Conformed Copy - C2776 - Highway Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2776 AM Development Credit Agreement (Highway Project) between REPUBLIC OF ARMENIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated October 2, 1995 Credit Number 2776 AM DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated October 2, 1995, between REPUBLIC OF ARMENIA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS: (A) the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; (B) the Borrower intends to contract from the Kuwait Fund for Arab Economic Development a loan (the Kuwait Fund Loan) in an amount equivalent to $15,000,000 to assist in financing the Project on the terms and conditions set forth in an agreement (the Kuwait Fund Loan Agreement) to be entered into between the Borrower and the Kuwait Fund; (C) the Borrower intends to contract from the European Union (the EU) a grant (the EU Grant) in an amount equivalent to $1,000,000 to assist in financing the Project on the terms and conditions set forth in an agreement (the EU Grant Agreement) to be entered into between the Borrower and the EU; (D) the Borrower intends to contract from the French Government a grant (the French Grant) in an amount equivalent to $1,000,000 to assist in financing the Project on the terms and conditions set forth in an agreement (the French Government Grant Agreement) to be entered into between the Borrower and the French Government; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms and conditions set forth in this Agreement; 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, with modifications thereto set forth below (the General Conditions) constitute an integral part of this Agreement. (a) The last sentence of Section 3.02 is deleted. (b) The second sentence of Section 5.01 is modified to read: "Except as the Bank and the Borrower shall otherwise agree, no withdrawals shall be made: (a) on account of expenditures in the territories of any country which is not a member of the Bank or for goods produced in, or services supplied from, such territories; or (b) for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import, to the knowledge of the Bank, is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations." Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "ARD" means Armenian Road Directorate, a public agency operating under the authority of the Borrower