Conformed Copy - C2910 - Second Economic and Social Adjustment Credit - Agreement Amending Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2910-1-ZA (First Amendment) Agreement Amending Development Credit Agreement (Second Economic and Social Adjustment Credit) between REPUBLIC OF ZAMBIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated January 9, 1997 CREDIT NUMBER 2910-1 ZA (First Amendment) AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated January 9, 1997, between REPUBLIC OF ZAMBIA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower and the Association have entered into a Development Credit Agreement (Second Economic and Social Adjustment Credit) dated August 8, 1996 (the Development Credit Agreement), for the purpose of providing support during the execution of the Borrower's program designed to achieve structural adjustment of the Borrower's economy; (B) the Borrower has requested the Association to provide additional assistance in the support of the Program by increasing the amount made available under the Development Credit Agreement by an amount in various currencies equivalent to five million four hundred Special Drawing Rights (SDR 5,400,000); 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 of the Development Credit Agreement Section 1.01. Section 1.02 of the Development Credit Agreement is amended as follows: (i) deleting the word "and" at the end of definition (g); (ii) deleting the period at the end of definition (h); Page 2 (iii) adding next after definition (h) the following definition: "(i) 'Amending Agreement' means the Agreement Amending the Development Credit Agreement (Second Economic and Social Adjustment Credit) between the Borrower and the Association, dated January 9, 1997." 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 sixty-seven million eight hundred thousand Special Drawing Rights (SDR 67,800,000) (the Credit), which includes: (a) an original amount in various currencies equivalent to sixty-two million four hundred thousand Special Drawing Rights (SDR 62,400,000) (the Initial Financing); and (b) an additional amount in various currencies equivalent to five million four hundred thousand Special Drawing Rights (SDR 5,400,000) (the Additional Financing)." Section 1.03. (a) Paragraph (d) of Section 2.02 of the Development Credit Agreement is amended by the deletion of the amount of "SDR 31,200,000" and the substitution therefor of the amount of "SDR 36,600,000". (b) a new Paragraph (e) is added in Section 2.02 of the Development Credit Agreement which shall read as follows: "(e) After a date twelve months from the date of the Amending Agreement, no withdrawal shall be made from the Credit Account 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 unwith- drawn amount of the Additional Financing from the Credit Account or any part thereof." Section 1.04. Paragraph (b) (i) of Section 2.04 of the Development Credit Agreement is amended by adding after the term "cancelled" the following proviso reading: "and that any commitment charge on the Additional Financing shall accrue from a date sixty days after the date of the Amending Agreement." 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 Amending 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 Amending Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and is legally binding 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 Page 3 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 hereunder 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, the Development Credit 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 ZAMBIA By /s/ Dunstan Kamana Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Callisto Madavo Regional Vice President Africa