India - Gujarat Fisheries Project : Loan 1394 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1394 T-IN LOAN AGREEMENT (Gujarat Fisheries Project) between INDIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated April 22, 1977 LOAN AGREEMENT AGREEMENT, dated April 22, 1977, between INDIA, acting by its President (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS (A) the Borrower has requested the Bank to assist in the financing of the Project described in Schedule 2 to the Development Credit Agreement by making this Loan as (hereinafter called the Loan) as hereinafter provided; (B) the Bank has determined that the Borrower is eligible to receive this Loan as an intermediate term loan, as that term is defined in Resolution No. 75-111 of the Executive Directors of the Bank establishing an Interest Subsidy Fund for the Third Window (hereinafter called the Fund) and upon the terms and conditions as set forth in such Resolution; (C) the Administrator of the Fund (hereinafter called the Administrator), subject to the terms and conditions set forth in the Resolution referred to in (B) above, is obligated to pay to the Bank semi-annually from the resources of the Fund an amount equal to four per cent (4%) per annum of the outstanding amounts of principal on intermediate term loans, of which this Loan is one; -2- (D) the Borrower has also requested the Association to provide additional financial assistance towards the financing of the Project and by an agreement of even date herewith between the Borrower and the Association (hereinafter called the Development Credit Agreement), the Association is agreeing to provide such assistance in an aggregate principal amount equivalent to four million dollars ($4,000,000); (E) the Borrower and the Bank intend, to the extent practicable, that the proceeds of the Credit provided for in the Development Credit Agreement be disbursed on account of expenditures on the Project before disbursements of the proceeds of the Loan provided for in this Agreement are made; and WHEREAS the Bank has agreed, on the basis inter alia of the foregoing, to make the Loan to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: -3- ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein, subject, however, to the following modifications thereof (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank, as so modified, being hereinafter called the General Conditions): Section 2.01 (11) is deleted and the following is substituted therefor: "11. The term 'Project' means the Project for which the Loan is granted, as described in the Development Credit Agreement between the Borrower and the Association of even date with the Loan Agreement and as the description thereof may be amended from time to time by agreement among the Borrower, the Association and the Bank." Section 1.02. Wherever used in this Agreement, unless the context otherwise r( uires, the several terms defined in the General Conditions, in the Preamble to this Agreement, in the Development Credit Agreement and in the General Conditions applicable thereto have the respective meanings therein set forth -4 - and the term "Development Credit Agreement" means the agreement of even date herewith between the Borrower and the Association for the purpose of the Project, as such agreement may be amended from time to time; and such term includes the General Conditions Applicable to Development Credit Agreement of the Association, dated March 15, 1974, as made applicable to such agreement, all agreements supplemental to the Development Credit Agreement and all schedules to the Development Credit Agreement and to such supplemental agreements. -5- ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to fourteen million dollars ($14,000,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule-1 to the Development Credit Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank, for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 to the Development Credit Agreement and to be financed out of the proceeds of the Loan. Section 2.03. Except as the Bank shall otherwise agree, contracts for the purchase of goods or for civil works to be financed out of the proceeds of the Loan, shall be procured in accordance with the provisions of the Schedule to the Gujarat Project Agreement. Section 2.04. The Closing Date shall be June 30, 1983 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. -6- Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of four and one-half per cent (4-1/2%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time; provided, however, that if the Administrator shall at any time determine that the resources of the Fund shall not be sufficient to pay to the Bank at the next succeeding semi-annual interest payment date of the Loan the amount scheduled to be paid by the Administrator at that interest payment date as specified in paragraph (C) of the Preamble to this Agreement, the Borrower shall, upon notification by the Administrator of such determination and the amount of the resulting shortfall, pay additional interest on such principal amount of the Loan equal to such shortfall. Section 2.07. Interest and other charges shall be payable semi-annually on January 15, and July 15, in each year. Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in the Schedule to this Agreement. -7- ARTICLE III Execution of the Project; Consultation, Information and Inspection Section 3.01. Article III of the Development Credit Agreement is hereby incorporated into this Agreement with the same force and effect as if it was fully set forth herein; provided, however, that: (i) all references to the Association in such Article shall be deemed to be references to the Bank, and (ii) all references to the Credit in such Article shall be deemed to be references to the Loan. Section 3.02. So long as any part of the Loan provided for under this Agreement shall remain outstanding and unpaid, all actions taken, including approvals given, by the Association pursuant to the Development Credit Agreement shall be deemed to be taken or given in the name and on behalf of both the Bank and the Association; and all information and opinions furnished by the Borrower to the Association pursuant to the Development Credit Agreement shall be deemed to be furnished to both the Bank and the Association. -8- ARTICLE IV Other Covenants Section 4.01. (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution of foreign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the allocation, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or permitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or administrative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the principal of, and interest and other -9- charges on, the Loan by an equivalent lien on other public assets satisfactory to the Bank. (b) The foregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower, of any political or administrative subdivision thereof and of any equity owned or controlled by, or operating for the account or benefit of, the Borrower or any such subdivision, including gold and other foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. - 10 - ARTICLE V Remedies of the Bank Section 5.01. For the purposes of Section 6.02 (k) of the General Conditions, the following additional events set out in Section 4.01 of the Development Credit Agreement are specified. Section 5.02. For the purpose of Section 7.01 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof, namely, that the additional events specified in paragraphs (a) and (b) of Section 4.02 of the Development Credit Agreement shall occur. - 11 - ARTICLE VI Effective Date; Termination Section 6.01. The following event is specified as an additional condition to the effectiveness of this Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely, that all conditions to the effectiveness of the Development Credit Agreement have been fulfilled. Section 6.02. The date July 22, is hereby specified for the purposes of Section 12.04 of the General Conditions. - 12 - ARTICLE VII Representatives of the Borrower; Addresses Section 7.01. Any Secretary, Additional Secretary, Joint Secretary, Director or Deputy Secretary to the Government of India in the Ministry of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, India Cable address: ECOFAIRS New Delhi, India For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) - 13 - IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly. authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. INDIA By /s/ J.S. Baijal Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Ernest Stern Regional Vice President South Asia - 14 - SCHEDULE Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars) January 15, 1983 245,000.00 July 15, 1983 250,000.00 January 15, 1984 260,000.00 July 15, 1984 265,000.00 January 15, 1985 270,000.00 July 15, 1985 275,000.00 January 15, 1986 280,000.00 July 15, 1986 290,000.00 January 15, 1987 295,000.00 July 15, 1987 300,000.00 January 15, 1988 310,000.00 July 15, 1988 315,000.00 January 15, 1989 320,000.00 July 15, 1989 330,000.00 January 15, 1990 335,000.00 July 15, 1990 345,000.00 January 15, 1991 350,000.00 July 15, 1991 360,000.00 January 15, 1992 370,000.00 July 15, 1992 375,000.00 January 15, 1993 385,000.00 July 15, 1993 395,000.00 January 15, 1994 400,000.00 July 15, 1994 410,000.00 January 15, 1995 420,000.00 July 15, 1995 430,000.00 January 15, 1996 440,000.00 July 15, 1996 450,000.00 January 15, 1997 460,000.00 July 15, 1997 470,000.00 January 15, 1998 480,000.00 July 15, 1998 490,000.00 January 15, 1999 500,000.00 July 15, 1999 515,000.00 January 15, 2000 525,000.00 July 15, 2000 535,000.00 January 15, 2001 555,000.00 - 15 - Premiums on Prepayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1.05% More than three years but not more than six years before maturity 2.15% More than six years but not more than eleven years before maturity 3.90% More than eleven years but not more than sixteen years before maturity 5.65% More than sixteen years but not more than twenty years before maturity 7.10% More than twenty years but not more than twenty-two years before maturity 7.80% More than twenty-two years before maturity 8.50%