Bolivia - Second Emergency Social Fund Project : Credit 1882 - Credit Agreement - 1 - Conformed

SWEDISH GRANT RELATED TO CREDIT NUMBER 1882 BO Development Grant Agreement in respect of the Second Emergency Social Fund Project (Credit Number 1882-BO) between REPUBLIC OF BOLIVIA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator on behalf of the GOVERNMENT OF THE KINGDON OF SWEDEN Dated å £< ..c, 1988 DEVELOPMENT GRANT AGREEMENT AGREEMENT, dated 1988, between REPUBLIC OF BOLIVIA (the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Administrator) acting as Administrator of a Grant provided by the GOVERNMENT OF THE KIÑGDOM OF SWEDEN (Sweden). WHEREAS the Recipient has requested the assistance of Sweden in the financing of the Second Emergency Social Funj Pkoject (the Project) described in the Schdule -2 to the Development Credit Agreement dated'March 4, 1988 (the Development Credit Agreement), between the Recipient and the International Development Association, acting'in its own capacity (the Association); WHEREAS in consideration of the above-mentioned request, Sweden intends 'to 'open an account (the Trust Account) and intends o deposit therein an amount of twenty-four million eight hundred thousand Swedish Kronor (SEK 24,800,000) (the Grant) and has, pursuant-tom an agreement of even date herewith between Sweden and the Association, (the Administration Agreement), appointed the Association as Administrator of the said Trust Account for the purpose of providing assistance to the Recipient; WHERFAS, the Recipient acknowledges' that the financial assistance extended to the Recipient under this Agreement shall be considered as part of the bilateral developmånt aid extendåd by Sweden to the Recipient; and WHEREAS, the Association, as Administrator, has agreed on the basis, inter alia, of the foregoing to extend the GVant to the Recipient upon the terms and conditions hereinafter set forth; NOW THEREFORE the patties 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 Administrator, --u. r., R r.l 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: (a) the term "Association", whenever used in the General Conditions, means the International Development Association acting as Administrator of the Grant pursuant to the provisions of the Administration Agreement, except that in Sections 2.01 and 6.Q2 thereof, the term "Association" shall also include the Association acting in its own capacity or as Administrator as the case may be; (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 Grant hereunder; (d) -the term "Credit Account", whenever,used in the General Conditions, means the Grant Account as defined hereunder 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), 12.01, 12.02 and 12.05 of the General Conditions are deleted. Section 1.02. Unless the context otherwise requires, the several terms defined in the Preamble to this Agreement have the , respective meanings therein set forth and the following terms have the.following meanings: (a) ."Kronor" and the symbol "SEK" mean the currency of the Kingdom of Sweden; (b) "Grant Account" means the account to be opened by the Administrator in its books in the name of the Recipient to which the amount of the Grant is 'to be credited; (c) "Special Account" means the account to be opened by the Recipient pursuant to SectiQn 2.02 (c) of this Agreement; and. (d) "ESF" or "Emergency Sqcial Fund" means. the Emergency Social Fund (Fondo Social de ZMergenci) established by the President of the Republic of Bolivia as a public entity with full juridical personality, by Chapter I of Decreto Supmo No. 21137 of November 30, 1985 and revised by Decreto SM2reMo No. 21456 of November 28,. 1986 of the Republic of Bolivia. 3 ARTICLE II The Grant Section 2.01. The Administrator agrees to extend to the Recipient, on the teras and conditions herein set f rth or referred to, a grant in an amount of twenty-four million eight hundred thousand Swedish Kronor (SEK 24,800,000) Section 2.02. (a) The amount of the Grant may be withdrawn from the Grant Account in accordance with the provisions of Schedule 1 to this 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 required for the Project and to be financed out of the proceeds of the Grant. (b) ithdrawals from the Grant 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 Kronor. (c) The Recipient shall, for the purposes of the Grant, open and maintain in Kronor ar Special Account in a commercial bank on terms and conditions satisfactory to the Administrator,. Deposits ißsto, and payments out of the Special Account shall be made in accordance with the provisions of Schedule 2 to this Agreement. Section 2.03. The Closing Date shall be November 30, 1990, 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 Project Section 3.01. Except as the Administrator shall otherwise agree, 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 understood that all referendes therein to the,, "Association" shall be deemed to be references tc the Administrator under this' Agreement, all references therein to the "Credit" shall be deemed to be references to the Grant, and all references therein to the "Borrower" shall be deemed to be references to the Recipient. -4- ARTICLE IV Effectiveness; Termination; Representation Section 4.01. This Agreement shall become effective upon signature by both parties. Section 4.02. This Agreement and all obligations of the Recipient and the Administrator hereunder shall terminate on the date on which the Development Credit Agreement shall terminate in accordance with its terms. Section 4.03. The representative designated in Section 8.01 of the Development Credit Agreement shall be the representative of the Recipient for the purposes of Section 11.03 of the General Conditions. Section 4.04. The addresses specified in Section 8.02 of the Development Credit Agreement shall be the addresses specified for the purposes of Section 11.01 of the General Conditions. Section 4.05. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the Development Credit Agreement. ARTICLE V Transfer of Rights and Obligations Section 5.01. In accordance with the Administration Agree- ment, the rights adi obligations of the Administrator under this Agreement may be transferred to Sweden. The Recipient accepts and agrees that, upon notice by the Administrator to the Recipient to that effect, Sweden shall IRRO facto, from the date specified in such notice, be substituted in all rights and obligations of the Administrator under this Agreement as if Sweden 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. 5 IN WITNESS WHEREOF, the parties hereto, actin' 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 BOLIVIA By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION, as ADMINISTRATOR on behalf of the GOVERNMENT OF THE KINGDOM OF SWEDEN By Regional Vice President Latin America- and the Caribbean -6- SCHEDULE 1 Withdrawal of the Proceeds of the Grant 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Grant, the allocation of the amounts of the Grant to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Grant Allocated % of (Expressed in Expenditures Category Swedish Kronor) to be Financed (1) SA Subprojects 2,130,000 90% of amount inder Part A.1 disbursed by ESF of the Project for each Sub- project (2) SI Subprojects 7,640,000 90% of amount under Part A.2 disbursed by ESF of the Project for each Sub- project (3) El Subprojects 9,540,000 z90% of amount under Part AZ3 disbursed by ESF of the Project for each Sub- project (4) SP Subprojects 1,910,000 90% of amount under Part A.4 disbursed by ESF of the Project 0 for each Sub- project 7 Amount of the Grant Allocated % of (Expressed in Expenditures Category Swedish Kronor)Q to be Financed (5) Institutional i,J10,000 100% support, including consultants' ser- vices, equipment and salaries, travel costs and training for fixed term staff, under Part B of the Project (6) Unallocated 2,470,000 TOTAL SEK 24,800,000 2. Notwithstanding the provisions of paragraph 1 above and unless otherwise agreed by the Association, no withdrawal shall be made: (a) from the Grant until the grant made available to the Recipient by the Association as Administrator on behalf of the Minister for Development Cooperation of the Netherlands pursuant to a Development Grant Agreement dated July 27, 1988 between the Association and the Recipient (the Dutch Grant) has been.,disbursed in full. (b) in respect of expenditures for any Subproject for which the estimated financing to be provided by ESF is the equivalent of $50,000 or more, and less than the equivalent of $250,000, unless the Administrator shall have received the information set forth in the Appendix to Schedule 4 to the Development Credit Agreement in respect of such Subproject and shall have, authorized withdrawal from the Credit Account as defined therein in respect of such Subproject; and (c) in respect of expenditures for a Subproject for which the estimated financing to be provided by ESF is the equivalent of $250,000 or more, unless the Subproject has been approved by the Administrator prior to signing the relevant Subproject Agreement -8- and the 'Administrator shall have received the information set forth in the Appendix to Schedule 4 to the Development Credit Agreement in respect of such Subproject. 3. If the Administrator shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no e;peneitures 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 Sweden under this Agreement, by notice to the Recipient, cancel such amount of the Grant, which in the Administrator's reasonable opinion, represents the amount of such expenditures which otherwise have been eligible for financing out of the proceeds of the Grant. 9- SCHEDULE 2 Special AccountI 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods and services required during the execution of the Project and to be financed out of the proceeds of the Grant in accordance with the provisions of Schedule 1 to this Agreement; and (b) the term "Authorized Allocation" means an amount of SEK 6,000,000 to be withdrawn from the Grant Account and deposited into the Special Account. 2. Except as the Administrator shall otherwise agree, payments out of the Special Account shall be made exclusively for eligible expenditures in accordance with the provisions of this Schedule. 3. After the Administrator has received evidence satisfactory to it that the Special Account h's been duly opened, with rawalsof the Authorized Allocation and subsequent withdrawals-to replenish the Special Account may be made as follows: (a) For withdrawals of the Authorized Allocation, the Recipient shall furnish to the Administrator a request or requests for a deposit or deposits which do not exceed the aggregate amount of the Authorized Allocation. On the basis of such request or requests, the Administrator shall, on behalf of the Recipient, withdraw from the Grant Account and deposit in the Special Account such amount or amounts as the Recipient shall have requested. (b) (i) For replenishment of the Special Account, the Recipient shall furnish to the Administrator requests for deposits into the Special Account at such intervals as the Administrator shall specify. (ii) Prior to or at the time of each such request, the Recipient shall furnish to the Administrator the documents and other evidence,required pursuant to paragraph 4 of this Schedule for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the 10 Administrator shalk, on behalf of the Recipient, withdrav from the Grant Account and deposit into the Special Account, such amount-as the Recipient shall- have requested and as shall have been shown by said documents and other evidence to have been made out of the Special Account for eligible expenditures. All such deposits shall be withdrawn by the Administrator from the Grant Account in the respective equivalent amounts, as shall have been justified by said documents and other evidener 4. For each payment made to the Recipient out of the Special Account, the Recipient shall, at such time as the Administrator shall reasonably request, furnish to the Administrator such documents and other evidence showing that such payment wa made exclusively for eligible expenditures. 54 Notwithstanding the rovisions of paragraph 3 of this Schedule, the Administrator shall not be required to make further deposits into the Special Account: (a) if, 'at any time, the Administrator shall have determined that' all further withdrawals should be made by the Recipient directly from Grant Account in accordance with the provisions of Articie V, of - the General Conditions and paragraph (a) of Section 2.02 of this Agreement; or (b). once the total unwithdrawn amount of the Grant less the amount of any outstanding special commitment entered into by the Administrator pursuant to Sectiòn 5.02 of the General Conditions with respect to the Project, shall equal twice the equivalent ýof the amount of the Authorized Allocation. (c) Thereafter, withdrawal from the Grant Account of the remaining unwithdrawn amount of the Grant shall follow such procedures as the Administrator shall specify by notice to the Recipient. Such further withdrawals shall be made only after and to the extent that the Administrator shall have been satisfied that all such amounts remaining on deposit in the Special Arcount as of the date of such notice will be utilized in making payments for eligible expenditures. 6. (a) If the Administrator shall have determined at any time that any payment out of the Special Account: (i) was made for an expenditure or dn an amount not eligible pursuant to paragraph 2 of *this Schedule; or (ii) was not justified by the evidence furnished to the Administrator, the Recipient shall, promptly upon notice from the Administrator: (A) provide such additional evidence as the Administrator may request; or (B) deposit into the Special Account (or,.if the Administrator shall so request, refund to the Administrator) an amount equal to the amount of such payment or the portion thereof not so eligible or justified. Unless the Administrator shall otherwise agree, no further deposit by the Administrator into the Special Account shall be made until the Recipient has provided such evidence or made such deposit or refund, as-the case may be. (b) If (.he Administrator shall have determined at any time that any amount outstanding in the Special Account will not be required to cover further payments for eligible expenditures, the Recipient shall, promptly upon notice from the Administrator, refund to the Administrator such outstanding amount. (c) The Recipient may, upon notice to the Administrator, refund to the Administrator all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Administrator made pursuant to paragraphs 6 (a), (b) and (c) of this Schedule shall be credited to the Grant oAccount for subsequent withdrawal or for cancellation in accordance with the relevant provisions of this Agreement, including the General Conditions.