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Contribution Agreement between the Government of Canada and the Asian Development Bank Covering the Use of Canadian Special Funds Resources [1968] CATSer 12 (23 December 1968)

E101356 - CTS 1968 No. 16

CONTRIBUTION AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE ASIAN DEVELOPMENT BANK COVERING THE USE OF CANADIAN SPECIAL FUNDS RESOURCES

Whereas the Asian Development Bank (hereinafter called the Bank) is empowered by its Articles of Agreement to accept the administration of Special Funds which are designed to serve the purpose and come within the functions of the Bank, and pursuant to the Special Funds Rules and Regulations adopted by the Bank on 17 September 1968 (hereinafter called the Regulations), the Bank has determined that it is prepared to administer Special Funds resources to be called the "Consolidated Special Funds of the Asian Development Bank" (hereinafter called Consolidated Special Funds); and

Whereas the Government of Canada (hereinafter called the Contributor) has indicated its desire to assist the Bank in furthering its purpose by contribut­ing certain resources, in the amount and on the terms hereinafter set forth, to be used in the special operations of the Bank for the provision of financing for purposes which, in the opinion of the Bank, are of high developmental priority in the light of the needs of the area or areas concerned and on terms which are more flexible and bear less heavily on recipients' balance of payments than those established by the Bank for its ordinary operations; and

Whereas the offer of the Contributor to provide additional resources has been accepted by the Bank,

Now therefore the parties hereto hereby agree as follows:

ARTICLE I

Application of Regulations

Section 1.01

Except as otherwise provided herein, the Regulations shall apply to the Contribution made pursuant to this Agreement and accrued re­sources derived therefrom with the same force and effect as if they were fully set forth herein.

ARTICLE II

Contribution to Consolidated Special Funds

Section 2.01

The Contributor agrees, subject to the appropriation of funds by the Parliament of Canada, to contribute free of interest to the Consolidated Special Funds of the Bank Canadian dollars (hereinafter called the Contribu­tion) equivalent as of the date of this Agreement to Twenty-five million United States dollars (US$25,000,000). This Contribution is to be allocated to the Multi-Purpose Special Fund provided for in Section 2.01 (a) of the Regulations.

Section 2.02(a)

Subject to the provisions of Section 2.01 of this Agreement, the Contributor shall make the Contribution available by equal instalments in each of the five Canadian fiscal years beginning 1 April 1968, such that the cumulative amounts of such instalments shall not exceed the limits set forth below:

Prior to 1 April 1969, the Canadian dollar equivalent of US $ 5,000,000
Prior to 1 April 1970, the Canadian dollar equivalent of US $10,000,000
Prior to 1 April 1971, the Canadian dollar equivalent of US $15,000,000
Prior to 1 April 1972, the Canadian dollar equivalent of US $20,000,000
and, Thereafter, the Canadian dollar equivalent of US $25,000,000

Section 2.02 (b)

The Bank shall not enter into any binding commitment for the use of any instalment of the Contribution until such time as such instalment becomes available for drawing down in accordance with Section 2.02 (a) of this Agreement.

Section 2.03 (a)

Subject to the appropriation of funds by Parliament and within the limits set out in Section 2.02 of this Agreement, the Contributor shall make payment to the Bank of such amounts as the Bank shall estimate to be required to meet (i) the cost of goods eligible for financing from the Contribu­tion or (ii) administrative expenses arising pursuant to Section 7.01 of the Regulations Such estimate shall be submitted by the Bank quarterly in each year, and shall be in accordance with such procedures as shall be agreed between the Bank and the Contributor.

Section 2.03 (b)

For purposes of this Section, "goods" shall mean equip­ment services and supplies with a Canadian content as defined from time to time by the Contributor.

Section 2.03 (c)

For purposes of procurement of such goods, competitive bidding shall be held among Canadian suppliers, in accordance with procedures agreed to between the Contributor and the Bank, except where it is agreed that such bidding would not be appropriate because of the smallness of the amount involved, uniqueness of the goods, or other such special reasons.

Section 2.04

The Bank may carry out special operations financed from the Contribution, and from repayments and accruals derived therefrom, by any of the methods referred to in Section 4.02 of the Regulations, provided: (a) notwithstanding Section 4.02(b) of the Regulations, financing on a non-reimbursable basis may only be made from accrued resources derived from the Contribution; and (b) notwithstanding Section 4.02(c) of the Regulations, the Bank shall not, unless otherwise agreed between the Bank and the Contributor, employ the Contribution or resources derived from the Contribution to make equity investments or to guarantee loans.

Section 2.05

In the case of repayments and accruals received by the Bank and derived from this Contribution the subsequent use of such funds shall continue to be governed by Section 2.04 of this Agreement and, as contemplated in Sections 5.02 and 5.03 of the Regulations, the provisions of Sub-sections (b) and (c) of Section 2.03 of this Agreement respecting procurement from Canadian sources shall not apply.

Section 2.06

The Bank shall carry out special operations financed from the Contribution, or from repayments or accruals derived therefrom, in accordance with the principles enumerated in Section 4.03 of the Regulations, provided that when considering an application for financing the Bank shall take into account among the various pertinent factors the general economic position of the recipient country, including its balance of payments and capacity to service additional long term external debt obligations, in order to determine the nature of the terms and conditions of concessional financing to apply in a given case or whether financing might more appropriately be provided by a loan of the type made by the Bank in its ordinary operations.

Section 2.07

Pursuant to Section 6.02(b) of the Regulations, the Bank shall maintain an account of all receipts and disbursements arising out of the business transacted under this Agreement as long as the Agreement shall remain in force. The Bank shall furnish the Contributor with a detailed state­ment of the account on a quarterly basis regarding the use of the Contribution, the status of each project or program financed therefrom, and estimates of an­ticipated disbursements.

ARTICLE III

Information and Consultation

Section 3.01

For purposes of consultation and communication between the Bank and the Contributor in respect of matters arising under this Agree­ment the designated agency on behalf of the Contributor shall be the Ca­nadian International Development Agency, through the Director or Alternate Director representing Canada at the Bank unless otherwise agreed between the Contributor and the Bank.

ARTICLE IV

Effective Date; Amendment; Termination; Withdrawal

Section 4.01

This Agreement shall come into force and effect on the date hereof.

Section 4.02

This Agreement may be amended at any time subject to the concurrence of both the Contributor and the bank.

Section 4.03

The Contributor may withdraw all or part of the Contribution and the accrued resources derived therefor in accordance with the provisions of Section 8.03 of the Regulations.

Section 4.04

In the event of termination pursuant to Section 8.01 of the Regulations of the Bank's administration of the Contribution and accrued re­sources derived therefrom, the Contributor and the Bank shall consult with a view to ensuring the orderly disposition of such resources, as provided for in Section 8.02 of the Regulations.

IN WITNESS WHEREOF the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in duplicate in the English and French languages, each language version being equally authentic, and delivered at the principal office of the Bank in Manila on the twenty-third day of December, 1968.

W. K. Wardroper

FOR THE GOVERNMENT OF CANADA

C. S. Krishna Moorthi

FOR THE ASIAN DEVELOPMENT BANK