Loan Agreement L7238-LC - Conformed

Page 1 CONFORMED COPY LOAN NUMBER 7238-SLU Loan Agreement (Second Disaster Management Project) between SAINT LUCIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated July 29, 2004 Page 2 LOAN NUMBER 7238-SLU LOAN AGREEMENT AGREEMENT, dated July 29, 2004 between SAINT LUCIA (the Borrower) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank). WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and priority of the project described in Schedule 2 to this Agreement (the Project), has requested the Bank to assist in financing the Project; (B) the Borrower has also requested the International Development Association (the Association) to provide additional financial assistance towards financing the Project and, by the Development Credit Agreement of the same date herewith between the Borrower and the Association (the Development Credit Agreement), the Association is agreeing to provide such assistance in an aggregate principal amount equivalent to two million six hundred thousand Special Drawing Rights (SDR 2,600,000) (the Credit); and (C) the Borrower and the Bank intend, to the extent practicable, that the proceeds of the Credit be disbursed on account of expenditures for the Project before disbursements of the proceeds of the Loan provided for in this Agreement (the Loan) are made; and WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to extend the Loan to the Borrower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The