6.
MONITORING
6.1
Reporting
(a) Progress Reports
The Borrower through the PIE, shall send to the CEB a progress report (hereinafter, a “Progress Report”) (i) once a year, until the completion of the Project; and (ii) prior to every Disbursement Request.
Appendix 5 hereto provides a template specifying the minimum information required by the CEB. Alternative formats containing the same information may also be used.
In addition, each Progress Report shall include all required elements set out in points 2), 3) and 4) of Section "Specific Conditions" of Appendix 1 of this Agreement.
By way of derogation from any reporting requirements set out in the Original Agreement and the Addendum No. 1 Agreement, the Parties expressly agree that, as from the date of this Agreement, the Borrower shall submit a single consolidated Progress Report for the Project under the Original Agreement, the Addendum No. 1 Agreement and this Agreement. The consolidated Progress Report shall be prepared exclusively in accordance with the template set out in Appendix 5 to this Agreement and shall replace any separate progress reports otherwise required under the aforementioned agreements.
(b) Completion Report
Upon completion of the Project, the Borrower, through the PIE, shall submit a completion report (hereinafter, a “Completion Report”) including an appraisal of the Project’s social impact.
Appendix 5 hereto provides a template specifying the minimum information required by the CEB. Alternative formats containing the same information may also be used.
The Parties hereby expressly agree that no final report has to be submitted by the Borrower under, and in accordance with, Sub-clause 6.1 (b) (Project completion report) of the Original Agreement or the Addendum No. 1 Agreement.
6.2
Visits
The Borrower, directly or through the PIE, undertakes to favourably receive any monitoring/technical/evaluation visits, including by facilitating access to relevant Project / Sub-project sites/contractors, carried out by the CEB’s staff members or designated third parties.
6.3
Audit
Should the Borrower fail to comply with any of its undertakings under the Agreement, the Borrower undertakes to favourably receive any on-site audit, carried out by the CEB’s staff members or designated third parties, which shall be at the Borrower’s expense.
The Borrower, through the PIE, shall, in consultation with the CEB, arrange for a procurement audit related to the Initial Loan under the Original Agreement, the Addendum No. 1 Loan under the Addendum No. 1 Agreement and the Loan under this Agreement to be conducted by an independent auditor during the implementation period. The audit findings shall be shared with the CEB.
6.4
Project Information
The Borrower shall keep accounting records concerning the Project, which shall be in conformity with international standards, showing, at any point in time, the Project’s state of progress, and which shall record all operations made and identify the assets and services partially financed with the Loan.
The Borrower through the PIE shall deliver to the CEB in a timely manner any information or document concerning the financing or the implementation (including in
particular environmental/social and procurement issues) of the Project as the CEB may reasonably require.
The Borrower, through the PIE, shall inform the CEB immediately of any event affecting the implementation of the Project, including but not limited to:
(i) any action or protest initiated or any objection raised by any third party or
any complaint received by the Borrower or any litigation that is commenced or threatened against it with regard to procurement or environmental, social, occupational health and safety (e.g. loss of life, major accident) matters or other matters in connection with the Project; or
(ii) any enactment of or any amendment to any law, rule or regulation (or in
the application or official interpretation of any law, rule or regulation) in connection with the Project.
Any event that may have a material adverse impact on the implementation of the Project would constitute an event in the terms of Article 3.3 (h) of the Loan Regulations and may give rise to the early reimbursement, suspension or cancellation of the Loan under the terms of Articles 3.3 (Early reimbursement of disbursed loans), 3.5 (Suspension by the Bank of undisbursed loans) and 3.6 (Cancellation by the Bank of undisbursed loans) of the Loan Regulations.
6.5
Borrower Information
The Borrower, directly or through the PIE shall deliver a summary every year, in a form and substance satisfactory to the CEB, of the Borrower's annual budget and the related budget implementation and any such information on its general financial situation as the CEB may reasonably require from time to time, unless it is published on the official website of the Ministry of Finance or the National Bank of Serbia and available in English.
The Borrower, directly or through the PIE, shall inform the CEB of any Material Adverse Change immediately after becoming aware thereof. Any Material Adverse Change would constitute an event in the terms of Article 3.3 (h) of the Loan Regulations and may give rise to the early reimbursement, suspension or cancellation of the Loan under the terms of Articles 3.3 (Early reimbursement of disbursed loans), 3.5 (Suspension by the Bank of undisbursed loans) and 3.6 (Cancellation by the Bank of undisbursed loans) of the Loan Regulations.
6.6
Financial Covenants
(a) Cross-Default
The Borrower shall inform the CEB if any Cross-Default Event occurs. Any Cross- Default Event would constitute an event in the terms of Article 3.3 (h) of the Loan Regulations and may give rise to the suspension, cancellation or early reimbursement of the Loan under the terms of Articles 3.3 (Early reimbursement of disbursed loans), 3.5 (Suspension by the Bank of undisbursed loans) and 3.6 (Cancellation by the Bank of undisbursed loans) of the Loan Regulations.
For the purpose of this Agreement, “Cross-Default Event” means a situation in which, following any default in relation thereto, the Borrower is required or is capable of being required or will, following expiry of any applicable contractual grace period, be required or be capable of being required to prepay, repay or terminate ahead of
maturity any Debt Instrument or any commitment in connection with any Debt Instrument is cancelled or suspended.