Uganda - Economic And Financial Management Project : Credit 2418 - Agreement - 1 - Conformed

AGREEMENT RELATED TO CREDIT NUMBER 2418 UG Agreement between THE GOVERNMENT OF SWEDEN Economic and Financial Management Project and INTERNATIONAL DEVELOPMENT ASSOCIATION for the Administration of Certain Funds to be made available by THE SWEDISH INTERNATIONAL DEVELOPMENT AUTHORITY Dated /A2z / , 1994 AGREEMENT RELATED TO CREDIT NUMBER 2418 UG AGREEMENT AGREEMENT between the GOVERNMENT OF SWEDEN (Sweden) represented by the SWEDISH INTERNATIONAL DEVELOPMENT AUTHORITY (SIDA) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) to provide for the administration, by the Association, of certain funds to be made available by Sweden to the Republic of Uganda (Uganda). WHEREAS: (A) the agreement, dated May 18, 1989, between Sweden and the Association provides the framework for cofinancing of development projects by the parties thereto; (B) Sweden wishes to make available to Uganda a grant not exceeding twenty five million Swedish kroner (SEK 25,000,000) (the Grant) to assist Uganda in financing its Civil Service Reform Programme under Part D of the Economic and Financial Management Project (the Project) referred to in the Development Credit Agreement (Credit 2418-UG) dated September 22, 1992 between Uganda and the Association; (the Development Credit Agreement); and (C) SIDA wishes that the proceeds of the Grant should be incremental to the proceeds of the Desvelopment Credit Agreement and extended for the same purposes by ths Association pursuant to the Development Credit Agreement. WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to administer the Grant upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Section 1.01. The Association, as Administrator on behalf of SIDA, shall review and approve requests submitted by Uganda to finance the reasonable costs of goods and services required during the execution of its Civil Service Reform Programme under Part D of the Project in accordance with the relevant provisions of Schedule 1 to the Development Credit Agreement. Section 1.02. The Association, as Administrator on behalf of Sweden, shall have the sole responsibility for the supervision of the Project. -2- Section 1.03. The Association shall exercise the same care in the discharge of its functions under this Agreement as it exercises with respect to the administration and management of its own affairs and shall have no further responsibility to Sweden in respect thereof. ARTICLE II Section 2.01. (a) For the purpose of this Agreement, SIDA shall deposit the Grant amount of twenty five million Swedish kroner (SEK 25,000,000) into the International Development Association's Cash Account "T" (No. 89501-00225) which is maintained with Sveriges Riksbank (the T-Account). When making deposits, SIDA shall: (i) instruct Sveriges Riksbank to: (A) advise the Association's Cash Management Department as to the amount received; (B) specify it is for the Economic and Financial Management Project (Project No. 26148); (C) specify the date of the deposit; and (ii) FAX a copy of any payments instructions to Sveriges Riksbank to the Office of the Trust Funds Administrator in the Association utilizing FAX No. 202-477-3056. (b) The funds in the T-Account shall be freely exchangeable by the Association with other currencies as may facilitate their administration. Section 2.02. The Association shall disburse from the T-Account such amounts as, from time to time, shall be needed to meet the reasonable costs of goods and services financed, or to be financed, pursuant to Section 1.01 of this Agreement. Such disbursement shall be effected on the basis of withdrawal applications for eligible expenditures submitted by Uganda to the Association, in accordance with the Association's normal procedures for withdrawal of proceeds of credits made by the Association. -3- Section 2.03. In order to assist the defrayal of the costs of administration and other expenses incurred by the Association under this Agreement, the Association may invest and reinvest the Grant funds pending their disbursement and retain for its own account an amount equal to two percent of the Grant. All remaining income, less the cost of the external audit referred to in Article III, Section 3.01. (b), shall be refunded to SIDA. Section 2.04. The Closing Date shall be December 31, 1994, or such later date as the Association shall establish. The Association shall promptly notify Uganda of such later date. ARTICLE III Section 3.01. (a) The Association shall maintain separate records and accounts in respect of the funds in the T-Account disbursed by the Association pursuant to the provisions of this Agreement. (b) Promptly after all funds made available under this Agreement have been disbursed from the T-Account to Uganda, or upon termination of this Agreement, the Association shall cause such records and accounts to be audited and certified by the Association's external auditors and shall furnish the report of such audit by said auditors to SIDA. The cost of such audit shall be met from the investment income earnings. ARTICLE IV Section 4.01. SIDA and the Association shall consult from time to time at the request of each other on all matters arising out of this Agreement. Section 4.02. The Association shall keep SIDA informed of the progress of the Project. To that end, the Association shall furnish to SIDA all relevant progress, performance and assessment reports related to the Project. Section 4.03. The Association shall inform SIDA of any forthcoming major missions and meetings in connection with the Project and shall afford representatives of SIDA the opportunity to participate in such missions and meetings. -4- Section 4.04. Tha Association shall inform SIDA of any proposed significant auodification to the Development Credit Agreement and shall afford SIDA a reasonable opportunity to exchange views with the Association before effecting any such modification. ARTICLE V Section 5.01. This Agreement shall become effective upon signature and, subject to the provisions of this Article, shall continue in effect until December 31, 1994 or until all funds made available under this Agreement have been disbursed from the T- Account to Uganda and all. other formalities incidental thereto have been completed. Section 5.02. If at any time it appears to either party that the purposes of this Agreement can no longer effectively or appropriately be carried out, this Agreement may be terminated at the initiative of such party on ninety (90) days notice in writing. Section 5.03. Upon termination of this Agreement, unless the parties agree on another course of action, any funds of SIDA held hereunder by the Association shall be returned to SIDA, and the Association's administration shall be considered terminated. ARTICLE VI Section 6.01. The Swedish International Development Authority, SIDA, shall be competent to represent Sweden for the application of this Agreement. Section 6.02. This Agreement may be amended only by written agreement of the parties hereto. Section 6.03. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand, mail, fax, cable or telex to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other addresses as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: -5- For Sweden: Swedish International Development Authority S-105 25 Stockholm Sweden Telephone: 8-728 51 00 Telex: SIDA 11450 For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 USA Telex: 197688 (TRT) 248423 (RCA) 64145 (WUI) or 82987 (FTCC) -6- IN WITNESS WHEREOF, the undersigned duly authorized hereto, have signed this Agreement. GOVERNMENT OF SWEDEN By IVO- Date /iaj INTERNATIONAL DEVELOPMENT ASSOCIATION By C// /if c-c Date mg .Of INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Bank for Reconstruction and Development and the International Development Association. FO&/SECRETARV'