Uganda - Reconstruction Program : Credit 0983 - Development Credit Agreement - 2 - Conformed

OFFICI1AL CREDIT NUMBER 983 UG DOCUENTS CAN Development Grant Agreement (Reconstruction Program) between REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator on behalf if THE GOVERNMENT OF CANADA Dated , 1980 CREDIT NUMBER 983 UG CAN DEVELOPMENT GRANT AGREEMENT AGREEMENT, dated 2 , 1980, between REPUBLIC OF UGANDA (hereinafter called the Borrower) and INTERNATIONAL DEVEL- OPMENT ASSOCIATION, acting as Administrator on behalf of THE GOVERNMENT OF CANADA, (hereinafter called the Association). WHEREAS the Borrower has requested the assistance of the International Development Association and of the Government of Canada in the financing of a project described in Schedule 2 to the Development Credit Agreement of even date herewith between the Borrower and the International Development Association (herein- after called the IDA Credit Agreement); WHEREAS for this purpose, the International Development Association is prepared, out of its own resources, to extend to the Borrower a development credit (hereinafter called the IDA Credit) on the terms and conditions set forth in the IDA Credit Agreement, and the Government of Canada has authorized the Inter- national Development Association, acting as Administrator on behalf of the Government of Canada, to extend for the same purpose a development grant (hereinafter called the Grant) out of the Canadian Government development aid funds on the terms and condi- tions hereinafter set forth; and WHEREAS the Borrower has also requested the Association as Administrator of the Special Action Account established with funds contributed by the Members States of the European Economic Commu- nity to provide additional assistance towards the financing of the Project, and by an agreement of even date herewith between the Borrower and the Association, acting in such capacity (hereinafter called the Special Action Credit Agreement) the Association has agreed to provide such assistance in an aggregate principal amount equivalent to approximately twenty million United States dollars (US$20,000,000). 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 International Development Association, -2- dated March 15, 1974, with the same force and effect as if they were fully set forth herein, subject, however, to the following modifications thereof (said General Conditions Aplicable to Development Credit Agreements of the International Development Association, as so modified, being hereinafter called the General Conditions): (a) The term "Association", whenever used in the General Conditions, means the International Development Association acting as Administrator of Canadian Government development aid funds pursuant to an Agreement dated April 22, 1977, as amended by an Agreement dated March 8, 1978, each entered into between the Government of Canada and the International Development Associa- tion. (b) The term "Development Credit Agreement", whenever used in the General Conditions, means this Development Grant Agreement. (c) The term "Credit", whenever used in the General Condi- tions, means the Grant hereunder. (d) The term "Credit Account", whenever used in the General Conditions or in this Agreement, means the account opened by the Association in its books in the name of the Borrower to which the Amount of the Grant is credited. (e) The term "Project" means the project or program for which the Grant is extended, as described in the IDA Credit Agreement and as the description thereof may be amended from time to time by agreement between the Association and the Borrower. (f) Sections 3.02, 3.03, 3.04, 3.05, 4.01, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a) and 12.05 are deleted. (g) In Sections 2.01 (9) and 6.02, the term "Association" shall include also the International Development Association acting in its own capacity. ARTICLE II The Grant Section 2.01. The Association agrees to extend to the Bor- rower, on the terms and conditions herein set forth or referred - 3 - to a grant in an amount of three million Canadian dollars (Canadian$3,000,000). Section 2.02. (a) The amount of the Grant may be withdrawn from the Credit Account in accordance with the provision of Schedule 1 to the IDA Credit Agreement, as such Schedule may be amended from time to time by agreement among the parties, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods required for the Project and to be financed out of the proceeds of the Grant. (b) Withdrawals from the Credit Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Grant have been paid or are payable or, at the option of the Association, in Canadian dollars. Section 2.03. Except as the Association may otherwise agree, procurement of the goods required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the provisions of Schedule 3 to the IDA Credit Agreement. Section 2.04. The Closing Date shall be December 31, 1980 or such later date as the Association shall establish. The Asso- ciation shall promptly notify the Borrower of such later date. ARTICLE III Execution of the Project Section 3.01. Articles III and IV of the IDA Credit Agreement are hereby incorporated into this Agreement with the same force and effect as if they were fully set forth herein, it being understood that all references in such Articles III and IV to the "Association" shall be deemed to be reference to the Association, as Administrator on behalf of the Government of Canada under this Agreement, all references to the "Development Credit Agreement" shall be deemed to be reference to this Development Grant Agree- ment and all references to the "Credit" shall be deemed to be reference to the Grant hereunder. ARTICLE IV Effective Date; Termination; Representation Section 4.01. The following event is specified as an addi- tional condition to the effectiveness of this Agreement within the -4- meaning of Section 12.01 (b) of the General Conditions, namely, that all conditions to the effectiveness of the IDA Credit Agree- ment and of the EEC Special Action Credit, save for the effective- ness of this Agreement, have been fulfilled. Section 4.02. The date 1 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 4.03. This Agreement and all obligations of the Borrower and the Association hereunder shall terminate on the date on which the IDA Credit Agreement shall terminate in accordance with its terms. Section 4.04. The representative designated in Section 7.01 of the IDA Credit Agreement shall be the representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 4.05. The addresses specified in Section 7.02 of the IDA Credit Agreement shall be the addresses specified for the purposes of Section 11.01 of the General Conditions. Section 4.06. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the IDA Credit Agreement. ARTICLE V Transfer of Rights and Obligations Section 5.01. In accordance with the Agreement dated April 22, 1977, as amended as aforesaid, between the Government of Canada and the International Development Association, the rights and obligations of the Association under this Agreement may be transferred to the Government of Canada, or one of its agencies designated by it. The Borrower accepts and agrees that, upon notice by the Association to the Borrower to that effect, the Government of Canada (or the agency designated by it) shall ipso facto, from the date specified in such notice, be substituted in all rights and obligations of the Association under this Agreement as if the Government of Canada or such agency had been an original party to this Agreement, without any further action or formality required on the part of any party, and from such date the Interna- tional Development Association shall cease to have any rights or obligations as a party under this Agreement. -5- 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. REPUBLIC OF UGANDA By Authorized Representative INTERNATION DEVELOPMENT ASSOCIATION, as Administrator on behalf of THE GOVERNMENT OF CANADA By Regional Vice President Eastern Africa INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the a day of 198 2. FOR SECRETARY