Conformed Copy - N011 - Agriculture Productivity Improvement Project - Interim Fund Development Credit Agreement

Page 1 CONFORMED COPY INTERIM FUND CREDIT NUMBER N011 KH Interim Fund Development Credit Agreement (Agriculture Productivity Improvement Project) between KINGDOM OF CAMBODIA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Interim Trust Fund established with funds contributed by certain members of the International Development Association pursuant to Resolution No. IDA 184 of the Board of Governors of the International Development Association Dated March 26, 1997 INTERIM FUND CREDIT NUMBER N011 KH INTERIM FUND DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated March 26, 1997, between KINGDOM OF CAMBODIA (the "Borrower") and INTERNATIONAL DEVELOPMENT ASSOCIATION (the "Association") as administrator (the "Administrator") of the interim trust fund (the "Interim Fund") established with funds contributed by certain members of the Association pursuant to Resolution No. IDA 184 (the "Interim Fund Resolution") of the Board of Governors of the Association, adopted on June 26, 1996. WHEREAS: (A) By the Interim Fund Resolution the Interim Fund has been established, constituted of the funds contributed by certain members of the Association and administered by the Association acting as Administrator of the Interim Fund, in accordance with the provisions of the Interim Fund Resolution; WHEREAS: (B) The Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Administrator to assist in the financing of the Project through the provision of resources from the Interim Fund, and the Administrator has determined that such assistance would be in accordance with the provisions of the Interim Fund Resolution; WHEREAS: (C) By an agreement dated September 27, 1996 (the "IFAD Loan Agreement"), the International Fund for Agricultural Development ("IFAD") has agreed to make a loan (the "IFAD Loan") in an amount equivalent to three million three hundred thousand Special Drawing Rights (SDR 3,300,000) to assist in the financing of Part B of the Project, on the terms and conditions set forth in the IFAD Loan Agreement; and WHEREAS: (D) The Administrator has agreed, on the basis, inter alia, of the foregoing, to extend the Interim Fund Credit to the Borrower upon the terms and conditions set forth in this Agreement. NOW THEREFORE the parties hereto hereby agree as follows: Page 2 ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985, with the modifications set forth below (the "General Conditions") constitute an integral part of this Agreement: (a) The term "Association", wherever used in the General Conditions means the International Development Association acting as Administrator of the Interim Fund referred to in the Preamble to this Agreement; (b) The terms "Development Credit Agreement", "Credit" and "Credit Account", wherever used in the General Conditions, are amended to read "Interim Fund Development Credit Agreement", "Interim Fund Credit" and "Interim Fund Credit Account", respectively; (c) A new paragraph, numbered 15, is added to Section 2.01 to read as follows: "15. "Participating Country" means any country that meets the requirements set forth in Section 5(e) of Resolution No. IDA 184 of the Board of Governors of the Association, adopted on June 26, 1996, as determined by the Administrator from time to time; and "Participating Countries" means, collectively, all such countries;" (d) The last sentence of Section 3.02 is deleted. (e) The second sentence of Section 5.01 is modified to read: "Except as the Administrator 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 Participating Country 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 Administrator, is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations." (f) In Sections 6.02 and 7.01 of the General Conditions, the term "Association" shall also mean the International Development Association acting in its own capacity. 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, wherever used in this Agreement, have the following meanings: (a) "DAHP" means the Borrower