Technical, economic, financial, institutional and environmental soundness

C. In making loans, IBRD must act prudently and pay due regard to the prospects of repayment.

Decisions to make loans are based upon, among other things, studies by IBRD of a member

country's economic structure, including assessments of its recourses and ability to generate sufficient

Foreign exchange to meet debt-service obligations.

D. IBRD must be satisfied that in the prevailing market conditions (taking into account the

member’s overall external financing requirements), the borrower would be unable to obtain financing

Under conditions which, in the opinion of IBRD, are reasonable for the borrower. IBRD

Is intended to promote private investment, not to complete with it.

E. The use of loan proceeds is supervised, IBRD makes arrangements to ensure that funds loaned

Are used only for authorized purposes and, where relevant, with due attention to considerations of

Cost-effectiveness. This policy is enforced primarily by requiring borrowers (a) to submit documentation

establishing, to IBRD's satisfaction, that the expenditures financed with the proceeds of loans

Are made in conformity with the applicable lending agreements and (b) to maximize competition in

The procurements of goods and services by using, wherever possible, international competitive bidding