Mauritania - Structural Adjustment Credit : Credit 1812 - Dutch Grant Agreement - Conformed

DUTCH GRANT RELATED TO CREDIT NUMBER 1812 MAU Dutch Grant Agreement (Mauritania - Structural Adjustment Credit) between ISLAMIC REPUBLIC OF MAURITANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of Dutch Funds provided by the MINISTER FOR DEVELOPMENT COOPERATION OF THE NETHERLANDS Dated , 1987 DUTCH GRANT RELATED TO CREDIT NUMBER 1812 MAU DUTCH GRANT AGREEMENT AGREEMENT, dated , 1987, between ISLAMIC REPUBLIC OF MAURITANIA (the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator (the Adminis- trator) of the Dutch Grant (as hereinafter defined) provided by the Minister for Development Cooperation of the Netherlands (the Minister). WHEREAS (A) the Recipient has requested the assistance of the International Development Association (the Association) and of the Minister in the financing of the Program of structural adjustment of the Recipient's economy, described in a letter from the Recipient to the Association, dated May 13, 1987, (the Program); WHEREAS (B) the Association has granted a Credit for this purpose on the terms and conditions set forth in the Development Credit Agreement, dated June 26, 1987, (Credit No. 1812-MA) between the Recipient and the Association (the Development Credit Agreement); WHEREAS (C) the Minister wishes to make available to the Recipient a grant in the amount of five million Dutch Guilders (the Dutch Grant) to assist the Recipient in carrying out the Program on the terms and conditions hereinafter set forth; WHEREAS (D) pursuant to the arrangements, dated December 11, 1986, between the Minister and the Association (the Arrange- ments), the Minister has requested the Association, and the Association has accepted, to administer the Dutch Grant in accordance with the provisions of these Arrangements; and WHEREAS (E) the Recipient acknowledges that the financial assistance extended to the Recipient under this Dutch Grant Agreement shall be considered as part of the bilateral develop- ment aid extended by the Government of the Netherlands 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, - 2 - (the General Conditions) constitute an integral part of this 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 Dutch Grant pursuant to the Arrangements, except in the phrase "member of the Association" in Sections 2.01 (5) and 6.02 (e); (b) the term "Development Credit Agreement", whenever used in the General Conditions, means this Agreement; (c) the term "Credit", whenever used in the General Condi- tions, means the Dutch Grant extended to the Recipient under this Agreement; (d) the term "Credit Account", whenever used in the General Conditions, shall be deemed to read Dutch Grant Account; (e) Section 2.01, paragraph 9, shall be modified to read: "'Program' means the imports and other activities that may be financed out of the proceeds of the Dutch Grant pursuant to the provisions of Schedule 1 to the Development Credit Agreement" (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 program referred to in the Preamble to the Dutch Grant Agreement, the performance by the Recipient and the Administrator of their respective obligations under the Dutch Grant Agreement and the accom- plishment of the purposes of the Dutch Grant"; - 3 - (h) Sections 3.02, 3.03, 3.04, 3.05, 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 Conditions, means the Recipient. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement and in the Development Credit Agreement have the respective meanings therein set forth and the terms "Dutch Guilders and "Dfls" mean the currency of the Netherlands. ARTICLE II The Grant Section 2.01. The Administrator agrees to extend to the Recipient, on the terms and conditions herein set forth or refer- red to, a grant in an amount equivalent to five million Dutch Guilders (Dfls 5,000,000). Section 2.02. The amount of the Dutch Grant may be withdrawn from the Dutch Grant Account in accordance with the provisions of the Schedule to this Agreement, as such Schedule may be amended from time to time by agreement between the Recipient and the Administrator. 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 Dutch Grant shall be procured in accor- dance with the provisions of Schedule 2 to the Development Credit Agreement which is hereby incorporated into this Agreement with the same force and effect as if it were fully set forth herein, it being understood that the references in said Schedule to the "Association" and the "Credit Account" shall be deemed t, be references to the Association acting as Administrator of the Dutch Grant and the Dutch Grant Account, respectively. (b) If the Administrator shall have reasonably determined that the procurement of any item is inconsistent with the pro- cedures set forth or referred to in paragraph (a) above, no expenditures for such item shall be financed out of the proceeds of the Dutch Grant, and the Administrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under this Agreement, by notice to the Recipient, cancel such amount of the Dutch 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 Dutch Grant. Section 2.04. The Closing Date shall be June 30, 1988, or such later date as the Administrator shall establish. The Administrator shall promptly notify the Recipient of such later date. ARTICLE III Execution of the Project Section 3.q1. 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, it being under- stood that all references in said Articles III and IV to "the Associatiun" shall be deemed to be references to the Association acting as Administrator of the Dutch Grant under this Agreement and all references to the "Credit" and the "Credit Account" shall be deemed to be references to the Dutch Grant and the Dutch Grant Account, respectively, and all references to the Borrower shall be deemed to be references to the Recipient. ARTICLE IV Effectiveness Section 4.ti. This Agreement shall become effective as of the date first above written and shall continue in effect until the Dutch Grant has been fully disbursed and the parties to this Agreement have fulfilled their obligations hereunder. ARTICLE V Representation; Transfer of Rights and Obligations Section 5.01. The Minister of the Recipient responsible for Economy and Finance shall be the representative of the Recipient for the purposes of Section 11.03 of the General Conditions. -5- Section 5.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Recipient: Ministry of Economy and Finance B. P. 238 Nouakchott Islamic Republic of Mauritania Cable address: Telex: MEF 540 MTN Nouakchott For the Administrator: International Development Asociation 1818 H Street, N.W. Washington, D.C. 20433 United State6 of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) Section 5.03. In accordance with the Arrangements, the rights and obligations of the Administrator under this Agreement may be transferred to the Minister. The Recipient accepts and agrees that, upon notice by the Administrator to the Recipient to that effect, the Minister shall, ipso facto, from the date specified in such notice, be substituted in all rights and obli- gations of the Administrator under this Agreement as if the Minister 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. -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. ISLAMIC REPUBLIC OF MAURITANIA By /5/ /- Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Dutch Grant By Regional Vice President Africa - 7 - SCHEDULE Withdrawal of the Proceeds of the Dutch Grant 1. Subject to the provisions set forth or referred to in this Schedule, the proceeds of the Dutch Grant may be withdrawn from the Dutch Grant Account for expenditures made (or, if the Admin- istrator shall so agree, to be made) in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of such proceeds. 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: (a) expenditures for goods included in the following SITC groups or sub-groups: Group Sub-group Description of Items 112 - Alcoholic beverages 121 - Tobacco, unmanufactured tobacco refuse 122 - Tobacco, manufactured 667 - Pearls, precious and semi- precious stones, unworked or worked 688 - Uranium depleted in U235 and thorium, and their alloys, unwrought or wrought, and articles therefor, n.e.s.; waste and scrap of uranium depleted in U235 and of thorium 718 718.7 Nuclear reactors, and parts thereof, n.e.s. 897 897.3 Jewelry of gold, silver or platinum group metals (except watches and watch cases) and goldsmiths' or silversmiths' wares (including set gems) -8 - Group Sub-group Description of Items 971.0 Gold, non-monetary (excluding gold ores and concentrates) (b) expenditures in the currency of the Recipient or foi goods supplied from the territory of the Recipient; (c) payments made for expenditures prior to the date of the Development Credit Agreement; (d) expenditures for goods procured under contracts costing less than $10,000 equivalent; (e) expenditures for goods supplied under a contract which any national or international financing institution or agency other than the Association shall have financed or agreed to finance; and (f) expenditures for goods intended for a military or para-military purpose or for luxury consumption. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the oriinal in the archives of the International Development Association. FOR SECRETARY