Niger - Irrigation Project : Credit 0851 - Development Credit Agreement - Conformed

CONFORMED COPY Cofinancing Agreement (Irrigation Project - Republic of Niger) between KREDITANSTALT FUR WIEDERAUFBAU and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated July 24, 1979 COFINANCING AGREEMENT AGREEMENT, dated July 24, 1979, between KREDITANSTALT FUR WIEDERAUF8AU (hereinafter called Kreditanstalt) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association): WHEREAS (A) by the Development Credit Agreement (hereinafter called the Development Credit Agreement) dated February 15, 1979, between the Republic of Niger (hereinafter called the Borrower) and the Association, the Association agreed to make available to the Borrower a development credit (hereinafter called the Development Credit) in various currencies equivalent to fifteen million United States dollars (US$15,000,000) to assist in the financing of an irrigation project (hereinafter called the Project) as more fully described in the Description of the Project set out in Schedule 2 to the Development Credit Agreement; (B) by a Financing Agreement dated June 20, 1979, between the Borrower and Kreditanstalt (hereinafter called the Kre- ditanstalt Agreement), Kreditanstalt agreed to make a contribution to the Borrower in an amount not exceeding twelve million five hundred thousand Deutsche Mark (DM12,500,000) (hereinafter called the Kreditanstait Contribution) to assist in financing the Project on terms and conditions set forth in the Kreditanstalt Agreement; (C) the proceeds of the Kreditanstalt Contribution are to be used to finance, jointly and pari passu with the proceeds of the Development Credit, all parts of the Project except for the costs of the Financial Coordinator; and WHEREAS Kreditanstalt and the Association consider it neces- sary to coordinate the administration of the Kreditanstalt Contri- bution and the Development Credit and to maintain effeotive cooperation between themselves on the basis of full partnership as hereinafter provided; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Coordination; Exchange of Information; Consultation '-etion 1.01. (a) Each party hereto, without assuming any liability for the due carrying out of the Project shall: (i) keep -2- the other party currently informed of the progress of the Project; (ii) exchange views with the other party from time to time with respect to the progress of the Project; and (iii) provide the other party with any information thereon that may appear useful. (b) Each party shall inform the other party of any proposed supervision mission in ample time to afford the other party the opportunity to participate therein, and shall exchange views on the results of each such mission. (c) Each party shall inform the other party of any event likely to interfere with the carrying out of the Project, or hinder or seriously impair its operation or financing. (d) Each party shall inform the other party of any notice by the Borrower to cancel or to prepay the whole or any part of the Kreditanstalt Contribution or the Development Credit, as the case may be, and of any amount cancelled or prepaid. Section 1.02. Each party shall inform, and to the extent possible, consult, the other party prior to: (a) (i) suspending in whole or in part the right of the Borrower to make withdrawals under the Kreditanstalt Contribution or the Development Credit, respectively; (ii) cancelling any amount of the Kreditanstalt Contri- bution or of the Development Credit; or (iii) demanding repayment or accelerating the maturity of the Kreditanstalt Contribution or of the Development Credit. (b) taking any action which would or might result in the termination of the Kreditanstalt Agreement or the Development Credit; (c) making any substantial amendment to the Kreditanstalt Agreement or to the Development Credit Agreement or waiving any provision set forth in any such agreement if such waiver may substantially effect the carrying out of the Project; or (d) agreeing to any important changes: -3- (i) in the specifications, cost or nature of the works included in the Project; or (ii) in the work schedules for the Project as compared with the prior forecasts. Section 1.03. In addition, each party may at any time consult the other party on any matter of common interest. ARTICLE 2 Procurement and Disbursement Section 2.01. Bidding procedures for the procurement of the goods and services to be financed jointly by the Kreditanstalt and the Association will be as set forth in the Kreditanstalt Agreement and the Development Credit Agreement. Section 2.02. In addition to the provisions contained in the Kreditanstalt Agreement and the Development Credit Agreement, the following rules will also apply to joint financing of goods and services by the Kreditanstalt and the Association: (a) All contracts for procurement of goods and services will be subject to approval by the Kreditanstalt and the Association before making any disbursements therefor. (b) The Borrower will forward simultaneously to the Kreditanstalt and the Association separate applications for reimbursement in amounts bearing the proportion of 30 to 70 for the Kreditanstalt and the Association, respectively, except for applications for reimbursement for payment of services of the Financial Coordinator and for refunding of the advance for Project preparation, in which cases the Association will receive appli- cations for reimbursement for 100% of such expenditures. (c) Upon being satisfied that an application conforms with the provisions of its respective Agreement, the Kreditanstalt and the Association will, in accordance with such provisions reimburse the Borrower for such amounts as the Borrower shall be entitled to receive thereunder. Section 2.03. In such cases as the Kreditanstalt and the Association shall agree, Kreditanstalt and the Association will honor the Borrower's request to make payments directly to a -4- supplier in amounts in the proportion specified in Section 2.02 (b) of this Agreement. If the supplier requests the opening of a commercial letter of credit, the Kreditanstalt and the Association will, if they agree to do so, issue agreements to reimburse thereunder in the same proportion. Any amendment to any such letter of credit is subject to prior approval thereof by the Kreditanstalt and the Association. Section 2.04. If at any time the amount of the Kreditanstalt Contribution or the Development Credit shall be fully withdrawn, applications by the Borrower for further withdrawals shall be deemed to be requests for withdrawal of the full amount from the Kreditanstalt Contribution or the Development Credit, as the case may be. Section 2.05. The Kreditanstalt and the Association will furnish each other detailed information at least every six months, or at any time on request, on all disbursements made under the Kreditanstalt Contribution and the Development Credit, res- pectively. ARTICLE III Exchange of Consents Section 3.01. Each party shall reach an agreement with the other party before giving its agreement to any request of the Borrower for a modification of Schedule 2 to the Development Credit Agreement or of Article 1.2 of the Kreditanstalt Agreement. ARTICLE IV Effectiveness Section 4.01. This Agreement, which shall take effect upon its signature by both parties, shall remain in force and effect between Kreditanstalt and the Association until the termination of the Kreditanstalt Agreement or of the Development Credit Agreement, whichever is earlier. ARTICLE V Miscellaneous Section 5.01. Any notice required under this Agreement and any agreement contemplated by this Agreement shall be in writing. -5- Such notice shall be deemed to have been duly given when it shall be delivered by hand or by mail, telegram, cable or radiogram to the party to which it is required to be given at such party's address specified below, or at such other address as such party shall have designated by notice to the party giving such notice. For Kreditanstalt: Kreditanstalt fUr Wiederaufbau Palmengartenstrasse 5-9 6000 Frankfurt/Main Federal Republic of Germany Cable address: Telex: KREDITANSTALT 411352 Frankfurtmain For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) -6- Done in two copies in the English Language each which shall constitute an original and shall be equally authentic. KREDITANSTALT FUR WIEDERAUFBAU By /s/ Gurlitt Authorized Representative By Is! v. Laue Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ R. Chaufournier Regional Vice President Western Africa