Ghana - Second Reconstruction Imports Credit Project : Credit 1573 - Development Grant Agreement - Conformed

OFFI CIAL CREDIT NUMBER 1573-5 CH Development Grant Agreement (Second Reconstruction Imports Credit Project) between REPUBLIC OF GHANA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator on behalf of the MINISTER OF DEVELOPMENT COOPERATION OF THE NETHERLANDS Dated , 1986 CREDIT NUMBER 1573-5 GH DEVELOPMENT GRANT AGREEMENT AGREEMENT, dated ( h( , 1986, between REPUBLIC OF GHANA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIA- TION, acting as Administrator (the Administrator) on behalf of the Minister for Development Cooperation of the Netherlands (the Minister). WHEREAS the Borrower has requested the assistance of the International Development Association (the Association) and of the Minister in the financing of the Project described in Sched- ule 2 to the Development Credit Agreement (Second Reconstruction Ir,ports Credit Project) dated April 5, 1985 between the Borrower and the Association (the Development Credit Agreement); WHEREAS the Association has granted a development credit for this purpose out of its own resources (the Credit) on the terms and conditions set forth in the Development Credit Agreement, and the Minister has authorized the Administrator, to extend to the Borrower for the same purpose a balance of payments grant (the Grant) to assist the Borrower's Economic Recovery Program on the terms and conditions hereinafter set forth; WHEREAS the Borrower acknowledges that the financial assist- ance extended to the Borrower under this Development Grant Agree- ment shall be considered as part of the bilateral development aid extended by the Government of the Netherlands to the Borrower; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The General Conditions Applicable to Develop- ment Credit Agreements of the Association, dated January 1, 1985 (the General Conditions) constitute an integral part of this Agreement subject, however, to the following modifications thereof: (a) the term "Association", wherever used in the General Conditions, means the Association acting as Administrator of the Grant pursuant to the Agreement dated December 13, 1985 -2- between the Minister and the Association; provided that the said term when used in Section 6.02 shall mean the Association acting in its own capacity; (b) the term "Development Credit Agreement" whenever used in the General. Conditions, means this Development Grant Agree- ment; (c) the term "Credit", whenever used in the General Condi- tions, means the Grant extended to the Borrower unde ,his Development Grant Agreement; (d) the term "Credit Account", whenever used in the Gener- al Conditions, means the account opened by the Administrator in its books in the name of the Borrower to which the amount rf the Grant is credited; and (e) Sections 3.02, 3.03, 3.04, 3.05, 4.01, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a) and 12.05 are dele(;ed. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the GeneralhConditions, in the Preamble to this Agreement arid in the Development Credit Agreement have the respective meanings there- in set forth. ARTICLE II The Grant Section 2.01. The Administrator agrees to extend to the Borrower, on the terms and conditions herein set forth or referred to, a grant in the amount of eighteen million Dutch Guilders (Dfls 18,000,000). Section 2.02. (a) The amount cf the Grant may be withdrawn from the Credit Account for expendiures made (or, if the Administrator shall so agree, to be made) in respect of the rea- sonable cost of the goods and services required for the Project. (b) Notwithstanding the provisions of paragraph (a) above, no withdrawals shall be made in respect of: (i) expendi- tures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower; and (ii) payments -3- for taxes levied by, or in the territory of, the Borrower on goods and services, or on the importation, manufacture, procure- ment or supply thereof. (c) Withdrawals from the Credit Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Grant have been paid or are payable or, at the option of the Administrator, in Dutch Guilders. Section 2.03. (a) Except as the Administrator shall other- wise agree, contracts for goods and services to be financed out of the proceeds of the Grant shall be procured in accordance with the provisions of Schedule 1 to the Project Agreement. (b) If the Administrator shall have reasonably determined that the procurement of any item is inconsistent with the pro- cedures set forth or referred to in paragraph (a) above, no expenditures for such item shall be financed out of the proceeds of the Grant, and the Administrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under the Development Grant Agreement, by notice to the Borrower, cancel such amount of the Grant as, in the Admini- strator's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financ- ing out of the proceeds of the Grant, Section 2.04. The Closing Date shall be December 31, 1987 or such later date as the Administrator shall establish. The Admini- strator shall promptly notify the Borrower of such later date. Section 2.05. The Bank of Ghana is designated as representa- tive of the Borrower for the purposes of taking any action required or permitted to be taken under the provisions of Section 2.02 of this Agreement and Article V of the General Conditions. ARTICLE III Execution of the Project; Remedies Section 3.01. Except as otherwise expressly provided herein, Articles III and IV of the Development Credit Agreement are hereby incorporated into this Agreement with the same force and effect as if they were fully set forth herein, it being -4- understood that all references in such Articles III and IV and in the Project Agreement to the "Association" shall be deemed to be references to the Association acting as Administrator on behalf of the Minister under this Agreement and all references to the "Credit" shall be deemed to be references to the Grant extended to the Borrower under this Development Grant Agreement. Section 3.02. (a) Without any limitation or restriction upon any of its other obligations under the Development Grant Agree- ment, the Borrower shall cause the Bank of Ghana to perform in accordance with the provisions of the letter agreement of even date herewith between the Administrator and the Bank of Ghana all the obligations therein 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 the Bank of Ghana to perform such 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 Grant available to the Bank of Ghana under arrangements satisfactory tothe Administrator. The Borrower shall exercise its rights under such arrangements in such manner as to protect the interests of the Borrower and the Administrator and to accomplish the purposes of the Grant. ARTICLE IV Termination; Representation Section 4.01. The date 90 days after the date of this Agree- ment is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 4.02. The representative designated in Section 7.01 of the Development Credit Agreement shall be the representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 4.03. The addresses specified in Section 7.02 of the Development Credit Agreement shall be the addresses specified for the purposes of Section 11.01 of the General Conditions. -5- ARTICLE V Transfer of Rights and Obligations Section 5.01. In accordance with the Agreement dated Decem- ber 13, 1985 between the Minister and the Association, the rights and obligations of the Administrator under this Agreement may be transferred to the Minister. The Borrower accepts and agrees that, upon notice by the Administrator to the Borrower to that effect, the Minister shall, ipso facto, from the date specified in such notice, be substituted in all rights and obligations of the Administrator under this Agreement as if the Minister had been an original party to this Agreement, without any further action or formality required on the part of any party, and from such date the Association shall cease to have any rights or obli- gations as a party under this Agreement. 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. REPUBLIC OF GHANA L c~o Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator on behalf of the MINISTER FOR DEVELOPMENT COOPERATION OF THE NETHERLANDS Regional Vice President Western Africa INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the (lay o 198F S E FOR SECRETARY