Conformed Copy - C1884 - Municipal and Housing Development Project - Project Agreement 2

Page 1 CONFORMED COPY CREDIT NUMBER 1884 SE (Municipal and Housing Development Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and COMMUNAUTE URBAINE DE DAKAR Dated May 27, 1988 CREDIT NUMBER 1884 SE PROJECT AGREEMENT AGREEMENT, dated May 27, 1988, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and COMMUNAUTE URBAINE DE DAKAR (CUD). WHEREAS (A) by the Development Credit Agreement of even date herewith between Republic of Senegal (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to thirty-two million five hundred thousand Special Drawing Rights (SDR 32,500,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that CUD agree to undertake such obligations toward the Association as are set forth in this Agreement; WHEREAS CUD, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: Page 2 ARTICLE I Definitions Section 1.01. Unless the context otherwise requires, the several terms defined in the Development Credit Agreement, the Preamble to this Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. (a) CUD declares its commitment to the objec- tives of the Project as set forth in Schedule 2 to the Development Credit Agreement and, to this end, shall carry out Part B of the Project and shall assist in the carrying out of Part C of the Project with due diligence and efficiency and in conformity with appropriate administrative and engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for Part B of the Project. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants' services required for Part B of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to the Development Credit Agreement. Section 2.03. CUD shall carry out the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Condi- tions (relating to use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respec- tively) in respect of the Project Agreement and Part B of the Project. Section 2.04. (a) CUD shall, at the request of the Associa- tion, exchange views with the Association with regard to the pro- gress of Part B of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) CUD shall promptly inform the Association of any condi- tion which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by CUD of its obligations under this Agreement. (c) By October 31 of each year during execution of Parts B.2 and B.5 of the Project, CUD will prepare and furnish to the Association an activity report in such scope and such detail as the Association shall reasonably request on the activities carried out by the technical services of CUD under Parts B.2 and B.5 of the Project during the previous fiscal year of CUD. 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 Development Credit Agreement becomes effective. Section 3.02. (a) This Agreement and all obligations of the Association and of CUD thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or (ii) the date fifteen years after the date of this Agreement. Page 3 (b) If the Development Credit Agreement terminates in accor- dance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify CUD of this event. Section 3.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation 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: 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) For CUD: Communaut