Conformed Copy - C1967 - Economic Management and Social Action Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 1967 MAG (Economic Management and Social Action Project) between DEMOCRATIC REPUBLIC OF MADAGASCAR and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated December 15, 1988 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated December 15, 1988, between Democratic Republic of Madagascar (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; (B) the Borrower intends to contract from African Development Bank an amount equivalent to about two million dollars ($2,000,000), from African Development Bank Fund for Technical Assistance an amount equivalent to about two million dollars ($2,000,000), from the Confederation of Switzerland an amount equivalent to about four million seven hundred fifty thousand dollars ($4,750,000), from the United Nations Development Program an amount of three million eight hundred thousand dollars ($3,800,000), and from other cofinanciers to assist in financing the Project on the terms and conditions set forth in the respective financing agreement entered into by the Borrower and any such cofinancier; and Page 2 WHEREAS the Association has agreed on the basis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms and conditions set forth in this Agreement; 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, with the last sentence of Section 3.02 deleted (the General Condi- tions) constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Special Account A" and "Special Account B" mean the accounts referred to in Section 2.02 (b) of this Agreement (Speci- al Account A and Special Account B hereinafter collectively referred to as the Special Accounts); (b) "Project Preparation Advance" means the project prepara- tion advance granted by the Association to the Borrower pursuant to exchanges of letters, dated June 30, 1988, November 17, 1988, and November 28, 1988, between the Borrower and the Association; (c) "DGP" means the Direction G