Conformed Copy - L3176 - Technical Assistance Project - Canadian Grant Agreement

Page 1 CONFORMED COPY CANADIAN GRANT RELATED TO LOAN NUMBER 3176 AL Canadian Grant Agreement (Relating to the Technical Assistance Project) between DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by the Government of Canada Dated December 15, 1990 CANADIAN GRANT RELATED TO LOAN NUMBER 3176 AL CANADIAN GRANT AGREEMENT AGREEMENT, dated December 15, 1990, between DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA (the "Beneficiary") and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT acting as administrator (the "Administrator") of the Contribution (as hereinafter defined) provided by the Government of Canada ("Canada"). WHEREAS (A) the Beneficiary has requested the assistance of Canada in financing part of the Project described in Schedule 2 to the Loan Agreement (the "Loan Agreement") entered into by and between the International Bank for Reconstruction and Development and the Democratic and Popular Republic of Algeria on September 26, 1990; WHEREAS (B) by an agreement dated December 10, 1990, between Canada and the International Bank for Reconstruction and Development (the "Contribution Agreement"), Canada has requested the International Bank for Reconstruction and Development, and the International Bank for Reconstruction and Development has accepted, to administer an amount of two hundred fifty-five thousand Canadian dollars (Can$255,000) (the "Contribution") in accordance with the provisions of the Contribution Agreement; and WHEREAS (C) the Beneficiary acknowledges that the financial assistance extended to the Beneficiary under this Agreement shall be considered as part of the bilateral development aid extended by Canada to the Beneficiary; Page 2 NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated January 1, 1985 (the General Conditions) constitute an integral part of this Agreement, subject, however, to the following modifications thereto: (a) the term "Bank," wherever used in the General Conditions, other than in Sections 2.01 (8) and 6.02 (f) thereof, means the International Bank for Reconstruction and Development acting as Administrator of the Contribution pursuant to the Contribution Agreement between Canada and the Bank referred to in Recital (B) of this Agreement, except that in Section 6.02, the term "Bank" shall also include the International Bank for Reconstruction and Development acting in its own capacity; (b) the term "Borrower," wherever used in the General Conditions, means the Beneficiary; (c) the term "Loan Agreement," wherever used in the General Conditions, means this Agreement; (d) the term "Loan," wherever used in the General Conditions, means the Contribution; (e) the term "Loan Account," wherever used in the General Conditions, shall be amended to read the T Account; (f) the term "Project," wherever used in the General Conditions, means the technical assistance activities described in Schedule 2 to this Agreement; (g) Section 4.01. shall be modified to read "Withdrawals from the T Account shall be made in Canadian dollars; provided, however, that if the expenditures to be financed out of the proceeds of the Contribution have been paid or are payable in another currency, the Administrator shall, at the request of the Beneficiary, purchase such currency with the proceeds of such withdrawal."; (h) Sections 2.01 (5), (7), (12), (13), (14), (15), (16), (17) and (19), 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.10, 6.02 (a)(i), 6.02 (g), 6.02 (h), 6.05, 6.07, 7.01, 8.01 (a), 9.01 (b), 9.02, 9.03, 10.02, 12.01, 12.02, 12.03, 12.04 and 12.05 are deleted; (i) The second and third sentences of Section 4.09 are deleted; and (j) All references to "the Guarantor," wherever such term is used in the General Conditions, shall not apply to this Agreement. Section 1.02. Whenever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, in the Preamble to this Agreement and in the Loan Agreement have the respective meanings therein set forth, and the term "T-Account" means the account opened in the Bank of Canada in the name of the International Development Association to which the amount of the Contribution is credited. ARTICLE II The Contribution Section 2.01. The Administrator agrees to extend to the Beneficiary, on the terms and conditions herein set forth or referred to, a Contribution in an amount of up to two hundred fifty-five thousand Canadian dollars (Can$255,000), or such other amount as shall have been made available by Canada to the Administrator for this purpose pursuant to the Contribution Agreement. Section 2.02. (a) The amount of the Contribution may be withdrawn from the T-Account in accordance with the provisions of Schedule 1 to this Agreement for expenditures made (or if the Administrator shall so agree, to be made) in respect of the reasonable cost of services and related expenses required for the Project Page 3 described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Contribution. (b) Promptly after the effectiveness of this Agreement, the Bank shall withdraw from the Contribution an amount equivalent to two percent (2%) of the amount of the Contribution to be utilized to defray the administrative and other expenses of the Bank in administering the Project, as well as a lump sum of one thousand five hundred Canadian dollars (Can$1,500) to cover the cost of an external audit of the T-Account, all as specified in the budget set forth in Schedule 1 to this Agreement. Section 2.03. Except as the Administrator shall otherwise agree, contracts for services required for the Project and to be financed out of the proceeds of the Contribution shall be procured in accordance with the provisions of Section II of Schedule 4 to the Loan Agreement. Section 2.04. The Closing Date shall be December 31, 1991 or such later date as the Administrator shall establish. The Administrator shall promptly notify the Beneficiary of such later date. ARTICLE III Execution of the Project Section 3.01. Except as otherwise expressly provided herein, Sections 3.01, 4.01 and 5.01 of the Loan Agreement are hereby incorporated into this Agreement with the same force and effect as if they were fully set forth herein, it being understood that all references in said sections to "the Bank" shall be deemed to be references to the Bank acting as Administrator of the Contribution under this Agreement, all references to the "Loan" and the "Loan Account" shall be deemed to be references to the Contribution and the T-Account, respectively, and all references to the Borrower shall be deemed to be references to the Beneficiary. ARTICLE IV Effectiveness; Termination Section 4.01. This Agreement shall become effective upon the effectiveness of the Contribution Agreement and shall continue in effect until termination of the Contribution Agreement, or until the Contribution has been fully disbursed and the parties to this Agreement have fulfilled their obligations hereunder, whichever occurs first. ARTICLE V Representation; Transfer of Rights and Obligations Section 5.01. The Minister of the Beneficiary at the time responsible for Economy shall be the representative of the Beneficiary for the purposes of Section 11.03 of the General Conditions. Section 5.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Beneficiary: Ministry of Economy Immeuble Mauretania Place du Perou Algiers Democratic and Popular Republic of Algeria Cable address: Telex: FINPLAN 67073 Algiers For the Administrator: International Bank for Reconstruction and Development 1818 H Street, N.W. Page 4 Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 197688 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTTC) Section 5.03. In accordance with the Contribution Agreement, the rights and obligations of the Administrator under this Agreement may be transferred to Canada. The Beneficiary accepts and agrees that, upon notice by the Administrator to the Beneficiary to that effect, Canada shall, ipso facto, from the date specified in such notice, be substituted in all rights and obligations of the Administrator under this Agreement as if Canada had been an original party to this Agreement, without any further action or formality required on the part of any party, and from such date the Administrator shall cease to have any rights or obligations as a party under this Agreement. IN WITNESS WHEREOF, the parties hereto, acting through 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, and in Algiers, Democratic and Popular Republic of Algeria as of the day and year first above written. DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA By Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT as Administrator of the Canadian Contribution provided by the Government of Canada By Authorized Representative SCHEDULE 1 Withdrawal of the Proceeds of the Contribution 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Contribution, the allocation of the amounts of the Contribution to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Contribution Allocated % of (Expressed in Expenditures Category Can$ Equivalent) to be Financed (1) Consultants' 248,400 100% of the amount services, due pursuant to including Section 2.02 (a) of supervision, this Agreement transportation and accomoda- tions of trainees (2) Administration 5,100 100% of the amount Page 5 fee due pursuant to Section 2.02 (b) of this Agreement (3) Auditing 1,500 100% of the amount due pursuant to Section 2.02. (b) of this Agreement TOTAL 255,000 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement. SCHEDULE 2 Description of the Project The Project will last a maximum of one (1) year, and will make resources of the Centre for International Business Studies available to the Central Bank of Algeria so that a brief project can be conducted offering adapted training. The main activities planned are participant selection, training and follow-up. The Project's objective is to train individuals so that they will be able to take charge of the Beneficiary's interventions on international capital markets. (I) Selection of Participants The Project will train about twenty (20) participants from the Central Bank of Algeria, other banks, the ministry and a number of Algerian companies. The Beneficiary's authorities will pre-select the participants, and then two (2) members of the training team will travel to Algiers to make the final selection. (II) Training The training will last five (5) to six (6) weeks, and will take place in Montreal, Canada. The three (3) objectives of the training are (a) to help participants acquire an understanding of various international financial instruments; (b) to expand the participants' knowledge of the principles of financial management of companies and institutions; and (c) to develop the participants' ability to manage the risks inherent to interventions in international capital markets. (III) Follow-up This phase is intended to round out the training received in Canada, and will take place in Algeria. Trainers will travel to Algeria for a final seminar, which will be designed to: (a) answer questions raised by the Participants; and (b) report on changes in the markets over the previous two (2) months. * * * The Project is expected to be completed by October 31, 1991.