Conformed Copy - C1910 - Development Management Project - Canadian Grant Agreement

Page 1 CANADIAN GRANT RELATED TO CREDIT NUMBER 1910 SE Canadian Grant Agreement (Relating to the Social Dimensions of Adjustment Component of the Development Management Project in Senegal) between REPUBLIC OF SENEGAL and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by the Government of Canada Dated February 26, 1990 CANADIAN GRANT RELATED TO CREDIT NUMBER 1910 SE CANADIAN GRANT AGREEMENT AGREEMENT, dated February 26, 1990, between the REPUBLIC OF SENEGAL (the Beneficiary) and the INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator (the Administrator) of the Contribution (as hereinafter defined) provided by the Government of Canada (Canada). WHEREAS the Beneficiary has requested the assistance of Canada in financing the Social Dimensions of Adjustment Component of the Development Management Project described in Schedule 2 to the Development Credit Agreement (the Development Credit Agreement) between the International Development Association and the Republic of Senegal entered into on June 9, 1988, (said component hereinafter referred to as the Project); WHEREAS by an agreement dated March 2, 1989, between Canada and the International Development Association (the Contribution Agreement), Canada has requested the International Development Association, and the International Development Association has accepted, to administer an amount of two million United States dollars (US$2,000,000) (the Contribution) in accordance with the provisions of the Contribution Agreement; and WHEREAS the Beneficiary acknowledges that the financial assistance extended to the Beneficiary under this Agreement shall be considered as part of the bilateral development aid extended by Canada to the Page 2 Beneficiary; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985, (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 Contribution except in the phrase "member of the Association" in Sections 2.01 (5) and 6.02 (e) (i); (b) the term "Development Credit Agreement" whenever used in the General Conditions, means this Agreement; (c) the term "Credit", whenever used in the General Conditions, means the Contribution extended to the Beneficiary under this Agreement; (d) the term "Credit Account", whenever used in the General Conditions, means the account opened in the Federal Reserve Bank of New York in the name of the Administrator to which the amount of the Contribution is credited; (e) in Section 6.02 the term "Association" shall also include the International Development Association acting in its own capacity; (f) 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 Beneficiary and the Administrator, the Beneficiary shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator shall reasonably request, on the execution of the project referred to in the Preamble to the Canadian Grant Agreement, the performance by the Beneficiary and the Administrator of their respective obligations under the Canadian Grant Agreement and the accomplishment of the purposes of the Contribution."; (g) Sections 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a), 12.02 and 12.05 of the General Conditions are deleted; and (h) the term "Borrower", whenever used in the General Conditions, means the Beneficiary. Section 1.02. Whenever 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 "T-Account" means the account opened in the Bank of Canada in the name of the Administrator to which the amount of the Contribution is credited. ARTICLE II Page 3 The Contribution Section 2.01. The Administrator agrees to extend to the Beneficiary, on the terms and conditions herein set forth or referred to, a Contribution in an amount of up to one million nine hundred sixty thousand United States dollars (US$1,960,000, or such other amount as shall have been made available by Canada to the Administrator for this purpose pursuant to the Contribution Agreement. Section 2.02. The amount of the Contribution may be withdrawn from the T-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 services and related expenses required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Contribution. Section 2.03. Except as the Administrator shall otherwise agree, contracts for services required for the Project and to be financed out of the proceeds of the Contribution shall be procured in accordance with the provisions of Section II of Schedule 3 to the Development Credit Agreement, provided, however, that the Beneficiary shall employ, as international experts, Canadian citizens, landed immigrants in Canada or citizens of Senegal to carry out such services. Section 2.04. The Closing Date shall be June 30, 1994 or such later date as the Administrator shall establish. The Administrator shall promptly notify the Beneficiary of such later date. ARTICLE III Execution of the Project Section 3.01. Except as otherwise expressly provided herein, Sections 3.01, 3.03, 3.04, 3.05, 3.06, 4.01 and 5.01 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 understood that all references in said sections to "the Association" shall be deemed to be references to the Association acting as Administrator of the Contribution under this Agreement, all references to the "Credit" and the "Credit Account" shall be deemed to be references to the Contribution and the T-Account, respectively, and all references to the Borrower shall be deemed to be references to the Beneficiary. ARTICLE IV Effectiveness; Termination Section 4.01. The following event is specified as an additional condition to the effectiveness of this Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely that all conditions precedent to be effectiveness of the Development Credit Agreement have been fulfilled. Section 4.02. This Agreement shall continue in effect until termination of the Contribution Agreement, or until the Contribution has been fully disbursed and the parties to this Agreement have fulfilled their obligations hereunder, whichever occurs first. ARTICLE V Page 4 Representation; Transfer of Rights and Obligations Section 5.01. The Minister of the Beneficiary responsible for Finance shall be the 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 Economy and Finance Rue Charles Laine B.P. 4017 Dakar, Senegal Cable address: Telex: MINIFINANCES 3203 SG Dakar, Senegal 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 5.03. In accordance with the Contribution Agreement, the rights and obligations of the Administrator under this Agreement may be transferred to Canada. The Beneficiary accepts and agrees that, upon notice by the Administrator to the Beneficiary to that effect, Canada shall, ipso facto, from the date specified in such notice, be substituted in all rights and obligations of the Administrator under this Agreement as if Canada 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. 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 SENEGAL By /s/ Ibra Deguene Ka Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION Page 5 as Administrator of the Canadian Contribution provided by the Government of Canada By /s/ Michael J. Gillette Acting Regional Vice President Africa SCHEDULE 1 Withdrawal of the Proceeds of the Contribution 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Contribution, the allocation of the amounts of the Contribution to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Contribution Allocated % of (Expressed in $ Expenditures CategoryEquivalent) to be Financed (1) Contractual 300,000 100% staff (2) Consultants' 1,270,000 100% services and studies (3) Training 390,000 100% TOTAL 1,960,000 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to June 9, 1988. SCHEDULE 2 Description of the Project The Social Dimension of Adjustment activities to be financed by the Contribution include: (a) establishment and operation of a permanent system of surveys on the standard of living of households; (b) in-depth socio-economic studies on the effects of adjustment programs: (i) to improve such programs by integrating social dimensions; and (ii) to identify poverty-alleviation projects; and (c) related training of Senegalese staff. * * * The Project is expected to be completed by December 31, 1993.