Amending Agreement. Public Disclosure Authorized LOAN NUMBER 2086 NI. Public Disclosure Authorized. (municipal Development Project) betueen

Transcription

1 Public Disclosure Authorized LOAN NUMBER 2086 NI Public Disclosure Authorized Amending Agreement (municipal Development Project) Public Disclosure Authorized betueen REPUBLIC Op NICARåGUA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPHENT and SECRETARIA DE ASUNTOS HUNICIPALES Public Disclosure Authorized and JUNTA DE RECONSTRUCCION DE MANAGUA Dated 4 f, i

2 LOAN MUM 2086 NI AMENDING AGREEMENT AGREEMENT, dated e -/, 1982, between REPUBLIC OF NICARAGUA (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND(DEVELOPMENT (hereinafter called the Bank) and SECRETARIA DE ASUNTOS MUNICIPALES (hereinafter called SAMU) and JUNTA DE RECONSTRUCCION DE MANAGUA (hereinafter called JRM). WHEREAS by a loan agreement <hereinafter called the Loan Agreement), dated February 4, 1982, between the Borrower and the Bank, the Bank has made a loan to the Borrower in an amount in various currencies equivalent to sixteen million dollars ($16,000,000) on the terms and conditions set forth in the Loan Agreement. WHEREAS by a project agreement (hereinafter called the SAMU Project Agreement), dated February 4, 1982, between the Bank and SMU, SAMU has agreed to undertake the obligations set forth in the SAMU Project Agreement. WHEREAS by a project agreement (hereinafter called the JRM Project Agreement), dated February 4, 1982, between the Bank and JRM, JRM has agreed to undertake the obligations set forth in the JRM Project Agreement. WHEREAS the Borrower, the Bank, SAMU and JRM have agreed to certain changes in the Loan Agreement, in the SAMU Project Agreement and in the JRM Project Agreement and, for such purpose, have agreed to enter into this Agreement (hereinafter called the Amending Agreement), upon the terms and conditions hereinafter set forth; NOW THEREFORE, it is hereby agreed as ARTICLE I Section Article I of the Loan Agreement is amended as V, (a) amend paragraph (d) of Section 1.02 by adding the word "(i)" after the words "pursuant to Section 3.01 (c)", and by

3 -2- adding the following after the words "all Subsidiary Loan Agreement;": schedules to the SAMU "and "SAMU Subsidiary Agreement" means the agreement to be entered into between the Borrower, SAMU and the Municipalities of Chinandega and Le6n pursuant to Section 3.01 (c) (i1) of this Agreement, as the same may be amended from time to time, and such term includes all schedules to the SAMU Subsidiary Agreement;"; (b) delete paragraph (f) of Section 1.02 and add the following new paragraphs (f) and (g): "(f) "JRM Special Account" means -the account to be opened by the Borrower pursuant to Section 2.03 of this Agreement; (g). "SAMU Special Account" means the account to be opened by the Borrower pursuant to Section 2.04 of this Agreement;"; and, (c) renumber paragraphs (g) through (r) of Section 1.O2 respectively (h) through (s). Section Article II of the Loan Agreement is amended as (a) -delete "(a)" from paragraph (a) of Section 2.02; (b). renumber paragraphs (b) through (f) of Section 2.02 respectively Section 2.03 (a) through (e); substitute references to paragraphs (d) and (c) in the text of old paragraphs (c), (e) and (f) of old Section 2.02 therefor refer nces to paragraphs (c) and (b), respectively; and substitute the words "paragraph (a) of this Section" in,the text of old paragraph (f) of old Section 2.02 therefor the word6 "Section 2.02 of this Agreement"; (c) add a new Section 2.04 as "Section (a) The Borrower shall, for purposes of Part D of the Project, establish and maintain a Special Account in Banco Central de Nicaragua, in the name of SAM, on terms and conditions satisfactory to the Bank. Disbursements from the Special Account shall be made exclusively to finance the reasonable cost in the currency of the Borrower

4 of goods and services required to carry out Part D of the Project. (b) The Bank shall, upon receipt of a withdrawal request from the Borrower, withdraw on behalf of the Borrower from the Loan Account and deposit in the SAMU Special Account an amount in the currency of the Borrower not exceeding $2,000,000 equivalent. Thereafter, at the request of the Borrower, the Bank shall further so withdraw on behalf of the Borrower from the Loan Account and deposit in the SAMU Special Account such amounts as shall be required to reimburse SAMU for payments made out of the SAMU Special Account for expenditures for Pait D of the Project eligible for, financing under this Agreement, but only to the extent that the amount of any such deposit, together with any amount remaining on deposit in the SAMU Special Account as of the date of such request, shall not Ixceed in the aggregate the equivalent of $2,000,000. Except as the Bank shall otherwise determine, each such deposit after the first deposit shall be withdrawn by the Bank on behalf of the Borrower from the Loan Account under Category (10) of paragraph 1 of Schedule 1 to this Agreement, and in the same respective amounts as have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph (c) of this Section. (c) Prior to or at the time of each request by the Borrower for a deposit by the Bank on behalf of the Borrower into the SAMU Special Account, the Borrower shall furnish to the Bank in respect of each payment made out of the SAMU Special Account such documents and other evidence as the Bank shall reasonably request, showing that the payment was made on account of the reasonable cost of goods or services required for Part D of the Project and to be financed out of the proceeds of the Loan. (d) If the Bank shall have determined that any payment out of the SAMU Special Account (i) was made for any expenditure or in any amount not eligible for financing from the Loan Account, or (ii) was not justified by the evidence 1!urnished pursuant to paragraph (c) of this Section, the Borrower shall, promptly upon notice from the Bank and, unless otherwise determined by the Bank, prior to any further deposit in the SAMU Special Account by the Bank, deposit in the SAMU Special Account an amount equal to the

5 4 amount of such payment or the portion thereof not so eligible or justified. (e) Notwithstanding the provision of paragraph (b) of this Section, no further deposit in the SAMU Special Account shall be requested by the, Borrower when the Bank shall have determined that all further withdrawals from the Loan Account may be made directly by the Borrower from the Loan Account under Section 2.02 of this Agreement, or when the 'total amount withdrawn from the Loan -Account for Part D of the Project shall have reached the equivalent of $4,000,000, whichever shall"be sooner."; (d) renumber Section 2.03 through 2.09 respectively 2.05 thratigh 2.11; (e) amend paragraph (b) of new Section 2.11 after last comma to read ", C (ih), C(iii) and D of the Project." Section Artidle III of the Loan Agreement is amended as (a) in Section (a) replace the words "C (ii) and C (iii)" by the words "C (ii), C (iii) and D"; (b) delete paragraph (c) of Section 3.01 and add the following new paragraph (c): "(c) The Borrower shall: (i) make part of the proceeds of-the Loan available to SAMU at the same rate of interest as the Loan, under a subsidiary loan agreement to be entered into between the Borrower and SAMU under terms and conditions satisfactory to the Bank; and (ii) make part of the proceeds of the Loan available to SAMU as a grant, under a subsidiary agreement to be entered into between the Borrower, SAMU, and the Municipalities of Chinandega and Leon under terms and conditions satisfactory to the Bank."; and (c) in Section 3.01 (d) add the words "and the SAMU Subsidiary Agreement" after the words "SAMU Subsidiary Loan Agreement" wherever the latter appear. Section Article VI of the Loan Agreement is amended as

6 -5- (a) in Section 6.01 (d) add the word "JRM" before the words "Special Account". Section Schedule 1 to the Loan Agreement is amended as (a) Category (4) shall read "Initial Deposit in JRM Special Account"; (b) Category (6) shall read "Consultants' Services for Part C of the Project"; (c) new Categories (10) and (11) are added as "(10) Civil works 2,000,000 50% of local under Part D expenditures of the Project,(11) Initial Deposit 2,000,000 in SAMU Special Account '; and (d) the amount in Category (9) is amended to read "62,000". Section Schedule 2 to the Loan Agreement is amended by adding a new Part D as "Part D: Municipal Reconstruction I. Reconstruction of: (i) the bridge of San Jose', with an extension of about 80 meters; (ii) the bridge of La Linea, with an extension of about 65 meters; and (iii) the bridge of Don Leon, with an extension. of about 10 meters; all located in the Municipality of Chinandega. II. Reconstruction of: (i) the bridge of Martinez, with an extension of about 50 meters; (ii) the bridge of Mayorga, with an extension of about 20 meters; and (iii) the bridge of Los Angeles, with an extension of about 30 meters; all located in the Municipality of Leon. Section Schedule 4 to the Loan Agreement is amended as

7 -6- (a) amend the second sentence of paragraph B.1 by adding after the word "more" the words ", except contracts under Part D of the Project"; and (b) amend paragiaph B.2 by replacing the words "to each contract" by the words "to each contract under Part D of the Project and each other contlact". ARTICLE II Section The SAMU Project Agreement is amended as (a) amend paragraph (B) of the first whereas of the preamble to the SAMU Project Agreement by adding after the words "conditions therein set forth; and" the following: "by a subsidiary agreement to be entered into between the Borrower, SAMU and the Municipalities of Leo'n and Chinandega, part of the proceeds-of the Loan will be made available to SAMU on the terms and conditions therein set forth; and" (b) the words "Parts B, C (ii) and C (iii) of the Project" are amended to read "Parts B, C (ii), C (iii) and D of the Project" wherever the former appear in paragraphs (a) and (b) of Section 2.01, in paragraphs (b) and (d) of Section 2.08, in paragraphs (a) and (b) of Section 2.10, in paragraphs (b) and (c) of Section 4.01 and in Section (c) Section 2.09 is amended by (i) adding the words "and k under the SAMU Subsidiary Agreement." after the words "under the SAMU Subsidiary Loan Agreement" and before the words "Except as the Bank shall"; and (ii) adding the words "or the SAMU Subsidiary Agreement" after the words "waiving the 'SAMU Subsidiary Loan Agreement" and before the words "or any provision thereof." (d) Section 2.10 is amended by: (i) deleting the words "and under the SAM Subsidiary Agreement" in paragraph (a) and substituting therefor the words ", under the SAMU Subsidiary Loan Agreement and under the SAMU Subsidiary Agreement"; and (ii) deleting the words "and under the SANU Subsidiary Loan Agreement." in paragraph (b) and substituting therefor the words ", under the SAMU Subsidiary Loan Agreement and under the SAMU Subsidiary Agreement."

8 -7- a ARTICLE III Section The JRM Project Ag eement is amended by adding. the word "JRM" before the words "Special Account" wherever the latter appear. ARTICLE IV Section The Amending Agreement shall not become effective until evidence satisfactory to the Bank shall have been furnished to the Bank that: (a) the SAMU Subsidiary Agreement has been executed on behalf of the Borrower, SAMU and the Municipalities of Chinandega and Leon; (b) the SAMU Special Account has been opened; and r (c) the Amending Agreement has been duly authorized or ratified by, and is legally binding upon, the Borrower, SAMU and JRM, in accordance wit bits terms. Section As part 'of the evidence to be furnished pursuant to Section 4.01 of the Amending Agreement, the Borrower, SAMU, JRM and the Municipalities of Chinandega and Leon shall furnish to the Bank an opinion or opinions satisfactory to the Bank of counsel acceptable to the Bank showing that: (a) the Amending Agreement has been "iuly authorized or ratified by, and executed and delivered on behalf of, the Borrower, SAMU and JRM and is legally binding upon the Borrower, SAMU and JRM in accordance with its terms;.and (b), the SAMU Subsidiary Agreement has been duly authorized or ratified by the Borrower, SAMU and the Municipalities of Chinandega and Leon and is legally binding upon the Borrower, SAMU and the Municipalities of Chinandega and Leon, in accordance with its terms. Section The Amending Agreement shall come into force and effect on the date upon which the Bank dispatches to the Borrower notice of its acceptance of the evidence required under Sections 4.01 and 4.02 of the Amending Agreement.

9 -8- IN WITN SS WHEREOF, the parties hereto, acting through their representati es théreunto duly authorized, have caused this Amending Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first Eabove written. REPUBLIC OF NICARAGUA By Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPÑENT By Lat Regional Vice President America and the Caribbean SECRETARIA DE ASUNTOS MUNICIPALES By Authorized Representative JUNTA DE Ri7CONSTRUCCfJN DE MANAGUA By i Authorized Representative

10 0 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Bank for Reconstruction and Development. In witness whereof I have signed this Certificate and affixed the Seal of the Bank thereunto, this /7day of 0, 98. FOR SECRETARY