Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698833788734.pdf (Sierra Leone)
J J I J l l l .l .l I ,F?- NE DE A\ .D .t o o YEL .NTF/FSh{ NIGERIA TRUST FUND 'FoNDS sPEctAL DU NtGER|A LOAN.AGREEMENT BETWEEN THESDPUBLIC OF SIERRA LEONE AND TIM AERICAIi{ DEVELOPMENT BA}IK Q\cting on behalf of the Nigeria Trust Fund) (COr-EID'IYOIRE, LIBERIA, SIERRA LEONE ANI) GUTNEA (CLSG) ELECTRICITY NETWORKS INTERCONNECTTON PROJECT) i '1.
t at .,_ I't E PARLiAMENT= LIBRAR Y TowER flilL fttEE LOA}[AGRI,EMENT BETWEEN TTIE R-EPUBLIC OF SIERRA LEOIYE AIID TTIE AFRICA}I DE\TELOPMENT BANK (Acting on behalf of the Nigeria Trust Fund) (COTE D'IVOIR.E, LIBERIA, SIERRA LEONE A}ID GUTNEA (CLSG) ELECTRICTTY NETWORTG INTERCONNECTION PROJECT) PROJECT ID No : P-ZI-F00-046 LOAN No :2200160001139 - (SOS: 6.67) This LOAN AGREEMENT (hereinafter referred to as the "Agreement") is entered into this day of ) .
2013 between the REPUBLIC OF SIERRA LEONE, (hereinafterreferred to as the "Borrower") and the IlOuf.+rr rBtra i}r. 1 AFRICAN DEVELOPMENT BANK (hereinafter called the 'Bank"), acting on behalf of the MGERTA TRUST FUND (hereinafter called the'NTF").

WHEREAS: 1.
WHEREAS: 1.

The Republic of Cote d'Ivoire, the Republic of Liberia, the Republic of Sierra Leone, and the Republic of Guinea (together the "CLSG Member States" ) have jointly and severally agreed to enter into a Treaty for the Construction Operation and Development of the CLSG Interconnection Line (hereinafter the " Treaty").

The purpose , -'!lf t4i'tie44, is to inter a/ia establish the fmancing, construction, S operation, m-@ptenance, ownership and development of the CLSG --,.. (cA EI I T I II !
s E E E E TI T E EII E EI E E !

I !t 2 Interconnection Line amongst the CLSG Member States (hereinaft er the'"rojectl'); 2.

Bv virtue of the 'freafv.

the CLSG lvlember States have ffeated a Special-Purpose Company (hereinaiter the "SPC"), equally orvned by the National: Electriciry Companies (Uep-inlfer tofettier the "NECs") of the CLSG Member States, ,having supranational character, to implement the Project.

The SPC, titled the CLSG Regional 'fransmission Companl.
s'ill iziar alia fnutce, construct, develop, operate and maintaia the CLSG ligh tension electricity transmission line and its substations; 3.

By virrue of the Treatv*, ttre CLSG }vfember States and the SPC agree to jointl-v and severally enter into an lntemational Project Agreement to govgm th-g implemenarion of the Project; 4.
The Executing Agencies of the Project are the West African Power Pool (hereinafter the "\\/APP) ibr the capacitl' building s',b- component ol^ *re Projgc-,t; &e NECs o[ each ,qLJ]q.CI-SG Member States.

lor the rural elecffication component o.f ee"Fmjgq and the SPC for the construciion and operation of the CLSG Intermnnection Line.

5.

The National Poyer Authority ( hereinafterthe -NPA?
)_ the Executmg Agency for the Sierra Leone Rural,- component of the Project; E T E E E I E E fi E E I I aI E E T I I T J 6.

The Bank has, by virtue of the Agreement establishing the NTF dated26 February 1976, benveen the Federal Republic ofNigeria and the Bank, agreed to administer, on behalf of the Federal Republic of Nigeri4 funds placed at the Bank's disposal for loans to be granted to the Bank's members for the purpose of contributing to their economic development and social progress; 7.
The Borrower has requested the Bank to finance from the resources of the NTF, part of the foreign currency cost and part of the local currency cost of the Project by providing a Loan to it in the - arnount specified hereunder; 8.

The Borrower has declared its commitment to the execution of the Project; 9.
The Project is technically feasible, economically viable, socially desirable, environmentally sustainable and constitutes a suitable basis for financing under the activities of the Banh and :; 10, The Bank has agreed,.on behalf of the NTF, and on the basis inter alia, of the foregoing to provide a Loan to the Borrower upon the - terms and conditions hereinafter set forth.

FORE, the parties hereto hereby agree as follows: I I I!

I I I Et 4 ARTICI.JI GEITERAL CONDITIONS-DEFIMTIONS ,] a t Section I .01 .
Gareral,Conditions.

The parties to this Agreement- a.cc_qt all of the provisio4s of the General Conditions applicable to,the Loan-- and Guarantee Agreements of the African Development Bank, as amended from time to time, (hereinafter referred to as the *Geqeral Conditions"), with the same force and effect as if they were fu[y _sq .

: forth herein.

.

Section 1.02.

Definitions.

Whenever used in this Agreement, unless thc context and the text otherwise require and establish, the several terius.
defined in the Gene-ra1--Co-Edltions shall have the ,rlspective meanings set forth therein.

ARTICLE tr THE LOAN Section.

2.01.

Amount.

The Bank agrees to lend to the Borrorver, from t}le resources of the NTF, an amount not exceediqg the equivalgnt of SLr Million Six Hundred and Seventy Thousand Units of Account (uA 6,670,000).

Section 2.02.

Purpose.


The Borrower agrees th4t the purpose-of-the - Loan is to financepart of the foreigr curency cost and p4rtbf tni-tO-da crurency cost of the Project.described in Annex I .ffn$Srop*, : ( I - { { I I I, I II ,l I I i ,.

Section 2.03.

Allocation.

The Loan shall be allocated to the categories of expenditure in conformity with Annex II of this Agreement.

Section 2.04.

Currency of Dis and Pavments.


(a) All disbursements made by the Bank to the'Borrower shall be denominated _in,UniJed States Dollars; and (b) All arnounts due to the Bank pursuant to this Agreement shall be payable in United States Dollars.

ARTICLEItr REPAYMENT OF TIM PRINCIPAL, SER]4CE JIIABGE, COMMITMENT CIIARGE AND DATES OF PAIMENT Section 3.01.

Repayment of the Principal.


The-Borrower shall repay the principal of the Loan over a period of twenty years (20 years), after a seven (7) year grace period commencing Aom the date of this Agreement.

Section 3.02.

Service Charse.

The Borrower shall pay a service charge (the "Service Charge") at the rate of three-quarters of one per cT) Q.75%) per annum on the principal amount of the Loan disbursed aiiaaririqi{in€ fromtimetotime.

s-1 .\\ N 6 Section 3.03.

ComrrritrneDl lQllaIgq.


The Borrowershall pay L commitment eharge (the "Commitment Charge") at the rate of one half of one per cent (0.50%) per annum on the undisbursed portion qf the ,toan, which-shall begi4 to accrue ooe hundred and twenty (120) days after the date of signature of this Agreement.

Section 3.04.
Section 3.04.

Dates The principal of the I.oan shall-bq:-.1- repaid in equal and consliutive s-emi-affIual instalrn- ents, thetidi of -' which shall be payable on the 159 March or 15s September whichever :- immediately follows the expiration of the grace period refened to in Seotion 3.01 above.

TheService Charge and the Commitment CharSS qhall be payable qeqi-annyly or the same dates.

,t ' .

ARTICLE I\/ COIIDITIONS PRECEDENT TO ENTRY INTO FORCE Section 4.0t.
Conditi ons-?recedent to forc" of the'Loan'Agr€ement shall be subject to tfret iilf.

*i-uy in. '

' Borrower of the provisions of Section 12.01 of the General Conditions.
en(y into EI E E!I a E I ARTTCLE V NDITIONS PRECEDENT TO DISBI.JRSEMENTS AND OTHER CONDITIONS Section 5.01. ,Conditi pbligations of the Bank to make the first disbursement of the to 'u- iI I iE E E 3I l l 7 be conditional upon the entry into force of this Agreement in accordance with Section 4.01 above and the submission by the Borrower of evidence, in form and substance satisfactory to the Bank, of the fuIfilment of the following conditions: a) Provide evidence of signing an onJending agreement for the ' utilization of the proceeds of the Loan to the SPC upon terms and conditions acceptable to the Bank, for the construction, operation and maintenance of the CLSG transmission line and substations; and I a,I E b) The State hosting the SPC Headquarters shall provide the Fund with evidence of: (i) ratification of the Treaty by the CLSG Member States; (ii) evidence that the share capital for the SPC has been paid in full; and (iii) appointment of the finance manager and accountant for the SPC, whose skills and qualifications are acceptable to the Fund.
Section 5.02.

Other conditions: a) The Borrower shall submit to the Bank, not later than 30 June 2014, evidence of having secured fmancing from the EIB to ,- .

Qance part of the costs of the infrastructure component of the Proiect; a - --.

: --- :ai -i 1-s .

: i i t EI!

I I I !

I 8 b) Prior to commencement of works on its territory, the Borrower.
will provide evidence of: (i) acquisition of land and/or compensation of the Project Afflected Persons (PAPs) in each concemed lot; and/or (ii) provide evidence of having an escrow' account and deposited resources for:.::,1p.g..-.
:, ,Cgmpensationbf the PAPs that have not yeLbeen compg-qs,aqEd3 '' in accordance with the Environmental and Social Manpgement : :.qgnarkpd Plan and the Compensation Payment Schedule; and c) The State hosting the SPC Headquarters shall: (i) submit to the - Bank a copy of the Intemational Project Agreement sip, d between the CLSG Member States and the SPC, whose terms and conditions are acceptable to the BaDk; (ii) a coBy of the:- Shareholders'.
Agreement signed by preparation of the SPC organization Project Implementation Manual and financial manual SPC, within six (6) months from the date of frst disbunemenl.

,- ARTICLE Vt UNDERTAKINGS Section 6.01 The Borrower hereby undertakes 19: a) Implement .and, report on the implemenJation Environmentzil' and Social updated Ri{P' on'a semi-aniiual basis, no:l I I +- \:J I E I El!
I II I I t. -l t,l 1 I I l i iiiti lil il -9- days at the end of each reporting period in a form acceptable to the Bank; and b) Prior to commencement of works, submit an Environmental and Social Management Framework for the electrification component of the Project.

i-l ARTICLE VTI REPORTTNG MONITORING Section 7.01.


The Borrower shall ensure: a) The SPC shall prepare and fumish to the Bank, a quarterly proj ect implementation report, within thirty (30) calendar days of the end of each quarter; and b) The SPC shall prepare and fumish to the Bank, a Project Completion Repor!

within six (6) months following project completion.

Section 7.02.

Audit.


The SPC shall submit to the Bank, within six (6) months after the end of each financial year, annual audited financial sta.tements together with th-q alditor's report and management letter.

The audit of the arurual financial statements shall be conducted bv .indep entlept'auditors acceptable to the Bank, and in accordance with ---' audit terms df reference approved by the Bank.

-a\Y,-.

E !

I I I I I E E E EI E I I t !

E E E EI E I T !

{ i --l !t { !

l -1.


I i tl I E I E H E -10- ARTICLE VIII t I DISBURSEMENTS AIID APPLICATION OF AMOUNTSDISBURSED Section 8.01.

Disbrtrsements, The amount of the Loan'shall be disbursed by theBank'subject to the provisions of this Agreemenl an{- - : the General Conditions, for the purposes set forth in this Agreement Section 8.02.
Deadline for Final Disbursement: The Closing Date shall be 31" December 2018 or such later date as shall be agreed up-ol- in wdting between the Borrower and the Fund.fgr the-purpoqes;oJr; : Section 6.03 (l[f) of the General Conditions.

Section 8.03.

Application of Disblrsegenls.

Amounts disbursed.on ' account of the Loan shall be applied by the Borrower solely for.rthe,'.'

& ARTICLE IX PROCUREMENT OF WORKS AND SERVTCES Section 9.01.

Procuremont of Works.


Works necessary for the execution o[ the Project shall be procured in accordance with the.

Project Appraisal Report" the Bank's Rules and 'Procedures fo;y '.
Procurement of Goods and Works, adopted in May 200 in July 2012, as amended from time to time, and as:,further set out,, below - ll - a) Procurement of works for the construction of a transmission line and substations, and the supply and installation of power infrastructure and equipment, will be done by the SPC using Intemati etitive Bi (lCB) procedures, with pre- qualification.

Section 9.02.

Procurement of Services.
Services necess arv for the execution ofthe Project to be financed from the resources ofthe NTT will be procured in accordance with the Project Appraisal Report, the Bank's Rzles and Procedures for the Use of Consuhanls adopted in May 2008 and revised n Idy 2012, as amended from time to time, and as further set out below: a) Procurement of consulting services for the audit of the SPC and the NPA, and for the preparation of a procedures manual, shall be undertaken on the basis of shortlisting using Least Cost Selection (LCS) method.
Section 9.03. Review Procedures.
The followin g documents will be submitted for review and approval by the Bank prior to publication: General Procurement Noticg Request for Expressions of Interest, Specific Procurement Notice, Bidding Documents or Requests for Proposals ftom Consultants, Requests for Quotations, Evaluation repdrtln suppliers' bids including recommendations relating to the --jbward oi i-o4tracts, Evaluation report on the consultants' technical ] proposals, Piiposals for the award of contracts as well as the minutes \ I I E IE T I I I I II r l : -12- of, the negotiations; and a signed and initialled copy of the contract.
The review thresholds are attached as Annex IlI.

Section 9.04.

Procurement Plans.
The Borrower-shall submit to- and have approved by the Bank, a Procurement Plan The Procurement Plan shali set oul, among other things: (i) the particular contr4cl+for , the services required to carry out thc Project diring an initial nglod, qf at leasl eighteen (18) months; (ii) the proposed methods.fori--" -procurement of eacl such contract, and (iii) the related Bank's review , pro.cedires The,Procurement-Plan shall be updated ar-rnrally or mere, - frequently if needed, during the implementation of the Project to-cover 'each succeeding pgriod, in.
all cases subject to the approyal of the-Bank-,.

.

- ARTICLEX .

1VIISCELLANEOUS PROVISIONS I Section 10.01.

Extraordinary or Unforeseeable Event.

Where an' extraordinary or uqlbreseeable situation has arisen, which, in the opinion ofboth parties, islikely to be prejudicial to ttre execution ofthe ' Projec!

the Bank may.
the Bank may.

in order to cover thc cost of any specialized rqspection or other action.Iltuired to redress the situatiorr, allocate out : a of the, proceeds of the Loan,an ifnount not of ;gne per cent (17o).of the-.I-Oan amount or Sixty Six Thousand an{ _ ' -: Seven Hrrndred Units oJ Account (UA 66,700); These expe.

nsjq SElllq i I i t met without the necessity of any advance application by.Jhe Bono1l,.

{C ,, ,,:' .'
{C ,, ,,:' .'

-,: * - : I EI E I I n E I + -13- but the Bank shall promptly notif the Borrower of the precise amount allocated.

Section 10.02.

Authorized ves.

The Minister of Finance and Economic Dwelopment of the Borrower or such other person as the Minister may desipate in writing shall be the authorized representative for the pu{poses of Section 11.02 of the General Conditions.

Section 10.03.

Date of the Aseement.


For purposes of this Agreement, the date thereof shall be that appearing in the opening sentence of the preamble hereof.

I E E T t I x I E t E 'a I E E TI I E E I EE' I I t -14- Section 10.04.

Addresses.
Addresses.

The following addreses are specified,for the purposes ofSectibn 11.01 ofthe General Conditions: For the Borrower: To the attention of: For the Bank: MaiI Address: Ministry of Finance and Economrc Development Treasury Building George Street Freetown SIERRA LEONE Tel (232)22.22.58.26 Fax: (232)22.22.84.72 .Minister of Finance and Economi-c Development Headquarters' Address: A&ican Development Bank 01B.P.
1387 Abidjan 01 Cable Address: AFDEV ABIDJAN T eI : (225) 20.20.44.44 D0.20.40.4't Fax: (225) 20.20.49.82 r E EI I I l And Temporairilyat: TemporaryRelocation'Agency' Afrioan Development Bank 13, Avenue,dr: Ghana .

3.P.
3.P.

323 - 1002 Tunis Belvedere TI.INISIA Tel: Q16)71-102251 Fax:(216) 71-103731 To the attention of: Director ONEC I I I I I I I i: -15- IN WTII\IESS WHEREOF the Borrower and the Bark, each acting through its authorized representative, have signed this Agreernent in two (2) originals, both in English, on the date first above written.
FOR TIfE REPUBLIC OF SIERRA LEONE 1 b i I Nt AIAMARRAH MIMSTER OF FINANCE AND ECONOMIC DEVELOPMENT FORTTM AFRJCA}I DEVELOPMENT BANK (Acting on behalf of the Nigeria Trust Fund) YER BAIDEH RESiDENT REPRESENTATTVE SIERRA LEONE COTINTRY OFFICE ATTESTEDBY: {Mis ' ,,,.

i ., : .

:\ACE PRESIDENTAND SECRETARY GENERAL CECILIA AKINTOMIDE I .

:- pisear*n- (8), pue :suorssura aprxoip uoqrec UI uopcnpar (y) j ii(11cr4ea1e ol sgocc?
s(uertro^\ ur eseercur (e) iuorleerd luerudoldrue -z(p) :sarrnl o8e1rb m asee.riop ('c) iqsoc uollcnpord.

(1rcr-4ca1a a8ere,re .
; etgir esearap (q) :epea ,(8reue 3o aumlo^ eqt ur eseercrr (e) :epnlcur seuoclno pelce&e er[ 'sesseusnq prrB se4uec q]peq 'sJooqcs ol :emod crqcole i(1ddns pue au5 :emod aql tuola pa1erol ser$lmurruoc ,S$oop 'q,s5coe ,t5cr4cqe :: ea<irdurt o1 - ilCpetlxe st pefor4 aryuotte.r-qns eW.. ul 1eryeui ro,nrod ollcale cturzufp e qsllqelse dleq pue serlrmoc tqfdlcpled eW uee^rloq epe4 f8reue elqerrelsns eglilbeJ o1 sr lceforg eg1 go a,ulcefqo ary lffi-rrra-liifl- 1c-fl6IJ .l .EUII uolsslrusuu4 OS-13 er11 Jo ecrruuetm?tu pue uoquedo toglcn.gsuoc aq1 3o ged ocrrBug ol JdS erp ol spaacord uuol erlue eql 1ual -yo tg euoe'I ?xals Jo c.llqlde1 eql 'uglllgr SI-8ZIvn 01 lrmorue 1pm 'secmoser pund lmrl BIE8IN pue ,Qrlceg eplg slter1 'pung lueurdolsaeq upcl{:ra eql tuo{ Sugcuzug grlq.rA Jo 'uoll1rut IS'I€ sr lsoc ptdt.pelzurpa s.1calor6 erLL 'suoqqs realod cr4celeorpdq go &111qgseeg puz Euruoeld aqt uo serprus pue 'sercuaEy Suqncexg ,,'- sScolor6 erp rql tqp1nq ,Qgscdec 'aur1 reardd eq] Euole pa1un11s seqllsJol Jo uollscgr4cole epnleuJ III,!1 prrs ?3urnc pu?
euoa'I pllers .

?Foq.rl 6o4o^Irp e1o3 8uogr1 {rotuou uorlceuuocrolrr steqorr q8rq e Jo lrogcn4suoJ ar$ ello^w gr,ra lcelor6 aq1 :@155!6{[ €vn NOITdIUf,SflO ISUfOUd IXflNNV -9r- : : I E i I I , i I l I,l 1 D Ij -1 l-i I e .I .

{ .l -i I .t .t -'1,=, .rl l I !

i -( -17 - availability and reliability of telecommunications in the participating couotries.
Proiect Components: The Project components include: (i) Infrastnrctue; (ii) Rural electri-fication, and (iii) Project studies and management, as further set out in the table below: * Constructior of a 1,357 kn-long 225-kV prower line; a 54 kmJong 66-kV power [iue; eleven 22563-kV transformer stations and strengtheninS of a 225/33-kY tansformer statiou; *CoDstructiotr of a control centre in Guinea and slrcqtheDing of a contsol centre Cote d'lvoire; * Static VAR compensators (SVC) in CI; , Frequency regulation equipmenr (Sbtic VAR compensator - SVC) * Services (implementatioo study, audit, contsol and works supervision); .
Comtruction of rctworks grd sub-statioDs for l l5.communities; r Op€rating costs: Executing agencies of the rural elecuifi cgtion compone[t. I Audiq .

Op€rating costs of&e SPC and WAPP; I ConEol and supervision of the high voltage constsuctioE lYorh; I Capacity building (WAPP + counties); tlmpleinentation and monitoring of the ESMP snd RAP; ivarious shldies (feasibility of dams in C6te d'lvoire and Sierra Leone, study on the Linsa!

Fomi pnwer line, study on Liberia's Master Plan); *Compensalions.
233.51 86.32 36.97 4r.49 32.94 79.39 56.51 8.89 15.73 B 1.51 12E.15 3E.66 € E t I I E I E :€ -i; .seleJ IIcLqreIo le.4it ol pu?

sar.u4 Smppegs_p€ol pacnpal 'em1crl4sB.

{lu cruouose-orJos ol ssocc?

pe^oJdrm .sar}r^uc?

sseusnq pespeJcur .sanrunuoddo lueufoldue ,t\eu Eo+ lgeueq IIL\4.

sdorlqndod eseq; 'uorleFdod sIIl Jo %0l.

puE %IS euqrlsuoo oq.n 'sqlnod pup ueuor\ JplncruEd ur 6quslrgpr.Itll Ear?

pelord eqt epnlsur IIr,r\ lcalord erfl Jo sau?rrgaueq eqf .

:sE-@au-E ' -8I- i !

I I E E I E I I I E El!


i iI I -19- A}IIYEX II ALLOCATION OF THN LOAN This Armex indicates the categories of expenditure to be financed out of the resources of the Loan and the allocation of the resources to each category financed therein.

Catego ries of Expenditure A million No Category 1 Works Total Local Currency Costs Foreign Currency Costs Total 1.00 1.00 s.67 5.67 6.67 6.67 -_-\\ ../' Ii E a E !t I E I E EI E I !
I E {genuql 000'00r :> ,{lpnuuy spE4uo) (Q aa1 6ttg slzE4UOz @) ow lstlg slcp4u@:llY spD4u@ llv s,r.ali\er yo zbuonborg , ooo'oE:> uoqllw 9'[.l'oPq 000'002,ft?Pq uollllw .
s' I a^oqD (vn ur) ,Aa!AelI lsod roJ sploqsbrql ' 000'002 a^oqD (vn ur) ,r.al^eu I .ro.tr4.ro; sploqse.rful , (sTom) sJolc?4uoc uro{l Eqddoqg (spoo9) uslddng' uo{ tqddoqg (stltoa) g311y (spoo8) g31t1 (s4.tou) 927 (spoo8) 931 9 I n c Z I ..pqqlani luetuirnJord 'oN I II T Ei I I I I t E :sryo/U pue spoogJo luaunmoord eql-rdj l oyrer ror,rd s.{ueg ol lcalqns suorsrcep NgruemroJd :gl@@@@lQiQi h S(rIOHSf,UHT &\f,I f,U trI Xf,NNV - 02' I !

t.. .E, i ?
t.. .E, i ?

E -27- Thresholds r rior revian for the Use of Consultants: I I I I I !

No.
No.

Selection Method Thresholds for Prior Review (in UA) Thresholds for Post Review (in UA) 1 2 J 4 5 Competitive procedure (firms) Above 200,000 Above 50,000 Irrespective of the amount Competitive procedure (individuals) Single source (frrns/individuals) Competitive procedure (firms) Competitive procedure (individuals) Below 200,000 Below 55,000 Frequency of reYtews A11 contracts All contracts All contracts Ffust contract Fkst contract NiA0j.l,-u':tlli l;i ir IUYI[ll INil/ici t 0l UYd