Conformed Copy - C2798 - Private Sector Competitiveness Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2798 UG Development Credit Agreement (Private Sector Competitiveness Project) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated January 30, 1996 CREDIT NUMBER 2798 UG DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated January 30, 1996, between THE REPUBLIC OF UGANDA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS: (A) the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; (B) the Association has received a letter dated October 25, 1995 from the Borrower describing a program of actions, objectives and policies designed to implement a comprehensive private sector strategy (hereinafter called the Program) and declaring the Borrower's commitment to the execution of the Project; (C) the Project will be carried out by the Private Sector Foundation (PSF) with the Borrower's assistance and, as part of such assistance, the Borrower will make available to PSF the proceeds of the Credit as provided in this Agreement; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms and conditions set forth in this Agreement and in the Project Agreement of even date herewith between the Association and PSF; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Page 2 General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985, with the modifications thereto set forth below (the General Conditions) constitute an integral part of this Agreement: (a) the last sentence of Section 3.02 is deleted. (b) the second sentence of Section 5.01 is modified to read: "Except as the Association and the Borrower shall otherwise agree, no withdrawal shall be made: (a) on account of expenditures in the territories of any country which is not a member of the Bank or for goods produced in, or services supplied from, such territories; or (b) for the purpose of any payment to persons or entities or any imports of goods, if such payment or import, to the knowledge of the Association is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations". 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) "MFEP" means the Borrower's Ministry of Finance and Economic Planning; (b) "Special Account" means each of the accounts referred to in Section 2.02 (b) of this Agreement; (c) "Subsidiary Agreement" means the agreement to be entered into between the Borrower and PSF pursuant to Section 3.01 (c) of this Agreement, as the same may be amended from time to time, and such term includes all schedules to the Subsidiary Agreement; (d) "PSF" means Private Sector Foundation, a company limited by guarantee established and existing under the laws of the Borrower and its Memorandum and Articles of Association dated August 24, 1995; (e) "Memorandum and Articles of Association" mean the Memorandum and Articles of PSF, dated August 24, 1995; (f) "UIA" means the Uganda Investment Authority, established pursuant to Section 3.07 of the Borrower