Conformed Copy - C2755 - Social Recovery II Project - Norwegian Grant Agreement

Page 1 CONFORMED COPY TF Number 020036 NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2755 ZA Norwegian Grant Agreement (Second Social Recovery Project) between REPUBLIC OF ZAMBIA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of development aid funds provided by THE NORWEGIAN AGENCY FOR DEVELOPMENT COOPERATION REPRESENTING THE GOVERNMENT OF THE KINGDOM OF NORWAY Dated November 13, 1995 TF Number 020036 NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2755 ZA NORWEGIAN GRANT AGREEMENT AGREEMENT, dated November 13, 1995, between the REPUBLIC OF ZAMBIA (ZAMBIA) and the INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator (the Administrator) of the Norwegian Grant (as hereinafter defined) provided by the NORWEGIAN AGENCY FOR DEVELOPMENT COOPERATION, representing the GOVERNMENT OF THE KINGDOM OF NORWAY. WHEREAS Zambia has requested the assistance of the International Development Association (the Association) and the Norwegian Agency for Development Cooperation (Norway) in financing Parts B and C of the Project (the Project) described in Schedule 2 to the Development Credit Agreement (Credit No. 2755 ZA) dated July 18, 1995, between Zambia and the Association (the Development Credit Agreement); WHEREAS the Association has granted a Credit for this Page 2 purpose on the terms and conditions set forth in the Development Credit Agreement; WHEREAS Norway wishes to make available to Zambia a grant in an amount of fourteen million Norwegian Kroner (NOK 14,000,000) (the Norwegian Grant) to assist Zambia in carrying out Parts B and C of the Project on the terms and conditions hereinafter set forth; WHEREAS, by an agreement dated July 10, 1995 between Norway and the Association (the Administration Agreement), Norway has requested the Association, and the Association has agreed, to administer the Norwegian Grant; and WHEREAS Zambia acknowledges that the financial assistance extended to Zambia under this Agreement (the Norwegian Grant Agreement) shall be considered as part of the bilateral development aid extended by Norway to Zambia; 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, with the modifications set forth below (the General Conditions) constitute an integral part of this Agreement: (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 agreement of July 10, 1995 between Norway and the Association, except in the provisions "member(s) of the Association" occurring in Section 2.01 (5), 4.02 (b) and 6.02 (e); (b) the term "Borrower," whenever used in the General Conditions, means Zambia; (c) the term "Development Credit Agreement," whenever used in the General Conditions, means this Agreement; (d) the term "Credit," whenever used in the General Conditions, means the Norwegian Grant extended to Zambia under this Agreement; (e) the term "Credit Account," whenever used in the General Conditions, means the Trust Account opened by the Administrator in its books in the name of Zambia to which the amount of the Norwegian Grant is credited; (f) in Section 6.02, the term "Association" shall also include the International Development Association acting in its own capacity; (g) in Section 9.06 (c), the term "Closing Date" means the closing date set forth in Section 2.03 of the Development Credit Agreement; and (h) 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), 12.02 and 12.05 are deleted. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, in the Preamble to this Agreement and in the Development Credit Agreement have the respective meanings therein set forth, namely, the terms