Conformed Copy - C2166 - Public Enterprise Sector Adjustment Credit - Second Agreement Amending Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2166 MAU (Second Amendment) Second Agreement Amending Development Credit Agreement (Public Enterprise Sector Adjustment Credit) between ISLAMIC REPUBLIC OF MAURITANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated November 18, 1992 CREDIT NUMBER 2166 MAU (Second Amendment) SECOND AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated November 18, 1992, between ISLAMIC REPUBLIC OF MAURITANIA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIA- TION (the Association). WHEREAS: (A) the Borrower and the Association have entered into a Development Credit Agreement (Public Enterprise Sector Adjustment Credit), dated July 18, 1990, (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 Develop- ment Credit Agreement (the Program); (B) the Borrower and the Association have entered into a further agreement, dated November 20, 1990 (the First Amending Agreement), whereby the Association has agreed to increase the financing made available under the Development Credit Agreement by an amount in various currencies equivalent to two million nine hundred thousand Special Drawing Rights (SDR 2,900,000); Page 2 (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 and the First Amending Agreement by an amount in various currencies equivalent to one million nine hundred thousand Special Drawing Rights (SDR 1,900,000); and 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; 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 Subsection (n) thereof and substituting therefor the following Subsections (n) and (o): "(n) 'First Amending Agreement' means the First Agree- ment Amending the Development Credit Agreement (Public Enterprise Sector Adjustment Credit) between the Borrower and the Association, dated July 18, 1990; and "(o) 'Second Amending Agreement' means the Second Agreement Amending the Development Credit Agreement (Public Enterprise Sector Adjustment Credit) between the Borrower and the Association, dated July 18, 1990." 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: (i) an amount in various currencies equivalent to thirty million seven hundred thousand Special Drawing Rights (SDR 30,700,000); (ii) an additional amount in various currencies equivalent to two million nine hundred thousand Special Drawing Rights (SDR 2,900,000) (the First Additional Financing); and (iii) a further additional amount in various currencies equivalent to one million nine hundred thousand Special Drawing Rights (SDR 1,900,000) (the Second Additional Financing). Section 1.03. The proviso at the end of Section 2.04 (a) of the Development Credit Agreement is amended to read as follows: "; provided, however, that commitment charges on the First Additional Financing shall accrue from a date sixty days after the date of the First Amending Agreement, and commitment charges on the Second Additional Financing shall accrue from a date sixty days after the date of the Second Amending Agreement." Section 1.04. Schedule 1 to the Development Credit Agreement is amended by adding a new paragraph 6 as follows: "6. After a date twelve months from the date of the Second Amending Agreement, no commitment shall be entered into to pay amounts to the Borrower or others 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 amount of the Second Additional Financing unwithdrawn from the Credit Account or any part thereof." Section 1.05. No withdrawal of the Second Additional financ- ing, or any part thereof, shall be made unless the Borrower has Page 3 fulfilled all the conditions for second tranche release, specified in paragraph 4 (a) of Schedule 1 of the Development Credit Agree- ment. ARTICLE II Effective Date; Termination Section 2.01. This Second 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 Second 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 Second 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 Second 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 Second 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 Second Amending Agreement. Section 2.04. If this Second Amending Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Second Amending Agreement, this Second 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 Second Amending Agreement shall terminate under the provisions of this Section, the Development Credit Agreement shall continue in full force and effect, as if this Second Amending Agreement had not been executed. IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Second Amending Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the date and year first above written. ISLAMIC REPUBLIC OF MAURITANIA By /s/ Mohamed Fall Ainina Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Olivier Lafaourcade Acting Regional Vice President Africa