Agreement between the Government of the
Italian Republicand the Government of the Republic of Uganda
on the cancellation of the debt of the Republic of Uganda
The
Government of the Italian Republic and the Government of the
Republic of Uganda, in the spirit of friendship and economic
co-operation existing between the two countries and on the basis
of the Agreed Minute on the consolidation of the debt of the
Republic of Uganda, signed in Paris on September 12, 2000 by
the countries taking part in the Paris Club meeting, agree as
follows:
Article
I
The
present Agreement concerns the cancellation of:
-
100%
of debt outstanding at the date of the signature of the present
Agreement related to contracts and financial conventions concluded
before June 20, 1999, for both principal and contractual interest,
due from the Government of the Republic of Uganda to Italy
through “SACE - Istituto per i Servizi Assicurativi
del Commercio con l’Estero” and Mediocredito Centrale;
-
100% of late interest on debts envisaged in paragraph a) above,
calculated from the due dates and accrued up to the date of
the present Agreement. For debts owed to SACE late interest
will be computed at the rate of 6,57% p.a., while for debts
owed to Mediocredito Centrale late interest will be computed
at the rate set in the relevant Financial Convention plus
a margin of 1% p.a. The above mentioned debts are listed in
the Annexes to the present Agreement. These Annexes may be
revised by mutual consent of the two Parties. It is understood
that contracts and/or financial conventions concluded after
June 20, 1999 are excluded from the present cancellation or
any other future debt reorganization.
-
In
order to obtain the above mentioned debt cancellation the
Government of the Republic of Uganda continues to commit itself
to:
-
respect human rights and fundamental freedoms and refrain
from the use of force as a means of settlement of international
disputes;
-
pursue sustainable development within the context of a
national poverty reduction strategy, designed in consultation
with the domestic civil society and international partners;
-
assign to the national budget resources for military purposes
not exceeding the legitimate needs of security and defence
of the country.
-
The Government of the Republic of Uganda commits itself to
submit to the Ministry of Foreign Affairs of the Italian Republic,
within three months of the signature of the present Agreement,
the project for the allocation of the funds (including sectoral
investment programmes) released by debt cancellation, in accordance
with the national poverty reduction strategy. The project
will have to be approved through diplomatic channels.
Article
III
The
infringement of the commitments set forth in Article II will
be verified on the basis of:
-
deliberations
of International Organizations (in particular of the United
Nations system), of the European Union and of the International
Financial Institutions;
-
assessments of the congruity of military expenses;
-
official progress reports on the implementation of the project
(including sectoral investment programmes) mentioned above
in Article II, paragraph 2.
-
Should
the verifications set forth in Article III indicate that the
Government of the Republic of Uganda does not fulfil one or
more of the commitments set forth in Article II, the Government
of the Italian Republic will request the Government of the
Republic of Uganda to start bilateral consultations. These
consultations may be replaced, at the request of the Government
of the Italian Republic and if applicable, by those set forth
in Article 96 of the Cotonou Agreement between the members
of the ACP group of States and the European Community and
its member States. Should the Government of the Republic of
Uganda not answer, within two months, the request for consultations,
or should such consultations be not satisfactory in relation
to serious infringement of the commitments set forth in Article
II, the Government of the Italian Republic can decide the
suspension of the present Agreement. Pending the suspension
the Government of the Republic of Uganda will be responsible
for all payments of the maturities previously scheduled and
due after the above mentioned decision.
-
Once the conditions set forth in Article II are deemed re-established,
according to the verifications of Article III, the Government
of the Italian Republic will consider lifting the suspension.
-
If, after a congruous period of time, the conditions set forth
in Article II are deemed not to have been re-established according
to the verifications of Article III, the Government of the
Italian Republic will denounce the present Agreement and the
denouncement will be effective thirty days after the notification
to the other Party.
Article V
Except for its provisions, this Agreement does
not impair either legal ties established by common law or contractual
commitments entered into by the Parties for the operations to
which debts are referred to in Article I of this Agreement.
Article VI
The present Agreement will come into force at
the date of the signature and will remain in forceuntil the
completion of the project as per Article II, paragraph 2.
In witness thereof the undersigned Representatives,
duly authorized by their respective Governments, have signed
the present Agreement.
Done
in Rome on April 17, 2002 in two originals in the English language.
For
the Government
of the Italian Republic |
For
the Government
of the Republic of Uganda |
Sen. Alfredo Mantica
Under-Secretary of State for Foreign Affairs
|
Sam Kutesa
Minister of Finance
|
|
