India - Uttar Pradesh Social Forestry : Credit 0925 - Credit Agreement - Conformed

@0 CONFORMED COPY CREDIT NUMBER 925 IN Development Credit Agreement (Uttar Pradesh Social Forestry Project) between INDIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 21, 1979 (r : CREDIT NUMBER 925 IN DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 21, 1979, between INDIA, acting by its President (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) the Project will be carried out by the State of Uttar Pradesh, acting by its Governor (hereinafter called Uttar Pradesh) with the- Borrower's assistance and, as part of such assistance, the Borrower will make available to Uttar Pradesh the proceeds of the Credit as hereinafter provided; and (C) the Association has agreed, on the basis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms *and conditions hereinafter set forth and in the Project Agreement of even date herewith between the Association and Uttar Pradesh; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association,. dated March 15, 1974, with the same force and effect as if they were fully set forth herein, (said General Conditions Applicable to Development Credit Agreements of the "Association being hereinafter called the General Conditions.) Section 1.02, Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have and the following additional terms have the following meanings: (a) "Uttar Pradesh" means the State of Uttar Pradesh, a State of India, or any successor thereof; I C -2- (b) "Project Agreement" means the agreement between the Association and Uttar Pradesh of even date herewith, as the same may be amended from time to time, and such term includes all schedules to the Project Agreement and all agreements supple- mental to the Project Agreement; (c) "SFD" means the Social Forestry Directorate within the Forest Department of Uttar Pradesh; and (d) "Project Area" means the Gangetic Plains of Uttar Pradesh. . ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equiva- lent to twenty-three million dollars ($23,000,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Associa- tion, for expenditures made (or, if the Association shall so agree, to be made)'in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, contracts for the purchase of goods and civil works to be financed out of the proceeds of the Credit shall be procured in accordance with the provisions set forth or referred to in the Schedule to the Project Agreement. Section 2.04. The Closing Date shall be December 31, 1984 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. IWO4 N Section 2.06. Service charges shall be payable semiannually on February 15 and August 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each Febru- ary 15 and August 15 commenping August 15, 1989 and ending Febru- ary 15, 2029, each installment to and including the installment payable on February 15, 1999, to be one-half of one per cent (1/2 of'1%) of such principal.amount, and each installment there- after to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of.the Project Section 3.01. (a) Without any-limitation or restriction upon .any of its other obligations under this Agreement, the Borrower shall cause Uttar Pradesh to perform in accordance with the provisions of the Project Agreement all the obligations thereiil set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable Uttar Pradesh to perform 6uch obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make the proceeds of the Credit available to Uttar Pradesh in accordance with the Borrower's standard arrangements for development assistance to the States of India. ARTICLE IV Remedies of the Association Section 4.01. For the purposes of Section 6.02 of the General Conditions the following additional events are specified pursuant to paragraph (h) thereof: (a) Uttar Pradesh shall have failed to perform any of its obligations under the Project Agreement; and -4- (b) an extraordinary situation shall have arisen which shall make it improbable that Uttar Pradesh will be able to perform its obligations under the Project Agreement. Section 4.02. For the purposes of Section 7.01 of the General, Conditions, the following additional event is specified pursuant to paragraph (d) thereof, namely, that the event specified in paragraph (a) of Section 4.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Association to the Borrower and Uttar Pradesh. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of this Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) that the execution of the Project Agreement on behalf of Uttar Pradesh has been duly authorized or ratified by all neces- sary governmental action; and (b) that the Association has been furnished by Uttar Pradesh with a model contract, satisfactory to the Association, pursuant to Section 2.09 ,of the Project Agreement. Section 5.02. The following is specified as an additional matter, within the meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion or opinions to be furnished to the Association, namely, that the Project Agreement has been duly autorized or ratified by Uttar Pradesh, and is leg4ly binding upon Uttar Pradesh in accordance with its terms. Section 5.03. The date September 20, 1979, is hereby speci- fied for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. Any Secretary, Additional Secretary, Joint Sec- retary, Director or Deputy Secretary in the Ministry of Finance, Department of Economic Affairs of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. -5 - Section 6.02. The following addresses. are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: The Secretary to the ,Government of India Ministry of Finance Department of Economic Affairs New Delhi, India Cable address,", ECOFAIRS New Delhi 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) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement 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. INDIA By /s/ N. A. Palkhivala Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ David Hopper Regional Vice President South Asia -6- SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of 1he amount of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Credit Allocated % of (Expressed in Expenditures Category Dollar EIuivalent) to be Financed (1) Civil Works 1,250,000 50% -(2) Equipment and 1,950,000 vehicles (a) directly imported 100% of foreign expenditures (b) locally manufac- tured 100% of local expenditures (ex-factory) (c) locally procured 70% (3) Direct Planting 11,000,000 50% Expehditures (4) Staff Salaries 5,650,000 50% (5) Training 1,150,000 100% (6) Unallocated 2,000,000 TOTAL 23,000,000 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than the Borrower and for 7 1- goods or services supplied from the territory of any country other than the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower and for goods or services supplied from the territory of the Borrower. 3. The disbur,ement percentages have been calculated in compli- ance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payment for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of payments made for expendi- tures prior to the date of this Agreement, except that with- drawals, in an aggregate amount not exceeding the equivalent of $500,000, in respect of Categories (2) (3) and (5) on account of payments made for such expenditures before that date but after January 1, 1979. 5. Notwithstanding the allocation of an amount of' the Credit or the disbursement percentages set forth in the table in para- graph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet such estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not' needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expen- ditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. )-8- 6. If the Association shall have reasonably determined that the procurement of any item in any Category is intonsistent with the procedures set forth 426 referred to in this Agreement- no expenditures for such item shall be financed out of the pro- ceeds. of the Credit and the Association may, without in any way restricting or limiting any otherright, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the Associ- ation's reasonable opinion, represents the amount of such expen ditures which--would otherwise have been eligible for financing out of the proceeds of the Credit. i - 1 na s.I