East African Development Bank Act 1985

Chapter number: 

52

In-force: 

Yes

 

CHAPTER 52

THE EAST AFRICAN DEVELOPMENT BANK ACT.

Arrangement of Sections.
Section

Interpretation.

Financial provisions.

Certain provisions of the charter to have the force of law.

Schedule

Schedule Provisions of the charter annexed to the Treaty

of 1980, which are to have the force of law in Uganda.
CHAPTER 52 
THE EAST AFRICAN DEVELOPMENT BANK ACT.

Commencement: 24 May, 1985.

An Act to provide for the carrying out of the obligations of Uganda
under the treaty amending and reenacting the charter of the East
African Development Bank, and to provide for other matters related
thereto.

WHEREAS the Governments of the United Republic of Tanzania, the Republic of Uganda and the Republic of Kenya (hereafter referred to as the Parties) did in Article 21 of the Treaty for East African Co-operation of 6th June, 1967 (hereafter referred to as the Treaty of 1967), agree to establish a development bank known as the East African Development Bank (hereafter referred to as the bank) being set out in Annex VI of the Treaty of 1967;

AND WHEREAS the said Treaty of 1967 is no longer operative;

AND WHEREAS the parties, by a treaty signed on the 23rd July, 1980 (hereafter referred to as the Treaty of 1980), agreed to amend and reenact the charter of the bank;

AND WHEREAS it is expedient that Uganda should make provision for giving legal effect to certain provisions of the charter and fulfill her obligations thereunder: Now therefore,

BE IT ENACTED by the President and the National Assembly in this present Parliament assembled as follows—

1. Interpretation.

In this Act, unless the context otherwise requires, “Minister” means the Minister responsible for finance.

2. Financial provisions.

(1) There shall be charged on and paid out of the Consolidation Fund without further appropriation than this Act, all payments required to be made from time to time by the Government to the bank under the terms of the
Treaty of 1980.

For the purpose of providing any sums required for making payments under this section, the Minister may, on behalf of the Government, make such arrangements as are necessary, or raise loans by the creation and issue of securities bearing such rates of interest and subject to such conditions as repayment, redemption or otherwise as he or she thinks fit, and the principal and interest of the securities and the charges and expenses incurred in connection with their issue shall be charged on and issued out of the Consolidation Fund.

Any monies received by the Government from the bank or raised under subsection (2) shall be paid into and form part of the Consolidated Fund and shall be available in any manner in which the Consolidated Fund is available.

3. Certain provisions of the charter to have the force of law.

The provisions of the charter annexed to the Treaty of 1980 and set out in the Schedule to this Act have the force of law in Uganda.

SCHEDULE.

s. 3.

Provisions of the charter annexed to the Treaty of 1980, which are to have the force of law in Uganda.

CHAPTER VI—CURRENCIES.

Article 24—Use of Currencies.

1. The Member States may not maintain or impose any restriction on the holding or use by the Bank or by any recipient from the Bank for payments in any country of the following:—

currencies received by the Bank in payment of subscriptions to its capital stock;

currencies purchased with the currencies referred to in sub-paragraph (a) of this paragraph;

currencies obtained by the Bank by borrowing for inclusion in its

ordinary capital resources;

currencies received by the Bank in payment of principal, interest, dividends or other charges in respect of loans or investments made out of any of the funds referred to in sub-paragraphs (a), (b) and (c) of this paragraph or in payment of fees in respect of guarantees made by the Bank; and

currencies received from the Bank in distribution of the net income of the Bank in accordance with Article 20 of this Charter.

The Member States may not maintain or impose any restriction on the holding or use by the Bank or by any recipient from the Bank, for payments in any country, of currency received by the Bank which does not come within the provisions of paragraph 1 of this Article unless such currency forms part of the Special Funds of the Bank and its use is subject to special regulations.

The Member States may not maintain or impose any restriction on the holding or use by the Bank, for making amortization payments or for repurchasing in whole or in part the Bank’s own obligations, of currencies received by the Bank in repayment of direct loans made out of its ordinary capital resources.

Each Member State shall ensure, in respect of projects within its territories, that the currencies necessary to enable payments to be made to the Bank in accordance with the provisions of the contracts referred to in Article 15 of this Charter shall be made available in exchange for currency of the Member State concerned.

Article 25—Maintenance of Value of Currency Holdings.

1. Whenever the par value of the International Monetary Fund of the currency of a Member State is reduced or the foreign exchange value of the currency of a Member State has, in the opinion of the Bank, depreciated to a significant extent within the territory of that Member State, such Member State shall pay to the Bank within a reasonable time an additional amount of its own currency sufficient to maintain the value, as of the time of subscription, of the amount of the currency of such Member State paid in to the Bank by that Member State under sub-paragraph (b) of paragraph 3 of Article 5 of this Chapter, and currency furnished under the provisions of this paragraph, provided however, that the foregoing shall apply only so long as and to the extent that such currency shall not have been initially disbursed or
exchanged for another currency.

2. Whenever the par value of the International Monetary Fund of the currency of a Member State is increased, or the foreign exchange value of the currency of a State has, in the opinion of the Bank, appreciated to a significant extent within the territory of that Member State, the Bank shall return to such Member State within a reasonable time an amount of the currency of the Member State equal to the increase in the value of the amount of such currency to which the provisions of paragraph 1 of this Act are applicable.

CHAPTER X—STATUS, IMMUNITIES AND PRIVILEGES.

Article 43—Purpose of Chapter.

To enable the Bank effectively to fulfill its objectives and carry out the functions with which it is entrusted, the status, immunities, exemptions and privileges set forth in this Chapter shall be accorded to the Bank in the territories of the Member States.

Article 44—Legal Status.

The Bank shall possess full juridical personality and, in particular, full capacity: —

to contract;

to acquire, and dispose of, immovable and movable property; and

to institute legal proceedings.

Article 45—Judicial Proceedings.

Actions may be brought against the Bank in the territories of the Member States only in a court of competent jurisdiction in a Member State in which the Bank has an office, has appointed an agent for the purposes of accepting service or notice of process, or has issued or guaranteed securities.

No action shall be brought against the Bank by members or persons acting for or deriving claims from members. However members shall have recourse to such special procedures for the settlement of controversies between the Bank and its members as may be prescribed in this Charter, in the regulations of the Bank or in contracts entered into with the Bank.

Article 46—Immunity of Assets.

Property and other assets of the Bank wheresoever located and by whomsoever held, shall be immune from requisition, confiscation, expropriation or any other form of taking or foreclosure by executive or legislative action and premises used for the business of the Bank shall be immune from search.

The Bank shall prevent its premises from becoming refuges for fugitives from justice, or for persons subject to extradition, or persons avoiding service or legal process or a judicial proceeding.

Article 47—Immunity of Archives.

The archives of the Bank and all documents belonging to it or held by it, shall be inviolable wherever located.

Article 48—Freedom of Assets from Restriction.

To the extent necessary to carry out the objectives and functions of the Bank and subject to the provisions of this Charter, all property and other assets of the Bank shall be free from restrictions, regulations, controls and moratoria of any nature.

Article 49—Personal Immunities and Privileges.

1. All directors, alternates, officers and employees of the Bank:—

shall be immune from civil process with respect to acts performed by them in their official capacity; and

shall be accorded such immunities from immigration restrictions or alien registration, and where they are not citizens of a Member State, such facilities in relation to exchange regulations as are accorded by Member States to the representatives, officials and employees of comparable rank of other Member States.

2. Experts or consultants rendering services to the Bank shall be
accorded the same immunities and privileges as in paragraph 1 above unless
the Member State concerned determines otherwise.

Article 50—Exemption from Taxation.

The Bank shall be enabled to import free of customs duty any goods required for the purpose of its operations except such goods as are intended for sale, or are sold, to the public.

The Bank shall be exempted from income tax and stamp duty.

Article 52—Waiver of Immunities.

The Bank in its discretion may waive any of the privileges, immunities and exemptions conferred under this Chapter in any case or instance, in such manner and upon such conditions as it may determine to be appropriate in the best interest of the Bank.

The Bank shall take every measure to ensure that the privileges, immunities, exemptions and facilities conferred by this Charter are not abused and for this purpose shall establish such regulations as it may consider necessary and expedient.

History: Act 1/1985.

Cross References

East African Treaty of 1980.
Treaty for East African Cooperation of 1967.