Agreement

between

the Government of the Kingdom of Cambodia

and

the Government of the Federal Republic of
Germany

concerning

Financial Cooperation

in 2005

The Government of the Kingdom of Cambodia
and
the Government of the Federal Republic of Germany,

in the spirit of the friendly relations existing between the Federal Republic of Germany and the Kingdom of Cambodia,

desiring to strengthen and intensify those friendly relations through financial cooperation in a spirit of partnership,

aware that the maintenance of those relations constitutes the basis of this Agreement,

intending to contribute to social and economic development in the Kingdom of Cambodia, referring to the Summary Record of the intergovernmental negotiations held in Phnom Penh on 18 October 2005,

have agreed as follows.

Article I

(1) The Government of the Federal Republic of Germany shall enable the Government of the Kingdom of Cambodia to obtain from the Kreditanstalt für Wiederaujbau (K(W), Frankfurt am Main, financial contributions totalling EUR 13, 000, 000 (thirteen million euro) for the projects

1. Reproductive Health II up to EUR 7, 000, 000 (seven million euro),
   

2. Rural Electrification up to EUR 6,000,000 (six million euro),

if on examination these projects have been found eligible for promotion.

(2) The projects specified in paragraph (1) above may be replaced by other projects provided the Government of the Federal Republic of Germany and the Government of the Kingdom of Cambodia so agree.

(3) This Agreement shall also apply if at a later date, the Government of the Federal Republic of Germany enables the Government of the Kingdom of Cambodia to obtain from the KfW financial contributions for the preparation of the projects specified in paragraph (1) above or for attendant measures necessary to implement and support the projects specified in paragraph (1) above.

Article 2

(1) The utilization of the amounts specified in Article 1 of this Agreement and the terms and conditions on which they are made available, as well as the procedure for awarding contracts, shall be governed by agreements to be
concluded between the KfW and the recipients of the financial contributions, which shall be subject to the laws and regulations applicable in the Federal Republic of Germany.

(2) The commitment to grant the amounts specified in Article 1 (1) 1 and 2 of this Agreement shall lapse if the relevant financing agreements are not concluded within a period of 8 years after the year in which the commitment was made. For the specified amounts the deadline shall be 31 December 2013.

(3) The Government of the Kingdom of Cambodia, where it is not itself the recipient of the financial contributions, shall guarantee any repayment due to the KfW under the financing agreements to be concluded pursuant to paragraph (1) above.

Article 3

The Government of the Kingdom of Cambodia shall exempt the KfW from all taxes and other public charges levied in the Kingdom of Cambodia in connection with the conclusion and implementation of the agreements referred to in Article 2 (1) of this Agreement.

Article 4

The Government of the Kingdom of Cambodia shall allow passengers and suppliers free choice of transport enterprises for such transportation by sea or air of persons and goods as results from the granting of the financial contributions, abstain from taking any measures that might exclude or impair the participation on equal terms of transport enterprises having their place of business in the Federal Republic of Germany and grant any necessary permits for the participation of such enterprises.

Article 5

This Agreement shall enter into force on the date of signature thereof.

DONE at Phnom Penh on 04^th October 2006 in duplicate in the German, Cambodian and English languages, all three texts being authentic. In case of divergent interpretations of the German and Cambodian texts, the English text shall prevail.