Rwanda - Thrid Highway Project : Credit 0475 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 475 RW Development Credit Agreement (Third Highway Project) BETWEEN REPUBLIC OF RWANDA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JUNE 5, 1974 CONFORMED COPY CREDIT NUMBER 475 RW Development Credit Agreement (Third Highway Project) BETWEEN REPUBLIC OF RWANDA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JUNE 5, 1974 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 5, 1974, between REPUBLIC OF RWANDA (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 part of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) The Borrower has also requested the United Nations Development Programme to provide financial assistance towards the financing of Part C of the Project and part of the consultants' services under Part A of the Project; (C) The Borrower intends to contract from the Kingdom of Belgium (hereinafter called Belgium) a grant (hereinafter called the Belgian Grant) in an amount equivalent to $500,000 to assist in financing part of the Project on the terms and conditions set forth in an agreement (hereinafter called the Belgian Grant Agreement) to be entered into between the Borrower and Belgium; 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 s.t 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 4 meanings therein set forth and the term "DRB" means the Directorate General of Roads and Bridges of the Borrower's Ministry of Public Works and Equipment, and any successor thereto. 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 six million three hundred thousand dollars ($6,300,000). 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 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. If at any time the Borrower obtains a grant or other financial assistance from the United Nations Development Programme to meet all or part of the estimated foreign exchange requirements of Part C of the Project and of part of the consultants' services for civil works under Part A of the Project, the Association may by notice to the Borrower cancel the corresponding amounts of the Credit under Categories I and III of Schedule 1 to this Agreement. Upon the giving of such notice such amounts of the Credit shall be cancelled. Section 2.04. 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 revised in October 1972, and in accordance with, and subject to, the provisions set forth in Schedule 3 to this Agreement. Section 2.05. The Closing Date shall be June 30, 1977 or such other date as shall be agreed between the Borrower and the Association. 5 Section 2.06. 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 2.07. Service charges shall be payable semi-annually on January I and July 1 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each January I and July 1 commencing July 1, 1984, and ending January 1, 2024, each installment to and including the installment payable on January 1, 1994 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 2.09. 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. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appropriate engineering, financial and administrative 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 carrying out Part A 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 A of the Project, the Borrower shall employ contractors acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.04. Except as the Association shall otherwise agree, the design standards to be used for the road specified in Part A of the Project shall be as set forth in Schedule 4 to this Agreement. Section 3.05. The Borrower shall not carry out the detailed engineering for the Kigali-Ruhengeri and Ruhengeri-Cyanika roads under Part B of the Project until 6 the Borrower shall have reached agreement with Belgium and the Association on the terms of reference for such detailed engineering. Section 3.06. (a) The Borrower shall furnish to the Association for its approval a technical assistance and training program to be financed under Part C of the Project not later than six months as from the date of this Agreement or such other period of time as shall be agreed by the Association. (b) In carrying out Part C of the Project, the Borrower shall employ experts acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.07. (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, all goods and services financed out of the proceeds of the Credit shall be used exclusively for the Project until its completion. Section 3.08. (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 3.09. The Borrower shall promptly take all such action as shall be necessary to acquire ai such land and rights in respect of land as shall be required 7 for carrying out Part A of 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 have been acquired. 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 take all measures reasonably required to ensure that the dimensions and axle-loads of vehicles using its national highway network shall not exceed limits consistent with the design standards for such roads. Section 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 proper planning of maintenance, improvements and extensions of the said road network. Section 4.04. (a) The Borrower shall cause its national road network to be adequately maintained and shall cause all necessary repairs thereof to be made promptly, all in accordance with sound engineering practices and shall provide, promptly as needed, the funds, facilities, services and other resources required for such maintenance and repairs. (b) The Borrower shall discuss with the Association the adequacy of its annual budget for maintenance of its national road network. ARTICLE V Consultation, Infornation 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: 8 (a) exchange views through their representatives with regard to the performance of their respective obligations under the Development Credit Agreement, the administration, operations, resources and expenditures, 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 purpcses 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 administration, operations, resources and expenditures, 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. 9 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 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 the Borrower and the consultants who are to assist the Borrower in carrying out Part A of the Project shall have entered into a contract in accordance with the provisions of Section 3.02 of this Agreement. Section 8.02. The date September 15, 1974 is hereby specified for the purposes of Section 10.04 of the General Conditions. Section 8.03. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty 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 Public Works and Equipment of the Borrower is designated as representative of the Borrower for the purposes of Section 9.03 of the General Conditions. 10 Section 9.02. The following addresses are specified for the purposes of Section 9.01 of the General Conditions: For the Borrower: Minister of Public Works and Equipment P.O. Box 24 Kigali, Rwanda Cable address: MINITRAPE Rwanda 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 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. REPUBLIC OF RWANDA By /s / H.E. Joseph Nizeyimana Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s / B. R. Bell Regional Vice President Eastern Africa 11 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 Oedit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed I. Civil works for 3,500,000 92% of total road improvement expenditures II. Consultant's 400,000 100% of foreign services for expenditures civil works III. Technical Assist- 700,000 100% of foreign ance and Training expenditures IV. Unallocated 1,700,000 TOTAL 6,300,000 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; 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: 12 (a) expenditures prior to the date of this Agreement, except that withdrawals may be made in respect of Category II on account of expenditures incurred after October 1, 1973 in an aggregate amount not exceeding the equivalent of $30,000; 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 1 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 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 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 percentages set forth in the third column of the table in paragraph I above, if the estimate of total expenditures under Category I shall 13 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 The Project consists of the following Parts: A. the improvement of the Ruhengeri-Gisenyi road to two-lane paved standard (about 60 km). B. the completion of feasibility studies and, if justified by the said feasibility studies, detailed engineering of the Kigali-Ruhengeri road (about 116 km) and of the Ruhengeri-Cyanika road (about 27 km). C. the technical assistance to the DRB and the training of Rwandese DRB personnel under programs agreed between the Borrower and the Association. The Project is expected to be completed by December 31, 1976. 15 SCHEDULE 3 Procurement Contracts Governed by Guidelines With respect to any contract for civil works: (a) Bidders shall be required to prequalify and at least 45 days shall be allowed for submission of prequalification documents. The Borrower shall, before 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. 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 for the bidding, and shall make such modifications in the said documents or procedure 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) The firms invited to bid shall be allowed at least 60 days for the submission of their proposals. The bidding documents shall be accompanied by a bid bond or bank guarantee amounting to not less than 2% of the estimated contract value. (d) 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 whom it intends to award the contract 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, and the reasons for the intended 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 this Agreement, promptly inform the Borrower and state the reasons for such determination. 16 (e) The successful bidder shall, at the Borrower's option, furnish either a performance bond or a bank guarantee in an amount of not less than 10% of the contract price, which bond or guarantee shall remain in effect until one year after completion of the works provided for in the contract. In addition, the contract shall provide for retention of not less than 10% of the cost of works on each monthly invoice. These retentions may cease to be made when the cumulative amount retained reaches about 5% of the total contract price. One-half of the retention moneys shall be released when all the work has been substantially completed, and the other half fourteen days after the termination of the contractor's responsibility in respect of defects. The period during which the contractor will remain responsible in respect of defects in the works (fair wear and tear excepted) will extend for one year after provisional acceptance of the works. (f) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. (g) 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. 17 SCHEDULE 4 Design Standards for the Ruhengeri-Gisenyi Road Design Speed 60 km/h Maximum grade: Normal 6% Exceptional 12% Minimum Curve Radius: Horizontal 50 m Vertical 1500 m Width of Carriageway 6 m Width of Shoulders Normal 1.0 m Exceptional 0.5 m Surface Bituminous Surface Treatment