Cost Estimates
The adjustment and other costs of the policy and institutional reforms addressed by the program loans are estimated to be at least $255 million
equivalent.

Financing Plan
SPG has requested two program loans equivalent to $210 million to supported the proposed program as indicated in the development policy letter. The first, second, and third tranches, equivalent to, respectively, $100 million, $70 million and $40 million, will be made available upon compliance with tranche release conditions following loan effectiveness.

Program Loan Amounts and Terms
A program loan is proposed in an amount equivalent to Special Drawing Rights 69,843,000 (equivalent to $100 million) from ADB’s Special Funds resources, with a maturity of 24 years, including a grace period of 8 years; interest of 1% per annum during the grace period and 1.5% thereafter; and such other terms and conditions as set forth in the draft Loan and Program Agreements.

A second program loan is proposed in an amount of ¥11,968,550,000 (equivalent to $110 million) from ADB’s ordinary capital resources, with a term of 15 years, including a grace period of 3 years; interest to be determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility; and such other terms and conditions as set forth in the draft Loan and Program Agreements.

Program Period
The program period will be from 1 February 2004 to 1 February 2007.

Executing Agency
The Finance Department, SPG