Conformed Copy - L4231 - Second Municipal Finance Project - Guarantee Agreement

Page 1 CONFORMED COPY LOAN NUMBER 4231-MOR Guarantee Agreement (Second Municipal Finance Project) between KINGDOM OF MOROCCO and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated October 7, 1997 LOAN NUMBER 4231-MOR GUARANTEE AGREEMENT AGREEMENT, dated October 7, 1997, between the KINGDOM OF MOROCCO (the Guarantor) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank). WHEREAS (A) the Guarantor and the Communal Infrastructure Fund (the Borrower), having been satisfied as to the feasibility and priority of the Project described in Schedule 2 to the Loan Agreement, have requested the Bank to assist in the financing of the Project; and (B) by the Loan Agreement of even date herewith between the Bank and the Borrower, the Bank has agreed to extend to the Borrower a loan: (a) in an amount equal to thirty five million Dollars ($35,000,000); and (b) in an amount equal to two hundred and five million French Francs (FRF205,000,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that the Guarantor agrees to guarantee the obligations of the Borrower in respect of such loan and to undertake such other obligations as provided in this Agreement; and WHEREAS the Guarantor, in consideration of the Bank