Conformed Copy - C2230 - Energy Sector Rehabilitation Project - Canadian Grant Agreement

Page 1 CONFORMED COPY CANADIAN GRANT RELATED TO CREDIT NUMBER 2230 BU Canadian Grant Agreement (Relating to the Energy Sector Rehabilitation Project) between REPUBLIC OF BURUNDI and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by the Government of Canada Dated August 7, 1991 CANADIAN GRANT RELATED TO CREDIT NUMBER 2230 BU CANADIAN GRANT AGREEMENT AGREEMENT, dated August 7, 1991, between the REPUBLIC OF BURUNDI (the "Beneficiary") and the INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator (the "Administrator") of the Contribution (as hereinafter defined) provided by the Government of Canada ("Canada"). WHEREAS the Beneficiary has requested the assistance of Canada in financing part of the Project described in Schedule 2 to the Development Credit Agreement (the "Development Credit Agreement") between the International Development Association and the Republic of Burundi entered into on June 4, 1991; WHEREAS by an agreement dated March 28, 1991, between Canada and the International Development Association (the "Contribution Agreement"), Canada has requested the International Development Association, and the International Development Association has accepted, to administer an amount of two million Canadian dollars (Can$2,000,000) (the "Contribution") in accordance with the provisions of the Contribution Agreement; and WHEREAS 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 Development 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 Contribution 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" whenever used in the General Conditions, means this Agreement; (c) the term "Credit", whenever used in the General Conditions, means the Contribution extended to the Beneficiary under this Agreement; (d) the term "Credit Account", whenever used in the General Conditions, means the T-Account (as hereinafter defined in this Agreement); (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 Beneficiary and the Administrator, the Beneficiary shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator shall reasonably request, on the execution of the project referred to in the Preamble to the Canadian Grant Agreement, the performance by the Beneficiary and the Administrator of their respective obligations under the Canadian Grant Agreement and the accomplishment of the purposes of the Contribution."; and (g) Sections 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a), 12.02 and 12.05 of the General Conditions are deleted; and (h) the term "Borrower", whenever used in the General Conditions, means the Beneficiary. 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 Development Credit 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 Administrator 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 million Canadian dollars (Can$2,000,000), 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 described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Contribution. Page 3 (b) Promptly after deposit by CIDA of the first advance of the Contribution the Administrator shall, on behalf of the Beneficiary, withdraw from the T-Account and pay to itself the amounts of the Contribution allocated to Category (3) of the table set forth in paragraph 1 of 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 3 to the Development Credit Agreement. 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 Beneficiary of such later date. ARTICLE III Execution of the Project Section 3.01. Except as otherwise expressly provided herein, Sections 3.01, 3.03, 3.04, 3.05, 3.06, 3.07, 3.08, 4.01, 4.02, 4.03, 4.04, 4.05, 4.06, 5.01 and 5.02 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 sections to "the Association" shall be deemed to be references to the Association acting as Administrator of the Contribution under this Agreement, all references to the "Credit" and the "Credit 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 its signature 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 energy and mines 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: Ministere de l'Energie et des Mines B.P. 747 Bujumbura Republic of Burundi Telex: 5182 BDI Fax: 00257223337 For the Administrator: Page 4 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 197688 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTCC) 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, as of the day and year first above written. REPUBLIC OF BURUNDI By /s/ Julien Kavakure Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Canadian Contribution provided by the Government of Canada By /s/ Francisco Aguirre Sacasa Acting Regional Vice President Africa 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' 1,940,000 1OO% Page 5 services (2) Unallocated 20,000 ________ SUB-TOTAL 1,960,000 (3) Supervision, 40,000 Amount due pur- Administration suant to Section fee and Auditing 2.02 (b) of this of T-Account Agreement _________ TOTAL 2,000,000 ========= 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to June 4, 1991. SCHEDULE 2 Description of the Project The activities to be financed by the Contribution include: (a) implementing more effective and more efficient management systems to increase the performance of REGIDESO; and (b) developing the endogenous capacity of REGIDESO in order to perpetuate the reform implemented by favoring the strengthening of its internal resources in technical, financial and administrative management. * * * The Project is expected to be completed by June 30, 1994.