-,Now~
OFFICIAL
' DOCUMENTS
LOAN NUMBER 8420-MK
Guarantee Agreement
(National and Regional Roads Rehabilitation Project)
between
FORMER YUGOSLAV REPUBLIC OF MACEDONIA
(Guarantor)
and
INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT
(Bank)
Dated O     V      , 2014


LOAN NUMBER 8420-MK
GUARANTEE AGREEMENT
AGREEMENT, dated ( t 0 btk.-2 1         , 2014, entered into between the
Guarantor and the Bank ("Guarantee Agreement") in connection with the Loan
Agreement of same date between the Bank and the Public Enterprise for State Roads
("Borrower") ("Loan Agreement"). The Guarantor and the Bank hereby agree as follows:
ARTICLE I - GENERAL CONDITIONS; DEFINITIONS
Section 1.01. The General Conditions (as defined in the Appendix to the Loan
Agreement) constitute an integral part of this Agreement.
Section 1.02. Unless the context requires otherwise, the capitalized terms used in
this Agreement have the meanings ascribed to them in the General Conditions or in the
Loan Agreement.
ARTICLE II - GUARANTEE; PROVISION OF FUNDS
Section 2.01. The Guarantor declares its commitment to the objectives of the
Project. To this end, 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 all Loan
Payments payable by the Borrower pursuant to the Loan Agreement, and the punctual
performance of all the other obligations of the Borrower set forth or referred to in the
Loan Agreement.
Section 2.02. Without limitation or restriction upon the provisions of Section 2.01
of this Agreement, the Guarantor specifically undertakes, whenever there is reasonable
cause to believe that the funds available to the Borrower will be inadequate to meet the
estimated expenditures required for the carrying out of the Project, promptly to provide
the Borrower with the funds needed to meet such expenditures.
Section 2.03. The Guarantor further specifically undertakes to:
(a)    ensure the Borrower maintains adequate staff and resources and adequate
management, in a manner and with terms of reference and a composition
satisfactory to the Bank; and
(b)    transfer to the Borrower no less than twenty (20%) per cent of the total
excise tax on oil derivatives (as defined in the Guarantor's Law
Amending the Law on Public Roads (Official Gazettel68/2012)),
collected within each calendar quarter; such transfers shall be made on a
regular basis, but in any event at least four times during a calendar year,
in intervals not exceeding three calendar months.


ARTICLE III -REPRESENTATIVE; ADDRESSES
Section 3.01. The Guarantor's Representative is its Minister of Finance.
Section 3.02. The Guarantor's Address is:
Ministry of Finance
St. Dame Gruev No.14
1000 Skopje
Facsimile:
389 2 3106 779
Section 3.03. The Bank's Address is:
International Bank for
Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable:              Telex:               Facsimile:
INTBAFRAD           248423 (MCI) or     (202) 477-6391
Washington, D.C.     64145 (MCI)
-2-


AGREED at Skopje, Macedonia as of the day and year first above written.
GUARANTOR
By
Authorized Representative
Name:   4 V ~      t'A-
Title:        :     *(/   (c
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPMENT
By
Authorized Representative
Name:               Aws kwS
Title:
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