Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698833537746.pdf (Sierra Leone)
NE DE N o€ YELo I\ITFIFSIV NIGERIA TRUST FUND FONDS SPECIAL DU NIGERIA LOAN.AGREEI{ENT I , BETWEEN TIIE REPT'BLIC OF STERRA LEOITE ,,-: ,, axo .- .

THE ATRICAIY DEYELOPMENT BAIYK (Acting on beha|of the Nigeria Trust Fund) (coT,E D'IVOIRE, LIBERIA, SmRRA LEONE AND GUINEA (CLSG) ELECTRICITY NETWORKS INTERCONNECTION PROJECT) oli L' I('U'Efi '.
_ii il -l l -i LOAI\AGREEMENT BETWEEN THE REPI]BLIC OF SMRRALEONE A}ID THE ATRICAII DEVELOPMENT BANK (Acting on beholf of the Nigeria Trust Fund) (COTE D'IVOIRE, LIBERIA, SIERRA LEONE AI\D GUIITEA (CLSG) ELECTRICITY NETWORIG INTERCONNECTION PROJECT) PROJECT ID No : P-ZI-F00446 LOAN No :2200160001139 - (SOS: 6.67) "Agreement") This LOAN AGREEMENT (hereinafter retbned to as the -L g * day of , 2013 between the REPUBLIC OF SIERRA LEONE, (hereinafter referred to as the "Borrowe/') and the is entered into this f\)Otlt---xreap- A-FzuCAN DEVELOPMENT BANK (hereinafter called the "Bank"), acting on behalf of the MGERIA TRUST FTIND (hereinafter called .the "NTF").
WHEREAS: l. 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.

,".qf tb'tieg4, is to inter a/ia establish the financing, construction, Soperation, kq*r"n*"", ownership and development of the CLSG -1, C r- .1, uif,-\- E I !
I EII E: II I E II I E E a E TII I E Er g I I E ,I E a EI; !a !

H E E T E Et5 t \ 2 lnterconnection Line trongst the C (hereinaft er.tho'?.

roji:ctl); Member StaJes 2.

Bv virtue of the Treat],.

the CLSG Ivlember States haye created a Special-Purpose Company (hereinafter the "SPC"), equally-qrvned by the National Electricity Companies (heleimfter 6ogt&ibr .the "NECs") of the CLSG Member Stares, taving zupranational character, to implement the Project.
The SPC, titled the CLSG Regional fransmission Companl,- rvill tntar alia finance, construct, develop, operate and maintain the CLSG ligh tension eleclricity transmission line and its substations: 3.

By virnre of tbe Treaty, the CLSG Member States and the SFe agree to jointly and sevlallV enter irto an ?rojed Agreement to goveq lpe iryt@eilation of thqfioject; .,Intemational 4.
The Executing Agencies of the Project-ire the West African Power Pool (hereiLrafler the "WAPP) ibr the cryacity building sub- T E I IzI E T f the CJS Line.

5, The National ?alv_er Authority ( h the Executing Agency for the Sierra component ofthe Proj ect; i I I i I I I I I I I I I I I ,, + J 6.
The Bank has, by virtue of the Agreement establishing the NTF dated26 February 1976, between the Federal Republic ofNigeria and the Bank, agreed to administer, on behalf of the Federal Republic of Nigeria 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 Bark to finance from the resources of the NTF, part of the foreigrr currency cost and part of the local currency cost of the Project by providing a Loan to it in the ' amount specified hereunder; 8.

The Borrower has declared its commitment to the execution of the Project; 9.
The Project is technically feasible, economically viable, socially desirablg environmentally sustainable and constitutes a suitable basis for financing under the activities of the Bank; and 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.

RE, the parties hereto hereby agree as follows: :: : ____-1 4 ARTICLE I GEI{ERAL COI\IDITIONS-DEFIITITIONS Secfion 1.01.

General Conditions.
General Conditions.

the parties to this Agreement accept all of theprovisions of the General Conditions applicable to tbe Loqn-.'.'

and Guarantee Agreements of the African Development Bank, as amendEd from time to time, (hereinafter referred to as the "Qengrat Conditions), with the same force and effect as iftheywere n-r.-tt1_ set;- : forthhcrein 'l '.

:: ' ' Section 1.02.

Definitions, Whenever used in this Ag- eemen!

unles5 thg.

context ,and the text othcrwise require and establist!
the several tenns defined in the General.Coqditions shali have the ,respective meanings set forth therein ARTICLE tr THE LOAN , : Section.

2.01 .

Amount.

The Bark agrees to lend to.

the Borrorver, from the resources of the NTF, an amount not exceedigg the equivalent of Six Million SLr Hundred and Seventy Thousand'Units of Account (uA 6,670,000).

EI E Section 2.02.

Purpose.


The Borrower agrees th4t the purpose-olthe - Loan is to finance part of the foreign currency cost and part of the hdal _ ,:i --- crrrency cost of the Proiect described in Annex I otthi#.grpe6s4t-3al'!.

.- .s -5- 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.

CixrencY of Disbursements and Pavments.


(a) All disbursements made by the Bank to the Borrower shall be denominated in Uaited States Dollars; and (b) All amourts due to the Barrk pursuant to this Agreement shall be payable in United States Dollars.

ARTTCLEIII REPAYMENT OF TIil', PRINCIPAL, SERVICE CIIARGE, COMMITMENTCHAR GE AND DATES OF PAIMENT Section 3.01. .
The: Borrower shall repay the principal of the Loan over a period of hryenty years (20 years), afler a seven (7) year grace period commencing from the date of this of the Princ Agreement.

Section 3.02.

Service Chargq.

The Borrower shall pay a service charge (the "Seryice Charge") at the rate of three-quarters of one per cent-(0_:1 5%) per annum on the principal amount of the Loan disbursed -.-ar.rd outste{rng from time to time.

.i\ \ i: t FA j i E I Ei f 6 Section 3.03.

Commitment Charee.
Commitment Charee.

The Borrower shall pay a commitment charge (the "Commitrnent Chmge") at the rate of one half of one per cetlt (0.50%) per amum on the undisbursed portion qf the .Loan, which'shall begl4 to accrue.one hundred and rwenty (120) dayq - ' after the date of signature of this Agreement.

Section 3.04.
Section 3.04.

Dates of Peymenl The principal of the.Lgan shall.-be_';' repaid in equal and cons.lcutive s-emi:annual instalrnents, the first of - ' which shall be payable on the 156 March or 15ft September whichever immediately foUows the expiration of the grace period refened to in Section 3.01 above.

TheService Charge and the Commitment Charge shall be payabte semi-annually on the same dates. '
ARTICLE TV COI\D ONS PRECEDENT TO ENTRYINTO FORCE Section 4.01. ti force of the Loan Agreement shall be subject to Borrower of the provisions of Section 12.01 ofthe GenEral Conditions.- a H !

ARTICLEV C ITIONS PRECEDENT TO DISBURSEN{ENTS AND OTIMR COA{DITIONS Section 5.01. : Conditi to obligations ofthe Bank to make the fust disbursement of the -w- - .
:'* -\- 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 fulfilment ofthe following conditions: a) Provide evidence of sigrring 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 b) The State hosting the SPC Headquarters shall provide the Fund with evidence of: (i) ratification of the Treafy by the CLSG Member States; (ii)'evidence that the share capital for the SPC has been paid in full; and (iii) appoinhent of the finance.

manager and accountant for the SPC, whose skills and qualifications are acceptable to the Fund.

Section 5.02.
Other ons: a) The Borrower shall submit to the Bank, not later than 30 June 2014, evidence of having secured financing from the EIB to -___ _t{ance part of the costs of the infrastructure component of the Prrliect: = I 42... - :- 1.\ I 8 b) Prior to commencernent of works on its territory, the Borrower will provide evidence of (i) acquisition of land and/or compensation of the Project Affected Persons (PAPs) in gach concemed lot; and/or (ii) provide evidence of having an escrowr ' account and deposited cgmpensatlon bfthe PAPs in accordance with,the Environmental and Sooial Plan and the Compensation Payment Schedule; and c) The State hosting the SPC Headquarters shall: (i) submitJotlie: '.'''-',..::.
Bank a copy of the Intemational Project Agreement sipld between the CLSG Member States and the SPC, wh,ose te-rms and conditions are acceptable to the Bank; (ii) a copy .of th Shareholders' Agreement signed by preparation of the SPC organizati Project Implementation Manual and financial manual by the SPC, within six (6) months from the date of first disbursemcn-r. - ARTICLE YI UNIDERTAKINGS Section 6.01 .

The Borrower hereby undertakes to: a) Implement .and report on the .sf .

ths : Environmeutat.


and Social Management -P updated RAP on'a semi-annual basis, no s tii +- rl 9 days at the end of each reporting perio{ in a form acceptable to the Banh and b) Prior to commencement of works, submit an Environmental and Sqcial Man?gement Framework fot the rural electrifcatiorr component of the Project.

ARTICLE Vtr RE GANDMONITO RING l I $ Section 7.01.

The Borrower shall ensure: a) The SPC shall prepare and fumish to the Bark, a quarterly project implementation repor!
within thirty (30) calendar days 9! '

:.

, ,, the end ofeach quader; and b) The SPC shall prepare and tumish to the Bank, a Project Completion Repor!

within six (6) months following project completion.

Section 7.02.

Audit.

The SPC shall submit to the Banh within six (6) monttrs after the end of each financial year, annual audited frnancial statements together with thg auditor's report and management lettqr.
The audit of the annual financial statements shall be conducted by auditors acceptable to the Bank, and in accordance with ./.

--:' audit terms dreference approved by the Bank.

{i .l l il I !

-10- ARTICLE VIII I I DISBT]RSEMENTS AND APPLICATION OF .

AMOUNTSDISBI.JRSED Section 8.01 .

Disbrirsements.

The amount of the Loan .

shall be disbursed by the Banlq subject,to the provisions of this Agreemen!-and- - _: the General Conditions, for the purposes set forth itthis Agreeqeni.

Section 8.02.
Section 8.02.

Deadline for Final Disbursement: The Closing Date shall be 31't December 2018 or such later date as shall be agreed up-on in writing between the Borrower and the Fund _f.o1 the--puqposes:bf ,, .'

Section 6.03 (1)(f) of rhe General Conditions.

Section 8.03.

Application of Disbursements.

Amsunts disbursed-on '.

:- , B account of the Loan shall be applied by the Borrower solely for the purposes for which they were disbused.

ARTICLB Ix PROCUREMENT OF WORIG AI\D SERVICES Section 9.01.
Procurement of Works.
Works necessary for the execation of the Projeit shall be procured in aceordance with- the -Project Appraisal Report, the Bank's Rules and Procedures .fer Procurement of Goodrand-,Wor-l;s, adopted in May ZOO(ar1*rqV in Jirly 2012, as amended from time to time, and asfurther set out.t below: = .- 1 \ I J l LJ 'I!t i -l - 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 ional etitive (lCB) procedures, with pre- I qualification.
Section 9.02.
Procurement of Services, Services necessary for the execution ofthe Project to be financed from the resources ofthe NTF will be procured in accordance with the Project Appraisal Report, the Bank's Rzles and Procedures for the Use of Consultanls adopted in May 2008 and revised n hily 2012, as amended from time to time, 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 Lg4S!-g.SS!
Selection (LCS) method.

Section 9.03. Review Procedures.

The following documents will be submitted for review and approval by the Bank prior to publication: General Procurement Notice, Request for Expressions of Interes!
Specific Procurement Notice, Bidding Documents or Requests for Proposals from Consultants, Requests for Quotations, Evaluatiou rep-<irt=-n suppliers' bids including recommendations relating to the *-'award of coltracts, Evaluation report on the consultants' technical proposals, Pniposals for the award of contracts as well as the minutes i i i I I I t, t. r: -t2- of the negotiations; and a signed and initialled copy of the contract.

The review tlresholds are:attached as Annex UI.

Section 9.04.
Section 9.04.

Prqcurement Plans.

The Borrower-shall submit to.and have approved .b)a the -Bank, a Procurement Plaii.,Ihe, Procurement Plan shall set out, arnong other things: (i) the particular contracts Jor the services required to carry out the Project during an initial period qf at leasl eighteen (18) months; (iD the proposgd methods,:foi:'- .

?rocuremext of eac_h such conhac!

and (iii) the related Bank's review .

-.'procedur,es.
-.'procedur,es.

The Procurement-Plan shall be updated annually or mrcre : frequently if needed, during the implementation ofthe Projegt to,coy'q.

: each succeeding period, in all cases subject to the approyal of the!iink.-,.

.

ARTICLEX NIISCE LLANEOUS PRO VISION S Section 10.01.

Unforeseeabl Event.
Unforeseeabl Event.

Where an : extraordinary or unforeseeable situation has arisen, which, in the - opinion ofboth parties, is [ikely to be prejudicial to the execution ofthe Projecg the Bank may, in order to cover the cost of any specialized one an amgunt not exceedin6i the equivalent of cgnt (t7o),ofthe-I-oan amount or Sixty Six Thousand an{ , Seven Hirndred Units of Account (UA 66,700).

These expen$gs Sg!]
These expen$gs Sg!]

Pg met without the necessity of any advance application byJh,a Borrowfi-_ : i I i -13- but the Bank shall promptly noti& the Bonower of,the precise amount allocated.

Section 10.02.

Authorized Representatives.

The Minister of Finance and Economic Development of the Borrower or such other person as the Minister may desigrate in writing shall be the authorized representative for the pqposes of Section 11.02 of the General Conditions.

Section 10.03.

Date of the Aqreement.


For purposes of this Agreernen!

the date thereof shall be that appearing in the opening sentence of the preamble hereof.

I E ,- rc I E FI E I GI E E E E !

I E EI E -14- Section 10.04.

Addresses.


The following addrcsses are specified for the purposes of Section 11.01 ofthe General Conditions: For the Borrower: To the attention oft For the Bank: -:'' Mail Address: Ministry of Finance and Economic Development Treaqury Building George Street Freetown SIERRA LEONE Tel: (232)22.22.58.26 Fax: (232)22.22.84.72 Minister of Finance and Economip Development Headquarters' Address: African Development Bank 0l B.P.
I387 Abidjan 0l COTE D'IVOIRE Cable Address: AFDEVABIDJAN Tel : (225) 20.20.M.44120.20.40.47 Fax: (225)20.20.49.82 i I i I I I I I !

I i I A,ndTemp_orairilya{; TemporaryReloc4fionAgency .. i .
$fioan Development Bank r BP.323 - 1002 Tunis Belvedere TT]NISIA Tel : (216) 71-10 2251 Fax: (216) 71-10 3731 To the atterltion of: Director ONEC I r t I l -15- IN WTINESS WHERX'OF the Borrower and the Bank, each acting through its authorized representative, have siped this Agreement in two (2) originals, both in Fnglish, on the date first above written.
: FOR TIIE REPUBLIC OF STERRA Lf,ONE tLtt ALA MARRAH -- MIMSTEROF FINANCE AND ECONOMIC DEVELOPMENT FOR TIIE AFRICA}I DE\TLOPMENT BAIIK (Acting on behalf of the Nigeria Trust Fund) YER BALDEH RESIDENT REPRESENTATIVE SIERRA LEONE COUNTRY OFFICE I B-\-{ CECILIA AKINTOMIDE ATTESTED.BY: S '---ji--- .
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erfl Jo sauercgauQq aqJ _ffi@ffi -8r' -19- ANNEX II ALLOCATION OF THR LOAN 1 This Amex indicates the categories of expenditure to be financed out of the resources of the Loan and the allocation of the resources to each iaegory fi nanced therein.
Categories of Expenditure (UA million) No Category 1 Works Total Local Currency Costs Foreign Currency Costs Total 1.00 r.00 5.67 5.67 6.67 6.67 -, !

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