Conformed Copy - C1844 - Economic Recovery Program - Second Agreement Amending Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 1844 UG (Second Amendment) (Economic Recovery Program) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated April 26, 1989 CREDIT NUMBER 1844 UG (Second Amendment) SECOND AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated April 26, 1989, between THE REPUBLIC OF UGANDA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower and the Association have entered into a Development Credit Agreement (Economic Recovery Program), dated September 30, 1987 (the Development Credit Agreement), for the purpose of assisting in the financing of the program referred to in Recital (A) of the Preamble to the Development Credit Agreement (the Program); (B) the Borrower and the Association have on March 31, 1989, entered into an Amending Agreement to the Development Credit Agreement (the First Amending Agreement) for the purpose of providing the Borrower with additional assistance in the financing of the Program; Page 2 (C) the Borrower has requested the Association to provide additional assistance towards the financing of the Program by increasing the amount made available under the Development Credit Agreement by an amount in various currencies equivalent to nineteen million Special Drawing Rights (SDR 19,000,000); and WHEREAS the Association 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 Development Credit Agreement Section 1.01. Section 1.02 of the Development Credit Agreement is amended by deleting the "and" at the end of Subsection (b), substituting "; and" for "." at the end of Subsection (c) and adding a new Subsection (d) as follows: "(d) 'Second Amending Agreement' means the Second Agreement Amending the Development Credit Agreement (Economic Recovery Program) between the Borrower and the Association dated April 26, 1989. Section 1.02. Section 2.01 of the Development Credit Agreement is amended to read as follows: "Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to seventy-one million two hundred thousand Special Drawing Rights (SDR 71,200,000) in three tranches, the first tranche being an amount in various currencies equivalent to fifty million nine hundred thousand Special Drawing Rights (SDR 50,900,000) (the First Tranche), the second tranche being an amount in various currencies equivalent to one million three hundred thousand Special Drawing Rights (SDR 1,300,000) (the Second Tranche) and the third tranche being an amount in various currencies equivalent to nineteen million Special Drawing Rights (SDR 19,000,000) (the Third Tranche)." Section 1.03. Section 2.02 of the Development Credit Agreement is redesignated as paragraph (a) of Section 2.02 and the following new paragraph (b) is added thereto: "(b) Except as the Borrower and the Association shall otherwise agree, all amounts withdrawn from the Credit Account or made subject to a special commitment pursuant to Section 5.02 of the General Conditions, shall: (i) initially be charged against the First Tranche and the Second Tranche until those Tranches have been exhausted; and (ii) thereafter be charged against the Third Tranche." Section 1.04. A proviso is added at the end of Section 2.04 (a) of the Development Credit Agreement reading as follows: "; provided, however, that commitment charges on the Third Tranche shall accrue from a date sixty (60) days after the date of the Second Amending Agreement." Section 1.05. Subparagraph (g) of paragraph 2 of Schedule 1 to the Development Credit Agreement is deleted. Page 3 ARTICLE II Effective Date; Termination Section 2.01. This Second Amending Agreement shall not become effective until: (a) satisfactory evidence shall have been furnished to the Association that the execution and delivery of this Second Amending Agreement, on behalf of the Borrower, have been duly authorized or ratified by all necessary Governmental action; and (b) the First Amending Agreement has become effective. Section 2.02. As part of the evidence to be furnished pursuant to Section 2.01 of this Agreement, there shall be furnished to the Association an opinion or opinions, satisfactory to the Association, of counsel, acceptable to the Association, showing, on behalf of the Borrower, that this 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 Agreement shall come into force and effect on the date upon which the Association dispatches to the Borrower notice of its acceptance of the evidence required by Section 2.01 of this Agreement. Section 2.04. If this Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Agreement, this Agreement and all obligations of the parties hereunder shall terminate, unless the Association establishes a later date for the purposes of this Section. If this Agreement shall terminate under the provisions of this Section, the Development Credit Agreement as amended by the First Amending Agreement, shall continue in full force and effect, as if this Agreement had not been executed. IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, 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. THE REPUBLIC OF UGANDA By /s/ Stephen K. Katenta Apuli Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Edward V. K. Jaycox Regional Vice President Africa