Burundi - Technical Assistance Project : Credit 0613 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 613 BU DEVELOPMENT CREDIT AGREEMENT (Technical Assistance Project) between REPUBLIC OF BURUNDI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated March 19, 1976 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated March 19, 1976, between REPUBLIC OF BURUNDI (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). -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 have the respective meaaings therein set forth and the following additional term has the following meaning, namely "Sub-project" means a particular study or project of technical assistance to be financed out of the proceeds of the Credit, as described in Schedule 2 to this Agreement. -3- 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 equiva- lent to one million five hundred thousand dollars ($1,500,000). 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 The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, 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 out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, the goods and services (other than advisers' and consultants' services) for the Project to be financed out of the proceeds of the Credit shall be procured in accordance with the Borrower's usual procurement procedures. Section 2.04. The Closing Date shall be June 30, 1980 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. -4- 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 June 15 and December 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each June 15 and December 15 commencing June 15, 1986, and ending December 15, 2025, each installment to and including the installment payable on December 15, 1995 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. 0 - 5- 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 and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. The purpose and scope of each Sub-project, the method of implementation thereof and the specific allocation there- to of proceeds of the Credit shall be determined by agreement between the Borrower and the Association. Section 3.03. (a) In carrying out each Sub-project, the Bor- rower shall appoint advisers or consultants whose qualifications, experience and terms and conditions of employment shall be satis- factory to the Association. (b) The Borrower shall appoint counterpart personnel to the advisers and consultants mentioned in paragraph (a) of this Sec- tion, as shall be agreed between the Borrower and the Association in respect of each Sub-project. Section 3.04. 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. 0 - 6 - Section 3.05. (a) The Bureau Technique d'Etudes of the Borrower shall be responsible for ensuring effective coordination among the ministries and agencies of the Borrower concerned in the implemen- tation of the Project. (b) 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 the advisers employed therefor, recommending modifications of the advisers' terms of reference or other terms and conditions of their employment, and reviewing the reports and recommendations of such advisers. (c) The Borrower shall take all reasonable measures to facili- tate the work of the advisers in the performance of their services for the Project and make available to them all information relevant to the Project. Section 3.06. (a) The Borrower shall furnish to the Associa- tion copies of the documents prepared by the consultants referred to in Section 3.03(a) of this Agreement, including 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). 01 -7- (c) The Borrower shall maintain or cause to be maintained records adequate to show the use of the proceeds of the Credit, and to record the progress of the Project (including the cost thereof); shall enable the Association's 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 the purposes of the Project; and shall furnish or causc to be furnished to the Association all such information as the Association shall reasonably request concerning the expenditure of the proceeds of the Credit and the Project. -8- ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consis- tently 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 any Sub-project. -9- ARTICLE V Termination Section 5.01. The date June 17, 1976 is hereby specified for the purposes of Section 12.04 of the General Conditions. - 10 ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of Finance of the Borrower is designated as 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: Ministere des Finances Botte Postale 1830 Bujumbura, Burundi Cable address: MINIFIN Bujumbura 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. - 11 - 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. REPUBLIC OF BURUNDI By Is! Cl&nent Sambira Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Is! Stanley Please Acting Regional Vice President Eastern Africa - 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 the amounts of the Credit to each Category and the percentage of expen- ditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Salaries and other 600,000 100% of total emoluments of expenditures advisers (2) Consultants' 765,000 100% of foreign services expenditures or 85% of total expenditures (3) Equipment and 65,000 100% of foreign vehicles expenditures or 85% of total expenditures (4) Unallocated 70,000 TOTAL 1,500,000 -13 - 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower; and (b) the term "total expenditures" means the aggregate of foreign expenditures and of expenditures in the currency of the Borrower and for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in compli- ance 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 the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. 4. Notwithstanding the provisions of paragraph 1 above, no with- drawals shall be made in respect of payments made for expenditures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 - 14 - 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 Cate- gory, the Association may, by notice to the Borrower: (i) reallo- cate to such Category, to the extent required to meet the 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) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that fur- ther withdrawals under such Category may continue until all expen- ditures 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 expendi- tures 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 reason- able opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the pro- ceeds of the Credit. - 15 - SCHEDULE 2 Description of the Project The Project, which is designed to strengthen the Borrower's planning and project preparation and implementation capability, consists of the utilization of: (i) about 10 man-years of advisory services to strengthen the Borrower's planning and statistical services, and its project preparation capability; and (ii) about 150 man-months of consultancy services to: (A) carry out pre- investment and feasibility studies and to prepare projects for financing; and (B) conduct special studies related to the implemen- tation of projects or economic policy. The Project is expected to be completed by December 31, 1979.