Madagascar - Study Of The Plain Of Antananarivo Tech Assist : Credit 1086 - Credit Agreement - Conformed

OFFICIAIl CREDIT NUMBER 1086 MAG DOCUMEntr Development Credit Agreement (Study of the Plain of Antananarivo Technical Assistance Project) between DEMOCRATIC REPUBLIC OF MADAGASCAR and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated TcorouOAA 1981 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated 3oWA")LM 3a 1981, between DEMOCRATIC REPUBLIC OF MADAGASCAR (hereinafter called the Bor- rower) 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 June 30, 1980, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agreements 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 terms have the following meanings: (a) "General Directorate" means the General Directorate of Planning of the Borrower's Ministgre aupras de la Pr6sidence de la R6publique chargg des Finances et du Plan; and (b) "Technical Committee" means the Comitf Technique Interministdriel charge de la coordination de 1'Etude de la Plaine d'Antananarivo ainsi que l'ex6cution des travaux et activi- t6s y afffrents, created by the Borrower's Arr@tg No. 3807/80 of September 20, 1980, as such Arr6t6 may be amended from time to time. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equiva- lent to one million eight hundred thousand Special Drawing Rights (SDR 1,800,000). -2- Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit. Section 2.03. (a) Except as the Association shall other- wise agree, vehicles and scientific equipment required for Part B of the Project and to be financed out of the proceeds of the Credit shall be procured on the basis of competitive bidding advertised locally, in accordance with the Borrower's normal procedures. (b) With respect to each contract for vehicles or scienti- fic equipment, 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 respec- tive bids, recommendations for award and such other information relating to each such contract 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 para- graph (a) of this Section, promptly inform the Borrower and state the reasons for such determination. Section 2.04. The Closing Date shall be December 31, 1983, or such later date as the Association shall establish. The Associa- tion shall promptly notify the Borrower of such later 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 June 1 and December 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each June 1 and December 1 commencing June 1, 1991, and ending December 1, 2030, each installment to and including the installment payable -3- on December 1, 2000, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project through the General Directorate with due diligence and efficiency and in conformity with appropriate administrative and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) In order to assist the General Directorate in the carrying out of the Project, the Borrower shall maintain the Technical Committee with such responsibilities and composition as shall enable the Technical Committee at all times to carry out its functions as presently defined in the Borrower's Arretg No. 3807/80 of September 20, 1980. Section 3.02. (a) In order to assist the Borrower: (i) in carrying out the studies included in Part A of the Project, and (ii) in supervising said studies and in preparing the quar- terly progress reports mentioned in Section 3.06 (b) of this Agreement, the Borrower shall employ engineering, management and financial consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Associa- tion. (b) The Borrower shall take all reasonable measures to facilitate the work of the consultants in the performance of their services for the Project and make available to them all informa- tion relevant to the Project. Section 3.03. The Borrower shall furnish to the Association for its review and comments interim reports for the studies included in Part A of the Project, and, before the preparation of the final reports, drafts thereof. Section 3.04. The Borrower shall select, in consultation with the Association, not more than five coherent technical schemes for -4- the economic analysis to be included in the studies to be carried out under Part A of the Project. Section 3.05. (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 such insurance any indemnity shall be pay.ble in a currency freely usable by the Borrower to replace or repair such goods. (b) Except as the Association shall otherwise agree, the Borrower shall cause all goods and services financed out of the *proceeds of the Credit to be used exclusively for the Project. Section 3.06. (a) 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 work sites included in the Project and to examine the goods financed out of 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. (b) For the purpose of monitoring the progress of the Pro- ject, the Borrower shall furnish to the Association quarterly progress reports. (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 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 Borrower and the Association of their respective obligations under the Development Credit Agreement and the accomplishment of the purposes of the Credit. -5- ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices, the opera- tions, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for the carrying out of the Project or any part thereof. Section 4.02. The Borrower shall furnish to the Association such information concerning said records as the Association shall from time to time reasonably request. ARTICLE V Termination Section 5.01. The date 30)91 is hereby specified for the purpose of Section 12.04 of the General Condi- tions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister responsible for Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere aupras de la Pr6sidence de la R6publique chargg des Finances et du Plan Antananarivo Madagascar Cable address: Telex: MINFINPLAN 22339 Antananarivo -6- 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. DEMOCRATIC REPUBLIC OF MADAGASCAR By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Eastern Africa -7- .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: Am6unt of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Studies under Part A of the- Project, including: (a) consultants' . 1,280,000 80% services referred to under Section 3.02.(a) (i) of the Development. Credit Agreement (b) consultants' 80,000 80% services referred to under Section 3.02 (a) (ii) of the Development Credit Agreement (2) Scientific equip- 50,000 100% of foreign ment for Part B (1) expenditures (a) and (b) and 95% of of the Project local expendi- tures (3) Vehicles for 25,000 100% of foreign Part B (2) of expenditures and the Project 95% of local expenditures (4) Unallocated . 365,000 TOTAL 1,800,000 -8- 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower and for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in 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. 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, except that with- drawals in an aggregate amount not exceeding the equivalent of SDR 50,000 may be made on account of payments made for expendi- tures before that date but after November 1, 1980. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 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. -9- 6. If the Association shall have zeasonably 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 re- stricting 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 Associa- tion'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 consists of the following Parts: Part A: Pre-investment studies to be conducted at a pre- feasibility stage with the objective of defining (i) a technically coherent, economically justified and finan- cially feasible investment program to protect the Plain of Antananarivo area against floods, to improve drainage and to expand economic activity in the region, and (ii) appropriate arrangements for the carrying out of said investment program. Part B: (1) (a) Improvement of the network of research sta- tions on erosion and soil protection on the upper catchment areas of the Plain of Anta- nanarivo; (b) Improvement of the hydrological and flood alarm network in the Plain of Antananarivo; and (2) Strengthening of th, capabilities of the General Directorate to supervise the carrying out of the Project, and the provision, for its use, of two vehicles. The Project is expected to be completed by June 30, 1983. 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 198J. FOR SECRETARY