Conformed Copy - C2376 - Third Structural Adjustment Credit - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2376 BU (Third Structural Adjustment Credit) between REPUBLIC OF BURUNDI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 22, 1992 CREDIT NUMBER 2376 BU DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 22, 1992, between REPUBLIC OF BURUNDI (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Association has received a letter with attached annexes dated April 20, 1992 from the Borrower describing a program of actions, objectives and policies designed to achieve structural adjustment of the Borrower's economy (hereinafter called the Program), declaring the Borrower's commitment to the execution of the Program, and requesting assistance from the Association in the financing of needed imports of goods and services required during such execution; (B) the Borrower intends to contract from the Government of Belgium (AGCD) a grant, in an amount of BB 600 million, in support of the Program, on the terms and conditions set forth in an Agreement (the AGCD Grant Agreement), to be entered into between the Borrower and AGCD; Page 2 (C) the Borrower intends to contract from the European Development Fund (EDF) a grant, in an amount of ECU 21 million, in support of the Program, on the terms and conditions set forth in an agreement (the EDF Grant Agreement) to be entered into between the Borrower and EDF; (D) the Borrower intends to contract from the Government of France (CCCE) a grant, in an amount of FF 20 million, in support of the Program, on the terms and conditions set forth in an agreement (the CCCE Grant Agreement) to be entered into between the Borrower and CCCE; (E) the Borrower intends to contract from the Government of Germany (KfW) a grant, in an amount of DM 20 million in support of the Program, on the terms and conditions set forth in an agreement (the KfW Grant Agreement) to be entered into between the Borrower and KfW); (F) the Borrower intends to contract from the Government of Japan, a grant, in an amount of Yen 500 million, in support of the Program, on the terms and conditions set forth in an agreement (the Japanese Grant Agreement) to be entered into between the Borrower and the Government of Japan; and (G) on the basis, inter alia, of the foregoing, the Association has decided in support of the Program to provide such assistance to the Borrower by making the Credit in two tranches as hereinafter provided; 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, with the modifications thereof set forth below (the General Conditions) constitute an integral part of this Agreement: (a) Section 2.01, paragraph 9, shall be modified to read: "'Project' means the imports and other activities that may be financed out of the proceeds of the Credit pursuant to the provisions of Schedule 1 to the Development Credit Agreement."; (b) 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 Borrower and the Association, the Borrower 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 Development Credit Agreement, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit."; and (c) the last sentence of Section 3.02 is deleted. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "SITC" means the Standard International Trade Classification, Revision 3 (SITC, Rev. 3), published by the United Nations in Statistical Papers, Series M, No. 34/Rev. 3 (1986); (b) "Franc Burundais" and "FBU" mean the currency of the Borrower; and (c) "Special Account" means the account referred to in Section 2.02 (b) of Page 3 this Agreement; (d) "PEP" means the Borrower's Public Investment Program for all sectors with complete Public Expenditures Program for agriculture, education, health, transportation and roads, rural development, energy and mining; (e) "SCEP" means Service Charge des Entreprises Publiques; and (f) "BRB" means Banque de la Republique du Burundi. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to twenty two million Special Drawing Rights (SDR 22,000,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement as such Schedule may be amended from time to time by agreement between the Borrower and the Association. (b) The Borrower shall, for the purposes of the Program, open and maintain in Dollars a special account in BRB on terms and conditions satisfactory to the Association. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule a4