Conformed Copy - C3049 - Education Sector Adjustment Operation - Development Grant Agreement

Page 1 CONFORMED COPY GRANT NUMBER TF020167 UG Development Grant Agreement (Education Sector Adjustment Operation) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated April 15, 1998 GRANT NUMBER TF020167 UG DEVELOPMENT GRANT AGREEMENT AGREEMENT, dated April 15, 1998, between THE REPUBLIC OF UGANDA (the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Board of Executive Directors of the Association approved on April 22, 1997,the recommendation for assistance to be provided to the Recipient under the Heavily Indebted Poor Countries Debt Initiative in respect of debt owed by the Recipient to the Association; (B) as part of such assistance, the Association was authorized to make to the Recipient the development grant set forth in Section 2.01 of this Agreement (the Grant); (C) the Association has received a letter (the Letter of Development Policy) dated February 12, 1998, from the Recipient describing a program of actions, objectives and policies designed to achieve structural adjustment of the Recipient's education sector (hereinafter called the Program), declaring the Recipient's commitment to the execution of the Program, and requesting assistance from the Association in support of the Program during the execution thereof; (D) the Recipient has also requested the Association to provide additional assistance in support of the Program, and by an agreement of even date herewith between the Recipient and the Association (the Development Credit Agreement), the Association is agreeing to provide a development credit to the Recipient in an aggregate principal amount equivalent to fifty-nine million two hundred thousand Page 2 Special Drawing Rights (SDR 59,200,000) (the Credit); (E) the Recipient and the Association intend, to the extent practicable, that the proceeds of the Grant be disbursed before disbursements of the proceeds of the Credit are made; and (F) on the basis, inter alia, of the foregoing, the Association has decided in support of the Program to provide such assistance to the Recipient by making the Grant in one tranche as hereinafter provided; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. (a) The following provisions of the