Cameroon - Highway Project : Credit 0180 - Credit Agreement - 2 - Conformed

CONFORMED COPY CREDIT NUMBER 180 CM (Amendment) Agreement Amending Development Credit Agreement (Highway Project) BETWEEN UNITED REPUBLIC OF CAMEROON AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JULY 30, 1975 CONFORMED COPY CREDIT NUMBER 180 CM (Amendment) Agreement Amending Development Credit Agreement (Highway Project) BETWEEN UNITED REPUBLIC OF CAMEROON AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JULY 30, 1975 AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated July 30, 1975 between UNITED REPUBLIC OF CAMEROON (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinaftcr called the Association). WHEREAS (A) By a development credit agreement (Highway Project) dated March 27, 1970 between the Borrower and the Association (hereinafter called the 1970 Credit Agreement), the Association made a development credit to the Borrower in an amount in various currencies equivalent to seven million dollars ($7,000,000) on the terms and conditions set forth in the 1970 Credit Agreement; (B) By a loan agreement (Highway Project) dated March 27, 1970 between the Borrower and the Bank (hereinafter called the 1970 Loan Agreement), the Bank made a loan to the Borrower in an amount in various currencies equivalent to twelve million dollars ($12,000,000) on the terms and conditions set forth in the 1970 Loan Agreement; (C) Supplemental financing is now necessary to cover the estimated increases in the cost of carrying out the Project described in Schedule I to the 1970 Credit Agreement; and (D) The Association has agreed to amend the 1970 Credit Agreement by adding the equivalent of one million dollars ($1,000,000)'to the amount of the said credit, upon the terms and conditions hereinafter set forth; NOW THEREFORE, it is hereby agreed as follows: ARTICLE I Section 1.01. Section 2.01 of the 1970 Credit Agreement is hereby amended to read as follows: "Section 2.01. The Association agrees to make available to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, a development credit in an amount in various currencies equivalent to eight million dollars ($8,000,000)." 4 Section 1.02. The Allocation of the Proceeds of the Credit and of the Loan set forth in Schedule 2 to the 1970 Credit Agreement is amended to read as set forth in Schedule I to this Agreement. Section 1.03. The 1970 Credit Agreement is amended by substituting the words "United Republic of Cameroon" for the words "Federal Republic of Cameroon" wherever the latter appear in the 1970 Credit Agreeimi,nt. Section 1.04. All the provisions of the 1970 Credit Agreement, as amended by this Agreement, shall remain in full force and effect. ARTICLE II Section 2.01. This Agreement shall come into force and effect on the date upon which: (a) all conditions precedent to the effectiveness of the Agreement Amending the 1970 Loan Agreement shall have been fulfilled, subject only to the effectiveness of this Agreement, and (b) the Association dispatches to the Borrower notice of its acceptance of: (i) evidence that the execution and delivery of this Agreement on behalf of the Borrower have been duly authorized or ratified by all necessary governmental action; and (ii) an opinion or opinions satisfactory to the Association of counsel acceptable to the Association showing that this Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and that the 1970 Credit Agreement as amended by this Agreement constitutes a valid and binding obligation of the Borrower in accordance with its terms as so amended. Section 2.02. If this Agreement shall not have come into force and effect by October 30, 1975, this Agreement and all obligations of the parties hereunder shall terminate, unless the Association, after consideration of the reasons for the delay, establishes a later date for the purposes of this Section. The Association [ 5 shall promptly notify the Borrower of such date. If this Agreement shall terminate under the provisions of this Section, the 1970 Credit Agreement shall continue in full force and effect, as if this Agreement had not been executed. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names and delivered in the District of Columbia, United States of America, as of the day and year first above written. UNITED REPUBLIC OF CAMEROON By /s / F. X. Tchoungui Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ R. Chaufournier Regional Vice President Western Africa 6 SCHEDULE 1 Allocation of the Proceeds of the Credit and of the Loan First Tranche Second Tranche of the Credit of the Credit and the Loan and the Loan (Maximum A mounts (Maximum A mounts Expressed in Dollar Expressed in Dollar Combined Category Equivalent) Equivalent) Total I. Road improvement - Part A(1) of the Project 14,300,000 1,900,000 16,200,000 II. Engineering super- vision - Part A(2) of the Project 950,000 100,000 1,050,000 III. Feasibility studies and detailed engi- neering Part B of the Project 950,000 - 950,000 IV. (a) Refunding of the First Development Credit; (b) Preparation of bidding documents and evaluation of bids - Part C of the Project 550,000 - 550,000 V. Interest and other charges on the Loan accrued on or before December 1, 1974 865,000 - 865,000 VI. Unallocated 1,385,000 - 1,385,000 TOTAL 19,000,000 2,000,000 21,000,000 7 Allocation of the Proceeds of the Credit 1. The amount of the Credit shall be withdrawn from the Credit Account as provided under Article 1I of this Agreement, and shall be applied to expenditures under any of the Categories I, II, III and IV, until the total of such withdrawals, and of commitments, if any, in respect of such expenditures, shall have reached the equivalent of $8,000,000. Allocation of the Proceeds of the Loan 2. The amount of the Loan shall be withdrawn from the Loan Account as provided under Article II of the Loan Agreement, and shall be applied to expenditures under any of the Categories I, II, III, IV(b) and V incurred, in the case of Categories I, II, III and IV(b) after the amount of the Credit shall have been exhausted, except that withdrawals from the Loan Account may be made prior to such exhaustion in respect of commitments referred to in Section 2.04(c) of the Loan Agreement and in accordance with the provisions set forth in said Section. Reallocation upon Change in Cost Estimates 3. If the estimate of the expenditures under any of the Categories I through V shall decrease, the amount then allocated to, and no longer required for, such Category will be reallocated to Category VI by the Association and the Bank, or by the Bank, as the case may be. 4. If the estimate of the expenditures under any of the Categories I through V shall increase, an amount equal, in the case of any of the Categories IV and V, to the portion, if any, of such increase to be financed out of the proceeds of the Credit and uf the Loan, and, in the case of any of the Categories I, II and III, an amount equal to 74% of such increase, will be allocated at the request of the Borrower, by the Association and the Bank, or by the Bank, as the case may be, to such Category from Category VI, subject, however, to the requirements for contingencies, as determined by the Association and the Bank, in respect of expenditures under any of the other Categories.