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The following percentages are specified as the premiums payable on repayment in advance of maturity of any part of the principal amount of the Loan pursuant to Section 2.05 (b) of the Loan Regulations or on the redemption of any Bond prior to its maturity pursuant to Section 6.16 of the Loan Regulations:

SCHEDULE 2

1. The project consists of the construction of the Lünersee hydroelectric development, which will include:

(a) The construction of a concrete dam, with the necessary intake and discharge tunnels across the lower end of Lünersee (Liner Lake) to raise the level of the lake about 25 meters thereby increasing its storage capacity;

(b) The diversion of the run-off of the Brandner Glacier through a tunnel about 1.5 kilometers long so that it will flow into Lünersee;

(c) The construction of about 9.7 kilometers of tunnels, syphons and penstocks with diameters varying from 2.05 meters to 2.95 meters to convey the water from Lünersee to a power station to be constructed adjacent to the existing Latschau Reservoir;

(d) The construction of a surge chamber at an elevation of about 1,986 meters above sea level;

(e) The installation in the power station of 5 generating-pumping units with each unit consisting of a vertical four nozzle Pelton turbine to operate on a maximum head of 970 meters at 750 r.p.m.; a 3 phase, 50 cycle 45,000 kw generator (at a nominal power factor of .80) designed to operate as a motor to drive a pump vertically connected with the drive shaft of the motor-generator; a 5 stage pump with a nominal capacity of about 3.7 cubic meters per second against a static head of about 970 meters and a coupling for connecting and disconnecting the driving shaft of the pump with the shaft of the motor-generator. Each generating-pumping unit will be complete with all necessary accessories;

(f) The installation in the power station of 3 pumps with motors for pumping water from the Latschau Reservoir to an intake canal above the powerhouse;

(g) The installation of five 10/220 kv transformers each of 56,000 kva capacity directly connected to the 5 generators and appropriate 220 kv open air switchgear for each unit;

(h) The construction of a double circuit overhead transmission line on steel towers from the power station to an existing sub-station at Burs and from Burs to the German No. 531