Selected Financing Mechanism

1. Concessional Long-Term Loan with Government Guarantee

GIDP’s partner Global Financial Institutions, including but not limited to Sovereign Wealth Funds, Royal Family Trust & Asset Management and Private Wealth (“Lenders”) will provide the long term loan with concessional rates for qualified infrastructure projects.

For the project to be qualified, the borrower Government Institutions and other entities or instrumentalities of the State shall be backed by a Sovereign Guarantee by the Government with concurrence by the Finance Department and/or Central Bank and/or the Monetary Authority of the Borrower.

2. Financing with Sub-Sovereign Guarantee

For the Borrower of the smaller Infrastructure Projects of the Municipalities, Provinces, and Cities, the Lenders requires that the loan is guaranteed by the State Guarantee Fund (SGF) of the Country of the borrower, provided that the SGF guaranteed amount is being covered by the National Legislature’s budgetary appropriations.

3. Financing Due Diligence

Once the borrower is qualified, GIDP Financing Consultants together with the Lenders, Credit Rating Agency, International and Local Loan Transaction Lawyers will conduct a comprehensive due diligence of the Borrower to strictly evaluate its credit quality and capacity to repay the loan.

4. Negotiating the Terms of the Loan

GIDP’s Financial Consultants will assist both the Lenders and the Borrower to negotiate a mutually beneficial loan terms, taking into consideration the credit quality, paying capacity, the Sovereign Guarantee and/or the Sub-Sovereign Guarantee, tax implications, compliance to the multilateral and/or bilateral treaties among the jurisdiction of the Lenders and the Borrower.

5. Governing Law of the Loan Agreement

The Governing Law of the Loan Agreement is English Law or New York Law. This is to ensure an international standard of justice and equity in the settlement and/or litigation of any disputes arising from the Loan Agreement.

6. Loan Disbursement Policy

GIDP’s Financial Consultants and the Lenders requires strict compliance to the Loan Disbursement Policy which includes: (a) detailed funds flow structure, (b) documented disbursement arrangements, (c) paper trail in all the succeeding transactions, (d) Borrower’s staff capacity and systems, and (e) audit and internal controls.

7. Allocation of Loan Proceeds

GIDP’s Financial Consultants and the Lenders require a strict implementation of the Loan Proceeds to ensure that detailed infrastructure expenditure table is followed. Any subsequent changes to the Loan Proceed Allocation shall be approved by the Guarantor and the Lenders.

8. Changes during the Project Implementation

Should there be any changes in the cost, financing plan, counterpart funding, disbursement percentages, disbursement arrangements, and changes in expenditures originally approved by the Lenders should be approved by the Guarantor and the Lender.

9. Other Loan Terms and Conditions

GIDP’s Financial Consultants and the Lenders strictly requires the Borrower to thoroughly study all the Loan Terms and Conditions before signing the Loan Agreement.

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