Mali - Structural Adjustment : Credit 2188 - Agreement - Conformed

NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2188 MLI Agreement for the Administration of Certain Funds to be made available by the ROYAL MINISTRY OF FOREIGN AFFAIRS OF THE KINGDOM OF NORWAY in Conjunction with the Structural Adjustment Program in the REPUBLIC OF MALI Dated 2 , 1992 NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2188 MLI AGREEMENT AGREEMENT, dated R * , 1992, between the ROYAL MINISTRY OF FOREIGN AFFA RS of the KINGDOM OF NORWAY ("Norway") and the INTERNATIONAL DEVELOPMENT ASSOCIATION (the "Association") to provide for the administration by the Association of certain funds to be made available by Norway to the Republic of Mali ("Mali"). WHEREAS (A) the Agreement dated October 2, 1986, between Norway, the International Bank for Reconstruction and Development and the Association provides the framework for cofinancing of development projects by the parties thereto; (B) Norway wishes to make available to Mali a grant in the amount of three million Norwegian Kroner (NOK 3,000,000) (the "Grant") to assist Mali in financing part of the goods and services required during the execution of Mali's Structural Adjustment Program (the "Program"); (C) Norway wishes that the proceeds of the Grant be incre- mental to the Credit extended for the same purposes by the Asso- ciation to Mali pursuant to the Development Credit Agreement No. 2188 MLI, dated January 23, 1991, between Mali and the Associa- tion (the "Development Credit Agreement"); and WHEREAS, the Association has agreed on the basis, inter alia, of the foregoing, to administer the Grant upon the terms and con- ditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Section 1.01. The Association, as Administrator on behalf of Norway, shall enter into such agreement or agreements with Mali, as it may deem appropriate but consistent with the terms and conditions of the Development Credit Agreement (excluding the debt service provisions thereof) for the purpose of assisting in the financing of the goods and services required during the Program. Such agree- ments with Mali shall, inter alia, provide that the proceeds of the Grant may be withdrawn by Mali to finance expenditures made (or, if the Administrator shall so agree, to be made) in respect of the reasonable cost of technical assistance and related goods and works required for the data collection and analysis of the social dimensions of adjustment component of the Program. The agreements shall also provide that the amounts to be withdrawn need not be -2- repaid and shall bear no interest or other charges. A copy of each such agreement shall be furnished by the Association to Norway. Section 1.02. The Association, as Administrator on behalf of Norway, shall have the sole responsibility for the supervision of the Program. Section 1.03. The administration and enforcement of any pro- visions of any agreement entered into between Mali and the Asso- ciation for the purposes of this Agreement shall be handled solely by the Association, and the Association specifically reserves the right, at its discretion and without notice to Norway, to exercise, refrain from exercising or waive any rights under such agreement or to modify any provision thezeof provided, however, that, before suspending the right of Mali to make withdrawals of funds under such agreement, the Association shall inform Norway and afford Norway a reasonable opportunity for consultation with the Association. Section 1.04. The Association shall exercise the same care in the discharge of its functions under this Agreement as it exercises with respect to the administration and management of its own affairs and shall have no further responsibility to Norway in respect thereof. ARTICLE II Section 2.01. (a) For the purpose of this Agreement, Norway shall, subject to parliamentary appropriations, deposit an amount of three million Norwegian Kroner (NOK 3,000,000) into the International Development Association's Cash Account 'T' (No. 0629.05.35636) which is maintained with Norges Bank (the "Trust Account"). (b) The funds in the Trust Account shall be freely exchange- able by the Association with other currencies as may facilitate their administration. Section 2.02. The Association shall disburse from the Trust Account such amounts as from time to time shall be needed to meet the reasonable costs of goods and services financed or to be financed pursuant to Section 1.01 of this Agreement. Such disburse- ment shall be effected on the basis of withdrawal applications for eligible expenditures submitted by Mali to the Association in accordance with the Association's procedures for withdrawal of proceeds of credits made by the Association. -3- Section 2.03. In order to assist in the defrayment of the costs of administration and other expenses incurred by the Asso- ciation under this Agreement, the Association may invelt and reinvest the funds in the Trust Account pending their disbursement to Mali, and may retain for its own account the income from any such investment or reinvestment. ARTICLE III Section 3.01. (a) The Association shall: (i) maintain separate records and accounts in respect of the funds in the Trust Account disbursed by the Association pursuant to the provisions of this Agreement; and (ii) promptly after the end of each fiscal year, furnish to Norway a statement of account on such records and accounts. (b) Promptly after all funds made available under this Agreement have been disbursed from the Trust Account or upon termination of this Agreement, whichever is the earlier, the Asso- ciation shall cause such accounts and records to be audited and certified by the Association's external auditors and shall furnish the report of such audit by said auditors to Norway. The cost of such audit shall be borne by the International Bank for Reconstruc- tion and Development. ARTICLE IV Section 4.01. Norway and the Association shall consult from time to time at each other's request on all matters arising out of this Agreement. Section 4.02. The Association shall keep Norway informed of the progress made in the implementation of the Program. To such purpose, the Association shall furnish to Norway all relevant progress performance and assessment reports rov3ating to the Program. Section 4.03. The Association shall inform Norway of all forthcoming major missions and meetings in connection with the Program and, subject to the consent of Mali, shall afford represen- tatives of Norway the opportunity to participate in such missions and meetings. -4- Section 4.04. The Association shall inform Norway of any proposed significant modification to the Development Credit Agree- ment and shall afford Forway a reasonable opportunity to exchange views with the Association before effecting any such modification. ARTICLE V Section 5.01. This Agreement shall become effective as of the date first above written and, subject to the provisions of this Article, shall continue in effect until all funds made available under this Agreement have been disbursed from the Trust Account to Mali. Section 5.02. If, at any time it appears to either party that the purposes of this Agreement can no longer effectively or appro- priately be carried out, the Agreement may be terminated at the initiative of such party by a ninety (90) days' notice in writing. Section 5.03. Upon termination of the Agreement, unless the parties agree on another course of action, any agreement or portion thereof entered into by the Association, as Administrator on behalf of Norway, shall be transferred to Norway and any funds or other property of Norway held hereunder by the Association shall be returned to Norway, and the Association's administration shall be considered terminated. Section 5.04. Promptly after all funds made available under this Agreement have been disbursed from the Trust Account or upon termination of this Agreement, whichever is the earlier, the Asso- ciation shall furnish to Norway a final report and a financial statement on the Trust Account, together with an opinion of the Association's external auditors on such statement. ARTICLE VI Section 6.01. This Agreement may be amended only by written agreement of the parties hereto. Section 6.02. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable or telex to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such -5- other addresses as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For Norway: The Royal Ministry of Foreign Affairs P.O. Box 8114 Dep. 0032 Oslo 1 Norway Cable address: Telex: NORAD-N 76548 NORAD-N Oslo For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 197688 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTCC) -6- IN WITNESS WHEREOF, the undersigned duly authorized thereto, have signed this Agreement. ROYAL MINISTRY OF FOREIGN AFFAIRS OF THE KINGDOM OF NORWAY By 5/ Q--,r S e Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION Regional Vice President Africa INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Development Association. FOR SECRETARY