Conformed Copy - C2081 - Industrial Enterprise Restructuring Project - Agreement

Page 1 CONFORMED COPY AGREEMENT RELATED TO CREDIT NUMBER 2081 MOZ Agreement (Industrial Restructuring Project) between GOVERNMENT OF SWEDEN and INTERNATIONAL DEVELOPMENT ASSOCIATION for the Administration of Certain Funds to be made available by the SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY Dated December 20, 1996 AGREEMENT RELATED TO CREDIT NUMBER 2081 MOZ AGREEMENT AGREEMENT, dated December 20, 1996, between GOVERNMENT OF SWEDEN (Sweden) represented by the SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY (SIDA) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) to provide for the administration by the Association of certain funds to be made available by Sweden to the Republic of Mozambique (Mozambique). WHEREAS (A): Sweden wishes to make available to Mozambique a grant not exceeding an amount of fourteen million Swedish Kronor (SEK 14,000,000) (the SIDA Grant) to assist Mozambique in financing part of the Industrial Restructuring Project, (the Project), described in Schedule 2 to the Development Credit Agreement (Credit Number 2081-MOZ), dated February 7, 1990, (the Development Credit Agreement) between Mozambique and the Association; (B) Sweden wishes that the proceeds of the Grant should be incremental to the proceeds of the Development Credit Agreement and extended for the same purposes by the Association pursuant to the Development Credit Agreement; and (C) the Association has agreed on the basis, inter alia, of the foregoing to administer the Grant upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: Page 2 ARTICLE I Section 1.01. The Association, as Administrator on behalf of Sweden, shall review and approve requests submitted by Mozambique to finance the reasonable costs of goods and services required during the execution of the Project in accordance with the relevant provisions of Schedule 1 to the Development Credit Agreement, except that the amounts to be withdrawn shall not be repaid and shall bear no interest or other charges. Section 1.02. The Association, as Administrator on behalf of Sweden, shall have the sole responsibility for the supervision of the Project. Section 1.03. The Association shall exercise the same care in the discharge of its functions under this Agreement as it exercises with respect to the administration and management of its own affairs and shall have no further responsibility to Sweden in respect thereof. ARTICLE II Section 2.01. (a) For the purpose of this Agreement, Sweden shall, upon request from the Association, deposit the Grant amount equivalent to fourteen million Swedish Kroner (SEK 14,000,000) into the IBRD