Description

The objective of the Nachtigal Hydro Power Project for Cameroon is to increase the availability of renewable energy power and leverage private finance for the project. The Project Company (under Local Loan Guarantee) will covenant, among other things, that it will: (i) use the proceeds of the disbursements under the IBRD-Guaranteed Loan Facility exclusively for the Project and in accordance with the terms and conditions of the IBRD-Guaranteed Loan Agreement, (ii) complywith applicable laws, including environmental and social laws, and the applicable World Bank environmental and social requirements under the World Bank Performance Standards; (iii) provide annual audited financial statements and other reports, (iv) provide access to the project, (v) not engage (or authorize or permit any affiliate or any other person acting on its behalf to engage in) in any sanctionable practice in connection with the project, (vi) comply with World bank requirements relating to Sanctionable Practices regarding individuals or firms included in the World Bank Group list of firms debarred from World Bank Group-financed contracts, (vii) provide certain notices and other information to IBRD, and (viii) obtain IBRD’s consent prior to agreeing to any change to any material Project related transaction document to which it is a party which would materially affect the rights or obligations of IBRD under the Guarantee Agreement.In addition, the project agreement may contain covenants by the project company to use its reasonable efforts prior to the end of each Local Loan term to induce each Guaranteed Lender to elect to extend its participation in the Local Loan and not exercise its rights under the Local Loan Purchase Agreement to have Cameroon buy out its participation in such loan. In the event the Guaranteed Lenders, whether some lenders or all lenders, exercise their rights to have such participations purchased by Cameroon, the project agreement may contain undertakings for the project company to use its reasonable efforts to find eligible commercial lenders to purchase such participations.