Conformed Copy - C2137 - Education Planning and Rehabilitation Project - Development Grant Agreement

Page 1 CONFORMED COPY NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2137 TA (Education Planning and Rehabilitation Project) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator on behalf of the GOVERNMENT OF THE KINGDOM OF NORWAY Dated June 16, 1992 NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2137 TA DEVELOPMENT GRANT AGREEMENT AGREEMENT, dated June 16, 1992, between REPUBLIC OF TANZANIA (the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION, acting as Administrator (the Administrator) of a Grant provided by THE KINGDOM OF NORWAY (Norway). WHEREAS, the Recipient has requested the assistance of the International Development Association (the Association) and of Norway in the financing of a Education Planning and Rehabilitation Project described in Schedule 2 to the Development Credit Agreement dated June 18, 1990, between the Recipient and the Association (IDA Credit Agreement). WHEREAS in consideration of the above-mentioned request, Norway shall open a trust account and deposit therein an amount not exceeding fifty-six million Norwegian Kroner (NOK 56,000,000) (the Norwegian Grant) and has, pursuant to a Letter of Agreement dated October 31, 1991, between Norway and the Association, (the Administration Agreement), appointed the Association as Administrator of the said Trust Account for the purpose of providing assistance to the Recipient; WHEREAS, the Recipient acknowledges that the financial assistance extended to the Recipient under this Agreement shall be considered as part of the bilateral development aid extended by Norway to the Recipient; and WHEREAS, the Association, as Administrator as hereinbefore mentioned has agreed on the basis, inter alia, of the foregoing to extend the Norwegian Grant to the Recipient upon the terms and conditions hereinafter set forth; Page 2 NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985, with the same force and effect as if they were fully set forth herein, subject, however, to the following modifications thereof: (a) the term "Association", whenever used in the General Conditions, means the International Development Association acting as Administrator of the Norwegian Grant pursuant to the provisions of the Administration Agreement; (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 Norwegian Grant hereunder; (d) the term "Credit Account", whenever used in the General Conditions or in this Agreement means the Account opened by the Association in its books in the name of the Recipient to which the amount of the Norwegian Grant is credited; (e) the term "Project" means the Project for which the Norwegian Grant is extended, as described in Part C.3 of Schedule 2 to the IDA Credit Agreement dated June 18, 1990, and as the description thereof may be amended from time to time by agreement between the Association and the Recipient. (f) Sections 3.02, 3.03, 3.04, 3.05, 4.01, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a) and 12.05 of the General Conditions are deleted; and (g) in Sections 6.02 and 7.01 of the General Conditions, the term "Association" shall include also the Association acting in its own capacity. Section 1.02. Whenever used in this Agreement the following terms "Norwegian Kroner" and "NOK" mean the currency of Norway. ARTICLE II The Grant Section 2.01. The Administrator agrees to extend to the Recipient, on the terms and conditions herein set forth or referred to, a grant in an amount of fifty-six million Norwegian Kroner (NOK 56,000,000). Section 2.02. (a) The amount of the Norwegian Grant may be withdrawn from the Credit Account in accordance with the Schedule to this Agreement for expenditures made (of if the Administrator shall so agree, to be made) in respect of the reasonable cost of works and goods required for Part C.3 of the Project. (b) Withdrawals from the Credit Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Norwegian Grant have been paid or are pay able or, at the option of the Association, in Norwegian Kroner. Section 2.03. Except as the Administrator shall otherwise agree, procurement of the works and goods required for Part C.3 of the Project and to be financed out of the proceeds of the Norwegian Grant shall be procured in accordance with the provisions of Schedule 3 to the IDA Credit Agreement. Section 2.04. The Closing Date shall be December 31, 1996, 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 Program Section 3.01. Except as the Administrator shall otherwise agree, Articles III Page 3 and IV of the IDA 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 such Articles III and IV to the "Association" shall be deemed to be references to the Association, as Administrator on behalf of the Government of the Kingdom of Norway under this Agreement, all references to the "Development Credit Agreement" shall be deemed to be references to this Development Grant Agreement and all references to the "Credit" shall be deemed to be references to the Norwegian Grant. ARTICLE IV Effectiveness; Termination; Representation Section 4.01. This Agreement shall become effective upon signature. Section 4.02. This Agreement and all obligations of the Recipient and the Administrator hereunder shall terminate on the date on which the IDA Credit Agreement shall terminate in accordance with its terms. Section 4.04. The representative designated in Section 6.01 of the IDA Credit Agreement shall be the representative of the Recipient for the purposes of Section 11.03 of the General Conditions. Section 4.05. The addresses specified in Section 6.02 of the IDA Credit Agreement shall be the addresses specified for the purposes of Section 11.01 of the General Conditions. Section 4.06. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the IDA Credit Agreement. ARTILCE V Transfer of Rights and Obligations Section 5.01. In accordance with the Administration Agreement, the rights and obligations of the Administrator under this Agreement may be transferred to Norway. The Recipient accepts and agrees that, upon notice by the Administrator to the Recipient to that effect, Norway 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 Norway 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. UNITED REPUBLIC OF TANZANIA By /s/ Charles Nyirabu Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION, as ADMINISTRATOR on behalf of the GOVERNMENT OF THE KINGDOM OF NORWAY By /s/ Edward V.K. Jaycox Regional Vice President Africa SCHEDULE Page 4 Withdrawal of the Proceeds of the Norwegian Grant 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Norwegian Grant, the allocation of the amount of the Norwegian Grant to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Norwegian Grant Allocated % of (Expressed in NOK Expenditures Category Equivalent to be Financed (1) Building 11,200,000 100% materials (2) Furniture and 11,200,000 100% equipment (3) Pedagogical 19,600,000 100% materials and laboratory equipment and chemicals (4) Training 14,000,000 100% Total 56,000,000