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Cairo, October 24, 2016

Excellency,
I have the honour to confirm the following understanding recently
reached between the representatives of the Government of Japan and of
the Government of the Arab Republic of Egypt concerning a Japanese
loan to be extended with a view to strengthening the friendly relations
and economic cooperation between the two countries and promoting the
development efforts of the Arab Republic of Egypt:
1. A loan in Japanese yen up to the amount of forty-nine billion four
hundred and nine million yen (Y49,409,000,000) (hereinafter
referred to as "the Loan") will be extended, in accordance with the
relevant laws and regulations of Japan, to the Government of the
Arab Republic of Egypt by the Japan International Cooperation
Agency (hereinafter referred to as "JICA") for the purpose of
implementing the Grand Egyptian Museum Construction Project (II)
(hereinafter referred to as "the Project").
2. (1) The Loan will be made available by a loan agreement to be
concluded between the Government of the Arab Republic of
Egypt and JICA. The terms and conditions of the Loan as well
as the procedures for its utilization will be governed by the
said loan agreement, within the scope of the present
understanding, which will contain, inter alia, the following
principles:
(a) The repayment period will be eighteen (18) years after the
grace period of seven (7) years;

HER EXCELLENCY
DR. SAHAR NASR
MINISTER OF INTERNATIONAL COOPERATION
OF THE ARAB REPUBLIC OF EGYPT
 WM uU v bF WOLd bd'

(b) The rate of interest will be one point four per cent (1.4%)
per annum;
(c) Notwithstanding sub-paragraph (b) above, where a part of
the Loan is made available to cover payments to
consultants of the Project, then the rate of interest of the
said part will be nought point nought one per cent (0.01%)
per annum;
(d) The disbursement period will be ten (10) years after the
date of coming into force of the said loan agreement; and
(e) A front-end fee will be imposed on the amount of the Loan
mentioned in paragraph 1 at the rate of nought point two
per cent (0.2%). The amount equivalent to nought point
one per cent (0.1%) of the amount of the Loan mentioned
in paragraph 1 will be repaid, provided that the
disbursement period mentioned in sub-paragraph (d) above
is not extended and that the disbursement is completed
within the said disbursement period.
(2) The loan agreement mentioned in sub-paragraph (1) above
will be concluded after JICA is satisfied with the feasibility
of the Project, including environmental consideration.
(3) The disbursement period mentioned in sub-paragraph (1)(d)
above may be extended with the consent of the authorities
concerned of the two Governments.
3. (1) The Loan will be made available to cover payments to be
made by the Egyptian executing agency to suppliers,
contractors and/or consultants of eligible source countries
under such contracts as may be entered into between them for
purchases of products and/or services required for the
implementation of the Project, provided that such purchases
are made in such eligible source countries for products
produced in and/or services supplied from those countries.
 WM uU v bF WOLd bd'

(2) The scope of eligible source countries mentioned in

sub-paragraph (1) above shall be agreed upon between the
authorities concerned of the two Governments.
4. The Government of the Arab Republic of Egypt shall ensure that
the products and/or services mentioned in sub-paragraph (1) of
paragraph 3 be procured in accordance with the guidelines for
procurement of JICA, which set forth, inter alia, the procedures of
international competitive bidding to be followed except where
such procedures are inapplicable or inappropriate.
5. With regard to the shipping and marine insurance of the products
purchased under the Loan, the Government of the Arab Republic
of Egypt shall refrain from imposing any restrictions that may
hinder fair and free competition among the shipping and marine
insurance companies.
6. Japanese nationals whose services may be required in the Arab
Republic of Egypt in connection with the supply of the products
and/or services mentioned in sub-paragraph (1) of paragraph 3
shall be accorded such facilities as may be necessary for their
entry into the Arab Republic of Egypt and stay therein for the
performance of their work.
7. (1) The Government of the Arab Republic of Egypt shall exempt
JICA from all fiscal levies and taxes imposed in the Arab
Republic of Egypt on and/or in connection with the Loan as
well as interest accruing therefrom.
 WM uU v bF WOLd bd'

(2) The Government of the Arab Republic of Egypt shall take

necessary measures to ensure that, except the personal
income tax and corporate tax payable by the suppliers,
contractors and/or consultants who carry out business in the
Arab Republic of Egypt, any taxes, which are easily
determinable under objective procurement processes, including
customs duties and value added tax on imported goods, final
products and/or services needed for the implementation of
the Project in the direct transaction between the main
suppliers, contractors and/or consultants and the Egyptian
executing agency, be paid by the Egyptian executing agency.
8. The Government of the Arab Republic of Egypt shall take necessary
measures to:
(a) ensure that the Loan be used properly and exclusively for the
Project;
(b) ensure and maintain the safety of persons engaged in the
implementation of the Project and of the general public of the
Arab Republic of Egypt in constructing the facilities under the
Loan and in using such facilities; and
(c) ensure that the facilities constructed under the Loan be
maintained and used properly and effectively for the purpose
prescribed in the present understanding.
9. The Government of the Arab Republic of Egypt shall, upon
request, furnish the Government of Japan and JICA with:
(a) information and data concerning the progress of the
implementation of the Project; and
(b) any other information related to the Project.
10. The two Governments shall consult with each other with respect
to any matter that may arise from or in connection with the present
understanding.
 WM uU v bF WOLd bd'

I have further the honour to propose that this Note and Your
Excellency's Note in reply confirming on behalf of the Government of
the Arab Republic of Egypt the foregoing understanding shall constitute
an agreement between the two Governments, which shall enter into force
on the date of receipt by the Government of Japan of the written
notification from the Government of the Arab Republic of Egypt of the
completion of necessary domestic procedures for the entry into force of
such agreement.
This Note is written in the Japanese, Arabic and English languages,
each text being equally authentic, and in case of any divergence in
interpretation, the English text shall prevail.
I avail myself of this opportunity to renew to Your Excellency the
assurance of my highest consideration.
Takehiro KAGAWA
Ambassador Extraordinary and
Plenipotentiary of Japan
to the Arab Republic of Egypt
 WM uU v bF WOLd bd'

Record of Discussions
In connection with the Exchange of Notes between the Government
of Japan and the Government of the Arab Republic of Egypt, dated
October,24, 2016, concerning a Japanese loan up to the amount of
forty-nine billion four hundred and nine million yen (49,409,000,000) to
be extended with a view to strengthening the friendly relations and
economic cooperation between the two countries and promoting the
development efforts of the Arab Republic of Egypt (hereinafter referred
to as "the Exchange of Notes"), the representatives of the Japanese
Delegation and of the Egyptian Delegation wish to record the following:
1. With regard to the loan mentioned in paragraph 1 of the Exchange
of Notes (hereinafter referred to as "the Loan"), the representative
of the Japanese Delegation stated that any financial requirements
of the project mentioned in paragraph 1 of the Exchange of Notes
(hereinafter referred to as "the Project") exceeding the amount of
the Loan under the loan agreement mentioned in sub-paragraph (1)
of paragraph 2 of the Exchange of Notes, will be duly met by the
Government of the Arab Republic of Egypt to assure the smooth
implementation of the Project.
2. With regard to paragraph 8 of the Exchange of Notes:
(a) the representatives of the Japanese Delegation arid the Egyptian
Delegation share the recognition that the necessary measures
will be taken to prevent any offer, gift or payment, consideration
or benefit which would be construed as a corrupt practice from
being made as an inducement to or reward for the award of the
contracts referred to in sub-paragraph (1) of paragraph 3 of the
Exchange of Notes; and
 WM uU v bF WOLd bd'

(b) the representative of the Japanese Delegation stated that the

Government of the Arab Republic of Egypt will take all
necessary measures to enable and facilitate ex-post
procurement audit to be carried out by independent auditors
which the Japan International Cooperation Agency
(hereinafter referred to as "JICA") will designate and to be
paid at JICA's expense, in order to ensure fairness and
competitiveness of the procurement process, in case where
JICA considers such audit to be necessary.
3. With regard to paragraph 9 of the Exchange of Notes, the representatives
of the Japanese Delegation and of the Egyptian Delegation stated
that the Government of Japan and the Government of the Arab
Republic of Egypt share the recognition that:
(a) other information mentioned in sub-paragraph (b) of the said
paragraph includes information on corrupt practice related to
the Project; and
(b) the Government o.f the Arab Republic of Egypt will ensure fair
treatment of sources of such information and data.
4. The representative of the Egyptian Delegation stated that the Egyptian
Delegation had no objection to the above-mentioned statements by
the Japanese Delegation,
Cairo, October 24, 2016

Takehiro KAGAWA Sahar NASR

Ambassador Extraordinary and Minister of International
Plenipotentiary of Japan Cooperation of the Arab
to the Arab Republic of Egypt Republic of Egypt
 WM uU v bF WOLd bd'

Cairo, October 24, 2016

No. E.10/7/2016
NOTE VERBALE
The Embassy of Japan in the Arab Republic of Egypt presents its
compliments to the Ministry of International Cooperation of the Arab
Republic of Egypt and has the honour to refer to sub-paragraph (2) of
paragraph 3 of the Exchange of Notes between the Government of Japan
and the Government of the Arab Republic of Egypt, dated October 24,
2016, concerning a Japanese loan to be extended with a view to
strengthening the friendly relations and economic cooperation between
the two countries and promoting the development efforts of the Arab
Republic of Egypt up to the amount of forty-nine billion four hundred
and nine million yen (49,409,000,000).
The Embassy has further the honour to propose that the scope of
eligible source countries mentioned in the said sub-paragraph of the said
Exchange of Notes will be all countries and areas.

Takehiro KAGAWA
Ambassador Extraordinary and
Plenipotentiary of Japan
to the Arab Republic of Egypt
 WM uU v bF WOLd bd'

Cairo, October 24, 2016

Excellency,
I have the honour to acknowledge the receipt of Your Excellency's
Note of today's date, which reads as follows:
"I have the honour to confirm the following understanding recently
reached between the representatives of the Government of Japan and of
the Government of the Arab Republic of Egypt concerning a Japanese
loan to be extended with a view to strengthening the friendly relations
and economic cooperation between the two countries and promoting the
development efforts of the Arab Republic of Egypt:
1. A loan in Japanese yen up to the amount of forty-nine billion four
hundred and nine million yen (49,409,000,000) (hereinafter
referred to as "the Loan") will be extended, in accordance with the
relevant laws and regulations of Japan, to the Government of the
Arab Republic of Egypt by the Japan International Cooperation
Agency (hereinafter referred to as "JICA") for the purpose of
implementing the Grand Egyptian Museum Construction Project
(II) (hereinafter referred to as "the Project").
2. (1) The Loan will be made available by a loan agreement to be
concluded between the Government of the Arab Republic of
Egypt and JICA. The terms and conditions of the Loan as well
as the procedures for its utilization will be governed by the said
loan agreement, within the scope of the present understanding,
which will contain, inter alia, the following principles:
(a) The repayment period will be eighteen (18) years after the
grace period of seven (7) years;
HIS EXCELLENCY
MR. TAKEHIRO KAGAWA
AMBASSODOR EXTRAORDINARY AND
PLENIPOTENTIARY OF JAPAN
TO THE ARAB REPUBLIC OF EGYPT
 WM uU v bF WOLd bd'

(b) The rate of interest will be one point four per cent (1.4%)
per annum;
(c) Notwithstanding sub-paragraph (b) above, where a part of
the Loan is made available to cover payments to
consultants of the Project, then the rate of interest of the
said part will be nought point nought one per cent (0.01%)
per annum;
(d) The disbursement period will be ten (10) years after the
date of coming into force of the said loan agreement; and
(e) A front-end fee will be imposed on the amount of the Loan
mentioned in paragraph 1 at the rate of nought point two
per cent (0.2%). The amount equivalent to nought point
one per cent (0.1%) of the amount of the Loan mentioned
in paragraph 1 will be repaid, provided that the disbursement
period mentioned in sub-paragraph (d) above is not extended
and that the disbursement is completed within the said
disbursement period.
(2) The loan agreement mentioned in sub-paragraph (1) above
will be concluded after JICA is satisfied with the feasibility
of the Project, including environmental consideration.
(3) The disbursement period mentioned in sub-paragraph (1)(d)
above may be extended with the consent of the authorities
concerned of the two Governments.
3. (1) The Loan will be made available to cover payments to be
made by the Egyptian executing agency to suppliers, contractors
and/or consultants of eligible source countries under such
contracts as may be entered into between them for purchases
of products and/or services required for the implementation of
the Project, provided that such purchases are made in such
eligible source countries for products produced in and/or
services supplied from those countries.
 WM uU v bF WOLd bd'

(2) The scope of eligible source countries mentioned in

sub-paragraph (1) above shall be agreed upon between the
authorities concerned of the two Governments.
4. The Government of the Arab Republic of Egypt shall ensure that
the products and/or services mentioned in sub-paragraph (1) of
paragraph 3 be procured in accordance with the guidelines for
procurement of JICA, which set forth, inter alia, the procedures of
international competitive bidding to be followed except where
such procedures are inapplicable or inappropriate.
5. With regard to the shipping and marine insurance of the products
purchased under the Loan, the Government of the Arab Republic
of Egypt shall refrain from imposing any restrictions that may
hinder fair and free competition among the shipping and marine
insurance companies.
6. Japanese nationals whose services may be required in the Arab
Republic of Egypt in connection with the supply of the products
and/or services mentioned in sub-paragraph (1) of paragraph 3
shall be accorded such facilities as may be necessary for their
entry into the Arab Republic of Egypt and stay therein for the
performance of their work.
7. (1) The Government of the Arab Republic of Egypt shall exempt
JICA from all fiscal levies and taxes imposed in the Arab
Republic of Egypt on and/or in connection with the Loan as
well as interest accruing therefrom.
 WM uU v bF WOLd bd'

(2) The Government of the Arab Republic of Egypt shall take

necessary measures to ensure that, except the personal
income tax and corporate tax payable by the suppliers,
contractors and/or consultants who carry out business in the
Arab Republic of Egypt, any taxes, which are easily
determinable under objective procurement processes,
including customs duties and value added tax on imported
goods, final products and/or services needed for the
implementation of the Project in the direct transaction
between the main suppliers, contractors and/or consultants
and the Egyptian executing agency, be paid by the Egyptian
executing agency.
8. The Government of the Arab Republic of Egypt shall take
necessary measures to:
(a) ensure that the Loan be used properly and exclusively for the
Project;
(b) ensure and maintain the safety of persons engaged in the
implementation of the Project and of the general public of the
Arab Republic of Egypt in constructing the facilities under the
Loan and in using such facilities; and
(c) ensure that the facilities constructed under the Loan be
maintained and used properly and effectively for the purpose
prescribed in the present understanding.
9. The Government of the Arab Republic of Egypt shall, upon
request, furnish the Government of Japan and JICA with:
(a) information and data concerning the progress of the
implementation of the Project; and
(b) any other information related to the Project.
10. The two Governments shall consult with each other with
respect to any matter that may arise from or in connection with
the present understanding.
 WM uU v bF WOLd bd'

I have further the honour to propose that this Note and Your
Excellency's Note in reply confirming on behalf of the Government of
the Arab Republic of Egypt the foregoing understanding shall constitute
an agreement between the two Governments, which shall enter into force
on the date of receipt by the Government of Japan of the written
notification from the Government of the Arab Republic of Egypt of the
completion of necessary domestic procedures for the entry into force of
such agreement.
This Note is written in the Japanese, Arabic and English languages,
each text being equally authentic, and in case of any divergence in
interpretation, the English text shall prevail."
I have further the honour to confirm on behalf 'of the Government of
the Arab Republic of Egypt the foregoing understanding and to agree that
Your Excellency's Note and this Note in reply shall constitute an
agreement between the two Governments, which shall enter into force on
the date of receipt by the Government of Japan of the written notification
from the Government of the Arab Republic of Egypt of the completion of
necessary domestic procedures for the entry into force of such
agreement.
This Note is written in the Arabic, Japanese and English languages,
each text being equally authentic, and in case of any divergence in
interpretation, the English text shall prevail.
I avail myself of this opportunity to renew to Your Excellency the
assurance of my
Sahar NASR
Minister of International Cooperation
of the Arab Republic of Egypt
 WM uU v bF WOLd bd'

Record of Discussions
In connection with the Exchange of Notes between the Government
of the flrab Republic of Egypt and the Government of Japan, dated
October, 24, 2016, concerning a Japanese loan up to the amount of
forty-nine billion four hundred and nine million yen (49,409,000,000) to
be extended with a view to strengthening the friendly relations and
economic cooperation between the two countries and promoting the
development efforts of the Arab Republic of Egypt (hereinafter referred
to as "the Exchange of Notes"), the representatives'of the Egyptian
Delegation and of the Japanese Delegation wish to record the following:
1. With regard to the loan mentioned in paragraph 1 of the Exchange
of Notes (hereinafter referred to as "the Loan"), the representative
of the Japanese Delegation stated that any financial requirements
of the project mentioned in paragraph 1 of the Exchange of Notes
(hereinafter referred to as "the Project") exceeding the amount of
the Loan under the loan agreement mentioned in sub-paragraph (1)
of paragraph 2 of the Exchange of Notes, will be duly met by the
Government of the Arab Republic of Egypt to assure the smooth
implementation of the Project.
2. With regard to paragraph 8 of the Exchange of Notes:
(a) the representatives of the Egyptian Delegation and the
Japanese Delegation share the recognition that the necessary
measures will be taken to prevent any offer, gift or payment,
consideration or benefit which would be construed as a
corrupt practice from being made as an inducement to or reward
for the award of the contracts referred to in sub-paragraph (!)
of paragraph 3 of the Exchange of Notes; and
 WM uU v bF WOLd bd'

(b) the representative of the Japanese Delegation stated that the

Government of the Arab Republic of Egypt will take all
necessary measures to enable and facilitate ex-post
procurement audit to be carried out by independent auditors
which the Japan International Cooperation Agency
{hereinafter referred to as "JICA") will designate and to be
paid at JICA's expense, in order to ensure fairness and
competitiveness of the procurement process, in case where
JICA considers such audit to be necessary.
3. With regard to paragraph 9 of the Exchange of Notes, the
representatives of the Egyptian Delegation and of the Japanese
Delegation stated that the Government of the Arab Republic of
Egypt and the Government of Japan share the recognition that:
(a) other information mentioned in sub-paragraph (b) of the said
paragraph includes information on corrupt practice related to
the Project; and
(b) the Government of the Arab Republic of Egypt will ensure fair
treatment of sources of such information and data.
4. The representative of the Egyptian Delegation stated that the
Egyptian Delegation had no objection to the above-mentioned
statements by the Japanese Delegation.
Cairo, October 24, 2016

Sahar NASR Takehiro KAGAWA

Minister of International Ambassador Extraordinary and
Cooperation of the Arab Plenipotentiary of Japan
Republic of Egypt to the Arab Republic of Egypt
 WM uU v bF WOLd bd'

Cairo, October 24, 2016

No. 12/7/2016
NOTE VERBALE
The Ministry of International Cooperation of the Arab Republic of
Egypt presents its compliments to the Embassy of Japan in the Arab
Republic of Egypt and has the honour to acknowledge the receipt of the
latter's Note Verbale No.E.107.2016 dated October 2-3, 2016.
The Ministry has further the honour to inform the Embassy that the
proposal set forth in the said Note Verbale is acceptable to the
Government of the Arab Republic of Egypt.

Sahar NASR
Minister of International Cooperation
of the Arab Republic of Egypt
 WM uU v bF WOLd bd'

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