Implementation Arrangements
Possible Modifications to the Loan Agreements
IFAD Loan Agreements. There are
two loan agreements for IFAD: one for the first project (Loan
No. 573-RWA) and a separate but very similar one for
the twin project (Loan No. 537-RW). There are also two
OPEC loan agreements, one for each project. To avoid possible
delays and minimize bureaucratic procedures, it was agreed
(prior to the interphase evaluation) to maintain the two separate
loan agreements for each of the financiers but to harmonize
them so that the two projects can be implemented as one programme
under one management. In the case of the OPEC loan agreements,
only minor changes are foreseen as the wording of the two
is essentially the same. However, for the IFAD loan agreements,
the following modifications are proposed:
· The ‘trigger indicators’ for progression from the second
to the third phase be replaced with those listed above in
para above, or a subsequently revised version thereof.
· The investment period for the twin project should be extended
from 2007 to 2010, to be compatible with that of the first
project.
· The description of the project (Annex 1), will need
to be modified in both Loan Agreements to reflect the changes
adopted as a result of the recommendations of the interphase
evaluation.
· The disbursement schedules in the two project Loan Agreements
(Annex 2) will need to be harmonized, and possibly modified
(especially to incorporate the newly proposed funds in the
first investment component), with the number of categories
of expenditure combined, whenever feasible, in order to provide
more flexibility in implementation.
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