India - Mysore Agricultural Credit Project : Credit 0278 - Mysore Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 278 IN Mysore Agreement (Mysore Agricultural Credit Project) BETWEEN THE STATE OF MYSORE AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 7, 1972 CONFORMED COPY CREDIT NUMBER 278 IN Mysore Agreement (Mysore Agricultural Credit Project) BETWEEN THE STATE OF MYSORE AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 7, 1972 I.ab MYSORE AGREEMENT AGREEMENT, dated January 7, 1972, between THE STATE OF MYSORE (hereinafter called Mysore) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) by a development credit agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Association (hereinafter referred to as the Development Credit Agreement), the Association has agreed to make available to the Borrower an amount in various currencies equivalent to forty million dollars ($40,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition inter alia that Mysore agrees to undertake such obligations toward the Association as hereinafter set forth; and (B) by an agreement of even date herewith between the Association, of the one part, and Agricultural Refinance Corporation, Mysore State Cooperative Land Development Bank Limited, and Mysore State Agro-Industries Corporation Limited, of the other part, Agricultural Refinance Corporation, Mysore State Cooperative Land Development Bank Limited, and Mysore State Agro-Industries Corporation Limited, respectively, have agreed to undertake certain obligations in respect of the carrying out of the Pro.ject; and WHEREAS Mysore, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. 4 ARTICLE II Particular Covenants Section 2.01. (a) Mysore shall cause that portion which is applicable to Mysore of the Project described in Schedule 2 to the Development Credit Agreement to be carried out with due diligence and efficiency and in conformity with sound administrative, financial and engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Mysore shall take all such steps as shall be necessary on its part to ensure that the implements described in Schedule 4 to the Development Credit Agreement are available in such quantities and as and when required, to ensure the carrying out of the Project described in Schedule 2 to the Development Credit Agreement with due diligence and efficiency. Section 2.02. For the primary purpose of assisting SGC in setting up and carrying out detailed geologic and hydrologic analyses, Mysore shall by the Effective Date take such steps as shall be necessary on its part to enable SGC to obtain for a two-year period the services of qualified and experienced consultants acceptable to the Association who shall be internationally recruited upon terms and conditions satisfactory to the Association. Section 2.03. Mysore shall enable the Association's representatives to inspect the Project and any relevant records and documents; and shall furnish or cause to be furnished to the Association all such information as the Association shall reasonably request concerning the Project, such services, and the operations and financial condition with respect to the Project of the agency or agencies responsible for the carrying out of the Project or any part thereof. Section 2.04. Mysore and the Association shall cooperate fully to assure that the purposes of the Credit will be accomplished. To that end, Mysore and the Association shall from time to time, at the request of either party, exchange views through their representatives with regard to the performance of their respective obligations under this Agreement, the Project, and other matters relating to the purpose of the Credit. Section 2.05. Mysore shall take all action which shall be necessary on its part to enable ARC, LDB and MAIC to perform their obligations under (i) the Project Agreement, and (ii) the Subsidiary Loan Agreement in the case of ARC, and shall not take or permit any of its agencies to take any action which would 5 prevent or interfere with the performance of any such obligations of ARC, LDB or MAIC or of Participating Banks associated therewith. Section 2.06. Mysore and the Association shall promptly inform each other of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit, or the performance by either of them of its obligations under this Agreement. Section 2.07. Mysore shall take all action which shall be necessary on its part for the implementation of the operating policies and procedures set out in Schedule I to the Project Agreement. Section 2.08. (a) Mysore shall cause the Mysore State Electricity Board to act expeditiously in, and give priority to, the connection of the electricity to wells included in the Project of Beneficiaries required to deposit Rs3,000 per well with said Board for the purpose of obtaining such priority. (b) Mysore, together with its agencies, shall cause cooperative societies to be formed for the operation of lift irrigation schemes in Mysore. (c) Mysore in consultation with ARC shall arrange for the payment by Beneficiaries of a water charge sufficient to produce revenues adequate to meet the cost of lift irrigation schemes. Section 2.09. Mysore shall through its State Cooperative Department take measures adequate to ensure (i) that the Primary Banks maintain an accounting system which conforms to good accounting practices, (ii) that the accounts of LDB and the Primary Banks are audited efficiently and in a timely manner by independent auditors acceptable to the Association and (iii) that the financial statement of the Primary Banks shall be available within 4 months after the close of the respective fiscal year. ARTICLE III Effective Date; Termination; Cancellation and Suspension Section 3.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. If the Development Credit Agreement shall terminate pursuant to Section 10.04 of the General Conditions, the Association shall promptly notify Mysore of this event and, upon the giving of such notice, this Agreement and all obligations of the parties hereunder shall forthwith terminate. 6 Section 3.02. This Agreement shall terminate and all obligations of Mysore and the Association hereunder shall cease and determine on the date on which the Project Agreement terminates in accordance with its terms. Section 3.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any partial cancellation or suspension under the Development Credit Agreement. ARTICLE IV Miscellaneous Provisions Section 4.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this 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, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's 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 Mysore: The Development Commissioner and Special Secretary to Government for Agricultural Production and Planning Vidhana Soudha Bangalore Cable address: Vikas Bangalore For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America 7 Cable address: Indevas Washington, D.C. Section 4.02. Any action required or permitted to be taken, and anly documents required or permitted to be executed, under this Agreement on behalf of Mysore may be taken or executed by the Secretary to the Government of Mysore or such other person or persons as Mysore shall designate in writing. Section 4.03. Mysore shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of the person or persons who will, on behalf of Mysore, take any action or execute any documents required or permitted to be taken or executed by Mysore pursuant to any of the provisions of this Agreement. Section 4.04. This Agreement may be executed in several counterparts, each of which shall be an original and all collectively but one instrument. 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. THE STATE OF MYSORE By /s/ L. K. Jha Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s / J. Burke Knapp Vice President