Honduras - Agricultural Sector Adjustment Project : Credit 2540 - Agreement - 2 - Conformed

CREDIT NUMBER 2540-2-HO Second Agreement Amending Development Credit Agreement (Agricultural Sector Adjustment Credit) between INTERNATIONAL DEVELOPMENT ASSOCIATION and REPUBLIC OF HONDURAS Dated ?Xt , 1995 CREDIT NUMBER 2540-2 HO SECOND AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1995, between REPUBLIC OF HONDURAS (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower and the Association have entered into a Development Credit Agreement (Agricultural Sector Adjustment Credit) dated September 27, 1993, (the Development Credit Agreement) for the purpose of assisting the Borrower 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 the Agreement Amending Development Credit Agreement (Agricultural Sector Adjustment Credit) dated June 10, 1994, whereby additional assistance was made available to the Borrower for the financing of the Program; (C) the Borrower has requested the Bank to provide further additional assistance toward the financing of the Program by increasing the amount made available under the Development Credit Agreement by an amount in various currencies equivalent to eighteen million six hundred thousand Special Drawing Rights (SDR 18,600,000); 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: (a) substituting the amount of "SDR 10,800,000" by the amount of "SDR 29,400,000" in paragraph (o) thereof; (b) deleting the word "and" after paragraph (s) thereof; (c) sub,-stiLucing the period at the end of paragraph (t) thereof by a semi-colon and adding the word "and" after such semi-colon; and -2- (d) adding the following new paragraph (u): "(u) 'Second Amending Agreement' means the agreement, dated , 1995, entered into between the Borrower and the Association to amend the Development Credit Agreement (Agricultural Sector Adjustment Credit) dated September 27, 1993, as amended on June 10, 1994." 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 eighty-one million nine hundred and eighty thousand Special Drawing Rights (SDR 81,980,000) (the Credit) which includes: (a) an original amount in various currencies equivalent to forty-three million three hundred thousand Special Drawing Rights (SDR 43,300,000); (b) an additional amount in various currencies equivalent to twenty million eighty thousand Special Drawing Rights (SDR 20,080,000) (the Additional Financing); and (c) a second additional amount in various currencies equivalent to eighteen million and six hundred thousand Special Drawing Rights (SDR 18,600,000) (the Second Additional Financing ).". Section 1.03. The proviso added by the Amending Agreement to the end of Section 2.04 (b) of the Development Credit Agreement is amended to read as follows: "; provided, however, that any commitment charge on the Additional Financing and the Second Additional Financing shall accrue from a date sixty (60) days after the respective date of the Agreement Amending Development Credit Agreement (Agricultural Sector Adjustment Credit) and the Second Agreement Amending Development Credit Agreement (Agricultural Sector Adjustment Credit), respectively." Section 1.04. Paragraph 5 of Schedule 1 is hereby amended by the substitution of the amount of "SDR 48,980" for the amount of "SDR 67,580." Section 1.05. The following paragraph is added at the end of Schedule I to the Development Credit Agreement: "8. After a date twelve months from the date of the Second Amending Agreement, no withdrawals shall be made and no commitment shall be entered -3- 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 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 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 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 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 terns. Section 2.03. This 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 Agreement. Section 2.04. If this Agreement shall not have come into force and effect by . / /99f, this Agreement and all obligations of the parties hereunder shall Yerminate, unless the Association establishes a later date for the purposes of this Section. If this Agreement shall terminate under the provisions of this Section, the Development Credit Agreement shall continue in full force and effect, as if this Agreement had not been executed. IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, 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. -4- REPUBLIC OF HONDURAS By 6 Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Latin America and the Caribbean INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the oripinal in the archives of the International Development Association. FOtECRETAW'