Burundi - Forestry Project : Credit 0918 - Development Credit Agreement - Conformed

 CONFORMED COPY SPECIAL ACTION CREDIT NUMBER 14 BU Special Action Credit Agreement (Forestry Project) between REPUBLIC OF BURUNDI and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL ACTION ACCOUNT established with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMMUNITY Dated June 1, 1979  SPECIAL ACTION CREDIT NUMBER 14 BU SPECIAL ACTION CREDIT AGREEMENT AGREEMENT, dated June 1, 1979, between REPUBLIC OF BURUNDI (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the Special Action Account established with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMMUNITY. WHEREAS (A) by the Agreement, dated May 2, 1978, between the International Development Association (hereinafter called IDA) and the European Economic Community and its Member States there has been established by IDA a Special Action Account constituted of by the funds which shall be contributed by the Member States the European Economic Community and administered by IDA, acting as Administrator of such Special Action Account, for the purpose of, and in accordance with, the provisions of said Agreement; (B) the Borrower has requested the Administrator for assis- tance from the resources of the Special Action Account in the financing of a project described in Schedule 2 to this Agreement and the Administrator has determined that such assistance would be in accordance with the provisions of the Agreement of May 2, 1978 referred to above; (C) the Borrower has also requested IDA to provide addi- tional assistance towards the financing of the Project and by an and IDA agreement of even date herewith between the Borrower IDA is (hereinafter called the Development Credit Agreement) agreeing to provide such assistance in an aggregate principal amount equivalent to four million three hundred thousand dollars ($4,300,000) (hereinafter called the IDA Credit); (D) the Borrower intends to contract from the French Repub- lic, acting through its Fonds d'Aide et de Coop6ration, a grant (hereinafter called the FAC Grant) in an amu,nt equivalent to about $1,860,000 to assist in financing the Project on the terms and conditions set forth in an agreement (hereinafter called the FAC Grant Agreement) to be entered into between the Borrower and FAC; (E) the Borrower has requested the United Nations Develop- ment Programme to assist the Borrower in financing the training included in the Project through a grant of $701,650 (hereinafter called the UNDP Grant) to be made available under an agreement between the UNDP, the Borrower and the Food and Agriculture Organization (hereinafter called the UNDP Grant Agreement); and  - 2 - WHEREAS the Administrator has agreed, on the basis inter alia of the foregoing, to extend the Special Action Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: 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 In,ernational Development Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein, subject, however, to the following modifications thereof (said General Conditions Applicable to Development Credit Agreements of the International Development Association, as so modified, being hereinafter called the General Conditions): (a) the term "Association", wherever used in the General Conditions, means the International Development Association acting as the Administrator of the Special Action Account referred to in the Preamble to this Special Action Credit Agreement; (b) the terms "Development Credit Agreement" and "Credit", wherever used in the General Conditions are amended to read "Special Action Credit Agreement" and "Special Action Credit", respectively; (c) Sections 4.01, 4.02, 4.03, 4.04 and the second sentence of Section 5.01 are deleted; and (d) in Sections 6.02 and 7.01, the term "Association" shall also include the International Development Association acting in its own capacity. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Member States" means the Member States of the European Economic Community, i.e. Belgium, Denmark, The Federal Republic of  - 3 - Germany, France, Ireland, Italy, Luxembourg, The Netherlands and The United Kingdom; (b) "Administrator" means the International Development Association acting as Administrator of the Special Action Account referred to in the Preamble to this Special Action Credit Agree- ment; and (c) "DWF" means the Department of Waters and Forests in the Borrower's Ministry of Agriculture, Livestock and Rural Develop- ment. ARTICLE II The Special Action Credit Section 2.01. The Administrator agrees to lend to the Borrower on the terms and conditions in the Special Action Credit Agreement set forth or referred to, the following currency amounts: One million four hundred sixty- seven thousand Belgian francs (BFl,467,000); One hundred eighty- three thousand Danish kroner (DK183,000); Seven hundred five thousand Deutsche marks (DM705,000); Seven hundred forty- six thousand French francs (FF746,000); One thousand six hundred Irish pounds (Irkl,600); Eighty-six million five hundred thirteen thousand Italian lire (ItL86,513,000); Forty-six thousand Luxembourg francs (LF 46,000); One hundred ninety- five thousand Netherlands guilders (Dfl 195,000); and One hundred seventy- nine thousand eight hundred Pounds sterling (il79,800).  Section 2.02. (a) The proceeds of the Special Action 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 Administrator, for expenditures made (or, if the Administrator 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 Special Action Credit. (b) Withdrawals shall be made only on account of expendi- tures: (i) in the currency of the Borrower, or (ii) for goods produced in, or services supplied from, (A) any of the Member States and (B) any developing country which is a member of the International Development Association and could be the recipient of a special action credit, as determined by the Administrator. (c) Withdrawals from the Credit Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Special Action Credit have been paid or are payable or, at the option of the Administrator, in such currency or currencies as the Administrator shall from time to time select. Section 2.03. Except as the Administrator shall otherwise agree, procurement of the civil works to be financed out of the proceeds of the Special Action Credit shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1982, or such later date as the Administrator shall establish. The Administrator shall promptly notify the Borrower of such later date. Section 2.05. (a) The Borrower shall pay to the Administrator a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum, on each of the various currency amounts with- drawn from the Credit Account and outstanding from time to time The amounts of service charge in various currencies so found, and additional service charges (if any) payable pursuant to Section 3.02 of the General Conditions, shall be payable in the currency of the United States of America, or in another currency selected by the Administrator in accordance with the provisions of para- graph (b) of this Section, after their conversion into such currency on the basis of exchange rates determined in accordance with the provisions of Section 4.05 of the General Conditions.  - 5 - (b) If the Administrator shall at any time determine that the currency so specified or selected is not freely convertible or freely exchangeable by the International Development Association for currencies of other members of the International Development Association for the purposes of its operations, service charges shall be payable in such other currency as the Administrator may select for such purposes and shall notify in writing to the Borrower, whereupon, commencing thirty days after the date of such notice, service charges shall be payable in such other currency. Secoon 2.06. Service charges shall be payable semiannually on May 1 and November 1 in each year. Section 2.07. (a) The Borrower shall repay the principal amount of the Special Action Credit in semiannual installments payable on each May 1 and November 1 commencing November 1, 1989 and ending May 1, 2029, each installment to and including the installment payable on May 1, 1999, 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. (b) Each of the installments payable pursuant to paragraph (a) of this Section shall be the aggregate of such amounts in the various currencies withdrawn from the Credit Account as shall be found by multiplying the total amount in each currency so with- drawn by the applicable installment percentage as specified in paragraph (a) of this Section, unless the Administrator shall otherwise specify by notice to the Borrower prior to each payment date for the purpose of avoiding the payment of fractional cur- rency amounts. (c) If withdrawal shall have been made in a currency which the Administrator shall have purchased with one or more other currencies for the purpose of such withdrawal, the portion of the Special Action Credit so withdrawn shall, for the purpose of paragraph (b) of this Section, be deemed to have been withdrawn in the currency or currencies used by the Administrator for such purchase in the amounts of such currency or currencies so used. (d) The Administrator will, at the request of the Borrower and on such terms and conditions as the Administrator shall determine, use its best efforts to purchase any currency needed by the Borrower for payment of principal required under this Agree- ment upon payment by the Borrower of sufficient funds therefor in  - 6 - a currency or currencies to be specified by the Administrator from time to time. In purchasing the currencies required the Adminis- trator shall be acting as agent of the Borrower and the Borrower shall be deemed to have made any payment required under this Agreement only when and to the extent that the Administrator has received such payment in the currency or currencies required. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out Part A of the Project through DWF and Parts B and C of the Project through its Director General of Agriculture with due diligence and effi- ciency and in conformity with appropriate administrative, finan- cial, forestry and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without limitation upon the foregoing, the Borrower shall establish and thereafter maintain a Project revolving fund, to be managed by the Project Manager referred to in para- graph (c) of this Section under the direct control of the Director of Waters and Forests of the Borrower, from which the administra- tive expenses incurred on account of the Project shall be paid. The Borrower shall ensure that on the first day of each calendar quarter not less than $200,000 equivalent will be available in the fund. (c) The Borrower shall establish and thereafter maintain within its DWF a Project Management Unit responsible for the establishment and operation of the nurseries and plantations under Part A of the Project. Such Unit will include the positions of Pr.,ject Manager, Deputy Project Manager, two silviculturists, three deputy silviculturists and an accountant, each with terms of reference and requirements for candidates' qualifications and experience which shall have been approved by the Administrator, as well as competent support staff in adequate numbers. Such positions shall be filled following exchanges of views between the Borrower and the Administrator on the proposed candidates. Section 3.02. The terms of reference for each of the studies to be carried out under Part C of the Project shall require the concurrence of the Administrator befo-:e the start of each such study.  - 7 - 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 Special Action Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insur- ance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (b) Except as the Administrator shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Special Action Credit to be used exclusively for the Project. Section 3.04. (a) The Borrower shall furnish to the Adminis- trator, promptly upon their preparation, the plans, specifi- cations, reports, contract documents and construction and procurement schedules for the Project, and any material modifica- tions thereof or additions thereto, in such detail as the Admin- istrator shall reasonably request. (b) The Borrower: (i) shall maintain records and proce- dures adequate to record and monitor the progress of the Project (including its cost and, where appropriate, the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Special Action Credit, and to disclose their use in the Project; (ii) shall enable the Administrator's accredited representatives to visit the facilities and construc- tion sites included in the Project and to examine the goods financed out of the proceeds of the Special Action Credit and any relevant records and documents; (iii) shall prepare and furnish to the Administrator not later than March 31 in each year a report on the progress of the training carried out under Parts B and C of the Project during the immediately preceding year; (iv) shall provide the Administrator during the Project implementation period: (A) with semiannual reports on the progress in the carry- ing out of the Project; and (B) not later than three months after the end of each fiscal year, with an annual report on the progress in the carrying out of the Project, all such reports to be of such scope and in such detail as the Administrator shall reasonably request; and (v) shall furnish to the Administrator at regular intervals all such information as the Administrator shall reason- ably request concerning the Project, its cost and, where appro- priate, the benefits to be derived from it, the expenditure of the proceeds of the Special Action Credit and the goods and services financed out of such proceeds.  - 8 - (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 Administrator, the Borrower shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator 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 Administrator of their respective obligations under the Special Action Credit Agreement and the accomplishment of the purposes of the Special Action Credit. Section 3.05. 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 the establishment and operation of the nurseries and plantations under Part A of the Project. Section 3.06. The Borrower shall prepare and furnish to the Administrator for its approval detailed planting programs for the eucalyptus and pine plantations referred to under Part A of the Project prior to the commencement of planting thereunder. ARTICLE IV Other Covenants Section 4.01. (a) 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, including, without limitation to the foregoing, separate accounts reflecting all expenditures described in Categories (1) and (2) of the table in paragraph 1 of Schedule 1 to this Agreement on account of which withdrawals are requested from the Credit Account on the basis of certificates of expenditure. (b) The Borrower shall retain, until one year after the Closing Date, all records (orders, invoices, bills, receipts and other documents) evidencing the expenditures on account of which withdrawals are requested from the Credit Account on the basis of certificates of expenditure and shall enable the Administrator's accredited representatives to examine such records.  - 9 - (c) The Borrower shall: (i) have the separate accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested, including, without limitation to the fore- going, an opinion by said auditors as to whether the proceeds of the Special Action Credit withdrawn from the Credit Account on the basis of certificates of expenditures have been used to make payments for goods received, or works or services performed, and that such goods, works and services were eligible for financing under this Agreement and were used in the carrying out of the Project; and (iii) furnish to the Administrator such other infor- mation concerning said accounts, records and expenditures and the audit thereof as the Administrator shall from time to time reason- ably request. Section 4.02. The Borrower shall cause the nurseries and plantations established under Part A of the Project to be operated under the supervision of qualified and experienced management assisted by competent staff in adequate numbers, and shall cause their respective buildings, equipment, plantings, roads and other facilities to be adequately maintained, and the necessary repairs and renewals thereof to be made, all in accordance with appropri- ate administrative, financial, forestry and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 4.03. The Borrower shall: (i) sell the seedlings produced by the nurseries establ'ished under Part A (1) of the Project at prices adequate to recover their full production costs (excluding only expatriate management costs) subject to ensuring adequate incentives to farmers for tree planting and shall consult periodically with the Association on the levels of such prices; and (ii) introduce by December 31, 1980, a system of charges for all forest products regulated by the Borrower, setting said charges at such levels as shall be adequate to progressively cover the full production costs of forest products, taking into account the need to protect forest resources. Section 4.04. (a) The Borrower shall at least once every year consult with the Administrator on its general pricing and marketing policies that apply to its forestry sub-sector.  - 10 - (b) The Borrower shall ensure that the stumpage rates charged for wood produced by the plantations established under Part A of the Project shall be sufficient to recover the full investment, operation and maintenance costs of the plantations. Without limitation upon the foregoing, the Borrower shall, before June 30, 1984, or such later date as the Administrator may agree, consult with the Administrator on the marketing and pricing arrangements that shall apply to the eucalyptus wood produced by the plantation at Mageyo and on the marketing, processing and pricing arrangements that shall apply to the pine wood produced by the plantation at Vyanda. ARTICLE V Remedies of the Administrator Section 5.01. (a) For the purposes of Section 6.02 of the General Conditions the following additional events are specified pursuant to paragraph (h) thereof, namely, that subject to para- graph (b) of this Section: (i) the right of the Borrower to withdraw the proceeds of any grant, loan or credit (including the IDA Credit, the FAC Grant and the UNDP Grant) made to the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the agreement providing therefor; or (ii) any such loan or credit shall have become due and payable prior to the agreed maturity thereof. (b) The foregoing shall not apply if: (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and condi- tions consistent with the obligations of the Borrower under this Agreement. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (d) thereof, namely, that the event speci- fied in paragraph (a) (ii) of Section 5.01 of this Agreement shall occur.  - 11 - ARTICLE VI Effective Date; Termination Section 6.01. The following event is specified as an addi- tional condition to the effectiveness of the Special Action Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that all conditions precedent to the effectiveness of the Development Credit Agreement, except for the effectiveness of this Agreement, have been fulfilled. Section 6.02. The date September 5, 1979, is hereby speci- fied for the purposes of Section 12.04 of the General Conditions. Section 6.03. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Special Action Credit Agreement shall terminate or on a date twenty-five years after the date of this Agreement, whichever shall be the earlier. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. 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 7.02. The following 'addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministry of Finance P.O. Box 1830 Bujumbura, Burundi Cable address: Telex: MINFIN MINAFFEXT 65 Buja Bujumbura, Burundi  - 12 - For the Administrator: Administrator of the Special Action Account (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 BURUNDI By Is/ Clement Sambira Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL ACTION ACCOUNT established with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMMUNITY By /s/ W. Wapenhans Regional Vice President Eastern Africa  - 13 - SCHEDULE 1 Withdrawals of the Proceeds of the Special Action Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Special Action Credit, the allocation of the amounts of the Special Action Credit to each Category and the percentage for items so to be financed in each Category: Amount of the Special Action Credit % of Allocated (Expressed Expenditures Category in Dollar Equivalents) to be Financed (1) Civil works 800,000 90% (buildings) (2) Studies and 300,000 100% of foreign trials expenditures and 90% of local ex- penditures (3) Unallocated 100,000 TOTAL 1,200,000 2. The total dollar amount shown in the foregoing table shall be adjusted from time to time as required to reflect the aggregate dollar equivalent of the unwithdrawn currency amounts in the Credit Account; the unallocated dollar amount shall be adjusted accordingly. 3. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of, and for goods produced in or services supplied from, (i) any of the Member States and (ii) any developing country, other than the Borrower, which is a member of the Inter- national Development Association and could be the recipient of a Special Action Credit, as determined by the Administrator; and  - 14 - (b) the term "local expenditures" means expenditures in the currency of the Borrower and f or goods or services supplied from the territory of the Borrower. 4. The disbursement percentages have been calculated in com- pliance with the policy of the Administrator that no proceeds of the Special Action 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, procure- ment 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 Special Action Credit decreases or increases, the Administrator 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 Administrator. 5. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expendi- tures prior to the date of this Agreement. 6. Notwithstanding the allocation of an amount of the Special Action Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Administrator has reasonably estimated that the amount of the Special Action Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Administrator may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Special Action Credit which are then allocated to another Category and which in the opinion of the Administrator are not needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated short- fall, 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. 7. If the Administrator 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 Special Action Credit Agreement, no expenditures for such item shall be financed out of the proceeds of the Special Action Credit and the Admin- istrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under the Special  - 15 - Action Credit Agreement, by notice to the Borrower, cancel such currency amounts of the Special Action Credit as, in the Adminis- trator's reasonable opinion, represent the currency amounts which would otherwise have been eligible for withdrawal out of the proceeds of the Special Action Credit in respect of such expendi- tures.  - 16 - SCHEDULE 2 Description of the Project The Project is the first stage of the Borrower's long-term program for the development of basic forestry services and planta- tions supplying fuel wood, building poles and timber and is designed to assist the Borrower in establishing long-term produc- tion and marketing policies for its forestry sub-sector. The Project consists in the following: Part A: 1. Establishment of 30 nurseries at the communal level to produce eucalyptus seedlings for sale to communes and private individuals; staffing of the nurseries with staff capable of providing forestry extension services to communes and farmers. 2. Establishment of a 2,000 ha short-rotation eucalyptus plantation at Mageyo to supply charcoal, firewood and construction poles to the population of Bujumbura. 3. Establishment of a 5,000 ha pine plantation at Vyanda (Bururi) to produce saw timber. 4. Construction of offices, workshops and housing and the procurement of vehicles and equipment. Part B: In-service training of local Project management and adminis- trative staff and training of local staff for forestry services. Part C: Studies of Burundi's energy use and needs, trials of new techniques to produce charcoal and training of local operators and supervisors in their use, development of new designs for cooking stoves, and preparation of future forestry projects. The Project is expected to be completed by September 1984.  - 17 - SCHEDULE 3 Procurement A. Competitive Bidding Civil works for the consttction of offices and housing shall be procured under contracts awarded in accordance with procedures satisfactory to the Administrator on the basis of competitive bidding advertised locally. B. Review of Procurement Decisions by the Administrator 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for civil works estimated to cost more than the equivalent of $20,000: (a) Before bids are invited, the Borrower shall furnish to the Administrator, for its comments, 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, and shall make such modifications in the said documents or procedures as the Administrator shall reasonably request. Any further modification to the bidding documents shall require the Administrator'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 Administrator of the name of the bidder to which it intends to award the contract and shall furnish to the Administrator, in sufficient time for its review, a detailed report on the evalua- tion and comparison of the bids received, and such other informa- tion as the Administrator shall reasonably request. (c) The terms and conditions of the contract shall not, without the Administrator's concurrence, materially differ from those on which bids were asked. (d) Two conformed copies of the contract shall be furnished to the Administrator promptly after its execution and prior to the submission to the Administrator of the first application for withdrawal of funds from the Credit Account in respect of such contract.  - 18 - 2. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Administrator, promptly after its execution and prior to the submission to the Administrator 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 respec- tive bids, recommendations for award and such other information as the Admi-istrator shall reasonably request. The Administrator 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. 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 than 15% of the original price, the Borrower shall inform the Administrator of the proposed modification, waiver, extension or change order and the reasons therefor. The Administrator, 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. C. Procurement without Contracting Civil works for the construction of workshops shall be carried out by force account.