Dahomey - Second Highway Project : Credit 0415 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 415 DA Development Credit Agreement (Second Highway Project) BETWEEN REPUBLIC OF DAHOMEY AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JULY 3, 1973 CONFORMED COPY CREDIT NUMBER 415 DA Development Credit Agreement (Second Highway Project) BETWEEN REPUBLIC OF DAHOMEY AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JULY 3, 1973 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated July 3, 1973, between REPUBLIC OF DAHOMEY (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) The Borrower has requested the Association to assist in the financing of the cost of the Project, described in Schedule 2 to this Agreement, by extending the Credit as hereinafter provided; (B) By agreement dated July 28, 1972 (hereinafter called the A.I.D. Loan Agreement), the United States of America, acting through its Agency for International Development (hereinafter called the A.I.D.), has agreed to make a loan (hereinafter called the A.I.D. Loan) to the Borrower in an aggregate principal amount in various currencies equivalent to 58,000,000 to assist in financing the cost of the Part I B of the Project on the terms and conditions therein set forth and WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: 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 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 following additional terms have the following meanings: 4 qwi (a) "Directorate" means the Directorate of Public Works in the Ministry of Public Works, Mines and Energy of the Borrower or any successor or successors thereto; (b) "OCDN" means the Organisation Commune Dahomney-Niger des Chemins de Fer et des Transports, established pursuant to the Protocole d'Accord between the Governments of Dahomey and Niger dated July 5, 1959. ARTICLE II The Credit Section 2.01. 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 eleven million eight hundred thousand dollars (S1 1,800,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule I 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 and services required for the Project and to be financed under the 0 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 April 1972, as modified in October 1972, 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 June 1, 1977 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 1'4) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. w' 5 Section 2.06. Service charges shall be payable semi-annually on January 15 and July 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each January 15 and July 1 5 commencing July 15, 1983, and ending January 15, 2023, each installment to and including the installment payable on January 15, 1993 to be one-half 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 French Republic is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project th-ough its Ministry of Public Works, Mines and Energy with due diligence and efficiency and in conformity with approp1>te administrative, financial, and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. In order to assist the Borrower in the supervision of Part I of the Project, and in carrying out Part II of the Project, the Borrower shall employ engineering consultants acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.03. In carrying out Part I A and C of the Project, Oie 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 fo. 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, all goods and services financed out of the proceeds of the Credit shall be used exclusively for the Project until its completion. 6 Section 3.05. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement 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 accredited representatives to examine 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 as and when needed all such land, rights of way and other property rights as shall be required for carrying out the Project. 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 appropriate 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 cause the roads and bridges in its highway system to be adequately maintained and shall cause all necessary repairs thereof to be made promptly, in accordance with sound engineering practices, and shall provide, promptly as needed, the funds, facilities, equipment, services and other resources required for the foregoing. Sectioi 4.03. The Borrower shall collect and record in accordance with appropriate statistical methods and procedures such data as are required to assess the technical, economic and financial aspects of the Borrower's road network for the proper planning of maintenance, improvements and extensions. Section 4.04. (a) The Borrower shall take such steps as shall be reasonably required to ensure that the dimensions and axle-loads of vehicles using the 7 Borrower's highways system are consistent with the structural and geometric design standards of the roads used. (b) For the purposes described in paragraph (a) above, the Borrower shall install, maintain and staff weighing stations at appropriate points along the Parakou-Malanville road. Section 4.05. In order to ensure better coordination of its transport system, the Borrower shall, within one year from the date of the Agreement, furnish to the Association for its approval a detailed program of measures to be taken to (i) strengthen the Directorate of Land Transport and to enable it to play an active role in defining over-all transport policies and investment planning and (ii) to improve the management of the OCDN with particular emphasis on the operation of the Cotonou-Parakou railway line. Section 4.06. Prior to undertaking any extension of the Cotonou-Parakou railway line northwards from Parakou, the Borrower shall furnish to the Association a feasibility study by qualified and experienced consultants, establishing the economic justification of any such northward extension to the mutual satisfaction of the Borrower and the Association. ARTICLE V Consultation, Information and Inspection Section 5.01. The Borrower and the Association shall cooperate fully to assure that the purposes of the Credit will be accomplished. To that end, the 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 and, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out any part of the Project, 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. 8 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 administration, operations and financial condition, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out any part of the Project. (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 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. 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 or in Section 7.03 of this Agreement shall occu; 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 * 9 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. Section 7.02. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified: (a) the right of the Borrower to make withdrawals under the A.I.D. Loan Agreement shall have been suspended or terminated in whole or inl part in accordance with the terms thereof; and (b) the A.I.D. shall have demanded repayment of the A.I.D. Loan in advance of the agreed maturity thereof, pursuant to the terms of the A.I.D. Loan Agreement. Section 7.03. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified, namely, the event specified in paragraph (b) of Section 7.02 of this Agreement shall occur. ARTICLE Vill Effective Date; Termination Section 8.01. The following event is specified as an additional condition to the effectiveness of the Development Credit Agreement within the meaning of Section 10.01(b) of the General Conditions, namely, that all the conditions precedent to initial disbursement under the A.I.D. Loan Agreement have been fulfilled, subject only to the effectiveness of this Agreement. Section 8.02. The date October 3 1, 1973 is hereby specified for the purposes of Section 10.04 of the General Conditions. Section 8.03. The obligations of the Borrower under Sections 4.02, 4.04 and 4.06 of this Agreement shall terminate on the date on which the Development Credit Agreement shall terminate or on a date twenty years from the dat4 of the Development Credit Agreement, whichever shall be the earlier. Section 8.04. The obligations of the Borrower under Sections 4.01 and 4.03 of this Agreement shall terminate on the date on which the Development Credit Agreement shall terminate or or, a date ten years from the date of this Development Credit Agreement, whichever shall be the earlier. 10 ARTICLE IX Representative of the Borrower; Addresses Section 9.01. The Ministre de l'Economie et des Finances 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: Ministry of Economics and Finance Cotonou Dahomey Cable address: MINIFINANCES Cotonou 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 Agr. ement to be signed 11 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 wiitten. REPUBLIC OF DAHOMEY By Is/ Adjibadc Tiamiou Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Xavier de la Renaudiare Director, Country Programs Departmeni Western Africa Regional Ofice S 12 SCHEDULE 1 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 under 7,750,000 89% of total ex- Parts I A and C of penditures the Project II. Consultants services 1,030,000 94% of total ex- for supervision of penditures civil works under Part I of the Project 1II. Consultants services 605,000 90% of total ex- under Part IL of penditures the Project IV. Construction 240,000 97% of total ex- materials under penditures Part III of the Project V. Unallocated 2,175,000 TOTAL 11,800,000 2. For the purposes of this Schedule 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 1 above, no withdrawals shall be made in respect of: 13 (a) expenditures prior to the date of this Agreement; and (b) payments for taxes imposed directly under the laws of the Borrower or laws in effect in its territories on goods or services, or on the importation, manufacture, 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. 4. Notwithstanding the allocation of an amount of the Credit set forth in the second column of the table in paragraph I above: (a) if the estimate of the expenditures under Categories I through IV 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; and (b) if the estimate of the expenditures under Categories I through IV shall increase, the percentage set forth in the third column of the table in paragraph 1 above 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 percentage set forth in the third column of the table in paragraph 1 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. 14 SCHEDULE 2 Description of the Project Part I. Rehabilitation of the following road sections to Standard A described in Schedule 4 to this Agreement: A. the southern half of the Parakou-Malanville road including the access road to the railroad station and the oil storage facilities at Parakou (about 160 km); B. the northern half of the Parakou-Malanville road as described in Annex I to the A.I.D. Loan Agreement (about 160 km); and of the following sections to Standard B described in such Schedule 4: C. two sections of the Cotonon-Bohicon road, from Godomey to Abomey Calavi and from Sehoue to Zakpo (totalling about 20 km). Part II: Utilization by the Borrower of consultants' services in highway maintenance and transport coordination. Part III. Procurement of steel culvert pipes and reinforcing steel to be used in the highway maintenance program for culverts and bridges. The Project is expected to be completed by November 30, 1976. 15 SCHEDULE 3 Procurement 1. Contracts Subject to the Guidelines 1. With respect to any contract for civil works or goods (other than contracts for civil works or equipment under Part I B of the Project) estimated to cost the equivalent of $40,000 or more: (a) Bidders for civil works shall be required to prequalify. The Borrower shall, before such qualification is invited, inform the Association in detail of the procedure to be followed and shall introduce such modifications in said procedure as the Association shall reasonably request. Contractors shall be given the option to bid on one or more of the three sections of roads comprising Parts I A and C of the Project. The list of prequalified bidders, together with a statement of their qualifications and of the reasons for the exclusion of any applicant for prequalification, shall be furnished by the Borrower to the Association for its comments before the applicants are notified, and the Borrower shall make such additions to or deletions from the said list as the Association shall reasonably request. (b) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed, and shall make such modifications in the said documents or procedures as the Association shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (c) After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and the reasons for the intended award, and shall furnish to the Association, in sufficient time for its review, a detailed report, by the consultants referred to in Section 3.02 of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants. 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 this Agreement, promptly inform the Borrower and state the reasons for such determination. (d) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. 7' 16 (e) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the delivery to the Association of the first application for withdrawal of funds from the Credit Account in respect of any such contract. II. Contracts Not Subject to the Guidelines 2. With respect to any contract for civil works or goods estimated to cost less than $40,000 equivalent (other than in respect of Part I B of the Project) the Borrower may, after advertising in local newspapers, award such contracts on a competitive basis in accordance with the applicable procurement procedures of the Borrower, provided, however, that the aggregate amount of contract to be awarded in accordance with this procedure and to be financed out of the proceeds of the Credit, shall not exceed $250,000 equivalent. The Borrower shall furnish to the Association promptly after the execution of any such contract (and prior to the delivery to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract), two conformed copies of such contract together with the analysis of bids, and the recommendations for award of all such other information as the Association shall reasonably request. 3. Identical or similar items to be procured shall be grouped together to form economic bid packages for purposes of bidding. 17 SCHEDULE 4 Design Standards Standard A (Parakou-Malanville road) Design Speed: 80 km/h Horizontal Curves: minimum radius 600 m Vertical Curves: minimum radius, crest 5,000 m Stopping sight distance: 200 m Maximum grade: (normal) 3.57, (in exceptional case) 6.2'T Road width: 9.0 m Pavement width: 6.0 m Shoulder width: 1.5 mn Pavement type: subbase Selected granular materials base Stabilized granular materials (alter- nativelv: crushed stone) surface course Double bituminous surfIce treatment (alternatively: sand asphalt course) Pavement design: design load 1 3 t Standard B (Two sections of Cotonou-Bohicon road) Designs speed: 80 km/h Horizontal curves: minimum radius 250 m1 Vertical curves: minimum radius, crest 4,000 m Stopping sight distance: 85 m 18 Maximum grade: 3.2% Road width: 9.00 m Pavement width: 6.00 m Shoulder width: 1.5 m Pavement type: subbase Selected granular materials base Stabilized granular materials,(alter- natively: crushed stone) surface course Double bituminous surface treatment (alternatively: sand asphalt course) Pavement design: design load 13 t (i