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percent (2%) per annum during the first ten (10) years, and (ii)three
percent (3%) per annum thereafter, on the outstanding disbursed balance of
tile Loan and on any due and unpaid interest accrued thereon.
b. Source and Origin of Goods and Services
Except for ocean shipping, goods and services financed by A.I.D.
under the project shall have their source and origin in the Cooperating
Country or the United States for grant funds and in the Cooperating
Country or countries included in A.I.D. Geographic Code 941 for loan
funds, except as A.I.D. may otherwise agree in writing. Ocean shipping
financed by A.I.D. under the loan shall, except as A.I.D. may otherwise
agree in writing, be financed on flag vessels of the United States, the
Cooperating Country and other countries in Code 941. Ocean shipping
financed by A.I.D. under the Grant shall be financed only on flag vessels
of the U.S. unless otherwise agreed in writing.
c. Conditions and Covenants
Except as A.I.D. may othe'rwise agree in writing, the A.I.D. assistance
will be subject to the following conditions and covenants:
1. Conditions Precedent
Prior to any disbursement of loan funds other than for administration
and technological support, the Cooperating Country shall
a. execute an acceptable contract for consulting services;
b. establish a satisfactory implementation and training plan
with cost estimates;
c. provide evidence that organization arrangements required for
effecLive implementation of the Project have been made; and
the Project.
d. provide area development plans for tambons participating in
2. Covenants
a. The Cooperating Country shall agree to furnish to A.I.D.,
prior to commencement of each construction activity for which reimbursement
will be sought from A.I.D., detailed plans and cost estimates for the construction
activity in form and substance satisfactory to A.I.D.
b. The Cooperating Country shall agree that the procurement and
use of pesticides for purposes of the Project shall comply with A.I.D.'s environmental
procedures regaraing the procurement and use of pesticides.