108/1980 Coll.



DECREE



Minister of Foreign Affairs



of 27 June. June 1980



on the credit agreement between the Government of the Czechoslovak Socialist Republic and the

The federal military Government of the Federal Republic of Nigeria



On 11 July. June 1979 in Prague signed a credit agreement between the Government

The Czechoslovak Socialist Republic and the federal military Government

The Nigerian Federal Republic. Agreement entered into force on

pursuant to article XI of the day 1. February 1980.



English translation of the text of the agreement shall be published at the same time.



Minister:



Ing. Chňoupek v.r.



THE CREDIT AGREEMENT



between the Government of the Czechoslovak Socialist Republic and the Federal

the Nigerian military Government of the Federal Republic of



The Government of the Czechoslovak Socialist Republic and the federal military Government

The Nigerian Federal Republic,



Bearing in mind the friendly relations existing between the two countries,



Desiring to intensify and strengthen these relationships,



devising strengthen more fruitful cooperation in the field of economic

development,



have agreed as follows:



Article. (I)



The Government of the Czechoslovak Socialist Republic will be on assisting

the developing efforts of the Nigerian Federal military Government Federal

States that will provide the loan to the amount of 165 million DM (German

Marek) for projects listed in annex I to this agreement, and subject to the conditions

referred to in this agreement. Credit provided under this agreement will be

increased up to 190 million Deutschmarks (DM 190 million) on the implementation of

other projects that may be agreed by the contracting parties outside the

projects listed in annex I.



Article II



1. A loan referred to in article 1 may be used to finance up to 85%

European herring port or FOB FOB Hamburg industrial values

equipment and machinery of Czechoslovak origin (hereinafter referred to as "investment

units "); -an adequate number of spare parts required for the operation of the

the investment unit in period of trial operation.



2. the Loan can also be used to cover the costs in the Czechoslovak currency.

for services provided by the supplier in connection with the Czechoslovak

supplies of investment units, the training of Nigerian experts and technicians

in Czechoslovakia under individual contracts for the supply of goods, concluded

between supplier and purchaser in accordance with article III of the agreement.



3. the Loan can also be used for payments under contracts,

relating to the Czechoslovak patents and technological know-how in the

concerning the supply of investment units in the framework of this agreement.



Article. (III)



1. the supply of goods and services referred to in article II shall be made on a

the basis of the contracts agreed between the Czechoslovak legal persons

eligible under the Czechoslovak laws make foreign trade in

The Czechoslovak Socialist Republic (hereinafter referred to as "suppliers" and

The federal military Government of the Federal Republic of Nigeria,

regional Governments of Nigerian Federal Republic or any

another person, a legacy of the federal military Government to enter into contracts

on the basis of this agreement (hereinafter referred to as the "purchaser").



2. the Contracts referred to in paragraph 1 shall have the following terms of payment:



and) 5% (five per cent) of the total value of each individual contract

nákupcem will be paid in cash in advance to the vendor within 60 days

(60 days) after the signing of the contract;



(b)) 10% (ten percent) of the total value of each account from each

an individual contract will be paid by the vendor against the specified nákupcem

documents on the basis of an irrevocable letter of credit opened Central

the Bank of the Federal Republic of Nigeria for československá obchodní

banks, Prague;



c) 85% (osmdesátpět percent) of the total value of each account for each

an individual contract shall be paid over to the Czechoslovak supplier in

the credit granted pursuant to article I of this agreement. The Czechoslovak

Commercial Bank, Prague, is responsible for charging a value automatically, 85%

(osmdesátipěti per cent) referred to in this paragraph credit account set up

in accordance with article VI at the same time with drawing made on the basis of the

submission of the documents specified by the supplier as provided for in paragraph

b) of this article. Československá obchodní banka, Prague, shall inform the

The Central Bank of Nigerian Federal Republic of any such

load account.



3. each Party shall take the necessary measures to facilitate the negotiation and performance of the

contracts in the framework of this agreement.



4. Credit provided under this agreement, may be used only for the

contracts concluded before 31.12.1981. Prices for individual contracts will be

expressed in Deutschmarks (DM).



Article IV



As the date of the credit usage will be considered as the day on which the Czechoslovak

Commercial Bank, Prague, the Czechoslovak supplier shall make payment in the

the meaning of article III.



Article. In



1. the loan shall be paid by the Government Used the Nigerian Federal Republic in

over 10 years (10 years).



2. Repayment of the amounts loaded in accordance with article III, paragraph (c))

This agreement will be carried out in regular annual installments, the first

starting from 24 months from the date the Ceskoslovenska obchodni banka, Prague,

to cover the loan account based on the final account,

submitted by the supplier within the framework of the relevant letter of credit referred to in

Article III, paragraph (b))



3. upon termination of the supplies or services within each individual

prepares contract Československá obchodní banka, Prague, payment plan

and this will send the two copies to the Permanent Secretary of the Federal

the Ministry of Finance of the Federal Republic of Nigeria. One copy of the

This instalment plan will be duly signed by the Permanent Secretary of the

the Federal Ministry of Finance of the Federal Republic of Nigeria and

Czechoslovak Trade Bank, returned to Prague.



Čl.VI



Československá obchodní banka, Prague, opens in his books the name of

The Central Bank of the Federal Republic of Nigeria's special-interest

loan account on each individual contract and agrees with the Central

the Bank of the Federal Republic of Nigeria on the details of the

This account.



Article. (VII)



Interest on the loan will be used 3% (three percent) per year. Interest will be

calculated československá obchodní Banka, Prague, and always will be payable

December 31 and 30. June of the current year. This interest will be paid by the Government

The Nigerian Federal Republic within two months from the due date.



Article. (VIII)



The Government of the Federal Republic of Nigeria will have the ability to repay the loan

in advance, fully or partially, at any time, provided that this shall notify the

60 (sixty) days in advance. Any payment before the due date will be

deducted from the repayments that are due for the last time.



Article. (IX)



1. all payments made within the framework of this Agreement shall be carried out without

any deductions relating to taxes, duties, fees or other

expenses, as well as to the exclusion of bank charges and Commission.



2. the Payments referred to in article V, paragraph 2, and valid interest shall be paid in the

convertible Deutschmarks (DM) or in any other convertible

the currency, which may be agreed upon between the Czechoslovak commercial bank,

Prague, and the Central Bank of Nigeria.



Article. X



Any disputes or discrepancies that may arise in connection with

performance of contracts concluded in the framework of this agreement, will be in the first place

be settled by mutual agreement. In the event that agreement is reached, the dispute is not

or irregularity will be solved by arbitration in accordance with the detailed

the provisions of the concluded for this purpose between the vendor and the purchaser in

each individual contract, closed under this agreement. Each

the Contracting Party will ensure that the arbitration decision issued on

the basis of the above arbitration agreements, was fulfilled in both countries in

accordance with the applicable laws and regulations of those countries.



Article. XI



This agreement shall enter into force upon an exchange of notes confirming that it has been

duly approved in accordance with the respective constitutional requirements, and shall remain in

force up to the time when all the obligations deriving from it will

met.



Drawn up and signed in Prague on 11. June 1979 in duplicate

in the English language.



For the Government of the Czechoslovak Socialist Republic, the Minister of foreign

trade:



Andrei Noreezz v.r.



For the federal military Government Nigerian Federal Republic Federal

Commissioner of Finance:



J. j. Oluleye v.r.



XIII.



The list of projects to be implemented in the framework of the Czechoslovak

Government loan

Part of the indoor

The project name of the Czechoslovak

Government loan

------------------------------------------------------------------

DM

1. Metallurgical and machinery manufacturing plant

machine-40 miles. DM



2. The metallurgical and mechanical plant

forming machine 85 miles. DM



3. Plant for production of tools & automotive

spare parts 40 miles. DM



------------------

165 million. DM



4. Other projects (that will be subsequently

intended) 25 miles. DM

------------------

190 miles. DM