Madagascar - Mangoky AGR Development Project : Credit 0881 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 881 MAG Development Credit Agreement (Mangoky Agricultural Development Project) between DEMOCRATIC REPUBLIC OF MADAGASCAR and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated May 17, 1979 nQ CREDIT NUMBER 881 MAG DEVELOPMENT CREDIT AGREEENT AGREEMENT, dated May 17, 1979, between the DEMOCRATIC REPUBLIC OF MADAGASCAR (hereinafter, called the Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) the Borrower has requested the Association to assist in the financing of the foreign exchange cost of an agricultural development project by extending the Credit as hereinafter provided; (B) by a Loan Agreement of even date herewith (hereinafter calle the Fund Loan Agreement), the International Fund for Agricultural Development (the Fund). has agreed to make a loan (hereinafter called the Fund Loan) to the Borrower in an aggregate principal amount of various currencies equivalent to five million Special Drawing Rights (as defined and as valued from time to time by the International Monetary Fund) (SDR5,000,000), to assist in financing the same project on the terms and conditions therein set forth; (C) the Borrower, the Association and the Fund have entered into, an agreement of even date herewith (hereinafter called the Joint Project Agreement) providing for the allocation, withdrawal and use of the Credit and of the Fund Loan and the execution of the project to be financed thereby as such project is described in Schedule 1 of said Joint Project Agreement (hereinafter called the Project), as well as other matters relating othereto; and WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit -2- Agreements of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used $,n this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, in the Preamble to this Agreement and in Section 1.01 (b), (d), (f), (g) and (h) of the Joint Project Agreement have the respective meanings therein set forth. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit' Agreement set forth or referred to, an,amount in various currencies equiva- lent to twelve million dollars ($12,000,000). Se-tion 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of the Joint Project Agreement. Section 2.03. Except as the Association shall othewwise agree, procurement of the goods and civil works to be financed out of the proceeds of the Credit, shall be governed by the provisions of Schedule 3 to the Joint Project Agreement. Section 2.04. The Closing Date shall be August 31, 1984 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semiannually on January 15 and July 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each January 15 and July 15 commencing July 15, 1989, and ending January 15, 2029, each installment to and including the installment payable on January 15, 1999, to be one-half of one per cent (1/2 of 1%) of -3- such principal amount, and each installment thereafter to "be one and one-half per cent (1-1/2%) of such_principal amount. Section 2.08. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditi ons. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project and shall duly perform all its other obligations set forth in the Joint Project Agreement as if they were fully set forth herein. ARTICLE \IV Remedies of the Association Section 4.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof: (a) SAMANGOKY shall have failed to carry out any of its obligations under the arrangements referred to in Section 3.01 (b) of the Joint Project Agreement; (b) any law or regulation governing the organization, administration or operations of SAMANGOKY, or its Statuts, shall have been modified or enacted in such a way as to impair the ability of SAMANGOKY to carry out its obligations under the arrangements referred to in Section 3.01 (b) of the Joint Project Agreement; and (c) (i) subject to subparagraph (ii) of this paragraph: (A) the right of the Borrower to withdraw the pro- ceeds of any grant or loan made to the Bor- rower for the financing of the Project shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the a-reement providing therefor, or (B) any such loan shall have become due "and payable prior to the agreed maturity thereof; F1i -4- (ii) subparagraph (i) of this paragraph shall not apply if: (A) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement, and (B) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. Section 4.02. For the purposes of Section 7.01 of the General Conditions, the following additional events are specified pursuant to paragraph (d) thereof: (a) the event specified in paragraph (a) of Section 4.01 of this Agreement shall occur and shall continue for a period of 30 days after notice thereof shall have been given by the Association to the Borrower; and (b) any event specified in paragraph (b) or paragraph (c) (i) (B) of Section 4.01 of this Agreement shall occur. ARTICLE V Effective Date; Termination Section 5.01. The following event is specified as an addi- tional condition to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that the arrangements referred to in Section 3.01 (b) of the Joint Project Agreement have been entered into by the parties thereto. Section 5.02. The following are specified as additional matters, within the meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion or opinions to be furnished to the Association: (a) that the Fund Loan Agreement and the Joint Project Agreement have been duly authorized or ratified and signed on behalf of the Borrower and are legally binding upon the Borrower in accordance with their terms; and (b) that the arrangements referred to in Section 3.01 (b) of the Joint Project Agreement have been duly authorized or ratified and signed on behalf of the parties thereto and constitute binding -5- obligations of the Borrower and of SAMANGOKY in accordance with their terms. Section 5.03. The date September 31, 1979, is hereby speci- fied for the purposes of Section 12.04 of the General Conditions. Section 5.04. The provisions of Section 4.02 of this Agree- ment shall cease and determine on the date on which the Develop- ment Credit Agreement shall terminate or on a date ten years after the date of this Agreement, whichever shall be the earlier. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for Finance is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere aupres de la Presidence de la Rfpublique Charge des Finances et du Plan Antananarivo Madagascar Cable address: Telex: MINFINPLAN 22339 Antananarivo 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- IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement 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. DEMOCRATIC REPUBLIC OF MADAGASCAR By /s/ Norbert Rakotomalala Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Andrg Gug Acting Regiotial Vice President Eastern Africa