Uganda - Forestry Rehabilitation Project : Credit 1824 - Credit Agreement - 1 - Conformed

OFFiCIAL DOCUMENTSi DANIDA GRANT RELATED TO CREDIT NUMBER 1824 UG DANIDA Grant Agreement (Forestry Rehabilitation Project) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of Grant Funds Provided by the DANISH INTERNATIONAL DEVELOPMENT AGENCY Dated / 1988 DANIDA GRANT RELATED TO CREDIT NUMBER 1824 UG DANIDA GRANT AGREEMENT AGREEMENT, dated / , 1988, between THE REPUBLIC OF UGANDA he Recipient) and the INTERNATIONAL DEVELOPMENT ASSOCIATION, as Administrator (the Administrator) of Grant Funds Provided by the DANISH INTERNATIONAL DEVELOPMENT AGENCY (DANIDA). WHEREAS: (A) the Recipient has requested the assistance of the International Development Association (the Association) and DANIDA in the financing of the Forestry Rehabilitation Project (the Project) described in Schedule 2 to Development Credit Agreement Number 1824-UG, dated July 6, 1987, between the Recipient and the Association (the Development Credit Agreement); (B) the Association has granted a Credit for this purpose on the terms and conditions set forth in the Development Credit Agreement; (C) DANIDA wishes to make available to the Recipient a grant in an amount equivalent to seven million five hundred thousand dollars ($7,500,000) (the DANIDA Grant) to assist the Recipient in carrying out part of the Project on the terms and conditions hereinafter set forth; (D) pursuant to arrangements, dated November 12, 1987, between DANIDA and the Association, DANIDA has requested the Association, and the Association has accepted, to administer the DANIDA Grant in accordance with the provisions of those arrange- ments; and (E) the Recipient acknowledges that the financial assist- ance extended to the Recipient under this DANIDA Grant Agreement shall be considered as part of the bilateral development aid extended by DANIDA to the Recipient; 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 the Association", dated January 1, 1985 (the General Conditions), constitute an integral part of this -2- Agreement subject, however, to the following modifications thereof: (a) the term "Association", wherever used in the General Conditions, means the International Development Association, acting as Administrator of the DANIDA Grant, pursuant to the arrangements between DANIDA and the Association referred to in the Preamble to this Agreement, except in the phrase "member of the Association" in Sections 2.01 (5) and 6.02 (e); (b) the term "Development Credit Agreement", wherever used in the General Conditions, means this Agreement; (c) the term "Credit", wherever used in the General Condi- tions, means the DANIDA Grant extended to the Recipient under this Agreement; (d) the term "Credit Account", wherever used in the General Conditions, shall be amended to read "DANIDA Grant Account"; (e) Section 4.01. Shall be modified to read: "Withdrawals from the DANIDA Grant Account shall be made in dollars; provided, however, that, if the expendi- tures to be financed out of the proceeds of the DANIDA Grant have been paid or are payable in another currency, the Administrator shall, at the request of the Recipient and at the time of a withdrawal from the DANIDA Grant Account, purchase such currency with the proceeds of such with- drawal." (f) in Section 6.02, the term "Association" shall also include the International Development Association acting in its own capacity; (g) Section 9.06 (c) shall be modified to read: "(c) Not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Administrator, the Recipient shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator shall reason- ably request, on the execution of the Project referred to in the Preamble to the DANIDA Grant Agreement, the performance by the Recipient and the Administrator of their respective -3- obligations under the DANIDA Grant Agreement and the accom- plishment of the purposes of the DANIDA Grant"; (h) Sections 3.02, 3.03, 3.04, 3.05, 4.01, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a), 12.02 and 12,05 are deleted; and (i) the term Borrower, whenever used in the General Condi- tions, means the Recipient. 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 Development Credit Agreement have the respective meanings therein set forth, and the term DANIDA Special Account means the Special Account referred to in Section 2.02 (b) of this Agreement. ARTICLE II The Grant Section 2.01. The Administrator agrees to extend to the Recipient, on the terms and conditions set forth or referred to herein, a grant in an amount of seven million five hundred thousand dollars ($7,500,000). Section 2.02. (a) The amount of the DANIDA Grant may be withdrawn from the DANIDA Grant 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 Recipient and the Administrator. (b) The Recipient shall, for the purposes of Part B of the Project, open and maintain in dollars a special account in a commercial bank, through the Bank of Uganda, on terms and condi- tions satisfactory to the Administrator. Deposits into and payments out of the DANIDA Special Account shall be made in accordance with Schedule 2 to this Agreement. Section 2.03. (a) Except as the Administrator shall other- wise agree, contracts for goods and services to be financed out of the proceeds of the DANIDA Grant shall be procured in accor- dance with the provisions of Schedule 3 to the Development Credit Agreement, which is hereby incorporated into this Agree- ment with the same force and effect as if it were fully set forth herein. The references to the Association in said Schedule -4- shall be deemed to be references to the Association, acting as Administrator of the DANIDA Grant. (b) If the Administrator shall have reasonably determined that the procurement of any item is inconsistent with the proce- dures set forth or referred to in paragraph (a) above, no expen- ditures for any such item shall be financed out of the proceeds of the DANIDA Grant, and the Administrator may, by notice to the Recipient, without in any way restricting or limiting any other right, power or remedy of the Administrator under this Agreement, cancel such amount of the DANIDA Grant as, in the Administrator's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the DANIDA Grant. Section 2.04. The Closing Date shall be December 31, 1994, or such later date as the Administrator shall establish. The Admin- istrator shall promptly notify the Recipient of such later date. ARTICLE III Execution of the Project Section 3.01. Except as otherwise expressly provided herein, Articles III and IV of the Development Credit Agreement are hereby incorporated into this Agreement with the same force and effect as if they were fully set forth herein. All references to the Association in said Articles shall be deemed to be references to the Administrator of the DANIDA Grant under this Agreement, all references to the Credit and the Credit Account shall be deemed to be references to the DANIDA Grant and the DANIDA Grant Account, respectively, and all references to the Borrower shall be deemed to be references to the Recipient. ARTICLE IV Representation; Transfer of Rights and Obligations Section 4.01. The Minister of Finance of the Recipient shall be the representative of the Recipient for the purposes of Section 11.03 of the General Conditions. Section 4.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: -5- For the Recipient: Ministry of Finance P.O. Box 8147 Kampala Uganda Cable address: Telex: FINSEC 61170 Kampala For the Administrator: 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) Section 4.03. In accordance with the arrangements referred to in the Preamble to this Agreement, the rights and obligations of the Administrator under this Agreement may be transferred to DANIDA. The Recipient accepts and agrees that, upon notice to that effect by the Administrator to the Recipient, DANIDA shall, ipso facto, from the date specified in such notice, be substi- tuted in all rights and obligations of the Administrator under this Agreement as if DANIDA had been an original party to this Agreement, without any further action or formality required on the part of any party, and, from such date, the Administrator shall cease to have any rights or obligations as a party under this Agreement. ARTICLE V Termination Section 5.01. This Agreement shall continue in effect until the DANIDA Grant has been fully disbursed, and the parties to this Agreement have fulfilled their obligations hereunder. -6- 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. THE REPUBLIC OF UGANDA By// 44 I£7:r4- Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of Grant Funds Provided by the DANISH INTERNATIONAL DEVELOPMENT AGENCY By Acting Regional Vice President Africa -7- SCHEDULE 1 Withdrawal of the Proceeds of the DANIDA Grant The table below sets forth the Categories of items to be financed out of the proceeds of the DANIDA Grant, the allocation of the amounts of the DANIDA Grant to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Grant Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil Works 1,200,000 100% of foreign expenditures and 90% of local expenditures (2) Technical 1,500,000 100% Assistance and Training (3) Vehicles, 2,700,000 100% of foreign Furniture, expenditures and Equipment, 90% of local Tools and expenditures Materials (4) Incremental 1,400,000 90% for with- recurrent drawals up to costs in- an aggregate cluding staff amount equiva- allowances lent to $500,000; 80% for with- drawals exceed- ing an aggregate amount equivalent to $500,000 but not exceeding $1,000,000; and 60% for with- drawals exceeding an aggregate amount equivalent to $1,000,000 but not exceeding $1,400,000. -8- Amount of the Grant Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (5) Unallocated 700,000 TOTAL 7,500,000