Conformed Copy - C2023 - Structural Adjustment Credit - Development Grant Agreement

Page 1 CONFORMED COPY NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2023 BEN Development Grant Agreement (Structural Adjustment Credit) between PEOPLE'S REPUBLIC OF BENIN and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator on behalf of the GOVERNMENT OF THE KINGDOM OF NORWAY Dated January 2, 1990 NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2023 BEN DEVELOPMENT GRANT AGREEMENT AGREEMENT, dated January 2, 1990, between the PEOPLE'S EPUBLIC OF BENIN (the Recipient) and the INTERNATIONAL DEVELOPMENT ASSOCIATION, acting as Administrator (the Administrator) of a Grant provided by the GOVERNMENT OF THE KINGDOM OF NORWAY (Norway). WHEREAS (A) the Recipient has requested the assistance of the International Development Association (the Association) and of Norway in the financing of the imports needed during the execution of the program of actions described in the Letter of Development Policy, dated March 7, 1989, referred to in recital A of the Development Credit Agreement, dated May 26, 1989, between the Recipient and the Association (the IDA Credit Agreement); (B) in consideration of the above-mentioned request, Norway has opened a trust account (the Trust Account) and deposited therein an amount of twenty million Norwegian Kroner (NOK 20,000,000) (the Norwegian Grant) and has, pursuant to an Agreement, dated December 22, 1989 (the Administration Agreement), appointed the Association as Administrator of said Trust Account for the purpose of providing assistance 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 Norwegian Grant to the Recipient upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Page 2 General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985 (the General Conditions), 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 Norwegian Grant pursuant to the Administration Agreement; (b) the term "Development Credit Agreement", whenever used in the General Conditions, means this Development Grant Agreement; (c) the term "Credit", whenever used in the General Conditions, means the Norwegian Grant hereunder; (d) the term "Credit Account", whenever used in the General Conditions or in this Agreement, means the account opened by the Administrator in its books in the name of the Recipient to which the amount of the Norwegian 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 Norwegian Grant pursuant to the provisions of Schedule 1 to the Development Credit Agreement"; (f) Section 9.06, paragraph (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 program 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 Credit Agreement and the accomplishment of the purposes of the Norwegian Grant."; (g) 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), 12.02 and 12.05 of the General Conditions are deleted; and (h) in Sections 6.02 and 7.01 of the General Conditions, the term "Association" shall also include the International Development Association acting in its own capacity. 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 Norwegian Kroner (NOK 20,000,000). Section 2.02. (a) The amount of the Norwegian Grant may be withdrawn from the Credit Account in accordance with the provisions of Schedule I 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 required for the Project and to be financed out of the proceeds of the Norwegian Grant. (b) Withdrawals from the Credit Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Norwegian Grant have been paid or are payable, or at the option of the Administrator, in Norwegian Kroner. (c) The Recipient shall, for the purposes of the Project, open and maintain in CFAF a special account in the Cotonou branch of the Central Bank for West African Countries on terms and conditions satisfactory to the Administrator. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 4 to the IDA Credit Agreement, said provisions being hereby incorporated into this Agreement with the same force and effect as if they were fully Page 3 set forth herein; it being understood that the amount of the Authorized Allocation shall be deemed to be the equivalent of two million Norwegian Kroner (NOK 2,000,000). Section 2.03. Except as the Administrator shall otherwise agree, procurement of the goods and services required for the Project and to be financed out of the proceeds of the Norwegian Grant shall be procured in accordance with the provisions of Schedule 2 to the IDA Credit Agreement. Section 2.04. The Closing Date shall be March 31, 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 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 Articles III and IV to the "Association" shall be deemed to be references to the Association, as Administrator on behalf of Norway under this Agreement; all references to the "Development Credit Agreement" shall be deemed to be references to this Development Grant Agreement, and all references to the "Credit" shall be deemed to be references to the Norwegian Grant. ARTICLE IV Effectiveness; Termination; Representation Section 4.01. This Agreement shall become effective upon signature. Section 4.02. The date thirty (30) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 4.03. 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 accordance with its terms. Section 4.04. 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 Conditions. Section 4.05. 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. Section 4.06. 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 Agreement, the rights and obligations of the Administrator under this Agreement may be transferred to Norway. The Recipient accepts and agrees that, upon notice by the Administrator to the Recipient to that effect, Norway 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 Norway 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. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this 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. PEOPLE'S REPUBLIC OF BENIN Page 4 By /s/ Theophile Nate Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator on behalf of the GOVERNMENT OF THE KINGDOM OF NORWAY By /s/ Edward V.K. Jaycox Regional Vice President Africa