Conformed Copy - L4403- Fes Rehabilitation Project - Guarantee Agreement

Page 1 CONFORMED COPY LOAN NUMBER 4403-MOR Guarantee Agreement (Fes Rehabilitation Project) between KINGDOM OF MOROCCO and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated December 10, 1998 LOAN NUMBER 4403-MOR GUARANTEE AGREEMENT AGREEMENT, dated December 10, 1998, between KINGDOM OF MOROCCO (the Guarantor) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank). WHEREAS (A) the Guarantor and the Commune Urbaine of Fes-Medina (the Borrower), having been satisfied as to the feasibility and priority of the Project described in Schedule 2 to the Loan Agreement, have requested the Bank to assist in the financing of the Project; (B) by the Loan Agreement of even date herewith between the Bank and the Borrower, the Bank has agreed to extend to the Borrower a loan in French Francs equal to forty million nine hundred thousand French Francs (FRF40,900,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that the Guarantor agrees to guarantee the obligations of the Borrower in respect of such loan as provided in this Agreement; and WHEREAS the Guarantor, in consideration of the Bank