Conformed Copy - C2418 - Economic and Financial Management Project - Dutch Grant Agreement

Page 1 CONFORMED COPY DUTCH GRANT RELATED TO CREDIT NUMBER 2418 UG Dutch Grant Agreement (Economic and Financial Management Project) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of Dutch Funds Provided by The MINISTER FOR DEVELOPMENT COOPERATION OF THE NETHERLANDS Dated August 2, 1994 DUTCH GRANT RELATED TO CREDIT NUMBER 2418 UG DUTCH GRANT AGREEMENT AGREEMENT, dated August 2, 1994, between THE REPUBLIC OF UGANDA (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 the Minister in the financing of the civil service reform program (the Program) referred to in Part D of the Project (the Project) described in Schedule 2 to the Development Credit Agreement Number 2418 UG, dated September 22, 1992, 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 seven million five hundred thousand Dutch guilders (f.7,500,000) (the Dutch Grant) to assist the Grantee in carrying out the Program on the terms and conditions hereinafter set forth; WHEREAS by an exchange of letters, dated December 1, 1993 and December 6, 1993, respectively, between the Minister, the International Bank for Reconstruction and Development (the Bank) and the Association, the Minister has requested the Association, and the Association has agreed, to administer, inter alia, the Dutch Page 2 Grant in accordance with the provisions of the arrangements between the Bank, the Association and the Minister, dated December 11, 1986 (the Arrangements); and WHEREAS the Grantee acknowledges that the financial assistance extended to the Grantee under this agreement (the Dutch Grant Agreement) shall be considered 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 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", whenever used in the General Conditions, means the International Development Association acting as Administrator of the Dutch Grant pursuant to the Arrangements, 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 Condi- tions, means "Dutch Grant" extended to the Grantee under this Agreement; (d) the term "Credit Account", whenever used in the General Conditions shall be amended to read, "Dutch Grant Account"; (e) Section 4.01 shall be modified to read: "Withdrawals from the Dutch Grant Account shall be made in dollars; provided, however, that if the expenditures to be financed out of the proceeds of the Dutch Grant have been paid in another currency, the Administrator shall, at the request of the Grantee and at the time of withdrawal from the Dutch Grant Account, purchase such currency with the proceeds of such withdrawal". (f) in Section 6.02, the term "Association" shall also include the International Development Association acting in its own capacity; (g) 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 execution of the program 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 accomplishment of the purposes of the Dutch Grant"; (h) Sections 3.02, 3.03, 3.04, 3.05, 4.01, 4.02, 4.03, 4.06, 6.05, 7.01, 8.01 (a), 12.02 and 12.05 are deleted; and (i) the term "Borrower", whenever used in the General Conditions, means the Grantee. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, the Preamble to this Agreement and the Development Credit Agreement have the respective meanings therein set forth, and the terms "Dutch guilders" and "f." mean the currency of the Netherlands. ARTICLE II The Grant Page 3 Section 2.01. The Administrator agrees to extend to the Grantee, on the terms and conditions herein set forth or referred to, a grant in an amount of seven million five hundred thousand Dutch guilders (f.7,500,000). Section 2.02. The proceeds of the Dutch Grant may be withdrawn 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 Project in accordance with the provisions of Schedule 1 to the Development Credit Agreement, as such Schedule may be amended from time to time by agreement between the Grantee and the Administrator. Section 2.03. (a) Except as the Administrator shall otherwise agree, contracts 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 3 to the Development Credit Agreement. (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 expenditures for such item shall be financed out of the proceeds of the Dutch Grant, and the Administrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under this Agreement, by notice to the Grantee, cancel such amount of the Dutch Grant as, in the Administrator's reasonable 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 June 30, 1999, 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, Article III and Schedules 2 and 3 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 is understood that all references to the "Association" in said Sections are references to the Association acting as Administrator of the Dutch Grant under this Agreement, and all references to the Credit and the Credit Account are references to the Dutch Grant and the Dutch Grant Account, respectively, and all references to the Borrower shall be deemed to be references to the Grantee. ARTICLE IV Representation; Transfer of Rights and Obligations Section 4.01. The Minister of Finance and Economic Planning of the Grantee 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: Ministry of Finance and Economic Planning P.O. Box 8147 Kampala, Uganda Cable address: Telex: FINSEC 61170 Kampala For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 Page 4 United States of America Cable address: Telex: INDEVAS 197688 (TRT) Washington, D.C. 248423 (RCA) 64145 (WUI) or 82987 (FTCC) Section 4.03. In accordance with the Arrangements, the rights and obligations of the Administrator under this Agreement may be transferred to the Minister. The Grantee accepts and agrees that, upon notice by the Administrator to the Grantee to that effect, the Minister 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 the Minister had been an original party to this Agreement, without any further action or formality being 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. ARTICLE V Effectiveness Section 5.01. This Agreement shall become effective as of the date first above written and shall continue in effect until the Dutch Grant has been fully disbursed and the parties to this Agreement have fulfilled their obligations hereunder. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereto 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. THE REPUBLIC OF UGANDA By /s/ Paul Mukasa-Ssali Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of Dutch Funds Provided by The MINISTER FOR DEVELOPMENT COOPERATION OF THE NETHERLANDS By /s/ Edward V.K. Jaycox Regional Vice President Africa