Conformed Copy - TF028650 - Oil Pollution Management Project for the Southwest Mediterranean Sea - Global Environment Trust Fund Grant Agreement

Page 1 CONFORMED COPY GET GRANT NUMBER TF028650 AL Global Environment Trust Fund Grant Agreement (Oil Pollution Management Project for the Southwest Mediterranean Sea) between DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT acting as Trustee of the Global Environment Trust Fund Dated May 20, 1994 GET GRANT NUMBER TF028650 AL GLOBAL ENVIRONMENT TRUST FUND GRANT AGREEMENT AGREEMENT, dated May 20, 1994, between the DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA (the Recipient) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT acting as Trustee of grant funds provided by Participants of the Global Environment Facility into the Global Environment Trust Fund (GET) (the Trustee). WHEREAS (A) the International Bank for Reconstruction and Development (the Bank) pursuant to Resolution No. 91-5 of March 14, 1991, of the Executive Directors of the Bank (the Resolution), established the Global Environment Facility consisting of the GET, Cofinancing Arrangements with the GET and the Ozone Projects Trust Fund, to assist in the protection of the global environment and promote thereby environmentally sound and sustainable economic development; WHEREAS (B) certain members of the Bank (the Participants) have provided resources by way of grant into the GET and the Participants have requested and the Bank has agreed, to administer such grant funds as Trustee, for the purposes of, and in accordance with, provisions of the Resolution; WHEREAS (C) the Recipient, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested assistance from the resources of the GET in the financing of the Project, and the Page 2 Trustee has determined that such assistance would be in accordance with the provisions of the Resolution; WHEREAS (D) the Recipient has obtained from the Bank, by an agreement dated September 17, 1990 between the Recipient and the Bank, a loan in an amount equivalent to $63,000,000 for a Third Ports Project (Loan 3105 AL); WHEREAS (E) by a GET Grant Agreement of even date herewith between the Republic of Tunisia ("Tunisia") and the Trustee, the Trustee has agreed to make available to Tunisia a GET Grant in an amount equivalent to SDR 4,200,000 to assist in the financing of the Project; WHEREAS (F) by a Letter of Agreement of even date herewith between the Kingdom of Morocco (the "Kingdom") and the Trustee, and a GET Grant Agreement of even date herewith between the Trustee and ODEP (as hereinafter defined), the Trustee has agreed to make available to ODEP a GET Grant in an amount equivalent to SDR 4,100,000 to assist in the financing of the Project; and WHEREAS the Trustee has agreed, on the basis, inter alia, of the foregoing, to extend the GET Grant to the Recipient upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. (a) The following provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated January 1, 1985, with the modifications set forth in paragraph (b) of this Section (the General Conditions) constitute an integral part of this Agreement: (i) Article I; (ii) Sections 2.01 (1), (2), (3), (4), (6), (8), (9), (10), (11), (15), (18) and (20), 2.02 and 2.03; (iii) Section 3.01; (iv) Section 4.01 and the first sentence of Section 4.09; (v) Article V; (vi) Sections 6.01, 6.02 (a), (c), (d), (e), (f), (i) and (k), 6.03, 6.04 and 6.06; (vii) Section 8.01 (b); (viii) Sections 9.01 (a) and (c), 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09; (ix) Sections 10.01, 10.03 and 10.04; (x) Article XI; and (xi) Section 12.04. (b) The General Conditions shall be modified as follows: (i) a new paragraph shall be added to the end of Section 2.01 to read as follows: "the term "Special Drawing Rights" and the symbol "SDR" mean special drawing rights as valued by the International Monetary Fund in accordance with its Articles of Agreement"; (ii) the term "Bank", wherever used in the General Conditions, other than in Sections 2.01 (8) and 6.02 (f) thereof and the last use of such term in Section 5.01 thereof, means the Trustee; (iii) the term "Borrower", wherever used in the General Conditions, means the Recipient; (iv) the term "Loan Agreement", wherever used in the General Page 3 Conditions, means this Agreement; (v) the term "Loan" and "loan" wherever used in the General Conditions, means the GET Grant; (vi) the term "Loan Account" wherever used in the General Conditions, means the GET Grant Account; and (vii) a new sub-paragraph shall be added after sub-paragraph (j) in Section 6.02 of the General Conditions, as follows: "An extraordinary situation shall have arisen in which any further disbursement under the GET Grant would exceed the resources available for disbursement from the GET." Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Recitals to this Agreement have the respective meanings therein set forth, and the following additional terms have the following meanings: (a) "Barcelona Convention" means the Convention for the Protection of the Mediterranean against Pollution, signed in Barcelona, Spain, on February 16, 1976, as amended from time to time, and to which the Recipient is a signatory party; (b) "Category" means a category of items to be financed out of the proceeds of the GET Grant as set forth in the table in paragraph 1 of Schedule 1 to this Agreement, and the term "Categories" means more than one Category collectively; (c) "Central Bank" means the Central Bank of Algeria ( Banque d' Alg