Nepal - Technical Assistance Project : Credit 0659 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 659 NEP DEVELOPMENT CREDIT AGREEMENT (Technical Assistance Project) between KINGDOM OF NEPAL and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated September 16, 1976 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated September 16, 1976, between KINGDOM OF NEPAL (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). 0 -2- 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 Agree- ments of the Association 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 hr.ve the respective meanings therein set forth and the term "Sub-project" means a particular study or project of technical assistance to be financed out of the proceeds of the Credit. -3- ARTICLE 11 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 equiva- lent to three million dollars ($3,000,000). Section 2.02. (a) Subject to paragraph (b) of this Section, the amount of the Credit may be withdrawn from the Credit Account in accordance with allocations agreed between the Borrower and the Association pursuant to Section 3.01 of this Agreement, as such allocations may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) after the date of this Agreement in respect of the reasonable cost of goods and services, other than taxes, required to carry out Sub-projects and agreed to be financed out of the proceeds of the Credit. (b) Except as the Borrower and the Association may otherwise agree, withdrawals from the Credit Account shall be limited to: (i) one hundred per cent of expenditures for ser- vices rendered by consultants or consulting firms; (ii) one hundred percent of expenditures in curren- cies other than the currency of the Borrower for equipment and materials required to carry out Sub-projects and procured directly by the Borrower; and (iii) one hundred percent of expenditures for travel to and from Nepal and of expenditures in cur- rencies other than the currency of the Borrower in connection with overseas travel of the Bor- rower's personnel for training programs. "Bor- rover's personnel" means persons employed by His Majesty's Government of Nepal and its agen- cies, including an entity, the majority of which is owned by the Government and its agencies. Section 2.03. The Closing Date shall be December 31, 1980 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.04. 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 2.05. Service charges shall be payable semi-annually on March 15 and September 15 in each year. Section 2.06. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each March 15 and September 15 commencing September 15, 1986, and ending March 15, -5- 2026, each installment to and including the installment payable on March 15, 1996 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 2.07. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Description of the Project; Use of Proceeds of the Credit Section 3.01 (a) The Project for which the Credit is granted consists of the carrying out of high priority Sub-projects selected by agreement between the Borrower and the Association which are designed to assist the Borrower in the planning and implementation of its programs of economic development. (b) The purpose and scope of each Sub-project, the method of implementation thereof and the specific allocation thereto of proceeds of the Credit shall be determined by agreement between the Borrower and the Association. Section 3.02. The Borrower shall apply the proceeds of the Credit in accordance with the provisions of this Agreement exclu- sively to expenditures on the Project. Section 3.03 (a) Subject to the provisions of paragraph (b) of this Section, except as the Association may otherwise agree, the equipment and materials to be financed under Section 2.02 (b) (ii) of this Agreement shall be procured on the basis of interna- tional competition under procedures consistent with the Guidelines for Procurement under World Bank Loans and IDA Credits published by the Bank in August 1975. 7 (b) Except as the Association may otherwise agree, contracts for equipment and materials estimated to cost less than $10,000 equivalent may be let through normal Government procurement pro- cedures, provided that the aggregate for such contracts shall not exceed $100,000 equivalent. -8- ARTICLE IV Execution of the Project Section 4.01. (a) The Borrower shall cause each Sub-project to be carried out with due diligence and efficiency and shall make available, promptly as needed, all funds, facilities, services and other resources required for the purpose. (b) The Foreign Aid and Program Division of the Ministry of Finance of the Borrower shall be responsible for ensuring effective coordination among the ministries and agencies of the Borrower con- cerned in the implementation of the Project. (c) For each Sub-project the Borrower shall establish arrange- ments and procedures, satisfactory to the Borrower and the Associa- tion, for selecting services, equipment and supplies and directing their use for such Sub-project, supervising and directing the work of any consultants employed therefor, recommending modifications of such consultants' terms of reference or other terms and condi- tions of their employment, and reviewing the reports and recom- mendations of such consultants. (d) The Borrower shall take all reasonable measures to facili- tate the work of consultants in the performance of their services for the Project and make available to them all information relevant to the Sub-project involved. -9- (e) The Borrower shall not amend or waive any of the terms and conditions of employment of consultants em.loyed for any Sub- project, or grant any material extension of time or any approval of Sub-contracts or modifications thereof, or agree to substitu- tion of personnel of such consultants, without prior agreement be- tween the Borrower and the Association. The Borrower shall promptly inform the Association if it proposes to suspend payments under or terminate any contract with such consultants. Section 4.02. For the purpose of carrying out any Sub-project which requires the employment of consultants, the Borrower shall employ qualified and experienced consultants satisfactory to the Association, on terms and conditions, including terms of reference, agreed upon between the Borrower and the Association. Section 4.03. For each Sub-project, except as the Association may otherwise agree, the Borrower shall submit the following to the Association for its approval: (a) A detailed description of the studies and work to be carried out in connection with the proposed Sub-project, including the purposes and objectives of the proposed Sub-project and the benefits expected from such Sub-project; (b) Qualifications, terms of reference and duration of service for any consultants to be engaged in carrying out the proposed Sub-project; - 10 - (c) Description of the role(s) of the agency or agencies or personnel of the Borrower to be responsible for the execution of the Sub-project; (d) Description of amenities and counterpart staff, if any, to be supplied by the Borrower; (e) Estimated foreign and local costs of the proposed Sub- project broken down by major items and showing amounts to be fi- nanced by the Borrower and out of the proceeds of the Credit, re- spectively, and an estimated disbursement schedule; and (f) Measures to be taken to comply with paragraphs (c) and (d) of Section 4.01, including any proposed variations in the pro- cedures described in the Guidelines referred to in Section 3.03. Section 4.04. (a) The Borrower shall cause the consultants employed for the Project promptly to furnish to the Association copies of the documents prepared by them for the Project, includ- ing reports and drafts thereof, in such number as the Association shall reasonably request. (b) The Borrower and the Association shall from time to time exchange views with respect to the evaluation and implementation of the recommendations and other conclusions contained in the documents referred. to in the foregoing paragraph (a). (c) The Borrower: (i) shall maintain or cause to be main- tained records adequate to show the use of the proceeds of the - 11 - Credit and to record the progress of each Sub-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 inspect any records and documents relevant to the Project, including records and documents which the consultants employed by the Borrower shall be required to keep for purposes of any Sub-project; and (iii) shall furnish or cause to be furnished 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. (d) The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently main- tained sound accounting practices the operations, resources and expenditures, in respect of each Sub-project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. - 12 ARTICLE V Termination Section 5.01. The date November 16, 1976, is hereby specified for the prrposes of Section 12.04 of the General Conditions. - 13 - ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Secretary of the Ministry of Finance of the Borrower is designated as a representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Secretary to His Majesty's Government Ministry of Finance Babar Mahal Kathmandu, Nepal Cable address: ARTHA Kathmandu For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 6145 (wUI) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment 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. KINGDOM OF NEPAL By /s/ P. B. Khatri Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Ernest Stern Regional Vice President South Asia