Conformed Copy - C2679 - District Health Services Pilot and Demonstration Project - Swedish Grant Agreement

Page 1 CONFORMED COPY TF020052 AGREEMENT RELATED TO CREDIT NUMBER 2679 UG Swedish Grant Agreement (District Health Services Pilot and Demonstration Project) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of Grant Funds provided by THE KINGDOM OF SWEDEN Dated September 30, 1996 TF020052 AGREEMENT RELATED TO CREDIT NUMBER 2679 UG SWEDISH GRANT AGREEMENT AGREEMENT, dated September 30, 1996, between THE REPUBLIC OF UGANDA (the Grantee) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) acting as Administrator (the Administrator) of the Swedish Grant, (as hereinafter defined) provided by the Kingdom of Sweden (Sweden). WHEREAS: (A) Sweden has agreed to make available a grant (the Swedish Grant) through the Administrator, to the Grantee to assist in the financing of the District Health Services Pilot and Demonstration Project (the Project) described in Schedule 2 to the Development Credit Agreement dated April 19, 1995, (the Development Credit Agreement) between the Grantee and the Association, on the terms and conditions hereinafter set forth; (B) by a letter agreement dated March 22, 1996 and April 10, 1996 between Sweden and the Association (the Administration Agreement), Sweden has requested the Association, and the Association has accepted, to administer the Swedish Grant in accordance with the provisions of the Administration Agreement; (C) the Grantee acknowledges that the financial assistance extended to the Grantee under this Agreement (the Swedish Grant Agreement) shall be considered as part of the bilateral develop\1fment aid extended by Sweden to the Grantee; and (D) the Administrator has agreed on the basis, inter alia, of the foregoing Page 2 to extend the Swedish Grant to the Grantee in support of the Project, upon the terms and conditions set forth in this Agreement; 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 Swedish Grant pursuant to 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 "Borrower", whenever used in the General Conditions, means the Grantee; (c) the term "Development Credit Agreement", whenever used in the General Conditions, means the Swedish Grant Agreement; (d) the term "Credit", whenever used in the General Conditions, means the Swedish Grant; (e) the term "Credit Account", whenever used in the General Conditions, means the trust account opened by the Administrator in its books in the name of the Grantee to which the amount of the Swedish Grant is credited (the Trust Account); (f) in Section 6.02 the term "Association" shall also include the Association acting in its own capacity; 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 activities referred to in the Preamble to the Swedish Grant Agreement, the performance by the Grantee and the Administrator of their respective obligations under the Swedish Grant Agreement and the accomplishment of the purposes of the Swedish Grant."; and Sections 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a), and Article XII are deleted. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, in the Administration Agreement, and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings; and "Swedish Kroner" or "SEK" means the currency of Sweden. ARTICLE II The Grant 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 fifty million Swedish Kroner (SEK