Conformed Copy - C1941 - Public Sector Adjustment Credit - Second Agreement Amending Development Credit Agreement

Page 1 CREDIT NUMBER 1941 MAG (Second Amendment) Second Agreement Amending Development Credit Agreement (Public Sector Adjustment Project) between DEMOCRATIC REPUBLIC OF MADAGASCAR and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated January 22, 1990 DEVELOPMENT CREDIT NUMBER 1941 MAG (Second Amendment) SECOND AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated January 22, 1990, between DEMOCRATIC REPUBLIC OF MADAGASCAR (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower and the Association have entered into a Development Credit Agreement (Public Sector Adjustment Credit), dated July 18, 1988 (the Development Credit Agreement), for the purpose of assisting in the financing of the program referred to in Recital (A) of the Preamble to the Development Credit Agreement (the Program); (B) the Borrower and the Association have entered into an agreement dated April 6, 1989 (First Amending Agreement) amending the Development Credit Agreement for the purpose of providing the Borrower with additional assistance in the financing of the Program; and (C) the Borrower has requested the Association to provide further additional assistance towards the financing of the Program by increasing the amount made available under the Development Credit Agreement by an amount in various currencies equivalent to nine hundred thousand Special Drawing Rights (SDR 900,000). WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to provide such additional assistance to the Borrower upon the terms and conditions set forth in this Agreement; Page 2 NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Amendments of the Development Credit Agreement Section 1.01. Section 1.02 of the Development Credit Agreement is amended by deleting the "and" at the end of Subsection (c), by deleting the "." at the end of Subsection (d) and the substitution thereof by ";and" and adding a new Subsection (e) as follows: "(e) 'Second Amending Agreement' means the Agreement Amending the Development Credit Agreement (Public Sector Adjustment Credit) between the Borrower and the Association, dated July 18, 1988, as amended." Section 1.02. Section 2.01 of the Development Credit Agreement is amended to read as follows: "Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to ninety-two million five hundred thousand Special Drawing Rights (SDR 92,500,000) (the Credit) , which includes an original amount in various currencies equivalent to ninety million five hundred thousand Special Drawing Rights (SDR 90,500,000), and two additional amounts in various currencies equivalent, respectively, to one million one hundred thousand Special Drawing Rights (SDR 1,100,000) (the First Additional Financing) and nine hundred thousand Special Drawing Right (SDR 900,000) (the Second Additional Financing)." Section 1.03. A proviso is added at the end of Section 2.04 (b) of the Development Credit Agreement reading as follows: "; provided, however, that any commitment charge on the First Additional Financing shall accrue from June 5, 1989 and that any commitment charge on the Second Additional Financing shall accrue from a date sixty days after the date of the Second Amending Agreement." Section 1.04. Paragraph 3 of Schedule 1 to the Development Credit Agreement is amended by: (i) substituting "SDR 25,300,000' set forth in subparagraph A (i) by "SDR 27,300,000"; and (ii) substituting "SDR 50,600,000" set forth in subparagraph B (i) by "SDR 52,600,000". Section 1.05. Paragraph (5) of Schedule 1 to the Development Credit Agreement is amended as follows: "5. After April 6, 1990, no withdrawals shall be made and no commitment shall be entered into to pay amounts or on the order of the Borrower in respect of expenditures to be financed out of the proceeds of the First Additional Financing. At any time after such date, the Association may, by notice to the Borrower, cancel the unwithdrawn amount of the First Additional Financing from the Credit Account or any part thereof." Section 1.06. The following paragraph is added at Page 3 the end of Schedule 1 to the Development Credit Agreement: "6. After a date twelve months from the date of the Second Amending Agreement, no withdrawals shall be made and no commitment shall be entered into to pay amounts to or on the order of the Borrower in respect of expenditures to be financed out of the proceeds of the Second Additional Financing. At any time after such date, the Association may, by notice to the Borrower, cancel the unwithdrawn amount of the Second Additional Financing from the Credit Account or any part thereof." ARTICLE II Effective Date; Termination Section 2.01. This Amending Agreement shall not become effective until evidence satisfactory to the Association shall have been furnished to the Association that the execution and delivery of this Amending Agreement on behalf of the Borrower have been duly authorized or ratified by all necessary governmental action. Section 2.02. As part of the evidence to be furnished pursuant to Section 2.01 of this Amending Agreement, there shall be furnished to the Association an opinion or opinions satisfactory to the Association of counsel acceptable to the Association showing, on behalf of the Borrower, that this Amending Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and is legally binding upon the Borrower in accordance with its terms. Section 2.03. This Amending Agreement shall come into force and effect on the date upon which the Association dispatches to the Borrower notice of its acceptance of the evidence required by Section 2.01 of this Amending Agreement. Section 2.04. If this Amending Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Amending Agreement, this Amending Agreement and all obligations of the parties hereunder shall terminate, unless the Association establishes a later date for the purposes of this Section. If this Amending Agreement shall terminate under the provisions of this Section, the Development Credit Agreement shall continue in full force and effect, as if this Amending Agreement had not been executed. IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Amending 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. DEMOCRATIC REPUBLIC OF MADAGASCAR By /s/ Pierrot Rajaonarivelo Authorized Representative Page 4 INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Paul Isenman Acting Regional Vice-President Africa