Conformed Copy - C2916 - Ecodevelopment Project - Assumption Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2916 IN GEF TRUST FUND GRANT NUMBER TF028479 IN Assumption Agreement (Ecodevelopment Project) among INTERNATIONAL DEVELOPMENT ASSOCIATION and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT acting as Implementing Agency of the Global Environment Facility and STATE OF JHARKHAND STATE OF BIHAR Dated January 22, 2003 Page 2 Page 3 CREDIT NUMBER 2916 IN GEF TRUST FUND GRANT NUMBER TF028479 IN (Amendment) ASSUMPTION AGREEMENT AGREEMENT dated January 22, 2003, among the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association), the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank), acting as implementing agency of the Global Environment Facility (GEF), the STATE OF JHARKHAND (Jharkhand) and the STATE OF BIHAR (Bihar); WHEREAS (A) by the Development Credit Agreement dated September 30, 1996, as amended to date, (the Development Credit Agreement) between India (the Borrower) and the Association, the Association agreed to make available to the Borrower an amount in various currencies equivalent to nineteen million five hundred thousand Special Drawing Rights (SDR 19,500,000) (the Credit) to assist in financing the Project described in Schedule 2 to the Development Credit Agreement (the Project); (B) the Borrower has also obtained from the Global Environment Facility (GEF) a grant (the Grant) in an amount equivalent to thirteen million nine hundred thousand Special Drawing Rights (SDR 13,900,000) to assist in financing the Project on the terms and conditions set forth in the Global Environmental Facility Trust Fund Grant Agreement (the Grant Agreement) dated September 30, 1996, entered into between the Borrower (therein referred to as the Recipient) and the Bank; (C) by the Project Agreement (the Project Agreement) dated September 30, 1996 among the Association, the Bank and the States of Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Rajasthan and West Benghal (the Project States), the Project States agreed to undertake certain obligations with respect to the carrying out of Parts A, B, C and D of the Project; (D) the Borrower has advised the Association and the Bank through Gazette Notice No. 38 dated August 25, 2000, of the enactment of the Bihar Reorganization Act (the Act), creating the new State of Jharkhand (Jharkhand), formerly a part of Bihar; (E) the Borrower has advised the Association and the Bank that the Project activities previously to be implemented in Bihar will now be carried out in Jharkhand, and that Jharkhand will be assuming all of Bihar