India - Indira Sarovar Hydroelectric Project : Credit 1613 - Credit Agreement - Conformed

0 v 'CREDIT NUMBER 1613 IN Development Credit Agreement (Indira Sarovar Hydroelectric Project) between INDIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated , 1985 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1985, between INDIA, acting by its President (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) by Resolution No. IDA 82-6, adopted on October 26, 1982, of the Executive Directors of the Association, there has been established by the Association a Special Fund constituted by the funds which shall be contributed by certain members of the Association and administered by the Association, acting as Administrator of such Special Fund, for the purpose of, and in accordance with, the provisions of said Resolution; (C) the Borrower has requested of the Administrator assis- tance from the resources of the Special Fund in the financing of the Project, and the Administrator has determined that such assis.zance would be in accordance with the provisions of the Resolution referred to above; (D) by the Special Fund Credit Agreement between the Bor- rower and the Association acting as Administrator of the Special Fund dated March 1, 1985, the Administrator has agreed to make -vailable to the Borrower a Special Fund Credit (hereinafter called the Special Fund Credit) in an aggregate principal amount equivalent to one hundred twenty-two million Special Drawing Rights (SDR 122,000,000) to assist in the financing of such Pro- ject, on the terms and conditions therein set forth; (E) the Borrower has also requested International Bank for Reconstruction and Development (hereinafter called the Bank) to provide additional assistance towards the financing of the Project and by an agreement dated March 1, 1985 between the Borrower and the Bank (hereinafter called the Loan Agreement) the Bank has agreed to provide such assistance in an aggregate principal amount equivalent to one hundred fifty-seven million four hundred thousand dollars ($157,400,000) (hereinafter called the Bank Loan); (F) the Project will be carried out by the State of Madhya Pradesh through the Madhya Pradesh State Electricity Board with -2- the Borrower's assistance and, as part of such assistance, the Borrower will make available to the State of Madhya Pradesh the proceeds of the Credit as hereinafter provided; and WHEREAS the Association has agreed on the basis, inter alia, of the foregoing, to extend the Development Credit to the Borrower upon the terms and conditions hereinafter set forth and in the Project Agreement dated March 1, 1985 between the Administrator, the Bank and the State of Madhya Pradesh; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the international Development Association, dated June 30, 1980, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being herein- after called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, in the Preamble to this Agreement, and in the Special Fund Credit Agreement and the General Conditions made applicable to the Special Fund Credit Agreement have the respec- tive meanings therein set forth. 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 twelve million four hundred thousand Special Drawing Rights (SDR 12,400,000). 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 -3- 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, procurement of the goods and civil works required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of the Schedule to the Pro- ject Agreement. Section 2.04. The Closing Date shall be June 30, 1992 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 days 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. 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 March 15 and September 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each March 15 and September 15 commencing September 15, 1994, and ending March 15, 2034, each installment to and including the installment -4- payable on March 15, 2004, 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 rent (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 General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, without any limitation or restric- tion upon any of its other obligations under the Development Credit Agreement, shall cause Madhya Pradesh to perform in accor- dance with the provisions of the Project Agreement all the obli- gations therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable Madhya Pradesh to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make the proceeds of the Credit available to Madhya Pradesh in accordance with -the Borrower's standard arrangements for developmental assistance to the States of India. ARTICLE IV Remedies of the Association Section 4.01. For the purposes of Section 6.02 of the General Conditions the following additional event is specified pursuant to paragraph (h) thereof, namely, that the right of the Borrower to make withdrawals from the Special Fund Credit shall have been suspended in whole or in part. Section 4.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (d) thereof, namely, that the event speci- fied in paragraph (a) of Section 4.01 of this Agreement shall occur and shall continue for a period of 60 days after notice -5- thereof shall have been given by the Association to the Borrower and Madhya Pradesh. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) all conditions precedent to the effectiveness of the Special Fund Credit Agreement have been fulfilled; and (b) all conditions precedent to the effectiveness of the Loan Agreement have been fulfilled. Section 5.02. The date EC4-'LA c d/7*, is hereby specified for the purposes of Section 12.04 of the General Condi- tions. Section 5.03. The provisions of Section 4.02 of this Agree- ment shall cease and determine on the date on which the Develop- ment Credit Agreement shall terminate or on a date thirty years after the date of this Agreement, whichever shall be the earlier. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Secretary, Additional Secretary, Joint Secretary, Director, Deputy Secretary or Under Secretary of the Department of Economic Affairs 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 6.02. 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 * A date approximately 90 days after the date of signature of this Agreement will be inserted here. -6- Cable address: ECOFAIRS New Delhi For the Associa..ion: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. 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 Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President South Asia -7- 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 in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works for 12,400,000 40% tailrace channel TOTAL 12,400,000 2. The disbursement percentage has been calculated in com- pliance with the policy of the Association that the proceeds of the Credit shall not 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; on this basis, -.f the amount of any such taxes levied on or in respect of items in any Category decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such Category as required to be consistent with the aforemen- tioned policy of the Association. 3. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of payments made for expen- ditures prior to the date of this Agreement. 4. 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 expenditure 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 -8- Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Asso- ciation' s reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financ- ing out of the proceeds of the Credit. -9- SCHEDULE 2 Description of the Project The objectives of the Project are to provide additional power generation capacity in Madhya Pradesh and thereby in the Western Region of India, and to strengthen the Board's data pro- cessing facilities. The Project consists of the following: Part A: The construction of a power house housing four 125 MW turbo generating sets and associated electrical and mechanical equipment. Part B: The construction of a combined gravity and rock-fill dam, about 90 m high and about 1,650 m long, in the Indravati River. Part C: The construction of a water conductor system composed of a head race turnel of about 12 m in diameter and 3,000 m long, a surge tank, and four pressure shafts about 400 m long and 6 m diameter. Part D: The construction of a tailrace open channel about 5 km long. Part E: The acquisition and erection of step-up transformers (11/220 kV), switchyard equipment, and about 5 km of 220 kV double circuit transmission line to connect the Project, to the nearby existing Barsoor substation. Part F: The carrying out of a plant rehabilitation program in Madhya Pradesh through repairs to and upgrading of identified thermal units. Part G: The construction of roads, bridge, residential quarters and buildings, and provision of site services and facilities. Part H: The upgrading, expansion and modernization of the Madhya Pradesh State Electricity Board's data process- ing facilities, including development of software and purchase of necessary computer equipment. The Project is expected to be completed by September 30, 1991. 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 day of 198 FOR SECRETARY