Bolivia - Beni Livestock Development Project : Credit 0107 - Credit Agreement - Conformed

0 CREDIT NUMBER 107 BO Development Credit Agreement (Beni Livestock De relopment Project) BETWEEN 0 REPUBLIC OF BOLIVIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MAY 26, 1967 CREDIT NUMBER 107 BO Development Credit Agreement (Beni Livestock Development Project) BETWEEN REPUBLIC OF BOLIVIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MAY 26, 1967 0 Drltopmrt idrbit Agrument AGREEMENT, dated M\ay 26, 1967, between REPUBLIC oF BOLIVIA (hereinafter called the Borrower) and INTE1- NATIONAL DEVELOPMEN ASSOCIATION (hereinafter called the Association). ARTICLE I Credit Regulations; Special Definitions SECTION 1.01. The parties to this Agreement accept all the provisions of Development Credit Regulations No. 1 of the Association dated June 1, 1961, as amended Feb.uary 9, 1967 with the same force and offect as if they were fully set forth herein (said Development Credit Regulations No. 1 being hereinafter called the Regulations). SECTION 1.02. Unless the context otherwise requires, the following terms wherever use(d in this Development Credit Agreement have the following meanings: (a) The term "Central Bank" means the BaRco ('entral de Bolivia. (b) The term "BAB" means the B(ano Agricol(t dc Bolivia. (c) The term "Project Agreement" means the agree- ment of even date herewith between the Association and BAB, as the same may be amended or supple- mented from time to time by agreement between the Association and BAB. (d) The term 1'ranch development plan" means a pro- posal for investing in fencing, stock handling and watering facilities, essential ranch constructions, stock and pasture management equipment and tools, selected pasture establishment and limited numbers 0 4 of breeding cattle or other rcelated on-ranch items or any combination thereof, and for the provision of working capital and technical services in connection therewith. (e) The term "Project Director"i means the livestock expert referred to in Section 2.09 of the Project Agreement. (f) The term "Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and BAB, on terms and conditions satisfactory to the Association. (g) The term "Project Area" means the Provinces of Balli'idn, Ya a, ? aow ory, Ienez, ercado, M31arbdu and Mo.ros of the Departamento del Beni of the Borrower. ARTICLE II The Credit SECTION 2.01. The Association agrees to make available to the Borrower, on the terms and conditions in this Devel- opment Credit Agreement set forth or referred to, a development credit in an amount in various currencies equivalent to two million dollars ($2,000,000). SECTION 2.02. The Association shall open a Credit Account in the name of the Borrower and shall credit to such Credit Account the amount of the Credit. The amount of the Credit may be withdrawn from the Credit Account as provided in, and subject to the rights of cancellation and suspension set forth in, this Development Credit Agree- ment. SECTION 2.03. Except as the Borrower and the Associa- tion shall otherwise agree: (a) the Borrower shall be entitled, subject to the pro- visions of this Development Credit Agreement, to withdraw 」 6 November 15, 20161 each installment to and including the installment payable on November 1.5, 1986, to be one-half of one per ceu t ('/ ) of 114) of such principal amount, and each installment thereafter to be one and one-half per cent (11121lo) of such principal amount. ARTICLE III Use of Proceeds of the Credit SECTIO.NT 3.01. The Borrower shall cause the proceeds of the Credit to be applied exclusively to financing the cost of the goods re(piired to carry out the Project. The specific allocation of the proceeds of the Credit, the specific goods to be -financed therefrom and the methods and procedures for procurement of such goods shall be determined by agreement between the Association and BAB acting on behalf of the Borrower, subject to modification by further agreement between them. SECTION 3.02. Except tis the Ass-ociation shall otherwise agree, the Borrro.srer shall, cause all goods financed out of the proceeds of the Credit to be used in the territories of the Borrower exchisively in JL-be carrying out of the Project. ARTICLE IV Particular Covenants SF,CTIO-,\- 4.01. (a) The Borrower shall cause the Project to be car6ed out by BAB with due diligence and efficiency and in conformity with sound agricultural, administrative, econonde and financial practices and shall cause BAB to be provided, promptly as needed, with th(- funds, facilities, services and other resources required for the purpose. (b) The Borrower shall enter into the Subsidiary Loan Agreement for the purpose of relending the equivalent of the proceeds of the Credit to BAB. The Borrower shall exercise its rights in relation to the Subsidiary Loan A0,reenient in such inanner as to protect the interests of the 7 Borrower and the Association. Except as the Borrower and the Association shall otherwise agree, the Borrower shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving any pro- vision of the Subsidiary Loan Agreement. (c) The operating policies and procedures for the carry- ing out of the Project shall be agreed upon from time to time between the Borrower, the Association and BAB. SECTIO. 4.02. (a) The Borrower shall establish or cause to be established at the Central Bank a Fund (hereinafter called the Project Revolving Fund) under terms and conditions satisfactory to the Association to be used exclusively to make and receive payments connected with the Project. The Borrower shall advance to the Project Revolving Fund, from time to time, promptly as needed, such amounts as shall be necessary to (i) carry out its obligations under the Subsidiary Loan Agreement and (ii) meet the expenditures incurred by BAB, during the first three years of the Project, for the purpose of carrying out the provisions of Section 2.13 of the Project Agreement. (b) Payments by BAB of principal and interest under the Subsidiary Loan Agreement shall be made to the Project Revolving Fund and the Borrower shall cause all sums so paid to be used for the purpose of continuing the financing of livestock development in the territories of the Borrower, except for sums required to (i) service the Credit, (ii) meet the administrativo expenses arising from the Project and (iii) recover, witlin six years from the date of this Development Credit Agreement, the sums advanced to the Project Revolving Fund pursuant to paragraph (a) (ii) above. (c) The Borrower shall cause the accounts relating to the Project Revolving Fund to be audited annually by an accountant acceptable to the Association and shall promptly thereafter and not later than four months after the close of the Borrower's financial year transmit to the Association 8 certified copies of such accounts and a signed copy of the accountant's report. SECTION 4.03. The Borrower shall: (i) maintain or cause to be maintained records adequate to identify the goods financed out of the proceeds of the Credit, to disclose the use thereof in the Project, to record the progress of the Project (including the cost thereof) and to reflect in accordance with consistently maintained sound accounting practices the operations and financial condition of the Project Revolving Fund; (ii) enable the Association's representatives to inspect the Project, the goods and any relevant records and documents; and (iii) furnish or cause to be furnished to the Association all such information as the Association shall reasonably request concering the expenditure of the proceeds of the Credit, the Project, the goods, and the administration, operations and financial condition of the Project Revolving Fund. SECTION 4.04. The Borrower and the Association shall cooperate fully to assure that the purposes of the Credit will be accomplished. To that end: (a) the Borrower and the Association shall from time to time, at the request of either party, exchange views through their representatives with regard to the progress of the Project, the performance by the Borrower of its obligations under this DevelopmenL Credit Agreement, the administration, operations and financial condition of the Project Revolving Fund, the financial and economic con- difions in the territories of the Borrower, and the inter- national balance of payments position of the Borrower; (b) the Borrower shall promptly inform the Association of any condition which interferes with or threatens LU interfere with the accomplishment of the purposes of the Credit, the maintenance of the service thereof or the per- formance by the Borrower of its obligations under this Development Credit Agreement and the Subsidiary Loan Agreement; and 9 (c) the Borrower shall afford all reasonable opportunity for accredited representatives of the Association to visit any part of the territories of the Borrower for purposes related to the Credit. SECTION 4.05. The principal of, and service charges on, the Credit shall be paid without deduction for, and free from, any taxes, and free from all restrictions, niposed under the laws of the Borrower or laws in effect in its territories. SECTIOx 4.06. This Development Credit Agreement and the Project Agreement shall be free from any taxes that shall be imposed under the laws of the Borrower or laws in effect in its territories on or in connection with the execi- tion, delivery or registration thereof. SECTION 4.07. The Borrower shall take reasonable meas- ures to establish and maintain in the Project Area (i) an effective foot-and-mouth disease control program and (ii) an effective procedure for prompt clarification of land titles. ARTICLE V Remedies of the Association SECTION 3.01. (i) If any event specified in paragraph (a) or paragraph (c) of Section 5.02 of the Regulations shall occur and shall continue for a period of thirty days, or (ii) if any event specified in paragraph (b) of Section 5.02 of the Regulations or if any event specified in para- graphs (a) and (b) of Section 5.02 of this Development Credit Agreement shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Association to the Borrower, then at any subsequent time during the continuance thereof, the Asso- ciation, at its option, may declare the principal of the C edit then outstanding to be due and payable immediately, and 10 upon such declaration such principal shall become due and payable immediately, anything in this Development Credit Agreement to the contrary notwithstanding. SECTION 3.02. The following are specified as additional events for the purposes of paragraph (k) of Section 5.02 of the Regulations: (a) BAB shall have failed to perform any covenant or agreement of BAB under the Project Agreement. (b) A default shall have occurred in the performance of any covenant or agreement on the part of the Borrower or BAB under the Subsidiary Loan Agreement. (c) An extraordinary situation shall have arisen which shall make it improbable that BA will be able to perform its obligations undei .re Project Agreeme-. ARTICLE VI Effective Date; Termination SECTION 6.01. The following events are specified as additional conditions to the effectiveness of this Develop- ment Credit Agreement within the meaning of Section 8.01(b) of the Regulations: (a) the execution and delivery of the Project Agreement on behalf of BAB have been duly authorized or ratified by all necessary corporate and governmental action; (b) the execution and delivery of the Subsidiary Loan Agreement on behalf of the Borrower and BAB have been duly authorized or ratified by all necessary governmental and corporate action; (c) the Borrower has deposited into the Project Revolv- ing Fund the amount of one million Bolivian pesos; and (d) BAB has employed the Project Director. 11 HECTION 6.02. The following are specified as additional matters, within the meaning of Section 8.02(b) of the Regulations, to be included in the opinion or opinions to be furnished to the Association: (a) that the Project Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, BAB and constitutes a valid and binding obli- gation of BAB in accordance with its terms; (b) that the Subsidiary Loan Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and BAB and constitutes a valid and binding obligation of the Borrower and BAB in accordance with its terms; and (c) that the Project Revolving Fund has been duly and validly created and that all acts, consents and approvals therefor have been duly and validly per- formed or given. SECTIOx 6.03. The date of October 1, 1967, in hereby specified for the purposes of Section 8.04 of the Regulations. ARTICLE VII Miscellaneous SECTION 7.01. The Closing Date shall be June 30, 1972, or such other date as shall be agreed between the Borrower and the Association as the Closing Date. SECTION 7.02. The following addresses are specified for the purposes of Section 7.01 of the Regulations: For the Borrower: Alinisterio de Hacienda La Paz, Bolivia Alternative address for cables and radiograms: MINHACIENDA LA PAZ, BOLIVIA 12 For the Association: Liternational 1)velopieint Association 1818 H Street, N.. Washington, 1D. (. 20433 United States of America Alternative address for cables and radiograms: lildevas Washingon, ID. C. SECTrox' 7.03. Th incs/ro de iaciend of Ilie 3orrower is designated for the purposes of Section 7.03 of the IRegulations. IN ITNESS AfEREoF, tle parties hl-et.o acting tlroigh their relpesentatives thereunto dly autliorized, have caused Ithis Deveiopment Credit Agreement to be sigied in their respective nm iles ndelivered in the District of Columbia, United States of America, as of the (lay an( year first above written. REPUBLIÄC 1o BOLIVIA By /s/ J. SANJINEs (1. Authorized1 Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ A. BROCTIEs General Counsel 13 SCHEDULE Description of Project The Project, which is the first stage of a livestock develop- ment program of the Borrower, consists in providing beef cattle producers in the Project Area with the following: (1) long-term loans for investment in ranch development; (2) related technical services; and (3) short-term loans for working capital, exclusively from BAB's own resources.