Yugoslavia - Kosovo Regional Development Project : Loan 2306 - Agreement on Obligations of Kosovo Agreement - Conformed

0OTFV,IAL DOCU TS LOAN NUMBER 2306 YU Agreement on Obligations of the Socialist Autonomous Province of Kosovo in Connection with the Kosovo Regional Development Project (Kosovo Agreement) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and SOCIALIST AUTONOMOUS PROVINCE OF KOSOVO Dated , 9>) 1983 LOAN NUMBER 2306 YU AGREEMENT ON OBLIGATIONS OF THE SOCIALIST AUTONOMOUS PROVINCE OF KOSOVO IN CONNECTION WITH THE KOSOVO REGIONAL DEVELOPMENT PROJECT (KOSOVO AGREEMENT) AGREEMENT, dated ~ > , 1983, between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (herein- after called the Bank) and SOCIALIST AUTONOMOUS PROVINCE OF KOSOVO (hereinafter called KOSOVO). WHEREAS (A) by the Loan Agreement of even date herewith between the Bank and Udruzena Kosovska Banka Pristina (herein- after called the Borrower), the Bank has agreed to make available to the Borrower an amount in various currencies equivalent to seventy-nine million dollars ($79,000,000), on the terms and conditions set forth in the Loan Agreement, but on condition that Kosovo agree to undertake such obligations toward the Bank as are hereinafter set forth; (B) by a project agreement of even date herewith (herein- after called the Project Agreement) between the Bank and Zadruzni Savez Kosova (hereinafter called the Federation), the Federation has undertaken to assist the Borrower in carrying out Parts A, B, C and D (1) of the Project and to carry out Part D (2) of the Project, on the terms and conditions therein set forth; and WHEREAS Kosovo, in consideration of the Bank's entering into the Loan Agreement with the Borrower and the Project Agreement with the Federation, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the the Loan Agreement, the Preamble to this Agreement and the General Conditions (as so defined) have the respective meanings therein set forth. 2- ARTICLE II Execution of the Project Section 2.01. (a) Kosovo covenants it will not take, or cause or permit to be taken, any action which would prevent or interfere with the performance by the Borrower or the Federation of their respective obligations in the Loan Agreement and the Project Agreement; and that, within the limits of its constitu- tional or statutory powers, Kosovo will take or cause to be taken all appropriate action required for the carrying out of the Project and for enabling the Borrower and the Federation to perform their respective obligations under any such Agreement. (b) Kosovo shall promptly inform the Bank of any condition which interferes or threatens to interfere with, the progress of the Project, the accomplishment of the purposes of the Loan, or the performance by Kosovo of its obligations under this Agreement. Section 2.02. In order to provide regional coordination and policy guidance and to approve annual implementation plans for the Project, Kosovo shall maintain, or cause to be maintained, until the Closing Date, the Project Coordinating Committee and Project Commune Coordinating Committees, with membership and functions acceptable Lo the Bank. Section 2.03. By October 31, 1983 or such other date as may be agreed by the Bank, Kosovo shall cause its Bureau for Geodetic and Photogrammetric Work to furnish to the Bank the feasibility studies undertaken by such Bureau in connection with land con- solidation in the Communes of Vucitrn and Glogovac. Section 2.04. By September 30, 1983, or such other date as may be agreed by the Bank, Kosovo shall establish and maintain, or cause to be established and maintained, until the Closing Date, a Media Strategy Committee with membership and functions acceptable to the Bank. Section 2.05. Kosovo shall provide: (a) to the Federation, promptly as needed, the funds required for (i) the salaries and operating costs related to employment by the Federation of the specialists in its Project -3- Unit referred to in paragraph 3 of the Schedule to the Project Agreement, and (ii) the price-monitoring arrangements under Section 2.09 of the Project Agreement; and (b) to the COAL Hydro-Economy, Kosovo-Pristina, promptly as needed, the funds required for the employment, for a period of 3 years each, of a qualified and experienced hydrologist, civil engineer and economist. ARTICLE III Effective Date; Termination; Cancellation and Suspension Section 3.01. This Agreement shall come into force and effect on the date upon which the Loan Agreement becomes effective. Section 3.02. (a) This Agreement and all obligations of the Bank and of Kosovo thereunder shall terminate on the date on which the Loan Agreement shall terminate in accordance with its terms. (b) If the Loan Agreement terminates in accordance vith its terms before the date referred to in paragraph (a) of this Section, the Bank shall promptly so notify Kosovo. Section 3.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancella- tion or suspension under the General Conditions. ARTICLE IV Miscellaneous Provisions Section 4.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: -4- For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT), Washington, D.C. 248423 (RCA) or 64145 (WUI) For Kosovo: Executive Council of the Assembly Socialist Autonomous Province of Kosovo Mar'sala Tita 2 38000 Pristina Yugoslavia Cable address: Telex: Provincial Executive Council 18185 YU IVKOS PrisItina Yugoslavia Section 4.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of Kosovo may be taken or executed by its Secretary of Finance or such other person or persons as he shall designate in writing, and shall furnish to the Bank sufficient evidence of the authority and the authenticated specimen signa- ture of each such person. Section 4.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collectively but one instrument. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names ri -fie District -5- of Columbia, United States of America, as of the day and year first above written. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Regional Vice President Europe, Middle East and North Africa SOCIALIST AUTONOMOUS PROVINCE OF KOSOVO By Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Bank for Reconstruction and Develop- ment. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Bank thereunto this day of M , 198 FOR SECRETARY