Romania - Mostistea And Calmatui Irrigation And Drainage Project : Loan 1670 - Loan Agreement - Conformed

LOAN NUMBER 1670 RO Loan Agreement (Mostistea and Calmatui Irrigation and Drainage Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and BANCA PENTRU AGRICULTURA SI INDUSTRIE ALIMENTARA Dated ,0 1979 LOAN NUMBER 1670 RO LOAN AGREEMENT AGREEMENT, dated (2/z-e / , 1979, between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (herein- after called the Bank) and BANCA PENTRU AGRICULTURA SI INDUSTRIE ALIMENTARA (hereinafter called the Borrower). ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agree- ments of the Bank being hereinafter called the General Condi- Lions). 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) "CELIF" the Central for the Exploitation of Land Recla- mation Works, established by Decision No. 178/1974 of the Council of Ministers of Romania; (b) "Charter" means the Charter of the Borrower approved by Decree No. 55 of 1970 of the Council of State of Romania, approved by Law o. 15 of 1970 of Romania, as amended from time to time; (c) "Cooperative Farm" means any Cooperative for Agricul- tural Production operating under a charter adopted by the Third Congress of the National Union of Cooperatives for Agricultural Production held in April 1977, and approved by Decree No. 346 of September 28, 1977, of the Council of State of Romania, including any subsequent amendments of such charter; (d) "DIFCA" means the Department of Land Reclamation and Agricultural Construction in the Ministry of Agriculture and Food Industry cf Romania; -2- (e) "Foreign Trade Bank" means the Romanian Bank for Foreign Trade, established by Law No. 16/1968 of Romania; (f) "Project Land" means all land which shall be served by the irrigation or drainage facilities constructed or installed under the Project, including land cultivated by State Farms and Cooperative Farms and plots given in use to members of Cooperative Farms; (g) "Lei" means the national currency of Romania; (h) "Romania" and "Guarantor" both mean The Socialist Republic of Romania; (i) "Romagrimex" means the Romanian Foreign Trade Enter- prise of the Ministry of Agricu ture and Food Industry of Romania, established under Law No. 11 of 1971 of Romania, and operating under Decision No. 938 of August 14, 1972 of the Council of Ministers of Romania, as amended from time to time; (j) "State Farm" means any Agricultural State Enterprise established and operating under Law No. 11/1971 of Romania, as amended from time to time; and (k) "NWC" means the National Water Council established by Decree No. 156/1975 of the Council of State of Romania. ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to seventy million dollars ($70,000,000). Section 2.02. (a) The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Sched- ule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Bank and the Borrower for expen- ditures made (or, if the Bank shall so agree, to be made) in respect of the reasonably cost of goods and services required for the Project described in Schedule 2 to this Agreement and selected by agreement between the Bank and the Borrower. -3- (b) The Borrower may designate the Foreign Trade Bank as representative of the Borrower for the purpose of taking any action required or permitted to be taken under the provisions of paragraph (a) of this Section and Article V of the General Conditions. Section 2.03. Except as the Bank shall otherwise agree, contracts for the purchase of equipment, materials and spare parts required for the Project and selected by agreement between the Bank and the Borrower to be financed out of the proceeds of the Loan, shall be governed by the provisions of Schedule 4 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1986, or such later date as the Bank and the Borrower may agree. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of seven per cent (7.00%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semiannually on April 1 and October 1 in each year. Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out or cause to be carried out the Project with due diligence and efficiency and in conformity with appropriate agricultural, engineering, financial and administrative practices as follows: (a) the Borrower shall supervise the execution of the Project, including the procurement of the goods and services required therefor; -4- (b) DIFCA and NWC shall in close cooperation with each other: (i) make suitable arrangements for the procurement of ,he goods and services required for the Project; and (ii) make or cause to be made a timely supply of the general engineering services required for the Project, and make timely arrangements with the appropriate construction organizations of Romania as required for the civil works and the installa- tions included in the Project. (c) DIFCA shall have overall responsibility for the co- ordination of the implementation of the Project and for the activities of the other departments and agencies of Romania related thereto. Section 3.02. The Borrower shall cause adequate provision to be made for the insurance of the imported goods to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of importation into the territory of Romania, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods or to replace such goods. Section 3.03. Except Ls the Bank and the Borrower shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Loan to be used exclusively for the Project. ARTICLE IV Ahievement of the Purposes of the Project Section 4.01. The Bank and the Borrower agree that, in order to realize the purposes of the Project, it shall be neces- sary that: (a) the widening and deepening of the Calmatui River, which is under implemenzation by Romania to increase its capacity to adequately cope with the runoff generated by heavy precipitation and to effectively act as the main drain for the drainage works to -5- be constructed under the Project, will be completed by December 31, 1981; (b) the irrigation and drainage facilities constructed or installed under the Project will be operated and maintained by CELIF in close cooperation with the State Farms and Cooperative Farms cultivating Project Land, and the electric power facilities serving the irrigation and drainage facilities constructed or installed under the Project will be operated and maintained by the competent electric power enterprises of Romania, and all necessary repairs and renewals of such facilities will be made from time to time, all in accordance with appropriate agricultural, engineering and administrative practices; and (c) the cultivators of Project Land will be supplied with agricultural, technical and advisory services, seeds, fertilizers, pesticides, agricultural financing and marketing facilities, and other agricultural inputs, all as required to make optimal produc- tive use of such Land. The Borrower shall, to the extent that it is authorized under the laws of Romania, ensure that the requirements set forth in this Section will be met. ARTICLE V Management and Operations of the Borrower; Financial Covenants Section 5.01. The Borrower shall manage and conduct its operations and affairs in accordance with appropriate admini- strative and financial standards and practices and in accordance with the Charter. Section 5.02. The Borrower shall maintain records adequate to reflect in accordance with consistently maintained appropriate accounting practices its operations and financial condition. Section 5.03. (a) It is not the practice of the Borrower to create liens as security for debt. Accordingly, the Borrower represents that at the date of this Agreement no lien exists on any of its assets as security for any debt. (b) For the event that, notwithstanding the foregoing, a lien shall be created on any of the Borrower's assets as security -6- for any debt, the Borrower undertakes that, except as the Bank shall otherwise agree, (i) if the Borrower shall create the lien, such lien will equally and ratably secure the payment of the principal of, and interest and other charges on, the Loan, and in the creation of any such lien express provision will be made to that effect, at no cost to the Bank; and (ii) if the lien shall be created by law, the Borrower shall grant, at no cost to the Bank, an equivalent lien satisfactory to the Bank to secure the payment of the principal of, and interest and other charges on, the Loan. Section 5.04. The Bank and the Borrower agree that in carrying out the provisions of this Agreement the Borrower shall take such measures as shall be necessary according to the State Plan of Romania and the applicable laws in order to achieve the purposes of the Project. ARTICLE VI Cooperation and Information; Financial Data Section 6.01. The Bank and the Borrower shall cooperate fully to assure that the purposes of the Loan will be accom- plished. To that end: (a) the Bank and the Borrower shall from tim-a to time at the request of either party exchange views through their repre- sentatives with regard to the progress of the Project, the benefits derived from the Project, the performance of their respective obligations under the Loan Agreement, the fulfillment of the requirements set forth in Section 4.01 of this Agreement and other matters relating to the purposes of the Loan, and the Borrower shall enable the Bank's representatives to exchange views with representatives of DIFCA, NWC, CELIF and the State Farms and Cooperative Farms served by the Project, and the other agencies concerned of Romania with regard to the Project, the benefits derived from the Project, and the fulfillment of the requirements set forth in Section 4.01 of this Agreement; (b) the Borrower shall obtain from DIFCA, NWC and the other agencies of Romania concerned with the Project, and furnish to the Bank, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement -7- schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Bank and the Borrower shall agree; (c) the Borrower: (i) shall maintain, or cause to be main- tained, 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 Loan, and to disclose their use in the Project; and (ii) shall furnish to the Bank within forty-five calendar days after each calendar quarter, a report, of such scope and in such detail as the Bank and the Borrower shall agree, on the progress of the Project during such quarter; (d) the Borrower shall enable the Bank's representatives to visit and examine the goods financed out of the proceeds of the Loan, the facilities and construction sites included in the Project and the records and documents relating to the Project of DIFCA, NWC and of other departments and agencies of Romania responsible for the Project or any part thereof; (e) the Borrower shall: (i) furnish to the Bank not later than six months after the end of each of its fiscal years, (A) certified copies of its financial statements (balance sheets, statements of income and expenses and related statements, as agreed between the Bank and the Borrower), and until the completion of the Project certified copies of its records referred to in paragraph (c) of this Section recording the cost of the Project, for such fiscal year submitted to an independent audit conducted, in accordance with appropriate auditing principles consistently applied, by the Ministry of Finance of Romania, and (B) the report of such audit by said auditor, of such scope and in such detail as the Guarantor and the Bank shall agree; and (ii) furnish to the Bank such other information concerning the before- mentioned financial statements of the Borrower and the audit thereof as the Bank shall from time to time reasonably request; (f) the Bank and the Borrower shall from time to time furnish to each other such additional information as the other party shall reasonably request with regard to the progress of the Project, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds, the operations, resources and expenditures of DIFCA, NWC and CELIF, the benefits derived from the Project and the general status of the Loan; and -8- (g) 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 Bank and the Borrower, the Borrower shall prepare and furnish to the Bank a report, of such scope and in such detail as the Bank and the Borrower shall reasonably agree, 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 Bank and the Borrower of their respective obligations under the Loan Agreement and the accomplishment of the purposes of the Loan. Section 6.02. The Bank and the Borrower shall promptly inform each other of any condition which Interferes with, or threatens to interfere with, the progress of the Project, the accomplishment of the purposes of the Loan, the maintenance of the service thereof or the performance by either party of its obliga- tions under the Loan Agreement. ARTICLE VII Effective Date; Terminatior Section 7.01. The following event is specified as an addi- tional condition to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely, the Council of Ministers of Romania has approved the technical and economic indicators for the Project and such approval has become effective. Section 7.02. The following is specified as an additional matter, within the meaning of Section 12.02 (c) of the General Conditions, to be incl-uded in the opinion or opinions to be furnished to the Bank, namely, that the technical and economic indicators for the Project have been duly approved by the Council of Ministers of Romania and such approval has become effective. Section 7.03. The date 7, is hereby specified for the purpose of Se tion 12.04 of the General Conditions. ARTICLE VIII Addresses Section 8.01. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: -9- For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) cr 64145 (WUI) For the Borrower: Banca pentru Agricultura si Industrie Alimentara Strada Smirdan No. 3 Bucharest, Romania Cable address: Telex: AGROBANK 11622 Bucharest 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 ateve written. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Regional Vice President Europe, Middle East and North Africa BANCA PENTRU AGRICULTURA SI INDUSTRIE ALIMENTARA ByA i e n Authorized Representative - 10 - SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Category of items to be financed out of the proceeds of the Loan and the percentage of expenditures for items so to be financed: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Equipment and 61,400,000 100% of foreign spare parts expenditures and 100% of local expenditures ex-factory (2) Materials 5,600,000 100% of foreign expenditures and 100% of local expenditures ex-factory (3) Unallocated 3,000,000 TOTAL 70,000,000 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures for goods or services supplied from the territory and in the currency of any country other than Romania; and (b) the term "local expenditures" means expenditures in the currency of Romania and for goods or services supplied from the territory of Romania. 3. The disbursement percentages have been calculated in compli- ance with the policy of the Bank that no proceeds of the Loan - 11 - shall be disbursed on account of payments for taxes levied by, or in the territory of, Romania on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if any event occurs which shall affect the amount of any such taxes included in the cost of any item to be financed out of the proceeds of the Loan, the Bank may, by notice to the Borrower, correspondingly adjust the disbursement percentage then applicable to such item. 4. 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. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in paragraph I above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Cate- gory, the Bank may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Loan which are then allocated to another Category and which in the opinion of the Bank 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 further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Bank shall have reasonably determined that the procurement of any item referred to in Section 2.03 of this Agreement 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 Loan and the Bank may, without in any way restricting or limiting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the Loan as, in the Bank's reason- able opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Loan. - 12 - SCHEDULE 2 Description of the Project The Project is to provide irrigation and drainage facilities, erosion control, soil reclamation and other miscellaneous works and farm machinery and equipment tu serve adequately (i) an area of about 158,540 ha ("Mostistea Area") situated in Ilfov and Ialomita Districts, on the banks of the Mostistea River, a left bank tributary of the Danube River, and bounded by the Ialomita River in the north, by the area of the first phase of the already completed Mostistea I project in the south and east and, by the Arges River and its tributaries in the west; and (ii) an area of about 66,930 ha ("Calmatui Area") situated in Buzau and Braila Districts, on both banks of the Calmatui River, a left bank tributary of the Danube River, and forming a part of the Calmatui Basin of about 172,000 ha bounded by the Bucharest-Buzau-Braila railway line in the north, by the Braila-Viziru terraces in the east, by the towns of Insuratei in the south and by the town of Buzau and Pietrosol area in the west. The Project consists of: Part A: Mostistea Area 1. Irrigation and Drainage Facilities Construction, remodelling, installation and provision of irrigation, drainage, and other facilities adequate to serve the Mostistea Area as follows: (a) widening, of the existing supply canal (about 9 km long) from the Danube River terminating at the foot of the existing lezer Dam and extension of the existing floating pumping station at the foot of the lezer Dam lifting water from the said supply canal into the lezer Lake. (b) four low storage dams, one each at Frasinet, Gurbanesti, Fundulea and Nariuta on the Mostistea River with live capacity of about 92Mm3, 51Mm3, 30Mm3 and 19Mm3, respectively, and 4 floating pumping stations one each at the foot of each of the said stora es with capacity of about 114 m3/sec, 68.4 m /sec, 57 m3/sec and 53 m3/sec, respectively; - 13 - (c) thirteen fixed pumping stations: 7 of them to lift water from the pumped storages into 7 main canal systems to be constructed under (d) below, inclu- ding one to lift water from the Mariuta pumped storage into the Hagiesti-Movilita Canal to be constructed under (d) below and 6 will be repumping stations to be located on various distribution canals to be constructed under (d) below; (d) the Hagiesti-Movilita Canal and 12 irrigation canal systems each consisting of concrete lined main and distribution canals and necessary regu- lators, bridges, culverts, escape weirs, drop and other structures: 7 of these systems to be supplied with water from pumped storages to be constructed under (b) above and 5 from the Hagiesti-Movilita Canal; (e) fifty-one fixed pressure pumping stations to serve about 84,800 ha and 691 mobile electric pumps to about 73,740 ha; (f) about 552 km of 20 kV power lines, transformer substations and pole mounted transformers, to supply energy to all of the pumping stations and mobile pumps to be constructed under Part A of the Project. (g) pipe distribution networks, consisting of a buried main and distribution pipes equipped with hydrants and other necessary fittings to serve the Mostistea Area; (h) on-farm sprinkler and furrow equipment; Ci) surface drainage works with necessary structures to serve about 82,638 ha including drainage pumping station; and (j) sub-surface drainage network with tile drains to initially serve an area about 4,238 ha. The Borrower will regularly monitor the ground water table in the project area and install any addi- tional sub-surface drainage works as and when they become necessary. - 14 - 2. Soil Erosion Control Works Soil erosion control works to serve an area of about 13,344 ha including land levelling of about 6,747 ha and terracing of about 3,561 ha. Part B: Calmatui Area 1. Drainage and Irrigation Facilities Construction, remodelling, installation and provision of drainage facilities as well as irrigation and other facilities adequate to serve the Calmatui Area as follows: (a) surface drainage works with necessary structures to serve an area of 66,930 ha; (b) sub-surface drainage networks with tile drains to serve areas of about 9,200 ha of saline soils and of about 5,255 ha of potentially saline soils within the irrigated area of 23,000 ha; (c) two pumping units each with capacity of 9 -' /sec to extend the capacity of the existing floating pumping station at km 221 of the Danube River; (d) a canal of about 39.4 km length with necessary structures to serve about 23,000 ha; widening and deepening of the existing canal, reconstruction of concrete lining in a length of about 9.0 km, including increase in capacity of 2 existing pumping stations; and raising of concrete lining by 0.5 m in a length of about 18.9 km; (e) eleven pressure pumping stations and two repumping stations to serve about 23,000 ha; and (f) on-farm sprinkler equipment. 2. Reclamation of Saline Soils Reclamation of about 9,200 ha of saline and saline/ alkali soils located in the irrigated area of 23,000 ha in the Calmatui Area by levelling, deep sipping/mole ploughing, deep ploughing without turning, application of chemical amendments, and leaching. - 15 - Part C: Farm Machinery and Equipment Provision of tractors, harvesters and some cultivation and transportation equipment for State Farms and Cooperative Farms, and of equipment required for the operation and maintenance of the irrigation and drainage facilities included in Parts A and B of the Project. The Project is expected to be completed by December 31, 1985. - 16 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* On each April 1 and October 1 beginning October 1, 1982 through October 1, 1993 2,915,000 On April 1, 1994 2,955,000 * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equivalents determined as for purposes of withdrawal. - 17 - Premiums on Prepayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1.40% More than three years but not more than six years before maturity 2.80% More than six years but not more than eleven years before maturity 5.15% More than eleven years but not more than thirteen years before maturity 6.05% More than thirteen years before maturity 7.00% - 18 - SCHEDULE 4 Procurement A. International Competitive Bidding 1. Contracts for the purchase of equipment and spare parts shall be procured in accordance with procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in March 1977 (here- inafter called the Guidelines), on the basis of international competitive bidding as described in Part A of the Guidelines. 2. For goods to be procured on the basis of international competitive bidding under the Project and in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Bank as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of the first tender or prequalification documents relating thereto, as the case may be, a general procurement notice, in such form and detail and containing such information as the Bank shall reasonably request; the Bank will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the opportunity to bid for the goods in question. The Borrower shall provide the necessary information to update such notice annually so long as any goods remain to be procured on the basis of international competitive bidding. B. Evaluation and Comparison of Bids for Goods Preference for Domestic Manufacturers 1. For the purpose of evaluation and comparison of bids for the supply of goods: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for imported goods, or the ex-factory price for domestically manufactured goods; (ii) customs duties and other import taxes on imported goods, and sales and similar taxes on domestically supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be included. 2. Goods manufactured in Romania may be granted a margin of preference in accordance with, and subject to, the following provisions: - 19 - (a) All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the information required to establish the eligibility of a bid for such preference and the following methods and stages that will be followed in the evaluation and comparison of bids. (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Romania if the bidder shall have established to the satisfaction of the Borrower and the Bank that the manufacturing cost of such goods includes a value added in Romania equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Romania. (3) Group C: bids offering goods manufactured outside Romania. (c) All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any sales or similar taxes on goods to be supplied domestically, to determine the lowest evaluated bid of each group. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. (d) If, as a result of the comparison under paragraph (c) above, the lowest bid is a bid from group C, all group C bids shall be further compared with the lowest evaluated bid from group A after adding to the c.i.f. bid price of the imported goods offered in each group C bid, for the purpose of this further comparison only, an amount equal to: (i) the amount of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in such group C bid; or (ii) 15% of the c.i.f. bid price of such goods if said customs duties and taxes exceed 15% of such price. If the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the bid from group C which as a result of the comparison under paragraph (c) is the lowest evaluated bid shall be selected. - 20 - D. Review of Procurement Decisions by the Bank 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts estimated to cost the equiv- alent of $200,000 or more: (a) Before bids are invited, Romagrimex shall furnish to the Bank, 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 Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospective bidders. (b) Promptly after the bids have been received, Romagrimex shall inform the Bank of the names of the bidders and the respec- tive amounts of the bids, and shall indicate those items for which only one bid was received. (c) After bids have been evaluated, Romagrimex shall, before a final decision on the award is made, inform the Bank of the name of the bidder to which the contract is intended to be awarded and the reason for the intended award and shall furnish to the Bank, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, together with the recommendations for award and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform Romagrimex and state the reasons for such determination. (d) The terms and conditions of the contract shall not, without the Bank's concurrence, materially differ from those on which bids were asked. (e) Two conformed copies of the contract shall be furnished to the Bank promptly after its execution and prior to the submis- sion to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 2. With respect to each contract to be financed out of the proceeds of the Loan and not governed by the preceding paragraph, - 21 - Romagrimex shall furnish to the Bank, promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan 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 Bank shall reasonably request. The Bank shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform Romagrimex and state the reasons for such determination.