India - Second Bombay Water Supply And Sewerage Project : Credit 0842 - Maharashtra Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 842 IN Maharashtra Agreement (Second Bombay Water Supply and Sewerage Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF MAHARASHTRA Dated November 13, 1978 CREDIT NUMBER 842 IN MAHARASHTRA AGREEMENT AGREEMENT, dated November 13, 1978, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and THE STATE OF MAHARASHTRA, acting by its Governor (hereinafter called Maharashtra). WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to one hundred and ninety-six million dollars ($196,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition, inter alia, that Maharashtra agrees to undertake such obligations toward the Association as are hereinafter set forth; WHEREAS by an agreement of even date between the Association and the Municipal Corporation of Greater Bombay (hereinafter called BMC), BMC has agreed to undertake certain obligations in respect of the carrying out of the Project; and WHEREAS Maharashtra, 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. ARTICLE II Particular Covenants Section 2.01. (a) Maharashtra and the Association shall cooperate fully to assure that the purpose of the Credit will be accomplished. To that end, Maharashtra and the Association shall from time to time, at the request of either party, exchange views - 2 - through their representatives with regard to the performance of their respective obligations under this Agreement, the performance by BMC of its obligations under the Project Agreement, the manage- ment, structure, administration, operations, resources and expen- ditures of WSSD and other matters relating to the purpose of the Credit. (b) Maharashtra shall take all action which shall be neces- sary on its part to enable BMC to perform its obligations under the Project Agreement including the provision of funds, facili- ties, services and other resources required for this purpose and shall not take or permit to be taken any action which would prevent or interfere with the performance of any such obligation of BMC. Section 2.02. Maharashtra shall relend the proceeds of the Credit made available by the Borrower, to BMC under appropriate arrangements to be entered into between Maharashtra and BMC. Except as the Association shall otherwise agree, such arrangements shall include the following terms: (i) proceeds to be made available for a term of 25 years from the date of the first advance by Maharashtra to BMC, including a grace period of four years; (ii) interest to be charged at the rate of 6-3/4% per annum, payable semiannually or annually, on amounts withdrawn and outstanding; and (iii) proceeds to be made available promptly as required to enable BMC to meet expenditures required for the Project. Section 2.03. Maharashtra shall, under suitable financing arrangements with BMC, ensure the availability of sufficient funds on the same terms and conditions as those enumerated in Section 2.02 to enable BMC to complete the Project. Section 2.04. Maharashtra shall ensure the construction of the Bhatsai Dam, including the provision of sufficient funds, according to a schedule that will make available water from the Bhatsai reservoir required for the Project. Section 2.05. Maharashtra shall take all such action as shall be necessary to acquire as and when needed all such land -3- and rights in respect of land as shall be required for the carry- ing out of the Project and, if requested by the Association, shall furnish to the Association, promptly after such acquisition, evi- dence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. Section 2.06. Maharashtra shall under appropriate arrange- ments cause the dams and related structures which impound water for use by BMC, to be annually inspected in accordance with sound engineering practice in order to determine whether there are any deficiencies in the condition of such structures, or in the quality and adequacy of maintenance or methods of operations of the same, which may endanger their safety. 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. Section 3.02. (a) This Agreement and all obligations of the Association and of Maharashtra hereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or (ii) a date 25 years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accor- dance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify Maharashtra of this event. Section 3.03. All the provisions of this Agreement shall con- tinue in full force and effect notwithstanding any 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 des- ignated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) For Maharashtra: The Chief Secretary to the Government of Maharashtra Sachivalaya, Bombay India Cable address: RESTIS Bombay Section 4.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of Maharashtra may be taken or executed by a Secretary to the Government of Maharashtra or such other person or persons as Maharashtra shall designate in writing, and Maharashtra shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 4.03. This Agreement may be executed in several coun- terparts, each of which shall be an original, and all collectively but one instrument. - 5- IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. INTERNATIONAL DEVELOPMENT ASSOCIATION By Is/ W. David Hopper Regional Vice President South Asia STATE OF MAHARASHTRA By Is! N.A. Palkhivala Authorized Representative