Conformed Copy - C3731 - Second Health Sector Program Support Project - Development Financing Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3731GH GRANT NUMBER H0190GH Development Financing Agreement (Second Health Sector Program Support Project) between REPUBLIC OF GHANA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated April 16, 2003 Page 2 CONFORMED COPY CREDIT NUMBER 3731GH GRANT NUMBER H0190GH DEVELOPMENT FINANCING AGREEMENT AGREEMENT, dated April 16, 2003, between REPUBLIC OF GHANA (the Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; (B) the Borrower and the Association intend, to the extent practicable, that the proceeds of the Grant be disbursed on account of expenditures in respect of the Project before disbursements of the proceeds of the Credit are made; (C) the Association has received the following documents: (i) a Medium- Term Health Strategy, dated September 1995; and (ii) the five-year Program of Work (POW), dated January 2002, from the Borrower, part of which describes a program of actions, objectives and policies designed to implement activities under the Borrower's Medium-Term Health Strategy for the Fiscal Years 2002 to 2006 (the two documents shall collectively be referred to as the Program) and declaring the Borrower's commitment to the execution of the Program; (D) the Borrower intends to obtain from various Development Partners (as hereinafter defined) grants and loans to assist in financing the Program; (E) the Borrower, the Association and the Co-operating Partners (as hereinafter defined) have entered into a Memorandum of Understanding providing for common procedures on procurement, disbursement, cooperation and exchange of information; and WHEREAS the Association has agreed, on the basis, inter alia , of the foregoing, to extend the financing to the Borrower upon the Credit and Grant terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: Page 3 - 2 - ARTICLE I General Conditions; Definitions Section 1.01. The