Liberia - Education Project : Credit 0305 - Credit Agreement - Conformed

"72 z CONFORMED COPY CREDIT NUMBER 305 LBR Development Credit Agreement (Education Project) BETWEEN THE REPUBLIC OF LIBERIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MAY 17, 1972 CONFORMED COPY CREDIT NUMBER 305 LBR Development Credit Agreement (Education Project) BETWEEN THE REPUBLIC OF LIBERIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED MAY 17, 1972 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated May 17, 1972, between THE REPUBLIC OF LIBERIA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated January 31, 1969, with the same force and effect as if they were fully set forth herein, subject, however, to the addition of the words "and annexes thereto" after the word "schedules" in Section 2.01. 3. thereof, to the deletion of Sections 5.01 and 6.02 (h) thereof and to the renumbering of Section 6.02 (i) into 6.02 (h) thereof (said General Conditions Applicable to Development Credit Agreements of the Association, as so modified, being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the term "Project Unit" means the unit referred to in Section 3.01 (b) of this Agreement. ARTICLE II The Credit Section 2.01. (a) The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to seven million two hundred thousand dollars ($7,200,000). (b) (i) The Borrower shall use its best endeavors to obtain assistance from sources other than the Association to finance the specialist services specified in paragraph A of Annex 2 to Schedule 2 hereto and the fellowships specified in paragraph B thereof. 4 (ii) In the event that the Borrower shall obtain such assistance, the Association shall cancel $29,750 of the Credit for each man-year of speciali,t services and $4,250 for each man-year of fellowships for which such assistance shall have been respectively so obtained and the amount allocated to Technical Assistance under Category V of the table set out in paragraph I of Schedule I hereto shall be reduced accordingly. Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule shall be amended from time to time, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods aid services required for the Project described in Schedule 2 to this Agreement and to be financed under the Development Credit Agreement; provided, however, that, except as the Association shall otherwise agree, no withdrawal shall be made on account of expenditures in the territories of any country which is not a member of the Bank (other than Switzerland) or for goods produced in, or services supplied from, such territories. Section 2.03. Except as the Association shall otherwise agree, the goods and services (other than services of consultants) required for the Project and to be financed out of the proceeds of the Credit, shall be procured on the basis of international competition under procedures consistent with the Guidelines for Procurement under World Bank Loans and IDA Credits, published by the Bank in August 1969, and revised in May 1971, and in accordance with, and subject to, the provisions set forth in Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be March 1, 1978 or such other date as shall be agreed between the Borrower and the Association. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semi-annually on February 15 and August 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each February 15 and August 15 commencing August 15, 1982 and ending February 15, 2022, each installment to and including the installment payable on February 15, 1992 to be one-half 5 of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project through its Ministry of Education with due diligence and efficiency and in conformity with sound administrative, financial, engineering and educational practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) (i) For the purposes of overall management and coordination in the carrying out of the Project, the Boirower shall until the Closing Date establish and maintain in its Ministry of Education a Project Unit having the responsibilities and powers specified in Schedule 4 to this Agreement. The Project Unit shall be composed of a Project Director, Deputy Project Director, Project Architect, Project Accountant and Project Procurement Specialist, each full-time and acceptable to the Association. (ii) The Borrower shall cause the office of Project Architect, Project Accountant and Project Procurement Specialist to be filled as soon as reasonably practicable and, in any event, by not later than December 31, 1972. (iii) The Borrower shall provide the Project Unit promptly as needed with such qualified and experienced supporting staff, facilities and other resources as shall be required for the efficient operation thereof. (c) The Borrower shall cause the Department of the Treasury, the Ministries of Public Works, of Agriculture and of Planning and Economic Affairs, the Bureau of the Budget and any other of its instrumentalities and agencies as shall be affected by or concerned with the Project, or any part thereof, to provide such support, cooperation or other assistance as shall be necessary or desirable in connection with the carrying out of the Project and shall cause the Deputy 6 Minister of the said Department and Ministries and the equivalent officers of the said Bureau and other agencies and instrumentalities to be available for consultation with the Project Director for the purpose of providing such assistance. Section 3.02. (a) (i) In order to assist the Borrower in the preparation of plans, specifications and bidding documents for the construction work included in Part A of the Project and in the supervision of such work, the Borrower shall employ consultants acceptable to the Association upon terms and conditions satisfactory to the Association. (ii) The Borrower shall submit such plans and specifications, promptly upon their preparation, to the Association for approval. (b) (i) In appointing the Project Director and in carrying out Part B of the Project, the Borrower shall appoint qualified and experienced persons acceptable to the Association upon terms and conditions (including without limitation, as to terms of reference, timing and duration) satisfactory to the Association. (ii) The Borrower shall, subject to sub-section (c) hereof, assign to each of the specialists referred to in paragraph A of Annex 2 to Schedule 2 of this Agreement one suitably qualified person to serve as his full-time counterpart until the Closing Date or such earlier date as the Borrower and the Association shall agree. Each of the counterparts to the specialists referred to in sub-paragraphs (1) through (5) of paragraph A shall be assigned not later than the date upon which the specialist to whom such assignment is made commences performance of his duties hereunder. (c) Not later than June 30, 1974 the Borrower and the Association shall consult together to review the performance by the officers and counterpart staff comprising the Project Unit in the carrying out of their functions hereunder. If the Borrower and the Association shall, in the light of such review, so agree, the Borrower shall be entitled to: (i) replace the Deputy Project Director, Project Architect, Project Accountant and Project Procurement Specialist, respectively, by the counterpart assigned to such officer in accordance with sub-section (b) (ii) of this Section; and (ii) appoint as Adviser to the Deputy Project Director, Project Architect, Project Accountant and Project Procurement Specialist, respectively, the person so replaced. 7 Section 3.03. In carrying out Part A of the Project, the Borrower shall employ contractors acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.04. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (b) Except as the Association shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. Section 3.05. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the reports, contract documents, construction and procurement schedules and work schedules, for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower: (i) shall maintain records adequate to record the progress of the Project (including the cost thereof) and to identify the goods and services financed out of the proceeds of the Credit, and to disclose the use thereof in the Project; (ii) shall enable the Association's representatives to inspect the Project, the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association all such information as the Association shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. Section 3.06. The Borrower shall take all such action as shall be necessary to acquire not later than August 31, 1972 all such land and rights in respect of land as shall be required for carrying out the Project and shall furnish to the Association, promptly after such acquisition, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. Section 3.07. The Borrower shall cause the College of Agriculture and Forestry, University of Liberia, Fendell, included in Part A of the Project (the College) to be located immediately adjacent to the existing university farm at Fendell and shall prepare plans and specifications for the College accordingly. 8 ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained sound accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. The Borrower shall endeavor to utilize the educational institutions included in the Project at their designed capacity and shall operate the same so as to promote the educational objectives of the Borrower. Section 4.03. The Borrower shall cause the effective utilization, operation, maintenance and repair of the educational institutions included in the Project and the equipment thereat and (save as provided for under the Credit) the staffing and equipping thereof and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 4.04. (a) The Borrower shall establish on terms and conditions satisfactory to the Association two three-year technical teacher training courses for eighteen suitably qualified trainees each, commencing not later than February 28, 1973 and February 28, 1974, respectively, for teachers at the Multilateral Schools and at certain otlr institutions of the Borrower. (b) In particular, not later than February 28, 1973 the Borrower shall: (i) provide for the use by first year trainees of the facilities of the Vocational Training Center at Yekepa included in Part A of the Project; (ii) make arrangements for the provision of industrial in-service training to second year trainees; (iii) make arrangements for the provision of teaching facilities for third year trainees at the William V. S. Tubman High School included in Part A of this Project; and (iv) establish and make provision for the financing of three-year scholarships for not less than 36 trainees, covering the full cost of their tuition, accommodation and transportation. 9 in each case on terms and conditions satisfactory to the Association. (c) Not later than February 28, 1976, the Borrower shall make arrangements satisfactory to the Association for the continuance of the technical teacher training courses, if appropriate, or for the alternative use of the equipment at the said Vocational Training Center and William V. S. Tubman High School financed out of the proceeds of the Credit. Section 4.05. (a) The Borrower shall not later than February 28, 1973 formulate and put into effect a curriculum satisfactory to the Association for the Voinjama Multilateral High School and the Zwedru Multilateral High School included in Part A of the Project (the Multilateral Schools). (b) (i) The Borrower shall cause each of the technical teachers required for the Multilateral Schools to be designated not later than February 28, 1973 and to be assigned to one of the teacher training courses to be established in accordance with Section 4.04 (a) hereof. (ii) The Borrower shall cause each of the non-technical teachers required for the Multilateral Schools to be designated not later than July 31, 1974 and shall ensure their training to an appropriate level of qualification before the taking up of their positions at the Multilateral Schools. (c) As from the commencement of the first school year respectively of the said Voinjama Multilateral High School and Zwedru Multilateral High School until the Closing Date the Borrower shall not operate in the areas respectively served thereby any other educational institution at the high school level. Section 4.06. (a) Not later than December 31, 1972 (or such later date as the Association shall agree) the Borrower, in consultation with the Food and Agriculture Organization of the United Nations (FAO), shall appoint to the position of Dean of the College a person of suitable qualifications and experience. In addition, not later than the commencement of the first school year following completion of construction of the College, the Borrower shall establish the positions of Associate Dean (Agriculture) and of Associate Dean (Forestry) and shall appoint thereto persons of suitable qualifications and experience. (b) The Borrower, in conjunction with the University of Liberia, shall formulate a program for the revision of the curricula of the College on the basis 10 of the educational objectives of the Borrower. The Borrower shall initiate such program not later than December 31, 1972 and shall, in conjunction with the University of Liberia, review such program and the progress achieved in its implementation with the United Nations Development Programme and FAO (UNDP-FAO) and the Association on or before the commencement of each subsequent school year of the College until the Closing Date. (c) The Borrower shall use its best endeavors to secure the extension by UNDP-FAO of technical assistance programs to the Borrower for the College in respect of the three years following completion of the construction, furnishing and equipping of the College or, if earlier, the three years ending December 31, 1978, on such basis as UNDP-FAO, in consultation with the Borrower and the Association, shall from time to time recommend in the light of the requirements of the College. Section 4.07. The Borrower shall, in consultation with the Association, establish and from time to time review an incremental salary structure at suitable levels of remuneration for all teaching staff engaged by it by reference to the requirements of the position and to the qualifications and experience of the member of such staff. The said salary structure shall be introduced in the case of staff at the Multilateral Schools and at the College from the commencement of the first school year following the respective completion of construction thereof and in all other cases progressively so as to be fully in effect by not later than January 1, 1976. Section 4.08. In order to enable the Borrower and the Association to evaluate the results of the Project, the Borrower shall not later than February 28, 1975 establish a system to record all relevant information concerning (a) the educational achievement, including advanced studies, if any, (together with information concerning premature termination or repetition of any stage of education) and (b) the subsequent employment of a representative sample of the students trained at the institutions included in the Project and at such other educational institutions as the Borrower and the Association shall agree. ARTICLE V Consultation, Information and Inspection Section 5.01. The Borrower and the Ass. 'iation shall cooperate fully to assure that the purposes of the Credit will be accomplished. To that end, the [ 11 Borrower and the Association shall from time to time, at the request of either party: (a) exchange views through their representatives with regard to the performance of their respective obligations under the Development Credit Agreement, the administration, operations and financial condition, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof, and other matters relating to the purposes of the Credit; and (b) furnish to the other all such information as it shall reasonably request with regard to the general status of the Credit. On the part of the Borrower, such information shall include information with respect to financial and economic conditions in the territories of the Borrower, including its balance of payments, and the external debt of the Borrower, of any of its political subdivisions and of any agency of the Borrower or of any such political subdivision. Section 5.02. (a) The Borrower shall furnish or cause to be furnished to the Association all such information as the Association shall reasonably request concerning the operations and financial condition, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. (b) The Borrower and the Association shall promptly inform each other of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit, the maintenance of the service thereof or the performance by either of them of its obligations under the Development Credit Agreement. Section 5.03. The Borrower shall afford all reasonable opportunity for accredited representatives of the Association to inspect all plants, installations, sites, works, buildings, property and equipment related to the Project and any relevant records and documents and to visit any part of the territories of the Borrower for purposes related to the Credit. ARTICLE VI Taxes and Restrictions Section 6.01. The principal of, and service charges on, the Credit shall be paid without deduction for, and free from, any taxes imposed under the laws of the Borrower or laws in effect in its territories. 12 Section 6.02. The Development Credit Agreement shall be free from any taxes on or in connection with the execution, delivery or registration thereof, imposed under the laws of the Borrower or laws in effect in its territories. Section 6.03. The payment of the principal of, and service charges on, the Credit shall be free from all restrictions, regulations, controls and moratoria of any nature imposed under the laws of the Borrower or laws in effect in its territories. ARTICLE VII Remedies of the Association Section 7.01. If any event specified in Section 7.01 of the General Conditions shall occur and shall continue for the period, if any, therein set forth, then at any subsequent time during the continuance thereof, the Association, at its option, may by notice to the Borrower declare the principal of the Credit then outstanding to be due and payable immediately together with the service charges thereon and upon any such declaration such principal and service charges shall become due and payable immediately, anything to the contrary in the Development Credit Agreement notwithstanding. ARTICLE VIII Effective Date; Termination Section 8.01. The following events are specified as additional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 10.01 (b) of the General Conditions: (a) the Project Unit has been established; (b) the position in the Project Unit of Project Director and Deputy Project Director shall have been filled in accordance with Section 3.01 (b) (i) of this Agreement; and (c) the counterpart staff to the Deputy Project Director, to the Project Architect, to the Project Accountant and to the Project Procurement Specialist shall have been appointed in accordance with Section 3.02 (b) (ii) hereof. Section 8.02. The date September 18, 1972 is hereby specified for the purpose of Section 10.04 of the General Conditions. 13 Section 8.03. The obligations of the Borrower under Sections 4.01 and 4.08 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date 15 years after the date of this Agreement, whichever shall be the earlier. ARTICLE IX Representative of the Borrower; Addresses Section 9.01. The Minister of Education of the Borrower is designated as representative of the Borrower for the purposes of Section 9.03 of the General Conditions. Section 9.02. The following addresses are specified for the purposes of Section 9.01 of the General Conditions: For the Borrower: Minister of Education Ministry of Education Monrovia Liberia Cable address: Ministry of Education Monrovia For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Indevas Washington, D.C. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed 14 in their respective names and to be delivered in the District of Columbia, United States of America, as of the day and year first above written. THE REPUBLIC OF LIBERIA By /s / Ellen Johnson-Sirleaf Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Mohamed Shoaib Vice President 15 SCHEDULE I Withdrawal of the Proceeds of the Credit 1. The table below sets forth the categories of items to be financed out of the proceeds of the Credit, the allocation of amounts of the Credit to each category and the percentage of eligible expenditures so to be financed in each category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed I. Civil Works 3,000,000 70% of total expenditures II. Consultants' 300,000 70% of total Services expenditures 1II. Furniture 180,000 70% of total expenditures IV. Equipment and 570,000 100% of the c.i.f. Books price of imported goods or 100% of the ex-factory price of locally produced goods V. *Technical 1,725,500 100% of foreign Assistance expenditures VI. Unallocated 1,424,500 TOTAL 7,200,000 * Subject to Section 2.01 (b) hereof. 16 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures for goods produced in, or services supplied from, the territories, and in the currency, of any country other than the Borrower provided, however, that if the currency of the Borrower is also that of another country in the territories of which goods are produced or from the territories of which services are supplied, expenditures in such currency for such goods or services shall be deemed to be "foreign expenditures"; and (b) the term "total expenditures" means the aggregate of foreign expenditures and of expenditures for goods produced in, or services supplied from, the territories of the Borrower. 3. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of: (a) expenditures prior to the date of this Agreement except that withdrawals may be made in respect of Categories II and V on account of expenditures incurred after February 1, 1972 in an aggregate amount not exceeding the equivalent of $100,000; (b) payments for taxes imposed under the laws of the Borrower or laws in effect in its territories on goods or services, or on the importation, manafacture, procurement or supply thereof. To the extent that the amount represented by the percentage set forth in the third column of the table in paragraph I above in respect of any Category would exceed the amount payable net of all such taxes, such percentage shall be reduced to ensure that no proceeds of the Credit will be withdrawn on account of payments for such taxes; and (c) purchases of equipment pursuant to any contract of a value of less than $5,000 equivalent. 4. Notwithstanding the allocation of an amount of the Credit set forth in the second column of the table in paragraph 1 above: (a) if the estimate of the expenditures under any Category shall decrease, the amount of the Credit then allocated to such Category and no longer required therefor will be reallocated by the Association by increasing correspondingly the unallocated amount of the Credit; (b) if the estimate of the expenditures under any Category shall increase, the percentage set forth in the third column of the table in paragraph I above 17 in respect of such expenditures shall be applied to the amount of such increase, and a.corresponding amount will be allocated by the Association, at the request of the Borrower, to such Category from the unallocated amount of the Credit, subject, however, to the requirements for contingencies, as determined by the Association, in respect of any other expenditures; and (c) if the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in Section 2.03 of this Agreement, no expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as in the Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. 5. Notwithstanding the percentages set forth in the third column of the table in paragraph I above, if the estimate of total expenditures under Category I, II, III or IV shall increase and no proceeds of the Credit are available for reallocation to such Category, the Association may, by notice to the Borrower, adjust the percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 18 SCHEDULE 2 Description of the Project The Project consists of the following parts: Part A. (1) The construction, furnishing and equipping of: (a) two new multilateral high schools (b) one new college of agriculture and forestry (c) one new demonstration school (2) The conversion and/or extension and the supplementary furnishing and equipping of one elementary teacher training institute. (3) The supplementary equipping of: (a) one secondary science teacher training college to implement a science teacher training program for junior and high school teachers; (b) a vocational training center and a high school to implement a technical teacher training program for teachers for the institutes referred to in Part A (1) (a) of the Project and for technical education teachers. Part B: The provision of a total of 57 man-years of technical assistance and 7 man-years of fellowships. Except as the Borrower and the Association shall otherwise agree, the educational institutions included in Part A of the Project and the location, construction area, additional student places and additional accommodation shall be as specified in Annex 1 to this Schedule and the technical assistance and fellowships included in Part B of the Project shall be as specified in Annex 2 to this Schedule. Part A of the Project is expected to be completed by March 1, 1975 and Part B of the Project is expected to be completed by November 30, 1977. 19 ANNEX 1 TO SCHEDULE 2 List of the Educational Institutions Reference Approximate under Gross Area Accommodation Part A of Construc- Additional Additional Staff of the tion (square Student Student Housing Project Location feet) Places Boarding Units (1) (a) Voinjama Multilat- 65,690 600 150 10 eral High School, Voinjama and Zwedru Multilat- 65,690 600 150 10 eral High School, Zwedru (b) College of Agri- 74,810 200 200 30 culture and For- estry, University of Liberia, Fendell (c) Demonstration School, 15,320 240 0 2 Kakata Rural Teacher Training Institute, Kakata (2) Kakata Rural Teacher 58,680 175 160 14 Training Institute, Kakata (3) (a) William V.S. Tubman Teacher College, Uni- versity of Liberia, Monrovia (b) Vocational Training Center, Yekepa and William V.S. Tubman High School, Monrovia 20 ANNEX 2 TO SCHEDULE 2 Technical Assistance A. Specialist Services (1) Manpower Planning 4.5 man-years for three specialists to carry out manpower planning as a unit within the Manpower Planning Commission of the Ministry of Planning and Economic Affairs. (2) Educational Planning 7 man-years for four specialists to carry out educational planning as a unit within the Bureau of Planning and Research of the Ministry of Education in coordination with the Ministry of Planning and Economic Affairs. (3) University Planning 7.5 man-years for approximately nine specialists to plan university development as a unit in coordination with the University Development Committee of the University of Liberia. (4) Technical Teacher Training 6 man-years for two specialists to establish and implement a technical teacher training program, principally at the William V.S Tubman High School included in Part A of the Project. (5) Secondary Education 14 man-years for six specialists to establish and implement a secondary education program at the Voinjama Multilateral High School and the Zwedru Multilateral High School included in Part A of the Project and to train counterparts. (6) Project Management 18 man-years for four specialists to act as Deputy Project Director, Project Architect, Project Accountant and Project Procurement Specialist (and to train counterparts) in accordance with Section 3.01 (b) (i) of the Development Credit Agreement or to act as respective Advisers to such officers in accordance with Section 3.02 (c) of the Development Credit Agreement. 21 B. Fellowships (1) Educational Planning 5 man-years for five fellowships for the counterpart staff to the specialists referred to in paragraph A.(2) of this Annex. (2) Secondary Education 2 man-years for two fellowships for the principals designate respectively of the Voinjama Multilateral High School and the Zwedru Multilateral High School included in Part A of the Project. to be selected from the counterpart staff to the specialists referred to in paragraph A.(5) of this Annex. 22 SCHEDULE 3 Procurement A. Contracts for Civil Works 1. Contractors will be prequalified in accordance with a prequalification procedure satisfactory to the Association. 2. Before inviting bids, the Borrower will send to the Association for its approval the following: (a) a list of all contracts for civil works to be awarded in carrying out the Project, indicating the estimated value of each contract and the forecast timetable for obtaining it. The contracts will be grouped in such a way as to encourage international competitive bidding; (b) a description of the proposed advertising coverage to ensure international competitive bidding, draft bid notices, prequalification questionnaires and a description of prequalification procedures; (c) the consultant's report and recommendation on the prequalification data submitted and the proposed selected tender list; (d) draft bidding documents including draft contracts. The invitations to bid for the educational institutions included in the Project will, inter alia, specify that the bidder will submit offers in respect of each institution together with related facilities, or of all of them, or any combination thereof. The bids shall be opened simultaneously. The Borrower shall have the option of awarding to one contractor one contract in respect of all the educational institutions and facilities, or separate contracts or a combination of contracts in respect of the various educational institutions and facilities. The Borrower shall make such additions or deletions in such proposed tender list and such modifications in such draft bidding documents and draft contracts as the Association shall reasonably request. 3. After bids have been received and evaluated, the Borrower will, before a final decision on the award is made, inform the Association of the name of 23 the bidder to whom it intends to award the contract and the reasons for the intended award, and will furnish to the Association, in sufficient time for its review, a detailed report by the Borrower's consultants on the evaluation and comparison of the bids received, together with the recommendations of said consultants for award. The Association shall, if it determines that the intended award would be inconsistent with the procedures set forth or referred to in Section 2.03 of the Development Credit Agreement, promptly inform the Borrower and state the reasons for such determination. 4. Promptly after a contract ha- been awarded, and before submission to the Association of the"first application for withdrawal of funds in respect thereof, two certified conformed copies of the contract will be sent to the Association. Two certified conformed copies of any subsequent contract amendment will also be sent to the Association. 5. The Borrower will request the Association's concurrence with any proposed change in a contract involving a price increase of 10% or more of the contract price or of $25,000 or more equivalent, whichever is less, together with an explanation of the proposed change. 6. In the event that the estimate as agreed between the Borrower and the Association of the total costs of civil works required for any of the Project institutions and to be financed out of the proceeds of the Credit shall be less than the sum of $50,000, procurement of such civil works on the basis of international competition shall not be required but, subject thereto, the provisions of Section 2.03 of the Development Credit Agreement shall be applicable in all respects to all contracts for such civil works. B. Contracts for Equipment and Furniture 1. The items to be purchased will be grouped so as to permit such bulk procurement as shall be consistent with sound technical and procurement practices. Insofar as practicable, contracts for such groups will be for not less than $40,000 equivalent. 2. Before inviting bids, the Borrower will send to the Association for its approval the following: (a) lists of all items of equipment and furniture required for the Project and the proposed grouping thereof, showing the specifications and the estimated unit price of each item and the total price of each category of items. Items will be indexed, 24 coded and numbered for identification with the educational institution in question and the space for which they are required. Amendments to such lists will also be submitted to the Association for approval; and (b) draft standard documents for inviting tenders, forms of contracts and a description of the method to be used for inviting bids on an international basis, including the proposed advertising procedures. 3. Procurement will be limited to those items of equipment and furniture specified in the approved lists mentioned in sub-paragraph B. 2. (a) above and identified in contract documents by the same indices, codes and numbers as in such lists. 4. For evaluating any competing bids received for imported and for locally manufactured equipment and furniture, for the purposes of comparison, the following method will be used: (a) The term "Local Bid" means a bid offering goods manufactured or processed to a substantial extent (as reasonably determined by the Association) in the territories of the Borrower; any bid offering other goods shall be deemed a Foreign Bid. (b) The comparison bid price under a Local Bid shall be the sum of the following amounts: (i) the ex-factory price of such goods; and (ii) inland freight, insurance and other costs of delivery of such goods to the place of their use or installation. (c) For the purpose of comparing any Foreign Bid with any Local Bid the comparison bid price under a Foreign Bid shall be the sum of the following amounts: (i) the c.i.f. price of such goods; (ii) any such taxes, as generally apply to such goods if imported into the territories of the Borrower by non-exempt importers, or 15% of the amount specified in (c) (i) above, whichever shall be lower; and 25 (iii) inland freight and insurance, and other costs of delivery of such goods to the place of their use or installation. 5. If (a) Foreign and Local Bids have been so compared; or (b) a contract is proposed to be awarded to a bidder other than the lowest evaluated bidder (taking into account, if applicable the foregoing paragraph B. 4.); or (c) a proposed award involves a difference in price of 10% or more from the original estimate as shown pursuant to paragraph B. 2. (a) above, the Borrower will, after the bids have been evaluated and before making the award, send to the Association for its prompt approval, a summary and analysis thereof and a brief justification of the Borrower's proposal for the award. 6. Promptly after bids have been evaluated and a contract has been awarded and before submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, the following will be sent to the Association (if not already furnished under paragraph B. 5. above): (a) a certificate signed by the Project Director or his deputy that the goods covered by the contract are in accordance with the quantities and specifications in the list approved by the Association; (b) a list of the bids received; (c) a brief analysis of the bids and justification for the Borrower's decision in making the award; and (d) two certified conformed copies of the contract. The Association shall, if it determines that the award of the contract is not consistent with the procedures set forth or referred to in Section 2.03 of this Agreement, promptly inform the Borrower and state the reasons for such determination. 7. Two certified conformed copies of any subsequent amendment to any contract referred to in paragraph B. 6. (d) hereof will also be sent promptly to the Association. 26 SCHEDULE 4 The Project Unit 1. A Project Unit will be established within the Ministry of Education of the Borrower under a full-time Project Director responsible to the Minister of Education. 2. The Project Unit will include, on a full-time basis, specialists to serve as: (a) Project Director to act as chief of the group of specialists contracted under the technical assistance provided by the Project, (b) the Deputy Project Director, (c) Project Architect, (d) Project Accountant and (e) Project Procurement Specialist. In addition the Project Unit will be staffed with appropriate clerical personnel. 3. The Project Unit shall have the necessary powers for the execution of the Project, including, inter alia: (a) the coordination of the Project referred to in Section 3.01 (c) of the Development Credit Agreement; (b) the selection, briefing, coordination and supervision of architectural consultants and contractors provided for in Sections 3.02 and 3.03 of the Development Credit Agrcement; (c) the approval of the civil works design of the educational institutions included in the Project; (d) the preparation of detailed lists of the furniture, equipment and books required for Part A of the Project; (e) the procurement of civil works, furniture, equipment and books including the preparation of bidding documents, the analysis of bids and the making of recommendations regarding the award of contracts; (f) the regular inspection of all construction work and acceptance of the consultants' certification of completion of works; (g) the keeping of records, including financial records, of the execution of the Project, and the preparation of regular reports to the Association; (h) the selection, briefing, coordination and supervision of the specialists provided under Part B of the Project; and 27 (i) the selection, arrangement and supervision of the fellowships provided under Part B of the Project. 4. The functions of the Project Director, the Deputy Project Director, the Project Architect, the Project Accountant and the Project Procurement Specialist shall be as follows: (a) The Project Director The Project Director shall be responsible for directing all aspects of the execution of the Project. He shall report directly to the Secretary of Education. He shall be responsible, inter alia, for the following: (i) the administration of agreements with the architectural consultants in accordance with their terms of reference; (ii) making the necessary arrangements for briefing architectural consultants and other architects and engineers of the agencies of the Borrower; (iii) reviewing and approving or arranging for the review and approval by the appropriate authorities of all reports, plans, specifications and other material related to the Project; (iv) making all necessary arrangements for calling bids and awarding all contracts relating to the Project; (v) the coordination and integration of all Project activities with the relevant departments, authorities and agencies and with the Association; (vi) the organization and administration in consultation with the appropriate authorities of the technical assistance program included in the Project; (vii) the selection and organization of the staff of the Project Unit and the supervision and direction of their performance of their respective duties; (viii) preparing quarterly project progress reports for the Borrower and the Association; 28 (ix) preparing educational specifications for the facilities to be constructed; (x) assisting the Project Architect in the preparation of architects' briefs; (xi) acting as adviser to the executive architects on all educational matters to ensure that the brief is fully understood; (xii) reviewing the architectural drawings to see that space provisions and educational specifications are correctly interpreted; (xiii) organizing specialist teachers to prepare basic equipment and furniture lists and reviewing furniture designs for the Project institutions; (xiv) coordinating the technical assistance personnel provided under Part B of the Project for special aspects of education pertaining to the Project; (xv) taking all steps required to ensure that teachers will be available when the Project institutions are ready for use; (xvi) coordinating and integrating all Project educational activities with other related activities of the Ministry of Education; and (xvii) ensuring that all instructional equipment meets required specifications and is properly installed. (b) The Deputy Project Director The Deputy Project Director shall assist the Project Director in the carrying out of his duties as specified in paragraph (a) hereof. (c) The Project Architect Under the general direction of the Project Director, and in coordination with the architectural consultants, the Project Architect shall, inter alia: 29 (i) assemble all information relating to site and site conditions of the Project institutions; (ii) prepare a comprehensive implementation schedule based on the Critical Path Method, Gantt Chart or other satisfactory method, for setting down the planned timetable of coordinated activities and responsibilities on which the carrying out of all aspects of the Project will be based; (iii) prepare the architects' briefs, relating educational specifications to realistic costing and functional design; (iv) act as technical and architectural adviser to the architectural consultants to ensure that the brief is fully understood and that the Project is carried out in accordance with the brief: (v) check the architectural drawings to see that the space provisions and educational specifications are interpreted correctly so as to minimize changes during construction and after tenders have been accepted and approved; (vi) ensure that the architectural consultants and contractors are meeting performance standards as reflected in the specifications; (vii) take all steps required to ensure that the furniture is designed and constructed to specifications; (viii) ensure that furniture and building materials are procured in time and available for use on schedule; (ix) process and expedite all certificates of payments from contractors submitted through the executive architects; and (x) visit the works and inspect progress. (d) The Project Accountant The Project Accountant shall be responsible to the Project Director for setting up of the accounting machinery and the technical and 30 operational aspects of accounting control relating to Project implementation in terms of the Development Credit Agreement. He shall be responsible, inter alia, for: (i) ensuring that funds are available in the relevant accounts as required to meet payments to be financed out of the proceeds of the Credit; (ii) conducting the overall supervision, maintenance and verification of any special bank account which may be set up for the Project; (iii) taking promptly all actions required under the Development Credit Agreement in order to expedite the disbursement of the amounts of the Credit, including the preparation of withdrawal applications; (iv) ensuring that a detailed account is maintained in respect of each contract for the procurement of goods or services for the Project; (v) preparing such interim evaluation and financial statements as are required under the Development Credit Agreement; (vi) arranging for the establishment of letters of credits, if any; (vii) ensuring that financial regulations are complied with by the staff working under his control; (viii) signing or countersigning of checks; and (ix) such other duties as may be assigned by the Project Director. (e) The Project Procurement Specialist Under the general direction of the Project Director, the Project Procurement Specialist shall be responsible, inter alia, for the following: (i) the procurement of all furniture, equipment and books, furniture and materials for the Project institutions; 31 (ii) the itemization and listing of all goods required for the Project showing the specifications and the estimated unit and total costs of each item, and the arrangement for the index coding and numbering of each item for identification with each of the Project institutions and with the space for which they are required; (iii) the grouping of goods to be procured so as to permit bulk procurement consistent with sound technical and procurement practices; (iv) the drafting of standard documents for inviting bids and the implementation of bidding procedures in accordance with Section 2.03 of the Development Credit Agreement; (v) the evaluation of bids received for all goods; (vi) the inspection of goods to ensure that correct quantities are received to the correct specifications; and (vii) the arrangement of safe custody and delivery of the goods to designated sites in accordance with target dates laid down.