Malawi - Third Structural Adjustment Program : Credit 1644 - Credit Agreement - 3 - Conformed

OFFICIAL DOCUMENTS C. /6&,-yl?/ AFRICAN FACILITY CREDIT NUMBER A-9 MAI (Amendment) Agreement Amending African Facility Credit Agreement (Third Structural Adjustment Program) between REPUBLIC OF MALAWI and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FACILITY FOR SUB-SAHARAN AFRICA Dated /$, 1987 AGREEMENT AMENDING AFRICAN FACILITY CREDIT AGREEMENT AGREEMENT, dated /3, 1987, between REPUBLIC OF KALAWI (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FACILITY FOR SUB-SAHARAN AFRICA (the Administrator). WHEREAS: (A) the Borrower and the Administrator have entered into an African Facility Credit Agreement (Third Structural Adjustment Program), dated December 20, 1985 (the African Facility Credit Agreement), in an amount of thirty-seven million four hundred thousand Special Drawing Rights (SDR 37,400,000) for the purpose of assisting in the financing of the program (hereinafter called the Program) described in a letter, dated November 1, 1.985, from the Borrower to the Administrator and referred to in the Preamble to the African Facility Credit Agreement; (B) the Administrator has received a letter, dated December 24, 1986, from the Borrower, whereby the Borrower has requested supplemental assistance in support of the Program; (C) the Borrower intends to receive additional financing for the Program from Japan, under the Special Joint Financing Agreement for the Special African Facility, in the form of a grant in an amount of five hundred million yen (Yen 500,000,000) and a loan in an amount of two billion two hundred million yen (Yen 2,200,000,000); (D) the Borrower intends to contract from Kreditanstalt flr Wiederaufbau (hereinafter called KFW) a financial contri- bution from the Federal Republic of Germany, under the Special Joint Financing Agreement for the Special African Facility (the KFW Supplemental Financial Contribution), in an amount equivalent to ten million deutsche mark (DM 10,000,000) in support of the Program on the terms and conditions set forth in an agreement (the Supplemental KFW Agreement) to be entered into between the Borrower and KFW; -2- (E) tho Borrower intends to contract from the Overseas Development Administration (hercinafter called ODA) a finan- cial contribution from the United Kingdom, under the Special Joint Financing Agreement for the Special African Facility (the ODA Financial Contribution), in an amount equivalent to five million pounds sterling (E5,000,000) in support of the Program on the terms and conditions set forth in an agreement (the ODA Agreement) to be entered into between the Borrower and ODA; and WHEREAS the Administrator has agreed on the basis, inter alia, of the foregoing, to provide such additional assistance to the Borrower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Amendments to the African Facility Credit Agreement Section 1.01. Section 1.02 of the African Facility Credit Agreement is amended by adding a new Subsection (g) and a new Subsection (h) as follows: "(g) "Amending Agreement" means the Agreement amending the African Facility Credit Agreement (Third Structural Adjustment Program) between the Borrower and the Administrator, dated 1987; and (h) "Program" means the program of actions, objectives and policies designed to achieve structural adjustment of the Borrower's economy described in the Borrower's letter to the Administrator, dated November 1, 1985, and includes the supple- mental actions, objectives and policies designed to achieve agricultural marketing and pricing reform described in the Borrower's letter to the Administrator, dated December 24, 1986." Section 1.02. Section 2.01 of the African Facility Credit Agreement is amended to read as follows: -3- "Section 2.01. The Administrator agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the African Facility Credit Agreement, an amount in various currencies equivalent to forty-five million seven hundred thousand Special Drawing Rights (SDR 45,700,000) in two tranches, the first tranche being an amount in various currencies equivalent to thirty-seven million four hundred thousand Special Drawing Rights (SDR 37,400,000) (the First Tranche), and the second tranche being an amount in various currencies equivalent to eight million three hundred thousand Special Drawing Rights (SDR 8,300,000) (the Second Tranche)." Section 1.03. Section 2.02 of the African Facility Credit Agreement is amended by adding a new paragraph (d) as follows: "(d) Except as the Borrower and the Administrator shall otherwise agree, all amounts withdrawn from the African Facility Credit Account or made subject to a special commitment pursuant to Section 5.02 of the General Conditions shall initially be charged against the First Tranche until that Tranche has been exhausted, and shall thereafter be charged against the Second Tranche." Section 1.04. A proviso is added at the end of paragraph (a) of Section 2.04 reading as follows: "; provided, however, that commitment charges in the Second Tranche shall accrue from a date sixty days after the date of the Amending Agreement." ARTICLE II Effective Date; Termination Section 2.01. This Amending Agreement shall not become effective until evidence satisfactory to the Administrator shall have been furnished to the Administrator that the execution and delivery of this Amending Agreement on behalf of the Borrower have been duly authorized or ratified by all necessary governmental action. Section 2.02. As part of the evidence to be furnished pursuant to Section 2.01 of this Amending Agreement, there shall be furnished to the Administrator an opinion or opinions , satisfactory to the Administrator, of counsel acceptable to the Administrator showing, on behalf of the Borrower, that this Amending Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and is legally binding upon the Borrower in accordance with its terms. Section 2.03. This Amending Agreement shall come into force and effect on the date upon which the Administrator dispatches to the Borrower notice of its acceptance of the evidence required by Section 2.01 above. Section 2.04. If this Amending Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Amending Agreement, this Amending Agreement and all obligations of the parties hereunder shall terminate, unless the Administrator establishes a later date for the purposes of this Section. If this Amending Agreement shall terminate under the provisions of this Section, the African Facility Credit Agreement shall continue in full force and effect, as if this Amending Agreement had not been executed. -5- IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Amending 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 MALAWI Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FACILITY FOR SUB-SAHARAN AFRICA By /4/ Regional Vice President (/ Eastern and Southern Africa