Ghana - Education Sector Adjustment : Credit 1744 - Credit Agreement - 2 - Conformed

OFFICIAL DOCUMENTS NORWEGIAN GRANT RELATED TO CREDIT NUMBER 1744 GH Agreement for the Administration of Certain Funds to be made available by the THE KINGDOM OF NORWAY in Conjunction with the Education Sector Adjustment Credit in the REPUBLIC OF GHANA Dated , 1987 NORWEGIAN GRANT RELATED TO CREDIT NUMBER 1744 GH AGREEMENT AGREEMENT dated , 1987 between THE KINGDOM OF NORWAY (Norway) and e INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) to provide for the administration by the Association of certain funds to be made available by Norway to the Republic of Ghana (the Grantee). WHEREAS (A) the agreement dated October 2, 1986 between the Kingdom of Norway and International Bank for Reconstruction and Development and International Development Association provides the framework for cofinancing of development projects by the parties thereto; (B) Norway wishes to make available to the Grantee a grant in the amount of twenty five million Norwegian Kroner (NOK 25,000,000) (the Grant) to assist the Grantee in financing part of the goods and services required to carry out the Educa- tion Sector Adjustment Project (the Project) described in Sche- dule 2 to the Development Credit Agreement (Credit No. 1744 GH) dated March 9, 1987 between the Republic of Ghana and the Association (the Development Credit Agreement); (C) Norway wishes that the proceeds of the Grant should be incremental to the Credit extended for the same purposes by the Association pursuant to the Development Credit Agreement; and WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to administer the Grant upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Section 1.01. The Association, as administrator on behalf of Norway, shall enter into such agreement or agreements with the Grantee, as it may deem appropriate but consistent with the terms and conditions of the Development Credit Agreement (excluding the debt service provisions thereof) for the purpose of assisting in the financing of the Project. Such agreements with the Grantee shall, inter alia, provide that: (a) the proceeds of the Grant may be withdrawn by the Grantee to finance the reasonable cost of goods and services required for Part C of the Project in the Upper East, Upper West, and Northern Regions and otherwise - 2 - eligible for financing under the Development Credit Agreement; and (b) the amounts to be withdrawn need not be repaid and shall. bear no interest or other charges. A copy of each such agreement shall be furnished by the Association to Norway. Section 1.02. The Association, as administrator on behalf of Norway, shall have the sole responsibility for the supervision of the Project and shall keep Norway informed of the progress of the Project at least once a year. Section 1.03. The administration and enforcement of any pro- visions of any agreement entered into between the Grantee and the Association for the purposes of this Agreement shall be handled solely by the Association, and the Association specifically reserves the right, at its discretion and without notice to Norway, to exercise, refrain from exercising or waive alay rights under such agreement or to modify any provision thereof, pro- vided, however, that before suspending the right of the Grantee to make withdrawals of funds under such agreement, the Associa- tion shall inform Norway and afford Norway a reasonable oppor- tunity for consultation with the Association. Section 1.04. The Association shall exercise the same care in the discharge of i- functions under this Agreement as it exercises with respect to the administration and management of its own affairs and shall have no further responsibility to Norway in respect thereof. ARTICLE II Section 2.01. (a) For the purpose of this Agreement, Norway shall, subject to parliamentary appropriations, deposit an amount of twenty-five million Norwegian Kroner (NOK 25,000,000) in a general account with Norges Bank in the name of the Association (the T-Account). (b) Said amount shall be deposited in three tranches, each such tranche to be deposited not later than March 1 of each calendar year (CY) from CY 1987 through CY 1989 as follows: (i) nine million Norwegian Kroner (NOK 9,000,000) in CY 1987; (ii) eight million Norwegian Kroner (NOK 8,000,000) in CY 1988; and -3- (iii) eight million Norwegian Kroner (NOK 8,000,000) in CY 1989. (c) It is understood that the amount of each such tranche is based on the planned implementation schedule for the Project and may, after consultations between Norway and the Association, be adjusted to reflect actual progress made in Project imple- mentation. (d) The funds in the T-Account shall be freely exchangeable by the Association with other currencies as may facilitate their administration. Section 2.02. The Association shall disburse from the T-Account such amounts as from time to time shall be needed to meet the reasonable costs of goods and services financed or to be financed pursuant to Section 1.01 of this Agreement. Such disbursement shall be effected on the basis of withdrawal applications for eligible expenditures submitted by the Grantee to the Association in accordance with the Association's normal procedures for withdrawal of proceeds of credits made by the Association. Section 2.03. In order to assist in the defrayment of the costs of administration and other expenses incurred by the Association under this Agreement, the Association may invest and reinvest the funds in the T-Account pending their disbursement to the Grantee, and may retain for its own account the income from any such investment or reinvestment. ARTICLE III Section 3.01. (a) The Association shall: (i) maintain separate records and accounts in respect of the funds in the T-Account disbursed by the Association pursuant to the provisions of this Agreement; and (ii) promptly after the end of each fiscal year, furnish to Norway a statement of account on such records and accounts. (b) Promptly after all funds made available under this Agreement have been disbursed from the T-Account to the Grantee, the Association shall cause such records and accounts to be audited and certified by the Association's external auditors and shall furnish the report of such audit by said auditors to Norway. -4- ARTICLE IV Section 4.01. Norway and the Association shall consult from time to time at the request of each other on all matters arising out of this Agreement. ARTICLE V Section 5.01. This Agreement shall become effective as of the date first above written and, subject to the provisions of this Article, shall continue in effect until all funds made available under this Agreement have been disbursed from the T-Account to the Grantee. Section 5.02. If at any time it appears to either party that the purposes of this Agreement can no longer effectively or appropriately be carried out, this Agreement may be terminated at the initiative of such party on ninety days (90 days) notice in writing. Section 5.03. Upon termination of this Agreement, unless the parties agree on another course of action, any agreement or por- tion thereof entered into by the Association, as Administrator on behalf of Norway, shall be transferred to Norway and any funds or other property of Norway held hereunder by the Association shall be returned to Norway, and the Association's administration shall be considered terminated. Section 5.04. Promptly after all funds made available under this Agreement have been disbursed from the T-Account to the Grantee, the Association shall furnish to Norway a final report and a financial statement on the funds disbursed by the Association from the T-Account pursuant to the provisions of this Agreement, together with the auditor's report referred to in Section 3.01 (b) of this Agreement. ARTICLE VI Section 6.01. This Agreement may be amended only by written agreement of the parties hereto. Section 6.02. 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 -5- made when it shall be delivered by hand or by mail, telegram, cable or telex 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 addresses as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For Norway: The Royal Ministry of Development Cooperation P.O. Box 8142, Oslo Dep. 0033 Oslo 1 Norway Cable address: Telex: NORAD-N 74256 NORAD-N Oslo 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 undersigned duly authorized thereto, have signed this Agreement. THE KINDGOM OF NORWAY By ( Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION ( 1 Regional Vice President Africa INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Development Association. FOR SECRETARY