Conformed Copy - C3673 - Renewable Energy for Rural Economic Development Project - GEF Project Agreement

Page 1 CONFORMED COPY GEF TRUST FUND GRANT NUMBER TF051248 CE GEF Project Agreement (Renewable Energy for Rural Economic Development Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT acting as an Implementing Agency of the Global Environment Facility and DFCC BANK Dated July 12, 2002 GEF TRUST FUND GRANT NUMBER TF051248 CE PROJECT AGREEMENT AGREEMENT dated July 12, 2002, between the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank), acting as an implementing agency of the Global Environment Facility (GEF) in respect of grant funds provided to the GEF Trust Fund by certain members of the Bank as participants of the GEF, and DFCC BANK. Page 2 WHEREAS (A) by the Development Credit Agreement of even date herewith (the Development Credit Agreement) between Democratic Socialist Republic of Sri Lanka (in its capacity as a party to the Development Credit Agreement, the Borrower) and the International Development Association (the Association), the Association has agreed to make available to the Borrower an amount in various currencies equivalent to fifty-nine million three hundred thousand Special Drawing Rights (SDR 59,300,000) to assist financing of the Project described in Schedule 2 to the Development Credit Agreement, on the terms and conditions set forth in the Development Credit Agreement, but only on conditions that DFCC Bank agree to undertake such obligations toward the Association as are set forth in the IDA Project Agreement; (B) by the Global Environment Facility Trust Fund Grant Agreement (the Grant Agreement) of even date herewith between the Bank and the Democratic Socialist Republic of Sri Lanka (in its capacity as a party to the Grant Agreement, the Recipient), the Bank has agreed to make a grant (the GEF Trust Fund Grant) to the Recipient in amount equal to six million four hundred thousand Special Drawing Rights (SDR 6,400,000) to assist in financing the Project on the terms and conditions set forth in the Grant Agreement, but only on conditions that DFCC Bank agree to undertake such obligations toward the Bank as are set forth in this Agreement; and WHEREAS DFCC Bank, in consideration of the Bank