Liberia - Fourth Highway Project : Credit 1311 - Credit Agreement - Conformed

E CIGFICIAL CREDIT NUMBER 1311 LBR Development Credit Agreement (FourTh Highway Project) between REPUBLIC OF LIBERIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated , 1981 CREDIT NUMBER 1311 LBR DEVELOPMENT CREDIT AGREEMENT () 3 AGREEMENT, dated , 198, be- tween REPUBLIC OF LIBE A (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) by a loan agreement (hereinafter called the Loan Agreement) dated June 2, 1978, between the Borrower and the International Bank for Reconstruction and Development (herein- after called the Bank), the Bank has agreed to make a loan to the Borrower to assist in the financing of the project described in Schedule 2 to the said Loan Agreement (hereinafter called the Project); (B) the Borrower has requested the Association to provide additional assistance towards the financing of part of the Proj- ect, by extending the Credit as hereinafter provided; and WHEREAS the Association has agreed, on the basis inter ali4 of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereitafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement ccept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated Jun 30, 1980, with the same force and effect as if they were fully ;et forth herein (said General Conditions Applicable to Development Credit Agree- ments of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the Gen- eral Conditions, the Loan Agreement and in the preamble to this Agreement have the respective meanings therein set forth. -2- ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Bor- rower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various curren- cies equivalent to one million seven hundred thousand Special Drawing Rights (SDR 1,700,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if.the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, contracts for civil works eligible for financing under the Credit shall be awarded on the basis of diroct negotiations, on terms and conditions satisfactory to the Bank. Section 2.04. The Closing Date shall be December 31, 1983 or such later date as the Association shall establish. The Associa- tion shall promptly notify the Borrower of such later date. Section 2.05. (a) The Borrower shall pay to the Association a commitment charge at the rate of one-half of one per cent (1/2 of 1%) per annum on the principal amount of the Credit not with- drawn from time to time. The commitment charge shall accrue from a date sixty da7s after the date of the Development Credit Agree- ment to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without re- strictions of any kind imposed by, or in the territory of, the Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. -3- Section 2.06. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.07. Commitment charges and service charges shall be payable semiannually on April 1 and October 1 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each April 1 and October 1 commencing April 1, 1993, and ending October 1, 2002, each installment to and including the installment payable on October 1, 2032, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.09. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the Gen- eral Conditions. ARTICLE III Other Covenants Section 3.01. The Borrower hereby undertakes towards the Association the obligations undertaken towards the Bank pursuap' to Article III and Sections 4.02, 4.03, 4.04 and 4.05 of the Loan Agreement, with the same force and effect as if such provisions were fully set forth herein, provided, however, that all references to the Bank and the Loan in such Article and Sections shall be deemed to be references to the Association and the Credit, respectively. Section 3.02. All action taken by, and any notice given to, the Bank pursuant to the Loan Agreement shall, unless the context shall require otherwise, be deemed to be taken or given also by or to the Association. ARTICLE IV Remedies of the Association Section 4.01. For the purposes of Section 6.02 of the Gen- eral Conditions, the following additional events are specified pursuant to paragraph (k) thereof: -4- (a) The Borrower shall have failed to perform any of its obligations under the Loan Agreement. (b) The right of the Borrower to withdraw the proceeds of the Kuwait Fund Loan shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the Kuwait Fund Loan Agreemernt. (c) The Kuwait Fund Loan shall have become due and payable prior to the agreed maturity thereof. (d) Paragraphs (b) and (c) of this Section shall not apply if: (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Bor- rower under this Agreement. Section 4.02. For the purposes of Section 7.01 of the Gen- eral Conditions, the following additional events are specified pursuant to paragraph (h) thereof: (a) the events specified in paragraphs (a) and (b) of Sec- tion 4.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Association to the Borrower; and (b) the event specified in paragraph (c) of Section 4.01 of this Agreement shall occur. ARTICLE V Termination Section 5.01. The date)$, is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Minister of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. -5- Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Minister of Finance Ministry of Finance Monrovia Liberia Cable address: Telex: MINFIN 4221 Monrovia For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 .(WUI) 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. REPUBLIC OF LIBERIA By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Western Africa -6- SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed iA each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works for 1,070,000 95% reconstruction of Nyaforla Bridge included in Part A of the Project (2) Consultant 240,000 95% services for supervision of the Nyaforla Bridge con- struction (3) Consultant 340,000 95% services for detailed engi- neering and preparation of procurement documents for the Kakata-Totota section of the road described in Part A of the Project (4) Unallocated 50,000 TOTAL 1,700,000 -7- 2. The disbursement percentages have been calculated in compli- ance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to suth item as required to be consistent with the aforementioned policy of the Association. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement. 4. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds o the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 5. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expend- itures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Bor- rower, cancel such amount of the Credit as, in the Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the <34A. day of 198J1 FOR SECRETARY