Haiti - Third Highway Project : Credit 0478 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 478 HA Development Credit Agreement (Third Highway Project) BETWEEN 0 REPUBLIC OF HAITI AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JUNE 6, 1974 CONFORMED COPY CREDIT NUMBER 478 HA Development Credit Agreement (Third Highway Project) BETWEEN REPUBLIC OF HAITI AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JUNE 6, 1974 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 6, 1974, between REPUBLIC OF HAITI (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 March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements of the Association being heieinafter 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: (a) "TPTC" means Secr9tairie d'Etat des Travaux Publics, Transports et Communications, a department of the Borrower; and (b) "SEPRRN" means Service d'Entretien Permanent du Rgseau Routier National, a separate entity in the administration of the Borrower, charged with highway maintenance. 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 ten million dollars ($10,000,000). 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 The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such 'Schedule may be amended from time to time, for expenditures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 4 of goods and services required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association and the Borrower shall otherwise agree, contracts for the purchase of goods, the carrying out of works or services (other than consultants' services) for the Project and to be financed out of the proceeds of the Credit, shall be awarded in accordance with the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 3 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 I%) per annun 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 May 15 and November 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each May 15 and November 15 commencing November 15, 1984, and ending May 15, 2024, each installment to and including the installment payable on May 15, 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 2.08. 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. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appropriate 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 prequalification of contractors, the recommendations for award of contracts and the supervision of construction of the highway sections forming 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 or cause to be employed contractors acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.04. Except as the Association and the Borrower shall otherwise agree, the general design standards to be used for the highway sections included in Part A of the Project shall be as set forth in Schedule 4 to this Agreement. Section 3.05. (a) In carrying out Part B of the Project, the Borrower shall employ or cause to be employed technical assistants acceptable to the Association upon terms and conditions satisfactory to the Association. (b) The Borrower shall not later than December 31, 1974, or such other date as the Association shall agree, take all steps necessary to employ the technical assistants referred to in paragraph (a) of this Section to carry out Part B(i) and (ii) of the Project. Section 3.06. (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 3.07. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and construction 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 visit the facilities and construction sites included in the Project and to examine 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 6 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 3.08. The Borrower shall take or cause to be taken all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for carrying out Part A of 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, not later than December 31, 1975, or such other date as the Association shall agree, establish, and thereafter maintain and adequately staff, a transport sector planning unit under TPTC. Section 4.03. (a) The Borrower shall cause its national highway system to be adequately maintained in accordance with sound engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for that purpose. (b) Without any limitation or restriction upon the provisions of paragraph (a) of this Section, the Borrower shall carry out the maintenance of those sections of the Northern Road which are not to be reconstructed under Part A of the Project in accordance with the plan agreed to between the Borrower and the Association, as such plan may be amended by further agreement between the Borrower and the Association. Section 4.04. It is the Borrower's intention to collect and record, in accordance with appropriate statistical methods and procedures and on a regular and systematic basis, such information concerning road traffic, road construction and maintenance costs as shall be reasonably required for proper planning of maintenance, improvements and extensions of its road system. As a first step towards this goal, the Borrower shall, starting not later than December 31, 1975 or such other date as the Association shall agree, carry out periodic traffic counts and origin-and-destination surveys on its national highway network and major departmental roads. 7 Section 4.05. (a) The Borrower shall, not later than December 3 1, 1976, or such other date as the Association shall agree, adopt highway regulations and take all necessary measures to ensure enforcement of the said regulations, to ensure at all times that the dimensions and axle loads of the vehicles using its roads do not exceed limits consistent with the structural and geometric design standards of such roads. (b) The measures referred to in paragraph (a) of this Section shall include, inter cilia, the installation of weighing scales and the training of personnel to operate the said scales, not later than June 30, 1978, or such other date as the Association shall agree, at appropriate locations on the Borrower's national highways. ARTICLE V Remedies of the Association Section 5.01. The Association may, upon the occurrence of certain events specified in Sections 6.02 or 7.01 of the General Conditions and the continuance thereof for the period, if any, specified for the purpose: (i) suspend in whole or in part the right of the Borrower to make withdrawals from the Credit Account or (ii) declare the principal of the Credit then outstanding to be due and payable immediately together with the nterest and other charges thereon. ARTICLE VI Termination Section 6.01. The date September 5, 1974 is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.02. 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 VII Representative of the Borrower; Addresses Section 7.01. The Secretary of State for Finances and Economic Affairs of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: 8 For the Borrower: Secrdtairie d'Etat des Finances et des Affaires Eccnomiques Palais des Finances Port au Prince Haiti Cable address: Secr6tairie d'Etat des Finances et des Affaires Economiques Port au Prince Haiti 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 in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF HAITI By /s/ E. Bros Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Gerald Alter Regional Vice President Latin America and the Caribbean 9 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 the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated 9o of (Expressed in Expenditures Category Dollar Equivalent) to be Financed I. Civil works 100% of foreign expenditures and 20% of local expenditures (a) road recon- 5,105,000 struction (b) reconstruction 425,000 of the Est6re Bridge II. Consultants' 720,000 100% of foreign services expenditures 111. Technical assist- 600,000 100% of foreign ance expenditures IV. Unallocated 3,150,000 TOTAL 10,000,000 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures for goods or services supplied from, the territory, and in the currency, of any country other than the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower, and for goods or services supplied from, the territory of the Borrower. 10 3. The disbursement percentages have been calculated in compliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if any event occurs which shall affect the amount of any such taxes included in the cost of any item to be financed out of the proceeds of the Credit, the Association may, by notice to the Borrower, correspondingly adjust the disbursement percentage then applicable to such item. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of expenditures prior to the date of this Agreement, except that withdrawals may be made on account of expenditures incurred after January 1, 1974, (i) in an aggregate amount not exceeding the equivalent of $400,000 in respect of Category I(b); and (ii) in an aggregate amount not exceeding the equivalent of $100,000 in respect of Category 11. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph I above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category to the extent required to meet such estimated shortfall proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expenditures, and (ii) with respect to Category I only, if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. 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 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. * 11 SCHEDULE 2 Description of the Project The Project consists of the following Parts: A. Civil works (i) The reconstruction of the sections of the Northern Road listed in the Exhibit to this Schedule, totalling approximately 150 kin, as such Exhibit may be amended from time to time by further agreement between the Borrower and the Association. (ii) The reconstruction of the Estere Bridge. B. Studies, training and technical assistance The utilization of about 80 man-months of technical assistance to: (i) complete a study of the transport sector in Haiti, including the user charges system, and including recommendations for an investment plan in the transport sector for 1977-1981; (ii) train counterpart personnel during the carrying out of the study defined in paragraph (i) above; (iii) assist TPTC in public works administration and management generally and to assist TPTC in its proposed reorganization; and (iv) assist the domestic civil works industry in management, administration and engineering. The Project is expected to be completed by June 30, 1977. 12 EXHIBIT TO SCHEDULE 2 Lot A I. From km 13.4 to km 17.3 II. From Duvalierville to Saintard III. Construclion of a bridge over Ravine Seche, and its approaches IV. Construction of a bridge over Ravine Rousseau, and its approaches Lot B V. From Pointe Montrouis to Carrefour Bois-de-Chaux VI. From a point about 4 km south of the Quinte River to Gonaive Lot C VII. From a point about 7 km south of Ennery to Cap Haftien 13 SCHEDULE 3 Procurement A. General Procedures 1. Contracts shall be let under procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in April 1972, as revised in October 1972 (hereinafter called the Guidelines), on the basis of international competitive bidding. 2. Bidders for the works included in Part A of the Project shall be prequalified as described in part 2.2 of the Guidelines. 3. With respect to bidding for civil works under Part A(1) of the Project: (a) the Project road shall be divided into three lots as set forth in the Exhibit to Schedule 2. Bidders may bid for one, two or for all lots; contracts shall be awarded on the basis of the lower of: (i) the lowest evaluated bid for all lots; or (ii) the lowest combination of lowest evaluated bids for the individual lots; and (b) all invitations to bid for the said contracts shall be issued simultaneously. B. Evaluation and Comparison of Bids for Civil Works; Preferences for Domestic Con tractors 1. With respect to any contract for civil works included under Category I(a) of the table set forth in Schedule 1 to the Development Credit Agreement, the Borrower may grant a margin of preference of 7-1/2% to domestic contractors, as determined by the Borrower, in accordance with, and subject to, the following provisions: (a) Contractors shall be required to prequalify as provided in Part A of this Schedule and applicants for qualification applying also for such preference shall be asked to provice, as part of the information for qualification, such information, including details of ownership, as shall be required to determine whether, according to the classification established by the Borrower and accepted 14 by the Association, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. (b) After bids have been received and reviewed by the Borrower, responsive bids will be classified into the following groups: (i) bids offered by domestic contractors eligible for preference; and (ii) Ibids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. C. Review of Procurement Decisions by Association 1. Review of prequalification. 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 reasonabTy request. The list of prequalified bidders, together with a statement of their qualifications and, where applicable, of their eligibility for domestic preference under Part C.1 above and of the reasons for the exclusion of any applicant for prequalification and for such eligibility 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, deletions from, or modifications in, the said list as the Association shall reasonably request. 2. Review of invitation to bid and of proposed awards and final contracts: With respect to all contracts for civil works estimated to cost the equivalent of $100,000 or more: (a) 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 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. (b) 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 15 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 ccmparison of the bids received, together with the recommendation for award of the said consultants and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 3. With respect to each contract to be financed out of the proceeds of the Credit and not governed by the preceding paragraph, the *Borrower shall furnish to the Association, promptly after its execution and prior to the submission 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, recommendations for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. 16 SCHEDULE 4 Design Standards for Northern Road Terrain Design Parameters Flat Undulating Mountainous Horizontal Maximum cross slope (%) 7 7 7 Minimum radius (m) 240 120 40 Vertical Maximum grade (%) 4 7 8 Minimum radius (m) 4,500 1,600 500 Design speed (km/hr) 80 60 40 Width of travelled way: 5.50 - 7.00 m Width of shoulders: 0.50 - 3.00 m