On Wednesday, 9/3/1396 A.H. corresponding to 10 March 1976 A.D.,
this Agreement has been concluded in Taipei, Between:
1-Saudi Fund for Development, Riyadh, Saudi Arabia (hereinafter
called the Fund) represented by the authorised representative
Dr. Mahsoun B. Jalal, Vice Chairman and Managing Director of
the Fund, in signing this Agreement,
and
2-The Government of The Republic of China (hereinafter called t-
he Borrower) represented by the authorised representative, Mr.
K.T. Li, Minister of Finance, in signing this Agreement.
Preamble
Whereas, the Borrower has requested the Fund to lend him a loan
to assist in financing the North-South Freeway Project in the P-
rovince of Taiwan of the Republic of China, the main components
of which are described in Schedule 2 to this Agreement.
Whereas the Asian Development Bank has agreed to provide a loan
of US$25 million to the project and whereas the Government of t-
he Kingdom of Saudi Arabia has agreed to provide U.S.$30 million
to the project.
Whereas, the borrower undertakes to provide all the other finan-
cial requirements necessary to execute the project.
Whereas, the purpose of the Fund is to assist the developing co-
untries in developing their economics and to provide them with
loans necessary for the execution of their development projects
and programs.
Whereas, the Fund is convinced of the importance and usefulness
of the project in the economic and social development of the fr-
iendly nation of the Republic of China.
And with regard to the previous preamble in its decision No. 11/
9-13/1/96 issued by the Board approving to lend the Borrower, on
the terms and conditions set forth in this Agreement.
Now therefore, the parties hereto agree as follows:
Article Ⅰ
the Loan; Cost of the Loan and Other Charges; Repayment; Place
of Payment
SECTION 1.01. The Fund agree to lend to the Borrower, on the te-
rms and condition set forth in this Agreement or
referred to, an amount of One Hundred and Seventy
Five Million Saudi Riyals. (SR. 175 Million).
SECTION 1.02. The Borrower shall pay cost of the loan at the ra-
te of four percent (4％) per annum on the prinici-
pal amount of the Loan withdrawn and outstanding
from time to time. Cost of the loan shall accrue
from the respective dates on which amounts shall
be so withdrawn.
SECTION 1.03. The charge payable for special commiments entered
into by the Fund, at the request of the Borrower
pursuant to Section 3.02 of this Agreement, shall
be at the rate of one-half of one per cent ( of
1％) per annum on the principal amount of any such
special commitments outstanding from time to time.
SECTION 1.04. Cost of the loan and other charges shall be compu-
ted on the basis of a 360-day year of twelve 30-d-
ay month for any period less than a full one half
of a year.
SECTION 1.05. The period of loan is Eighteen (18) years of which
three (3) years is a grace period. The Borrower s-
hall repay the principal of the Loan in accordance
with the amortization schedule set forth in Sched-
ule 1 to this Agreement.
SECTION 1.06. Cost of the loan and loan and other charges shall
be payable semi-annually on June 30th and December
31st in each year.
SECTION 1.07. The Borrower shall have the right, upon payment of
all accrued cost of the loan and all other charges
, and upon not less than 45 days' notice to the F-
und, to repay in advance of maturity:
(a) all of the principaI amount of the Loan at the
time outstanding or (b) all of the principal amou-
nt of any one or more maturities, provided that on
the date of such repayment there shall not be out-
standing any portion of the Loan maturing after t-
he portion to be repaid.
SECTION 1.08. The principal of, and the cost of the loan and ot-
her charges on, the Loan shall be paid at such pl-
aces as shall be mutually agreed to be the Fund a-
nd the borrower.
Article Ⅱ
Currency Provisions
SECTION 2.01. Withdrawal of the proceeds of the Loan, its repay-
ment and all accounts of the financial transactio-
ns related to this Agreement, shall be in Saudi R-
iyals.
SECTION 2.02. The Fund will, at the request of the Borrower and
acting as its agent, purchase any currency dealt
with by the Saudi Arabian Monetary Agency needed
by the-Borrower for payment for, or reimbursement
of, the cost of goods financed out of the Loan, in
accordance with this Agreement. The amount consid-
ered as withdrawn from the Loan in such case shall
be qual to the amount of Saudi Riyals required to
purchase such foreign currency.
SECTION 2.03. The principal of the Loan shall be repayable, and
the cost of the loan and all other charges shall
be payable, in Saudi Riyals. The Fund will, at the
request of the Borrower-and acting as its agent-p-
urchase the Saudi Riyals in any foreign currency
or currencies acceptable to the Fund.
Payment shall be deemed to have been made only wh-
en and to the extent that Saudi Riyals have been
actually transferred to the Fund.
SECTION 2.04. Whenever it shall be necessary for the purposes of
this Agreement to determine the value of one curr-
ency in terms of another, such value shall be at
the rates determined at the time of transaction by
the Saudi Arabian Monetary Agency.
Article Ⅲ
Withdrawal and Use of Proceeds of the Loan
SECTION 3.01. The Borrower shall be entitled to withdraw from t-
he Loan amounts expended or to be expended for the
projects in accordance with the provisions of this
Agreement. Except as the Fund may otherwise agree,
no amount shall be with-drawan from the Loan on A-
ccount of orders made and approved by the Fund pr-
ior to September 1,1975. However, the Fund will n-
ot reimburse the Borrower for payment made prior
to January 1st,1976.
SECTION 3.02. Upon the Borrower's request and upon such terms a-
nd conditions as shall be agreed upon between the
Borrower and the Fund, the Fund may enter into sp-
ecial commitments in writing to pay amounts to the
Borrower or others in respect of the cost of goods
to be financed under this Agreement notwithstandi-
ng any subsequent suspension or cancellation
SECTION 3.03. When the Borrower shall desire to withdraw any am-
ount from the Loan or to request the Fund to enter
into a special commitment pursuant to Section 3.02
, the Borrower shall deliver to the Fund a written
application in such form, and containing such sta-
tements and agreements as the Fund shall rasonably
request. Application for withdrawal, with the nec-
essary documentation as hereinafter in this Artic-
le provided, shall, except as the Borrower and the
Fund shall otherwise agree, be made promptly in r-
elation to expenditures for the project.
SECTION 3.04. The Borrower shall furnish to the Fund such docum-
ents and other evidence in support of the applica-
tion for withdrawal as the Fund shall reasonably
request, whether before or after the Fund shall h-
ave permitted any withdrawal requested in the app-
lication.
SECTION 3.05. Each application for withdrawal and the accompany-
ing documents and other evidence must be sufficie-
nt in form and substance to satisfy the Fund that
the Borrower is entitled to withdraw from the Loan
the amount applied for and that the amount to be
withdrawn from the Loan is to be used only for the
purposes specified in this Agreement.
SECTION 3.06. The Borrower shall apply the proceeds of the Loan
exclusively to financing the reasonable cost of g-
oods required to carry out the Project described
in Schedule 2 to this Agreement. The specific goo-
ds to be financed out of the proceeds of the Loan
and the methods and procedures for procurement of
such goods be determined by agreement between the
Borrower and the Fund, subject to modification by
further agreement between them
SECTION 3.07. The Borrower shall cause all goods financed out of
the proceeds of the Loan to be used exclusively in
the carrying out of the Project.
SECTION 3.08. Payment by the Fund of amounts which the Borrower
is entitled to withdraw from the Loan shall be ma-
de to or on the order of the Borrower.
SECTION 3.09. The right of the Borrower to make withdrawals from
the Loan shall terminate on March 31,1979 or such
other date as may from time to time be agreed bet-
ween the borrower and the Fund.
Article Ⅳ
Particular Convenants
SECTION 4.01. The Borrower shall carry out the Project with due
diligence and efficiency and in conformity with a-
ppropriate administrative and technical practices,
and shall provide promptly as needed the necessary
funds, facilities, services and other resources r-
equired for the implementation of the Project.
SECTION 4.02. In carrying out the Project, the Borrower shall e-
mploy or cause to be employed suppliers and consu-
ltants acceptable to the Fund. Furthermore, the a-
warding of contracts for the execution of the pro-
ject shall be subject to the fund's approval.
SECTION 4.03. The Borrower shall operate and maintain the build-
ings, civil work and the equipment which are part
of the Project financed under this agreement or c-
ause these to be operated and maintained in accor-
dance with sound administrative and technical pra-
ctices.
SECTION 4.04. The Borrower and the Fund shall cooperate fully to
assure that the purposed of the Loan will be acco-
mplished. To that end, each of them shall furnish
to the other all such information as it shall rea-
sonably request with regard to the general status
of the Loan.
SECTION 4.05. The Borrower and the Fund shall from time to time
exchange views through their representatives with
regards to matters relating to the purposes of the
Loan and the maintenance of the service thereof.
The Borrower shall promptly inform the Fund of any
condition which interferes or threatens to interf-
ere with, the accomplishment of the purposes of t-
he Loan (including substantial increases in the c-
ost of the Project) or the maintenance of the ser-
vice thereof.
SECTION 4.06. The principal of, and the cost of the Loan and all
other charges shall be paid without deduction for,
and free from any tax in force under the laws or
the Borrower of laws in effect in the territories
(or may be in effect in the future).
SECTION 4.07. This Agreement shall be free from any taxes, impo-
sts, levies, fees and dues of the Borrower or laws
in effect in its territories or in connection with
the execution, issues, delivery or registration t-
hereof and the Borrower shall pay or cause to be
paid all such taxes, imposts, levies and dues, if
any, imposed under the laws of the country or cou-
ntries in whose currency the Loan is payable or l-
aws in effect in the territories of such country
or countries.
SECTION 4.08. The principal of, the cost of the Loan and other
charges on the Loan shall be paid free from all r-
estrictions imposed under the laws of the Borrower
or laws in effect in its territories.
SECTION 4.09. All documents, records, correspondence and similar
material in relation to the Agreement shall be co-
nsidered by the Borrower and the Fund as confiden-
tial matters.
SECTION 4.10. The Borrower undertakes to insure, or make adequa-
te provision for the insurance of, the imported g-
oods to be financed out of the proceeds of the Lo-
an against hazards incident to the acquisition, t-
ransportation and delivery thereof to the place of
use or installation and for such insurance any in-
demnity shall be payable in a currency freely usa-
ble by the Borrower to replace or repair such goo-
ds.
SECTION 4.11. It is the mutual intention of the Borrower and the
Fund that no other external debt shall enjoy any
priority over the Loan by way of a lien hereafter
created on governmental assets. To that end, the
Borrower undertakes that, except as the Fund shall
otherwise agree, if the lien shall be created on
any assets of the Borrower as security for the ex-
ternal debt, such lien will ipso facto equally and
── ───
ratably secure the payment of the principal of, a-
nd cost of the Loan and other charges on the Loan,
and that in the creation of any such lien express
provision will be made to that effect; provided,
however, that the foregoing provisions of this Se-
ction shall not apply to: (i) any lien created on
property, at the time of purchase thereof, solely
as security for the payment of the purchase price
of such property; (ii) any lien on commercial goo-
ds to secure a debt maturing not more than one ye-
ar after the date on which it is originally incur-
red and to be paid out of the proceeds of the sale
of such commercial goods; or (iii) any lien arisi-
ng in the ordinary course of banking transactions
and securing a debt maturing not more than one ye-
ar after its date.
The term “assets of the Borrower” as used in th-
is Section includes assets of the Borrower or of
any of its political subdivisions or of any agency
of the Borrower or of any such political subdivis-
ions, including the Central Bank of the Borrower
or any other institution performing the functions
of a central bank.
SECTION 4.12. The Borrower shall enable the Fund's representati-
ves to examine all plants, installations, sites,
works, buildings, property and equipment of the B-
orrower related to the project and any relevant r-
ecords and documents.
SECTION 4.13. The Borrower shall make available as needed all n-
ecessary other funds which shall be required for
the carrying out of the Project.
SECTION 4.14. The Borrower shall furnish to the Fund, if not has
been done so, the studies of, and the plans and s-
pecifications for the Project, the schedules of i-
ts execution and any material modification subseq-
uently made therein, in such detail as the Fund s-
hall from time to time reasonably request.
SECTION 4.15. The Borrower shall with respect to the project ma-
intain records adequate to identify the goods fin-
anced out of the proceeds of the Loan, to disclos-
e the use thereof in the Project, to record the p-
rogress of the Project (including the cost thereo-
f), and to reflect in accordance with consistentl-
y maintained sound accounting practices the opera-
tions and financial position of the agency which
is carrying out the project, shall afford all rea-
sonable opportunity for accredited representatives
of the Fund to make visits for purposes related to
the Loan, and to inspect the Project, the goods a-
nd any relevant records and documents; and shall
furnish to the Fund all such information as the F-
und shall reasonably request concerning the expen-
diture of the proceeds of the Loan, the Project,
the goodds and the operations and financial posit-
ion of the agency or authority which is carrying
out the Project.
SECTION 4.16. The Borrower shall extend the necessary facilities
to the fund's officials assigned by the Fund in r-
espect of the Loan in the country of the Borrower
and to grant them immunity similar to those grant-
ed to diplomatic missions.
SECTION 4.17. The Borrower shall take or cause to be taken all
action which shall be necessary on its part to ex-
ecute the Project and to eliminate any action whi-
ch would prevent or interfere with the execution
of operation of the Project or the performance of
any of the provisions of this Agreement.
SECTION 4.18. All Fund assets and income shall be exonerated fr-
om nationalization, confiscation or seizure.
SECTION 4.19. All technical and administrative requirements req-
uired from the Borrower by agreements signed with
the Borrower by other financiers shall be deemed
required by this Agreement even if it was not sep-
cifically delineated.
SECTION 4.20. The Borrower undertakes for the purpose of carryi-
ng out and operating the project, to make appropr-
iate arrangements that it will be entrusted to a
department, agency, institution or company which
will at all times function under rules or regulat-
ions satisfactory to the Fund and have such powers
, management and efficient carrying out and opera-
tion of the Project.
The Borrower will inform the Fund of any proposed
action which would affect the nature of constitut-
ion of the department, agency, institution or com-
pany which is carrying out or operating the Proje-
nt and shall afford the Fund all reasonable oppor-
tunity, in advance of the taking of such action to
exchange views with the Borrower with respect the-
reof.
Article Ⅴ
Cancellation and Suspension
SECTION 5.01. The Borrower may by notice to the Fund cancel or
suspend any amount of the Loan which the Borrower
shall not have withdrawn prior to the giving of s-
uch notice, exept that the Borrower may not so ca-
ncel or suspend any amount of the Loan in respect
of which the Fund shall have entered into special
commitment pursuant to Section 5.02. of this Agre-
ement.
SECTION 5.02. If any of the following events shall have happened
and be continuing, the Fund may by notice to the
Borrower suspend in whole or in part the right of
the Borrower to make withdrawals from the Loan:
(a) A default shall have occurred in the payment
of principal or cost of the Loan or any other
payment required under this Agreement or any
other Loan Agreement between the Borrower and
the Fund;
(b) A default shall have occurred in the performa-
nce any other covenant or agreement on the pa-
rt of the Borrower under this Agreement;
(c) The fund shall have suspended in whole or in
part the right of the Borrower to make withdr-
awals under any other loan agreement between
the Borrower and the Fund because of a default
on the part of the Borrower;
(d) An extraordinary situation shall have arisen
which shall make it improbable that the Borro-
wer will be able to perform its obligations u-
nder this Agreement.
Any event occurring after date of this Agreement
and prior to the effective date which would have
entitled the Fund to suspend the Borrower's right
to make withdrawals if this Agreement had been ef-
fective on the date such event occurred will enti-
le the Fund to supend withdrawals under the Loan
exactly as if it had occurred after the effective
date.
The right of the Borrower to make withdrawals und-
er the Loan shall continue to be suspended in who-
le or impart, as the case may be, until the event
or events which gave rise to such suspension shall
have ceased to exist or until the Fund shall have
notified the Borrower that the right to make with-
drawals has been restored; provided, however, that
in the case of any such notice of restoration the
right to make withdrawals shall be restored only
to the extent and subject to the conditions speci-
fied in such notice, and no such notice shall eff-
ect or impair any right, power or remedy of the F-
und in respect of any other subsequent event desc-
ribed in this Section.
SECTION 5.03. If any event specified in paragraph (a) of Section
5.02. shall occur and shall continue for a period
of thirty days after notice thereof shall have be-
en given by the Fund to the Borrower, of if any e-
vent specified in paragraphs (b), (c) and (d) of
Section 5.02. shall occur and shall continue for a
period of sixty days after notice thereof shall h-
ave been given by the Fund to the Borrower, then
at any subsequent time during the continuance the-
reof, the Fund at its option, may declare the pri-
ncipal of the Loan to be due and payable immediat-
ely, and upon any such declaration such principal
shall become due and payable immediately, anything
in this Agreement to the contrary notwithstanding.
SECTION 5.04. If (a) the right of the Borrower to make withdraw-
als from the Loan shall have been suspended with
respect to any amount of Loan for a continuous pe-
riod of thirty days, or (b) by the date specified
in Section 3.09 as the closing Date an amunt of
the Loan shall remain unwithdrawn, the Fund may be
notice to the Borrower terminate the right of the
Borrower to make withdrawals with respect to such
amount. Upon the giving of such notice such amount
of the Loan shall be cancelled.
SECTION 5.05. No cancellation or suspension by the Fund shall a-
pply to amounts subject to any special commitment
entered into by the Fund pursuant to Section 3.02
except as expressly provided in such commitment.
SECTION 5.06. Any cancellation or suspension shall be applied
pro rata to the several maturates of the princip-
al amount of the Loan as set forth in the amortiz-
ation schedule to this Agreement.
SECTION 5.07. Notwithstanding any cancellation or suspension, a-
ll the provisions of this Agreement shall be cont-
inued in full force and effect except as in this
Acticle specifically provided.
Article Ⅵ
Enforceability of this Agreement; Failure to Exercise Rights; A-
rbitration
SECTION 6.01. The rights and obligations of the Fund and the Bo-
rrower under this Agreement shall be valid and en-
forceable in accordance with their terms notwiths-
tanding any local law to the contrary. Neither the
Borrower nor the Fund shall be entitled under any
circum stances to assert any claim that any provi-
sion of this Agreement is invalid or unenforceable
for any reason.
SECTION 6.02. No delay in exercising, or omission to exercise,
any right, power or remedy occurring to either pa-
rty under this Agreement upon any default shall i-
mpair any such right, power or remedy, or be cons-
trued to be a waiver there of or an acquiescence
in such default; nor shall the action of such par-
ty in respect of any default, or any acquiescence
in any default, affect of impair any right, power
or remedy of such party in respect of any other or
subsequent default.
SECTION 6.03. Any controversy between the parties to this Agree-
ment and any claim by either such party against t-
he other arising under this Agreement shall be de-
termined by agreement of the parties.
If no agreement is reached within ninety (90) days
the controversy or claim shall be submitted to ar-
bitration by an Arbitral Tribunal as provided in
the following section.
SECTION 6.04. The Arbitral Tribunal shall consist of three arbi-
trators appointd as follows: one arbitrator shall
be appointed by the Borrower; the second arbitrat-
or shall be appointed by the Fund; and the third
arbitrator (hereinafter sometime called the Umpire
) shall be appointed by agreement of the parties
or, if they shall not agree, by the Organization
of the Islamic Conference at the request of either
party. If either of the parties shall fail to app-
oint an arbitrator, such arbitrator shall be appo-
inted by the Organization of the Islamic Conferen-
ce upon the request of the adverse party. In case
any arbitrator appointed in accordance with this
Section shall resign, die or become unable to act,
a successor arbitrator shall be appointed in the
same manner as hereinafter prescribed for the app-
ointment of the original arbitrator and such succ-
essor shall have all the powers and duties or such
original arbitrator.
An arbitration proceeding may be instituted under
this Section upon notice by the party instituting
such proceeding to the other party. Such notice s-
hall contain a statement setting forth the nature
of the controversy or claim to be submitted to ar-
bitration, the nature and extent of the relief so-
ught, and the name of the arbitrator appointed by
the party instituting such proceeding. Within thi-
rty days after receiving such notice, the adverse
party shall notify the party instituting the proc-
eedings of the name of the arbitrator appointed by
such adverse party.
If within sixty days after the receiving of such
notice instituting the arbitration proceeding the
parties shall not have agreed upon an Umpire, eit-
her party may request the appointment of an umpire
as provided in the first paragraph of this Section
.
The Arbitral Tribunal shall convene at such time
and place as shall be fixed by the Umpire. Therea-
fter, the Abritral Tribunal shall determine where
and when it shall sit.
Subject to the provision of this Section and exce-
pt as the parties shall otherwise agree, the Arbi-
tral Tribunal shall decide all questions relating
to its competence and shall determine its procedu-
re. All decisions of the Arbitral Tribunal shall
be by majority votes. The Arbitral Tribunal shall
afford all parties a fair hearing and shall render
its award in writing. Such award may be rendered
by default. An award signed by a majority or the
Arbitral Tribunal shall constitute the award of s-
uch Tribunal. A signed counterpart of the award s-
hall be transmitted to each party. Any such award
rendered in accordance with the provisions of this
Section shall be final and binding upon the parti-
es to this Agreement. Each party shall abide by a-
nd comply with any such award rendered by the Arb-
itral Tribunal.
The parties shall fix the amount of remuneration
or fees of the arbitrators and such other persons
as shall be required for the conduct of the arbit-
ration proceedings. If the parties shall not agree
on such amount before the Arbitral Tribunal shall
convene the Arbitral Tribunal shall fix such amou-
nt as shall be reasonable under the circumstances.
Each party shall defray its own expenses in the a-
rbitration proceedings. The costs of the Arbitral
Tribunal shall be divided between and borne equal-
ly by the parties. Any question concerning the di-
vision of the costs of the Arbitral Tribunal or t-
he procedure for payment of such costs shall be
determined by the Arbitral Tribunal.
The Arbitral Tribunal shall apply the principles
common under the current laws of the Borrower and
the regulations of the Kingdom of Saudi Arabia, as
well as the principles of justice.
SECTION 6.05. The provisions for arbitration set forth in the p-
revious Section shall be in lieu of any other pro-
cedure for the determination of controversies bet-
ween the parties to this Agreement and any claim
by either party against the other party arising t-
hereunder.
SECTION 6.06. Service of any notice or process in connection wi-
th any proceeding under this Article may be made
in the manner provided in Section 7.01. The parti-
es to this Agreement may waive any and all other
requirements for the service of any such notice or
process.
Artice Ⅶ
Miscellaneous Provisions
SECTION 7.01. Any notice or request required or permitted to be
given or made under this Agreement shall be in wr-
iting. Except as otherwise provided in Section 8.0
3, such notice or request shall be deemed to have
been duly given or made when it shall be delivered
and acknowledged, by hand or by mail, telegram, c-
able or radiogram to the party to which it is req-
uired or permitted to be given or made at such pa-
rty's address specified in this Agreement, or at
such other address as such party shall have desig-
nated by notice to the party giving such notice or
making such request.
SECTION 7.02. The Borrower shall furnish to the Fund sufficient
evidence of the authority of the person or persons
who will sign the applications provided for in Ar-
ticle Ⅲ or who will, on behalf of the Borrower,
take any other action or execute any other docume-
nts required or permitted to be taken or executed
by the Borrower under this Agreement, and the aut-
henticated specimen signature of each such person.
SECTION 7.03. Any action required or permitted to be taken, and
any documents required or permitted to be executed
,under this Agreement on behalf of the Borrower m-
ay be taken or executed by the Minister of Finance
or any person thereunto authorized in writing by
him.
Any Modification or amplification of the provisio-
ns of this Agreement may be agreed to on behalf of
the Borrower by written instrument executed on be-
half of the Borrower by his aforementioned repres-
entative or any person thereunto authorized in wr-
iting by him; provided that, in the opinion of su-
ch representative, such modification or amplifica-
tion is reasonable in the circumstances and will
not substantially increase the obligations of the
Borrower under this Agreement. The Fund may accep-
t the execution by such representative or other p-
erson of any such instrument as conclusive eviden-
ce that in the opinion of such representative any
modification or amplification of the provisions of
this Agreement effected by such instrument is rea-
sonable in the circumstances and will not substan-
tially increase the obligations of the Borrower t-
hereunder.
Article Ⅷ
Effective Date: Termination
SECTION 8.01. This Agreement shall not become effective until e-
vidence satisfactory to the Fund shall have been
furnished to the Fund that the execution and deli-
very of this Agreement on behalf of the Borrower
have been duly authorized or ratified by all nece-
ssary governmental action.
SECTION 8.02. As part of the evidence to be furnished pursuant
to Section 8.01. the Borrower shall furnish to the
Fund an opinion or opinions of competent authority
showing that this Agreement has been duly authori-
zed or ratified by, and executed and delivered on
behalf of, the Borrower and constitutes a valid a-
nd binding obligation of the Borrower in accordan-
ce with its terms.
SECTION 8.03. Except as shall be otherwise agreed by the Fund a-
nd the Borrower, this Agreement shall come into f-
orce and effect on the date upon which the Fund d-
ispatches by calbe to the Borrower notice of its
acceptance of the evidence required by Section 8.0
2.
SECTION 8.04. If all acts required to be performed pursuant to
Section 8.01 shall not have been performed before
ninety days from the date of this Agreement or su-
ch other date as shall be agreed upon by the Fund
and the Borrower, the Fund may at any time therea-
fter at its option terminate this Agreement by no-
tice to the Borrower. Upon the giving of such not-
ice this Agreement and all obligations of the par-
ties thereunder shall forthwith terminate.
SECTION 8.05. If any when the entire principal amount of the Lo-
an and all costs of the Loan and other charges wh-
ich shall have accrued on the Loan shall have been
paid, this Agreement and all obligations of the p-
arties thereunder shall forthwith terminate.
Article Ⅸ
Definitions
SECTION 9.01. Except where the context otherwise requires, the
following meanings wherever used in this Agreement
or any schedule hereto:
1) The term “Project” means the project or proj-
ects of program or programs for which the Loan
is granted as described in Schedule 2 to this
Agreement and as the description thereof shall
be amended from time to time by agreement betw-
een the Fund and the Borrower.
2) The term “goods” means equipment, supplies a-
nd services which are required for the Project.
Wherever reference is made to the cost of any
goods, such cost shall be deemed to include the
cost of importing such goods into the territor-
ies of the Borrower.
The following addresses are specified for the purposes of Secti-
on 7.01:
For the Borrower:
Ministry of Finance
Republic of China
No. 2 Ai Kuo West Road
Taipei, Taiwan
Alternative address for cablegrams and radiograms:
TELEX: Taipei 11840
For the fund:
Saudi Fund for Development
P.O. Box 5711
Riyadh
Saudi Arabia
IN WITHNESSETH WHEREOF the parties hereto acting through their
representatives thereunto duly authorized, have caused this Agr-
eement to be signed in their respective names and delivered in
Taipei in duplicate in Arabic, each considered an original and
all to the same and one effect, as of the day and year first ab-
ove written.
Authorized Representative for THE SAUDI FUND FOR DEVELOPMENT
(Signed)
MAHSOUN B. JALAL
Authoriezed Representative for THE REPUBLIC OF CHINA
(Singed)
K. T. LI
SCHEDULE 1
Amortization Schedule
(Repayment of Principal)
No. of Amount
Installment Date Payment Due Million Saudi Riyals
────── ──────── ──────────
1 June 30, 1979 5.93
2 December 31,1979 5.83
3 June 30, 1980 5.83
4 December 31,1980 5.83
5 June 30, 1981 5.83
6 December 31,1981 5.83
7 June 30, 1982 5.83
8 December 31,1982 5.83
9 June 30, 1983 5.83
10 December 31,1983 5.83
11 June 30, 1984 5.83
12 December 31,1984 5.83
13 June 30, 1985 5.83
14 December 31,1985 5.83
15 June 30, 1986 5.83
16 December 31,1986 5.83
17 June 30, 1987 5.83
18 December 31,1987 5.83
19 June 30, 1988 5.83
20 December 31,1988 5.83
21 June 30, 1989 5.83
22 December 31,1989 5.83
23 June 30, 1990 5.83
24 December 31,1990 5.83
25 June 30, 1991 5.83
26 December 31,1991 5.83
27 June 30, 1992 5.83
28 December 31,1992 5.83
29 June 30, 1993 5.83
30 December 31,1993 5.83
───
(Saudi Riyals One Hundred and Seventy 175
Five Million)
SCHEDULE 2
The Taiwan Area North-South Freeway Project begins at Keeling in
the north and terminates at Fengshen. The project will serve all
people and industries in the western plains of Taiwan, an area
which contains approximately 80％ of the population, and 90％ of
the industries of Taiwan.
The freeway will run along the western corridor with a total le-
ngth of 373.4 kilometers and will consist of:
16.5 KM of eight lanes highway
18.4 KM of six lanes highway
338.5 KM of four lanes highway
The project will be constructed in four stages. The construction
of the freeway has begun in August 1971 and is expected to be c-
ompleted by the end of 1978.
The Loan provided by the Saudi Fund for Development will be used
to finance the third stage of the project, which involves the c-
onstruction of two sections:
One between Taichung
and Changhua (20 KM),
and the other between
Hsinying and Tainan (30 KM),
for a total of about
fifty kilometers (50 KM),
The construction of this third stage started in April 1975 and
is excepted to be completed in June 1978.
The total cost of the project is estimated at US$1,300 million
distributed as follows:
Land 95
Planning and Design 10
Construction 895
Supervision and Management 50
───
Sub-total 1,050
Loans repayment during
construction 250
───
Total (US$ Millions) 1,300
The financing scheme of the project is expected to be as follows
:
Fuel Tax 165
Toll 65
Government Budget 490
Construction Bond 380
Foreign Loans (US$200 Millions)
Asian Development Bank 25
Saudi Arabian Government 30
Saudi Fund for Development 50
Loans to be arranged 95
──
1,300
The third stage of the project is expected to cost about US$125
million.
The loan provided by the Saudi Fund for Development of 175 mill-
ion Saudi Riyals (approximately US$50 million) will be used inf-
inancing this (third) stage. The rest of the cost of constructi-
on for this (third) stage will be supplied by the Government of
the Republic of China.