Conformed Copy - C2349 - Literacy and Functional Skills Project - Norwegian Grant Agreement

Page 1 NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2349 GH Norwegian Grant Agreement (Literacy and Functional Skills Project) between REPUBLIC OF GHANA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of development aid funds provided by the ROYAL MINISTRY OF FOREIGN AFFAIRS OF THE KINGDOM OF NORWAY Dated April 22, 1992 NORWEGIAN GRANT RELATED TO CREDIT NUMBER 2349 GH NORWEGIAN GRANT AGREEMENT AGREEMENT, dated April 22, 1992, between the REPUBLIC OF GHANA (the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION, acting as Administrator (the Administrator) of a Grant provided by the Royal Ministry of Foreign Affairs of the Kingdom of Norway (the Ministry). WHEREAS the Recipient has requested the assistance of the International Development Association (the Association) and the Ministry in the financing of the Project described in Schedule 2 to the Development Credit Agreement, dated , 1992, between the Recipient and the Association (the Development Credit Agreement); WHEREAS the Association has extended a credit to the Recipient on the terms and conditions set forth in the Development Credit Agreement, and the Ministry has authorized the Administrator to extend to the Recipient for the same purposes a grant (the Norwegian Grant) to assist the Recipient on the terms and conditions hereinafter set forth; WHEREAS by an agreement of even date herewith between the Ministry and the Association (the Administration Agreement) the Ministry has requested the Association, and the Association has accepted, to administer the Norwegian Grant in accordance with the provisions of the Administration Agreement; WHEREAS the Recipient acknowledges that the financial assistance extended to the Recipient under this Agreement (the Norwegian Grant Agreement) shall be considered as part of the bilateral development aid extended by the Ministry to the Recipient; and WHEREAS, the Administrator 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; Page 2 NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The General Conditions Applicable to Development Credit Agreements of the Association, dated January 1, 1985 (the "General Conditions"), constitute an integral part of this Agreement 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 Agreement; (c) the term "Credit", whenever used in the General Conditions, means the Norwegian Grant extended to the Grantee under this Agreement; (d) the term "Credit Account", whenever used in the General Conditions, means the trust account opened by the Administrator in its books in the name of the Recipient to which the amount of the Norwegian Grant is credited (the Trust Account); (e) Section 9.06, paragraph 6, 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 Project referred to in the Preamble to the Norwegian Grant Agreement, the performance by the Recipient and the Administrator of their respective obligations under the Norwegian Grant Agreement and the accomplishment of the purposes of the Norwegian Grant."; (f) Sections 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.04, 4.05, 4.06, 6.05, 7.01, 8.01 (a), 9.03 and Article XII of the General Conditions are deleted; and (g) 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. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, in the Administration Agreement, in the Preamble to this Agreement and in the Development Credit Agreement have the respective meanings therein set forth. Section 1.03. Wherever used in this Agreement, the terms, "Norwegian Kroner" and "NOK" mean the currency of Norway. 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. The amount of the Norwegian Grant may be withdrawn from the Trust Account in accordance with the Schedule to this Agreement, as such Schedule may be amended from time to time by agreement between the Recipient and the Administrator for the financing the expenditures made (or, if the Administrator shall so agree, to be made) in respect of the reasonable cost of the goods and services required for the Project and to be financed out of the proceeds of the Norwegian Grant. (b) Notwithstanding the provisions of paragraph (a) above, no Page 3 withdrawals shall be made in respect of payments for taxes levied by, or in the territory of, the Grantee on goods and services or in the importation, manufacture, procurement or supply thereof. (c) Withdrawals from the Trust 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. (d) The Recipient shall, for the purposes of the Project, open and maintain in dollars a special deposit account in a commercial bank on terms and conditions satisfactory to the Administrator, including appropriate protection against set-off, seizure or attachment. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 4 to the Development Credit Agreement, it being understood that the references in said Schedule to "Credit", "Credit Account" and "Association", shall be deemed to be references to the Norwegian Grant, the Trust Account and the Administrator of the Norwegian Grant. The amount of the Authorized Allocation shall be deemed to be the equivalent of two million Norwegian Kroner (NOK 2,000,000) and the Eligible Categories shall be the categories set forth in the Schedule of this Agreement. Section 2.03. (a) Except as the Administrator shall otherwise agree, contracts for goods and services required for the Program and to be financed out of the proceeds of the Norwegian Grant shall be procured in accordance with the provisions of Schedule 3 to the Development Credit Agreement, it being understood that the references in said Schedule to the "Association" and the "Credit Account" shall be deemed to be references to the Administrator of the Norwegian Grant and the Trust Account, respectively. (b) If the Administrator shall have reasonably determined that the procurement of any item is inconsistent with the procedures set forth or referred to in paragraph (a) above, no expenditures for such item shall be financed out of the proceeds of the Norwegian Grant, and the Administrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under this Agreement, by notice to the Recipient, cancel such amount of the Norwegian Grant as, in the Administrator's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Norwegian Grant. Section 2.04. The Closing Date shall be December 31, 1995, 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 references in Articles III and IV to the "Association" shall he deemed to be references to the Association, as Administrator on behalf of the Ministry under this Agreement; all references to the "Development Credit Agreement" shall be deemed to be references to this 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 as of the date first above written and shall continue in effect until the Norwegian Grant has been fully disbursed and the parties to this Agreement have fulfilled their obligations under this Agreement. 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. Page 4 Section 4.03 The representative designated in Section 6.01 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 6.02 of the Development Credit Agreement shall be the addresses specified for the purposes of Section 11.01 of the General Conditions. ARTICLE V Transfer of Rights and Obligations Section 5.01. In accordance with the provisions of the Administration Agreement, the rights and obligations of the Administrator under this Agreement may be transferred to the Ministry. The Recipient accepts as and agrees that, upon notice by the Administrator to the Recipient to that effect, the Ministry 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 the Ministry 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. REPUBLIC OF GHANA By /s/ Joseph L.S. Abbey Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION, as ADMINISTRATOR of development aid funds provided by the ROYAL MINISTRY OF FOREIGN AFFAIRS OF THE KINGDOM OF NORWAY By /s/ Edward V.K. Jaycox Regional Vice President Africa SCHEDULE Withdrawal of the Proceeds of the Grant 1. The table below set 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 NOK) to be Financed (1) Post-literacy 6,200,000 100% materials (2) Research and 7,600,000 100% evaluation (3) Other teaching 6,200,000 100% materials Page 5 TOTAL20,000,000 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of the Development Credit Agreement.