Project Agreement, H091-NP - Conformed

Page 1 CONFORMED COPY GRANT NUMBER H091-NEP Project Agreement ( Poverty Alleviation Fund Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and POVERTY ALLEVIATION FUND Dated September 14, 2004 Page 2 2 Page 3 GRANT NUMBER H091 -NEP PROJECT AGREEMENT AGREEMENT, dated September 14, 2004, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and POVERTY ALLEVIATION FUND (PAF). WHEREAS (A) by the Development Grant Agreement of even date herewith between the KINGDOM OF NEPAL (the Recipient) and the Association, the Association has agreed to make available to the Recipient an amount in various currencies equivalent to ten million one hundred thousand Special Drawing Rights (SDR 10,100,000), on the terms and conditions set forth in the Development Grant Agreement, but only on condition that PAF agrees to undertake such obligations toward the Association as are set forth in this Agreement; and (B) by a Subsidiary Grant Agreement to be entered into between the Recipient and PAF, the proceeds of the Grant provided for under the Development Grant Agreement will be made available to PAF on the terms and conditions set forth in said Subsidiary Grant Agreement; WHEREAS PAF, in consideration of the Association