Law No. 2013-023 authorizing the ratification of the Loan Agreement on the financing of the Project of Road Infrastructure Development (PAIR) between the Republic of Madagascar
and the African Development Bank (ADB)
EXPLANATORY MEMORANDUM
Following the request of the Malagasy Government, the African Development Bank (ADB) has granted a loan to finance the Project of Road Infrastructure Development (PAIR), the amount of FORTY MILLION SIX HUNDRED FORTY THOUSAND UNITS OF ACCOUNT (UA 46.14 million), equivalent to SEVENTY MILLION DOLLARS ($ 70,000,000), or about HUNDRED FIFTY TWO BILLION SIX HUNDRED SIXTY MILLION ARIARY (152 660 000 000 MGA).
PURPOSE OF THE PROJECT The Project objective is to contribute to the improvement of road transport infrastructure in Madagascar and promotion of trade between the southwest and the rest of the country. The Project's specific objectives focus on: (i) reducing costs and transport times on Highway 9 and (ii) increasing the volume of economic activities in the project area.
PROJECT COMPONENTS The project includes the four following components:
roadworks and bridges: 1.
Road construction on Highway 9 and acquisition of two mobile pèse-- axles; Construction of the bridge Befandriana - Reconstruction of Bridge Pomay - Control and monitoring of travaux.-
Related Amenities: 2.
Rehabilitation of rural track Tsianisiha-Andoharano - Provision of agricultural equipment to women; - Construction of classrooms and closing CEG Mangily; and- control and supervision connexes.-
Institutional Support and Project Management: 3.
Support for ARM; and- technical and financial audits routière.- security
Improving Governance: 4.
Institutional study on road maintenance; and- Supports Initiative COST.-
FINANCIAL CONDITIONS Loan Amount: UA 46.14 million equivalent to $ 70 million, or about 152 660 000 000 MGA, including:
total repayment duration 40 years after a Bachelor of 10 years, to because of one percent (1%) per year between eleventh and twentieth years of the period, and three percent (3%) per annum thereafter.
Service Commission: the rate of three-quarter of one percent (0.75%) on the amount disbursed and outstanding loan.
Commitment: the rate of one half of one percent (0.50%) per annum on the amount of undisbursed loan commences in 120 days after the signing of the Agreement.
Repayment of principal and payment of the Committee service and commitment charge shall be paid every six months on 15 April and 15 October of each year.
It is recalled that the project is co-financed by the African Development Bank (ADB) and the OPEC Fund for International Development (OFID), which respectively contribute up to 70 million USD and 18 USD 000,000 . The Government of Madagascar will also speak to the tune of 4,630. 000 USD, representing 5% of the Project cost components.
The ADB and OFID will finance 75% and 20% of the Project costs.
TERM LOAN The Project will be closed on 31 December 2018. EXECUTING AGENCY
The Road Authority of Madagascar (ARM) will be the body responsible for the Project.
Under article 137, paragraph II of the Constitution, "the ratification or approval of treaties involving the finances of the State must be authorized by law."
This is the purpose of this Act. Law No. 2013-023
authorizing the ratification of the Loan Agreement on the financing of the Project of Road Infrastructure Development (PAIR) between the Republic of Madagascar
and the African Development Bank (ADB)
the Congress of the Transition and the High Council of the Transition adopted in their respective sessions on 12 December 2013 and 13 December 2013, the law which reads as follows:
Article: East authorized the ratification of the loan agreement on the financing of the Project Development of Road Infrastructure (PAIR), concluded November 18, 2013 between the Republic of Madagascar and the African Development Bank (AfDB) on a loan the amount of FORTY SIX MILLION oNE HUNDRED FORTY THOUSAND UNITS oF ACCOUNT (46,140,000 UC) equivalent to SEVENTY MILLION DOLLARS ($ 70,000,000), or about HUNDRED FIFTY TWO BILLION SIX HUNDRED SIXTY MILLION ARIARY (152 660 000 000 MGA) ,
Article 2: This law shall be published in the Official Journal of the Republic.
It will be enforced as a law of the state.
Antananarivo, December 13, 2013
THE PRESIDENT OF THE BOARD OF THE PRESIDENT OF THE CONGRESS OF THE TRANSITION OF THE TRANSITION
Rasolosoa Dolin RAKOTOARIVELO Mamy
