Niger - Forestry Project : Credit 0800 - Credit Agreement - Conformed

DFFICIL CREDIT NUMBER 800 NIR Development Credit Agreement (Forestry Project) between REPUBLIC OF NIGER and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated , 1978 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1978, between REPUBLIC OF NIGER (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 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 meanings therein set forth and the following additional terms have the following meanings: (a) "Ministry" means the Ministry of the Borrower respon- sible for rural development; (b) "Department" means the Forestry Department of the Ministry; (c) "Special Account" means the account referred to in Section 2.02 of this Agreement; and (d) "Project Unit" means the Unit described in Section 3.02 (b) of this Agreement. ARTICLE II The Credit 0 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 four million five hundred thousand dollars ($4,500,000). -2- Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of this Section and of Schedule 1 to this Agreement, as such Schedule may be amended from time to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. (b) The Association shall, promptly after the Effective Date, withdraw on behalf of the Borrower from the Credit Account and deposit in the Special Account referred to in paragraph (f) of this Section an initial amount in the currency of the Borrower not exceeding $200,0O0 equivalent and shall thereafter, at the request of the Borrower, further withdraw from the Credit Account and deposit in the Special Account such amounts as shall be required to reimburse the Borrower for payments made out of the Special Account for expenditures for the Project eligible for financing under the Development Credit Agreement, but only to the extent that the amount of any such deposit, together with any amount on deposit in the Special Account as of the date of such request, shall not exceed in the aggregate the equivalent of $200,000. (c) Notwithstanding the foregoing no further deposit shall be made to the Special Account when the total amount theretofore withdrawn from the Credit Account pursuant to paragraphs (a) and (b) of this Section, together with the amount of any special commitment entered into by the Association pursuant to Section 5.02 of the General Conditions shall have reached in the aggregate the equivalent of $4,300,000. (d) The Borrower shall be entitled to withdraw from the Credit Account pursuant to the provisions of paragraph (a) of this Section the unwithdrawn amount of the Credit in excess of $4,300,000 only to the extent that the Association shall have been satisfied that payments were made by the Borrower out of the Special Account for expenditures eligible for financing by withdrawal from the Credit Account. (e) If the Association shall have determined that payments have been made by the Borrower out of the Special Account for expenditures not eligible for financing by withdrawal from the Credit Account, the Borrower shall, upon notice from the Associ- ation, deposit in the Special Account an amount equal to the amount of such payments. 3 (f) The Borrower shall, for the purposes of the Project, open the Special Account in the Development Bank of the Republic of Niger at Niamey on terms and conditions satisfactory to the Association. Section 2.03. Except as the Association shall otherwise agree, procurement of the goods and civil works to be financed out of the proceeds of the Credit, shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1981 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later "kt date. 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 semiannually on January 15 and July 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each January 15 and July 15 commencing July 15, 1988, and ending January 15, 2028, each installment to and including the install- ment payable on January 15, 1998, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment there- after 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 Condi- tions. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project through the Ministry with due diligence and efficiency and in conformity with appropriate administrative, financial and agricul- tural practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. -4 Section 3.02. (a) In order to assist the Borrower in carrying out the Project, the Borrower shall employ such consultants and other experts, whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Borrower and the Association.* (b) In order to assist in the planning, management and monitoring of the execution of the Project, the Borrower shall establish a Project Unit with terms of reference satisfactory to the Borrower and the Association. Section 3.03. (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 s-uch 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 3.04. (a) The Borrower shall furnish to the Associa- tion, 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 and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use 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 cf the proceeds of the Credit and any relevant records and documents; and (iii) shall furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. T; -5- (c) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, the Borrower shall prepare and furnish to the Association e report, of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. 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 Project Unit to maintain separate accounts for each part of the Project and: (i) have its accounts for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by indepen- dent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than four months after the end of each such year, (A) certified copies of the accounts for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested; and (iii) furnish to the Association such other information concerning such accounts and the audit thereof as the Association shall from time to time reasonably request. Section 4.03. The Borrower shall ensure close cooperation and liaison in the carrying out of the Project among the Department of genie rural and the National Institute for Agricultural Research (INRAN) of the Ministry, the Ministry of Public Works, and the other agencies concerned. -6- ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the Special Account has been opened; (b) the Borrower has legally allocated to the Project two or three sites totalling 400 ha on the lower terraces of the Niger River for the purposes of Part A of the Project; (c) a Project Director, with qualifications and experience satisfactory to the Borrower and the Association, has been employed under terms and conditions satisfactory to the Borrower and the Association; and (d) a specialist in tropical forestry familiar with problems of forestry and rural economics as adviser to the Project Director and an agricultural engineer (genie rural specialist) to establish and manage the irrigated tree plantation areas included in the Project and to be responsible for a vehicle and machinery main- tenance unit, each with qualifications and experience and on terms and conditions of employment satisfactory to the Borrower and the Association, have been employed. Section 5.02. The date September 15, 1978 is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for Planning 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 du Plan Niamey Republic of Niger -7- Cable address: Telex: MINISTERE PLAN 5230 Niamey NIAMEY 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 64145 (WUI) 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 NIGER By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By 'Regional Vice President Western Africa -8- 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 % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil works 1,5A3,000 100% (2) Machinery and 544,000 100% vehicles (3) Equipment, sup- 349,000 100% plies and inputs (4) Consultants' 536,000 100% of foreign and experts' expenditures services (5) Operating costs 469,000 92% of machinery and vehicles (except salaries) (6) Unallocated 1,059,000 TOTAL 4,500,000 2. For the purposes of this Schedule the term "foreign expendi- tures" 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; provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods or services are supplied, expenditures in such currency for such goods or services shall be deemed to be "foreign expenditures". 3. The disbursement percentages have been calculated in com- pliance 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. 0 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of payments made for expendi- tures 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 para- graph 1 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 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 expendi- tures, and (ii) 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 Associ- ation's reasonable opinion, represents the amount of such expendi- tures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 10 - SCHEDULE 2 Description of the Project The Project is to support a three-year program of pilot activities to improve supplies of fuelwood for fuel and building poles, to prevent further destruction of forest vegetation around the urban areas, to strengthen the Department and its extension services in rural areas and to prepare a national forestry program. The Project includes the following: Part A: Irrigated Plantations The establishment on the lower terraces of the Niger River of pilot irrigated tree plantations totalling about 400 ha. Part B: Rainfed Plantations The establishment of pilot rainfed tree plantations of about 700 ha in classified forests near main urban areas (of which at least half near Niamey and the remainder near Tahoua, Maradi and Zinder). Part C: Rural Forestry The procurement for the Department of vehicles, equipment, fencing and nursery supplies to improve the implementation of the Department's activities in rural areas. Part D: Training The training of about 50 field staff overseers and tech- nicians in rural forestry activities through courses to be offered at the National Agricultural Training Institute (Institut Pratique de Developpement Rural (IPDR)) at Kolo, following curricula satis- factory to the Association. Part E: Research Carrying out research in production and use of woods by the National Institute for Agricultural Research (Institut National de la Recherche Agronomique du Niger (INRAN)); the procurement of materials and equipment for the purpose. - 11 - Part F: Maintenance The establishment and operation of a unit for the maintenance of machinery and vehicles of the Department. * * * The Project is expected to be completed by June 30, 1981. e.1 e- e - 12 - SCHEDULE 3 Procurement A. 1. Civil works and buildings will be carried out under force account with the assistance of the Department of Genie Rural Development of the Ministry of Rural Development. 2. Contracts for the installation of pumping stations for irrigated plantations and for the purchase of machinery, vehicles, equipment and inputs will be awarded following competitive bidding advertised locally. B. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts estimated to cost the equiva- lent of $50,000 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 Bor- rower 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 shall furnish to the Association, in sufficient time for its review, a detailed report, by the Project Unit, on the evaluation and comparison of the bids received, together with the recommendations for award of the Project Unit and such other information as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with this Schedule, promptly inform the Borrower and state the reasons for such determination. - 13 - (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. 2. With respect to each contract to be financed out of the proceeds of the Credit and not governed by the preceding para- graph, 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 the respective 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 this Schedule, promptly inform the Borrower and state the reasons for such determination. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the day of 197L. FOR SECRETARY