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

Page 1 CONFORMED COPY DANISH GRANT RELATED TO CREDIT NUMBER 2418 UG Danish Grant Agreement (Economic and Financial Management Project) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of Grant Funds Provided by the MINISTRY OF FOREIGN AFFAIRS OF DENMARK Dated August 11, 1994 DANISH GRANT RELATED TO CREDIT NUMBER 2418 UG DANISH GRANT AGREEMENT AGREEMENT, dated August 11, 1994, between THE REPUBLIC OF UGANDA (hereinafter referred to as the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION, acting as Administrator (hereinafter referred to as the Administrator) of a Grant provided by THE MINISTRY OF FOREIGN AFFAIRS OF DENMARK (hereinafter referred to as DANIDA). WHEREAS the Recipient has requested the assistance of the International Development Association (the Association) and DANIDA 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 for Credit Number 2418 UG dated September 22, 1992, between the Recipient and the Association (the Development Credit Agreement); WHEREAS in consideration of the above-mentioned request, DANIDA agrees to provide such assistance and has agreed to open a trust account and deposit therein an amount not exceeding sixteen million seven hundred and fifty thousand Danish Kroner (DKr 16,750,000) (hereinafter referred to as the Danish Grant) and has, pursuant to an Agreement dated May 26, 1994, between DANIDA and the Association (hereinafter referred to as the Administration Agreement), appointed the Association as Administrator of the said Trust Account for the purpose of providing assistance to the Recipient; WHEREAS the Association, as Administrator as hereinbefore mentioned, has agreed on the basis, inter alia, of the foregoing to extend the Danish Grant to the Recipient upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: Page 2 ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985, with the same force and effect as if they were fully set forth herein, 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 Danish Grant pursuant to the provisions of the Administration Agreement 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 Danish Grant hereunder; (d) the term "Credit Account", whenever used in the General Conditions or in this Agreement, means the Account opened by the Association in its books in the name of the Recipient to which the amount of the Danish Grant is credited; (e) 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 of the General Conditions are deleted; (f) the term "Borrower", whenever used in the General Conditions means the Recipient; (g) in Section 6.02 of the General Conditions the term "Association" shall also include the Association acting in its own capacity; and (h) 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 Recipient and the Association, the Recipient shall prepare and furnish to the Association a report of such scope and in such detail as the Association shall reasonably request, on the execution of the program referred to in the Preamble to the Danish Grant Agreement, the performance by the Recipient and the Association of their respective obligations under the Danish Grant Agreement and the accomplishment of the purposes of the Danish Grant". 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 term "Danish Kroner" means the currency of Denmark. ARTICLE II The Grant Section 2.01. (a) The Administrator agrees to extend to the Recipient, on the terms and conditions herein set forth or referred to, a grant in an amount of sixteen million seven hundred fifty thousand Danish Kroner (DKr 16,750,000). (b) Promptly after the effectiveness of this Agreement, the Administrator shall, on behalf of the Recipient, withdraw from the Credit Account, and pay to itself, an amount equivalent to Danish Kroner 335,000, for the defrayment of the costs of administration incurred by the Administrator under the Administration Agreement. Section 2.02. The remaining amount of the Danish Grant may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to the Development Credit Agreement for expenditures made (or, if the Administrator shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Program. Section 2.03. Except as the Administrator shall otherwise agree, procurement of the goods and services required for the Program and to be financed out of the proceeds of the Danish Grant shall be procured in accordance with the provisions of Schedule 3 to the Development Credit Agreement. Page 3 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 Recipient of such later date. ARTICLE III Other Covenants Section 3.01. Except as otherwise expressly provided herein, Article 3 and Schedules 2 and 3 to the Development Credit Agreement are hereby incorporated into this Agreement with the same force and effect as if they were fully set forth herein. ARTICLE IV Effectiveness; Termination; Representation Section 4.01. This Agreement shall become effective upon signature. Section 4.02. This Agreement and all obligations of the Recipient and the Administrator hereunder shall terminate on the date on which the Development Credit Agreement shall terminate in accordance with its terms. Section 4.03. The representative designated in Section 6.01 of the Development Credit Agreement shall be the representative of the Recipient for the purposes of Section 11.03 of the General Conditions. Section 4.04. The addresses specified in Section 6.02 of the Credit Agreement shall be the addresses specified for the purposes of Section 11.01 of the General Conditions. Section 4.05. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the Development Credit Agreement. ARTICLE V Transfer of Rights and Obligations Section 5.01. In accordance with the Administration Agreement, the rights and obligations of the Administrator under this Agreement may be transferred to DANIDA. The Recipient accepts and agrees that, upon notice by the Administrator to the Recipient to that effect, DANIDA 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 DANIDA 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. 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. THE REPUBLIC OF UGANDA By /s/ Paul Mukasa-Ssali Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR on behalf of the MINISTRY OF FOREIGN AFFAIRS OF DENMARK Page 4 By /s/ Stephen M. Denning Acting Regional Vice President Africa