Conformed Copy - L2961 - Water Supply and Sewerage Sector Project - Loan Agreement 2

Page 1 CONFORMED COPY LOAN NUMBER 2961 CO (Water Supply and Sewerage Sector Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and BANCO CENTRAL HIPOTECARIO Dated February 8, 1989 LOAN NUMBER 2961 CO LOAN AGREEMENT AGREEMENT, dated February 8, 1989, between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) and BANCO CENTRAL HIPOTECARIO (the Borrower). WHEREAS (A) Republic of Colombia (the Guarantor) and the Borrower, having been satisfied as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, have requested the Bank to assist in the financing of the Project, since it is consistent with, and supports the execution of, the Guarantor's Water Supply and Sewerage Sector Reform Program (SRP); and (B) by an agreement (the Guarantee Agreement) of even date herewith between the Guarantor and the Bank, the Guarantor has agreed to guarantee the obligations of the Borrower in respect of the Loan and to undertake such other obligations as set forth in the Guarantee Agreement; and WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to extend the Loan to the Borrower upon the terms and conditions set forth in this Agreement; Page 2 NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Loan and Guarantee Agreements" of the Bank, dated January 1, 1985, with the last sentence of Section 3.02 deleted (the General Conditions) constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "MOPT" means Ministerio de Obras Publicas y Transporte, the Guarantor's Ministry of Public Works and Transport; (b) "JNT" means Junta Nacional de Tarifas, the Guarantor's National Tariff Board; (c) "FONADE" means Fondo Nacional de Proyectos de Desarrollo, the Guarantor's National Fund for Development Projects; (d) "FFDU" means Fondo Financiero de Desarrollo Urbano, the Borrower's Urban Development Fund; (e) "SRP" means the Guarantor's Water Supply and Sewerage Sector Reform Program set forth in the letter of the Guarantor dated May 15, 1988; (f) "SIR Legislation" means the Guarantor's legislation containing the institutional reorganization of the water supply and sewerage sector, as set forth in Decree No. 77 of January 15, 1987, published in Diario Oficial on January 15, 1987; and Decree No. 1723 of September 4, 1987, published in Diario Oficial on September 7, 1987, both as amended to the date of this Agreement; (g) "DNP" means Departamento Nacional de Planeaci