Conformed Copy - C3180 - Third Social Fund Project - Project Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3180 MAG Project Agreement (Third Social Fund Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and FONDS D'INTERVENTION POUR LE DEVELOPPEMENT Dated April 6, 1999 CREDIT NUMBER 3180 MAG PROJECT AGREEMENT AGREEMENT, dated April 6, 1999, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and FONDS D'INTERVENTION POUR LE DEVELOPPEMENT (FID). WHEREAS (A) by the Development Credit Agreement of even date herewith between Republic of Madagascar (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to ten million seven hundred thousand Special Drawing Rights (SDR10,700,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that FID agree to undertake such obligations toward the Association as are set forth in this Agreement; (B) by a Convention to be entered into between the Borrower and FID, the proceeds of the credit provided for under the Development Credit Agreement will be made available to FID on the terms and conditions set forth in said Convention; and WHEREAS FID, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Page 2 Section 1.01. Unless the context otherwise requires, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. (a) FID declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph