Agreement Establishing Adb

The Bank has an international personality in its own right to fulfill its objective and the tasks entrusted to it. To this end, it can enter into agreements with members, third countries and other international organizations. To this end, the Bank enjoys, on the territory of each member, the status, immunities, immunities and privileges covered in this chapter. This agreement came into force on September 10, 1964. The Bank began operations on July 1, 1966. Its main task is to contribute to the economic and social progress of its regional Member States, individually and collectively. The African Development Bank is the group`s parent organization. The agreement creating the African Development Bank was adopted and opened for signature at the conference in Khartoum, Sudan, on 4 August 1963. In the event of a dispute between the bank and a former member or between the bank and a member after the bank`s activities have ceased, this dispute is referred to an arbitration tribunal of three arbitrators. Each party appoints an arbitrator and the two arbitrators so appointed appoint the third, who is the president. If, within 30 days of the arbitration application, a party has not appointed an arbitrator or if the third arbitrator has not been appointed within a fortnight of the appointment of two arbitrators, one of the parties may ask the President of the International Court of Justice or any other authority imposed by the regulations adopted by the Governing Council. to appoint an arbitrator.

The procedure is set by the arbitrators. However, the third arbitrator has full authority to resolve all procedural issues in the event of disagreement with them. A majority of arbitrators is sufficient to make a final and binding decision for the parties. Loans to the Bank under this article are paid by the Bank at an interest rate equal to the average interest rate paid by the Bank for its special fund borrowings for one year prior to the conclusion of the loan agreement.