Honduras - Seventh Highway Project : Loan 1342 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1342 T-HO LOAN AGREEMENT (Seventh Highway Project) between REPUBLIC OF HONDURAS and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated December 16, 19T6 LOAN AGREEMENT AGREEMENT, dated December 16, 1976, between REPUBLIC OF HONDURAS (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS (A) by an agreement (hereinafter called the Standard Loan Agreement) of even date herewith between the Borrower and the Bank, the Bank is agreeing to assist in the financing of the Project described in Schedule 2 to the Standard Loan Agreement by making a loan (hereinafter called the Standard Loan) in an amount in various currencies equivalent to twenty-eight million dollars ($28,000,000); (B) the Borrower has also requested the Bank to provide additional financial assistance towards the financing of the foreign exchange cost of the Project by making the present Loan (hereinafter called the Third Window Loan) as hereinafter pro- vided; (C) the Bank has determined that the Borrower is eligible to receive the Third Window Loan as an intermediate term loan, as that term is defined in Resolution No. 75-111 of the Executive Directors of the Bank establishing an Interest Subsidy Fund for the Third Window (hereinafter called the Fund) and upon the terms and conditions set forth in such Resolution; -2- (D) the Administrator of the Fund (hereinafter called the Administrator), subject to the terms and conditions set forth in the Resolution referred to in (C) above, is obligated to pay to the Bank semi-annually from the resources of the Fund an amount equal to four per cent (4%) per annum of the outstanding amounts of principal on intermediate term loans, of which this Loan is one; (E) the Borrower and the Bank intend that the proceeds of the Standard Loan and of this Loan be disbursed pro rata on the basis of a 4:1 ratio; and WHEREAS the Bank has agreed, on the basis inter alia of the foregoing, to make the Third Window Loan to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: -3- ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guar- antee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, in the Standard Loan Agreement and in the Preamble to this Agreement have the respective meanings therein set forth. 01 ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Third Window Loan Agreement set forth or referred to, an amount in various currencies equivalent to seven million dollars ($7,000,000). Section 2.02. The amount of the Third Window Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to the Standard Loan Agreement, as such Schedule may be amended from time to time by agreement between the Bor- rower and the Bank, for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Third Window Loan. Section 2.03. Except as the Bank shall otherwise agree, contracts for the purchase of goods or for civil works to be fi- nanced out of the proceeds of the Third Window Loan, shall be procured in accordance with the provisions of Schedule 4 to the Standard Loan Agreement. Section 2.04. The Closing Date shall be December 31, 1981 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. -5- Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Third Window Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of four and seventy hundredths per cent (4.7%) per annum on the prin- cipal amount of the Third Window Loan withdrawn and outstanding from time to time; provided, however, that if the Administrator shall at any time determine that the resources of the Fund shall not be sufficient to pay to the Bank at the next succeeding semi- annual interest payment date of the Third Window Loan the amount scheduled to be paid by the Administrator at that interest payment date as specified in paragraph (D) of the Preamble to this Agree- ment, the Borrower shall, upon notification by the Administrator of such determination and the amount of the resulting shortfall, pay additional interest on such principal amount of the Third Window Loan equal to such shortfall. Section 2.07. Interest and other charges shall be payable. semi-annually on January 15 and July 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Third Window Loan in accordance with the amortization schedule set forth in Schedule 1 to this Agreement. - 6- AM!ICLE III Execution of the Project; Other Covenants Section 3.01. The provisions of Articles III and IV of the Standard Loan Agreement are hereby incorporated into this Agree- ment with the same force and effect as if they were fully set forth herein; provided, however, that fct purposes of this Agree- ment, any reference to the Standard Loan in any such provision shall be deemed to be a reference to the Third Window Loan pro- vided for in this Agreement. * -7- ARTICLE IV Effective Date; Termination Section 4.01. The following event is specified as an addi- tional condition to the effectiveness of the Third Window Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely, that all conditions precedent to the effec- tiveness of the Standard Loan Agreement, other than the effective- ness of this Ageement, shall have been fulfilled. Section 4.02. The date of March 16, 1977, is hereby specified for the purposes of Section 12.04 of the General Conditions. -8- ARTICLE V Representative of the Borrower; Addresses Section 5.01. The Secretary of Finance and Public Credit of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 5.02. The following addresses are specified 'for the purposes of Section 11.01 of the General Conditions: For the Borrower: Secretarfa de Hacienda y Credito Pdblico Tegucigalpa, D.C. Honduras Cable address: MINIHACIENDA Tegucigalpa Honduras For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INTBAFRAD Washington, D.C. () -9- IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF HONDURAS By /s/ Roberto Lazarus Bernhard Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Is/ Enrique Lerdau Acting Regional Vice President Latin America and the Caribbean - 10 SCHEDULE 1 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars) January 15, 1983 75,000 July 15, 1983 75,000 January 15, 1984 80,000 July 15, 1984 85,000 January 15, 1985 90,000 July 15, 1985 95,000 January 15, 1986 95,000 July 15, 1986 100,000 January 15, 1987 105,000 July 15, 1987 110,000 January 15, 1988 115,000 July 15, 1988 120,000 January 15, 1989 125,000 July 15, 1989 135,000 January 15, 1990 140,000 July 15, 1990 145,000 January 15, "91 155,000 July 15, 116o 16o,00o January 15, 1992 170,000 July 15, 1992 175,000 January 15, 1993 185,000 July 15, 1993 195,000 January 15, 1994 200,000 July 15, 1994 210,000 ,,avuary 15, 1995 220,000 JuIy 15, 1995 230,000 January 15, 1996 24o,ooo July 15. ./96 255,000 January 15, 1997 265,000 July 15, 19i97 280,000 January 15, 1998 290,000 July 15, 1998 305,000 January 15, 1999 320,000 July 15, 1999 335,000 * -11 - Payment of Principal Date Payment Due (expressed in dollars) January 15, 2000 350,000 July 15, 2000 365,000 January 15, 2001 405,000 -12- Premiums on Prepayment The following percentages are specified as the premiums pay- able on repayment in advance of maturity of any portion of the principal amount of the Third Window Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1.05% More than three years but not more than six years before maturity 2.10% More than six years but not more than eleven years before maturity 3.85% More than eleven years but not more than sixteen years before maturity 5.55% More than sixteen years but not more than twenty-one years before maturity 7.30% More than twenty-one years but not more than twenty-three years before maturity 8.00% More than twenty-three years before maturity 8.70%