REPOBLIKAN'I MADAGASIKARA Tanindrazana-Fahafahana Fandrosoana-Law No. 2004-025

authorizing the ratification of the Credit Agreement concluded June 3, 2004 between the Republic of Madagascar and the International Development Association on the financing
the Community Development Project - credit No. 3498 -1 EXPLANATORY MEMORANDUM MAG

Next credit Agreement dated 03 June 2004, the Republic of Madagascar has contracted with the International Development Association (IDA) credit of THIRTY FOUR MILLION TWO HUNDRED THOUSAND (34,200,000) SDRs equivalent to FIFTY MILLION (50,000,000) USD approximately HUNDRED TWENTY FOUR BILLION FOUR HUNDRED TWENTY FIVE MILLION (124425000000) ARIARY.
This appropriation is intended to finance the Community Development Project FID IV (Extra credit).

I- OBJECTIVES The objectives are, through reactions and fast action to bring relief to victims of hurricanes populations, rehabilitating or rebuilding the infrastructure destroyed or damaged. There is first the social and economic infrastructure, as well as the administrative buildings of the areas affected by cyclones.

II PROJECT COMPONENTS The project is administered by the Development Intervention Fund (FID) in agreement with the International Development Association (IDA) and the Government.
It includes four main components: Component 1
'COMMUNITY PROJECTS "Community Development Project finance priority projects included in the Municipal Development Plan through associations of beneficiaries.
Eligible projects include social and economic infrastructure and extend over the whole territory.
Component 2 "DIRECT FUNDING OF COMMONS" Community Development Project Fund transfers directly to municipalities to enable them to carry out projects and priorities of their Municipal Development Plan. This component is a pilot, but the common interests of the six autonomous provinces of Madagascar.
3 Component "CAPACITY": it aims to improve the quality of services partners FID (municipalities, associations of beneficiaries, service organizations) and increase their ability to respond.
4- Component "WELFARE" Community Development Project provides income and livelihoods work against the poorest people who have been victims of natural disasters or other crises and shocks, and improve living conditions and environment for people by funding the completion of community service in high labor intesité.
III- FINANCIAL CONDITIONS LOAN has
) Amount: $ 50 million, or about 124 425 000 000 ARIARY. b) Total duration: 40 years including 10 years grace period. c) Repayment of principal: in semiannual installments payable on May 1 and November 1
each year from 1 November 2014.
The installment payable on May 1, 2044. d) Commitment fee (payable on the principal of the Credit withdrawn)
annual rate of one half of one percent (1/2 of 1%) per annum, payable semi-annually on May 1 and November 1 of each year.
e) Service Commission: the rate of three-quarter of one percent (3/4 of 1%) on the principal of the Credit withdrawn and outstanding, payable semi-annually on May 1 and November 1 of each year. 2

Under Article 82, paragraph VIII 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.

3 REPOBLIKAN'I MADAGASIKARA Tanindrazana-Fahafahana Fandrosoana-Law No. 2004-025

authorizing the ratification of the Credit Agreement concluded June 3, 2004 between the Republic of Madagascar and the International Association of Development on the financing of
Community Development Project - Credit No. 3498 -1 MAG
the national Assembly and the Senate have adopted in their respective session dated 13 July 2004 and 21 July 2004 the Act which reads as follows:

First- Article is authorized ratification of the Credit Agreement concluded June 3, 2004 between the Republic of Madagascar and the International Association of Development on the financing of the Community Development Project in the amount of THIRTY FOUR MILLION TWO HUNDRED THOUSAND (34,200,000) SDRs equivalent to FIFTY MILLION (50,000,000) USD approximately HUNDRED TWENTY FOUR BILLION FOUR HUNDRED TWENTY FIVE MILLION (124425000000) ARIARY.
Article 2 This Act shall be published in the Official Journal of the Republic.
It shall be enforced as State law.
Antananarivo, July 21, 2004
THE PRESIDENT OF THE NATIONAL ASSEMBLY, THE PRESIDENT OF THE SENATE,
Lahiniriko Jean Rajemison Rakotomaharo
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