Activities undertaken after the second session of the committee of nine on the work preparatory to the estabishment of the African Development Bank

UNITED NATIONS

ECONOMIC

SOCIAL COUNCIL AND

ECONOMIC COMMISSION FOR AFRICA Committee'of Nine on the

Preparatory Work for the African.Development Bank

Tunis, 16-21 March 1964 Agenda item 3 (b)

U S 3 V </

Distr.

LIMITED

s/cn,i4/adbi

16 April 19

Originals ENGLISH

ACTIVITIES UNDERTAKE AFTER THE SECOND SESSION OF THE COMMITTEE'OF KIKE ON THE (jORK PREPARATOET ',-- O THE ESTABLISHMENT OP.vTHS AFRICAN.DEVELOPMENT BAM

'■''''■ ■ ''-''"-'";- - ■■■ . -A Progress Report ::. . ■ -■ .-..-.■;. . .,

("by the Executive Secretary) ;: ;.,..;. _ ■..^,\-r

.1,, -. At its second, session held 'in'Addis"AbaTra from 14 to" 18' December., 196.3.5 t^e Committee of Nine /instructed" the secretariat t© (a> -Submit -.

a repprt of.i.ts. work to the sixth sessiorTof the Commission^ (b) follow

up the status of ratifications of. the Agreement Establishing the- African Development Banks and (c) continue with the work in hand and to extend

it to other subjects'provided for in resolution 3,<e .g..-,lpan an,d guarantee regulations^ arbitration.^;financial regulations^ the-problem of promotion ofsta'fff preli'miriary examination of the accounting and internal control?

ani1the financing of initial activities of the African Development Bank.

2.. A..progress report^on the activities of' the-Committee of .Niile-was

submitted to.the sixth session of the Commission. It gave - an- account ...,.of. the.work undertaken and decisions adopted at the first -and second

1/ Resolution 3 on the preparatory, work for the establishment" of .the

' 'African Development Bank,' 'adopted by the .Conference of- France/. fi

■■■,] Ministers at'its. final, plenary;, session on 4 August 19^3 at Khartoum.

2/ E/CN.14/260.

64-1702

Page 2

sessions of the Committee, respectively. This was also supplemented by an oral expose by the Deputy Executive Secretary on the situation

of signatures and ratifications of the ADB Agreement at the time of the

session.^ The Commission, after reviewing the progress .report... onrt£& ?

work of the Committee and taking note of the communication addres^a.^ _■

to it on the action taken by the Committee of Nine to expedite the,coding

into force of the Agreement establishing the African Development Bank ■ and to facilitate the early commencement of activities cf the Bank, invited all Signatory Governments to take appropriate steps to see to it that

ratification and deposit thereof should take place in the next few months.

Furthermore,.during the discussion, African governments which have expressed a desire to see- the headquarters of the Bank in their capitals, were

solicited to approach the pmblern in. a friendly manner^ all African govern ments were invited to■give dome thought to a possible increase in their respective contributions to xhe capital stock of the Bank and the wish was expressed that the Bank should become an efficient instrument of

development in Africa and lead African countries towards economic integra tion. At the,end of its session^ the Commission unanimously adopted resolution 96(Vl), the text of which is reproduced as Anr.ex II to this

report. ■ ■ . .,, .(

3* ' By 31 December 1963, thirty African States out of thirty-three , eligible for membership had signed the Agreement. These ares. Algeria.,

Burundi, Ca^eroun, Central African Republic, Congo (Brazzaville), Congo

(Leopoldville), Dahomey, Ethiopia, Ghana, Guinea, Ivory Coast, Kenya,.

Liberia, Libya, Mali, Mauritania,. Morocco, Niger, Nigeria, Rwanda,

Senegal., Sierra Leone ^Somalia, Sudan, Tanganyika, Togo, Tunisia, Uganda, United Arab Republic and. Upper Volta. Only the Governments of Chad?

Gabon and Madagascar did not sign. On the date of issue of this report, only five Signatory. Governments (Kenya, Sierra Leone, .Sudan,' Tanganyika and Uganda), whose-Initial -subscriptions in aggregate comprise 13.30' per cent of the initial authorized capital of the Bank, have ratified the

l/ The text appears as Annex I to this report

b/CN.14/aDB/35

Page 3

Agreement and deposited the corresponding instruments of ratification with the Secretary-General of the United Nations. Another eleven

Signatory Governments (Cameroun, Congo (Leopoldville), Ghana, Guinea, Ivory Coast, Mali, Morocco, Niger, Nigeria, Togo and Tunisia), whose

initial subscriptions in aggregate comprise 42-28 per cent of the initial authorized capital of the Bank, have ratified the Agreement "but not yet deposited the corresponding instruments of ratification, while six.other

Signatory Governments (Dahomey, Ethiopia, Liberias Somalia, Senegal and the United Ara"b Republic) have .notified the secretariat that they are.

in the process of obtaining parliamentary approval for ratification.

4. All deposits of instruments of ratification were communicated .by cable to the Signatory Governments. In a.ddition, on 21 February 1964?

the Executive Secretary despatched a note to all Signatory Governments informing them of the status of signatures and ratifications concerning the Agreement and calling their attention again to the conditions which

must be met in order to have the Agreement come into force, and to the

financial obligations connected with signature, ratification and acquisi tion of membership:in the Bank. The letter "is reproduced as Annex III to this report*

5. At its second session, the Committee, when, instructing the secretariat on further work to "be carried out3 requested the latter to give priority to items which would ensure the availability of the most urgently needed instruments and information for the Board of Governors, the Board of Directors and the President.

6. In accordance with the wish expressed by the Committee, the secretariat prepared;

(a) a draft report on general by-laws for the African Development Bank (e/cH.14/&I>b/37) which - after adoption by the Committee -

will be submitted for consideration and approval to the Board of Governors at its first meetings

E/CN.14/ADB/35

Page 4

(b) draft rules' of procedure of the Board of Governors of the African Development Bank (e/cN,14/ADB/37/Add.2) which, after

being agreed by the Committee, will be submitted for considera tion and adoption to the Board of Governors at its first

meeting?

(c) draft general regulations of the African Development Bank (B/CU,14/ADB/37Add.l) which, after being agreed by the

Committee, will be submitted for consideration and adoption to the Board of Governors at its first meeting;

(d) draft rules of procedure of the Board of Directors of the African Development Bank (E/CN.14/ADB/37/Add,3) which,

after being agreed by the Committee, will be submitted for consideration and adoption to the Board of Directors at its first meeting^

(e) a note, on the terms of service of Governors and Directors

..,. of the African Development Bank and their Alternates

(E/CH.14/ADB/37/Add.4). Since the Committee did not reach

a unanimous decision on this matter, it was not possible to draft any legal text on the subjeot. The present note

is a revision of the preceding one-' submitted to the Committee at its second session; it contains new thoughts elaborated in the light of the discussion held by the Committee;

(f) a draft headquarters agreement (e/CN.I4/ADB/38) which, after

consideration by the Committee, will be submitted to the Board of Governors at its first meeting;

(g) a draft report on the general structure of services of the

African Development Bank which, if adopted by the Committee,' will be transmitted for consideration to the first President

of the Banks

Page 5

(h) an outline on staff rules and regulations for the African .

Development Bank (E/C!T.14/ADB/26/Add.l) -which completes.the... .,

paper (E/CN.I4/ADB/26) previously submitted to the second, ...^

session of the Committee. Subsequently, this paper will be put in a more appropriate legal form and transmitted to the first President of the.Bankj

(i) an outline paper on loan regulations (e/CN.14/ADB/39) which .

discusses alternative approaches that may be talcen on. the ,, -,.,_.

subject. In the light of agreed guidance and instructions by the Committee, ..this paper will afterwards be redrafted in a more specific and definite form;

(j:) some proposals for the establishment of an .accounting, system, . and internal control for the African Development Bank .

(e/CH.14/£DB/4O) which, after consideration by the Committee

will be transmitted to the first President of the Bank upon, his appointment. .,

7. The Committee, at its second session, invited the seci*e'tariat to follow up proposals made by third parties for possible assistance to. ,- the Bank. In this connexion, the secretariat contacted governments and:

international institutions and organizations which had previously1'^signified

their willingness to extend technical and financial assistance' to the -

Bank.

8. The Government of Prance has formally informed the secretariat that the "Centre d1Etudes financieres? economiques et bancaires" of the "Caisse centrale de Co-operation economique" is ready to provide training for six staff members of the Bank.

9. The Government of the United Kingdom has formally informed the secretariat that it is prepared to provide training facilities for staff of the Bank and to finance the entire corresponding cost? and to provide ad hoc experts which the Bank may need for its operations? and, if necessary, make personnel available for secondment to the Bank.

E/CN.14/ADB/35'

Page 6

10. The secretariat continued to collect information on.particulars of qualified candidates for professional posts in the African Develop

ment Bank.

11. At its second session, the Committee approved "budget-expenditures

for the work preparatory to the establishment of the African Development Bank and instructed the Executive Secretary to call' the first two

instalments due "by African countries in accordance with the assessment

plan previously approved and adopted "by the Committee. ... .

12. On 13 January 1964, a note signed "by the Acting Chairman of the

second session of the Committee and by the Executive -Secretary was

addressed to all governments concerned giving them an appraisal of the status of contributions and inviting them to take action accordingly.

Subsequently, on 29 February 1964) another note was addressed to all

Signatory Governments reminding them that.the two first .instalments

towards contributions for the preparatory work were already due.

13. At the time of issue of this paper, the following countries have

paid their first instalments* Central African Republic, Ethiopia, Kenya, Morocco, Nigeria, Sudan, Tanganyika? the following countries

have.paid their second instalments: Ethiopia and Tanganyika? and, lastly,

Uganda, has, to date paid a portion of the first instalment. Total contribu

tions received.so far by the secretariat amount to. US$6636OO«

e/cn.14/adb/35, ,

Annex I

ANNEX I

COMMUNICATION TO THE SIXTH SESSION OF THE

' ECONOMIC COMMISSION FOR AFRICA ON THE PROGRESS OF WORK

/■.TOWARDS THE ESTABLISHMENT OF THE AFRICAN DEVELOPMENT BANK

- .: (Delivered by Mr. Francois N'Liba JPGuimbous,

Deputy Executive Secretary) . .

Mr. Chairman,

As you may "be aware, pursuant to resolution 52(lV) of this. Commission,

a Conference of African Finance Ministers was convened in Khartoum from 31 July to 4 August 1963. It was preceded by a preparatory meeting of

senior officials' and experts convened at the same place from 16 to 27

July 1963.

The Conference discussed a Draft Agreement Establishing the African Development Bank, adopted the final text and opened it for signature.

The final text of the Agreement was then deposited with the Secretary- General of the United Nations in New York where it remained open for

signature until 31 December 1963 by those African States which had not : ■

signed.it in Khartoum, ■■ . ■ -. . ■

On 31 December 1963? thirty African States out of thirty-three eligible for membership had signed the Agreement. These arei Algeria,

Burundi, Camer'ouri, Central African Republic > Congo (Brazzaville), Congo

(Leopoldville), Dahomey, Ethiopia, Ghana, Guinea, Ivory Coast, Kenya,

Liberia, Libya, Mali, Mauritania, Morocco, Niger, Nigeria, Rwanda,

Senegal, Sierra Leone, Somalia, Sudan, Tanganyika, Togo, Tunisia, Uganda,

United Arab Republic and Upper Volta. Only the Governments of Chad, Gabon and Madagascar did not sign. We do hope, however, that they will accede to the Bank once it has come into being, as provided for in the

Agreement, '. ■

The agreement is subject to ratification or acceptance by the

Signatory Governments. The corresponding instruments of ratification

must also be deposited with the Secretary-General of'the United Nations

E/CN.14/ADB/35

Annex I Page 2

in New York, thus enabling the agreement to enter into force. As provided for in the appropriate article of the agreement, this shall enter into force upon the deposit of instruments of ratification or acceptance by twelve Signatory Governments whose initial subscriptions, as set forth in Annex A to the Agreement, in aggregate comprise not less than sixty- five per cent of the authorized capital presently, allocated among the African States which were eligible for membership at the time of the Khartoum Conference. This means sixty-five per cent of 211,200,000

units of account (where one unit of account is equivalent to one US dollar),

i.e. 1'37,280,000 units of account.

To date3 we have "been informed that thirteen Signatory Governments

have ratified the Agreements namely Camerounj Congo (Leopoldville), Guinea,

Ivory Coasts Kenya, Mali,, Morocco, Niger, Sierra Leone, Sudan, Tanganyika, Togo and Uganda. Five of these countries, namely Kenya, Sierra Leone, . Sudan, Tanganyika and Uganda, have already deposited the corresponding instruments of ratification with the Secretary-General of the United Nations and paid the. first instalment of the subscription to the paid-up capital stock of the Bank; which is due before or on the date of deposit of the instrument of ratification. The Government of Ivory Coast has already paid its first instalment of the subscription to the paid-up capital stock of the Bank, although it has not yet deposited the instru ment of ratification. Another three Governments, namely Ghana, Nigeria and Tunisia, have received parliamentary approval for the ratification of the Agreement while the Governments of Dahomey, Ethiopia, Liberia,

Senegal, Somalia and the United Arab Republic have informed the secretariat that they are in the process of securing parliamentary approval for the ratification of the Agreement,

As soon as the Agreement enters into force., the Secretary-General of the United Nations, appointed trustee to that effect by virtue of resolution 2 adopted by the Conference of Finance Ministers, shall invite governments which have meanwhile acquired the status of members of the Bank to appoint a governor and shall call? within thirty days thereafter, the first meeting of the Board of Governors, The Board shall on that

occasion (a) elect the nine members of the Board of Directors which shall

Annex I

Page 3 ]

then appoint the first President of the Bank, (b) decide on the place where the principal office, of the Bank shall he located,, and-(c) make arrangements for the determination of the date on which the Bank.shall

oommence its operations. .

All deposits of instruments of ratification are communicated' by cable to all Signatory Governments. As soon as the number of deposits approaches the requirements for the entry into force of the Agreement, the secretariat will inform all African governments that E (entry.into.

foroe) Day is approaching.

At the time of the Khartoum meeting, the Conference of Finance Ministers entrusted a Committee of Kine Member Countries of this ■ Commission, namely Cameroun, Ethiopia, Guinea, Liberia, Mali, Nigeria, Sudan, Tanganyika and Tunisia, to carry out the work preparatory to the establishment of the Bank.

The,Committee met twice since then. Its first session was held in Kharot.um. on 3 August 1963? while its second session was held in -Addis Ababa from 14 to 18 December 1963.

• At its first session the Committee outlined an immediate programme

of work. This envisaged* (a) action to be taken by the secretariat to , follow up the progress in the signing of the Agreement and its

subsequent ratification; (b) the collection of basic material for the preparation of drafts concerning the headquarters agreement, general- by-laws, staff rules and regulations, loan and guarantee regulations, arbitration procedures, as well as other legal instruments and administra tive -arrangements which could promote or advance the early establishment

of the Bank; and (c) consideration of technical assistance schemes and appropriate working relationships which could be established between the.Bank and other international, regional or national organizations

and institutions, as called for under the operative paragraphs of

resolution 3 on the preparatory work for the establishment of the

: African Development Bank adopted by the Conference of Finance "Ministers

in Khaxtoum.

Annex I

//

Page 4

At its second session* the Committee reviewed (a) a progress report

on the activities undertaken "by the secretariat after the Conference .

of Finance Ministers^ and (t>) considered the papers .submitted by the ...

Executive Secretary on (i) proposals for drafting general by-laws for the Bank, (ii). guiding principles and main points for drafting the

headquarters agreement of the Bank, (iii) proposals on the general Structure of the services of the Bank, and (iv) proposals for drafting staff rules and regulations for the Bank, It discussed also (a) the

question of making arrangements for possible co-operation between the Bank and other international and regional organizations and Institutions^

and (b) the problem of opening a register for qualified candidates for the staff of the future Bank.

The Committee then requested the secretariat (a) to proceed with

the drafting of legal text for the headquarters agreement of the Bank^

(b) to prepare reports for submission to the governing bodies of the Bank on the general" internal regulations for the Bank, the rules of procedure of the Board of Governors and the rules of procedure of the-

Board of Directors of the future Bankj and (c) to continue with its1 ;fork

in hand and extend it to other subjects provided for in resolution 3 adopted by the Conference of Finance Ministers. .

The Committee also approved a budget for US$2OO;OOO for expenditures which the Executive Secretary may incur in carrying out activities pre paratory to the establishment of the Bank, In this connexion, the Committee authorized the Executive Secretary to call for the first two instalments of contributions pledged by African States at the Conference of Finance Ministers, and asked him to report on this subject. To date,

only the Governments of Cameroun; Central African Republic, Ethiopia,

Kenya, Morocco, Sudan and Tanganyika have paid their first instalments which were immediately due after the Conference "of Finance Ministers;

The Governments of Ethiopia and Tanganyika have paid the second- instalment which was due on 1 February 1964, and the Governments of Burundi and'- Uganda have notified the secretariat thax their contributions are forth

coming. In aggregate, the secretariat has received US.;y5S j 500'only against an appropriation of US^200,000 approved by the Committee of ITine„

E/CN.14/ADB/35

Annex I

5

At the end of its second session, the Committee decided to meet again towards the end of March 1964 and, in the event of the entry into force of the Agreement, shortly "before the first meeting of the Board of Governors of the Bank "which would "be convened "by the Secretary-General

of the United Nations.

The third session of the Committee of Nine is now scheduled to "be held, at the invitation of the Tunisian Government, in Tunis from 16

to 21 March 1964c As requested "by the Committee, member countries of the Commission which have meanwhile ratified the Agreement will also

be invited to attend and participate in the work of the Committee.

Mr. Chairmanj the project to establish an African Development Bank which had its origin in a resolution adopted "by the All-African People's

Conference held in Tunis in January I960 is now becoming a reality.

In less than two years the project was tested, discussed and

approved by the African governments. It was at its fourth session that this Commission constituted the Committee of Nine for the purpose of studying the feasibility of establishing such a bank and drafting the

corresponding agreement. Now, at the sixth session of the Commission, we can proudly announce that good work has been done and Africa has now

its own development bank*

Undoubtedly it is very rewarding to notice the spirit of co-operation and mutual understanding which has prevailed among all delegations in the building up of suoh an undertaking. It may therefore be expected that equal and, perhaps? closer co-operation and goodwill will reign in the Board of Governors of the future Bank,

We would like to end this report to the Commission by expressing

the wish that at its next session the Commission may welcome the first

President of the African Development Bank in this house.

Annex II

AHNEX II ■ ■ : ..-..• ■:.•-■■

1 : ' AFRICAN DEVELOPMENT' BM.K . ■ . .. ..-. -,-■•.

Resolution 96(Vl) adopted by the Commission at its 113-th Plenary,

on 28 February 1964 .

The Economic Commission for Africa,

Determined to hasten economic and social, development in Africa, "by means.of. concerted action among African States,

Considering the necessity of accelerating-the establishment of .,-.

institutions which, "by reason of their.nature and functions, may serve to promote harmonious co-operation in financing development in the region,

Realizing the importance of making the economies of the African countries increasingly complementary in order to "bring about an orderly development of their industries, together with an expansion of their foreign trade,

Recognizing that the establishment of the African Development Bank may usefully serve these ends,

Recalling the desire expressed by the African Heads of States at their Conference in May 1963 in Addis Ababa for "the rapid establish ment of the African Development Bank",

Having noted with satisfaction that the Agreement establishing the African Development Bank was adopted by a Conference of Finance Ministers,

which met in accordance with its resolution 52(iv) of 1 March 1962, and

has now been signed by thirty countries out of the thirty-three eligible for membership,

Having considered the Executive Secretary1s progress report on the work of the Committee of Nine appointed to prepare the establishment of the Bank,

1, Urges all signatory Governments to expedite the ratification of the Agreement and deposit of the instruments of ratification with the

E/CH.14/ADB/35

Annex II Page 2

Secretary-General of the United Nations thus making it possible for the Agreement to come into force and, consequently, for the Bank to begin

its activities without delay; '■ ■ ■■

2. Expresses its gratitude to the Committee of Hine for its work and to the Executive Secretary and his secretariat for the. active

part taken "by them and for their assistance to the Committee in prepar ing the rapid establishment of the Bank|

3* Invites Member countries to pay their contributions already due to the Executive Secretary for the preparatory work as pledged at the time of the Conference of Finance liinisters in Khartoum.

Annex III

. ANNEX III

LETTER ADDRESSED TO SIGNATORY GOVERNMENTS OB" 21 FEBRUARY 1?64

At the request of the Committee of Fine entrusted "by the- Conference of Ministers of Finance to carry out the preparatory work for the establish ment of the African Development Bank, I have the honour to inform you ofs

(a) the status of signature and ratification of the Agreement Establishing:- the African Development Bankj ("b) the financial. obligations of member

countries? and (c) a tentative time-table for the entry into force of

the Agreement. .•■■'..

You may recall that the Agreement was adopted in Khartoum by the Conference of Ministers of Finance and opened for signature on 4 August

1963- Subsequently, pursuant to paragraph (l) of Article 63 of that

Agreement, it was deposited, on 4 September 1963? with.the Secretary- General 'of the United Nations, appointed Depositary, where it remained open until 31' December 1963 for signature by the Governments of States -.■.";

whose names.were set forth in Annex A to the Agreement and which had not signed the Agreement at -the time of. the; Conference in Khartoum. .■■ ■■:-. ;■■:,■.

On 31 December 1963» thirty African States out of the thirty-three L eligible for membership had signed the Agreement. The States which: have' signed the Agreement ares Algeria, Burundi, Cameroun, Central African

Republic, Congo (Brazzaville), Congo (Leopoldville), Dahomey, Ethiopia,

Ghana, Guinea, Ivory Coast, Kenya, Liberia, Libya, Mali, Mauritania,

Morocco, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, Somalia, Sudan, '

Tanganyika, Togo, Tunisia, Uganda, United Arab Republic and Upper Volta. • The Governments of Chad and Gabon have notified the secretariat that,' because of some financial difficulties, they could not sign the Agreement within the deadline indicated therein and that they would 'consider 'their1

accession after the Bank came into being. There is no information as to the reason why the Government' of Madagascar has not signed the Agreement,

Annex III Page 2

In accordance with paragraph (l) (a) of Article 64 of the Agreement,

the Agreement is subject to ratification or acceptance by the Signatories.

Instruments of ratification or acceptance should "be deposited by the Signatory Governments with the Secretary-General of the United Nations

in New York before 1 July 1965. As of 31 January 1964> the Governments'

of Sudan, Tanganyika and Uganda had ratified the Agreement and deposited the corresponding instruments of ratification with the Secretary-General

of the United Nations. The Governments of-Cameroun, Congo (Leopoldville),

Guinea and Kenya had ratified the Agreement, but not yet deposited the ..

instruments of ratification. The Governments of Ghana, Nigeria and."

Tunisia had obtained parliamentary approval for the ratification, while the Governments of Dahomey, Ethiopia, Liberia, Mali, Morocco, * Niger,■.<

Somalia, Senegal, Togo and the United Arab Republic had informed the secretariat that they were in the process of obtaining parliamentary

approval. ■ . . ^

It may be recalled that the African Development Bank cannot come into being unless its constitutive Agreement enters into force. And this shall, in accordance with its Article 65> enter into force upon the deposit of instruments of ratification or acceptance by twelve Signatory Governments whose initial subscriptions, as set forth in Annex A to the Agreement, in aggregate comprise not less than sixty-five per cent of the authorized capital stock of the Bank. , This, however, shall be understood to refer to such authorized capital stock of the Bank which is presently_ allocated among States which may acquire member

ship, i.e.. equivalent to 211.2 million units of account. The three oountries which have already deposited instruments of ratification in aggregate account for 9*99 P©*1 cent of the authorized capital stock of the Bank as defined .hereinbefore.; As soon as the other four countries which have already ratified will have deposited the corresponding instru ments, they will, together with the previous three countries, account

for 21.54 per cent. This figure will rise to 42.28 per cent as soon as

the other three countries which have received parliamentary approval will have ratified and deposited the corresponding instruments. The

E/CN,14/ADB/35

Annex III Page 3

twenty governments which have either ratified and deposited, or ratified and not deposited, or obtained parliamentary approval, or are in the process of obtaining parliamentary approval> will in aggregate account for 161,30 million units of account corresponding to 76,40 per cent of the authorised capital stock of the Bank as defined hereinbefore. In order to facilitate the assessing of the situation,.Tables A and B are

annexed to this letter. '■

It may .aleo "be.recalled that, in confornity with Article 66 of the Agreement, as soon as this enters into force, the Secretary-General of the United Nations - appointed Trustee of the Agreement by "Virtue'of . resolution.2 adopted by the Conference of Ministers of Finance in Khartoum - will, call> within thirty days thereafter, the first meeting of the.-Board of Governorso The Board shall then elect nine directors of the Bank in accordance with paragraph (l) of Article 33 of the Agreement5 select the location of the principal office of the Bank, in accordance with paragraphs (l) and (2) of Article 39 of the Agreement} and make arrange-, ments for the determination of the date on which the Bank shall commence its operations au provided for in paragraph {'?_) (b) of Article 66 of the Agreement, Only Signatory States which, w that time, have acquired membership may appoint, a governor to attend, and participate in, the first meeting of the 3csurd. Membership is acquired by the deposit of the instrument &? ratification or acceptance with the Secretary-General of the United Nations by the Signatory Governments.

Signature, ratification, and acquisition of membership to the Bank

call for some financial obligations on the part of the governments concerned.

Thus, in accordance with paragraph (l) fb) of Article 7 of the Agreement, each Signatory Government is under the obligation to pays (a) five per cent of the amount initially subscribed to the paid-up capital stock

of the Bank on or before the date of deposit cf the instrument of ratifica

tion or acceptance of the Agreement; (b) thirty-five per cent of the

amount initially subscribed to the paid-up capital stock of the Bank

on the lcz\: da; of a :> ...-iod 01 ::ix ifioirV-.G frcn the ?ntry into

e/ck.14/adb/35

Annex III Page 4

force of the Agreement or on the day of the deposit of the instrument

of ratification (if the deposit is made after the entry into force of the Agreement), whichever is the later date? (c) fifteen per cent of

the amount initially subscribed to the paid-up capital stock of the Bank on the last day of a period of eighteen months from the entry into force

of the Agreement! and (d) three remaining payments corresponding each

one to fifteen per cent of the amount initially subscribed to the paid- up capital stock of the Bank on the last day of a period of thirty, forty^two or fifty-four months, respectively, from the entry into force

of the Agreement, ■

In view of the progress made "by Signatory Governments towards ratification of the Agreement, it may be expected that it will enter into force either around the end.of the second quarter or the "beginning of' "the third quarter of this calendar year. This means that the six instalments for the payment of the amount initially subscribed to the paid-up capital stock of the Bank by a member which acquires membership

in accordance with paragraph (l) of Article 64 of the Agreement may

become due as indicated in the time-table attached hereto as Table D.

In order to assist Signatory Governments in planning their budgetary appropriations in relation to their respective subscriptions. Table C is annexed to this letter.

Accept, Sir, the assurances of my highest consideration.

R.K.A. Gardiner Executive Secretary

Annex IIX Page 5 ■

TABLE A ; . ; ;.-...

■INITIAL -SOBSCRITEIOJTS TO, THE. AUTHORIZED CAPITA STOCK 0? THE BANK

Members

Paid-

up

shares

1,225 60 200 50 80 75 650 70

515

65

640

125

300 300 130

95

2 60 115

55 755

80 1,205 60

275

Call able shares

1,225 60 200 50 80

75

650 70

515 . 65

640 125 300 300 130

95

260 115 55

755

80 1,205 60

275

Total Subscrip

tion (in

million units of

account)

24.50

1.20 4.00 1.00 1/60 1.50 13.00 1.40 10.30 1.30 12.80 2.50 6.00 6.00 2.60 1.90 5.20 2.30 1.10 15.10 1.60 24.10 1.20 5.50

Percent age of

the total

11.6 0.6

■ r.9

" 0.5

* 0.7

"■'0.7

* 6.2 ' 0.7

4.9

0.6 6.1 1.2 2.8 2.8 1.2

0.9 2-5 1.1 0.5 7-1 0.7 11.4 0.6 2.6 1.

2.

3.

4.

5.

6.

7.

"B7"

'4. ■

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

Algeria Burundi Caraeroun

Central African Republic Chad .. .

Congo, t(Brazzaville) Congo _(Leopoldville)

Dahomey Ethiopian.

Ga"bon Ghana Guinea Ivory Coast Kenya

Liberia Libya Madagascar Mali

Mauritania Morocco Niger Nigeria Rwanda Senegal

E/CN.14/ADB/35

Annex III Page 6

TABLE A. (continued)

Members

Paid- up shares

-IO5 -- 110

505 265 50 345 230 1,500

65

Call able shares

1Q.5..., 110 505 265 50

345

2 30 1,500

65

Total

"Subscrip

tion (in

million units of

account)

. 2.10 „ 2.20 10.10 5-30 1.00 6.90 4.60 30.00 1.30

211.2CT*

Percent age of

the total

L«°

1.0

•4.8

"2.5

" 0.5

■ 3-3

" 2.2 '14.2

" 0.6

100.0 25 • Sierra Leone

2.6.. Somalia 27. Sudan 28. Tanganyika

29. Togo .30. Tunisia . 31. Uganda

32. UAE (Egypt)

33. Upper Volta

Total

E/CN.14/.ADB/35. ,.

Annex III ,, Page 7

TABLE B

(UA = Unit of Account corresponding to 1 ITS dollar)

Initial capital stock of the.3ank Paid-up capital stock of the Bank Minimum subscriptions .required.for

the entry into force of the Agreement

211,200,000 UA 155,600,000 UA

137,280,000 UA

Total sub- Aggregate Aggregate Percent- scription sub-total total age of

(000, 000 (000,000 (000,000 the

UA) UA) UA) total

Countries which have ratified the Agreement and deposited the instrument of ratification

1. Sudan 10.10

2. Tanganyika . 5 • 30

3. Uganda .4.60

Countries which have ratified the Agreement, but: not yet deposited the instrument of ratification

1. Cameroun 4.00

2. Congo (Leopoldville) 13-00

3. Guinea 2.5O

4. Kenya 6,00

Countries which have received parliamentary approval for ratifi cation of the Agreement

1. Ghana 12.80

2. Nigeria 24.10

3. Tunisia 6.90

20.00 9-99

21.54

43.80 42.28

Annex III

Page 8

TABLE B (Continued)

Total sub scription

(000.000 UA)

Aggregate

sub-total (000.000

UA)

Aggregate total

(OOQ.OOO;

UA)

Percent age ;of■'•

.the;...

total

Countries which are in -the process 'of ■obfainin^-p'arliamentary1'"approval

for ratification of the Agreement

1. Dahomey . . ■ .

3« Liberia 4. Mali 5. Morocco 6. Niger 7- Somalia

8. Senegal

9. Togo

10. United Arab Republic

I-.4O

2.60 2.30 15.10

■ -1.60 2.20 5-50 1.00

30.00 ,72.00

161.3Q . .76,40.

1.

2.

3.

4.

5.

6,

7.

8.

9.

10.

n.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23, 24.

MEMBER

Algeria Burundi Cameroun

Central African Republic

Chad

Congo (Brazzaville)

E/CH.U/ADB/35

Annex III Page 9

(in thousand First instalment

due on ty-four

date de^ter entry

instrunrce Of

ratifies

617.5

30.0 l°0.0

25.o 40.0 32.5 Congo (Leopoldville) 32^0

Dahomey Ethiopia Gabon Ghana Guinea Ivory Coast Kenya

Liberia Libya Madagascar Mali

Mauritania Morocco Niger Kige' R-

3)5.0 25'2.5 3<7-5 32^.0

%.5

I5<;o.o 6i5.o 4^2.5 13^o.O 5>2.5 2-62.5 .3^2.5 4^0.0

units of account)

TOTAL

12,250.0 600. • 2,000.0

500.0 800.0 750.0 6,500,0 700.0 5,150.0 650.0 6,400.0 1,250.0 3,000,0 3,000.0

'1,300.0

950-0 2,600,0 1,150.0 550.0 7,550.0 800.0

- - --- -

e/cn.14/adb/35

Annex III Page 10

TABLE D

Assuming the Agreement Establishing the African development Bank will enter into force either around the end of the second quarter or

the "beginning of the third quarter of 19^4j payments of subscriptions to the authorized capital stock of the Bank "by governments which have meanwhile acquired membership may become due on;

Second Instalment

Third Instalment

Fourth Instalment

Fifth Instalment

Sixth Instalment

Jatir - Feb* Jan. - Feb0 Jan, - Feb = Jan, - Feb. Jan, - Feb,

1965 1966 1967 1968 1969

Uote: First instalment is due .before or on the date of deposit of the instrument of ratification.