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CONFORMED COPY 
 
GRANT NUMBER H392-CF 
 
Financing Agreement 
 
(Economic Management and Governance Reform Grant) 
 
between 
 
CENTRAL AFRICAN REPUBLIC 
 
and 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION 
 
Dated June 13, 2008  
 
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GRANT NUMBER H392-CF 
FINANCING AGREEMENT 
AGREEMENT dated June 13, 2008, entered into between CENTRAL AFRICAN 
REPUBLIC (
“Recipient”) and INTERNATIONAL DEVELOPMENT ASSOCIATION 
(“Association”) for the purpose of providing financing in support of the Program (as defined in 
the Appendix to this Agreement).  The Association has decided to provide this financing on the 
basis, 
inter alia
,
of (a) the actions which the Recipient has already taken under the Program and 
which are described in Section I of Schedule 1 to this Agreement, and (b) the Recipient’s 
maintenance of an appropriate macro-economic policy framework.  The Recipient and the 
Association therefore hereby agree as follows: 
ARTICLE I 
—
GENERAL CONDITIONS; DEFINITIONS 
1.01. 
The General Conditions (as defined in the Appendix to this Agreement) constitute an 
integral part of this Agreement. 
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 Appendix to this 
Agreement. 
ARTICLE II 
—
FINANCING 
2.01. 
The Association agrees to extend to the Recipient, on the terms and conditions set forth 
or referred to in this Agreement, a grant in an amount equivalent to four million eight 
hundred thousand Special Drawing Rights (SDR 4,800,000
)
(“Financing”). 
2.02. 
The Recipient may withdraw the proceeds of the Financing in support of the Program in 
accordance with Section II of Schedule 1 to this Agreement.
 
2.03. 
The Maximum Commitment Charge Rate payable by the Recipient on the Unwithdrawn 
Financing Balance shall be one-half of one percent (1/2 of 1%) per annum. 
2.04. 
The Payment Dates are May 15 and November 15 in each year. 
2.05. 
The Payment Currency is the Euro. 
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ARTICLE III 
—
PROGRAM 
3.01. 
The Recipient declares its commitment to the Program and its implementation.  To this 
end: 
(a) 
the Recipient and the Association shall from time to time, at the request of either 
party, exchange views on the progress achieved in carrying out the Program; 
(b) 
prior to each such exchange of views, the Recipient shall furnish to the 
Association for its review and comment a report on the progress achieved in 
carrying out the Program, in such detail as the Association shall reasonably 
request; and 
(c) 
without limitation upon the provisions of paragraphs (a) and (b) of this Section, 
the Recipient shall exchange views with the Association on any proposed action 
to be taken after the disbursement of the Financing which would have the effect 
of materially reversing the objectives of the Program, or any action taken under 
the Program including any action specified in Section I of Schedule 1 to this 
Agreement.  
ARTICLE IV 
—
REMEDIES OF THE ASSOCIATION 
4.01. 
The Additional Event of Suspension is when a situation has arisen which shall make it 
improbable that the Program, or a significant part of it, will be carried out. 
ARTICLE V 
—
EFFECTIVENESS; TERMINATION
 
5.01. 
The Effectiveness Deadline is the date ninety (90) days after the date of this Agreement. 
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ARTICLE VI 
—
REPRESENTATIVE; ADDRESSES
 
6.01. The 
Recipient
’s Representative is the Minister of the Recipient at the time responsible for 
international cooperation. 
6.02. 
The Recipient’s Address is: 
Minister of State, for Planning, Economy and International Cooperation 
Ministry of Planning, Economy and International Cooperation 
Bangui 
Central African Republic 
Facsimile:  
(236) 61 96 89 
6.03. 
The Association’s Address is: 
International Development Association 
1818 H Street, N.W. 
Washington, D.C. 20433 
United States of America 
Cable 
address: 
 Telex: 
  Facsimile: 
INDEVAS 
 248423(MCI) 
 1-202-477-6391 
Washington, D.C. 
  
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AGREED at Bangui, Central African Republic, as of the day and year first above written. 
 
CENTRAL AFRICAN REPUBLIC 
 
By /S/ Sylvain Maliko 
 
Authorized Representative 
 
INTERNATIONAL DEVELOPMENT ASSOCIATION  
 
By /S/ Kossi R. Eguida 
 
Authorized Representative 
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SCHEDULE 1 
Program Actions; Availability of Financing Proceeds 
Section I. 
Actions under the Program
The actions taken by the Recipient under the Program include the following:
 
(A) 
To strengthen the Recipient’s public finance management 
a) 
In order to improve budget execution and reporting, the Recipient has: 
i. 
Adopted, by decree no. 08.146 of April 15, 2008, modalities and 
procedures concerning the chain of budgetary expenditures, and 
accountabilities for the implementation of the state budget consistent 
with the organization chart of its Ministry of Finance and Budget, and  
ii. 
Nominated, by decrees no. 08.159 and no. 08.162 of April 15, 2008, key 
staff in the General Directorates responsible for Budget and Treasury in 
the Ministry of Finance and Budget.  
b) 
In order to strengthen its treasury operations, accounting and reporting systems, 
the Recipient has: 
i. 
requested, by letter from its Minister of Finance and Budget dated  
March 26, 2008, that: (A) 51 government accounts considered inactive, 
dormant or settled be closed immediately, including 32 held at Ecobank, 
10 held at Banque Populaire Maroco-Centrafricaine, and 9 held at 
Commercial Bank Centrafricaine, and (B) the balance on said accounts 
be transferred to a designated treasury account.  Each such commercial 
bank has confirmed in writing the closing of said government accounts; 
ii. 
adopted, by decision (
arrêté)
 no. 515/MFB/DIR-CAB/DGTCP.08 of  
April 2, 2008, a new chart of public accounts finalized after extensive 
consultations including workshops with stakeholders including civil 
society, donors and government officials; and 
iii. 
redeployed, by decision (
arrêté)
 no. 033/MFB/DIR.CAB/DGT of 
 
February 4, 2008, seven (7) treasury agents assigned respectively in the 
following 
Recipient’s line ministries generating revenues, to facilitate the 
reporting of their respective revenues in the Recipient’s government 
accounts: the Ministry in charge of youth, sport and culture, the Ministry 
in charge of national security, veterans, war victims, disarmament and 
army reconstruction, the Ministry in charge of public safety, the Ministry 
in charge of trade, industry, small and medium size enterprises, the 
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Ministry in charge of national education, literacy, higher education and 
scientific research, the Ministry of civil service, labor, social security and 
professional insertion, and the Ministry in charge of public health and 
population. 
c) 
In order to improve its tax and customs administration, and facilitate the 
traceability and expediency of customs clearance, the Recipient has, by decision 
(
arrêté)
 513/MFB/DIR.CAB/DGDDI of April 2, 2008, adopted the 
ASYCUDA ++ computerized information system to produce pre-clearance 
documents for imports
 entering the Recipient’s territory through the Port of 
Douala (Cameroon), so that it be compatible with the one used at the Recipient’s 
central services in Bangui. 
(B) 
To Improve Public Sector and Governance 
a) 
The Recipient has established within the Prime Minister’s office, by 
decree no. 08.133 of March 31, 2008, a permanent oversight and coordination 
committee entitled 
Comité National de Lutte contre la Corruption
,
including 
representatives of civil society. Said committee is responsible, 
inter alia
,
for the 
design of an anti-corruption strategy, the monitoring and oversight of the 
activities of the various public entities involved in the fight against corruption, 
and the submission of an annual report on
 such activities to the Recipient’s 
parliament. 
b) 
In order to improve governance in the forestry sector, the Recipient has: 
i. 
strengthened fiscal compliance in the forestry sector, by: 
(A) 
the cancellation, by decrees no.08.044 and 08.045 of 
February 
21, 2008, of two exploitation and improvement 
permits, in accordance with its remedies in case of non 
compliance with the terms and conditions of such permits; and  
(B) 
the identification of all forestry operators with overdue fiscal 
obligations, and notification to each such operator by letter from 
its Minister responsible for forestry dated February 18, 2008, of 
the deadline for payment of the corresponding amounts, after 
which date the Recipient would exercise its remedies; 
ii. 
suspended the issuance of new exploitation and improvement permits 
until the forestry code which is being prepared by the Recipient has been 
adopted and enacted, by public notice of its Minister responsible for 
forestry dated March 28, 2008 posted on the government’s website and 
widely disseminated in the public. 
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c) 
In order to strengthen the regulatory framework in the oil sector, the Recipient 
has: 
i. 
enacted law no. 07.006 of April 24, 2007 creating the new petroleum 
regulatory body (
Agence de Stabilisation et de Régulation du Prix des 
Produits Pétroliers
), adopted its governing documents (
statuts
)
by
decree no. 07.307 of October 24, 2007, and the General Manager and the 
Chairman of the Board of Directors have been nominated, key staff has 
been appointed, and the 
Agence de Stabilisation et de Régulation du Prix 
des Produits Pétroliers
 is progressively becoming operational; and 
ii. 
ensured that a contract has been signed between 
Agence de Stabilisation 
et de Régulation du Prix des Produits Pétroliers
 and an independent pre-
inspection agency of international reputation, pursuant to which, 
inter 
alia
,
said agency is responsible for controlling the quality of imported oil 
products. 
Section II. 
Availability of Financing Proceeds
A. General. 
 
The Recipient may withdraw the proceeds of the Financing in accordance with 
the provisions of this Section and such additional instructions as the Association may 
specify by notice to the Recipient. 
B. 
Allocation of Financing Amounts.
 
The Financing shall be withdrawn in a single 
tranche.  The allocation of the amounts of the Financing to this end is set out in the table 
below: 
Allocations 
Amount of the Financing Allocated 
(expressed in SDR)
 
Single Tranche 
4,800,000 
TOTAL AMOUNT 
4,800,000 
C. 
Deposits of Financing Amounts.
 
Except as the Association may otherwise agree:   
1. 
all withdrawals from the Financing Account shall be deposited by the 
Association into an account or accounts designated by the Recipient and 
acceptable to the Association; and 
2. 
the Recipient shall ensure that upon each deposit of an amount of the Financing 
into any such account, an equivalent amount is accounted for in the Recipient
’s 
budget management system, in a manner acceptable to the Association. 
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D. Audit.
 
U
pon
the Association’s request, the Recipient shall: 
1. 
have the designated accounts referred to in paragraph (C)(1) above audited by 
independent auditors acceptable to the Association, in accordance with 
consistently applied auditing standards acceptable to the Association; 
2. 
furnish to the Association as soon as available, but in any case not later than four 
months after the date of the Association’s request for such audit, a certified copy 
of the report of such audit, of such scope and in such detail as the Association 
shall reasonably request; and  
3. 
furnish to the Association such other information concerning the designated 
accounts referred to in paragraph (C)(1) and their audit as the Association shall 
reasonably request. 
E. Excluded 
Expenditures
.
The Recipient undertakes that the proceeds of the Financing 
shall not be used to finance Excluded Expenditures. If the Association determines at any 
time that an amount of the Financing was used to make a payment for an Excluded 
Expenditure, the Recipient shall, promptly upon notice from the Association, refund an 
amount equal to the amount of such payment to the Association. Amounts refunded to the 
Association upon such request shall be cancelled.
 
F. 
Closing Date.  
The Closing Date is May 31, 2009. 
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APPENDIX 
Section I.  Definitions 
1. 
“Excluded Expenditure” means any expenditure: 
(a) 
for goods or services supplied under a contract which any national or 
international financing institution or agency other than the Association or the 
Bank has financed or agreed to finance, or which the Association or the Bank has 
financed or agreed to finance under another credit, grant or loan; 
(b) 
for goods included in the following groups or sub-groups of the Standard 
International Trade Classification, Revision 3 (SITC, Rev.3), published by the 
United Nations in Statistical Papers, Series M, No. 34/Rev.3 (1986) (the SITC), 
or any successor groups or subgroups under future revisions to the SITC, as 
designated by the Association by notice to the Recipient: 
Group Sub-group 
Description 
of 
Item 
112  
Alcoholic 
beverages 
121  
Tobacco, 
un-manufactured, 
tobacco refuse 
122 
 
Tobacco, manufactured (whether 
or not containing tobacco 
substitutes) 
525 
 
Radioactive and associated 
materials 
667 
 
Pearls, precious and semiprecious 
stones, unworked or worked 
718  
718.7 
 
Nuclear reactors, and parts 
thereof; fuel elements (cartridges), 
non-irradiated, for nuclear 
reactors 
728 
728.43  
Tobacco processing machinery 
897  
897.3 
Jewelry of gold, silver or 
platinum group metals (except 
watches and watch cases) and 
goldsmiths’ or silversmiths’ wares 
(including set gems) 
971  
 
Gold, non-monetary (excluding 
gold ores and concentrates) 
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(c) 
for goods intended for a military or paramilitary purpose or for luxury 
consumption; 
(d) 
for environmentally hazardous goods, the manufacture, use or import of which is 
prohibited under the laws of the Recipient or international agreements to which 
the Recipient is a party; 
(e) 
on account of any payment prohibited by a decision of the United Nations 
Security Council taken under Chapter VII of the Charter of the United Nations; 
and 
(f) 
with respect to which the Association determines that corrupt, fraudulent, 
collusive or coercive practices were engaged in by representatives of the 
Recipient or other recipient of the Financing proceeds, without the Recipient (or 
other such recipient) having taken timely and appropriate action satisfactory to 
the Association to address such practices when they occur. 
2. 
“General Conditions” means the “International Development Association General 
Conditions for Credits and Grants”, dated July 1, 2005 (as amended through  
October 15, 2006) with the modifications set forth in Section II of this Appendix. 
3. 
“Program” means the program of actions, objectives and policies designed to promote 
growth and achieve sustainable reductions in poverty and set forth or referred to in the 
letter dated April 14, 2008 from the Recipient to the Association declaring the 
Recipient’s commitment to the execution of the Program, and requesting assistance from 
the Association in support of the Program during its execution. 
4. 
“Single Tranche” means the amount of the Financing allocated to the category entitled 
“Single Tranche” in the table set forth in Part B of Section II of Schedule 1 to this 
Agreement. 
Section II.  Modifications to the General Conditions 
The modifications to the “International Development Association General Conditions for Credits 
and Grants”, dated July 1, 2005 (as amended through October 15, 2006) are as follows:   
1. 
The last sentence of paragraph (a) of Section 2.03 (relating to Applications for 
Withdrawal) is deleted in its entirety. 
2. 
Sections 2.04 (
Designated Accounts)
 and 2.05 (
Eligible Expenditures
)
are deleted in their 
entirety, and the remaining Sections in Article II are renumbered accordingly. 
3. 
Sections 4.01 (
Project Execution Generally
), and 4.09 (
Financial Management; 
Financial Statements; Audits
)
are deleted in their entirety, and the remaining Sections in 
Article IV are renumbered accordingly. 
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4. 
Paragraph (a) of Section 4.05 (renumbered as such pursuant to paragraph 3 above and 
relating to 
Use of Goods, Works and Services
)
is deleted in its entirety. 
5. 
Paragraph (c) of Section 4.06 (renumbered as such pursuant to paragraph 3 above) is 
modified to read as follows: 
“Section 4.06. 
Plans; Documents; Records 
…
(c) 
The Recipient shall retain all records (contracts, orders, invoices, 
bills, receipts and other documents) evidencing expenditures under the Financing 
until two years after the Closing Date. The Recipient shall enable the 
Association’s representatives to examine such records.” 
6. 
Section 4.07 (renumbered as such pursuant to paragraph 3 above) is modified to read as 
follows: 
“Section 4.07. 
Program Monitoring and Evaluation 
…
(c)  
The Recipient shall prepare, or cause to be prepared, and furnish 
to the Association not later than six months after the Closing Date, a report of 
such scope and in such detail as the Association shall reasonably request, on the 
execution of the Program, the performance by the Recipient and the Association 
of their respective obligations under the Legal Agreements and the 
accomplishment of the purposes of the Financing.” 
7. 
The following terms and definitions set forth in the Appendix are modified or deleted as 
follows, and the following new terms and definitions are added in alphabetical order to 
the Appendix as follows, with the terms being renumbered accordingly: 
(a) 
The definition of the term “Eligible Expenditure” is modified to read as follows:   
“‘Eligible Expenditure’ means any use to which the Financing is put in support 
of the Program, other than to finance expenditures excluded pursuant to the 
Financing Agreement.” 
(b) 
The term “Financial Statements” and its definition as set forth in the Appendix 
are deleted in their entirety. 
(c) 
The term “Project” is modified to read “Program” and its definition is modified 
to read as follows:  
 
“‘Program’ means the program referred to in the Financing Agreement in support 
of which the Financing is made.”  All references to “Project” throughout these 
General Conditions are deemed to be references to “Program.”
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