Senegal - Second Structural Adjustment Credit : Credit 1656 - Dutch Grant Agreement - Conformed

OFFINIAL DOJCUME,NI DUTCH GRANT CREDIT NUMBER 1656-1 SE Dutch Grant Agreement (Senegal - Second Structural Adjustment Credit) between REPUBLIC OF SENEGAL and INTERNATIONAL DEVELOPHENT ASSOCIATION as Administrator of Dutch Funds provided by the MINISTER OF DEVELOPMENT COOPERATION OF THE NETHERLANDS Dated 1986 DUTCH GRANT CREDIT NUMBER 1656-1 SE DUTCH GRANT AGREEKMNT AGREEMENT, dated 4 *k o4u. , 1986, between REPUBLIC OF SENEGAL (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator (the Administrator) of the Dutch Grant (as hereinafter defined) provided by the Minister for Development Cooperation of the Netherlands (the Minister). WHEREAS the Borrower has requested the assistance of the International Development Association (the Association) and of the Minister in the financing of the Program of structural adjustment of the Borrower's economy, described in a letter from the Borrower to the Association dated December 19, 1985 (the Program); WHEREAS the Association acting as Administrator of the Special Facility for Sub-Saharan Africa has granted an African Facility Credit for this purpose on the terms and conditions set forth in an African Facility Credit Agreement dated February 26, 1986 between the Borrower and the Association acting as Adminis- trator of the Facility for Sub-Saharan Africa (the African Facility Credit Agreement); WHEREAS the Minister wishes to make available to the Borrower a structural adjustment grant in the amount of twenty- five million Dutch Guilders (the Dutch Grant) to assist the Borrower in carrying out the Program on the terms and conditions hereinafter set forth; WHEREAS by an arrangement of even date herewith between the Minister and the Association, the Minister has requested the Association, and the Association has accepted, to administer the Dutch Grant in accordance with the provisions of that arrange- ment. WHEREAS the Borrower acknowledges that the financial assist- ance extended to the Borrower under this Dutch Grant Agreement shall be considered as part of the bilateral development aid extended by the Government of the Netherlands to the Borrower; NOW THEREFORE the parties hereto hereby agree as follows: -2- ARTICLE I General Conditions; Definitions Section 1.01. The General Conditions Applicable to Develop- ment Credit Agreements of the Association, dated January 1, 1985 (the General Conditions) constitute an integral part of this Agreement subject, however, to the following modifications thereof: (a) the term "Association", wherever used in the General Conditions, means the International Development Association acting as Administrator of the Dutch Grant pursuant to the agree- ment of even date herewith between the Minister and the Associa- tion, except in the phrase "member of the Association" in Sec- tiois 2.01 (5), 4.02 (b) and 6.02 (e); (b) the term "Development Credit Agreement" whenever used in the General Conditions, means this Agreement; (c) the term "Credit", whenever used in the General Condi- tions, means the Dutch Grant extended to the Borrower under this Agreement; (d) the term "Credit Account", whenever used in the General Conditions, means the account opened by the Administrator in its books in the name of the Borrower to which the amount of the Dutch Grant is credited; (e) Section 2.01, paragraph 9, shall be modified to read: "'Project' means the imports and other activities 'that may be financed out of the proceeds of the Dutch Grant pursuant to the provisions of Schedule 1 to the African Facility Credit Agreement"; (f) the second sentence of Section 5.01 is deleted; (g) in Section 6.02 the term "Association" shall also include the International Development Association acting in its own capacity; (h) Section 9.06 (c) shall be modified to read: "(c) Not later than six months after the Closing Date or such later date as may be agreed for-this purpose between -3 - the Borrower and the Administrator, the Borrower shall pre- pare and furnish to the Administrator a report, of such scope and in such detail as the Administrator shall reason- ably request, on the execution of the program referred to in the Preamble to the Dutch Grant Agreement, the performance by the Borrower and the Administrator of their respective obligations under the Dutch Grant Agreement and the accom- plishment of the purposes of the Dutch Grant"; and (i) Sections 3.02, 3.03, 3.04, 3.05, 4.01, 4.02, 4.03, 4.06, 6.05, 7.01, 8,01 (a) and 12.05 are deleted. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement and in the African Facility Credit Agreement have the respective mean- ings therein set forth and "Special Account" means the account referred to in Section 2.02 (b) of this Agreement. ARTICLE II The Grant Section 2.01. The Administrator agrees to extend to the Borrower, on the terms and conditions herein set forth or refer- red to, a grant in an amoutt of twenty-five million Dutch Guilders (Dfls 25,000,000). Section 2.02. (a) The amount of the Dutch Grant may be with- drawn from the Credit Account in accordance with the provisions of the Schedule to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Admiaistrator. (b) The Borrower shall, for the purposes of the Program, open and maintain in convertible CFAF a special account in the Central Bank on terms and conditions satisfactory to the Adminis- trator. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 4 to the African Facility Credit Agreement, it being understood that the references in said Schedule to "African Facility Credit," "African Facility Credit Account," "Administrator" and "Autho- rized Allocation" shall be deemed to be references to the Dutch Grant, the Credit Account, the Administrator of the Dutch Grant, and 700,000,000 CFAF, respectively. -4- Section 2.03. (a) Except as the Administrator shall other- wise agree, contracts for goods and services to be financed out of the proceeds of the Dutch Grant shall be procured in accor- dance with the provisions of Schedule 2 to the African Facility Credit Agreement which is hereby incorporated into this Agreement with the same force and effect as if it were fully set forth herein, it being understood that the references in said Schedule to the "Administrator", the "African Facility Credit Account" and the "Special Account" shall be deemed to be references to the Association acting as Administrator of the Dutch Grant, the Credit Account and the Special Account referred to in Section 2.02 (b) of this Agreement, respectively, and the reference to Section 2.02 (b) in the African Facility Credit Agreement shall be deemed to be a reference to Section 2.03 (b) of this Agree- ment. (b) Withdrawals from the Credit Account shall be made only on account of expenditures for goods produced in, or services supplied from, the territories of: (i) any Part II member of the Association; or (ii) any country designated by the Administrator as meeting the provisions set forth in paragraphs 4 (f) (ii) and (iii) of Resolution No. IDA 85-1 of May 21, 1985 of the Executive Directors of the Association. (c) If the Administrator shall have reasonably determined that the procurement of any item is inconsistent with the proce- dures set forth or referred to in paragraphs (a) and (b) above, no expenditures for such item shall be financed out of the pro- ceeds of the Dutch Grant, and the Administrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under this Agreement, by notice to the Borrower, cancel such amoun. of the Dutch Grant as, in the Administrator's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Dutch Grant. Section 2.04. The Closing Date shall be June 30, 1987 or such later date as the Administrator shall establish. The Administra- tor shall promptly notify the Borrower of such later date. Section 2.05. (a) The national general director for Senegal of the Central Bank is designated as representative of the Bor- rower for the purposes of taking any action required or permitted -5- to be taken under the provisions of Section 2.02 of this Agree- ment and Article V of the General Conditions. (b) Without limitation or restriction to the foregoing, the Borrower hereby entrusts the Central Bank with responsibility for the preparation of withdrawal applications under the Dutch Grant and for the collection of the documents and other evidence to be furnished to the Administrator in support of such applications; such withdrawal applications shall to the extent practicable be consolidated so as to apply for withdrawal of aggregate amounts of not less than CFAF 325,000,000. ARTICLE III Execution of the Project Section 3.01. Except as otherwise expressly provided herein, Articles III and IV of the African Facility Credit Agreement are hereby incorporated into this Agreement with the same force and effect as if they were fully set forth herein, it being under- stood that all refer-ices in said Articles III and IV to "the Administrator" shall be deemed to be references to the Associa- tion acting as Administrator of the Dutch Grant under this Agreement and all references to the "African Facility Credit" and the "African Facility Credit Account" shall be deemed to be references to the Dutch Grant and the Credit Account, respec- tively. Section 3.02. The Borrower shall make the proceeds of the Dutch Grant available to the Central Bank under arrangements satisfactory to the Administrato.. The Borrower shall exercise its rights under such arrangements in such manner as to protect the interests of the Borrower and the Administrator and to accom- plish the purposes of the Dutch Grant. ARTICLE IV Representation; Transfer of Rights and Obligations Section 4.01. The Minister or the Secretary of State for Economy and Finance of the Borrower shall be the representative of the Borrower for the purposes of Section 11.03 of the General Conditions. -6- Section 4.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere de l'Economie et des Finances Rue Charles Lain6 B. P. 4017 Dakar, Senegal Cable address: Telex: MINIFINANCES 3203 SG Dakar, Senegal For the Administrator: 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) Section 4.03. in accordance with the arrangement referred to in the Preamble of this Agreement between the Minister and the Administrator, the rights and obligations of the Administrator under this Agreement may be transferred to the Minister. The Borrower accepts and agrees that, upon notice by the Administra- tor to the Borrower to that effect, the Minister shall, ipso facto, from the date specified in such notice, be substituted in all rights and obligations of the Administrator under this Agree- ment as if the Minister had been an original party to this Agree- ment, without any further action or formality required on the part of any party, and from such date the Adm:Lnistrator shall cease to have any rights or obligations as a party under this Agreement. - 7 - ARTICLE V Effectiveness Section 5.01. This Agreement shall become effective as of the date first above written and shall continue in effect until the Dutch Grant has been fully disbursed and the parties to this Agreement have fulfilled their obligations hereunder. IN WITNESS WHEREOF, the part'es hereto, acting thrcugh 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 anj year first above written. REPUBLIC OF SENEGAL By A/ r b / Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Dutch Grant By /S/ Y Regional Vice President Western Africa - 8 - SCHEDULE Wittdrawal of the Proceeds of the Dutch Grant 1. Subject to the provisions set forth or referred to in this Schedule, the proceeds of the Dutch Grant may be withdrawn from the Credit Account for expenditures made (or, if the Administra- tor shall so agree, to be made) in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of such proceeds. 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: (a) expenditures for goods included in the following SITC groups or sub-groups: Group Sub-group Description of Items 112 - Alcoholic beverages 121 - Tobacco, unmanufactured tobacco refuse 122 - Tobacco, manufactured 667 - Pearls, precious and semi- precious stones, unworked or worked 688 - Uranium depleted in U235 and thorium, and their alloys, unwrought or wrought., and articles therefor, n.e.s.; waste and scrap of uranium depleted in U235 and of thorium 718 718.7 Nuclear reactors, and parts thereof, n.e.s. 897 897.3 Jewelry of gold, silver or platinum group metals (except watches and watch cases) and goldsmiths' or silversmiths' wares (including set gems) 971.0 Gold, non-monetary (excluding gold ores and concentrates) -9- (b) expenditures in the currency of the Borrower or for goods supplied from the territory of the Borrower; provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods are supplied, expenditures in such currency for such goods shall be eligible for financing out of the proceeds of the Dutch Grant; (c) payments made for expenditures prior to January 1, 1986; (d) expenditures for goods procured under contracts costing less than $10,000 equivalent; (e) expenditures for goods supplied under a contract which any national or international financing institution or agency other than the Administrator shall have financed or agreed to finance; and (f) expenditures for goods intended for a military or para-military purpose or for luxury consumption. INTERNA IONAL 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