India - Bombay Water Supply And Sewerage : Credit 0390 - Maharashtra Agreement - Conformed

 CONFORMED COPY CREDIT NUMBER 390 IN Maharashtra Agreement (Bombay Water Supply and Sewerage Project) BETWEEN THE GOVERNOR OF THE STATE OF MAHARASHTRA AND INTERNATIONAL DEVELOPMENT ASSOCIATON DATED JUNE 8, 1973 I CONFORMED COPY CREDIT NUMBER 390 IN Maharashtra Agreement (Bombay Water Supply and Sewerage Project) BETWEEN THE GOVERNOR OF THE STATE OF MAHARASHTRA AND INTERNATIONAL DEVELOPMENT ASSOCIATON DATED JUNE 8, 1973 I MAHARASHTRA AGREEMENT AGREEMENT, dated June 8, 1973, between THE STATE OF MADHYA PRADESH acting by its Governor (hereinafter called Madhya Pradesh) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS by a development credit agreement of even date herewith (hereinafter referred to as the Development Credit Agreement) between INDIA, acting by its President, (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to fifty-five million United States dollars ($55,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition inter alia that Maharashtra agrees to undertake such obligations toward the Association as are hereinafter set forth; WHEREAS by an agreement of even date between the Association and the Municipal Corporation of Greater Bombay (hereinafter called BMC), BMC has agreed to undertake certain obligations in respect of the carrying out of the Project; and WHEREAS Maharashtra, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.C 1. Whenever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined, ave the respective meanings therein set forth. ARTICLE II Particular Covenants Section 2.01. (a) Maharashtra and the Association shall cooperate fully to assure that the purposes of the Credit will be accomplished. To that end,  4 Maharashtra and the Association shall from time to time, at the request of either party, exchange views through their representatives with regard to the performance of their respective obligations under the Maharashtra Agreement, the performance by BMC of its obligations under the Project Agreement, the administration, operations, resources and expenditures of WSSD and other matters relating to the purposes of the Credit. (b) Maharashtra shall take all action which shall be necessary on its part to enable BMC to perform its obligations under the Project Agreement and the Subsidiary Loan Arrangements, and shall not take or permit any of its agencies to take any action which would prevent or interfere with the performance of any such obligations of BMC. Section 2.02. Maharashtra shall (a) consult with the Borrower and the Association on the establishment of an appropriate authority responsible for control and development of the water resources of the Bombay Region and (b) except as the Borrower, Maharashtra and the Association shall otherwise agree, take necessary measures to establish such authority by April 1, 1975. Section 2.03. Maharashtra shall relend the proceeds of the Credit made available by the Borrower, to BMC under appropriate arrangements to be entered into between Maharashtra and BMC. Except as the Association shall otherwise agree, such arrangements shall include the following terms: (i) proceeds to be made available for a term of 25 years from the date of the first advance by Maharashtra to BMC, including a grace period of four years; (ii) interest to be charged at the rate of 6.25% per annum, payable semi-annually or annually, on amounts withdrawn and outstanding; and (iii) proceeds to be made available promptly as required to enable BMC to meet expenditures required for the Project. Section 2.04. Maharashtra shall cause an audit to be made of the accounts of WSSD, by independent and competent auditors, in accordance with sound accounting principles consistently applied, if the audit of the accounts of WSSD by the Municipal Chief Auditor of BMC is found unsatisfactory by Maharashtra or the Association. Section 2.05. Maharashtra shall make available to BMC, sufficient loan funds to enable BMC to complete the Project and, except as the Association shall I 5 otherwise agree, such loan funds shall be made available to BMC for a period of from 20 to 25 years from the date the funds are made available. Section 2.06. Maharashtra shall not amend, suspend, or abrogate the Act in such a way as to materially and adversely affect the ability of BMC to carry out the obligations set forth in the Project Agreement or under the Subsidiary Loan Arrangements. ARTICLE III Effective Date; Termination Cancellation and Suspension Section 3.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. If the Development Credit Agreement shall terminate pursuant to Section 10.04 of the General Conditions, the Association shall promptly notify Maharashtra of this event and, upon the giving of such notice, this Agreement and all obligations of the parties hereunder shall forthwith terminate. Section 3.02. This agreement shall terminate and all obligations of Maharashtra and the Association hereunder shall cease and determine on the date on which the Project Agreement terminates in accordance with its terms. Section 3.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any partial cancellation or suspension under the Development Credit Agreement. ARTICLE IV Miscellaneous Provisions Section 4.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are:  6 For Maharashtra: The Chief Secretary to the Government of Maharashtra Sachivalaya, Bombay India Cable address: RESTIS Bombay For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. Section 4.02. Any action required or permitted to be taken, and any documents required or permitted to be executed, under this Agreement on behalf of Maharashtra, may be taken or executed by a Secretary to the Government of Maharashtra or such other person or persons as Maharashtra shall designate in writing. Section 4.03. Maharashtra shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature(s) of the person or persons who will, on behalf of Maharashtra, take any action or execute any documents required or permitted to be taken or executed by Maharashtra pursuant to any of the provisions of this Agreement. Section 4.04. This Agreement may be executed in several counterparts, each of which shall be an original and all collectively but one instrument. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed  7 in their respective names and delivered in the District of Columbia, United States of America, as of the day and year first above written. FOR AND ON BEHALF OF THE GOVERNOR OF THE STATE OF MAHARASHTRA By /s/ E. Gonsalves Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ I.P.M. Cargill Regional Vice President Asia