Niger - Transport Sector Project : Credit 1706 - Japanese Grant Agreement - Conformed

JAPANESE GRANT RELATED TO CREDIT NUMBER 1706 NIR Japanese Grant Agreement (Transport Sector Project) between REPBLIC OF NIGER and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the Japanese Funds within the framework of the SPECIAL FACILITY for SUB-SAHARAN AFRICA Dated N'.& S , 1987 JAPANESE GRANT RELATED TO CREDIT NUMBER 1706 NIR JAPANESE GRANT AGREEMENT AGREEMENT, dated CL 5 , 1987, between REPUBLIC OF NIGER (the Beneficiary) and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Japanese funds within the framework of the Special Facility for Sub-Saharan Africa (the Administrator). WHEREAS (A) the Executive Directors of the International Development Association (IDA) have established by their Resolu- tion No. IDA 85-1 of May 21, 1985, (the Resolution), a Special Facility for Sub-Saharan Africa (the African Facility) consti- tuted by the funds contributed by the International Bank for Reconstruction and Development (the Bank) and other donors and administered by IDA, acting as Administrator of the African Facility, for the purpose of, and in accordance with, the pro- visions of the Resolution; (B) pursuant to Section F of the Resolution, the Government of Japan (Japan) has agreed to provide Japanese funds in the form of a contribution (the SJF Contribution) in support of programs of structural change, policy reform and institutional improvement in countries which are eligible for financing from the African Facility's resources, and, by the agreement described in the letter sent by Japan and confirmed by IDA on August 19, 1986, concerning the SJF Contribution (the Letter), Japan and IDA have agreed that IDA will act as Administrator of the SJF Contribution in accordance with the provisions of the Letter; (C) the Administrator has received a letter dated Decem- ber 30, 1985 from the Beneficiary describing a program of actions, objectives and policies designed to achieve structural adjustment of the Beneficiary's economy, declaring, inter alia, the Beneficiary's commitment to the execution of the transport sector adjustment program described in Annex 3 thereto; (D) the Beneficiary has requested Japanese funds from the Administrator for the financing of civil works for road construc- tion and maintenance, equipment and workshop rehabilitation, all of which is part of the project (the Project) described in Sche- dule 2 to the African Facility Credit Agreement (as hereinafter defined), and the Administrator has determined that the provision of such funds in an amount of eight hundred million Japanese Yen (Yen 800,000,000) (the Japanese Grant) would be in accordance with the provisions of the Resolution and the Letter; -2- (E) the Beneficiary also intends to obtain from the Japan Overseas Economic Cooperation Fund (OECF) a loan (the OECF Loan) in an amount up to three thousand two hundred million Japanese Yen (Yen 3,200,000,000), to assist in the financing of the Project; (F) by an agreement dated June 30, 1986 between the Bene- ficiary and IDA (the Development Credit Agreement), IDA is agreeing to provide additional assistance towards the financing of the Project in an amount of thirteen million Special Drawing Rights (SDR 13,000,000) (the IDA Credit); (G) the Beneficiary has requested IDA, acting as Adminis- trator of the African Facility, to provide additional assistance in support of the Project and by an agreement dated June 30, 1986, between the Beneficiary and IDA in its capacity as said Administrator (the African Facility Credit Agreement), IDA in such capacity is agreeing to provide a financial contribution in an aggregate principal amount equivalent to thirteen million Special Drawing Rights (SDR 13,000,000) (the African Facility Credit); (H) the Beneficiary intends to contract from the Caisse Centrale de Coop6ration Economique (hereinafter called CCCE) a loan in an amount of three billion CFAF (CFAF 3,000,000,000) (the CCCE Loan) to assist in financing part e~ the Project on terms and conditions set forth in an agreement (the CCCE Loan Agreement) to be entered into between the Beneficiary and CCCE; (I) the Beneficiary intends to contract from the African Development Fund (AfDF) a loan (the AfDF Loan) in an amount of ten million AfDF currency units (AfDF-CU 10,000,000) to assist in financing part of the Project on the terms and conditions set forth in an agreement (the AfDF Loan Agreement) to be entered into between the Beneficiary and AfDF; (J) the Beneficiary intends to contract from the European Development Fund (EDF) a grant (the EDF Grant) in an amount of twenty million ECU (ECU 20,000,000) to assist in financing part of the Project on the terms and conditions set forth in an agree- ment (the EDF Grant Agreement) to be entered into between the Beneficiary and EDF; and WHEREAS the Administrator has agreed on the basis inter alia of the foregoing, to extend the Japanese Grant to the -3- Beneficiary upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Develop- ment Credit Agreements" of IbA, dated January 1, 1985, with the modifications set forth below (the General Conditions) constitute an integral part of this Agreement: (a) the term "Association", when used in the General Condi- tions, means the Administrator, except in the phrase "member of the Association" in Sections 2.01 (5) and 6.02 (e) thereof; (b) the terms "Development Credit Agreement", "Credit" and "Credit Account", when used in the General Conditions, are amended to read "Japanese Grant Agreement", "Japanese Grant" and "Japanese Grant Account", respectively; (c) Sections 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.06, 6.05, 7.01, 8.01 (a), 12.02 and 12.05 and the second sentence of Section 5.01 are deleted; (d) in Section 6.02, the term "Association" shall also include IDA acting in its own capacity; (e) the term "Borrower", wherever used in the General Conditions, means the Beneficiary; and (f) the term "Special Account" means the account referred to in Section 2.02 (c) of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions, in the Preamble to this Agreement and in the African Facility Credit Agreement have the respective meanings therein set forth. ARTICLE II The Japanese Grant Section 2.01. The Administrator agrees to extend to the Beneficiary, on the terms and conditions set forth or referred to -4- in this Agreement, an amount in various currencies equivalent to eight hundred million Japanese Yen (Yen 800,000,000). Section 2.02. (a) The amount of the Japanese Grant may be witftdrawn from the Japanese Grant Account in accordance with the provisions of Schedule 1 to this Agreement, for expenditures made (or, if the Administrator 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 Japanese Grant. (b) Withdrawals shall be made only on account of expen- ditures for goods produced in the territories of: (i) any Part II member of IDA; and (ii) any country designated by IDA, acting as Administrator of the African Facility, as meeting the provisions set forth in paragraphs 4 (f) (ii) and (iii) of the Resolution. (c) The Beneficiary shall for the purpose of the Project, open and maintain in CFAF a special account in a commercial bank on terms and conditions satisfactory to the Administrator. Depo- sits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 2 to this Agree- ment. (d) Notwithstanding the provisions of subparagraph (a) above, the Administrator shall, at the request of Japan, suspend the Beneficiary's right to make withdrawals under this Agreement if an event shall have occurred which would have entitled the Administrator to suspend the Beneficiary's right to make with- drawals under the African Facility Credit Agreement (whether or not the full amount of the African Facility Credit has then been withdrawn), provided however, that, notwithstanding any such request from Japan, the Administrator may in its discretion per- mit withdrawals under this Agreement in respect of expenditures for which the Administrator has entered into special commitments pursuant to Section 5.02 of the General Conditions. Section 2.03. The Closing Date shall be June 30, 1993, or such later date as the Administrator shall establish. The Admin- istrator shall promptly notify the Beneficiary of such later date. Section 2.04. Except as the Administrator shall otherwise agree, procurement of goods and works to be financed out of the proceeds of the Japanese Grant shall be governed by the pro- visions of Schedule 3 to the African Facility Credit Agreement. -5- ARTICLE III Execution of the Project Section 3.01. Except as otherwise expressly provided herein, Articles III and IV and Section 5.01 of the African Facility Credit Agreement are hereby incorporated into this Agreement with the same force and effect as if they were fully set forth herein, it being understood that all references in said Articles and Section to "the Administrator" shall be deemed to be references to the Administrator of the Japanese Grant rnder this Agreement, all references to the "African Facility Credit" shall be deemed to be references to the Japanese Grant, and all references to the "Borrower" shall be deemed to be references to the Beneficiary. ARTICLE IV Effective Date; Termination Section 4.01. This Agreement shall become effective upon signature by both parties. Section 4.02. This Agreement and all obligations of the Beneficiary and of the Administrator thereunder shall terminate on the date 5 years after the date of this Agreement or on the date of the disbursement of the balance of the proceeds of the Japanese Grant, whichever shall be the earlier. ARTICLE V Representatives of the Beneficiary; Addresses Se on 5.01. The Minister of the Beneficiary responsible for Plating is designated as representative of the Beneficiary for the purposes of Section 11.03 of the General Conditions. Section 5.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Beneficiary: Ministry of Planning P.O. Box 862 Niamey Republic of Niger Telex: 5463 NI -6- For the Administrator: Administrator of the Japanese Funds (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) -7- IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, 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 NIGER By /Sj J'O.er& 2)ida I Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the Japanese funds within the framework of the SPECIAL FACILITY FOR SUB-SAHARAN AFRICA By (7 s1; V Regional Vice President Western Africa -8- SCHEDULE 1 Withdrawal of the Proceeds of the Japanese Grant 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Japanese Grant, the alloca- tion of the amounts of the Japanese Grant to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Japanese Grant Allocated % of (Expressed in Expenditures Category Yen Equivalent) to be Financed (1) Civil works 282,000,000 95% for road con- struction and maintenance (Part B of the Project) (2) Equipment and 260,000,000 95% workshop reha- bilitation (Part C of the Project) (3) Fuel, lubricants 114,000,000 95% and supplies (4) Unallocated 144,000,000 TOTAL 800,000,000 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for: (a) expenditures prior to the date of this Agreement; and (b) expenditures under Category 1 after September 30 of each year the Project is executed starting September 30, 1987, unless the Administrator shall be satisfied for the upcoming Fiscal Year with the documents referred to under Section 3.04 (a) (ii) of the African Facility Credit Agreement. -9- SCHEDULE 2 Special Account 1. For the purposes of this Schedule: (a) the term "eligible Categories" means Categories (1) through (3) set forth in the table in paragraph 1 of Schedule 1 to this Agreement; (b) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods and services required for the Project and to be financed out of the prdceeds of the Japanese Grant allocated from time to time to the eligible Cate- gories in accordance with the provisions of Schedule 1 to this Agreement; and (c) the term "Authorized Allocation" means an amount equi- valent to CFAF 400,000,000 to be withdrawn from the Japanese Grant and deposited in the Special Account pursuant to paragraph 3 (a) of this Schedule. 2. Except as the Administrator shall otherwise agree, payments out of the Special Account shall be made exclusively for eligible expenditures in accordance with the provisions of this Schedule. 3. After the Administrator has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals of the Authorized Allocation and subsequent withdrawals to reple- nish the Special Account may be made as follows: (a) On the basis of a request or requests by the Bene- ficiary for a deposit or deposits which add up to the aggregate amount of the Authorized Allocation, the Administrator shall, on behalf of the Beneficiary, withdraw from the Japanese Grant Account and deposit in the Special Account such amount or amounts as the Beneficiary shall have requested. (b) The Beneficiary shall furnish to the Administrator requests for replenishment of the Special Account at such inter- vals as the Administrator shall specify. On the basis of such requests, the Administrator shall withdraw from the Japanese Grant Account and deposit into the Special Ac^-ount such amounts as shall be required to replenish the Special Account with amounts not exceeding the amount of payments made out of the - 10 - Special Account for eligible expenditures. All such deposits shall be withdrawn by the Administrator from the Japanese Grant Account under the respective eligible Categories, and in the respective equivalent amounts, as shall have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph 4 of this Schedule. 4. For each payment made by the Beneficiary out of the Special Account for which the Beneficiary requests replenishment pursuant to paragraph 3 (b) of this Schedule, the Beneficiary shall fur- nish to the Administrator, prior to or at the time of such re- quest, such documents and other evidence as the Administrator shall reasonably request, showing that such payment was made for eligible expenditures. 5. (a) Notwithstanding the provisions of paragraph 3 of this Schedule, no further deposit into the Special Account shall be made by the Administrator when either of the following situations first arises: (i) the Administrator shall have determined that all further withdrawals should be made by the Bene- ficiary directly from the Japanese Grant Account in accordance with the provisions of Article V of the General Conditions and paragraph (a) of Section 2.02 of this Agreement; or (ii) the total unwithdrawn amount of the Japanese Grant allocated to the eligible Categories, minus the amount of any outstanding special commitment entered into by the Administrator pursuant to Sec- tion 5.02 of the General Conditions with respect to the Project, shall be equal to the equivalent of twice the amount of the Authorized Allocation. (b) Thereafter, withdrawal from the Japanese Grant Account of the remalning unwithdrawn amount of the Japanese Grant allo- cated to the eligible Categories shall follow such procedures as the Administrator shall specify by notice to the Beneficiary, Such further withdrawals shall be made only after and to the extent that the Administrator shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice will be utilized in making payments for eligible expenditures. - 11 - 6. (a) If the Administrator shall have determined at any time that any payment out of the Special Account: (i) was made for any expenditure nr in any amount not eligible pursuant to paragraph 2 of this Schedule, or (ii) was not justified by the evidence fur- nished pursuant to paragraph 4 of this Schedule, the Beneficiary shall, promptly upon notice from the Administrator, deposit into the Special Account (or, if the Administrator shall so request, refund to the Administrator) an amount equal to the amount of such payment or the portion thereof not so eligible or justi- fied. No further deposit by the Administrator into the Special Account shall be made until the Beneficiary has made such deposit or refund. (b) If the Administrator shall have determined at any time that any amount outstanding in the Special Account will not be required to cover further payments for eligible expenditures, the Beneficiary shall, promptly upon notice from the Administrator, refund to the Administrator such outstanding amount for crediting to the Japanese Grant Account.