Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698077675198.pdf (Guyana)
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HJPC DEBT INITIATIVE DEBT1RELIEF AGREEMENT AGREEMENT; dared -~:.>.

, 1999, berweeu CO-OPERAilVE .

INTERNATIONAL REPUBLIC OF GUY ANA·· D~9P~a~~~~)t~~;~tim)'.iin:;;its"_'-0wn~~-~and as ·~:'?f~~~}>~~t~TnsstPamk: .

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- WHEREAS~ (A) pursuant to an initiatiw of the intcmational eomrmmity to · .. reduce the debt burden of heavjl)'..indebtcd poor countries (HIPC&) 10 sustamble levels (RlPC Debi-.. initiafuie), '·'the ' ~ve Directors of the IntttDanonal Bank for R.cconstructi~ ~ Deyelop~t {~ BaDlc) and the Association bave, Oil Nowmber 7, 1996, adogtedhsolutimis Nos.

96-9 and IDA 96-S (the HIPC Tru.


"1: Fund Resolutions), estlbUSliin& ~ HIPC Debt lnitiativc Trust Fund (the HIPC Trust Fund), constituted of ~.comno~ .

.PY-ibt B.~ ~~.f;lcmors;and <administered ey the Association.

to provide relief''cm debt 'owed by eligible HIPCs to the Association and other multilateraJ creditors.

inacccrdance with the provisions of1he'HJPC TntS~Fund Resolutions; .
(B) the Bencficia:ry has, with the support of the donor community, undertabn a broad-based proaram of macr~onomic, structural and· social devclopnicat policy rcfonm (the Macro-«0nomic Rcfonn Pro&nm), and requested debt relief under the IDPC Debt Initiative; (C} the .Association has determined, on the basis of a DSA (u defined herein), tba1: the Beneficiary is eligible for debt· relief under the HIPC Debt Initiative.
and that such request for assistance is consistent with the provisions of the HIPC Trust Fund Resolutions; (b) the Beneficiary's otlm' major creditors h~ve provided assurances satisfactory to the Association that they will take action to reduce the Beneficiary's debt obligations ro sustainable levels; (E) the Executive Directors of the Association have on May 13, 1999, approved the Beneficiary's fulfillmcnc of !he agreed conditions for lhc provision of debt rellcfunder the HIPC Debt Initiative; and (F) the Asso::iation has agreed to provide debt relief under' the HIPC Debt Initiative on debt o'\IW:d by the Beneficiary to the Associat1on throunfi the transfer of the Beneficiary's Identified Debt to the HIPC Trusl Fund at the jme and for L'rie transfer pncc specified hcmn and for the cancella.tion of such debt by the HIPC Trust Fund; NOW THEREFORE the parties hereto hereby agree as follows: Definitions Section 1.01.
Unless the context otherwise requires, the seviimls tett; defined the Preamble to ithis Ag-ftthertt have the respective meanings thereiniset fork and G following additional terms ite the following meanings: (a) "Completioti Date" ratans May 13,1999; (b) de ion-bed in the DSA; "Debt Relief Program" means the debt relic/program for the Beneficiaq (c) flecision Points' means December 23,1997; (d) States of America; )ollars" and the sign "S" mean dollars in the currency of ,e United (e) ; "DSA" means the debt sustainabitity analysis carried out by the Association and .be Interr4ional Monetary Fund together with the Beneficiary.
prior It the Decision Po: in ordel to assess whether assistance is needed under the RD C Debt 'initiative to etis.nt debt sustainzbility and, if so, the projected amount of debt relief required to attdit.
debt sustainability at the Completion Date; (f) -Grant " Means the amount specified in Section 2.01 of this Agrecm.en4 1 • (g) ; 'Identified Debt" means the debt listed in Schedule 2 to this Agreement that is owed by the Beneficiary to the Association and in respect of which debt relief is to be provided pursuant to this Apeement;.and (b) "Trarisfesr I Price" means twenty-seven million one hundred and eight thousand Dollars ($27,1081,000).

ARTICLE fl Provision of Debt Relief Seenbn 2.01.


The Association, as administrator of the IDPC Trust Fund, agrees to set aside in the HIPC Trust Fund, on a grant basis and on the terms and conditions set forth or referred to in this Agreement, art amount of twenty-seven million out hundred and eight thousand Dollars (S27,108,000) (the Grant) to be used to finance the debt relief rcfcrred to in,.
Section 2.02 of this Agreement on Identified Debt in accord:um with the terms of this Agreement, .. section 1.02: Subject to and in accordance with the terms end's:auditions set forth or referral to in thisAgreement, includitg, without limitation, se-her-ha& I to this Agreement a) 10.,444t a(No!evegitYkigsrn,t0 E3Escorto the-ASsoeiation.

It as of the TES .

tine ' 'i magliffigtWfaJ ticiiiiiiiiat to .ada*Aror tE3 'inttil , " r. .
iltitgi14an.—t-iar the the Associspivisc# REPC Trust Prgicknie",*iiiiilie tiii4i erg: '' tof the-*IgOiaadiiiiittaitfot the the Identified Debt and discharge fluster m it, of thelclernitifintipabiaid then to cancel the Beneficiary foam its Obligations ittiespect of the Idctified Debt.

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Schott 2.03.


Thu Beneficiary shall not have any rights with respect to the Groat, and Me AssOciatiou shall not haveany obligations with iespect Marto, except as stated in this Agreenaeg.
The Asseciation does not assume say fitlimierY obligation or - relarionahiPL0fflerteX ?tett for or with, the BenefidarY, or assume auv liability to the acneficizrre any othei/ personfar any action taken or omitted to be taken by it, except for the rsolc name of ns express oblitions.

set forth in thisi Agreement Nothing in This Scalot is intended, nor shall be construed, as a waiver oF any triages or immunities Of the Association.

Section 2.04.
Section 2.04.

The Association shall be under no obligation to provide attlt relief int this A =meat, except to the extent that grant funds are available made.

the HIPC Trust Firmi f.. r this purpose and the conditions precedent to the release thettof have been fulfilled.

Sect an 2.05.

The Association shall, following the date on which t e Identified • Debt is trazOirared.to the Association, as administrator of the HIPC Trust Fa, promptly refund to the Recipient any payment of principal.
and service charges made by the Recipient ati the Association with respect to the Identified Debt forting due between the last day of the month in which the Completion Date occurs and the date on which the Identified Debt is transferred to the Association, as administrator of the WPC Trust Fund.

ARTICLE III Conditions Precedent to Provision of Debt Relief and Release of Grant Section 3.01.
The obligations of the Association under this Agreement art subject to the fulfillnient of each of the following conditions to the satisfaction of the Association: (a) the Beneficiary's other creditors shall have agreed to provide debt relief to the Beneficiary under the RIPC Debt Initiative;., -.. .,._ .

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4 • • (b) the As9ociuion shall have n::ceived evider1ce satisfactccy to it that this Agreement has been duly authorimi or rati&cd by the Bencficia:y, bas hem duly executed· and delivcrtd by the Benetidary.

and is lcplly binding upon the 'Beneficiuy in accordance with 'its terms; and (c) lhc .Association shall~ icceived evidence satisfaccOry io i1 ihzi the· execution and deliVCiy by the BeneficWy of this Agreement.
and me pcrfoummce by the Beneficiary of its obliptioos hereunder, do not and will not eouflict widl or rault in a breach of: (i) the terms or provisions of, oc constitute a default under, 21DJ agiccmc:nt or instrument to ,vbich the Bme.ficiary i$ a party.

or (ii) any law or statute.

or 1QY order ar regulation applicable to the Beneficiary of any ~ eovcmmcnt agcacy, amhority or body or arbitrator baviugjurisdictic:m ow:rthc Beneficiary.
Section 3.02 As part of the cvidc:oce to be fumisbed pursuant to Sedioo 3.01, the Beneficiary shall tUmish to the Association an opinion or opinions satis&CU>ry to the -" .Association of coumd acceptable to the Association or, if the Association so requests.

a certificate satisfactory to the Association of a competent official of the .Bc:ncficiay, on the maacrs descnbcd in Sections J.Ol(b) and 3.0l(c) of this Agreea:eoL ARTICLE IV Cooperation and Wormatton; Undertakln&s; Annual Revkw Section 4.01.
(a) The Bcneficiaiy md the Association shall Ce>operatl: fully to C!lSure that the purposes of this A.gn:cment will be accomplished.
To that end, the Beneficiary and the Association shall: (i) from time lO time, at the request of any om: 0£ thc:m, cxcbangc views with regard to the pro~ of the Macro-econoatic Reform Proiram· and the Debt Relief Program and the this performance of Agreement, and furnish to the other party all suc}l information related thereto as that other Jmt}' shall reasonably request; and respective · obligations under their (ii) promptly inform one another of any condition which interferes with.
or threatens to intcrf crc wich, the matters referred to in subparagraph (i) of this paragraph.

(b) The Btneficiuy shall · afford all for representatives of the Association to visit any part of its territories for purposes related to chis Agreement and the HlPC Debt hiitiativc.

reasonable opp<X"tunity • ... "" • / ..) " L ' (' -5 - Scctio:i 4.02.
The Bc:ncficimy shall furnish to the Association all such information as the Association shall reuonat>ly request with ~ to financial and economic conditioos in its territory includiJJg its balance of payments and its external debt as well as that of its political or administrative subdivisions and any entity owned or controlled by, or operating fo:r the ac:cOunt or benefit.

of.
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the Beneficiary or any such subdivis1on and any institution performing the functions of a ceritral bank or exchange stabilizaticm fund.

or similar fimctic:m. for the Benefieiary • .

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ARnCLEV Suspemloa; Canccllatioa .· .,.

Scctioo S.01.

If any of the following events &ball have ocemrod and be continuing.

the Association may, by notice to the .Bcnefi~, susptnd ill whole er in part 1hc ripti of the Beneficiaiy and the oblipticms of the Association under this Aareement: .
(a) the Beneficiary shall ha~ failed tO mah payment (no~ the &ct that such payment may have bcc:n made by a third party) of priDcipa1.
inierest, service chatics o:r any other amount due to the Association or the Bsnk: (i) under any dc~lopment credit agreement between the Beneficiary and the Association; or (ii) und::r any loan or guarantee agreement between lhe Beneficiary and the Bank; or (iii) in consequence of any guarantee or other financial obligation of any kind extended by the Bank to any third person with the agreement of the Beneficiary; (b) this Agreement; .
the Beneficiary shall have failed to perform my of its obligations under (i) (c) the Association or: the Bank shall have susi>ended in whole or in part lhe right of the Beneficiary to ma.kc withchawals under any dcvelopmm.t credit agreement with the AiSociation or any loan agreement with the Ba.Dk because of a failure by the Beneficiary to perform any of its obligations under such agrcemmt; or (ii) the Bank shall have suspended in whole or in part the right of any borrower to :nake withd.
""awalS under a loan agreement with the Bank guaranteed by the Beneficiary becwse of a failure by 611Ch borrower to perform any of its obligatioos under s~h agreement; (d) any representation made by the Beneficiary, in ¢r pW'Suant tO this Agrcemcrlt, or in coonccti.on therewith, and intcnde<i.
to be reli"'-d upon by the Association in perfomring its obligations under this Agreement, shall have been incorrect in any material respect; (e) 2.S a result of C\/Cll.S which have occuned after the date of this Agreement, an extraordirwy situation shall ha.ve arisen which shall make it improbable: -6- that the Beneftciaty will be able to fulfill the conditions for the pro1-ision of debt ~lief to 1t uader the HlPC Debt Initiative or that 1hc Debt Relief Program c;an be carried out; or .
(f) the Beneficiary: (i) shall haw been suspended &om mcmbc:rship in or cased to be a member of the Association; or(u') shall haw ceased to be ti mcmbar oftbc International Monetary Fund.

The rights of the Beneficiary a:ad tbc obligations of 1be ~~~ this Agreement shall ~ to be suspeoded until the evcm or· events ~ch p-wc rise to suspension shall have ccaacd to exist.

unless the Association shall have ftOCificd the Beneficiary that such rights and obliptioos haw been restored.

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• Section S.02.

If the ri&hts of the Beneficiary and the obligations of the Association &hall have been suspended for a continuous -period of thirty da}'$, the A£oociation may, by notice to the Beneficimy.

tc:nninate the riabr:s of the Bene&iary and .

the obligations of the Association under this Agmmem.

Upon the aivina of such notice~ the Gt1lnt shall be canceled and all righ!s of lhc Beoeficiaiy and.

oblipiions of the Assocjation UDder this Agreement shall cease to exist.
ARTICLE VI EnforceabWty of Agt'ffttient; Failure to Exercise aithts: Arbitration Section 6 .01.

The rights and obligations of the Bendiciaiy and the Association u:-.der this Agreement shall be valid aod enfocceable in accordance with their terms notwithstand:ins the law of any State or p0litical subdivision thereof to the contrary.
Neither the Beneficiaey nor the Association shall be entitled in any procccdin& under this Article to assert any claim that any provision of this Agrcc:mcnt is invalid or unenforceable because of any provision of the Articles of Aarecincnt of the Association.

Section 6.02.

No delay in exercjsina, or omission to exercise, any right, power or remedy accruing to either pmty under this Agreement upon any default shall impair any such right.
power ar remedy or be construed to be a waiver thctcof or an acquiescence in such default.

No action of such party in rcspcc:t of any default.

or any acquiescence by it in my defa.

'.Jlt, shan affect or impair any right, power or remedy of sm;h party in respect of any other or subsequent default.

Section 6.03.

(a) Any controvcny between the parties to this Agreement.
and any claim by either such part;• &&&inst the other arising under tl-Js Agreement whli;h has not bOl:U settled by agreement of the parties shall be submitted to arbitration by en Arbitral Tribunal as hereinafter provi<ied.

(b) The parties to sucn arbitration shz.11 be the Association and the Beneficiary.

.... _ ......... -............ ___ .... 3ICO - 7 - ( c) The Arbitral Tribunal shall consist of three arbitratoCS appointed as follows: one arbitrator shall be appoin!cd by.
the Association, a second arbitrator shall be appointed by the Beneficial)'.

and the third arbitrator (hcrcinafu:r sometimes called the Umpire) shall be:: appointed by agreement of the parties er.

if they shall not acrcc.

by the Presidertt of the Jntenw:ioml Court of Justice or, failing appointnlent .by slid President, by the Secretary-General of the United Natiom.

If either of the puties i.ban fiail to appoint an arbitrator, such arbitrator shall be appcrintr.d by the 1UJiqnrc.
In case any ubittator appointed ib accordance with dUs Section shall resign, die or become unable to act.

a successor arbitrator shall be appointed in the Same manner as herein prc:$Ctl"bcd for b appo~ of the orieinaJ arbitrator, and S\leh successor shall ha.

'IC all 1hc powers and duties of suob original arbitrator.

(d) An arbitration proceeding may be ~d under this Section upon notice by the party instituting such 'procccdina 10 the otbc:r party.
Such notice sha1l contain a. statement scttiog forth the aatW'c of the oomrovcrsy or claim to be submitted ·to ubitratim, tbc nature of fhc relief sought, and the name of the arbitrator appoimd by the party instituting .such proceeding.

Within thirty days a.tkr such noti<.'e.

lhc other party shall notify to the party instituting wch proceeding the name of the atbitrator appointed by such other party.
(e) If within sixty days after the notice instituting the arbitration·procecding, the parties shall not have; airced upon an Umpire.

either party may request the 41ppointment of an Umpite as provided ii\ ~h (c) of this Section.

(0 The Arbilral Tribunal sho.11 convene at such time and place as shall be fixed by the Umpire.

Thereafter,~ Arbitral Tnbunal shall dc:tc:rm:ine whc:rc a.ud when it shall sit.

· (&) The Arbitral Tnl>unal shall dt.icide all qucstiens relating to its .
competence and shall, subject t.o the provisions of thi!5 Section and cx.ccpt as ch.c parties shall otherwise agree, determine its procedure.

All decisions of the Arb1tral Tribunal sh&ll be by majority vote.

(h) The .AJt>itral Tribunal shall afford to all parties a fair bearing and shall render its award in WTiting.

Such award may be rendered by dell.ult.

An av.-ard si&ncd by a majority of the _..mitral Tribunal shall constitute the award of such Tribunal.
A signed counterpmt of the award shall be trMsmittcd to each party.

Any such award rendered in accordance with the provisions of this Section shall be final and binding upon the parties to this Agreement.

~h party shall abide by and comply with any $\lCh a"'-ard rendered by the Arbitral Tribunal ~n accordance with the provisions of this Section.
The partii:s shall fi.~ the amount of the remuneration of the arbitrators and such other persons as &hall be required for the conduct of the arbitration procc:cdings.

(i) -s - If the parties shall not agree Ort such amount before th: Arbitral Tribunal shall convene.

the Arbit:W Tribwlal shall fut such amotmt as shall be reasonable under the circumstances.

Eaeb party wll defray its own expenses in the arbitration proceedings.

The costs of the Atbicrai.


TriblDlaJ shall be divided between and borne equally by the parties.

·Any quectlon concerning the division of the CO$tl of the Albitral Trib&mal or tbc proceeure for payment of ;ueh COs1s shaJI be dcteanincd 'by ihe Arbitral_ Tn""bunal.

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G) The provisions of arbitration set forth in this Section &hall be in lieu of my other procedule for · the sett1emmt of controvcmcs between the parties to this Agreement or of any claim by either party against the ocher party arising hereunder.
(k) ' The Association shall not be entitled to enttr judamcnt against the Beneficiary upon the a.watd, to enfon:e the award agaimt the BCDC5ciary by execution or to pursue any other remedy against the Beneficiary fer the ebforcemem 'of tbe award, ~t as such pr~e may be available against the Beneficiary OCbawise than by reason of 1he provisions of this Section.
It within thirty days after countctparts of the award shall have beec delivered to 1hc parties, the award shill not be complied wiih by the Association.

the Beneficiary may take any such action for the cnf()['Cement of the award against the .Aasociation.

(1) Service of any !lotice or process in connection with any proceeding under thls Section or il'I cormcction with any proceeding 10 enforce any av.
'al'd rendered purniant to this S~tion shall be made in the marmcr provided in Section 8.01 of the Agrecmait.

The parties to this Agreement waive any and all other requirements for the service of any such notice or ptOC1;SS.

ARTICLE VU EC!ectivc Datt:; Duration aad Termiaation Section 7.01 .

This Agreement shall become etf ecti ve upon its execution by the parties.

Section i.02.
Section i.02.

This Agreement shall continue in effect until the Gram bas been fully disbursed and the par'lles to this Agreement have fulfill::d an their obligations thereunder.

ARTlCLEVIll Notices and Addresses ~tion 8_01.

Any notice or request required or pennin ed t\l be given or made under this Agreement and any a6feen'IC:lt amon~ the parties contemplated by this Agreement shall be in writing.
Such notice or request shall be d"1Ded to have been duly given or made whe:i ic shall be delivered by ;iand c:r by iru.

:1, telegram, cable, telex or I • '(( GUY.-l.'J.o\ DIBASSY -9 - !l1010 ~' ,J.-1 radiogram to the party to which it is required or permitted 1D be Jivet or made at such party's address hcreinafict specified 0r at such other addiess as sldi party shall have designated by notice to the pany giving sucll notice or making i.i.rcll request.
The addresses so specified are: For the Beneficiary: Ministry of Finance Main.

and Urquart Streets Georgetown Guyana Cable address: _Telex: 3038 For the Association: International Development Association 1818 H Street, N.W.

Washington, D.C. 20433 United Stares of America Cable address: Telex: .INDEVAS Washington, D.C 248423 (MCI) or 641 45 (MCI) .. .. .. .

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I • 10 - lN WITNESS WHEREOF, the parties hereto, acting through lheir duly aU!horized TeJ'!~CD:~ycs1 ba~Agreemcot to qc~~ in their respective t\2D\CS in the j)~ef , J ~~ ~ ,,fl ~as of the day and )'QT fin"t above writfen.

I CO-OPERATIVE REPUBLIC OF GUYANA : .

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:~.=: By INTERNATIONAL DEVELOPMmf ASSOCIATION in its own capacity aDd as administtator of the HIPC Debt .Initiative Trust Fund By ~~«' .. o.J'~ Rc&ional Vice President ~America and tbe Caribbean