Edition 20112011 Edition

ACCORD PORTANTCREATION DU

Fonds Africain de Développement

AGREEMENTESTABLISHING THEAfrican Development

Fund

FA

DA

DF

AGREEMENT ESTABLISHINGThe African Development Fund

2011 Edition

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AGREEMENT ESTABLISHINGTHE AFRICAN DEVELOPMENT FUND

Signed on the twenty-ninth day of November, 1972, in Abidjan, Côte d’Ivoire, by the African Development Bank and 15 States;

Amended:

1. On thefirstdayofJanuarynineteenninety four, following theentryintoforceofResolutionF/BG/92/10adoptedbytheBoardofGovernorsbypostalballotonthesixteenthdayofNovembernineteenninetytwo.

2. OnthefourthdayofJulytwothousandandthree,followingtheentry into force of Resolution F/BG/2002/04 adopted by theBoard ofGovernors inAddisAbaba, Ethiopia, on the twenty-eighthdayofMaytwothousandandtwo.

3. On the seventeenth day of March two thousand and nine,following the entry into force of Resolution F/BG/2008/07adoptedbytheBoardofGovernorsinMaputo,MozambiqueonthefourteenthdayofMaytwothousandandeight.

NOTA BENE:

ReferencesinthisAgreementtoaparticulargendershallbeapplicabletotheothergender.

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TABLE OF CONTENTS

CHAPTER I DEFINITIONS 1

Article 1. Definitions 1

CHAPTER II PURPOSE AND PARTICIPATION 2

Article 2. Purpose 2Article 3. Participation 2

CHAPTER III RESOURCES 3

Article 4. Resources 3Article 5. SubscriptionsbytheBank 3Article 6. InitialSubscriptionsofStateParticipants 3Article 7. AdditionalSubscriptionsbyStateParticipants. 4Article 8. OtherResources 5Article 9. PaymentofSubscriptions 6Article 10.LimitationonLiability 6

CHAPTER IV CURRENCIES 6

Article 11.UseofCurrencies 6Article 12.ValuationofCurrencies 7Article 13.MaintenanceofValueofCurrencyHoldings 7

CHAPTER V OPERATIONS 8

Article 14.UseofResources 8Article 15.ConditionsofFinancing 8Article 16.FormandTermsofFinancing 10Article 17.ReviewandEvaluation 11Article 18.Co-operationwithOtherInternational Organizations,OtherInstitutionsandStates 11Article 19.TechnicalAssistance 11Article 20.MiscellaneousOperations 12Article 21.PoliticalActivityProhibited 12

CHAPTER VI ORGANIZATION AND MANAGEMENT 12

Article 22.OrganizationoftheFund 12Article 23.BoardofGovernors:Powers 12Article 24.BoardofGovernors:Composition 13Article 25.BoardofGovernors:Procedure 14

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Article 26.BoardofDirectors:Functions 14Article 27.BoardofDirectors:Composition 15Article 28.BoardofDirectors:Procedure 17Article 29.Voting 17Article 30.ThePresident 18Article 31.RelationshiptotheBank 19Article 32.OfficeoftheFund 19Article 33.Depositories 19Article 34.ChannelofCommunication 19Article 35.PublicationofReportsandProvisionofInformation 19Article 36.AllocationofNetIncome 20

CHAPTER VII WITHDRAWAL; SUSPENSION OF PARTICIPATION; 20 TERMINATION OF OPERATIONS 20

Article 37.WithdrawalbyParticipants 20Article 38.SuspensionofParticipation 20Article 39.RightsandDutiesofStates CeasingtobeParticipants 20Article 40.TerminationofOperations andSettlementofObligations 23

CHAPTER VIII STATUS; IMMUNITIES; EXEMPTIONS AND PRIVILEGES 24

Article 41.PurposeofChapter 24Article 42.Status 24Article 43.LegalProcess 24Article 44.ImmunityofAssets 25Article 45.ImmunityofArchives 25Article 46.FreedomofAssetsfromRestriction 25Article 47.PrivilegeforCommunications 25Article 48.ImmunitiesandPrivileges ofOfficialsandPersonnel 25Article 49.ExemptionfromTaxation 26Article 50.WaiverbytheFund 26

CHAPTER IX AMENDMENTS 27

Article 51 27

CHAPTER X INTERPRETATION AND ARBITRATION 28

Article 52.Interpretation 28Article 53.Arbitration 28

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CHAPTER XI FINAL PROVISIONS 29

Article 54.Signature 29Article 55.Ratification,AcceptanceorApproval 29Article 56.EntryintoForce 29Article 57.Participation 29Article 58.Reservations 30Article 59.Notification 30Article 60.InauguralMeeting 31

SCHEDULE A ORIGINAL PARTICIPANTS AND INITIAL SUBSCRIPTIONS 33

SCHEDULE B DESIGNATION AND SELECTION OF DIRECTORS 34

VIII

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AGREEMENT ESTABLISHINGTHE AFRICAN DEVELOPMENT FUND

TheStatespartiestothisAgreementandtheAfricanDevelopmentBankhaveagreedtoestablishherebytheAfricanDevelopmentFundwhichshallbegovernedbythefollowingprovisions:

CHAPTER IDEFINITIONS

Article 1. Definitions

1. The following terms wherever used in this Agreement shallhavethefollowingmeanings,unlessthecontextshallotherwisespecifyorrequire:

“Fund”shallmeantheAfricanDevelopmentFundestablishedbythisAgreement.

“Bank”shallmeantheAfricanDevelopmentBank.

“member”shallmeanamemberoftheBank.

“participant” shall mean the Bank and any State which shallbecomeapartytothisAgreement.

“Stateparticipant”shallmeanaparticipantotherthantheBank.

“original participant” shall mean the Bank and each Stateparticipantwhichbecomesaparticipantpursuant toArticle57(1).

“subscription” shallmean amounts subscribed by participantspursuanttoArticles5,6or7.

“unitofaccount”shallmeantheunitofaccountforthetimebeinginusebytheAfricanDevelopmentBank.

“freely convertible currency” shall mean currency of aparticipantwhich theFunddetermines, after consultationwiththeInternationalMonetaryFund,isadequatelyconvertibleintoothercurrenciesforthepurposeoftheFund’soperations.

“President”, “Board of Governors” and “Board of Directors”shallmeanrespectivelythePresident,BoardofGovernorsand

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BoardofDirectorsoftheFundandinthecaseofthegovernorsand directors shall include alternate governors and alternatedirectorswhenactingasgovernorsanddirectorsrespectively.

“regional” shallmean located in the continent ofAfrica or theAfricanislands.

2. ReferencetoChapters,Articles,paragraphsandSchedulesshallmeantheChapters,Articlesandparagraphsof,orSchedulesto,thisAgreement.

3. The headings of the Chapters and Articles are insertedfor convenience of reference only and are not part of thisAgreement.

CHAPTER IIPURPOSE AND PARTICIPATION

Article 2. Purpose

The purpose of the Fund shall be to assist the Bank in makingan increasingly effective contribution to the economic and socialdevelopment of the Bank’s members and to the promotion of co-operation (including regional and sub-regional co-operation) andincreased international trade, particularly among such members. Itshallprovidefinanceonconcessionaltermsforpurposeswhichareofprimaryimportanceforandservesuchdevelopment.

Article 3. Participation

1. TheparticipantsintheFundshallbetheBankandthoseStateswhichshallhavebecomepartiestothisAgreementinaccordancewithitsterms.

2. The original State participants shall be those States listed inScheduleAwhichshallhavebecomepartiestothisAgreementpursuanttoArticle57(1).

3. A State which is not an original participant may become aparticipantandapartytothisAgreementuponsuchterms,notinconsistent with thisAgreement, as the Board of Governorsshall determine by a unanimous resolution adopted by theaffirmative vote of the total voting power of the participants.

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Such participation shall be open only to those States whichare members of the United Nations or any of its specializedagenciesorarepartiestotheStatuteoftheInternationalCourtofJustice.

4. AStatemayauthorizeanentityoragencyactingonitsbehalftosignthisAgreementandtorepresentitinallmattersrelatingtothisAgreementwiththeexceptionofthemattersreferredtoinArticle55.

CHAPTER IIIRESOURCES

Article 4. Resources

TheresourcesoftheFundshallconsistof:(i) subscriptionsbytheBank;

(ii) subscriptionsbyStateparticipants;

(iii) otherresourcesreceivedbytheFund;and

(iv) fundsderivedfromoperationsorotherwiseaccruingtotheFund.

Article 5. Subscriptions by the Bank

TheBankshallpaytotheFundasitsinitialsubscriptiontheamount,expressedinunitsofaccount,setforthoppositeitsnameinScheduleA,utilizingforthatpurposethefundsstandingtothecreditofthe“AfricanDevelopmentFund”oftheBank.PaymentshallbemadeonthesametermsandconditionsasarespecifiedinArticle6(2)forthepaymentofthe initialsubscriptionsofStateparticipants.TheBankwill thereaftersubscribesuchotheramountsastheBoardofGovernorsoftheBankmaydetermine,onsuchtermsandconditionsasshallbeagreedwiththeFund.

Article 6. Initial Subscriptions of State Participants

1. Upon becoming a participant each State participant shallsubscribefundsintheamountassignedtoit.Suchsubscriptionsarehereinafterreferredtoasinitialsubscriptions.

2. TheinitialsubscriptionassignedtoeachoriginalStateparticipant

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shallbeintheamountsetforthoppositeitsnameinScheduleA,andshallbeexpressedinunitsofaccountandpayableinfreelyconvertible currency. Payment shall be made in three equalannual instalments as follows: the first such instalment shallbepaidwithinthirtydaysaftertheFundshallbeginoperationspursuanttoArticle60oronthedateonwhichtheoriginalStateparticipant becomes a party to thisAgreement, whichever islater;thesecondinstalmentwithinoneyearthereafterandthethird instalmentwithin one year after the payment or the duedateof thesecond instalment,whichever isearlier.TheFundmayrequestearlierpaymentofeitherorbothofthesecondandthirdinstalmentsiftheoperationsoftheFundshallrequireit,butsuchearlierpaymentshallbeentirelyvoluntaryon thepartofeachparticipant.

3. TheinitialsubscriptionsofStateparticipantsotherthanoriginalparticipants shall also be expressed in units of account andpayableinfreelyconvertiblecurrency.TheamountandtermsofpaymentofsuchsubscriptionsshallbedeterminedbytheFundpursuanttoArticle3(3).

4. ExceptastheFundmayotherwiseagree,eachStateparticipantshallmaintainthefreeconvertibilityofitscurrencypaidinbyitpursuanttothisArticle.

5. Notwithstanding the foregoing provisions of this Article, aStateparticipantmaydeferforaperiodofnotmorethanthreemonthsthemakingofanypaymentrequiredbythisArticlewhenbudgetaryorothercircumstancesnecessitatesuchdelay.

Article 7. Additional Subscriptions by State Participants.

1. The Fund shall at such time as it deems appropriate in thelightofthescheduleofpaymentsoftheinitialsubscriptionsoforiginalparticipantsandofitsownoperations,andatappropriateintervalsthereafter,reviewtheadequacyofitsresourcesand,ifitdeems itdesirable,mayauthorizeageneral increase in thesubscriptionsofStateparticipantsonsuchtermsandconditionsas the Fund shall determine. Notwithstanding the foregoing,theFundmayauthorizegeneralorindividualincreasesinsuchsubscriptionsatany time,provided thatan individual increaseshallbeconsideredonlyattherequestoftheStateparticipantinvolved.

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2. When any additional individual subscription is authorizedpursuanttoparagraph1,eachStateparticipantshallbegivenanopportunitytosubscribe,undernolessfavourableconditions,reasonably determined by the Fund, than those prescribedunderparagraph1,anamountwhichwillenableittomaintainitsrelativevotingpowerasamongStateparticipants.

3. No State participant shall be obliged to subscribe additionalamounts in the case of general or individual increases insubscriptions.

4. Allauthorizationsfor,anddeterminationsinrespectof,generalincreasesunderparagraph1shallbebyaneighty-fivepercentmajorityofthetotalvotingpoweroftheparticipants.

Article 8. Other Resources

1. SubjecttothefollowingprovisionsofthisArticle,theFundmayenter into arrangements to receive other resources, includinggrantsandloans,frommembers,participants,Stateswhicharenotparticipantsandfromanypublicorprivateentityorentities.

2. Sucharrangementsshallbeontermsandconditionswhichareconsistent with the Fund’s purposes, operations and policiesandwhichwillnotimposeanundueadministrativeorfinancialburdenontheFundortheBank.

3. Such arrangements, other than those for grants for technicalassistance, shall be on terms which will permit the Fund tocomplywiththerequirementsofArticle15(4)and(5).

4. SucharrangementsshallbeapprovedbytheBoardofDirectors,inthecaseofarrangementswithaStatewhichisnotamemberoraparticipantorwithanagencyofsuchState,byaneighty-fivepercentmajorityofthetotalvotingpoweroftheparticipants.

5. The Fund shall not accept any loan (except temporaryaccommodations required for its operations) which is not onconcessional termsandshallnotborrow inanymarketor,asa borrower, guarantor, or otherwise, participate in the issueof securities in anymarket and shall not issue negotiable ortransferable obligations evidencing indebtedness for loansreceivedpursuanttoparagraph1.

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Article 9. Payment of Subscriptions

TheFundshallacceptanypartofaparticipant’ssubscriptionpayablebytheparticipantunderArticles5,6or7orunderArticle13andnotneededby theFund in itsoperations, in the formofnotes, lettersofcreditorsimilarobligationsissuedbytheparticipantorthedepository,ifany,designatedbytheparticipantpursuanttoArticle33.Suchnotesorotherobligationsshallbenon-negotiable,non-interest-bearingandpayableat their par valueondemand to theaccountof theFund inthedesignateddepositoryor,ifthereisnone,astheFundshalldirect.Notwithstandingtheissuanceoracceptanceofanysuchnote,letterofcreditorotherobligation,theobligationoftheparticipantunderArticles5,6and7andArticle13shallcontinuetosubsist. AmountsheldbytheFundinrespectofsubscriptionsofparticipantswhichdonotavailthemselvesoftheprovisionsofthisArticlemaybedepositedorinvestedby theFund toproduce income tohelpdefray itsadministrativeandotherexpenses.TheFundshalldrawdownallsubscriptionsonaprorata basis, as far as practicable over reasonable periods of time, tofinanceexpendituresregardlessoftheforminwhichsuchsubscriptionsaremade.

Article 10. Limitation on Liability

Noparticipantshallbeliable,byreasonofitsparticipation,foractsorobligationsoftheFund.

CHAPTER IVCURRENCIES

Article 11. Use of Currencies

1. Currenciesreceivedinpaymentof,orunderArticle13inrespectof,subscriptionsmadepursuanttoArticle5andArticle6(2)maybeusedandexchangedby theFund foranyof itsoperationsand,subject to theapprovalof theBoardofDirectors, for thetemporaryinvestmentoffundsnotneededinitsoperations.

2. Theuseofcurrenciesreceivedinpaymentof,orunderArticle13inrespectof,subscriptionsunderArticle6(3)andArticle7(1)

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and(2)orasotherresourcesunderArticle8shallbegovernedbythetermsandconditionspursuanttowhichsuchcurrenciesarereceivedor,inthecaseofcurrenciesreceivedunderArticle13,theuseshallbegovernedbythetermsandconditionsonwhichthecurrencieswhosevalueissomaintainedwerereceived.

3. Allothercurrencies receivedby theFundmaybe freelyusedandexchangedbytheFundforanyofitsoperationsand,subjectto the approval of the Board of Directors, for the temporaryinvestmentoffundsnotneededinitsoperations.

4. NorestrictionshallbeimposedwhichiscontrarytotheprovisionsofthisArticle.

Article 12. Valuation of Currencies

1. Whenever it shall be necessary under this Agreement todetermine the value of any currency in terms of anothercurrencyorcurrenciesoroftheunitofaccount,suchvaluationshallbereasonablymadebytheFundafterconsultationwiththeInternationalMonetaryFund.

2. In the case of a currency which does not have a par valueestablishedwith theInternationalMonetaryFund, thevalueofsuchcurrencyintermsoftheunitofaccountshallbedeterminedfromtimetotimebytheFundpursuant toparagraph1of thisArticleandthevaluesodeterminedshallbetreatedasifitweretheparvalueofsuchcurrencyforthepurposeofthisAgreement,including,withoutlimitation,Article13(1)and(2).

Article 13. Maintenance of Value of Currency Holdings

1. WhenevertheparvalueintheInternationalMonetaryFundofthecurrencyofaStateparticipantisreducedintermsoftheunitofaccount,oritsforeignexchangevaluehas,intheopinionoftheFund,depreciatedtoasignificantextentwithinthatparticipant’sterritory,thatparticipantshallpaytotheFundwithinareasonabletimeanamountof itscurrencyrequiredtomaintainthevalue,asof thetimeofsubscription,of theamountofsuchcurrencypaidintotheFundbythatparticipantpursuanttoArticle6andpursuanttotheprovisionsofthepresentparagraph,whetherornotsuchcurrencyisheldintheformofnotes,lettersofcreditorotherobligationsacceptedpursuanttoArticle9,providedthattheforegoingshallapplyonlysolongasandtotheextentthatsuch

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currencyshallnothavebeeninitiallydisbursedorexchangedforanothercurrency.

2. WhenevertheparvalueofthecurrencyofaStateparticipantisincreasedintermsoftheunitofaccountoritsforeignexchangevaluehas,intheopinionoftheFund,appreciatedtoasignificantextentwithinthatparticipant’sterritory,theFundshallreturntothat participant within a reasonable time an amount of suchcurrencyequaltotheincreaseinthevalueoftheamountofsuchcurrencytowhichtheprovisionsofparagraph1areapplicable.

3. TheFundmaywaiveordeclareinoperativetheprovisionsofthisArticlewhenauniformchangeintheparvalueofthecurrenciesofallStateparticipants ismadeby the InternationalMonetaryFund.

CHAPTER VOPERATIONS

Article 14. Use of Resources

1. TheFundshallprovidefinancingforprojectsandprogrammesto furthereconomicandsocial development in the territoryofmembers.TheFundshallprovidesuchfinancingforthebenefitof those members whose economic situation and prospectsrequiresuchfinancingtobeonconcessionalterms.

2. FinancingprovidedbytheFundshallbeforpurposeswhichintheopinionoftheFundareofhighdevelopmentalpriorityinthelightoftheneedsoftheareaorareasconcernedandshall,exceptinspecial circumstances,be forspecificprojectsorgroupsofprojects,particularlythoseformingpartofanationalorregionalorsub-regionalprogramme,includingprovisionoffinancingfornational development banks or other suitable institutions forrelendingforspecificprojectsapprovedbytheFund.

Article 15. Conditions of Financing

1. TheFundshallnotprovidefinancingforanyprojectintheterritoryofamemberifthatmemberobjectsthereto,exceptthatitshallnot be necessary for the Fund to assure itself that individual

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membersdonotobject in thecaseoffinancingprovided toapublicinternational,regionalorsub-regionalorganization.

2. (a) TheFundshallnotprovidefinancingif,initsopinion,suchfinancingisavailablefromothersourcesontermsthattheFundconsidersarereasonablefortherecipient.

(b) In making financing available for entities other thanmembers,theFundshalltakeallnecessarystepstoensurethattheconcessionalbenefitsofitsfinancingaccrueonlytomembersorotherentitieswhichshould,takingintoaccountalltherelevantcircumstances,receivesomeorallofthosebenefits.

3. Beforefinancingisprovided,theapplicantshallhavepresentedanadequate proposal through thePresident of theBankandthePresidentshallhavepresentedtotheBoardofDirectorsoftheFundawrittenreportrecommendingsuchfinancing,onthebasisofastaffstudyofitsmerits.

4 Procurementshallbeonthebasisof internationalcompetitionamong eligible suppliers except in caseswhere the Board ofDirectorsdeterminesthatsuchinternationalcompetitionwouldnotbejustified.

5. TheFundshallmakearrangementstoensurethattheproceedsofanyfinancingareusedonly for thepurposes forwhich thefinancing was provided, with due attention to considerationsofeconomy,efficiencyandcompetitive international tradeandwithoutregardtopoliticalorothernon-economic influencesorconsiderations.

6. Funds to be provided under any financing operations shallbemade available to the recipient only tomeet expenses inconnectionwiththeprojectastheyareactuallyincurred.

7. The Fund shall be guided by sound development bankingprinciplesinitsoperations.

8. TheFundshallnotengageinrefinancingoperations.

9. Inmakingaloan,theFundshallpaydueregardtotheprospectsthattheborrowerandtheguarantor,ifany,willbeabletomeettheirobligations.

10. Inconsideringanapplication forfinancing, theFundshallpaydue regard to the relevantself-helpmeasuresbeing takenbytherecipientand,wheretherecipientisnotamember,byboth

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therecipientandthememberormemberswhoseterritoriestheprojectorprogrammeisintendedtoserve.

11. TheFund shall adopt suchmeasures as shall be required toensuretheeffectiveapplicationofthisArticle.

Article 16. Form and Terms of Financing

1. FinancingbytheFundfromresourcesprovidedunderArticles5,6and7,andfromrepaymentsof,andincomearisingfrom,suchfinancing,shalltaketheformofloans.TheFundmayprovideother financing, including grants, out of resources receivedpursuanttoarrangementsunderArticle8expresslyauthorizingsuchfinancing.

2. (a) Subject to the provisions of the foregoing paragraph,financingbytheFundshallbeonsuchconcessionaltermsasmaybeappropriate.

(b) Wheretheborrowerisamember,oraninter-governmentalbody to which one or more members belong, the Fundshall, inestablishingthetermsoffinancing,takeaccountprimarilyoftheeconomiccircumstancesandprospectsofthemember ormembers for whose benefit the financingis being provided and, in addition, of the nature andrequirementsoftheprojectorprogrammeconcerned.

3. The Fundmay provide financing for: (a) anymember or anygeographicaloradministrativesubdivisionoragencythereof;(b)anyinstitutionorundertakingintheterritoryofanymember;and(c)anyregionalorsub-regionalagencyorinstitutionconcernedwithdevelopmentintheterritoriesofmembers.Allsuchfinancingshall, in theopinionof theFund,be for the furtheranceof thepurposesofthisAgreement.Wheretheborrowerisnotitselfamember,theFundshallrequireasuitablegovernmentalorotherguaranteeorguarantees.

4. TheFundmaymakeforeignexchangeavailabletomeet localexpenditureonaprojectwhenandto theextentwhich, in theopinion of the Fund, this is necessary or appropriate for thepurposesof the loan, having regard to theeconomic positionandprospectsofthememberormembersforwhosebenefitthefinancingisbeingprovided,andtothenatureandrequirementsoftheproject.

5. Loansshallberepayableinthecurrencyorcurrenciesloaned,

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orinsuchotherfreelyconvertiblecurrencyorcurrenciesastheFundshalldetermine.

6. Before any financing is made available to or for the benefitofamemberor foraproject in the territoryofamember, theFund shall be satisfied that suchmember has taken all suchadministrativeandlegislativemeasuresinrespectofitsterritoryasarenecessary to giveeffect to theprovisionsofArticle 11(4)andChapterVIIIasifthememberwereaStateparticipant,anditshallbeatermofsuchfinancingthatsuchadministrativeand legislativemeasures shall bemaintained, and that in theeventofanydisputebetweentheFundandamember,andinthe absence of any other provision therefore, the provisionsofArticle53shallhaveeffect,as if thememberwereaStateparticipantinthecircumstancestowhichthatArticleapplies.

Article 17. Review and Evaluation

A comprehensive and continuing review of completed projects,programmes,andactivitiesfinancedbytheFundshallbecarriedoutto aid the Board of Directors and the President in determining theeffectivenessoftheFundinaccomplishingitspurposes.ThePresident,withtheagreementoftheBoardofDirectors,shallmakearrangementsforcarryingoutthisreviewanditsresultsshallbereportedthroughthePresidenttotheBoardofDirectors.

Article 18. Co-operation with Other International Organizations,Other Institutions and States

Infurtheranceofitspurposes,theFundshallseektoco-operate,andmayenterintoarrangementsforco-operation,withotherinternationalorganizations,regionalandsub-regionalorganizations,otherinstitutionsandStates,providedthatnosucharrangementshallbemadewithaStatewhichisnotamemberoraparticipantorwithanagencyofsuchState unless it shall have been approved by an eighty-five per centmajorityofthetotalvotingpoweroftheparticipants.

Article 19. Technical Assistance

Infurtheranceofitspurposes,theFundmayprovidetechnicalassistance,butsuchassistancewillnormallybeonareimbursablebasisifitisnot

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providedfromspecialtechnicalassistancegrantsorothermeansmadeavailabletotheFundforthepurpose.

Article 20. Miscellaneous Operations

InadditiontothepowersprovidedforelsewhereinthisAgreement,theFundmayundertakesuchotheractivities incidental to itsoperationsasshallbenecessaryordesirableinfurtheranceof itspurposesandconsistentwiththeprovisionsofthisAgreement.

Article 21. Political Activity Prohibited

NeithertheFund,noranyofficialsorotherpersonsactingonitsbehalf,shall interfereinthepoliticalaffairsofanymember;norshall theybeinfluencedintheirdecisionsbythepoliticalcharacterofthememberormembersconcerned.Onlyconsiderationsrelevanttotheeconomicandsocial development ofmembers shall be relevant to suchdecisions,and theseconsiderationsshallbeweighed impartially toachieve thepurposesstatedinthisAgreement.

CHAPTER VIORGANIZATION AND MANAGEMENT

Article 22. Organization of the Fund

TheFundshallhaveaBoardofGovernors,aBoardofDirectorsandaPresident.TheFundwillutilisetheofficers,staff,organization,services.andfacilitiesoftheBanktocarryoutitsfunctionsand,iftheBoardofDirectors recognizes that there is need for additional personnel, willhavesuchpersonnelwhoshallbeengagedbythePresidentpursuanttoArticle30(4)(v).

Article 23. Board of Governors: Powers

1. All the powers of the Fund shall be vested in the Board ofGovernors.

2. TheBoardofGovernorsmaydelegatetotheBoardofDirectorsallitspowers,exceptthepowerto:

(i) admit new participants and determine the terms of theiradmission;

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(ii) authorize increases in subscription under Article 7 anddeterminethetermsandconditionsrelatingthereto;

(iii) suspendaparticipant;

(iv) decide appeals from decisions made by the Board ofDirectorsconcerningtheinterpretationorapplicationofthisAgreement;

(v) authorize the conclusion of general arrangements for co-operationwithotherinternationalorganizations,otherthanarrangementsofatemporaryoradministrativecharacter;

(vi) selectexternalauditors toaudit theaccountsof theFundandcertifythebalancesheetandstatementoftheincomeandexpendituresoftheFund;

(vii)approve, after reviewing the report of the auditors, thebalance sheet and the statement of the income andexpendituresoftheFund;

(viii)amendthisAgreement;

(ix) decidetoterminatetheoperationsoftheFundanddistributeitsassets;and

(x)exercisesuchotherpowersasareexpresslyassigned totheBoardofGovernorsinthisAgreement.

3. TheBoardofGovernorsmayatanytimerevokethedelegationofanymattertotheBoardofDirectors.

Article 24. Board of Governors: Composition

1. ThegovernorsandalternategovernorsoftheBankshallbeexofficio governors and alternate governors respectively of theFund. ThePresident of theBank shall notify to theFundasnecessarythenamesofsuchgovernorsandalternates.

2. EachStateparticipantwhichisnotamembershallappointonegovernor and one alternate governor who shall serve at thepleasureoftheappointingparticipant.

3. Noalternatemayvoteexceptintheabsenceofhisprincipal.

4. Subject to the provisions of Article 60 (4), governors andalternatesshallserveassuchwithoutpaymentofremunerationorexpensesbytheFund.

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Article 25. Board of Governors: Procedure

1. The Board of Governors shall hold an annual meeting andsuchothermeetingsasmaybeprovided for by theBoardorcalledbytheBoardofDirectors.TheChairmanoftheBoardofGovernorsoftheBankshallbeexofficioChairmanoftheBoardofGovernorsoftheFund.

2. TheannualmeetingoftheBoardofGovernorsshallbeheldinconjunctionwiththeannualmeetingoftheBoardofGovernorsoftheBank.

3. AquorumforanymeetingoftheBoardofGovernorsshallbeamajorityofthetotalnumberofgovernors,representingnotlessthanthree-fourthsofthetotalvotingpoweroftheparticipants.

4. TheBoardofGovernorsmaybyregulationestablishaprocedurewherebytheBoardofDirectorsmay,whenitdeemssuchactionadvisable,obtainavoteofthegovernorsonaspecificquestionwithoutcallingameetingoftheBoardofGovernors.

5.TheBoardofGovernors,andtheBoardofDirectorstotheextentauthorized by the Board of Governors, may establish suchsubsidiarycommitteesasmaybenecessaryorappropriate toconductthebusinessoftheFund.

6.TheBoardofGovernors,andtheBoardofDirectorstotheextentauthorizedbytheBoardofGovernorsorbythisAgreement,mayadoptsuchregulations,notinconsistentwiththisAgreement,asshallbenecessaryorappropriatefortheconductofthebusinessoftheFund.

Article 26. Board of Directors: Functions

WithoutprejudicetothepowersoftheBoardofGovernorsprovidedforinArticle23,theBoardofDirectorsshallberesponsibleforthedirectionofthegeneraloperationsoftheFundandforthispurposeshallexerciseanyfunctionsexpresslygiventoitinthisAgreementordelegatedtoitbytheBoardofGovernorsand,inparticular,shall:

1. preparetheworkoftheBoardofGovernors;

2. inconformitywiththegeneraldirectivesoftheBoardofGovernors,take decisions regarding individual loans and other forms offinancingtobeprovidedbytheFundunderthisAgreement;

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3. adopt such rules, regulations or other measures as may berequiredtoensurethatproperandadequateauditedaccountsandrecordsarekeptinrelationtotheoperationsoftheFund;

4. ensure that the Fund is served in the most efficient andeconomicalmanner;

5. submittotheBoardofGovernors,forapprovalateachannualmeeting, theaccounts foreachfinancial year ina formwhichdistinguishes, to the extent necessary, between the accountsof thegeneraloperationsof theFundandof suchoperationsasarefinancedfromcontributionsmadeavailabletotheFundunderArticle8;

6. submit totheBoardofGovernorsforapprovalateachannualmeetinganannualreport;and

7. approvethebudgetandgenerallendingprogrammeandpoliciesof the Fund, in accordance with the resources respectivelyavailableforthesepurposes.

Article 27. Board of Directors: Composition1

1. There shall be a Board of Directors composed of fourteenDirectors.

2. The State participants shall, pursuant to Schedule B, selectsevendirectorsandsevenalternatedirectors.

3. The Bank shall, pursuant to Schedule B, designate sevendirectors,andtheiralternatesfromtheBoardofDirectorsoftheBank.

4. AnalternatedirectoroftheFundmayattendallmeetingsoftheBoardofDirectorsbutshallneitherparticipatenorvoteexceptintheabsenceofhisprincipal.

5. TheBoardofDirectorsshallinvitetheotherdirectorsoftheBankandtheiralternatestoattendmeetingsoftheBoardofDirectorsas observers and any such Bank director or, in his absence,hisalternatemayparticipateinthediscussionofanyproposedprojectdesignedtobenefitthecountrywhichherepresents intheBoardofDirectorsoftheBank.

1 ModifiedbyvirtueoftheprovisionsofResolutionF/BG/2010/03adoptedbytheBoardofGovernorson27May2010.

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6. (a) AdirectordesignatedbytheBankshallholdofficeuntilhissuccessorshallhavebeendesignatedpursuanttoScheduleBandshallhaveassumedoffice.IfadirectordesignatedbytheBankshallceasetobeadirectoroftheBankheshallceasetobeadirectoroftheFund.

(b) ThetermofofficeofdirectorsselectedbyStateparticipantsshallbethreeyears,butshallterminatewheneverageneralincreaseinsubscriptionspursuanttoArticle7(1)becomeseffective.Suchdirectorsshallbeeligibleforafurthertermor termsofoffice. Theyshallcontinue inofficeuntil theirsuccessorshavebeenselectedandhaveassumedoffice.Iftheofficeofsuchadirectorshallbecomevacantbeforethe expiration of his termof office, the vacancy shall be,filled by a new director selected by the State participantor participantswhose votes his predecessorwas entitledto cast. Suchsuccessordirector shall holdoffice for theremainderofthetermofofficeofhispredecessor.

(c) Whiletheofficeofadirectorremainsvacantthealternateof the former director shall exercise the powers of thelatter except that of appointinganalternate, other thanatemporaryalternatetorepresenthimatmeetingswhenhecannotbepresent.

7. IfaStateshallbecomeaStateparticipantpursuanttoArticle3(3),oraStateparticipantshallincreaseitssubscription,orifforanyotherreasonthevotingrightsofindividualStateparticipantsshouldchangebetweenthetimesprovidedfortheselectionofdirectorsrepresentingStateparticipants:

(a) Thereshallbenochange indirectorsasa result thereof,provided that if a director shall cease to haveany votingrights, his term of office and that of his alternate shallterminateforthwith.

(b) Voting rights of State participants and of the directorsselectedbythemshallbeadjustedasoftheeffectivedateof the increase insubscriptionor thenewsubscriptionorotherchangeinvotingrights,asthecasemaybe;and

(c) IfsuchanewStateparticipantshallhavevoting rights, itmaydesignatea director then representingoneormoreStateparticipantstorepresentitandcastitsvotesuntilthenextgeneralselectionofStateparticipantdirectors.

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8. DirectorsandalternatesshallserveassuchwithoutpaymentofremunerationorexpensesbytheFund.

Article 28. Board of Directors: Procedure

1. TheBoardofDirectorsshallmeetasoftenasthebusinessoftheFundmay require. TheChairmanshallcallameetingofthe Board of Directors whenever requested to do so by fourdirectors.

2. AquorumforanymeetingoftheBoardofDirectorsshallbeamajority of the total number of directors having not less thanthree-fourthsofthetotalvotingpoweroftheparticipants.

Article 29. Voting

1. TheBank,andtheStateparticipantsasagroup,shalleachhave1,000votes.

2. EachgovernoroftheFundwhoisagovernoroftheBankshallhave,andshallbeentitledtocast,suchproportionateshareoftheBank’svotesasshallhavebeennotifiedtotheFundbythePresidentoftheBank.

3. Each State participant shall have a proportionate share ofthe aggregate votes of the State participants based on thesubscriptionsofsuchparticipantmadepursuanttoArticle6and,totheextentagreedbytheStateparticipantsinconnectionwithadditionalsubscriptionsauthorizedunderArticle7(1)and(2),onsuchadditionalsubscriptions.However,thetotalvotestobeallocatedtoregionalmembersthatareStateparticipantsshallnotexceedonepercentofthetotalvotesofStateparticipants.InvotingintheBoardofGovernors,eachgovernorrepresentinga State participant shall be entitled to cast the votes of theparticipantherepresents.

4. InvotingintheBoardofDirectors,directorsdesignatedbytheBankshalltogetherhave1,000votesanddirectorsselectedbytheState participants shall together have 1,000 votes. EachdirectordesignatedbytheBankshallhavethenumberofvotesallocated tohimby theBankasset forth in thenotificationofhisdesignation,givenpursuant toPart IofScheduleB.EachdirectorselectedbyoneormoreStateparticipantsshallhavethenumberofvotesheldbytheparticipantorparticipantswhichselectedhim.

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5. Each Bank director shall cast his votes as a unit.A directorrepresentingmorethanoneStateparticipantmaycastseparatelythevotesoftheStatesherepresents.

6. NotwithstandinganyoftheotherprovisionsofthisAgreement,if a State shall be or become both a State participant and amemberitshall,butsolelyforthepurposesofthisAgreement,betreatedinallrespectsasifitwerenotamember.

7. Except as otherwise provided in this Agreement, all mattersbeforetheBoardofGovernorsortheBoardofDirectorsshallhedecidedbyathree-fourthsmajorityofthetotalvotingpoweroftheparticipants.

Article 30. The President

1. ThePresidentof theBankshallbeex officioPresidentof theFund.HeshallbeChairmanoftheBoardofDirectorsbutshallhavenovote.HemayparticipateinmeetingsoftheBoardofGovernorsbutshallnotvote.

2. ThePresidentshallbethelegalrepresentativeoftheFund.

3. IntheeventthatthePresidentoftheBankisabsentorhisofficeshouldbecomevacant,thepersonforthetimebeingdesignatedto perform the duties of President of the Bank shall act asPresidentoftheFund.

4. Subject toArticle26, thePresidentshall conduct theordinarybusinessoftheFundand,inparticular,shall:

(a) proposetheoperatingandadministrativebudgets;

(b) proposetheoverallfinancingprogramme;

(c) arrange for the study and appraisal of projects andprogrammesforfinancingbytheFundinaccordancewithArticle15(3);

(d) draw,asneeded,ontheofficers,staff,organization,servicesand facilitiesof theBank tocarryout thebusinessof theFundandshallberesponsibletotheBoardofDirectorsforensuring and controlling the proper organization, staffingandservicesprovidedunderArticle22;and

(e) engagetheservicesofsuchpersonnel,includingconsultantsand experts, as may be needed by the Fund, and mayterminatesuchservices.

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Article 31. Relationship to the Bank

1. TheFundshallreimbursetheBankforthefairvalueofitsuseof theofficers,staff,organization,servicesandfacilitiesof theBank, in accordance with arrangements made between theFundandtheBank.

2. TheFundshallbeanentityjuridicallyseparateanddistinctfromtheBank and assets of the Fund shall be kept separate andapartfromthoseoftheBank.

3. Nothing in thisAgreement shallmake the Fund liable for theactsorobligationsoftheBank,ortheBankliablefortheactsorobligationsoftheFund.

Article 32. Office of the Fund

TheofficeoftheFundshallbetheprincipalofficeoftheBank.

Article 33. Depositories

EachStateparticipant shall designate its central bankor suchotherinstitutionasmaybeacceptabletotheFundasadepositoryinwhichthe Fundmay keep holdings of such participant’s currency or otherassetsof theFund. In theabsenceofanydifferentdesignation, thedepositoryforeachmembershallbethedepositorydesignatedbyitforthepurposesoftheAgreementestablishingtheBank.

Article 34. Channel of Communication

Each State participant shall designate an appropriate authority withwhichtheFundmaycommunicateinconnectionwithanymatterarisingunderthisAgreement.Intheabsenceofanydifferentdesignation,thechannelofcommunicationdesignatedbyamemberfortheBankshallbeitschannelfortheFund.

Article 35. Publication of Reports and Provision of Information

1. TheFundshallpublishanannualreportcontaininganauditedstatementofitsaccountsandshallcirculatetoparticipantsandmembers at appropriate intervals a summary statement of itsfinancial position and an income and expenditures statementshowingtheresultsofitsoperations.

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2. TheFundmaypublishsuchotherreportsasitdeemsdesirabletocarryoutitspurposes.

3. Copiesofallreports,statementsandpublicationsmadeunderthisArticleshallbedistributedtoparticipantsandmembers.

Article 36. Allocation of Net Income

TheBoardofGovernorsshalldeterminefromtimetotimethedispositionoftheFund’snetincome,havingdueregardtoprovisionforreservesandcontingencies.

CHAPTER VIIWITHDRAWAL; SUSPENSION OF PARTICIPATION;

TERMINATION OF OPERATIONS

Article 37. Withdrawal by Participants

Any participant may withdraw from participation in the Fund at anytimebytransmittinganoticeinwritingtotheFundatitsprincipaloffice.Withdrawalshallbecomeeffectiveuponthedatesuchnoticeisreceivedor upon suchdate, notmore than sixmonths thereafter, asmaybespecifiedinsuchnotice.

Article 38. Suspension of Participation

1. IfaparticipantfailstofulfilanyofitsobligationstotheFund,theFundmaysuspenditsparticipationbydecisionoftheBoardofGovernors. Theparticipant so suspended shall automaticallyceasetobeaparticipantoneyearfromthedateofitssuspensionunlessadecisionistakenbytheBoardofGovernorstorestoretheparticipanttogoodstanding.

2. While under suspension, a participant shall not be entitled toexercise any rights under thisAgreement except the right ofwithdrawal,butshallremainsubjecttoallobligations.

Article 39. Rights and Duties of States Ceasing to be Participants

1. When a State ceases to be a participant, it shall have norights under thisAgreement except as provided in thisArticleandinArticle53butitshall,exceptasinthisArticleotherwise

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provided,remainliableforallfinancialobligationsundertakenbyittotheFund,whetherasaparticipant,borrower,guarantororotherwise.

2. When a State ceases to be a participant, the Fund and theStateshallproceedtoasettlementofaccounts.Aspartofsuchsettlementofaccounts,theFundandtheStatemayagreeontheamountstobepaidtotheStateonaccountofitssubscriptionandonthetimeandcurrenciesofpayment.Theterm“subscription”whenusedinrelationtoanyparticipantshallforthepurposesofthisArticleandArticle40bedeemedtoincludeboththeinitialsubscriptionandanyadditionalsubscriptionofsuchparticipant.

3. Pendingsuchagreement,andinanyeventifnosuchagreementis reached within six months from the date when the StateceasedtobeaparticipantorsuchothertimeasmaybeagreeduponbytheFundandtheState,thefollowingprovisionsshallapply:

(a) The State shall be relieved of any further liability to theFundonaccountof itssubscription,except that theStateshall pay to the Fund on their due dates amounts of itssubscriptionunpaidonthedatewhentheStateceasedtobeaparticipantandwhich in theopinionof theFundareneededbyittomeetitscommitmentsasofthatdateunderitsfinancingoperations;

(b) The Fund shall return to the State funds paid in by theState on account of its subscription or derived therefromasprincipalrepaymentsandheldbytheFundonthedatewhen theState ceased to bea participant, except to theextent that in the opinion of the Fund such fundswill beneededbyittomeetitscommitmentsasofthatdateunderitsfinancingoperations;

(c) The Fund shall pay to the State a pro rata share of allprincipal repayments receivedby theFundafter thedateon which the State ceases to be a participant on loanscontractedpriorthereto,exceptthosemadeoutofresourcesprovidedtotheFundunderarrangementsspecifyingspecialliquidationrights.SuchshareshallbesuchproportionofthetotalprincipalamountofsuchloansasthetotalamountpaidbytheStateonaccountofitssubscriptionandnotreturnedtoitpursuanttosub-paragraph(ii)aboveshallbeartothetotal amount paid by all participants on account of their

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subscriptionswhichshallhavebeenusedorintheopinionof theFundwillbeneededby it tomeet itscommitmentsunder its financing operations as of the date on whichthe State ceases to be a participant. Such Payment bytheFundshallbemadein instalmentswhenandassuchprincipal repayments are received by the Fund, but notmore frequently than annually. Such instalments shall bepaidinthecurrenciesreceivedbytheFundexceptthattheFundmayinitsdiscretionmakepaymentinthecurrencyoftheStateconcerned;

(d) AnyamountduetotheStateonaccountofitssubscriptionmaybewithheldsolongasthatState,oranysub-divisionor any agency of any of the foregoing remains liable, asborrowerorguarantor,totheFund,andsuchamountmay,at the option of the Fund, be applied against any suchliabilityasitmatures;

(e) InnoeventshalltheStatereceiveunderthisparagraphanamountexceeding,intheaggregate,thelesserofthetwofollowing:

(1) the amount paid by the State on account of itssubscription,or

(2) suchproportionofthenetassetsoftheFund,asshownonthebooksoftheFundasofthedateonwhichtheStateceasedtobeaparticipant,astheamountofitssubscriptionshallbeartotheaggregateamountofthesubscriptionsofallparticipants;

(f) AllcalculationsrequiredhereundershallbemadeonsuchbasisasshallbereasonablydeterminedbytheFund.

4. InnoeventshallanyamountduetoaStateunderthisArticlebepaiduntilsixmonthsafterthedateuponwhichtheStateceasestobeaparticipant.IfwithinsixmonthsofthedateuponwhichanyStatesceasestobeaparticipanttheFundterminatesitsoperationsunderArticle40,allrightsofsuchStateshallbedeterminedbytheprovisionsofsuchArticle40,andsuchStateshallbeconsideredaparticipantintheFund for purposes of suchArticle 40, except that it shallhavenovotingrights.

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Article 40. Termination of Operations and Settlement of Obligations

1. TheFundmayterminateitsoperationsbyvoteoftheBoardofGovernors.WithdrawalbytheBankoralltheStateparticipantspursuanttoArticle37shallconstituteaterminationofoperationsby the Fund. After such termination of operations the Fundshallforthwithceaseallactivities,exceptthoseincidentaltotheorderlyrealization,conservationandpreservationof itsassetsandsettlementofitsobligations.Untilfinalsettlementofsuchobligationsanddistributionofsuchassets,theFundshallremaininexistenceandallmutualrightsandobligationsoftheFundandtheparticipantsunderthisAgreementshallcontinueunimpaired,exceptthatnoparticipantshallbesuspendedorshallwithdrawandthatnodistributionshallbemadetoparticipantsexceptasinthisArticleprovided.

2. Nodistributionshallbemadetoparticipantsonaccountoftheirsubscriptions until all liabilities to creditors shall have beendischarged or provided for and until the Board of Governorsshallhavedecidedtomakesuchdistribution.

3. Subject to the foregoingand to any special arrangements forthedispositionofresourcesagreeduponinconnectionwiththeprovisionofsuchresourcestotheFund,theFundshalldistributeitsassetstoparticipantsproratainproportiontoamountspaidin by them on account of their subscriptions.Any distributionpursuant to the foregoingprovisionof thisparagraphshall besubject,inthecaseofanyparticipant,topriorsettlementofalloutstandingclaimsbytheFundagainstsuchparticipant.Suchdistribution shall be made at such times, in such currencies,and incashorotherassets,as theFundshalldeem fairandequitable.Distribution to the several participants need not beuniform in respect of the type of assets distributed or of thecurrenciesinwhichtheyareexpressed.

4. AnyparticipantreceivingassetsdistributedbytheFundpursuanttothisArticleorArticle39shallenjoythesamerightswithrespecttosuchassetsastheFundenjoyedpriortotheirdistribution.

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CHAPTER VIIISTATUS; IMMUNITIES; EXEMPTIONS AND PRIVILEGES

Article 41. Purpose of Chapter

To enable theFund effectively to fulfil its purpose and carry out thefunctions entrusted to it, the status, immunities, exemptions andprivilegessetforthinthisChaptershallbeaccordedtotheFundintheterritoryofeachStateparticipant,andeachStateparticipantshallinformtheFundofthespecificactionwhichithastakenforsuchpurpose.

Article 42. Status

TheFundshallpossessfull juridicalpersonalityand,inparticular,fullcapacity:

(i) tocontract;

(ii) to acquire, and dispose of, immovable and movableproperty;and

(iii) toinstitutelegalproceedings.

Article 43. Legal Process

1. TheFundshallenjoyimmunityfromeveryformoflegalprocess,exceptincasesarisingoutoforinconnectionwiththeexerciseof itspowers to receive loans inaccordancewithArticle8, inwhichcaseactionsmaybebroughtagainsttheFundinacourtofcompetentjurisdictionintheterritoryofacountryinwhichtheFundhasitsoffice,orhasappointedanagentforthepurposeofacceptingserviceornoticeofprocess,orhasotherwiseagreedtobesued.

2. Notwithstandingtheprovisionsofparagraph1,noactionshallbebroughtagainsttheFundbyanyparticipant,orbyanyagencyorinstrumentalityofaparticipant,orbyanyentityorpersondirectlyor indirectlyacting fororderiving claims fromaparticipantorfromanyagencyorinstrumentalityofaparticipant.Participantsshallhaverecoursetosuchspecialproceduresforthesettlementof disputes between theFundand its participants asmaybeprescribedinthisAgreement,intheby-lawsandregulationsoftheFund,orincontractsenteredintowiththeFund.

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3. TheFundshall alsomakeprovision forappropriatemodesofsettlementofdisputes incaseswhichdonot comewithin theprovisionsofparagraph(2)andofArticles52and53andwhicharesubjecttotheimmunityoftheFundbyvirtueofparagraph(1)ofthisArticle.

4. WherebyvirtueofanyoftheprovisionsofthisAgreementtheFunddoesnotenjoyimmunityfromlegalprocess,theFund,anditspropertyandassetswherever locatedandbywhomsoeverheld, shall neverthelessbe immune fromall formsof seizure,attachmentorexecutionbeforethedeliveryoffinaljudgementagainsttheFund.

Article 44. Immunity of Assets

PropertyandassetsoftheFund,whereverlocatedandbywhomsoeverheld, shall be immune from search, requisition, confiscation,expropriationoranyotherformoftakingorforeclosurebyexecutiveorlegislativeaction.

Article 45. Immunity of Archives

ThearchivesoftheFund,and,ingeneral,alldocumentsbelongingtoitorheldbyit,shallbeinviolable,whereverlocated.

Article 46. Freedom of Assets from Restriction

TotheextentnecessarytocarryoutthepurposeandfunctionsoftheFund, and subject to the provisions of this Agreement, all propertyandotherassetsoftheFundshallbefreefromrestrictionbyfinancialcontrols,regulations,ormoratoriaofanykind.

Article 47. Privilege for Communications

Official communications of the Fund shall be accorded by eachState participant the same treatment as it accords to the officialcommunicationsofother internationalfinancial institutionsofwhich itisamember.

Article 48. Immunities and Privileges of Officials and Personnel

All governors and directors, and their alternates, the President andpersonnel,includingexpertsperformingmissionsfortheFund:

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1. Shall be immune from legal process with respect to actsperformedbythemintheirofficialcapacity;

2. When they are not local nationals, shall be accordedno lessfavourable immunities from immigration restrictions, alienregistrationrequirementsandnationalserviceobligations,andno less favourable facilities as regards exchange regulations,than are accorded by the State participant concerned to therepresentatives, officials and employees of comparable rankof any other international financial institution of which it is amember;and

3. Shall be granted no less favourable treatment in respect oftravelling facilities than is accorded by the State participantconcerned to representatives, officials and employees ofcomparablerankofanyotherinternationalfinancialinstitutionofwhichitisamember.

Article 49. Exemption from Taxation

1. The Fund, its assets, property, income, operations andtransactions,shallbeexemptfromalldirecttaxation,andfromallcustomsduties,ortaxeshavingequivalenteffect,ongoodsimported or exported for its official use. TheFund shall alsobeexemptfromanyobligationforthepayment,withholdingorcollectionofanytaxorduty.

2. Notwithstanding theprovisionsofparagraph1, theFundshallnotclaimexemptionfromtaxeswhicharenomorethanchargesforservicesrendered.

3. Articlesimportedunderanexemptionprovidedforbyparagraph1shallnotbesoldintheterritoryoftheStateparticipantwhichgrantedtheexemptionexceptunderconditionsagreedwiththatparticipant.

4. Notaxshallbeleviedonorinrespectofsalariesandemolumentspaid by the Fund to the President and personnel includingexpertsperformingmissionsforit.

Article 50. Waiver by the Fund

1. The immunities, exemptions and privileges provided in thisChapteraregrantedintheinterestsoftheFund.TheBoard,ofDirectorsmaywaive,tosuchextentanduponsuchconditions

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asitmaydetermine,theimmunities,exemptionsandprivilegesprovided in thisChapter incaseswhere itsactionwould in itsopinionfurthertheinterestsoftheFund.

2. Regardlessoftheprovisionsofparagraph1,thePresidentshallhavetherightandthedutytowaivetheimmunityofanyofthepersonnel,includingexpertsperformingmissionsfortheFund,incaseswhere,inhisopinion,theimmunitywouldimpedethecourse of justice and can bewaivedwithout prejudice to theinterestsoftheFund.

CHAPTER IXAMENDMENTS

Article 51

1. Any proposal to introduce modifications to this Agreement,whetheremanatingfromaparticipant,agovernorortheBoardofDirectors,shallbecommunicatedtotheChairmanoftheBoardofGovernors,whoshallbringtheproposalbeforethatBoard.IftheproposedamendmentisapprovedbytheBoard,theFundshall,bycircularletterortelegram,asktheparticipantswhethertheyaccept theproposedamendment. Whenthree-fourthsoftheparticipantshavingeighty-fivepercentofthevotingpowerhaveacceptedtheproposedamendment,theFundshallcertifythefactbyformalcommunicationaddressedtotheparticipants.Amendments shall enter into force for all participants threemonths after the date of the formal communication providedforinthisparagraphunlesstheBoardofGovernorsspecifiesadifferentperiodordate.

2. Notwithstandingtheprovisionsofparagraph1,theunanimousapproval of the Board of Governors shall be required for theapprovalofanyamendmentmodifying:

(i) thelimitationonliabilityprovidedforinArticle10;

(ii) the provisions of Article 7 (2) and (3) relating to thesubscriptionofadditionalfunds;

(iii) therighttowithdrawfromtheFund;and

(iv) the voting majority requirements contained in thisAgreement.

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CHAPTER XINTERPRETATION AND ARBITRATION

Article 52. Interpretation

1. AnyquestionofinterpretationorapplicationoftheprovisionsofthisAgreement arising betweenany participant and theFundorbetweenanyparticipantsshallbesubmittedtotheBoardofDirectorsfordecision.IfthereisnodirectorofitsnationalityonthatBoard,aStateparticipantparticularlyaffectedbythequestionunderconsiderationshallbeentitledtodirectrepresentationinsuchcases.SuchrightofrepresentationshallberegulatedbytheBoardofGovernors.

2. InanycasewheretheBoardofDirectorshasgivenadecisionunderparagraph1,anyparticipantmayrequirethatthequestionbe referred to theBoardof Governors,whosedecision shallbefinal. PendingthedecisionoftheBoardofGovernors,theFundmay,sofarasitdeemsnecessary,actonthebasisofthedecisionoftheBoardofDirectors.

Article 53. Arbitration

In the case of a dispute between the Fund and a State which hasceased tobeaparticipant,orbetween theFundandanyparticipantupontheterminationoftheoperationsoftheFund,suchdisputeshallbesubmittedtoarbitrationbyatribunalofthreearbitrators.OneofthearbitratorsshallbeappointedbytheFund,anotherbytheparticipantorformerparticipantconcerned,andthetwopartiesshallappointthethirdarbitrator,whoshallbetheChairman.Ifwithinforty-fivedaysofreceiptoftherequestforarbitrationeitherpartyhasnotappointedanarbitratororifwithinthirtydaysoftheappointmentoftwoarbitratorsthethirdarbitratorhasnotbeenappointed,eitherpartymay request thePresidentoftheInternationalCourtofJustice,orsuchotherauthorityasmayhavebeenprescribedbyregulationsadoptedbytheBoardofGovernors, toappointanarbitrator. Theprocedureof thearbitrationshallbefixedbythearbitrators,but thethirdarbitratorshallhavefullpowertosettleallquestionsofprocedureinanycaseofdisagreementwithrespectthereto.Amajorityvoteofthearbitratorsshallbesufficienttoreachadecision,whichshallbefinalandbindingupontheparties.

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CHAPTER XIFINAL PROVISIONS

Article 54. Signature

TheoriginalofthisAgreementshallremainopenuntil31March1973forsignaturebytheBankandbytheStateswhosenamesaresetforthinScheduleA.

Article 55. Ratification, Acceptance or Approval

1. ThisAgreement shall be subject to ratification, acceptanceorapprovalbythesignatories.

2. Instruments of ratification, acceptance or approval shall bedepositedwiththeBankatitsprincipalofficebyeachsignatorybefore31December1973,providedthat,ifthisAgreementshallnot have entered into force by that date in accordance withArticle56, theBoardofDirectorsof theBankmayextend theperiod fordepositof instrumentsof ratification,acceptanceorapprovalbynotmorethansixmonths.

Article 56. Entry into Force

ThisAgreementshallenter into forceonthedateonwhichtheBankandeightsignatoryStateswhose initial subscriptions,asset forth inScheduleAtothisAgreement,compriseinaggregatenotlessthan55millionunitsofaccount,havedepositedtheirinstrumentsofratification,acceptanceorapproval.

Article 57. Participation

1. A signatory whose instrument of ratification, acceptanceor approval is deposited on or before the date onwhich thisAgreemententersintoforceshallbecomeaparticipantonthatdate.Asignatorywhoseinstrumentofratification,acceptanceorapprovalisdepositedthereafterandbeforethedateprescribedinorpursuanttoArticle55(2)shall,becomeaparticipantonthedateofsuchdeposit.

2. A State which is not an original participant may become aparticipant pursuant to Article 3 (3), and notwithstanding theprovisions of Articles 54 and 55, such participation shall be

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effectedbysigning thisAgreementandbydepositingwith theBankaninstrumentofratification,acceptanceorapproval,whichshalltakeeffectonthedateofsuchdeposit.

Article 58. Reservations

AStatemay,whendepositingitsinstrumentofratification,acceptanceorapproval,declare:

1. thatinitsterritorytheimmunityconferredbyArticle43(1)andbyArticle48shallnotapplyinrelationtoacivilactionarisingoutofanaccidentcausedbyamotorvehiclebelongingtotheFundoroperatedonitsbehalf,ortoatrafficoffencecommittedbythedriverofsuchavehicle;

2. that itretainsfor itselfanditspoliticalsubdivisionstherighttotaxsalariesandemolumentspaidby theFund to thatState’scitizens,nationalsorresidents;

3. thatitunderstandsthattheFundwillnotnormallyclaimexemptionfromexcisedutiesleviedbythatStateongoodsoriginatinginitsterritory,andfromtaxesonthesaleofmovableandimmovableproperty,whichformpartofthepricetobepaid,butthatwherethe Fund is making important purchases for official use ofpropertyonwhichsuchdutiesandtaxeshavebeenchargedorarechargeable,wheneverpossible,appropriateadministrativearrangementswill bemadeby thatState for the remissionorreturnoftheamountofdutyortax;and

4. that the provisions of Article 49 (3) shall apply to articles inrespectofwhicharemissionorreturnofdutyortaxhasbeenmadebythatStatepursuanttothearrangementsreferredtoinsub-paragraph(iii).

Article 59. Notification

TheBankshallnotifyallsignatoriesof:(a) anysignature;

(b) any deposit of an instrument of ratification, acceptance orapproval;

(c) thedateofentryintoforceofthisAgreement;and

(d) anydeclarationsorreservationsmadeatthetimeofdepositofaninstrumentofratification,acceptanceorapproval.

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Article 60. Inaugural Meeting

1. As soon as this Agreement enters into force, each Stateparticipantshall appointagovernor,andtheChairmanof theBoardofGovernorsshallcalltheinauguralmeetingoftheBoardofGovernors.

2. Attheinauguralmeeting:

(a) twelve directors of the Fund shall be designated andselectedpursuanttoArticle27(2)and(3);and

(b) arrangements shall bemade for determining the date onwhichtheFundshallcommenceoperations.

3. TheFundshallnotifyallparticipantsofthedateofcommencementofitsoperations.Reasonableandnecessaryexpensesincurredby the Bank in establishing the Fund, including subsistenceexpenses of governors and their alternates in attending theInauguralMeeting,shallbereimbursedbytheFund.

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IN WITNESS WHEREOF the undersigned, being thereunto dulyauthorized,havesignedthisAgreement.

DONEatAbidjan, this twenty-ninth day ofNovember, one thousandninehundredandseventy-two,intheEnglishandFrenchlanguages,bothtextsbeingequallyauthentic,inasinglecopy,whichshallremaindepositedwiththeBank.

The Bank shall transmit certified copies of this Agreement to eachsignatory.

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SCHEDULE A

1. ORIGINAL PARTICIPANTS

ThefollowingStatesshallbeeligible tobecomeoriginalparticipants:Belgium, Brazil, Canada, Denmark, Finland, Federal Republic ofGermany, Italy, Japan, The Netherlands, Norway, Spain, Sweden,Switzerland,TheUnitedKingdom,TheUnitedStatesofAmericaandYugoslavia.

Any of the aforementioned States which, after 31 December 1973,makesasubscriptionofatleast15millionUnitedStatesdollarsshall,nevertheless,bedeemedanoriginalparticipantprovideditsignsandratifiesthisAgreementonorbefore31December1974.

2. INITIAL SUBSCRIPTIONS

TheBankandthefollowingStateswhichhavesignedthisAgreementhavesubscribedthefollowingamounts:

SUBSCRIPTIONSIN UNITS

OF ACCOUNT

AfricanDevelopmentBank 5,000,000Belgium 3,000,000Brazil 2,000,000Canada 15,000,000Denmark 5,000,000FederalRepublicofGermany 7,447,630Finland 2,000,000Italy 10,000,000Japan 15,000,000Netherlands 4,000,000Norway 5,000,000Spain 2,000,000Sweden 5,000,000SwissConfederation 3,000,000UnitedKingdom 5,211,420Yugoslavia 2,000,000

Total 90,659,050

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SCHEDULE B*DESIGNATION AND SELECTION OF DIRECTORS

Part I

DesignationofDirectorsbytheBank

1. ThePresidentoftheBankshallgivetotheFund,ontheoccasionof each designation by the Bank of directors of the Fund, anotificationsettingforth:

(i) thenamesofthedirectorssodesignated;and

(ii) the number of votes which each such director shall beentitledtocast.

2. WhenthereshallbeavacancyintheofficeofadirectordesignatedbytheBank,thePresidentshallnotifytotheFundthenameofthepersondesignatedbytheBankashissuccessor.

Part II

SelectionofDirectorsbyGovernorsrepresentingStateParticipants

1. In balloting for the selection of directors, each governorrepresentingaStateparticipantshallcastforonepersonallofthevotestowhichtheStateappointinghimisentitled.Thesixpersonsreceivingthegreatestnumberofvotesshallbedirectors,except that no personwho receives less than 12 per cent ofthe total of the votes of such governors shall be consideredelected.

2. Whensixpersonsarenotelectedonthefirstballot,asecondballotshallbeheldinwhichthepersonwhoreceivedthelowestnumberofvotesshallbeineligibleforelectionandinwhichthereshallvoteonly(a)thosegovernorswhovotedinthefirstballotforapersonnotelectedand(b)thosegovernorswhosevotesforapersonelectedaredeemedunder3belowtohaveraisedthevotescastforthatpersonabovefifteenpercentoftheeligiblevotes.

* GENERALCOUNSEL’SNOTE(2010):TheprovisionsofthisScheduleBshallbereadandinterpretedinlightofBoardofGovernorsResolutionF/BG/2010/03adoptedon27May2010pursuanttowhichthenum-berofDirectorsontheBoardofDirectorsoftheFundwasincreasedfromtwelvetofourteen.

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3. Indeterminingwhetherthevotescastbyagovernoraretobedeemedtohaveraisedthetotalofanypersonabovefifteenpercentoftheeligiblevotes,thefifteenpercentshallbedeemedto include, first, the votes of the governor casting the largestnumberofvotesforsuchperson,thenthevotesofthegovernorcastingthenextlargestnumber,andsoonuntilfifteenpercentisreached.

4. Any governor, part of whose votesmust be counted in orderto raise the total of any person above 12 per cent, shall beconsideredascastingallofhisvotesforsuchpersonevenifthetotalvotesforsuchpersontherebyexceedfifteenpercent.

5. If,after thesecondballot,sixpersonshavenotbeenelected,further ballots shall be held on the same principles until sixpersonshavebeenelected,providedthatafterfivepersonsareelected, the sixthmay be elected by a simplemajority of theremainingvotesandshallbedeemedtohavebeenelectedbyallsuchvotes.

6. ThegovernorsrepresentingStateparticipantsmaychangetheforegoingrulesbya75percentmajorityofthetotalvotingpowerofsuchgovernors.

7. ThereshallbeanewselectionofdirectorsrepresentingStateparticipants at each of the first three annual meetings of theBoardofGovernors.

8. Each director shall appoint an alternate who shall have fullpowertoactforhimwhenheisnotpresent.DirectorsandtheiralternatesshallbenationalsofStateparticipants.

AFRICAN DEVELOPMENT FUNDWebsite : www.afdb.org