Conformed Copy - C2681 - Private Sector Adjustment and Competitiveness Credit - Belgian Grant Agreement

Page 1 CONFORMED COPY TF NUMBER 023231 Belgian Grant Agreement (Private Sector Adjustment and Competitiveness Credit) between REPUBLIC OF SENEGAL and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and INTERNATIONAL DEVELOPMENT ASSOCIATION (collectively the Bank) as Administrator of the Belgian Funds Dated March 28, 1996 TF NUMBER 023231 BELGIAN GRANT AGREEMENT AGREEMENT, dated March 28, 1996, between REPUBLIC OF SENEGAL (the Recipient) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and INTERNATIONAL DEVELOPMENT ASSOCIATION (collectively the Bank) acting as Administrator (the Administrator) of the Belgian funds. WHEREAS (A) by an arrangement, dated November 2, 1995, (the Arrangement) between Belgium and the Bank, the Bank has agreed to administer the Belgian funds in accordance with the provisions of said Arrangement; (B) the Recipient has requested Belgian funds from the Administrator to cofinance a program of reform under the Private Sector Adjustment and Competitiveness Credit (the Program) and the Administrator has determined that the provision of such funds (the Belgian Grant) would be in accordance with the provisions of the Arrangement; (C) the Recipient has also received additional assistance towards the financing of the Program under an agreement (the Development Credit Agreement), dated February 23, 1995, between the Recipient and International Development Association (IDA), in an aggregate principal amount equivalent to twenty-seven million six hundred thousand Special Drawing Rights (SDR 27,600,000); and (D) the Administrator has agreed on the basis, inter alia, of the foregoing to extend the Belgian Grant to the Recipient upon the terms and conditions set forth Page 2 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 Development Credit Agreements of the Bank, dated January 1, 1985, with the modifications set forth below (the General Conditions) constitute an integral part of this Agreement: (a) the term "Association", when used in the General Conditions, means the International Development Association, acting as Administrator of the Belgian Grant, except in the phrase "member of the Association" in Section 2.01 (5), 4.02 (b) and 6.02 (e) thereof; (b) the terms "Development Credit Agreement", "Credit" and "Credit Account", when used in the General Conditions, are amended to read "Belgian Grant Agreement", "Belgian Grant" and "Belgian Grant Account" respectively; (c) Sections 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.06, 6.05, 7.01 and 8.01 (a), the second sentence of Section 5.01 and Article XII are deleted; (d) in Section 6.02, the term "Association" shall also include the International Development Association, acting in its own capacity; (e) 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 Recipient and the Administrator, the Recipient 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, the performance by the Recipient and the Administrator of their respective obligations under the Belgian Grant Agreement and the accomplishment of the purposes of the Belgian Grant."; and (f) the term "CFAF" means the currency of the Recipient. ARTICLE II The Belgian Grant Section 2.01. The Administrator agrees to make available to the Recipient, on the terms and conditions set forth or referred to in this Agreement, an amount in various currencies equivalent to one hundred million Belgian Francs (BF 100,000,000). Section 2.02. The amount of the Belgian Grant may be withdrawn from the Belgian Grant Account in accordance with the provisions of Schedule 1 to the Development Credit Agreement, as such Schedule may be amended from time to time by agreement between the Recipient and the Administrator. Section 2.03. The Closing Date shall be June 30, 1996, or such later date as the Administrator shall establish. The Administrator shall promptly notify the Recipient of such later date. ARTICLE III Particulars Covenants Section 3.01. (a) The Recipient and the Administrator shall, from time to time, at the request of either party, exchange views on the progress achieved in carrying out the Program and the Recipient