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Page 1 IDA GRANT NUMBER H087 MAG Development Grant Agreement (Third Environment Program Support Project) between MADAGASCAR and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated May 21, 2004 Page 2 IDA GRANT NUMBER H087 MAG DEVELOPMENT GRANT AGREEMENT AGREEMENT, dated May 21, 2004, between the Republic of Madagascar (the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Recipient, 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 Project supports the third phase of the Recipient