Conformed Copy - C3588 - Energy for Rural Transformation Project - Global Environment Facility Trust Fund Grant Agreement

Page 1 CONFORMED COPY GEF TRUST FUND GRANT NUMBER TF 050371 UG Global Environment Facility Trust Fund Grant Agreement (Energy for Rural Transformation Project) between THE REPUBLIC OF UGANDA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT acting as an Implementing Agency of the Global Environment Facility Dated December 20, 2001 GEF TRUST FUND GRANT NUMBER 050371 UG GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT AGREEMENT AGREEMENT, dated December 20, 2001 between THE REPUBLIC OF UGANDA (the Recipient) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) acting as an implementing agency of the Global Environment Facility (GEF) in respect of grant funds provided to the GEF Trust Fund by certain members of the Bank as participants of the GEF. WHEREAS (A) the Bank, pursuant to Resolution No. 91-5 of March 14, 1991 of the Executive Directors of the Bank, established the GEF to assist in the protection of the global environment and promote thereby environmentally sound and sustainable economic development; (B) following the restructuring of the GEF, such arrangements continued in place on the basis set forth in Resolution No. 94-2 of May 24, 1994, of the Executive Directors of the Bank which, inter alia, established the GEF Trust Fund and appointed the Bank as trustee of the GEF Trust Fund (Resolution No. 94-2); (C) the second replenishment of the GEF Trust Fund was approved on the basis set forth in Resolution No. 98-2 of July 14, 1998, of the Executive Directors of the Bank (Resolution No. 98-2); (D) the Bank has received from the Recipient a letter, dated April 4, 2001, describing a program of actions, objectives and policies designed to reform and improve the provision of energy for the transformation of the rural sector of its economy (the Program) and declaring the Recipient's commitment to the execution of the Program; Page 2 (E) the Recipient, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement (the Project), has requested assistance from the resources of the GEF Trust Fund for funding the Project, and said request having been approved in accordance with the provisions of the Instrument for the Establishment of the Restructured Global Environment Facility approved under Resolution 94-2, and to be funded from contributions to the GEF Trust Fund under Resolution No. 98-2, which may include funds carried over from the first replenishment of the GEF Trust Fund under Resolution No. 94-2; (F) The Recipient has also requested the International Development Association (the Association) to provide additional financing towards the financing of the Project, and by an agreement (the Development Credit Agreement) of even date herewith between the Recipient and the Association, the Association has agreed to provide such assistance in an aggregate amount equivalent to thirty-eight million three hundred thousand Special Drawing Rights (SDR 38,300,000); (G) Part G.1 of the Project will be carried out by the Private Sector Foundation (PSF) with the Recipient