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

Page 1 CONFORMED COPY CREDIT NUMBER 3049 UG Development Credit Agreement (Education Sector Adjustment Operation) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated April 15, 1998 CREDIT NUMBER 3049 UG DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated April 15, 1998, between THE REPUBLIC OF UGANDA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Association has received a letter (the Letter of Development Policy) dated February 12, 1998, from the Borrower describing a program of actions, objectives and policies designed to achieve structural adjustment of the Borrower's education sector (hereinafter called the Program), declaring the Borrower's commitment to the execution of the Program, and requesting assistance from the Association in support of the Program during the execution thereof; (B) the Board of Executive Directors of the Association approved on April 22, 1997, the recommendation for assistance to be provided to the Borrower under the Heavily Indebted Poor Countries Debt Initiative in respect of debt owed by the Borrower to the Association; (C) such assistance includes additional financing in support of the Program, and, by an agreement of even date herewith between the Borrower and the Association (the Development Grant Agreement), the Association is agreeing to provide a development grant to the Borrower in an amount equivalent to fifty-five million five hundred thousand Special Drawing Rights (SDR55,500,000) (the Grant); (D) the Borrower and the Association intend, to the extent practicable, that the proceeds of the Grant be disbursed before disbursements of the proceeds of the credit provided for in Section 2.01 of this Agreement (the Credit) are made; and Page 2 (E) on the basis, inter alia, of the foregoing, the Association has decided in support of the Program to provide such assistance to the Borrower by making the Credit in two tranches as hereinafter provided; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The