Conformed Copy - C3111 - Mining Sector Reform Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3111-MAG Development Credit Agreement (Mining Sector Reform Project) between REPUBLIC OF MADAGASCAR and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated July 30, 1998 CREDIT NUMBER 3111-MAG DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated July 30, 1998, between the REPUBLIC OF MADAGASCAR (the Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS: (A) the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; (B) the Borrower has issued a mining sector policy statement, dated May 29, 1998, describing a program of actions, objectives and policies designed to promote sustainable development of its mining sector (the Program), and declaring the Borrower's commitment to the execution of the Program; (C) the Borrower intends to contract from French Republic (France) a loan (the French Loan) and/or a grant (the French Grant) in an aggregate amount equivalent to $2,400,000 to assist in financing part of the Project on the terms and conditions set forth in a loan agreement (the French Loan Agreement) and/or a grant agreement (the French Grant Agreement), as the case may be, to be entered into between the Borrower and France; and Page 2 WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms and conditions set forth in this Agreement; 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, as amended through December 2, 1997 (the General Conditions), constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a)