) the Recipient and the Participating Insurance Companies have entered into Stop-Loss Reinsurance Agreements, as provided for in paragraph 5(d) of Schedule 4 to the Amended and Restated Development Credit Agreement, and the Association has been furnished with a legal opinion of counsel acceptable to the Association confirming that each Stop-Loss Reinsurance Agreement has been duly authorized and is legally binding upon the parties in accordance with its terms;

the Participating Insurance Companies have issued the BIP insurance policies certificates for which withdrawals are being requested; the Covered Risks under the BIP indemnity scheme have occurred and Eligible Claims have been filed on behalf of Livestock Insurance Policy Holders; the Association has been furnished with certificate issued by the Recipient, through the PIU, certifying that BIP Reserve Account has been exhausted; and the Recipient has entered into an agency agreement with a financial intermediary as provided for in paragraph 5(e) of Schedule 4 to the Amended and Restated Development Credit Agreement.

(b) For purposes of withdrawals under Category (4), the Recipient shall furnish to the Association, in form and substance satisfactory to the Association, documentation relating to the Eligible Claims and payments made therefor, including a certificate issued by the Recipient through the PIU's Project Director, and the Recipient's Minister of Finance, representing that the conditions listed in sub-paragraph (a) above have been met and are still in effect, in respect of the Eligible Claims at the time the relevant withdrawals are being made.

3. In the event that the Recipient incurs expenditures eligible for financing under this Agreement, the Amended and Restated Development Credit Agreement, and the Korean Grant Agreement, indistinctly, the Recipient undertakes to first utilize and exhaust any funds available and outstanding from time to time under the Korean Grant Agreement, and the Amended and Restated Development Credit Agreement for the financing of such Eligible Expenditures before submitting any withdrawal application and or statement of expenditures for said Eligible Expenditures under this Credit.

3. The Closing Date is [March 31, 2014][5].

Attachment to Schedule 2

National Competitive Bidding Procedures, Mongolia

The following provisions shall apply in respect of contracts for goods and works financed under the Project and procured according to National Competitive Bidding procedures.

Applicable Procurement Procedure

(i) Bidding shall be conducted in accordance with the Open Bidding Procedure, as defined in Chapter Two of the Public Procurement Law of Mongolia dated December 1, 2005 (as amended through February 6, 2007), and related provisions.

Participation in Bidding and Preferences

(ii) Recipient-owned enterprises in Mongolia shall be eligible to participate in bidding only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the Recipient or the procuring entity.

(iii) Prospective bidders shall be permitted to request bidding documents either in person or by mail upon submission of a written application. Bidding documents shall be sold to anyone who is willing to pay the required fee for the bidding documents, and no other conditions shall be imposed on the sale of the bidding documents. The bidding documents shall be delivered, at the prospective bidders' preference, either by hand or by mail or courier, provided that the bidder is willing to pay the mail or courier delivery charges, which should be specified in the Invitation for Bids. Each bidder shall be allowed to purchase only one set of the bidding documents for a given NCB tender. No limitations shall be imposed on any bidder as to the number of NCB tenders in which he may participate during a given period of time.

(iv) Interested foreign bidders from eligible countries shall be allowed to participate without being required to associate or form joint ventures with local bidders. Foreign bidders shall be eligible to participate in bidding under the same conditions as local bidders. Mongolian bidders and goods of Mongolian origin shall be given no preference over foreign bidders, either in the bidding process or in the evaluation of bids.

(v) Prior registration shall not be a requirement for any bidder to participate in bidding.

(vi) Pre-qualification of contractors shall not be required, except in the case of large or complex works and with the prior written concurrence of the Association.

Advertising, Time for Bid Preparation

(vii) Invitations to bid shall be advertised in at least one widely circulated national newspaper. Potential bidders shall be allowed to purchase bidding documents up to 24 hours prior to the deadline for the submission of bids.

Standard Bidding Documents

(viii) Standard bidding documents, acceptable to Association, shall be used. The bidding documents shall provide clear instructions on how bids should be submitted, how prices should be offered, and the place and time for submission and opening of bids. Bidders shall be allowed to submit bids by hand, by mail or by courier.

Qualification Criteria and Evaluation Criteria

(ix) Qualification criteria shall be clearly specified in the bidding documents, and all criteria so specified, and only criteria so specified, shall be used to determine whether a bidder is qualified. The evaluation of the bidder's qualifications should be conducted separately from the technical and commercial evaluation of the bid. When post qualification is applied, the assessment of bidders' qualifications shall be carried out only after the preliminary and detailed evaluation of bids has been completed by the Purchaser/Employer and, in doing so, the qualifications of the bidder who has submitted the lowest evaluated substantially responsive bid shall be assessed first. The evaluation of a bidder's qualifications shall only take into account the bidder's capacity and resources to perform the contract, in particular its experience and past performance on similar contracts, capabilities with respect to personnel, equipment and construction or manufacturing facilities and financial position. In carrying out the post-qualification assessment, the Employer/Purchaser shall exercise reasonable judgment in requesting, in writing, from a bidder only missing factual or historical supporting information related to the bidder's qualifications and shall provide a reasonable time period (that is, a minimum of 7 days) to the bidder to provide his response.

(x) Evaluation criteria to be used in the evaluation of bids shall be clearly specified in the bidding documents, and evaluation criteria other than price shall be quantified in monetary terms. All evaluation criteria so specified, and only the evaluation criteria so specified, shall be taken into account in bid evaluation. Merit points shall not be used in bid evaluation.

Bid Opening, Evaluation and Award of Contract

(xi) Bids shall be opened in public, immediately upon the stipulated deadline for submission of bids. Bidders' representatives and the project's beneficiaries from the concerned local community who choose to attend shall be allowed to attend. The name of the bidder and total amount of each bid, including discounts, shall be read aloud and recorded in the Bid Opening Record. Bids received after the deadline for bid submission shall be rejected and returned to the bidders unopened. Immediately after completion of the bid opening proceedings, a copy of the Bid Opening Record shall be posted at a prominent location, accessible to the public, outside the office of the concerned procuring entity and shall be retained at the same location until the award of contract has been notified. A copy of the Bid Opening Record shall be promptly provided to all bidders who submitted bids.

(xii) All bids shall not be rejected or new bids invited without Association's prior written concurrence.

(xiii) No bid shall be rejected merely on the basis of a comparison with the owner's estimated cost or budget ceiling without the Association's prior written concurrence.

(xiv) A bid containing material deviations from or reservations to the terms, conditions or specifications of the bidding documents shall be rejected as not substantially responsive. A bidder shall not be permitted to withdraw material deviations or reservations once bids have been opened. Bidders shall not be eliminated from detailed evaluation on the basis of non-material, minor deviations or reservations.

(xv) The evaluation of bids shall be done in strict adherence to the criteria specified in the bidding documents, and contracts shall be awarded to the qualified bidder offering the lowest evaluated and substantially responsive bid.

(xvi) Bidders shall be requested to extend the validity of their bids only under exceptional circumstances and, in all such cases, the Employer/Purchaser shall communicate such request in writing to all bidders before the date of expiry of their bids. Bidders shall have the right to refuse to grant such an extension of the validity of their bids without forfeiting their bid securities.

(xvii) In the case of contracts of more than 18 months' duration, the bidding documents and the resultant contract shall provide for price adjustment, based on a formula acceptable to the Association, which shall be disclosed to the bidders in the bidding documents.

(xviii) A bidder which refuses to accept arithmetical corrections made by the Evaluation Committee during the evaluation of its bid shall not be allowed to withdraw its bid without forfeiting its bid security.

(xix) A bidder shall not be required, as a condition for award, to undertake obligations not specified in the bidding documents or otherwise to modify its bid as originally submitted.

(xx) There shall be no post-bidding negotiations with the lowest evaluated bidder or any other bidder. No bidder shall be required, as a condition for the award of contract, to change his bid price or otherwise materially alter his bid after it has been submitted.

(xxi) A bidder declared ineligible by the Association, based on a determination by the Association that the bidder has engaged in corrupt, fraudulent, collusive or coercive practices in competing for or in executing an Association-financed contract, shall be ineligible to be awarded an Association-financed contract during the period of time determined by the Association.

Suppliers and Contractors

(xxii) Bidding documents and contracts under national competitive bidding procedures financed by the Association shall include a provision requiring suppliers and contractors to permit the Association to inspect their accounts and records relating to the bid submission and the performance of the contract by the supplier and/or contractor, as the case may be, and to have them audited by auditors appointed by the Association, if so required by the Association.

Complaints by Bidders and Handling of Complaints

(xxiii) The provisions of Chapter Seven of the Public Procurement Law of Mongolia on the settlement of disputes shall apply to all Association-financed contracts awarded by National Competitive Bidding.

SCHEDULE 3

Repayment Schedule[6]

* The percentages represent the percentage of the principal amount of the Credit to be repaid, except as the Association may otherwise specify pursuant to Section 3.03 (b) of the General Conditions.

APPENDIX

Section I. Definitions

"Aimag" means a province of the Recipient. "Amended and Restated Development Credit Agreement" means the Development Credit agreement entered into by and between the Recipient and the International Development Association on June 17, 2005 for the Index-Based Livestock Insurance Project (Credit No. 4069-MN), as amended and restated pursuant to the agreement entered into by and between the same parties on the same date of this Agreement. "Anti-Corruption Guidelines" means the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006. "BIP" means the insurance product governed by the provisions of the BIP Standard Policy Form, and commercialized and serviced by the Participating Insurance Companies in accordance with the Stop-Loss Reinsurance Agreements and the provisions of paragraph 6(a) of Schedule 4 to the Amended and Restated Development Credit Agreement. "BIP Reserve Account" means the account referred to in Section 2.02(c) of Article II of the Amended and Restated Development Credit Agreement. "BIP Standard Policy Form" means the standard form of BIP insurance policy to be issued by the Participating Insurance Companies, under terms and conditions acceptable to the Association, to provide a BIP coverage to Livestock Insurance Policy Holders in accordance with paragraph 5(a) of Schedule 4 to the Amended and Restated Development Credit Agreement. "Category" means a category set forth in the table in Section IV of Schedule 2 to this Agreement. "Consultant Guidelines" means the "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" published by the Bank in May 2004 and revised in October 2006. "Contingent Debt Facility" means the credit facility established under Part A.2(i) of the Project in accordance with the Project Implementation Manual for purposes of servicing any contingent payments in respect of Stop-Loss Amounts due on Eligible Claims under the BIP insurance scheme, as provided in the Stop-Loss Reinsurance Agreements, pursuant to paragraph 5(f) of Schedule 4 of the Amended and Restated Development Credit Agreement. "Covered Risks" means the risks defined in the BIP Standard Policy Form and Stop-Loss Reinsurance Agreements, associated to the index-based livestock mortality, per Soum, determined on the basis of the semi-annual censuses or sample surveys to be carried out under Part A.1(i) of the Project. "Eligible Claims" means claims in respect of Livestock affected by the occurrence of a Covered Risks made by, or on behalf of, Livestock Insurance Policy Holders to Participating Insurance Companies, in accordance with the terms and conditions of a BIP insurance policy; and "Eligible Claim" means any of such Eligible Claims. "Financial Management Manual" means the manual, satisfactory to the Association, adopted by the Recipient in accordance with the provision of paragraph 3(a)(ii) of Schedule 4 to the Amended and Restated Development Credit Agreement, in order manage the operation of the LIIP Account, the BIP Reserve Account, the Contingent Debt Facility and the Payment Account, as such manual may be further amended from time to time with the prior agreement of the Association. "General Conditions" means the "International Development Association General Conditions for Credits and Grants", dated July 1, 2005 (as amended through October 15, 2006) , with the modifications set forth in Section II of this Appendix. "Incremental Operating Costs" means expenditures for rental of office space, vehicles' operation and maintenance, in-country travel allowances for PIU staff, banking services and costs for information dissemination, incurred by the PIU in connection with the management and coordination of the Project, as well as travel allowances and per diem for members of the Project Steering Committee, which expenditures would not have been incurred absent the Project, but excluding salaries of civil servants. "Index-Based Livestock Insurance Program" means the program established by the Recipient under Part A of the Project in accordance with the provisions of paragraphs 4 through 6 of Schedule 4 to the Amended and Restated Development Credit Agreement. "Insurance Cycle" means each of the BIP cycles for the years 2010/11, 20011/12 and 2012/13, each commencing in April of each year through August 31 of the following year. "Korean Grant Agreement" means the agreement of the same date of this Agreement, entered into by and between the Recipient and the Association, acting as administrator of funds granted by the Republic of Korea, and pursuant to which the Association has agreed to extend a Grant in the amount of seven hundred thousand United States Dollars (USD700,000) to the Recipient for purposes of cofinancing Parts A.1, A.3, C, D and E of the Project. "LIIP Account" means the pooling account referred to in Section 2.02(d) of Article II of the Amended and Restated Development Credit Agreement. "Livestock" means for the purposes of the Index-Based Livestock Insurance Program and this Agreement, the cattle, yaks, goats, sheep, camels and horses in the Selected Aimags. "Livestock Insurance Policy Holders" means an individual herder (household), or group of herders, who owns Livestock and to whom a BIP insurance policy has been issued by any of the Participating Insurance Companies, in consideration of the payment of BIP premiums. "Original Project" means the Project described Schedule 2 to the Amended and Restated Development Credit Agreement. "Participating Insurance Companies" means the insurance companies duly licensed by the Recipient to carry out insurance business in Mongolia, and eligible to participate in the Index-Based Livestock Insurance Program in accordance with criteria acceptable to the Association, as further set forth in the Project Implementation Manual. "Payment Account" means the account referred to in Section 2.02(e) of Article II of the Amended and Restated Development Credit Agreement. "Procurement Guidelines" means the "Guidelines: Procurement under IBRD Loans and IDA Credits" published by the Association in May 2004 and revised in October, 2006. "Procurement Plan" means the Recipient's procurement plan for the Project, dated _____[7] and referred to in paragraph 1.16 of the Procurement Guidelines and paragraph 1.24 of the Consultant Guidelines, as the same shall be updated from time to time in accordance with the provisions of said paragraphs. "Project Implementation Manual" means the manual, satisfactory to the Association, adopted on [____________] by the Recipient in accordance with the provision of paragraph 3 of Schedule 4 to the Amended and Restated Development Credit Agreement, establishing the operational, financial and administrative procedures for the implementation of the Project, as such manual may be further amended from time to time with the prior agreement of the Association. "PIU" means the project implementation unit to be maintained within the Recipient's Ministry of Finance pursuant to paragraph 1(b) of Schedule 4 to the Amended and Restated Development Credit Agreement. "Project Steering Committee" means the committee to be maintained within the Recipients's Ministry of Finance to provide oversight and guidance for the Index-Based Livestock Insurance Program, in accordance with paragraph 1(a) of Schedule 4 to the Amended and Restated Development Credit Agreement and the relevant provisions of the Project Implementation Manual. "Selected Aimags" means those Aimags selected from time to time by the Recipient with the prior concurrence of the Association in accordance with the following schedule:

for the Insurance Cycle 2010/11: the Aimags of Uvs, Bayankhogor, Khentii and Sukhbaatar plus up to six (6) additional Aimags to be agreed with the Association; for the Insurance Cycle 2011/12: the Aimags covered by the Project during Insurance Cycle 2010/11 plus up to six (6) additional Aimags to be agreed with the Association; and for the Insurance Cycle 2012/13: any and/or all twenty one (21) Aimags of the Recipient as agreed with the Association. "Soum" means a rural district of the Recipient. Standard Stop-Loss Reinsurance Agreement" means the standard agreement drawn up by the Recipient in accordance with the provisions of paragraph 5(b) of Schedule 4 to the Amended and Restated Development Credit Agreement and revised from time to time, in a manner and substance and with terms and conditions acceptable to the Association. "Stop-Loss Amount" means that portion of an Eligible Claim under a BIP insurance policy which is in excess of a limit defined in the relevant Stop-Loss Reinsurance Agreement. "Stop-Loss Reinsurance Agreement" means the agreement in the form of the Standard Stop-Loss Reinsurance Agreement, to be entered by and between the Recipient and each of the Participating Insurance Companies, pursuant to paragraph 5(d) of Schedule 4 to the Amended and Restated Development Credit Agreement. "Swiss Grant Agreement" means the agreement dated April 6, 2009, entered into by and between the Recipient and the Association, acting as administrator of funds granted by the Government of the Swiss Confederation, and pursuant to which the Association has agreed to extend a grant to the Recipient for purposes of cofinancing Part C of the Project.

Section II. Modifications to the General Conditions

Section 6.02 of the General Conditions for Credits and Grants of the Association, dated July 1, 2005 (as amended through October 15, 2006) is modified to read as follows:

"Section 6.02. Suspension by the Association

... (l) Ineligibility. The Association or the Bank has declared the Project Implementing Entity ineligible to receive proceeds of any financing made by the Association or the Bank or otherwise to participate in the preparation or implementation of any project financed in whole or in part by the Association or the Bank, as a result of a determination by the Association or the Bank that the Project Implementing Entity has engaged in fraudulent, corrupt, coercive or collusive practices in connection with the use of the proceeds of any financing made by the Association or the Bank."

CREDIT NUMBER 4069-MOG

Amended and Restated Development Credit Agreement

(Index Based Livestock Insurance Project)

between

MONGOLIA

and

INTERNATIONAL DEVELOPMENT ASSOCIATION

Dated [______], 2010

CREDIT NUMBER 4069- MOG

AMENDED AND RESTATED DEVELOPMENT CREDIT AGREEMENT

AMENDMENT and RESTATEMENT, dated [____________] 2010, of the Agreement dated June 17, 2005, between MONGOLIA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) for the Index Based Livestock Insurance Project, as described in Schedule 2 hereof (the Project).

ARTICLE I

General Conditions; Definitions

Section 1.01. The "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985 (as amended through May 1, 2004), with the modifications set forth below (the General Conditions), constitute an integral part of this Agreement: Section 6.03(c) of the General Conditions is amended by replacing the words "corrupt or fraudulent" with the words "corrupt, fraudulent, collusive or coercive."

Section 1.02. 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 additional terms have the following meanings:

"Additional Credit" means the credit in the amount of [________________] Special Drawing Rights (SDR ____________) extended by the Association to the Borrower under the terms and conditions set forth in the Additional Financing Agreement. "Additional Financing Agreement" means the agreement of the same date as this Agreement entered into by and between the Borrower and the Association whereby the Association agreed to extend an Additional Credit to the Borrower for purposes of financing Parts A, B and E of the Project "Aimag" means a province of the Borrower. "Base Insurance Product" and the acronym "BIP" mean the insurance product governed by the provisions of the BIP Standard Policy Form, and commercialized and serviced by the Participating Insurance Companies in accordance with the Stop-Loss Reinsurance Agreements and the provisions of paragraph 6(a) of Schedule 4 to this Agreement. "BIP Insurance Cycle" means each of the BIP cycles for the years 2009/2010, 2010/11, 20011/12 and 2012/13, each commencing in or around April of each year until August 31 of the following year. "BIP Reserve Account" means the account referred to in Section 2.02(c) of this Agreement. "BIP Standard Policy Form" means the standard form of BIP insurance policy to be issued by a Participating Insurance Company, under terms and conditions acceptable to the Association, to provide a BIP coverage to Livestock Insurance Policy Holders in accordance with paragraph 5(a) of Schedule 4 to this Agreement. "Category" means a category of items set forth in the table in paragraph 1 of Schedule 1 to this Agreement. "Contingent Debt Facility" means the credit facility established under Part A.2 of the Project in accordance with the Project Implementation Manual for purposes of servicing any contingent payments in respect of: (i) Stop-Loss Amounts due on Eligible Claims under the BIP insurance scheme, as provided in the Stop-Loss Reinsurance Agreements, pursuant to paragraph 5(f) of Schedule 4 of this Agreement; and (ii) any payouts due on Eligible Claims under the DRP indemnities due by the Borrower under the Last DRP Insurance Cycle. "Covered Risk" means the risks defined in the BIP Standard Policy Form, the Stop-Loss Reinsurance Agreements, and the DRP indemnity arrangements, associated to the index-based livestock mortality, per Soum, determined on the basis of the semi-annual censuses or sample surveys to be carried out under Part A.1(i) of the Project. "DRP" means the disaster response product, a social safety net product provided by the Borrower to Livestock Insurance Policy holders, on terms and conditions satisfactory to the Association, for up to one hundred per cent (100%) of the index-based livestock mortality which exceeds the coverage provided under the BIP insurance scheme. "Eligible Claims" means claims in respect of Livestock affected by the occurrence of a Covered Risks made by, or on behalf of, Livestock Insurance Policy Holders to: (A) Participating Insurance Companies in accordance with the terms and conditions of a BIP insurance policy (BIP Claims); and (B) the Borrower, through the PIU, under the DRP indemnity arrangements (DRP Claims) for the Last DRP Insurance Cycle; and "Eligible Claim" means any of such Eligible Claims. "Financial Management Manual" means the manual satisfactory to the Association adopted by the Borrower in accordance with the provision of paragraph 3(a)(ii) of Schedule 4 to this Agreement, as revised pursuant to the provision of Section 6.01(b) of this Agreement, in order to manage the operation of the LIIP Account, the BIP Reserve Account, the Contingent Debt Facility and the Payment Account, as such manual may be further amended from time to time with the prior agreement of the Association. "Financial Monitoring Report" or "FMR" means each report prepared in accordance with Section 4.02 of this Agreement. "Index-Based Livestock Insurance Program" means the program to be established by the Borrower under Part A of the Project in accordance with the provisions of paragraphs 4 through 6 of Schedule 4 to this Agreement. "Indigenous Peoples Planning Framework" means the policy framework dated February 2, 2009, adopted by the Borrower for purposes of ensuring that traditional Tsaatan communities have an equitable opportunity to participate in the scale up of the Index-Based Livestock Insurance Program, detailing the potential positive and adverse effect of the BIP scheme on the traditional Tsaatan communities, the social assessment thereof, the associated monitoring and reporting mechanisms and the promotional and public awareness campaigns to be carried out under the Project. "Insurance Participation Fee" and the acronym "IPF" mean the amount to be contributed by each Participating Insurance Company to the LIIP Account as its cost of participation in each BIP Insurance Cycle as determined by the PIU in a manner and substance satisfactory to the Association, such amount to be the equivalent of the aggregate of: (i) the premium of each Participating Insurance Company's individual BIP portfolio; and (ii) any points fixed by the PIU to determine the stop-loss level for the LIIP Account, as set forth in the Stop-Loss Reinsurance Agreements. "Korean Grant" means the grant in the amount of seven hundred thousand United States dollars (USD700,000), extended by the Association to the Borrower under terms and conditions set forth in the Korean Grant Agreement. "Korean Grant Agreement" means the agreement of the same date as this Agreement, entered into by and between the Borrower and the Association, acting as administrator of funds granted by the Republic of Korea, and pursuant to which the Association has agreed to extend a Grant to the Borrower for purposes of cofinancing Parts A.1, A.3, C, D and E of the Project. "Last DRP Insurance Cycle" means the DRP insurance cycle that commenced on or around April 2009 and is scheduled to be completed on August 31, 2010, and that pertains to DRP indemnities that have been commercialized on behalf of the Borrower prior to the effectiveness of this Agreement. "Livestock Insurance Indemnity Pool Account" and the acronym "LIIP Account" mean the pooling account referred to in Section 2.02(d) of this Agreement. "Livestock Insurance Policy Holder" means an individual herder (household), or group of herders, who owns Livestock and to whom a BIP insurance policy have been issued by a Participating Insurance Company, in consideration of the payment of BIP premiums. "Livestock" means, for the purposes of the Index-Based Livestock Insurance Program and this Agreement, the cattle, yaks, goats, sheep, camels and horses in the Selected Aimags. "MOF" means the Borrower's Ministry of Finance and any successor thereto. "National Statistics Office" and the acronym "NSO" mean the Borrower's government agency, established in accordance with Borrower's Statistical Law of 1994, as amended in 1997, and responsible, inter alia, for carrying out and processing the livestock censuses and/or sample surveys under the Project pursuant to paragraph 4 of Schedule 4 to this Agreement, and any successor thereto. "Original Development Credit Agreement" means the Development Credit Agreement dated June 17, 2005, entered into between Mongolia and the International Development Association, for purposes of financing the Index-Based Livestock Insurance Project, as amended through April 6, 2009. "Participating Insurance Companies" means those insurance companies duly licensed by the Borrower to carry out insurance business in Mongolia, and eligible to participate in the Index-Based Livestock Insurance Program in accordance with criteria acceptable to the Association, as further set forth in the Project Implementation Manual; and a "Participating Insurance Company" means any of such Participating Insurance Companies. "Payment Account" means the account referred to in Section 2.02(e) of this Agreement. "PHRD Grant" means the grant in the amount of one million three hundred eighteen thousand United States dollars (USD1,318,000) extended by the Association to the Borrower under terms and conditions set forth in the PHRD Grant Agreement. "PHRD Grant Agreement" means the agreement dated June 17, 2005, entered into by and between the Borrower and the Association, acting as administrator in respect of grant funds provided by Japan, whereby the Association extended a PHRD Grant to the Borrower for purposes of financing Parts A.1, C and D.4 of the Project. "Procurement Plan" means the Borrower's procurement plan, dated March 11, 2005 and revised through [September [__] 2009], as the same shall be updated from time to time in accordance with the provisions of Section 3.02 to this Agreement, to cover the foreseeable eighteen (18) month periods (or longer) of Project implementation. "Project Implementation Manual" and the acronym "PIM" mean the manual, satisfactory to the Association, adopted on August 22, 2005 by the Borrower in accordance with the provision of paragraph 3 of Schedule 4 to this Agreement, as revised pursuant to the provisions of Section 6.01(b) of this Agreement, establishing the operational, financial and administrative procedures for the implementation of the Project, as such manual may be further amended from time to time with the prior agreement of the Association. "Project Implementation Unit" and the acronym "PIU" mean the project implementation unit to be maintained within the Borrower's Ministry of Finance pursuant to paragraph 1(b) of Schedule 4 to this Agreement. "Project Steering Committee" and the acronym "PSC" mean the committee to be maintained within the Borrower's Ministry of Finance to provide oversight and guidance for the Index-Based Livestock Insurance Program, in accordance with paragraph 1(a) of Schedule 4 to this Agreement and the relevant provisions of the Project Implementation Manual. "Selected Aimags" means those Aimags selected from time to time by the Borrower with the prior concurrence of the Association in accordance with the following schedule: for the BIP Insurance Cycle 2009/2010 and the Last DRP Insurance Cycle: the Aimags of Uvs, Bayankhogor, Khentii and Sukhbaatar; for the BIP Insurance Cycle 2010/11: the Aimags covered by the Project during Insurance Cycle 2009/10, plus up to six (6) additional Aimags to be agreed with the Association; for the BIP Insurance Cycle 2011/12: the Aimags covered by the Project during Insurance Cycle 2010/11 plus up to six (6) additional Aimags to be agreed with the Association; and for the BIP Insurance Cycle 2012/13: any and/or all twenty one (21) Aimags of the Borrower as agreed with the Association. "Soum" means a rural district of the Borrower. "Special Account" means the account referred to in Section 2.02(b) of this Agreement. "Standard Stop-Loss Reinsurance Agreement" means the standard agreement drawn up by the Borrower in accordance with the provisions of paragraph 5(b) of Schedule 4 to this Agreement and revised from time to time, in a manner and substance and with terms and conditions acceptable to the Association. "Stop-Loss Amount" means that portion of an Eligible Claim under a BIP insurance policy which is in excess of a limit defined in the relevant Stop-Loss Reinsurance Agreement. "Stop-Loss Reinsurance Agreements" means the agreements in the form of the Standard Stop-Loss Reinsurance Agreement, to be entered by and between the Borrower and the Participating Insurance Companies, pursuant to paragraph 5(d) of Schedule 4 to this Agreement; and "Stop-Loss Reinsurance Agreement" means any such agreement. "Swiss Grant" means the grant extended by the Association to the Borrower under terms and conditions set forth in the Swiss Grant Agreement. "Swiss Grant Agreement" means the agreement dated April 6, 2009, entered into by and between the Borrower and the Association, acting as administrator of funds granted by the Government of the Swiss Confederation, and pursuant to which the Association has agreed to extend a Grant to the Borrower for purposes of cofinancing Part C of the Project. "Togrog" means the lawful currency of the Borrower.

ARTICLE II

The Credit

Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in this Agreement, an amount in various currencies equivalent to five million one hundred forty thousand Special Drawing Rights (SDR 5,140,000).

Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement for: (i) expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for Parts A.2, A.3, B, C.1, D.1, D.2, D.3, D.4 and E the Project and to be financed out of the proceeds of the Credit; and (ii) amounts paid (or if the Association shall so agree, to be paid) by the Borrower for Stop-Loss Amounts or DRP indemnity compensations on account of Eligible Claims under Part A.2 of the Project;

(b) The Borrower may, for the purposes of the Project, open and maintain in United States dollars a special deposit account in respect of Parts A.3, B, C.1, D.1, D.2, D.3, D.4 and E of the Project in a commercial bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure or attachment. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 5 to this Agreement;

(c) The Borrower shall, for the purposes of Part A of the Project, open and maintain in Togrog, or in such other currency or currencies as the Association shall otherwise agree, an account ("BIP Reserve Account") in a commercial bank under terms and conditions satisfactory to the Association, including those set forth in the Project Implementation Manual, for the administration by the Borrower through the PIU of the LIIP Account's reinsurance premiums to be paid to the Borrower by the Participating Insurance Companies pursuant to the Stop-Loss Reinsurance Agreements to be entered into between the Borrower and each of the Participating Insurance Companies pursuant to paragraph 5(d) of Schedule 4 to this Agreement. Deposits into, and payments out of, the BIP Reserve Account shall be made in accordance with the provisions of the Financial Management Manual;

(d) The Borrower shall, for the purposes of Part A of the Project, open and maintain in Togrog, or in such other currency or currencies as the Association shall otherwise agree, an account ("LIIP Account") in a commercial bank under terms and conditions satisfactory to the Association, for the administration by the Borrower, through the PIU, of the BIP risk-loaded premiums and Insurance Participation Fees contributed by the Participating Insurance Companies under the Stop-Loss Reinsurance Agreements. Deposits into, and payments out of, the LIIP Account shall be made in accordance with the provisions of the Financial Management Manual; and

(e) The Borrower shall, for the purposes of Part A of the Project, open and maintain in Togrog, or in such other currency or currencies as the Association shall otherwise agree, an account ("Payment Account") in a commercial bank under terms and conditions satisfactory to the Association, including those set forth in the Project Implementation Manual, for the channeling of BIP and DRP indemnity payouts to Livestock Insurance Policy Holders on Eligible Claims upon the occurrence of a Covered Risk. Deposits into, and payments out of, the Payment Account shall be made in accordance with the provisions of the Financial Management Manual.

Section 2.03. The Closing Date shall be [March 31, 2014][8], or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date.

Section 2.04. (a) The Borrower shall pay to the Association a commitment charge on the principal amount of the Credit not withdrawn from time to time at a rate to be set by the Association as of June 30 of each year, but not to exceed the rate of one-half of one percent (1/2 of 1%) per annum.

(b) The commitment charge shall accrue: (i) from the date sixty (60) days after the date of this Agreement (the accrual date) to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or canceled; and (ii) at the rate set as of the June 30 immediately preceding the accrual date and at such other rates as may be set from time to time thereafter pursuant to paragraph (a) above. The rate set as of June 30 in each year shall be applied from the next date in that year specified in Section 2.06 of this Agreement.

(c) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without restrictions of any kind imposed by, or in the territory of, the Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section.

Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one percent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time.

Section 2.06. Commitment charges and service charges shall be payable semiannually on May 15 and November 15 in each year.

Section 2.07. (a) Subject to paragraphs (b), (c) and (d) below, the Borrower shall repay the principal amount of the Credit in semiannual installments payable on each May 15 and November 15, commencing on November 15, 2015, and ending on May 15, 2045. Each installment to and including the installment payable on May 15, 2025, shall be one percent (1%) of such principal amount, and each installment thereafter shall be two percent (2%) of such principal amount.

(b) Whenever: (i) the Borrower's per capita gross national product (GNP), as determined by the Association, shall have exceeded for three (3) consecutive years the level established annually by the Association for determining eligibility to access the Association's resources; and (ii) the Bank shall consider the Borrower creditworthy for Bank lending, the Association may, subsequent to the review and approval thereof by the Executive Directors of the Association and after due consideration by them of the development of the Borrower's economy, modify the repayment of installments under paragraph (a) above by:

(A) requiring the Borrower to repay twice the amount of each such installment not yet due until the principal amount of the Credit shall have been repaid; and

(B) requiring the Borrower to commence repayment of the principal amount of the Credit as of the first semiannual payment date referred to in paragraph (a) above falling six (6) months or more after the date on which the Association notifies the Borrower that the events set out in this paragraph (b) have occurred, provided, however, that there shall be a grace period of a minimum of five (5) years on such repayment of principal.

(c) If so requested by the Borrower, the Association may revise the modification referred to in paragraph (b) above to include, in lieu of some or all of the increase in the amounts of such installments, the payment of interest at an annual rate agreed with the Association on the principal amount of the Credit withdrawn and outstanding from time to time, provided that, in the judgment of the Association, such revision shall not change the grant element obtained under the above-mentioned repayment modification.

(d) If, at any time after a modification of terms pursuant to paragraph (b) above, the Association determines that the Borrower's economic condition has deteriorated significantly, the Association may, if so requested by the Borrower, further modify the terms of repayment to conform to the schedule of installments as provided in paragraph (a) above.

Section 2.08. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions.

ARTICLE III

Execution of the Project

Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial and insurance practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project.

(b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement.

Section 3.02. (a) Except as the Association shall otherwise agree, procurement of the goods and services required for Parts B, C.1, D.1, D.2, D.3, D.4 and E of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan.

(b) The Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the Association, and furnish such update to the Association not later than twelve (12) months after the date of the preceding Procurement Plan, for the Association's approval.

Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall:

(a) prepare, on the basis of guidelines acceptable to the Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan to ensure the continued achievement of Project's objectives; and

(b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan.

ARTICLE IV

Financial Covenants

Section 4.01. (a) The Borrower shall establish and maintain a financial management system, including records and accounts, and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, adequate to reflect the operations, resources and expenditures related to the Project.

(b) The Borrower shall:

(i) have the records, accounts and financial statements referred to in paragraph (a) of this Section and the records and accounts for the Special Account, LIIP Account, BIP Reserve Account and Payment Account for each fiscal year (or other period agreed to by the Association) audited, in accordance with consistently applied auditing standards acceptable to the Association, by independent auditors acceptable to the Association;

(ii) furnish to the Association as soon as available, but in any case not later than six (6) months after the end of each such year (or such other period agreed to by the Association): (A) certified copies of the financial statements referred to in paragraph (a) of this Section for such year (or other period agreed to by the Association), as so audited; and (B) an opinion on such statements by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and

(iii) furnish to the Association such other information concerning such records and accounts, and the audit of such financial statements, and concerning said auditors, as the Association may from time to time reasonably request.

(c) For all expenditures with respect to which withdrawals from the Credit Account were made on the basis of statements of expenditure, the Borrower shall:

(i) retain, until at least one (1) year after the Association has received the audit report for, or covering, the fiscal year in which the last withdrawal from the Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures;

(ii) enable the Association's representatives to examine such records; and

(iii) ensure that such statements of expenditure are included in the audit for each fiscal year (or other period agreed to by the Association), referred to in paragraph (b) of this Section.

Section 4.02. (a) Without limitation upon the Borrower's progress reporting obligations set out in Schedule 4 to this Agreement, the Borrower shall prepare and furnish to the Association a Financial Monitoring Report, in form and substance satisfactory to the Association, which:

(i) sets forth sources and uses of funds for the Project, both cumulatively and for the period covered by said report, showing separately funds provided under the Credit, and explains variances between the actual and planned uses of such funds;

(ii) describes the progress in Project implementation, both cumulatively and for the period covered by said report, and explains variances between the actual and planned Project implementation; and

(iii) sets forth the status of procurement under the Project, as at the end of the period covered by said report.

(b) Each FMR shall be furnished to the Association on a semi-annual basis, not later than August 15 and February 15 of each year, and shall cover the immediately precedent periods from January to June and July to December of each calendar year, respectively.

ARTICLE V

Remedies of the Association

Section 5.01. Pursuant to Section 6.02(l) of the General Conditions, the following additional events are specified:

(a) a situation shall have arisen which shall make it improbable that the Index-Based Livestock Insurance Program or a significant part thereof can be carried out; or

(b) the Borrower shall have taken any action to dissolve, disenfranchise or suspend the operation of the PIU, or otherwise affect its ability to perform any of its obligations under this Agreement, the Project Implementation Manual and/or the Stop-Loss Reinsurance Agreements; or to achieve the objectives of the Project; or

(c) (i) Subject to subparagraph (ii) of this paragraph, the right of the Borrower to withdraw the proceeds of any of the PHRD Grant, the Korean Grant, the Swiss Grant or the Additional Credit made to the Borrower for the financing of the Project shall have been suspended, canceled or terminated in whole or in part, pursuant to the terms of the PHRD Grant Agreement, the Korean Grant Agreement , the Swiss Grant Agreement or the Additional Financing Agreement, as the case may be.

(ii) Subparagraph (i) of this paragraph shall not apply if the Borrower establishes to the satisfaction of the Association that: (A) such suspension, cancellation or termination is not caused by the failure of the Borrower to perform any of its obligations under such agreements; and (B) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement.

Section 5.02. Pursuant to Section 7.01(h) of the General Conditions, the following additional event is specified, namely, that any of the events specified in paragraphs (a), (b) and (c)(i), subject to the proviso of (c)(ii) of Section 5.01 of this Agreement shall occur.

ARTICLE VI

Effective Date; Termination

Section 6.01. This amendment and restatement of the Original Development Credit Agreement shall become effective upon the latest of:

(a) the execution and delivery of the Korean Grant Agreement and the Additional Financing Agreement, as well as the fulfillment of all conditions precedent to their effectiveness or to the right of the Borrower to make withdrawals thereunder;

(b) the Borrower's adoption of an updated Project Implementation Manual acceptable to the Association, such manual to include the provisions for the scale up of the Index-Based Livestock Insurance Program; and

(c) the Association's receipt of a legal opinion satisfactory to the Association of counsel acceptable to the Association, or if the Association so requests, a certificate satisfactory to the Association of competent official of the Borrower, confirming that: (A) the execution and delivery of this agreement on behalf of the Borrower has been duly authorized or ratified by all necessary governmental action; and (B) this Agreement is binding upon the Borrower in accordance with its terms.

Section 6.02. Except as the Borrower and the Association shall otherwise agree, this Agreement shall enter into effect on the date upon which the Association dispatches to the Borrower notice of its acceptance of the evidence required pursuant to Section 6.01 above.

Section 6.03. The date of ninety (90) days as of the signing of this Agreement is hereby specified for purposes of Section 12.04 of the General Conditions.

ARTICLE VII

Representative of the Borrower; Addresses

Section 7.01. The Minister 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:

Ministry of Finance

United Nations Street 5/1

Ulaanbaatar 210646

Mongolia

Facsimile:

976-11-262272

For the Association:

International Development Association

1818 H Street, N.W.

Washington, D.C. 20433

United States of America

Cable address: Telex: Facsimile:

INDEVAS 248423 (MCI) or (202) 477-6391

Washington, D.C. 64145 (MCI)

IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names in Ulaanbaatar, Mongolia, as of the day and year first above written.

MONGOLIA

By:

Authorized Representative

INTERNATIONAL DEVELOPMENT ASSOCIATION

By:

Authorized Representative

SCHEDULE 1

Withdrawal of the Proceeds of the Credit

1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category:

Amount of the

Credit Allocated % of

(Expressed in Expenditures

Category SDR Equivalent) to be Financed

Amount of the

Credit Allocated % of

(Expressed in Expenditures

Category SDR Equivalent) to be Financed

2. For the purposes of this Schedule the term "Incremental Operating Costs" means expenditures for rental of office space, vehicles' operation and maintenance, in-country travel allowances for PIU staff, banking services and costs for information dissemination, incurred by the PIU in connection with the management and coordination of the Project, as well as travel allowances and per diem for members of the Project Steering Committee, which expenditures would not have been incurred absent the Project, but excluding salaries of civil servants.

3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of:

(a) any payments made for expenditures prior to the date of the Original Development Credit Agreement, except that withdrawals in the aggregate amount not exceeding the equivalent of SDR 66,000, may be made in respect of Categories (1), (5), (6) and (7) on account of payments made for expenditures before that date but after May 1, 2005; and

(b) any payment made under Category (4), unless the Association has received satisfactory evidence that:

(i) the Borrower has opened the LIIP Account, BIP Reserve Account and Payment Account in a commercial bank acceptable to the Association, as provided for in paragraph 5(c) of Schedule 4 to this Agreement;

(ii) the Borrower and the Participating Insurance Companies have entered into Stop-Loss Reinsurance Agreements, as provided for in paragraph 5(d) of Schedule 4 to this Agreement, and the Association has been furnished with a legal opinion of counsel acceptable to the Association confirming that each Stop-Loss Reinsurance Agreement has been duly authorized, ratified and is legally binding upon the parties in accordance with its terms;

the Participating Insurance Companies have issued the BIP insurance policies and/or DRP indemnity certificates for which withdrawals are being requested; the Covered Risks under the BIP schemes and DRP indemnities have occurred and Eligible Claims have been filed on behalf of Livestock Insurance Policy Holders; for expenditures und the BIP insurance scheme, the Association has been furnished with certificate issued by the Borrower, through the PIU, certifying that BIP Reserve Account has been exhausted; and the Borrower has entered into an agency agreement with a financial intermediary as provided for in paragraph 5(e) of Schedule 4 to this Agreement.

4. The Association may require withdrawals from the Credit Account to be made on the basis of statements of expenditure for expenditures under contracts for: (a) goods costing less than US$20,000 equivalent per contract; (b) services of individual consultants costing less than US$20,000 equivalent per contract; (c) services of consulting firms under contracts costing less than US$50,000 equivalent per contract; (d) training, workshops and study tours; and (e) Incremental Operating Costs, all under such terms and conditions as the Association shall specify by notice to the Borrower.

5. For purposes of withdrawals under Category (4), the Borrower shall furnish to the Association, in form and substance satisfactory to the Association, documentation relating to the Eligible Claims and payments made therefor, including a certificate issued by the Borrower through the PIU Project Director, and the Borrower's Minister of Finance, representing that the conditions listed in paragraph 3(b) of this Schedule have been met and are still in effect, in respect of the Eligible Claims at the time the relevant withdrawals are being made.

SCHEDULE 2

Description of the Project

The objective of the Project is to assist the Borrower to ascertain the viability of Index Based Livestock Insurance Program in Mongolia to reduce the impact of livestock mortality for herders' livelihood through: (i) scaling up the Index-Based Livestock Insurance Program in Selected Aimags; and (ii) building the institutional capacity, and legal and institutional framework, for the sustainability of the Index-Based Livestock Insurance Program.

The Project consists of the following parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives:

Part A: Index-Based Livestock Insurance Program

1. Design, develop and implement the scale up of the Index-Based Livestock Insurance Program, providing for BIP insurance coverage, the related legal and institutional framework and technical assistance therefor, and the provision of:

semiannual livestock censuses and/or sample surveys in the Selected Aimags; operational software packages for the Management Information System (MIS), the Portfolio Risk Assessment (PRA) and the Insurance Participation Fees to the LIIP Account; related training to staff of the Borrower's relevant agencies, the PIU, and the Participating Insurance Companies; and performance review and refinement of the Index-Based Livestock Insurance Program.

2. Provision of a Contingent Debt Facility for the payment to Livestock Insurance Policy Holders of (i) Stop-Loss Amounts due on Eligible Claims under the BIP; and (ii) compensation for livestock losses due under the DRP indemnities pertaining to the Last DRP Insurance Cycle.

3. Provision of training to PIU's staff and the staff of the Borrower's related agencies on index-based insurance schemes, including study tours.

Part B: Promotion of Public Awareness

Develop and implement a public awareness campaign on the features of the BIP insurance scheme under the Index-Based Livestock Insurance Program, including the development of promotional material and technical assistance therefor.

Part C: Institutional Capacity Building

1. Enhance the capacity of Borrower's agencies including the National Statistics Office to assess, develop and introduce alternative cost-effective methods for livestock data collection.

2. Develop the necessary legal and institutional framework for the sustainability of the Index-Based Livestock Insurance Program, including enhancing the capacity of the Borrower's related management and supervisory agencies and the provision of technical assistance therefor.

3. Assess the fiscal and economic implications of the scale up of the Index-based Livestock Insurance Program, and its potential linkages with other pastoral risk management initiatives.

Part D: Monitoring and Data Collection

1. Design and carry out a baseline survey to assess and documents the socio-economic and pastoral risk management landscape, and herders' awareness and experience of insurance products as benchmark indicators for the evaluation of the impact of the Index-Based Livestock Insurance Program.

2. Design and carry out annual field-based monitoring activities to determine the level of take-up of the BIP insurance scheme, and the distribution of Livestock Insurance Policy Holders according to spatial, ethnic, economic, institutional and/or gender criteria, including provisions of workshops to discuss the findings with relevant stakeholders.

3. Design and carry out impact assessment surveys to evaluate: (i) the socio-economic consequences of the Index-Based Livestock Insurance Program; and (ii) the efficacy of the promotion and public awareness activities carried out under Part B of the Project.

4. Design and carry out post-event monitoring surveys to track the BIP payout process, the use and allocation of the indemnities paid, and the degree of client satisfaction with the BIP insurance scheme and system response.

5. Strengthen the PIU's capacity in monitoring and evaluations techniques for the implementation of Part D of the Project and build PIU's monitoring and evaluation capacity including the provision of technical assistance therefor.

Part E: Project Management Support

Strengthen the institutional capacity of the PIU for the implementation of the Project, including: (i) provision of training, technical assistance, office furniture, computers, software, and vehicles; (ii) monitoring and evaluation of Project activities; (iii) procurement; and (iv) financial management of Project's accounts.

* * *

The Project is expected to be completed by August 31, 2013.

SCHEDULE 3

Procurement

Section I. General

A. All goods and services (other than consultants' services) shall be procured in accordance with the provisions of Section I of the "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004 (the Procurement Guidelines), and with the provisions of this Schedule.

B. All consultants' services shall be procured in accordance with Sections I and IV of the "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 (the Consultant Guidelines), and with the provisions of this Schedule.

C. The capitalized terms used below in this Schedule to describe particular procurement methods or methods of review by the Association of particular contracts, have the meanings ascribed to them in the Procurement Guidelines, or Consultant Guidelines, as the case may be.

Section II. Particular Methods of Procurement of Goods and Services (other than Consultants' Services)

Shopping. Goods estimated to cost less than US$50,000 equivalent per contract may be procured under contracts awarded on the basis of Shopping.

Section III. Particular Methods of Procurement of Consultants' Services

A. Quality- and Cost-based Selection. Except as otherwise provided in Part B of this Section, consultants' services shall be procured under contracts awarded on the basis of Quality- and Cost-based Selection. For purposes of paragraph 2.7 of the Consultant Guidelines, the short list of consultants for services estimated to cost less than US$100,000 equivalent per contract may comprise entirely of national consultants.

B. Other Procedures

1. Quality-based Selection. Services for assignments which the Association agrees meet the requirements set forth in paragraph 3.2 of the Consultant Guidelines may be procured under contracts awarded on the basis of Quality-based Selection in accordance with the provisions of paragraphs 3.1 through 3.4 of the Consultant Guidelines.

2. Least-cost Selection. Services for assignments which the Association agrees meet the requirements of paragraph 3.6 of the Consultant Guidelines may be procured under contracts awarded on the basis of Least-cost Selection in accordance with the provisions of paragraphs 3.1 and 3.6 of the Consultant Guidelines.

3. Selection Based on Consultants' Qualifications. Services estimated to cost less than US$100,000 equivalent per contract may be procured under contracts awarded in accordance with the provisions of paragraphs 3.1, 3.7 and 3.8 of the Consultant Guidelines.

4. Single Source Selection. Services for tasks in circumstances which meet the requirements of paragraph 3.10 of the Consultant Guidelines for Single Source Selection, may, with the Association's prior agreement, be procured in accordance with the provisions of paragraphs 3.9 through 3.13 of the Consultant Guidelines.

5. Individual Consultants. Services for assignments that meet the requirements set forth in the first sentence of paragraph 5.1 of the Consultant Guidelines may be procured under contracts awarded to individual consultants in accordance with the provisions of paragraphs 5.2 through 5.3 of the Consultant Guidelines. Under the circumstances described in paragraph 5.4 of the Consultant Guidelines, such contracts may be awarded to individual consultants on a sole-source basis, subject to prior approval of the Association.

Section IV. Review by the Association of Procurement Decisions

Except as the Association shall otherwise determine by notice to the Borrower, the following contracts shall be subject to Prior Review by the Association: (a) each contract for goods and services (other than consultants' services) estimated to cost the equivalent of US$20,000 or more; (b) each contract for consultants' services provided by a firm estimated to cost the equivalent of US$50,000 or more, procured on the basis of Quality- and Cost-based Selection, Quality-Based Selection, Least-cost Selection or Selection Based on Consultants' Qualifications; and (c) each contract for consultants' services provided by a firm estimated to cost the equivalent of US$20,000 or more, procured on the basis of Single Source Selection. In addition, with respect to each contract for the employment of individual consultants estimated to cost the equivalent of US$20,000 or more, the report on the qualifications and experience of all evaluated candidates, the terms of reference and the terms of employment of the consultants shall be subject to prior approval by the Association. All other contracts shall be subject to Post Review by the Association.

SCHEDULE 4

Implementation Program

Project Management

1. The Borrower shall:

(a) maintain throughout the period of implementation of the Project, a Project Steering Committee (PSC) with representation from, inter alia, the MOF, the Ministry of Food Agriculture and Light Industry; the Ministry of Justice, the NSO, other relevant Borrower's agencies, academia and the private sector, which shall be responsible for providing direction and oversight in the implementation of the Project;

(b) maintain, throughout the period of implementation of the Project, a Project Implementation Unit (PIU), to be responsible for the management and coordination of the Project, said PIU to be provided with sufficient resources, under the direction of qualified and experienced managers, including a Project Director and a Project Coordinator per Project component, all under terms of reference satisfactory to the Association; and staffed with competent personnel in adequate numbers, including staff to be in charge of financial management, procurement, training coordination, information dissemination, project planning and budgeting, and monitoring and evaluation;

(c) establish by no later than December 31 of each BIP Insurance Cycle, in each Selected Aimag participating in such BIP Insurance Cycle, and thereafter maintain throughout the period of implementation of the Project, a PIU Aimag office headed by qualified and experienced managers, assisted by competent personnel in adequate numbers, under terms of reference acceptable to the Association, responsible for providing technical guidance, local support and oversight in the implementation of the Project in the respective Aimag; and

2. For purposes of Section 4.01 of this Agreement, the Borrower shall, select and retain an independent auditor acceptable to the Association, under terms of reference satisfactory to the Association, in accordance with the provisions of Section III, B.2 of Schedule 3 to this Agreement, to carry out annual audits of all Project accounts and financial statements.

Project Implementation

A. General

3. (a) The Borrower shall, through the Project Steering Committee, adopt and apply throughout the implementation of the Project, a Project Implementation Manual satisfactory to the Association, providing, inter alia:

the institutional arrangements for the implementation of the Project, including the institutional structure and governance of the LIIP Account, BIP Reserve Account and Payment Account and their respective operational manuals, including: (A) financial management, audit requirements, and supervision and monitoring procedures; (B) procedures and criteria for the selection of the Participating Insurance Companies and a financial intermediary for the distributing payments, including the compliance with prudential regulations and solvency, liquidity and profitability requirements pursuant to Mongolian insurance legislation; (C) the essential provisions of the Stop-Loss Reinsurance Agreements and BIP Standard Policy Form; and (D) the allocation of tasks and responsibilities among the PIU, the Participating Insurance Companies and the selected financial intermediary, for the implementation of the Project;

(ii) a Financial Management Manual setting forth policies and procedures for the flow of funds, settlement of payments, accounting, maintenance of records, reporting, internal control and auditing requirements;

(iii) a time-bound schedule for the training and workshops, surveys and censuses, and promotion and public awareness activities to be carried out under the Project and their related reporting requirements;

(iv) policies and procedures for monitoring and evaluation of Project activities and their related impacts and the reporting requirements thereof;

(v) procurement guidelines consistent with the provisions of Schedule 3 to this Agreement; and

(b) The Borrower shall not amend, waive or abrogate any provisions of the Project Implementation Manual without the prior concurrence of the Association.

B. Index-based Livestock Insurance Program

4. In carrying out Part A.1(i) of the Project, and throughout the implementation of the Project, the Borrower shall cause the NSO to:

(a) carry out semi-annual livestock censuses and/or surveys in June and December of each year, in accordance with the provisions set forth in the Project Implementation Manual;

(b) furnish the PIU, no later than July 25 of each BIP Insurance Cycle, with the results of the two preceding livestock censuses and/or surveys of December and June in the respective Selected Aimags, including the statistics of livestock mortality per Soum, as provided for in the Project Implementation Manual.

5. For purposes of Part A.2 of the Project, the Borrower shall:

(a) regularly revise, and update as needed, by no later than December 31 of the year preceding each BIP Insurance Cycle, in form and substance acceptable to the Association, the BIP Standard Policy Form to be underwritten by the Participating Insurance Companies in said BIP Insurance Cycle for the benefit of herders in the Selected Aimags, said policy to contain all the standard terms and conditions relating to the provision by said Participating Insurance Companies to Livestock Insurance Policy Holders of livestock risk insurance, including the provision of coverage for the index-based estimated loss in (household) Livestock caused by the occurrence of the Covered Risk;

(b) regularly revise, and update as needed, by no later than December 31 of the year preceding each BIP Insurance Cycle, in form and substance acceptable to the Association, a Standard Stop-Loss Reinsurance Agreement to be entered into between the Borrower, through the PIU, and each Participating Insurance Company, setting forth the terms and conditions for:

the setting up and administration guidelines of the LIIP Account, BIP Reserve Account and Payment Account; the time and procedures for the Participating Insurance Companies to contribute to the LIIP Account: (A) the collected risk-loaded premiums; and (B) their respective Insurance Participation Fees; and the authorization to the Borrower by Participating Insurance Companies for the PIU to settle on their behalf the Eligible Claims under the BIP and pay to Livestock Insurance Policy Holders out of the LIIP Account and BIP Reserve Account any amounts due under the BIP in respect of a Covered Risk occurred prior to the Closing Date;

(c) maintain, in a commercial bank selected in accordance with the procedures and criteria set forth in the Project Implementation Manual; (i) a LIIP Account and a BIP Reserve Account for the administration of BIP risk-loaded premiums and the Insurance Participation Fees to be contributed by Participating Insurance Companies to the LIIP Account under the Stop-Loss Reinsurance Agreements; and (ii) a Payment Account for the channeling to Livestock Insurance Policy Holders of BIP and DRP indemnity payouts, all such accounts to be protected against set-offs, seizures and attachments in terms and conditions satisfactory to the Association. Deposits into, and payments out of, the LIIP Account, BIP Reserve Account, and Payment Account shall be made in accordance with the provisions of the Financial Management Manual;

(d) enter, by no later than March 1 of each year, into Stop-Loss Reinsurance Agreements with Participating Insurance Companies selected in accordance with the procedures and criteria set forth in the Project Implementation Manual, each such Stop Loss Reinsurance Agreement covering a single annual BIP Insurance Cycle commencing in April next following;

(e) enter, by no later than [________] of each year, into an agency agreement with one or more financial intermediaries, selected in accordance with the procedures and criteria set forth in the Project Implementation Manual, for the coordination of any BIP and DRP indemnity payouts at the end of each BIP Insurance Cycle and/or the Last DRP Insurance Cycle, as the case may be, following the occurrence of a Covered Risk;

(f) following the occurrence of a Covered Risk, settle all Eligible Claims under the BIP and DRP indemnity schemes and provide for the timely payment of such settlements by no later than: (i) August 31 of each year at the end of each BIP Insurance Cycles; and (ii) August 31, 2010 for purposes of the Last DRP Insurance Cycle, as set forth in the Project Implementation Manual;

(g) following settlement and payment of any Eligible Claims, ensure that the amounts withdrawn from the Credit Account under Category (4) in compliance with the Stop-Loss Reinsurance Agreement under the BIP and pursuant to the DRP indemnity arrangements serve exclusively productive purposes, including:

the restocking of Livestock losses caused by the occurrence of a Covered Risk; the purchase of goods and services to support and enhance the sustainability of Livestock production following the occurrence of a Covered Risk, including without limitation, the improvement of pastures, the purchase of production of fodder, the provision of veterinary services and drugs, and the construction of protective sheds; and/or the purchase of goods and services to enable the Livestock Insurance Policy Holders to engage in alternative income generation activities acceptable to the Association.

6. The Borrower shall ensure that the Participating Insurance Companies:

(a) issue and commercialize BIP policies in the form of the BIP Standard Policy Form, collecting from Livestock Insurance Policy Holders the risk-loaded premiums from time to time established by the Borrower and contribute same to the LIIP Account in accordance with the provisions of the Project Implementation Manual and the Stop-Loss Reinsurance Agreements; and

(b) contribute to the LIIP Account, in a timely manner, their committed Insurance Participation Fees, as determined by their strategic plans for BIP sales and the respective Stop-Loss Reinsurance Agreements; and

C. Public Awareness Campaign

7. In carrying out Part B of the Project the Borrower shall:

(a) by no later than August 31, 2010, prepare a revised strategy for the communication to stakeholders and the enhancement of public awareness regarding the objectives of and activities under the Project, including a time-bound action plan therefor;

(b) provide said strategy to the Association for its review and comment; and

(c) thereafter, take all necessary actions to implement said strategy taking into consideration the Association's view thereon.

D. Monitoring and Reporting

8. For purposes of Part D.1 of the Project, the Borrower, shall: (a) design the survey under terms of reference acceptable to the Association and in accordance with the Project Implementation Manual , for purposes of collecting data to establish the baseline against which to monitor the outcome and impact of Project activities; (b) carry out such survey [on any newly covered Selected Aimag under the respective BIP Insurance Cycle][9], in a manner satisfactory to the Association; and (d) provide the results of such baseline survey to the Association for review by no later than [December 31 of the respective BISP Insurance Cycle][10].

9. For purposes of Parts D.2 and D.3 of the Project, the Borrower shall:

(a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in Schedule 6 to this Agreement, the implementation of the Project and the achievement of the objectives thereof;

integrate the results of the monitoring and evaluation activities performed pursuant to paragraph (a) above, and prepare under terms of reference satisfactory to the Association, and furnish to the Association the following reports: on or about February 28 and August 31 of each year, a semi-annual progress report, on Project activities based on output indicators referred to in sub-paragraph (a) above in regard to the preceding calendar semester, each such semi-annual progress report to integrate the FMR for the relevant period in accordance with Section 4.02(b) of this Agreement; on or about July 31 of each year, an annual field-based monitoring report, involving a purposive samples of stakeholders, aimed at: (A) measuring the level of BIP take-up, the efficacy of the promotion and public awareness campaign, and any changes in herders' risk management behaviors; (B) classifying stakeholders according to spatial, ethnic, economic, and gender criteria; and (C) assessing the progress towards meeting the Project development objectives; and on or about May 31, 2011, a mid-term report in respect of the period from September 1, 2009 to April 30, 2011 examining: (A) the social and economic consequences of the Project; (B) the efficacy of the promotion and public awareness campaign under Part B of the Project; and (C) the evolution and pace of the nationwide scale-up of the Index Based Livestock Insurance Program;

each such report to further set out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following the date of such report;

(c) after furnishing each report referred to in sub-paragraph (b) of this paragraph 9, review said report with the Association, and promptly take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of said report and the Association's views on the matter; and

(d) integrate the results of the monitoring and evaluation activities performed pursuant to paragraph (a), (b) and (c) above, and prepare under terms of reference satisfactory to the Association, and furnish to the Association on or about September 30, 2014, a comprehensive final report on the impact assessment of the Project.

10. In carrying out Part D.4 of the Project, the Borrower shall:

(a) regularly revise, and if needed update, a post-event monitoring framework plan, in terms acceptable to the Association and in compliance with the Project Implementation Manual, in order to track the expediency and efficacy of the BIP payout processes; and

(b) upon the occurrence of any Covered Risks and the triggering of BIP indemnity payments, prepare, on the basis of said post-event monitoring framework, a report to be reviewed with the Association to assess any necessary adjustments to the payout processes of the Project.

E. Budget Planning

11. The Borrower undertakes to:

(a) prepare through the PIU by no later than [_________] each year, commencing on [_____________], 20[__], and furnish to the Project Steering Committee and the Association for review and concurrence, a draft annual budget plan for the Project's activities for the following Fiscal Year, which plan shall identify Project activities by component and sub-component, and their related expenditures and financing sources; and

(b) thereafter, implement the Project activities during the respective Fiscal Year pursuant to such plan as s discussed with, and agreed by, the Project Steering Committee and the Association.

F. Indigenous Peoples Planning Framework

12. The Borrower shall implement the Project in accordance with the Indigenous People Planning Framework and carry out the activities contemplated therein in order to maximize the Tsaatan communities' opportunities to benefit from the Project.

13. The Borrower undertakes not to amend, waive, suspend or abrogate the Indigenous People Planning Framework, whether in whole or in part, if in the opinion of the Association such amendment, wavier, suspension or abrogation might materially and adversely affect the achievement of the objectives of said planning framework and the activities implemented thereunder.

SCHEDULE 5

Special Account

1. For the purposes of this Schedule:

(a) the term "eligible Categories" means Categories (1), (2), (3), (5), (6) (7) and (8) set forth in the table in paragraph 1 of Schedule 1 to this Agreement;

(b) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit allocated from time to time to the eligible Categories in accordance with the provisions of Schedule 1 to this Agreement; and

(c) the term "Authorized Allocation" means an amount equivalent to US$200,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 3(a) of this Schedule, provided, however, that unless the Association shall otherwise agree, the Authorized Allocation shall be limited to an amount equivalent to US$150,000 until the aggregate amount of withdrawals from the Credit Account plus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions shall be equal to or exceed the equivalent of SDR 500,000.

2. Payments out of the Special Account shall be made exclusively for eligible expenditures in accordance with the provisions of this Schedule.

3. After the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account shall be made as follows:

(a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for deposit into the Special Account of an amount or amounts which do not exceed the aggregate amount of the Authorized Allocation. On the basis of such request or requests, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount or amounts as the Borrower shall have requested.

(b) (i) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposits into the Special Account at such intervals as the Association shall specify.

(ii) Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to paragraph 4 of this Schedule for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been paid out of the Special Account for eligible expenditures. All such deposits shall be withdrawn by the Association from the Credit Account under the respective eligible Categories, and in the respective equivalent amounts, as shall have been justified by said documents and other evidence.

4. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for eligible expenditures.

5. Notwithstanding the provisions of paragraph 3 of this Schedule, the Association shall not be required to make further deposits into the Special Account:

(a) if, at any time, the Association shall have determined that all further withdrawals should be made by the Borrower directly from the Credit Account in accordance with the provisions of Article V of the General Conditions and paragraph (a) of Section 2.02 of this Agreement;

(b) if the Borrower shall have failed to furnish to the Association, within the period of time specified in Section 4.01 (b)(ii) of this Agreement, any of the audit reports required to be furnished to the Association pursuant to said Section in respect of the audit of the records and accounts for the Special Account;

(c) if, at any time, the Association shall have notified the Borrower of its intention to suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account pursuant to the provisions of Section 6.02 of the General Conditions; or

(d) once the total unwithdrawn amount of the Credit allocated to the eligible Categories, minus the total amount of all outstanding special commitments entered into by the Association pursuant to Section 5.02 of the General Conditions with respect to the Project, shall equal the equivalent of twice the amount of the Authorized Allocation.

Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to the eligible Categories shall follow such procedures as the Association shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for eligible expenditures.

6. (a) If the Association shall have determined at any time that any payment out of the Special Account: (i) was made for an expenditure or in an amount not eligible pursuant to paragraph 2 of this Schedule; or (ii) was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association: (A) provide such additional evidence as the Association may request; or (B) deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment or the portion thereof not so eligible or justified. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be.

(b) If the Association shall have determined at any time that any amount outstanding in the Special Account will not be required to cover further payments for eligible expenditures, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount.

(c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account.

(d) Refunds to the Association made pursuant to paragraphs 6 (a), (b) and (c) of this Schedule shall be credited to the Credit Account for subsequent withdrawal or for cancellation in accordance with the relevant provisions of this Agreement, including the General Conditions.

SCHEDULE 6

Performance Indicators

During each BIP Insurance Cycle under the Project, at least [four (4))] local insurance companies have applied and qualified to participate in the pilot Index-Based Livestock Insurance Program. By Project completion, twenty percent (20%) of the herders in the Selected Aimags have purchased BIP insurance coverage.

[1] The authorized amount of the Credit (US$8,000,000) to be converted into SDRs at the prevailing USD/SDR exchange on the last day of the month preceding the commencement of negotiations.

[2] To be confirmed by the Recipient during negotiations.

[3] To be confirmed by the Recipient during negotiations.

[4] The amounts in this table will be converted into SDR at negotiations.

[5] To be confirmed

[6] Repayment schedule subject to confirmation of Board date and Payment Dates. The table was prepared assuming a Board date somewhere in January/February 2010, and Payment Dates consistent with the original credit.

[7] To be provided.

[8] To be confirmed.

[9] To be discussed during negotiations.

[10] To be discussed during negotiations.