Conformed Copy - C2283 - Second Structural Adjustment Credit - Dutch Grant Agreement

Page 1 CONFORMED COPY DUTCH GRANT RELATED TO CREDIT NUMBER 2283 BEN Dutch Grant Agreement (Second Structural Adjustment Credit) between REPUBLIC OF BENIN and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of Dutch Funds provided by the MINISTER FOR DEVELOPMENT COOPERATION OF THE NETHERLANDS Dated August 10, 1994 DUTCH GRANT RELATED TO CREDIT NUMBER 2283 BEN DUTCH GRANT AGREEMENT AGREEMENT, dated August 10, 1994, between REPUBLIC OF BENIN (the Grantee) 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 Grantee has requested the assistance of the International Development Association (the Association) and of the Minister in the financing of the urgently needed imports required under the Grantee's program of actions, objectives and policies designed to achieve structural adjustment of the Grantee's economy (the Program) referred to in the Preamble to the Development Credit Agreement No. 2283 BEN dated July 12, 1991, between the Grantee and the Association (the Development Credit Agreement); WHEREAS the Association has granted a Credit for this purpose on the terms and conditions set forth in the Development Credit Agreement; WHEREAS the Minister wishes to make available to the Grantee a grant in the amount of five million Dutch guilders (f.5,000,000) (the Dutch Grant) to assist the Grantee in carrying out the Program on the terms and conditions hereinafter set forth; WHEREAS by an amendment, dated March 17, 1994, of the Schedule to the Arrangements, dated December 11, 1986, between the Minister, the International Bank Page 2 for Reconstruction and Develop-ment and the Association (the Arrangements), the Minister has requested the Association, and the Association has accepted, to administer, inter alia, the Dutch Grant in accordance with the provisions of the Arrangements; and WHEREAS the Grantee acknowledges that the financial assis-tance extended to the Grantee under this Dutch Grant Agreement shall be considered as part of the bilateral development aid extended by the Government of the Netherlands to the Grantee; NOW THEREFORE the parties hereto hereby agree as follows: 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 Arran-gements, except in the phrase "member of the Association" in Sections 2.01 (5), 4.02 (b) and 6.02 (e); (b) the term "Development Credit Agreement", wherever used in the General Conditions, means this Agreement; (c) the term "Credit", wherever used in the General Conditions, means the Dutch Grant extended to the Grantee under this Agreement; (d) the term "Credit Account", wherever used in the General Conditions, means the Dutch Grant Account, the account opened by the Administrator in its books in the name of the Grantee to which the amount of the Dutch Grant is credited; (e) in Section 6.02 the term "Association" shall also include the International Development Association acting in its own capacity; (f) 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 the Grantee and the Administrator, the Grantee shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator shall reasonably request, on the execu-tion of the Project referred to in the Preamble to the Dutch Grant Agreement, the performance by the Grantee and the Administrator of their respective obligations under the Dutch Grant Agreement, and the accomplish-ment of the purposes of the Dutch Grant"; and (g) Sections 3.02, 3.03, 3.04, 3.05, 4.01, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a), 12.02 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, in the Preamble to this Agreement and in the Development Credit Agreement have the respective meanings therein set forth. ARTICLE II The Grant Section 2.01. The Administrator agrees to extend to the Grantee, on the terms and conditions set forth or referred to, a grant in an amount of five million Dutch guilders (f.5,000,000). Section 2.02. The proceeds of the Dutch Grant may be with-drawn from the Dutch Grant Account for expenditures made (or, if the Administrator shall so agree, to be made) in respect of the reasonable cost of the goods required for the Program and made after the date of the Agreement. Section 2.03. (a) Except as the Administrator shall other-wise agree, contracts Page 3 for goods and services to be financed out of the proceeds of the Dutch Grant shall be procured in accordance with the provisions of Schedule 2 to the Development 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 "Association" shall be deemed to be references to the Association acting as Administrator of the Dutch Grant. (b) If the Administrator shall have reasonably determined that the procurement of any item is inconsistent with the procedures set forth or referred to in paragraph (a) above, no expendi-tures for such item shall be financed out of the proceeds of the Dutch Grant and the Administrator may, without in any way restri-cting or limiting any other right, power or remedy of the Ad-ministrator under this Agreement, by notice to the Grantee, cancel such amount of the Dutch Grant as, in the Administrator's reasona-ble 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 December 31, 1994, or such later date as the Administrator shall establish. The Administrator shall promptly notify the Grantee of such later date. ARTICLE III Execution of the Project Section 3.01. Except as otherwise expressly provided herein, Articles III and IV of the Development Credit 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 Articles III and IV to "the Association" shall be deemed to be references to the Administrator of the Dutch Grant under this Agreement and all references to the "Credit" and the "Credit Account" shall be deemed to be references to the Dutch Grant and the Dutch Grant Account, respectively. ARTICLE IV Representation; Transfer of Rights and Obligations Section 4.01. The Minister in charge of finance of the Borrower shall be the representative of the Grantee for the purposes of Section 11.03 of the General Conditions. Section 4.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Grantee: Le Minist