DEVELOPMENT IMPORTS LOAN (PROJECT PAPER)

of commodities needed for SARG"s development programs. The loan will be implemented by concerned SARG agencies. Items eligible for financing will be those included in A.I.D."s eligiblity list in the following categories: road building, heavy construction, transport and agricultural equipment; industrial machinery required to process agricultural products; and medical and educational equipment and supplies. A broad range of other industrial machinery needed for Syria"s economy will also be eligible. Specific commodities targeted for financing include heavy-duty off-highway dump trucks; equipment and training aids for Damascus University; automatic bakery lines; equipment and supplies for a marine biology laboratory; and air pollution monitoring equipment for one stationary and two mobile units. Procurement will be restricted to U.S. source and origin as defined in A.I.D. Regulation One. Since loan proceeds are expected to be utilized mostly by the public sector, formal competitive bidding procedures will also apply, in accordance with the same Regulation. A limitation will be placed upon the amount of commodities or related services that may be used for a single physical facility or related facilities without prior A.I.D. approval. Since the generation of significant amounts of local currency is not anticipated, a local currency control mechanism will not be included. USAID, however, while not attempting to exercise commingling control over commodities imported by SARG public sector trading companies for commercial resale or other transfer to Syrian public or private entities, will exercise control to assure that bloc projects or companies are not designated by SARG as the importer of loan commodities.