Conformed Copy - C3588 - Energy for Rural Transformation Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3588 UG Development Credit Agreement (Energy for Rural Transformation Project) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated December 20, 2001 CREDIT NUMBER 3588 UG DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated December 20, 2001 between THE REPUBLIC OF UGANDA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Association has received from the Borrower a letter, dated April 4, 2001, describing a program of actions, objectives and policies designed to reform and improve the provision of energy for the transformation of the rural sector of its economy (the Program) and declaring the Borrower's commitment to the execution of the Program; (B) the Borrower has requested that the Association support the execution of the Program through a series of credits over a period of ten years, the proceeds of such credits to be utilized by the Borrower in the carrying out of the Program; (C) 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; (D) Part G.1 of 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 part of the proceeds of the Credit as provided in this Agreement; (E) Part E of the Project will be carried out by the Uganda Communications Commission (UCC) with the Borrower's assistance, and as part of such assistance, the Borrower will make available to UCC part of the proceeds of the Credit as provided in this Agreement; Page 2 (F) Part G.2 (a) of the Project will be carried out by the Bank of Uganda (BOU) with the Borrower's assistance, and as part of such assistance, the Borrower will make available to BOU part of 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 following Project Agreements of even date herewith, namely: (i) the Project Agreement between the Association and PSF (the PSF Project Agreement); (ii) the Project Agreement between the Association and UCC (the UCC Project Agreement); and (iii) the Project Agreement between the Association and BOU (the BOU Project Agreement); NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Development Credit Agreements" of the Association, dated January 1, 1985 (as amended through October 6, 1999), with the modifications set forth below (the General Conditions), constitute an integral part of this Agreement: (a) A new paragraph (12) is added to Section 2.01 to read as set forth below, and the existing paragraphs (12) through (14) of said Section are accordingly renumbered as paragraphs (13) through (15): "12. "Participating Country" means any country that the Association determines meets the requirements set forth in Section 11 of Resolution No. 194 of the Board of Governors of the Association, adopted on April 8, 1999; and