Papua New Guinea Loan (International Bank) Act 1974

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PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974
PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SECT. 1. Short title.
PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87 of 1974 An Act to approve the Guarantee by Australia of the Discharge of the Obligations of the Government of Papua New Guinea under a Loan Agreement made with the International Bank for Reconstruction and Development, and for purposes connected therewith. BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:- 1. This Act may be cited as the Papua New Guinea Loan (International Bank) Act 1974.* PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SECT. 2. Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.* PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SECT. 3. Definitions.
3. In this Act, unless the contrary intention appears- "Bank" means the International Bank for Reconstruction and Development; "Guarantee Agreement" means the agreement between Australia and the Bank dated 12 June 1974, a copy of which is set out in Part I of Schedule 1, as varied by the document a copy of which is set out in Part II of that Schedule; "Loan Agreement" means the agreement between the Government of Papua New Guinea and the Bank dated 12 June 1974, a copy of which is set out in Part I of Schedule 2, as varied by the documents copies of which are set out in Part II of that Schedule. PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SECT. 4. General conditions.
4. (1) A copy of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, being the General Conditions Applicable to Loan and Guarantee Agreements referred to in the Guarantee Agreement and the Loan Agreement, is set out in the Third Schedule to the Papua New Guinea Loan (International Bank) Act 1970. (2) The General Conditions Applicable to Loan and Guarantee Agreements of the Bank referred to in sub-section (1) are, in their application to the Guarantee Agreement, varied by the document a copy of which is set out in Schedule 3. PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SECT. 5. Approval of Guarantee Agreement.
5. The execution on behalf of Australia of the Guarantee Agreement is approved and the Agreement is declared to have been lawfully executed and delivered on behalf of Australia and constitutes a valid and binding obligation of Australia in accordance with its terms. PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SECT. 6. Appropriation.
6. Any payments by Australia under the Guarantee Agreement are payable out of the Consolidated Revenue Fund, which is appropriated accordingly. PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SECT. 7. Moneys to be paid, and documents to be, free of taxes, &c.
7. Notwithstanding anything in any law of Australia or of a State or Territory, whether passed or made before or after the commencement of this Act- (a) all moneys payable as mentioned in Section 5.01 of the Guarantee Agreement shall be paid without deduction for, and free from, all taxes, as mentioned in that Section; (b) the documents referred to in Section 5.02 of the Guarantee Agreement shall be free from all taxes, as mentioned in that Section; (c) all moneys payable as mentioned in Section 5.03 of the Guarantee Agreement shall be paid free from all restrictions, regulations, controls and moratoria, as mentioned in that Section; (d) all moneys payable as mentioned in Section 6.01 of the Loan Agreement shall be paid without deduction for, and free from, all taxes, as mentioned in that Section; (e) the documents referred to in Section 6.02 of the Loan Agreement shall be free from all taxes, as mentioned in that Section; and (f) all moneys payable as mentioned in Section 6.03 of the Loan Agreement shall be paid free from all restrictions, regulations, controls and moratoria,
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as mentioned in that Section. ----------- PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - THE SCHEDULES
THE SCHEDULES ----------- PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SCHEDULE 1
SCHEDULE 1 Section 3 PART I GUARANTEE AGREEMENT AGREEMENT, dated June 12, 1974, between AUSTRALIA (hereinafter called the Guarantor) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS by the Loan Agreement of even date herewith between the Bank and The Government of Papua New Guinea (hereinafter called the Borrower) the Bank has agreed to make to the Borrower a loan in various currencies equivalent to ten million eight hundred thousand dollars ($10,800,000), on the terms and conditions set forth in the Loan Agreement, and in the Project Agreement of even date herewith between the Bank and the Papua New Guinea Electricity Commission (hereinafter called ELCOM), but only on condition that the Guarantor agree to guarantee the obligations of the Borrower in respect of such loan as hereinafter provided; and WHEREAS the Guarantor, in consideration of the Bank's entering into the Loan Agreement with the Borrower, has agreed so to guarantee such obligations of the Borrower; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank dated January 31, 1969, with the same force and effect as if they were fully set forth herein, subject, however, to the modifications thereof set forth in Schedule 4 to the Loan Agreement (said General Conditions Applicable to Loan and Guarantee Agreements, as so modified, being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions, in Section 1.02 of the Loan Agreement and in Section 1.01 of the Project Agreement, have the respective meanings therein set forth. ARTICLE II Guarantee Section 2.01. Without limitation or restriction upon any of its other obligations under the Guarantee Agreement, the Guarantor hereby unconditionally guarantees, as primary obligor and not as surety merely, the due and punctual payment of the principal of, and interest and other charges on, the Loan and the premium, if any, on the prepayment of the Loan prior to its maturity, all as set forth in the Loan Agreement. ARTICLE III Other Covenants Section 3.01. (a) It is the mutual intention of the Guarantor and the Bank that no other external debt shall enjoy any priority over the Loan by way of a lien on public assets. (b) To that end the Guarantor (i) represents that at the date of this Agreement no lien exists on any public assets as security for any external debt except as otherwise disclosed in writing by the Guarantor to the Bank, and (ii) undertakes that, except as the Bank shall otherwise agree, if any such lien shall be created, it will ipso facto equally and ratably, and at no cost to the Bank secure the payment of the principal of, and interest and other charges on, the Loan and in the creation of any such lien express
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provision will be made to that effect. The Guarantor shall promptly inform the Bank of the creation of any such lien and, within the limits of its constitutional powers, the Guarantor will make the foregoing undertaking effective with respect to liens or assets of the States and Territories of the Guarantor and their agencies (including local governing authorities). (c) The foregoing representation and undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; and (ii) any lien created by the Reserve Bank of Australia or the Commonwealth Trading Bank of Australia on any of their assets in the ordinary course of their banking business to secure any indebtedness maturing not more than one year after its date. Section 3.02. The Guarantor covenants that it will not take any action which would prevent or interfere with the performance by the Borrower of its obligations contained in the Loan Agreement or by ELCOM of its obligations contained in the Project Agreement. Section 3.03. The Guarantor and the Bank agree that only such changes may be made in the Project as shall be mutually acceptable. ARTICLE IV Consultation and Information Section 4.01. The Guarantor and the Bank shall cooperate fully to assure that the purposes of the Loan will be accomplished. To that end the Guarantor and the Bank shall from time to time, at the request of either party: (i) exchange views through their representatives with regard to the performance of their respective obligations under the Guarantee Agreement and other matters relating to the purposes of the Loan; and (ii) furnish to the other all such information as it shall reasonably request with regard to the general status of the Loan. On the part of the Guarantor, such information shall include information with respect to financial and economic conditions in the territories of the Guarantor, including its balance of payments, and the external debt of the Guarantor, of any of its political subdivisions and of any agency of the Guarantor or of any such political subdivision. Section 4.02. (a) The Guarantor shall promptly inform the Bank of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Loan or the maintenance of the service thereof. (b) The Guarantor shall afford all reasonable opportunity for accredited representatives of the Bank to visit any part of the territories of the Guarantor and, insofar as it is within its powers, those of the Borrower, for purposes related to the Loan. ARTICLE V Taxes and Restrictions Section 5.01. The principal of, and interest and other charges on, the Loan shall be paid without deduction for, and free from, any taxes imposed under the laws of the Guarantor or laws in effect in its territories. Section 5.02. The Guarantee Agreement, the Loan Agreement and the Project Agreement shall be free from any taxes that shall be imposed under the laws of the Guarantor or laws in effect in its territories on or in connection with the execution, issue, delivery or registration thereof. Section 5.03. The payment of the principal of, and interest and other charges on, the Loan shall be free from all restrictions, regulations, controls or moratoria of any nature imposed under the laws of the Guarantor or laws in effect in its territories. ARTICLE VI Representative of the Guarantor; Addresses Section 6.01. The Treasurer of the Guarantor is designated as representative of the Guarantor for the purposes of Section 10.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 10.01 of the General Conditions: For the Guarantor: The Secretary
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Department of the Treasury Parkes A.C.T. 2600 Australia Cable address: TREASURY Canberra For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INTBAFRAD Washington, D.C. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names and to be delivered in the District of Columbia, United States of America, as of the day and year first above written. AUSTRALIA By P. A. McLAUGHLIN Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By R. J. GOODMAN Director East Asia and Pacific Department Asia Regional Office PART II VARIATION OF THE GUARANTEE AGREEMENT International Bank for Reconstruction June 12, 1974 and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 999-PNG (Second Power Project) Information Dear Sirs: We refer to Section 4.02 (a) of the Guarantee Agreement (Second Power Project) between Australia and the International Bank for Reconstruction and Development. Australia cannot be expected to have continuous detailed knowledge of all the circumstances affecting the project or the Loan following achievement of independence by Papua New Guinea-foreshadowed for 1 December 1974. Accordingly, after the independence of Papua New Guinea, Australia undertakes to: (1) keep the Bank informed of any condition of which it becomes aware which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Loan or the maintenance of the service thereof; and (2) exercise due diligence in ascertaining whether any such conditions exist. Please confirm your agreement with the foregoing by signing the form of confirmation on the enclosed copy of this letter and returning it to us. Yours faithfully, Confirmed: INTERNATIONAL BANK FOR RECONSTRUCTION AUSTRALIA AND DEVELOPMENT By R. J. GOODMAN by PETER A. McLAUGHLIN Director Authorized Representative East Asia and Pacific Department Asia Regional Office
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----------- PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SCHEDULE 2
SCHEDULE 2 Section 3 PART I LOAN AGREEMENT AGREEMENT, dated June 12, 1974, between THE GOVERNMENT OF PAPUA NEW GUINEA (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS (A) The Borrower has requested the Bank to assist in the financing of the Project described in Schedule 2 to this Agreement by making the Loan as hereinafter provided; (B) The Project will be carried out by the Papua New Guinea Electricity Commission (hereinafter called ELCOM) with the Borrower's assistance and, as part of such assistance, the Borrower will make available to ELCOM the proceeds of the Loan as hereinafter provided; and (C) The Bank is willing to make the Loan available upon the terms and conditions set forth hereinafter and in a project agreement of even date herewith between the Bank and ELCOM and in a guarantee agreement (hereinafter called the Guarantee Agreement) of even date herewith between Australia (hereinafter called the Guarantor) and the Bank; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated January 31, 1969, with the same force and effect as if they were fully set forth herein, subject, however, to the modifications thereof set forth in Schedule 4 to this Agreement (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank, as so modified, being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Australia" means the Commonwealth of Australia; (b) "Project Agreement" means the agreement between the Bank and ELCOM of even date herewith, as the same may be amended from time to time, and such term includes all schedules to the Project Agreement; (c) "Subsidiary Loan Agreement" means the agreement to be entered into between the Borrower and ELCOM pursuant to Section 3.01 (b) of this Agreement, as the same may be amended from time to time; (d) "$A" means dollars in the currency of the Guarantor; (e) "Prior Loan Agreement" means the Loan Agreement (Loan No. 737-PNG) dated May 26, 1971, between the Administration of the Territory of Papua and New Guinea and the Bank; and (f) "Training Center" means the training center established and operated by ELCOM, as the same may be reorganized from time to time and includes any successor thereto. ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to ten million eight hundred thousand dollars ($10,800,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to this Agreement, as such
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Schedule shall be amended from time to time, for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed under the Loan Agreement; provided, however, that, except as the Bank shall otherwise agree, no withdrawal shall be made on account of expenditures in the territories of any country which is not a member of the Bank (other than Switzerland) or for goods produced in, or services supplied from, such territories. Section 2.03. Except as the Bank shall otherwise agree, the goods and services required for the Project and to be financed out of the proceeds of the Loan shall be procured pursuant to the provisions set forth or referred to in Section 2.02 of the Project Agreement. Section 2.04. The Closing Date shall be December 31, 1979 or such other date as shall be agreed between the Borrower and the Bank. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of seven and one-fourth of one per cent (71/4%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semi-annually on January 15 and July 15 in each year.

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