Conformed Copy - C2077 - Financial Sector Adjustment Credit - Canadian Grant Agreement

Page 1 Canadian Grant Agreement (Mutualist Banking Project) between REPUBLIC OF SENEGAL and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by Her Majesty the Queen in Right of Canada Dated August 13, 1990 CANADIAN GRANT AGREEMENT AGREEMENT, dated August 13, 1990, between REPUBLIC OF SENEGAL (the Beneficiary) and INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator (the Administrator) of the Contribution (as hereinafter defined) provided by Her Majesty the Queen in Right of Canada (her Majesty). WHEREAS the Beneficiary requested the assistance of Canada to finance technical assistance to support mutualist banking operations in Senegal as described in Schedule 2 hereto (hereinafter called "the Project"); WHEREAS the Beneficiary requested the International Development Association to act as administrator for the Contribution; 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 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 Page 2 except in the phrase " member of the Association " in Sections 2.01 (5), 4.02 (b) 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 Bank of Canada 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."; and (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 ARTICLE II 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 two hundred seventy-three thousand Canadian Dollars (CDN $1,273,000). Section 2.02. (a) The amount of the Contribution may be withdrawn from the account referred to in Section 1.01 of this Agreement for expenditures made (or if the Administrator shall so agree, to be made) in respect of the reasonable cost of the goods and services required for the Project and to be financed out of the proceeds of the Contribution. (b) Notwithstanding the provisions of paragraph (a) above, no withdrawals shall be made in respect of payments for taxes levied by, or in the territory of, the Beneficiary on goods and services or in the importation, manufacture, procurement or supply thereof . Section 2.03. (a) Except as the Administrator shall otherwise agree, contracts for services required for the Project and to be financed out of the proceeds of the Page 3 Contribution shall be procured in accordance with the provisions of Schedule 1 to this Agreement. (b) If the Administrator shall have reasonably determined that the procurement of any item is inconsistent with the procedures set forth or referred to in paragraph (a) above, no expenditures for such item shall be financed out of the proceeds of the Contribution, 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 Beneficiary, cancel such amount of the Contribution 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 Contribution. Section 2.04. The Closing Date shall be June 30, 1992 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. The Beneficiary shall carry out the Project through the Ministry of Economy and Finance with due diligence and efficiency and in conformity with appropriate administrative, financial and energy conservation practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. ARTICLE IV Representation; Transfer of Rights and Obligations Section 4.01. The Minister responsible for finance of the Beneficiary shall each be the representative of the Beneficiary 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: For the Beneficiary: Ministry of Economy and Finance Rue Charles Laine P.O. Box 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 Page 4 Cable address: Telex: INDEVAS 197683 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTCC) Section 4.03. In accordance with the agreement referred to in the Preamble to this Agreement between Her Majesty and the Administrator, the rights and obligations of the Administrator under this Agreement may be transferred to Her Majesty. The Beneficiary accepts and agrees that, upon notice by the Administrator to the Beneficiary to that effect, Her Majesty 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. ARTICLE V Effectiveness Section 5.01. This Agreement shall become effective as of the date first above written and shall continue in effect until termination of the Agreement between the Government of Canada, International Bank for Reconstruction and Development and International Development Association, dated December 15, 1988, or until the Contribution has been fully disbursed and the parties to this Agreement have fulfilled their obligations hereunder, whichever occurs first. 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 Ibra Deguene Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by Her Majesty in Right of Canada By /s/ Katherine Marshall Acting Regional Vice President Africa SCHEDULE 1 Consultants' Services Employment of Consultants Page 5 In order to assist the Beneficiary in carrying out the Project, the Beneficiary shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Administrator. SCHEDULE 2 Description of the Project 1. General The Project provides technical assistance to the Government of Senegal to promote and support mutualist banking operations in Senegal. 2. Project Elements The Contribution for the Project will be used to financed the fees and expenses for 48 person- months 3. Budget Estimates (CDN $) Fees 602,000 Expenses 615,000 Supervision 26,000 Contingency 30,000 1,273,000 * * * * The project is expected to be completed by December 31, 1991.