Conformed Copy - L4227 - Water Districts Development Project - Guarantee Agreement

Page 1 CONFORMED COPY LOAN NUMBER 4228 PH Guarantee Agreement (Water Districts Development Project) between REPUBLIC OF THE PHILIPPINES and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated May 15, 1999 LOAN NUMBER 4228 PH GUARANTEE AGREEMENT AGREEMENT, dated May 15, 1999, between REPUBLIC OF THE PHILIPPINES (the Guarantor) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank). WHEREAS (A) the Guarantor and Land Bank of the Philippines (the Borrower), having been satisfied as to the feasibility and priority of the Project described in Schedule 2 to the Loan Agreement of even date herewith between the Bank and the Borrower (the LBP Loan Agreement), have requested the Bank to assist in the financing of Part B of the Project; (B) the Guarantor has requested additional financial assistance toward financing Part A of the Project; and the Bank is agreeing to extend a loan in the amount of two million three hundred thousand dollars ($2,300,000) to the Guarantor (the Republic Loan) pursuant to a loan agreement of even date herewith between the Republic of the Philippines and the Bank (the Republic Loan Agreement); and (C) by the LBP Loan Agreement the Bank has agreed to extend to the Borrower a loan in the amount of thirty-six million three hundred thousand dollars ($36,300,000). (the LBP Loan), on the terms and conditions set forth in the said LBP Loan Agreement, but only on condition that the Guarantor agree to guarantee the obligations of the Borrower in respect of such loan as provided in this Agreement; and WHEREAS the Guarantor, in consideration of the Bank