Conformed Copy - C2121 - Agricultural Sector Adjustment Program - Agreement Amending Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2121 MAI (Amendment) (Agricultural Sector Adjustment Program) between REPUBLIC OF MALAWI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated January 29, 1992 CREDIT NUMBER 2121 MAI (Amendment) AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated January 29, 1992, between REPUBLIC OF MALAWI (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Associa- tion). WHEREAS (A) the Borrower and the Association have entered into a Development Credit Agreement (Agricultural Sector Adjustment Pro- gram), dated April 11, 1990 (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 Agree- ment (the Program); (B)the Borrower has requested the Association to provide addition- al assistance towards the financing of the Program by increasing the amount made available under the Development Credit Agreement; and WHEREAS the Association has agreed, on the basis, inter alia, of Page 2 the foregoing, to provide such additional assistance to the Bor- rower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Amendments of the Development Credit Agreement Section 1.01. Section 1.02 of the Development Credit Agree-ment is amended by the deletion of the word "and" at the end of Subsec- tion (b), substituting "; and" for "." at the end of Subsection (c) and adding a new Subsection (d) as follows: "(d)"Amending Agreement" means the Agreement Amending the Develop- ment Credit Agreement (Agricultural Sector Adjustment Program) between the Borrower and the Association, dated January 29, 1992;" and 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 Develop- ment Credit Agreement, an amount in various currencies equivalent to fifty-six million six hundred thousand Special Drawing Rights (SDR 56,600,000) (the Credit), which includes an additional amount in various currencies equivalent to four million Special Drawing Rights (SDR 4,000,000) (the Additional Financing)." Section 1.03. A proviso is added at the end of Section 2.04 (b) of the Development Credit Agreement reading as follows: "; provided, however, that any commitment charge on the Additional Financing shall accrue from a day sixty (60) days after the date of the Amending Agreement." Section 1.04. The amount of the Credit allocated to Cate-gory (1) in the table set forth in paragraph 1 of Schedule 1 to the Devel- opment Credit Agreement is increased from SDR 52,035,000 to SDR 5- 6,035,000 and the total amount of the Credit referred to at the end of the said table is increased from SDR 52,600,000 to SDR 56,- 600,000. Section 1.05. The following paragraph is added at the end of Sche- dule 1 to the Development Credit Agreement: "8. After a date twelve (12) months from the date of this Amending Agreement, no withdrawals shall be made and no commitment shall be entered into to pay amounts, to or on the order of, the Borrower in respect of expenditures to be financed out of the proceeds of the Additional Financing. At any time after such date, the Associ- ation may, by notice to the Borrower, cancel the unwithdrawn amount of the Additional Financing from the Credit Account or any part thereof." ARTICLE II Effective Date; Termination Section 2.01. This Amending Agreement shall not become effective until evidence satisfactory to the Association shall have been furnished to the Association that the execution and delivery of this Amending Agreement on behalf of the Borrower have been duly authorized or ratified by all necessary governmental action. Section 2.02. As part of the evidence to be furnished pursuant to Section 2.01 of this Amending 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 autho- Page 3 rized 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 Amending Agreement shall come into force and effect on the date upon which the Association shall dispatch to the Borrower notice of its acceptance of the evidence required by Section 2.01 of this Amending Agreement. Section 2.04. If this Amending Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Amending Agreement, this Amending 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 Amending Agreement shall terminate under the provisions of this Section, the Development Credit Agreement, as amended to the date of this Amending Agreement, shall continue in full force and ef- fect, as if this Amending 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 writ- ten. REPUBLIC OF MALAWI By /s/ R. B. Mbaya Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Katherine Marshall Acting Regional Vice President Africa