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EUROPEAN COMMUNITY GRANT RELATED TO CREDIT NUMBER 3050-PAK; 
THE SECOND SOCIAL ACTION PROJECT TRUST FUND NUMBER TF021746
AGREEMENT dated June 13, 2000 between ISLAMIC REPUBLIC OF PAKISTAN (the 
Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) acting as 
Administrator (hereinafter referred to as the Administrator) of a Grant provided by 
the Commission of European Communities (the Commission), acting on behalf of the 
European Community (EC).
WHEREAS (A) the Association and the Commission have agreed to finance part of 
the Second Social Action Program Project (the Project) described in Schedule 2 to the 
Development Credit Agreement (DCA) dated May 28, 1998, between the Recipient and the 
Association.
WHEREAS the Administrator has agreed, on the basis, inter alia, of the foregoing 
to extend the EC Grant to the Recipient upon the terms and conditions hereinafter set 
forth.
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01.
The “General Conditions Applicable to Development Credit 
Agreements” of the Association, dated January 1, 1985, as amended through October 6, 
1999, with the modifications set forth below (the General Conditions) constitute an 
integral part of this Agreement:
(a) 
the term “Association”, whenever used in the General Conditions, other 
than in Section 6.02 (e) thereof, means the International Development Association 
acting as Administrator of the EC Grant pursuant to the provisions of the 
Administration Agreement, except that in Sections 6.02 and 7.01, the term 
“Association” shall also include the International Development Association acting in 
its own capacity;
(b)
the term “Borrower” wherever used in the General Conditions means the 
Recipient;
(c)
the term “Development Credit Agreement” whenever used in the General 
Conditions means this Agreement;
(d)
the term “Credit” whenever used in the General Conditions means the EC 
Grant described herein;
(e)
the term “Credit Account” whenever used in the General Conditions or in 
this Agreement means the Grant Account, an account opened by the Administrator in its 
books in the name of the Recipient to which the amount of the EC Grant is credited;
(f)
“Section 4.01 shall be modified to read:
“Withdrawals from the Grant Account shall be made in Euros, provided
however, that if the expenditures to be financed out of the proceeds of 
the EC Grant have been paid or are payable in another currency, the 
Administrator shall purchase such currency with the proceeds of such
withdrawal;”
(g)
Sections 2.01 (10), (11) and (14), 3.02, 3.03, 3.04, 3.05, 4.02, 4.03, 
4.04, 4.06, 
6.02(a) (i), 6.02(f), 6.05, 7.01, 8.01(a), 9.02, 12.01, 12.02, 12.03, 12.04 and 12.05 
of the General Conditions are deleted.
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Section 1.02. Unless the context otherwise requires, the several terms defined 
in the Preamble to this Agreement, and in the General Conditions have the respective 
meanings therein set forth, and the following additional term has the following 
meaning:
Section 2.02. The amount of the EC Grant may be withdrawn from the Grant Account 
in accordance with the provisions of Schedule 1 to the DCA for expenditures made (or 
if the Administrator shall so agree, to be made) in respect of the reasonable cost of 
works, goods and services required for the Project, and agreed to be financed out of 
the proceeds of the EC Grant.
Section 2.03. Except as the Administrator shall otherwise agree, procurement of 
the works, goods and services required for the Project and to be financed out of the 
proceeds of the EC Grant shall be procured in accordance with the provisions of 
Schedule 3 to the DCA.
Section 2.04. The Closing Date shall be June 30, 2002, or such later date as the 
Administrator shall establish.  The Administrator shall promptly notify the Recipient 
of such later date.
ARTICLE III
Execution of the Project
Section 3.01. Except as the Administrator shall otherwise agree, Articles III, 
IV and V, and Schedules 1, 2, 4 and 6 of the DCA are hereby incorporated into this 
Agreement with the same force and effect as if they were fully set forth herein.  All 
references in the said Articles and Schedules to the “Association” shall be as 
Administrator of the EC Grant, all references to the “DCA” shall be to this Agreement, 
and all references to the “Credit” to the EC Grant.
ARTICLE IV
Effectiveness; Termination: Representation
Section 4.01. This Agreement shall become effective upon signature by both 
parties.
Section 4.02. This Agreement and all obligations of the Recipient and the 
Administrator herein shall terminate on the date on which the DCA shall terminate in 
accordance with its terms.
Section 4.03. The representative designated in Section 7.01 of the DCA shall be 
the representative of the Recipient for purposes of Section 11.03 of the General 
Conditions.
Section 4.04. The addresses specified in Section 7.02 of the DCA shall be the 
addresses specified for the purposes of Section 11.01 of the General Conditions.
Section 4.05. All the provisions of this Agreement shall continue in full force 
and effect notwithstanding any cancellation or suspension under the DCA.
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names as 
of the day and year first above written.
ISLAMIC REPUBLIC OF PAKISTAN
By /s/ Nawid Ahsan
Secretary, Economic Affairs Division
INTERNATIONAL DEVELOPMENT ASSOCIATION 
   as Administrator of the EC Grant
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By /s/ John Wall
Country Director, Pakistan  
South Asia Region