Conformed Copy - C2718 - Private Sector Adjustment Credit - Agreement Amending Development Credit Agreement

Page 1 CREDIT NUMBER 2718-1 GH (Amendment) Agreement Amending Development Credit Agreement (Private Sector Adjustment Credit) between REPUBLIC OF GHANA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated December 21, 1995 DEVELOPMENT CREDIT NUMBER 2718-1 GH (Amendment) AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated December 21, 1995, between REPUBLIC OF GHANA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower and the Association have entered into a Development Credit Agreement (Private Sector Adjustment Credit), dated July 25, 1995 (the Development Credit Agreement) for the purpose of assisting in the financing of the program referred to in Recital (A) of the Preamble to the Development Credit Agreement (the Program); (B) the Borrower has requested the Association to provide additional assistance towards the financing of the Program by increasing the amount made available under the Development Credit Agreement by an amount in various currencies equivalent to three million two hundred thousand Special Drawing Rights (SDR 3,200,000); and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to provide such additional assistance to the Borrower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Amendments to the Development Credit Agreement Section 1.01. Section 1.02 of the Development Credit Page 2 Agreement is amended by the deletion of the word "and" at the end of Sub-section (e), the deletion of the period and its substitution by a semi-colon and the insertion of the word "and" at the end of Subsection (f), and the addition of a Subsection (g) to read as follows: "(g) "Amending Agreement" means the Agreement Amending Development Credit Agreement (Private Sector Adjustment Credit) between the Borrower and the Association, dated December 21, 1995." Section 1.02. Section 2.01 of the Development Credit Agreement is amended to read as follows: "Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to fifty million one hundred thousand Special Drawing Rights (SDR 50,100,000) (the Credit), which includes an original amount in various currencies equivalent to forty six million nine hundred thousand Special Drawing Rights (SDR 46,900,000) and an additional amount in various currencies equivalent to three million two hundred thousand Special Drawing Rights (SDR 3,200,000) (the Additional Financing)." Section 1.03. A proviso is added at the end of Section 2.04 (b) of the Development Credit Agreement reading as follows: "; provided, however, that any commitment charge on the Additional Financing shall accrue from a date sixty days after the date of the Amending Agreement." Section 1.04. Paragraph 4 (a) of Schedule 1 to the Development Credit Agreement is amended by the deletion therefrom of the amount "SDR 20,100,000" and the substitution therefor of the amount "SDR 23,300,000"; and paragraph 4 (b) of Schedule 1 to the Development Credit Agreement is amended by the deletion therefrom of the amount " 30,200,000" and the substitution therefor of the amount "SDR 33,500,000". Section 1.05. The following paragraph is added at the end of Schedule 1 to the Development Credit Agreement: "6. After a date twelve months from the date of this Amending Agreement, no withdrawals shall be made and no commitment shall be entered into to pay amounts to or on the order of the Borrower in respect of expenditures to be financed out of the proceeds of the Additional Financing. At any time after such date, the Association may, by notice to the Borrower, cancel the unwithdrawn amount of the Additional Financing from the Credit Account or any part thereof." ARTICLE II Effective Date; Termination Section 2.01. This Amending Agreement shall not become effective until evidence satisfactory to the Association shall have been furnished to the Association that the execution and delivery of this Amending Agreement on behalf of the Borrower have been duly authorized or ratified by all necessary governmental action. Section 2.02. As part of the evidence to be furnished pursuant to Section 2.01 of this Agreement, there shall be furnished to the Association an opinion or opinions satisfactory to the Association of counsel acceptable to the Association showing, on behalf of the Borrower, that this Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and is legally binding Page 3 upon the Borrower in accordance with its terms. Section 2.03. This Amending Agreement shall come into force and effect on the date upon which the Association shall dispatch to the Borrower notice of its acceptance of the evidence required by Section 2.01 of this Amending Agreement. Section 2.04. If this Amending Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Amending Agreement, this Amending Agreement and all obligations of the parties thereunder shall terminate, unless the Association establishes a later date for the purposes of this Section. If this Amending Agreement shall terminate under the provisions of this Section, this Amending Agreement shall continue in full force and effect as if this Amending Agreement had not been executed. IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Amending 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 GHANA By /s/ Ekwow Spio-Garbrah Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Edward V.K. Jaycox Regional Vice President Africa