Ghana - Structural Adjustment Credit : Credit 1777 - Credit Agreement - 1 - Conformed

OFFICIAL DOCUMENTS SWEDISH GRANT RELATED TO CREDIT NUMBER 1777 GH Development Grant Agreement (Structural Adjustment Credit) between REPUBLIC OF GHANA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator on behalf of the SWEDISH INTERNATIONAL DEVELOPMENT AUTHORITY Dated , 1988 SWEDISH GRANT RELATED CREDIT NUMBER 1777 GH DEVELOPMENT GRANT AGREEMENT AGREEMENT, dated , 1988, between REPUBLIC OF GHANA (the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator (the Administrator) of a Grant provided by the SWEDISH INTERNATIONAL DEVELOPMENT AUTHORITY (SIDA). WHEREAS, the Recipient has requested the assistance of the Government of Sweden (Sweden) acting through SIDA in the financing of a program described in the letter of Development Policy dated March 2, 1987, referred to in Recital A of the Development Credit Agreement dated May 19, 1987, between the Recipient and the Association (IDA Credit Agreement); WHEREAS in consideration of the above-mentioned request, SIDA wishes to make available to the Recipient a grant in amount of twenty million Swedish Kronor (SEK 20,000,000) (the Swedish Grant) and has, pursuant to an agreement of even date herewith between SIDA and the Association (the Administration Agreement), appointed the Association as Administrator of said Swedish Grant for the purpose of providing assistance to the Recipient; WHEREAS, the Recipient acknowledges that the financial assistance extended to the Recipient under this Agreement shall be considered as part of the bilateral development aid extended by Sweden to the Recipient; and WHEREAS, the Association, as Administrator as hereinbefore mentioned has agreed on the basis, inter alia, of the foregoing to extend the Swedish Grant to the Recipient upon the terms and con- ditions hereinafter set forth; 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" (the General Conditions) of the Association, dated January 1, 1985, with the same force and effect as if they were fully set forth herein, subject, however, to the following modifications thereof: -2- (a) the term "Association", whenever used in the General Conditions, means the International Development Association acting as Administrator of the Swedish Grant pursuant to the provisions of the Administration Agreement; (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 Swedish Grant hereunder; (d) the term "Credit Account", whenever used in the General Conditions, means the Account opened by the Association in its books in the name of the Recipient to which the amount of the Swedish Grant is credited; (e) Section 2.01, paragraph 9, shall be modified to read: "'Project' means the imports and other activities that may be financed out of the proceeds of the Swedish Grant pursuant to the provisions of Schedule 1 to the Development Credit Agreement;" (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 purpose between the Recipient and the Administrator, the Recipient 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 Development Grant Agreement, the performance by the Recipient and the Administrator of their respective obligations under the Development Grant Agreement and the accomplishment of the purposes of the Swedish Grant"; (g) Sections 3.02, 3.03, 3.04, 3.05, 4.01, 4.C2, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a), 12.02 and 12.05 of the General Condi- tions are deleted; and (h) in Sections 6.02 and 7.01 of the General Conditions, the term "Association" shall include also the Association acting in its own capacity. -3- Section 1.02. Whenever used in this Agreement the following terms "Swedish Kronor" and "SEK" mean the currency of Sweden. ARTICLE II The Grant Section 2.01. The Administrator agrees to extend to the Recipient, on the terms and conditions herein set forth or referred to, a grant in an amount of twenty million Swedish Kronor (SEK 20,000,000). Section 2.02. (a) The amount of the Swedish Grant may be withdrawn from the Swedish Grant Account in accordance with the provisions of Schedule 1 to the IDA Credit Agreement, as such Schedule may be amended from time to time by agreement among the parties, for expenditures made (or, if the Administrator shall so agree, to be made) in respect of the reasonable cost of goods and services required during the execution of the Program and to be financed out of the proceeds of the Swedish Grant. (b) Withdrawals from the Swedish Grant Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Swedish Grant have been paid or are payable or, at the option of the Administrator in Swedish Kronor. Section 2.03. (a) Except as the Administrator shall otherwise agree, contracts for goods to be financed out of the proceeds of the SIDA Grant shall be procured in accordance with the provisions of Schedule 2 to the Development Credit Agreement, which is hereby incorporated into this Agreement with the same force and effect as if it were fully set forth herein. The references to the Association in said Schedule shall be deemed to be references to the Association acting as Administrator of the SIDA Grant. (b) If the Administrator shall have reasonably determined that the procurement of any item is inconsistent with the procedures set forth or referred to in paragraph (a) above, no expenditures for any such item shall be financed out of the proceeds of the SIDA Grant, and the Administrator may, by notice to the Recipient, without in any way restricting or limiting any other right, power or remedy of the Administrator under this Agreement, cancel such amount of the SIDA Grant as, in the -4- Administrator's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the SIDA Grant. Section 2.04. The Closing Date shall be June 30, 1989, or such later date as the Administrator shall establish. The Administrator shall promptly notify the Recipient of such later date. ARTICLE III Execution of the Program Section 3.01. Except as the Administrator shall otherwise agree, Articles III and IV of the IDA 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 such Articles III and IV to the "Association" shall be deemed to be references to the Association, as Administrator on behalf of the Government of the Kingdom of Sweden under this Agreement, all references to the "Development Credit Agreement" shall be deemed to be references to this Development Grant Agree- ment and all references to the "Credit" shall be deemed to be references to the Swedish Grant. ARTICLE IV Effectiveness; Termination; Representation Section 4.01. This Agreement shall become effective upon signature. Section 4.02. This Agreement and all obligations of the Recipient and the Administrator hereunder shall terminate on the date on which the IDA Credit Agreement shall terminate in accor- dance with its terms. Section 4.03. The representative designated in Section 6.01 of the IDA Credit Agreement shall be the representative of the Recipient for the purposes of Section 11.03 of the General Condi- tions. Section 4.04. The addresses specified in Section 6.02 of the IDA Credit Agreement shall be the addresses specified for the purposes of Section 11.01 of the General Conditions. - 5 - Section 4.05. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the IDA Credit Agreement. ARTICLE V Transfer of Rights and Obligations Section 5.01. In accordance with the Administration Agree- ment, the rights and obligations of the Administrator under this Agreement may be transferred to SIDA. The Recipient accepts and agrees that, upon notice by the Administrator to the Recipient to that effect, SIDA 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 SIDA 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 Admini- strator shall cease to have any rights or obligations as a party under this Agreement. 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 GHANA By kiC a Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION, as ADMINISTRATOR on behalf of the SWEDISH INTERNATIONAL DEVELOPMENT AUTHORITY By N Regional Vice President Africa INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Development Association. FOR SECRETARY