Artikel IV

Section 1. Basic Authority. a) The Bank represents that it has authority under Article VII, Section 1(v) of the Agreement Establishing the Inter-American Development Bank (the ‘‘Charter’’) to carry out the provisions of this MIF II Administration Agreement and that the activities undertaken pursuant hereto will help fulfill the purposes of the Bank.
b) Except as provided otherwise in this MIF II Administration Agreement, the Bank shall have the authority to perform all acts and enter into all contracts necessary to carry out its functions hereunder.
c) The Bank shall invest monies of the Fund, not needed in its operations, in the same type of securities in which it invests its own funds under its investment authority.
Section 2. Standard of Care. The Bank shall exercise the same care in the discharge of its functions under this MIF II Administration Agreement as it exercises with respect to the administration and management of its own affairs.
Section 3. Expenses of the Bank. a) The Bank shall be fully reimbursed from the Fund for both direct and indirect costs for its activities related to the Fund and those of the IIC, including remuneration of the staff of the Bank for the time actually dedicated to the administration of the Fund, travel, per diem, communication expenses and other similar, directly-identifiable expenses, calculated and recorded separately as expenses of administering the Fund and carrying out its operations.
b) The procedure for determining and calculating the expenses to be reimbursed to the Bank, and the criteria governing reimbursement of the costs described in paragraph (a) agreed by the Bank and the Donors Committee pursuant to the MIF I Administration Agreement shall continue in force hereafter and may be reviewed from time to time at the proposal of the Bank or the Donors Committee, and the application of any changes resulting from such review shall require agreement of the Bank and the Donors Committee.
Section 4. Cooperation with National and International Organizations. In the administration of the Fund, the Bank may consult and cooperate with national and international organizations, both public and private, operating in the fields of social and economic development, when that would help achieve the purpose of the Fund or maximize efficiency in the use of the resources of the Fund.
Section 5. Project Evaluation. In addition to evaluations requested by the Donors Committee, the Bank shall evaluate the operations it has undertaken under this MIF II Administration Agreement and report those evaluations to the Donors Committee as provided in Article IV, Section 5 of the MIF II Agreement.