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World Bank Document CONFORMED COPY LOAN NUMBER 1284 JM Public Disclosure Authorized LOAN AGREEMENT Public Disclosure Authorized (Second Population Project) between JAMAICA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Public Disclosure Authorized Dated June 17, 1976 Public Disclosure Authorized LOAN AGREEMENT AGREEMENT, dated June 17, 1976, between JAMAICA (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). -2- ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guar- antee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the con- text otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth. -3- ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or re- ferred to, an amount in various currencies equivalent to six million eight hundred thousand dollars ($6,800,000). Section 2.02. (a) The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank, for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Loan and in respect of in- terest and other chargea on the Loan. (b) On each of the semi-annual interest payment dates spe- cified in Section 2.07 of this Agreement, the Bank shall, on be- half of the Borrower, withdraw from the Loan Account and pay to itself the amounts required to pay, on such date, interest and other charges on the Loan accrued and payable on or before the date set forth, and up to the amount allocated, in Schedule lto this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank. Section 2.03. Except as the Bank shall otherwise agree, con- tracts for the purchase of goods or for civil works required for the Project to be financed out of the proceeds of the Loan, shall be procured in accordance with the provisions of Schedule 4 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1980, or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of eight and eighty-five hundredths per cent (8.85%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semi-annually on Rpril 15 and Octrober 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. -5- ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project through its Ministry of Health and Environmental Control with due diligence and efficiency and in conformity with appropriate administrative, financial, public health, family planning and population planning practices, and shall provide, promptly as needed, the funds, facili- ties, services and other resources required for the purpose including funds sufficient to cover recurrent costs relating to the Project. Section 3.02. (a) The Borrower shall in consultation with the Bank appoint on terms and conditions (including terms of reference) satisfactory to the Borrower and the Bank: (i) a qualified and ex- perienced person as Project Director who shall, unless otherwise agreed by the Borrower and the Bank, be the Permanent Secretary of its Ministry of Health and Environmental Control and shall have overall responsibility for the implementation of the Project; and (ii) two qualified and experienced persons as Deputy Project Direc- tors to assist the Project Director, one of whom shall be assigned responsibility for coordinating construction and procurement under the Project and the other responsibility for supervising maternal and child health, family planning-and nutrition activities under the Project. The Bank shall similarly be consulted in the case of any future appointments to the posts of the said Project Director and Deputy Project Directors. (b) The Borrower shall cause, on terms and conditions (in- cluding terms of reference) satisfactory to the Borrower and the - 6 - Bank its iCational Development Agency to assist the Borrower's Ministry of Health and Environmental Control in the implementation of construction, and the carrying out of procurement, under the Project. (c) The Borrover shall employ, on terms and conditions (in- cluding terms of reference) satisfactory to the Borrower and the Bank, a qualified and experienced person as Project Coordinator for the Cornwall Couty Health Administration. Section 3.03. In order to assist the Borrower in carrying out the Project, the Borrower shall employ consultants and ad- visors whose qualifications, experience and terms and conditions of employment (including terms of reference) shall be satisfac- tory to the Borrower and the Bank. Section 3.04. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to re- place or repair such goods. (b) Except as the Bank shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Loan to be used exclusively for the Project. Section 3.05. (a) The Borrower shall furnish to the Bank, promptly upon their preparation, the plans, specifications, -7- reports, contract documents and construction and procurement schedules for the Project, and any material modifications there- of or additions thereto, in such detail as the Bank shall reason- ably request. (b) The Borrower: (i) shall maintain records adequate to record the progress of the Project (including the cost thereof) and to identify the goods and services financed out of the pro- ceeds of the Loan, and to disclose the use thereof in the Project; (ii) shall enable the Bank's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out of the proceeds of the Loan and any relevant records and documents; and (iii) shall furnish to the Bank all such information as the Bank shall reasonably request con- cerning the Project, the expenditure of the proceeds of the Loan and the goods and services financed out of such proceeds. Section 3.06. (a) The Borrower shall take or cause to be taken all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for carrying out the Project and shall furnish to the Bank, promptly after such acquisition, evidence satisfactory to the Bank that such land and rights in respect of land are avail- able for purposes related to the -Project. (b) Without limitation or restriction to the Borrower's obligations under paragraph (a) above, the Borrower shall acquire the 26 sites required for Phase 2 of the Project in the locations specified in the Annex to Schedule 2 hereto no later than Decem- ber 31, 1977, or such other date as shall be agreed between the Borrower and the Bank. - 8 - ARTICLE IV Other Covenants Section 4.ol. (a) It is the policy of the Bank, in making loans to, or with the guarantee of,, its members not to seek, in normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution of for- eign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the allocation, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or per- mitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or adminis- trative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfac- tory to the Bank.
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