India - Uttar Pradesh Social Forestry : Credit 0925 - Project Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 925 IN Projeet Agreement, <Uttar Pradesh Social Forestry Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and THE STATE OF UTTAR PRADESH Dated June 21, 1979 '4t CREDIT NUMBER 925 IN PROJECT AGREEMENT AGREEMENT- dated June 21, 1979, between INTERNATIONAL DEVEL- OPMENT ASSOCIATION (hereinafter called the Association) and THE STATE OF UTTAR PRADESH, acting by its Governor (hereinafter called Uttar Pradesh). WHEREAS (A) by the Development Credit Agreement of even date herewith between India, acting by its President (here- inafter called the Borrower) and the Association, the Associa- tion has agreed to make available to the Borrower an amount. in various currencies equivalent to twenty-three million dollars ($23,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that Uttar Pradesh agree to undertake such obligations toward the Association as are herein4fter set forth; and (B) Uttar Pradesh, in consideration of the Association's entering into the Development Credit Agreement with the Borrower, has agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. Uttar Pradesh shall carry out the Project described in Sche.dule 2 to the Development Credit Agreement with due diligence and efficiency and in conformity with appro- priate administrative, financial and engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. 4P4 -2- Section 2.02. In order to facilitate the carrying out of the Project, Uttar Pradesh shall establish, by December 31, 1979 or such later date as the Association may otherwise agree: (a) a State Policy Review Committee with responsibility for, inter alia, overall policy decisions affecting the Project; (b) a Project Implementation Committee with responsibility for, inter alia, coordinating the activities of the various departments or agencies of Uttar Pradesh concerned with the Project; and (c) a District Level Committee in each district of the Project Area with responsibility for, inter alia, coordinating interdepartmental activities in the district. Section 2.03. Except as the Association shall otherwise agree, contracts for the purchase of goods or for civil works to be financed out of the proceeds of the Credit shall be procured in accordance with the provisions of the Schedule to this Agreement. Section 2.04. (a) Uttar Pradesh undertakes to insure, or make adequate provision, for the insurance of, the imported goods to be financed out of the proceeds of the Credit made available to it by the Borrower against hazards incident to the acquisition, transportation and delivery thereof to the place of use or instal- lation, and for such insurance any indemnity shall be payable in a currency freely usable by Uttar Pradesh to replace or repair such goods. (b) Except as the Association may otherwise agree, Uttar Pradesh shall cause all goods and services financed out of the proceeds of the Credit made available to it by the Borrower to be used exclusively for the Project. Section 2.05. (a) Uttar Pradesh shall furnish or cause to be furnished to the Association, promptly upon their prepara- tion, 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) Uttar Pradesh: (i) shall maintain or cause to be main- tained records and procedures adequate to record and monitor *~Z' -3- the progress of the Project (including its cost and the bene- fits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit made available to it by the Borrower, 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 such proceeds 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 expenditures of such proceeds of the Credit so made available to it and the goods and services financed out of such proceeds. (c) Without limitation to the generality of paragraph (b) above, Uttar Pradesh shall furnish to, the Association quarterly Planting Progress Reports. (d) Promptly after completion of the Project, but any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Associ- ation and Uttar Pradesh, Uttar Pradesh shall prepare and furnish to the Association, a 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 Associ- ation and Uttar Pradesh of their respective obligations under this Agreement and the accomplishment of the purposes of the Credit. Section 2.06. (a) Uttar Pradesh shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. OI (b) Uttar Pradesh shall promptly inform the Association of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by Uttar Pradesh of its obligations under this Agreement. Section 2.07. Uttar Pradesh 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 -4- required for carrying out the Project and, if requested by the Association, shall furnish to the Association, promptly after such acquisition, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. Section 2.08. In carrying out Part A.1 of the Project, Uttar Pradesh shall, except as the Association may otherwise agree, cause the plantings ch the sides of roads to be confined to national, state and liin district roads, and plantings on the sides of canals to be confined to main and branch canals. Section 2.09. Uttar Pradesh shall prepare and furnish to the Association a model contract, satisfactory to the Association, on the establishment of village plantations, with provisions covering, inter alia, the following matters: (a) the role and involvement of the village; (b) the contribution to be made by SFD; and (c) the respective benefits to be shared between the village and SFD. Section 2.10. Uttar Pradesh shall prepare and furnish to the Association, by December 31, 1979, a research program, satisfac- tory to 'the Association, designed to meet the needs of social forestry in the Project Area. Section 2.11. Uttar Pradesh shall: (a) furnish or cause to be furnished to the Association, operational and financial plans for cost recovery purposes, for ten representative village plantations established under the Project, by March 31, 1980; and (b) ensure that at least the labor and material costs incurred by SFD in establishing plantings will be recovered. Section 2.12. For the purposes of carrying out Paii B of the Project, Uttar Pradesh shall: (a) establish, in consultation with the Association, by April 1, 1980, and thereafter maintain and operate, a Monitoring and Evaluation Unit; -5- (b) prepare and furnish to the Association, for its com- ments, by June 30, 1980, a work program for the said Monitoring and Evaluation Unit; (c) establish, by April 1, 1980, at least three Communica- tion Units. Section 2.13. Uttar Pradesh shall ensure that field staff will live in or near the areas assigned for their operations and, to this end, shall provide said staff with such low-cost housing or rental allowances as may be necessary for such purpose. Section 2.14. In order to ensure the mobility of SFD field staff, Uttar Pradesh undertakes to make available: (a) to all eligible staff who are in need of credit for the purchase of motorcycles or bicycles, such credit on terms and conditions designed to provide incentive for the purchase of said motorcycles or bicycles; and (b) such financial incentive, including appropriate travel- ling allowances, as required to encourage optimum use of the motorcycles and bicycles purchased pursuant to paragraph (a) above. ARTICLE III Financial Covenants Section 3.01. Uttar Pradesh 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. Section 3.02. (a) Uttar Pradesh shall cause its Forest Department to maintain separate accounts of expenditures made under the Project. (b) Uttar Pradesh shall: (i) have said accounts and finan- cial statements in respect of the Project for each fiscal year audited, in accordance with sound auditing principles consistently applied by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than nine months after the end of each such year, (A) certified copies of said accounts for such year as so audited 6 - and (B) the report of such audit by said auditor, of such scope and in such detail as the Association shall have reasonably J requested; and (iii) furnish to the Association such other infor- mation concerning the said accounts and the audit thereof as the Association shall from time to time reasonably request. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of the Association and Uttar Pradesh thereunder shall terminate on the earlier of the following two dates: (i) a date 25 years after the date of this Agreement; or (ii) the date on which the Develoment Credit Agreement shall terminate in accordance with its terms. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (i) of this Section, the Association shall promptly notify Uttar Pradesh of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the Development Credit Agreement. ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter -7-k speéified or at such other address as such party shall have,1 designated by notice to the party giving such notice or making such request. The addresses so specified are: 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. For Uttar Pradesh: Secretary, Forest Department Government of Uttar Pradesh Vidhan Bhavan Lucknow, Uttar Pradesh India Cable address: SECRETARY FORESTS Lucknow, India Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf, of Uttar Pradeh may be taken or executed by the Secretary, Forest Department or such other person or per- sons as Uttar Pradesh shall designate in vriting. Section 5.03. Uttar Pradesh shall furnish to the Association sufficient evidence of the authority and the authenticated speci- men signature of the person or persons who will,. on behalf of Uttar Pradesh, take any action or execute any documents required or permitted to be taken or executed by Uttar Pradesh pursuant to any of the provisions of this Agreement. Section 5.04. This Agreement may be executed in several counterparts, each of whigh shall be an original, and all collec- tively but one instrument. .- 9 SCHEDULE Procurement A. General Procedure I. Except as provided in PartsA*2 and A.3 hereunder, all con- tracts shall be let on the basis of competitivelbidding advertised locally under"..procedures satisfactory to the Association. 2.1 Motorcycles and bicycles may be procured by, individual staff through the provision of loans made by Uttar Pradesh out of the proceeds of the Credit. 3. Civil works, not'in excess of 30% of the total of' civil T#brks financed out of =,the' -proceeds of the Credit and' all 'plantation works may be carried out by force accounte B. Review of Procurement Decisions by the Association I.- With respect to all contracts for civil works, equipment and vehicle \ 3 estimated to cost '.,the equivalent of $ 100,60"0 'or more: (a) Before bids are invited.., Uttar Pradesh shall furnish to-the AsOciation.' for its coLments, the text of the Invita- tions to bid and the specifications and other bidding documents, together with a'description of the advertising procedures' to be followed for the bidding, andshall make'2such modifications in the said documents or procedures as the Ass/ociat.ion shall reasoindbly request. Any further modification to the bidding documents ",shall require the Association's concurrence before, it is issite'd to the prospective bidders. (b) After bids have been received and evaluated, Uttar Pradesh shall, before a final decision on the award is ma de, inform the Association of the name of the bidder to which it -intends to award the contract and shall furnish to the Associ- ation, in sufficient time for its review,. a detailed report on the evaluation and comparison of the bids' received, and such other information.as the A,6,socilation shall reasonably request. The Association shall-, if it determines that the intended award would be inconsistent with this Schedule, promptly inform Uttar Pradish and state the reasons for such,determination. -10- (c) The terms and conditions of the contract shall not, without the Association' s doncurrence, materially differ from those on which bids were asked. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the AssociaQion 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, -Uttar Pradesh 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 the provisions of this Schedule, promptly inform Uttar Pradesh and state the reasons for such determination. 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more 1than 15% of the original price, the Borrower shall inform the Association of the proposed modification, waiver, extension or change order and the reasons therefor. The Association, if it determines that the proposal would be inconsistent- with the provisions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination. tjA k4