The Government of the Republic of China and the Government of
the Republic of Macedonia (hereinafter referred to separately as
"the ROC" and "the ROM" respectively, and jointly as "the Parti-
es"),
Mindful of the need for small Infrastructural development in the
Republic of Macedonia, and Desirous of further cementing the
friendly ties existing between them,Have agreed as follows:

Article 1
Scope and Nature of Assistance
(1) The ROC shall assist in ten (10) Infrastructural projects in
the Republic of Macedonia, selected after consultation by
both Parties as detailed in the Annex to this Agreement.
(2) The total assistance expressed in monetary terms shall be
Ten and a Half Million United States Dollars (US$10,500,000.
00), as a grant in aid of economic development by the ROC to
the ROM.
(3) The ROM shall undertake to make up any difference should the
total cost of the selected 10 projects exceed the amount in
the previous paragraph.
(4) The Parties shall each be responsible for administrative ex-
penses, including travel and other out-of-pocket expenses,
relating to projects under this Agreement. No salary or al-
lowance, including those for temporary personnel, or similar
supporting cost, including international travel, may be cha-
rged by either Party against aid funds under this Agreement.

Article 2
EXECUTIVE AND IMPLEMENTING AGENCIES
(1) The ROC designates the Embassy of the Republic of China in
Skopje (herein-after referred to as "the ROC Embassy") and
the International Cooperation Development Foundation (herei-
nafter referred to as "ICDF"), including its Technical Miss-
ion attached to the ROC Embassy, as its executive agencies
under this Agreement.
(2) Macedonia designates its Ministry of Development (hereinaft-
er referred to as "MOD") and the Embassy of the Republic of
Macedonia in Taipei (hereinafter referred to as "the ROM Em-
bassy") as its executive agencies under this Agreement.
(3) Depending on the nature of individual projects, the ROM may
designate a relevant ministry, or its regional unit, local
selfgovernment, public enterprise as the Implementing Agency
(hereinafter referred to as "Implementing Agency") of a pa-
rticular project. The Implementing Agency shall be respons-
ible for carrying out the project from beginning to end inc-
luding, inter alia, awarding of contract, supervising the
contractors, and rendering final account of all expenses.

Article 3
GUIDELINES OF ASSISTANCE
(1) The ROM agrees that the grants in aid under this Agreement
shall be administered in an open and accountable manner, in
accordance with all its laws and regulations governing invi-
tations to bid, awarding of contract, foreign exchange cont-
rol, and payment schedule.
(2) When a project is administered by an Implementing Agency,
the ROM agrees that the same principles stipulated in the
above paragraph shall be strictly observed. The ROM shall
take immediate legal action against an Implementing Agency
and its personnel should any irregularity occur, and thereby
recover funds lost or inappropriately spent..
(3) The ROM agrees that representatives of the ROC Embassy and
the ICDF shall have access to the books and documents of its
Executive and Implementing Agencies relating to projects un-
der this Agreement, and may visit the sites at any time to
verify the progress.

Article 4
INFORMATION ON PROJECTS
(1) The ROM agrees that for all projects listed in the Annex,
the ROC Embassy shall be given full information, including
technical data, estimated price or cost, and expected benef-
it to the ROM economic development, for their justification.
Where the ROC deems that more information is needed, the ROM
agrees to furnish them without reserve.
(2) The ROC shall speedily review all information furnished by
the ROM and indicate its consent for estimated expenses, so
as not to delay the progress of any project.

Article 5
PROCUREMENT OF GOODS & SERVICES
(1) The ROM agrees that the quantity and quality of goods and
services required for a project shall be consistent with the
objectives of the project.
(2) Where the quality, price, and timely delivery are equal or
reasonably comparable, the goods produced or originated in
the Republic of Macedonia shall be given first consideration
.
(3) For procurement of goods not produced in the Republic of Ma-
cedonia, the ROM shall afford all eligible international bi-
dders, including those from the Republic of China, adequate
notification and equal opportunity to bid on a competitive
basis.
(4) The ROC Embassy shall be consulted before the awarding of a
contract for goods not produced and/or services available in
the Republic of Macedonia.

Article 6
RELEASE OF FUNDS
(1) The ROC Embassy shall establish a special account denominat-
ed in United States dollars with the Skopje Representative
Office of the International Commercial Bank of China (herei-
nafter referred to as "ICBC"), into which all aid funds rec-
eived from the ROC shall be deposited. This special account
may be opened at the National Bank of the Republic of Maced-
onia, before the ICBC Representative Office in Skopje offic-
ially opens for business.
(2) Before the implementation of each separate project, an impl-
ementation schedule shall be submitted by the MOD to the ROC
Embassy, for both parties to reach agreement on a disbursem-
ent schedule.
(3) Funds for each project shall be released in stages, in acco-
rdance with the implementation progress, and as agreed upon
between the ROC Embassy and MOD.
(4) Upon the receipt of proper documentation from MOD, the ROC
Embassy shall pay the requested amount directly to the supp-
liers or contractors. Only in the case of payments less th-
an 100,000 Denars each, may such payments be made in care of
Implementing Agencies.
(5) For Project No. 10, "Subsidy to Local Governments for Basic
Infrastructural Projects in Economically Under-developed Ar-
eas" in the Annex, the ROC Embassy will open a special acco-
unt, entitled "Financial Aid from the Republic of China" for
MOD, within the National Bank of the Republic of Macedonia.
MOD shall submit a drawdown request supplemented with proper
documents showing what local projects are ready for impleme-
ntation. Thereupon the ROC Embassy shall disburse the first
payment of twenty percent (20%) of funds allocated for Proj-
ect No. 10 into the account. For all subsequent drawdowns,
proper documents shall be submitted to prove that more than
seventy percent (70%) of funds in the account have already
been disbursed, and that the use of these funds has been in
accordance with the appropriate implementation of the proje-
ct and consistent with their stated purpose.

Article 7
CHANGE OR SUBSTITUTION OF PROJECT
(1) No part of any project listed in the Annex may be changed
or altered without the consent of the ROC. Any fund disbur-
sed by the ROM without such consent shall be reimbursed to
the special account as specified in Paragraph (1) of Article
6.
(2) Any change or substitution of a project shall first be disc-
ussed between the Parties through normal diplomatic channel
and confirmed in writing before it may be implemented.

Article 8
PERIOD OF VALIDITY & SETTLEMENT OF DISPUTE
(1) This Agreement shall enter into force on the date of signat-
ure thereof and remain valid until all ten projects listed
in the Annex have been completed and all special bank accou-
nts have been closed.
(2) Any dispute arising from interpretation of this Agreement
shall be settled by consultation between the Parties through
normal diplomatic channels.
(3) This Agreement may, at the request of either Party, be revi-
sed by mutual consent.
IN WITNESS WHWEREOF the undersigned, being duly authorized by
their respective Governments, have signed this Agreement.
Done in Skopje on this 20th day of October 1999, in duplicate in
the Macedonian, Chinese and English languages, all three texts
being equally authentic. In case of any divergence of interpre-
tation, the English text shall prevail.

FOR THE GOVERNMENT OF
THE REPUBLIC OF CHINA
PETER P. C. CHENG
MINISTER, EMBASSY OF ROC

FOR THE GOVERNMENT OF
THE REPUBLIC OF MACEDONIA
MILIJANAN B. DANEVSKA
MINISTER OF DEVELOPMENT