Bolivia - Interim Second Beni Livestock Development Project : Credit 0171 - Project Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 171 BO Project Agreement (Interim Second Beni Livestock Development Project) BETWEEN * INTERNATIONAL DEVELOPMENT ASSOCIATION AND BANCO AGRICOLA DE BOLIVIA DATED JANUARY 13, 1970 CONFORMED COPY CREDIT NUMBER 171 BO Project Agreement (Interim Second Beni Livestock Development Project) BETWEEN INTERNATIONAL DEVELOPMENT ASSOCIATION AND BANCO AGRICOLA DE BOLIVIA DATED JANUARY 13, 1970 AGREEMENT, dated January 13, 1970, between INTER- NATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and BANCO AGRICOLA DE BOLIvIA (hereinafter called BAB). WHEREAS, by a Development Credit Agreement of even date herewith (hereinafter called the Development Credit Agreement) between the Republic of Bolivia (hereinafter called the Borrower) and the Association, the Association has agreed to further assist in the financing of a livestock development program of the Borrower, for which program a credit was earlier made available pursuant to a develop- ment credit agreement between the Borrower and the As- sociation dated May 26, 1967 (hereinafter called the First Livestock Credit) on the terms and conditions set forth herein and in certain other agreements signed in conjunc- tion therewith, by making available to the Borrower an amount in various currencies equivalent to one million four hundred thousand dollars ($1,400,000), on the terms and conditions set forth in the Development Credit Agree- ment, but only on condition inter alia that BAB agree to undertake certain obligations to the Association as herein- after in this Project Agreement set forth; and WHEREAS BAB, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations herein- after set forth; Now THEREFORE the parties hereto hereby agree as f ollows: ARTICLE I Definitions SECTION 1.01. Wherever used in this Project Agreement, unless the context shall otherwise require, the several terms 4 defined in the Development Credit Agreement and in the General Conditions (as so defined) shall have the respec- tive meanings therein set forth. ARTICLE II Particular Covenants of BAB SECTION 2.01. (a) BAB shall carry out the Project de- scribed in Schedule 2 to the Development Credit Agree- ment and conduct its operations with due diligence and efficiency and in conformity with sound agricultural, admin- istrative, economic and financial practices, under the super- vision of experienced and competent management. (b) The operating policies and procedures for the carry- ing out of the Project shall be as agreed from time to time between the Association, the Borrower and BAB pursuant to Section 4.01(c) of the First Livestock Credit, and BAB shall ensure at all times that said operating policies and procedures are duly carried out, (c) BAB shall maintain records adequate to identify the goods financed out of the proceeds of the Credit, to dis- close the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect in accordance with consistently maintained sound account- ing practices the operations and financial condition of BAB; shall enable the Association's representatives to inspect the Project, the goods and any relevant records and documents; and shall furnish to the Association all such information as the Association shall reasonably re- quest concerning the expenditure of the proceeds of the Credit, the Project, the Subsidiary Loan Agreement, the goods, and the administration, operation and financial con- dition of BAB. SECTION 2.02. BAB shall enter with the Borrower into the Subsidiary Loan Agreement, and shall exercise its 5 rights thereunder in such manner as to protect the interests of the Borrower, the Association and BAB. SECTION 2.03. (a) The Association and BAB shall co- operate fully to assure that the purposos of the Credit will be accomplished. To that end, each of them shall furnish to the other all such information as it shall reasonably request with regard to the general status of the Project. (b) The Association and BAB shall from time to time exchange views through their representatives with regard to matters relating to the purposes of the Credit. BAB shall promptly inform the Association of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit or the per- formance by BAB of its obligations under this Project Agreement and the Subsidiary Loan Agreement. SECTION 2.04. Except as the Association shall otherwise agree, BAB shall cause all goods financed out of the pro- ceeds of the Credit to be used in the territories of the Borrower exclusively in the carrying out of the Project. SECTION 2.05. BAB shall (i) continue to carry out an analysis of the profitability of the several types of its lend- ing operations and maintain accounting procedures, satis- factory to the Association, to reflect adequately the results of such analysis; and (ii) establish separate accounts in respect of the Project. BAB shall have such separate ac- counts audited annually by an accountant acceptable to the Association and shall promptly after the preparation of the audit and not later than four months after the close of BAB 's financial year transmit to the Association certified copies of such audited separate accounts and a signed copy of the accountant's report. SECTION 2.06. BAB shall at all times maintain its exist- ence and right to carry on its operations and shall take 6 all steps necessary to acquire, maintain and renew all rights, powers, privileges and franchises which are neces- sary or useful in the conduct of its business. SECTION 2.07. Except as the Association shall otherwise agree, BAB shall not take or concur in any action which would have the effect of amending, assigning, abrogating or waiving any provision of the Subsidiary Loan Agreement. SECTION 2.08. BAB shall maintain a livestock project division with an adequate number of qualified staff under the direction of a qualified and experienced livestock ex- pert (hereinafter called the Project Director) acceptable to the Association, upon terms and conditions satisfactory to the Association and BAB. SECTION 2.09. BAB shall maintain a project loan com- mittee whose composition, functions and responsibilities shall be satisfactory to the Association. SECTION 2.10. In addition to long-term development loans to ranchers under the Project, BAB shall provide by means of short-term loans, the working capital necessary to enable said ranchers to achieve the benefits expected to result from the Project. SECTION 2.11. BAB shall use the proceeds of payments received by it on account of loans granted under the Project, which are not required by BAB to service the loan from the Borrower under the Subsidiary Loan Agree- ment or to meet its expenses arising from the Project, for the purpose of financing further ranch development in the Project Area. SECTION 2.12. Except as the Association shall otherwise agree, BAB shall not prior to the Closing Date incur any debt, other than debt under the Subsidiary Loan Agree- ment, for the purpose of providing long-term loans for investment in ranch development in the Project Area. 7 ARTICLE III Effective Date; Termination SECTION 3.01. This Project Agreement shall enter into force and effect on the Effective Date. If the Development Credit Agreement shall terminate pursuant to Section 10.04 of the General Conditions, the Association shall promptly notify BAB of this event and, upon the giving of such notice, this Project Agreement and all obligations of the parties hereunder shall forthwith terminate. SECTION 3.02. This Project Agreement shall terminate and all obligations of the Association and BAB hereunder shall cease and determine on the date on which the Devel- opment Credit Agreement shall terminate or on the date when all principal withdrawn by BAB from the Project Revolving Fund prior to the Closing Date and interest thereon shall have been paid by BAB to the Borrower, whichever shall be the earlier. ARTICLE IV Miscellaneous Provisions SECTIoN 4.01. No delay in exercising, or omission to exercise, any right, power, or remedy accruing to either party under this Project Agreement upon any default shall impair any such right, power or remedy or be construed to be a waiver thereof or an acquiescence in such default; nor shall the action of such party in respect of any default or any acquiescence in any default, affect or impair any right, power or remedy of such party in respect of any other or subsequent default. SECTION 4.02. Any notice or request required or per- mitted to be given or made under this Project Agreement and any agreement between the parties contemplated by this Project Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, 8 cablegram or radiogram to the party to which it is required or permitted to be given or made at its address hereinafter specified, or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Indevas Washington, D.C. For BAB: Banco Agricola do Bolivia Casilla 1179 La Paz, Bolivia Cable address: Banagrico La Paz, Bolivia SECTION 4.03. Any action required or permitted to be taken, and any documents required or permitted to be exe- cuted, under this Project Agreement on behalf of BAB may be taken or executed by the Presidente and the Gereite General of BAB or such other person or persons as they shall designate in writing. SECTION 4.04. This Project Agreement may be executed in several counterparts, each of which shall be an original and all collectively but one instrument. 9 IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Project Agreement to be signed in their respec- tive names and delivered in the District of Columbia, United States of America, as of the day and year first above written. INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ J. BURKE KNAPP Vice President BANCO AGRICOLA DE BOLIVIA By /S/ COL. JULIO SANJINES-OYTIA Authorized Representative