Benin - Public Sector Rehabilitation Project : Credit 1748 - Credit Agreement - Conformed

CANADIAN GRANT RELATED TO CREDIT NUMBER 1748 BEN Canadian Grant Agreement (Relating to the Public Sector Rehabilitation Project) between REPUBLIC OF BENIN and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by the Government of Canada Dated C - CLr 2 3 , 199p CANADIAN GRANT RELATED TO CREDIT NUMBER 1748 BEN CANADIAN GRANT AGREEMENT AGREEMENT, dated - - r 2-3 , 199'1, between the REPUBLIC OF BENIN (the Beneficiary) and the INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator (the Administrator) of the Contribution (as hereinafter defined) provided by the Government of Canada (Canada). WHEREAS the Beneficiary has requested the assistance of Canada in financing the training and reorientation component (Part D) of the project described in Schedule 2 to the Development Credit Agreement (the Development Credit Agreement) between the Inter- national Development Association and the Republic of Benin entered into on January 9, 1987, (said component hereinafter referred to as the Project); WHEREAS by an agreement dated May 9, 1990, between Canada and the International Development Association (the Contribution Agreement), Canada has requested the International Development Association, and the International Development Association has accepted, to administer an amount of five hundred thousand Canadian dollars (C$500,000) (the Contribution) in accordance with the provisions of the Contribution Agreement; and WHERE.3 the Beneficiary acknowledges that the financial assistance extended to the Beneficiary under this Agreement shall be considered as part of the bilateral development aid extended by Canada to the Beneficiary; 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 International Development Association acting as Administrator of the Contribution except in the phrase "member of the Association" in Sections 2.01 (5) and 6.02 (e) (i); -2- (b) the term "Development Credit Agreement" whenever used in the General Conditions, means this Agreement; (c) the term "Credit", whenever used in the General Condi- tions, means the Contribution extended to the Beneficiary under this Agreement; (d) the term "Credit Account", whenever used in the General Conditions, means the account opened in the Federal Reserve Bank of New York in the name of the Administrator to which the amount of the Contribution is credited; (e) in Section 6.02 the term "Association" shall also include the International Development Association acting in its own capacity; (f) Section 9.06 (c) shall be modified to read: "(c) Not later than six months after the Closing Date or such later date as may be agreed for this pur- pose between the Beneficiary and the Administrator, the Beneficiary shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator shall reasonably request, on the execution of the project referred to in the Preamble to the Canadian Grant Agreement, the performance by the Beneficiary and the Administrator of their respective obligations under the Canadian Grant Agreement and the accomplishment of the purposes of the Contribution."; (g) Sections 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a), 12.02 and 12.05 of the General Conditions are deleted; and (h) the term "Borrower", whenever used in the General Conditions, means the Beneficiary. Section A1.02. Whenever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, in the Preamble to this Agreement and in the Development Credit Agreement have the respective meanings therein set forth, and the term "T-Account" means the account opened in the Bank of Canada in the name of the Administrator to which the amount of the Contribution is credited. -3- ARTICLE II The Contribution Section 2.01. The Administrator agrees to extend to the Bene- ficiary, on the terms and conditions herein set forth or referred to, a Contribution in an amount of up to four hundred and ninety thousand Canadian dollars (C$490,000), or such other amount as shall have been made available by Canada to the Administrator for this purpose pursuant to the Contribution Agreement. Section 2.02. The amount of the Contribution may be withdrawn from the T Account in accordance with the provisions of Schedule 1 to this Agreement for expenditures made (or if the Administrator shall so agree, to be made) in respect of the reasonable cost of services and related expenses required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Contribution. Section 2.03. Except as the Administrator shall otherwise agree, the beneficiary shall contract for the services required for the Project and to be financed out of the proceeds of the Contribution with the World University Service of Canada (WSC) which has been selected by the Administrator and the Beneficiary to implement the Project. Section 2.04. The Closing Date shall be December 31, 1993 or such later date as the Administrator shall establish. The Administrator shall promptly notify the Beneficiary of such later date. ARTICLE III Execution of the Project Section 3.01. Except as otherwise expressly provided herein, Sections 3.01, 3.04, 4.01 and 5.01 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 understood that all references in said sections to "the Association" shall be deemed to be references to the Association acting as Administrator of the Contribution under this Agreement, all references to the "Credit" and the "Credit Account" shall be deemed to be references to the Contribution and the T-Account, 4- respectively, and all references to the Borrower shall be deemed to be references to the Beneficiary. ARTICLE IV Effectiveness; Termination Section 4.01. This Agreement shall come into effect on the date of signature by both parties thereto. Section 4.02. This Agreement shall continue in effect until termination of the Contribution Agreement, or until the Contribution has been fully disbursed and the parties to this Agreement have fulfilled their obligations hereunder, whichever occurs first. ARTICLE V Representation; Transfer of Rights and Obligations Section 5.01. The Minister of the Beneficiary responsible for Finance shall be the representative of the Beneficiary for the purposes of Section 11.03 of the General Conditions. Section 5.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Beneficiary: Ministry of Finan-e and Economy P.O. Box 302 Cotonou Republic of Benin Cable address: Telex: MINIFINANCES MINFIN 5009 or Cotonou 5289 or MININDART 5252 -5- For the Administrator: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 197688 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTCC) Section 5.03. In accordance with the Contribution Agreement, the rights and obligations of the Administrator under this Agreement may be terminated. The Beneficiary accepts and agrees that, upon notice by the Administrator to the Beneficiary to that effect, Canada (or such other party as the Bank and Canada may agree upon) may ipso facto, from the date specified in such notice, be substituted in all rights and obligations of the Administrator under this Agreement as if Canada 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 Administrator shall cease to have any rights or obligations as a party under this Agreement. -6- 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. REPUBLIC OF BENIN By /g;/ Cmr/c , o Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by the Government of Canada By S E'Z' FFr - LL Regional Vice President Africa -7- SCHEDULE 1 Vithdrawal of the Proceeds of the Contribution 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Contribution, the allocation of the amounts of the Contribution to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Contribution Allocated % of (Expressed in Expenditures Category $ Equivalent) to be Financed (1) Consultants' 287,760 100% services (2) Operating 196,425 100% costs (3) Unallocated 5,815 TOTAL 490,000 2. For the purposes of this Schedule, the term "operating costs" means the reasonable cost of acquisition and maintenance of office supplies and equipment and vehicles, and of missions and travel of the unit to be established under Part A of the Project. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expendi- tures prior to the date of this Agreement. -8- SCHEDULE 2 Description of the Project The Project consists of the following parts, subject to such modifications thereof as the Beneficiary, Canada and the Administrator shall agree: A. Establishment of a unit in Cotonou and development of procedures to enable such unit to carry out Part D of the project described in Schedule 2 to the Development Credit Agreement. B. Carrying out of studies to identify persons to be trained and redeployed under Part D of the project described in Schedule 2 to the Development Credit Agreement and to identify the training needs of such persons. C. Carrying out of studies to identify and appraise sub-projects to be carried out by the persons described in the preceding paragraph. T P i * The Project is expected to be completed by July 31, 1993. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the [nternational Development Association. FOR SECRETARY