Commonwealth Numbered Acts

PAPUA NEW GUINEA LOAN (INTERNATIONAL BANK) ACT 1974 No. 87, 1974 - SCHEDULE 3

SCHEDULE 3
Section 4

VARIATION OF THE GENERAL CONDITIONS APPLICABLE TO LOAN AND GUARANTEE
AGREEMENTS OF THE BANK
The Secretary of the Treasury                                      June 12, 1974
Department of the Treasury Canberra 2600, A.C.T. Australia Re: Loan No.
999-PNG (Second Power Project) Dear Sir:

We are writing with respect to the Guarantee Agreement of even date between
Australia (the Guarantor) and the Bank related to the Loan Agreement of even
date, between The Government of Papua New Guinea (the Borrower) and the Bank,
and with respect to the General Conditions applicable to such Agreements.

The Guarantor has advised us that Papua New Guinea is shortly to achieve
independence -foreshadowed for 1 December 1974 and the Guarantor has
accordingly requested the agreement of the Bank, and the Bank herewith agrees,
to the following:

Notwithstanding the provisions of Section 7.01 (a) and (c) and 9.02 of the
said General Conditions, if the Borrower shall have failed to make payment of
principal, interest or other charges payable under the Loan on any due date
therefor, the Guarantor shall not be deemed to be in default in respect
thereof if it makes payment no later than five days after the Guarantor shall
have received notice from the Bank of such failure to make payment. All other
provisions of any of the Loan and Guarantee Agreements and of the General
Conditions applicable thereto shall remain in full force and effect.

The same understanding shall also apply to all Guarantee Agreements between
Australia and the Bank, guaranteeing loans for projects in Papua New Guinea.
Very truly yours, INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT By R. J. GOODMAN Director East Asia and Pacific
Department Asia Regional Office
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