Sri Lanka - Second Rural Development : Credit 1079 - Credit Agreement - Conformed

OFICIALT CREDIT NUMBER 1079 CE DOCUMENTS Development Credit Agreement (Second Rural Development Project) between DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated , 1981 CREDIT NUMBER 1079 CE DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated 22 , 1981, between DEMOCRATIC SOCIALIST REPUBLIC OF SWI LANKA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (herein- after 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 (sa,id General Conditions Applicable to Development Credit Agree- ments of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Matale" means the geographical area comprising the existing administrative district of Matale in the Borrower's territory; (b) "Puttalam" means the geographical area comprising the existing administrative district of Puttalam in the Borrower's territory; (c) "Kurunegala" means the District of Kurunegala as defined in Section 1.02 (c) of the Development Credit Agreement (Kurune- gala Rural Development Project) between the Borrower and the Association dated April 26, 1979; (d) "Bank of Ceylon" means the Bank of Ceylon, a banking corporation established under the laws of the Borrower, or any successor thereof; (e) "Peoples' Bank" means the Peoples' Bank, a banking corporation established under the laws of the Borrower, or any successor thereof; -2- (f) "subsidiary agreements" means the subsidiary agreements entered into by the Borrower with, respectively, (i) the Bank of Ceylon and (ii) the Peoples' Bank, pursuant to Section 3.06 of this Agreement; and (g) "Rs" means Rupees, the currency of the Borrower. 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 twenty-five million six hundred thousand Special Drawing Rights (SDR 25,600,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule I to this Agreement, as such Schedule may be amended from time to time by agreement betweer the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, procurement of the goods and civil works to be financed out of the proceeds of the Credit, shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1986 or such later date as the Association shall establish. The Associ- ation 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 January 1 and July 1 in each year. -3- Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each January 1 and July 1 commencing January 1, 1991, and ending July 1, 2030 each installment to and including the installment payable on July 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 sur-h 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. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with appro- priate financial, admini*trative, agricultural and rural develop- ment practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. In order to assist the Borrower in carrying out the Project, the Borrower shall: (a) establish and maintain a Project Steering Committee, a Discrict'Coordinatioa Committee in Matale, and a District Coordination Committee in Puttalam, the memberships and terms of reference of which shall be satisfactory to the Borrower and the Association; (b) appoint and maintain a Project Director in Matale, and a Project Director in Puttalam, having qualifications and experience and with functions and responsibilities all satisfactory to the Borrower and the Association; and (c) provide technical assistance for Matale, Puttalam and Kurunegala, and employ consultants having qualifications and experience and upon terms and conditions of employment all satis- factory to the Borrower and the Association. Section 3.03. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of,, the imported goods to be financed out of the proceeds of the Credit against hazards -4- incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely ubabLe 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 3.04. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, reports, training programs, contract documents and work and procurement schedules for the Project, and any material modifi- cations thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Credit, and to disclose their use in the Project; (ii) shall enable the Association's accredited representatives to visit the facilities and construction sites included in the Project and to examine the goods financed out 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. (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. Section 3.05. The Borrower shall take or cause to be1 taken all such action as shall be necessary to acquire as and when -5- needed all such land and rights in respect of land as shall be required for carrying out the Project. Section 3.06. The Borrower shall ensure that the agri- cultural credit under Part B of the Project shall be provided in accordance with rules and procedures satisfactory to the Associ- ation. To this end, the Borrower shall enter into subsidiary agreements satisfactory to the Association with, respectively, (i) the Bank of Ceylon and (ii) the Peoples' Bank. Such subsidiary agreements shall include provisions with regard to a program for the reduction of arrears, and the review of onlending rates in order to achieve and maintain said rates at positive levels in real terms in line with the Borrower's pre- vailing policies. Section 3.07. The Borrower shall: (a) cause all plans and designs for facilities under the Project, to be in accordance with specifications and guidelines satisfactory to the Association; (b) ensure that institutional arrangements made for the operation and maintenance of facilities under the Project are satisfactory to the Association; (c) cause facilities under the Project, to be maintained in accordance with sound administrative and engineering practices, and shall ensure that adequate staff are provided for this purpose'; and (d) ensure that sufficient funds are provided to its various implementing departments and agencies to meet all oper- ational, maintenance and other recurrent expenditures under the Project. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall cause each of its various departments and agencies responsible for carrying out the Project, to maintain separate records adequate to reflect in accordance with consistently maintained sound accounting practices the operations, resources and expenditures, in respect of the -6- Project, of such departments or agencies of the Borrower, includ- ing, without limitation to the foregoing, separate accounts reflecting all expenditures described in Categories (1) through (6) of the table in paragraph 1 of Schedule 1 to this Agreement, on account of w-ich withdrawals are requested from the Credit Account on the basis of certificates of expenditure. (b) The Borrower shall cause such departments or agencies to 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 expendi- ture and shall enable the Association's accredited representatives to examine such records. Section 4.02. The Borrower shall: (i) cause each of its various departments and agencies responsible for carrying out the Project, to have their accounts and financial statements (balance sheets, statements of income and expenses and related statements) in respect of the Project, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) consolidate, both on a District and a Project level, the said accounts and financial statements of the said various departments and agencies; (iii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of the consolidated accounts and financial statements for such year as so audited and (B) the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested including, without limitation to the fore- going, a separate opinion by said auditors in respect of the expenditures and records referred to in Section 4.01 (b) of this Agreement as to whether the proceeds of the Credit with- drawn from the Credit Account on the basis of certificates of expenditure have been used for the purpose for which they were provided; and (iv) furnish to the Association such other informa- tion concerning the accounts and financial statements and the audit thereof as the Association shall from time to time reason- ably request. Section 4.03. The Borrower shall cause its various depart- ments and agencies responsible for carrying out the Project, to take out and maintain with responsible insurers, or to make other provision satisfactory to the Association for, insurance -7- against such risks and in sucK amounts as shall be consistent with appropriate practice. ARTICLE V Remedies of the Association Section 5.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof, namely, that the Bank of Ceylon or the Peoples' Bank shall have failed to perform any covenant or obligation under their respective subsidiary agreements with the Borrower. 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 any event specified in Section 5.01 of this Agreement shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Association to the Borrower. ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the Borrower has, pursuant to Section 3.06 of this Agreement, entered into a subsidiary agreement satisfactory to the Association of this Agreement, with the Bank of Ceylon; (b) the Borrower has, pursuant to Section 3.06 of this Agreement, entered into a subsidiary agreement satisfactory to the Association, with the Peoples' Bank; and (c) the Borrower has, pursuant to Section 3.02 (c) of this Agreement, appointed consultants to supervise the implementation of the Project, with qualifications and experience, on terms and conditions of employment, satisfactory to the Borrower and the Association. Section 6.02. The following are specified as additional matters, within the meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion or opinions to be furnished to the Association: (a) the subsidiary agreement entered into between the Borrower and the Peoples' Bank pursuant to Section 3.06 of this Agreement, has been duly executed and is legally binding on the Borrower and the Peoples' Bank; and (b) the subsidiary agreement entered into between the Borrower and the Bank of Ceylon pursuant to Section 3.06 of this Agreement, has been duly executed and is legally binding on the Borrower and the Bank of Ceylon. Section 6.03. The date 49a is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 6.04. The obligations of the Borrower under the provisions of Section 5.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years after the date of this Agreement, whichever shall be the earlier. ARTICLE VII Representatives of the Borrower; Addresses Section 7.01. The Secretary, Ministry of Finance and Planning 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 and Planning Colombo Democratic Socialist Republic of Sri Lanka Cable address: Telex: SECMINFIN 1232 Colombo FORAID 9- 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 SOCIALIST REPUBLIC OF SRI LANKA Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION Regional Vice President South Asia - 10 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works 9,910,000 80% (2) Financial assistance 760,000 50% by the Borrower to private farmers for field works under Parts A.1 and A.2 of the Project (3) Labor required for 1,520,000 100% field works under Parts A.4 and A.5 of the Project (4) Salaries of addi- 380,000 tional staff for road maintenance and rehabilitation under Parts D.1 and D.2 of the Project incurred in: (a) 1981, 1982 and 1983 100% (b) 1984 and thereafter 50% (5) Agricultural credits 1,140,000 50% of amounts under Part B.1 of disbursed by the Project Peoples' Bank and Bank of Ceylon in ex- cess of amount specified in paragraph 4 (b) hereunder - 11 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (6) Agricultural credits 1,520,000 80% of amounts under Parts B.2, disbursed by B.3, B.4 and 8.5 of Peoples' Bank the Project and Bank of Ceylon (7) Equipment, vehicles 3,430,000 and spares (a) directly imported 100% of for- eign expendi- tures (b) locally manu- factured 100% of local expenditures (ex-factory) (c) procured locally 80% (8) Consultants' services 1,900,000 100% and training (9) Unallocated 5,040,000 TOTAL 25,600,000 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 - 12 - 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: (a) in respect of payments made for expenditures prior to the date of this Agreement, except that withdrawals, in an aggregate amount not exceeding the equivalent of one million dollars ($1,000,000) may be made in respect of Categories (1), (3), (7) and (8) on account of payments made for expenditures before that date but after June 30, 1980; and (b) in respect of expenditures under Category (5), unless and until such expenditures for the calendar year shall exceed Rs 4,600,000 and then only to cover such excess. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in para- graph 1 above, if the Association has reasonably estimated that the amount of the Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Association may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Credit which are then allocated to another Category and which in the opinion of the Association are not needed to meet other expendi- tures; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way - 13 - restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the Borrower, cancel such amount of the Credit as, in the 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. -14- SCHEDULE 2 Description of the Project The Project is intended to assist the Borrower in developing the rural areas in an integrated manner for purposes of raising productivity, employment, income and living standards of the population, and consists of the following: Part A: Agriculture 1. Coconut development in Puttalam. 2. Minor export crops development in Matale and Puttalam. 3. Improvement of agricultural supporting services in Matale and Puttalam. 4. Sericulture in Matale. 5. Silviculture development in Matale and Puttalam. 6. Livestock development in Matale and Puttalam. 7. Fisheries development in Puttalam. Part B: Agricultural Credit 1. Short-term production credit for field crops in Matale and Puttalam. 2. Medium-term credit for coconut development in Puttalam, farm equipment, and vehicles in Matale and Puttalam. 3. Long-term credit for minor export crops development, and sericulture sheds in Matale. 4. Long-term credit for tubewell development in Puttalam. 5. Long-term credit for agricultural storage facilities in Matale and Puttalam. - 15 - Part C: Water Resources 1. Improvement of irrigation schemes in Matale and Putta- lam, and water management in Matale, Puttalam and Kurunegala. 2. 'Exploration and exploitation of groundwater resources in Puttalam. 3. Installation of wells in rural areas deficient in drinking water in Matale and Puttalam. Part D: Economic Infrastructure 1. Rehabilitation of feeder roads, cart and foot paths in Matale and Puttalam; and construction of portions of a new road in Matale. 2. Improvement of maintenance of roads and strengthening of the capability of the Department of Highways to implement a continuing road maintenance program in Matale and Puttalam. 3. Installation of rural electrification schemes in Matale and Puttalam. Part E: Social Infrastructure 1. Improvement of health care in Matale and Puttalam. 2. Improvement of education and vocational training in Matale and Puttalam. Part F: Project Coordination and Management Support of ongoing efforts toward decentralized multi- sectoral development. The Project is expected to'be completed by December 31, 1985. - 16 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Part C hereof, goods shall be procured under contracts awarded 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 (hereinafter called the Guidelines), on the basis of inter- national competitive bidding as described in Part A of the Guide- lines. 2. For goods to be procured on *the basis of international competitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Association 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 Association shall reasonably request; the Association will arrange for the publi- cation 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. 3. For the purpose of evaluation and comparison of bids for the supply of goods to be procured on the basis of international competitive bidding: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for the imported goods, or the ex-factory price or off-the-shelf price of other goods, offered in such bid; and (ii) customs duties and other import taxes levied in connection with the importation, or the sales and similar taxes levied in connection with the sale or delivery, pursuant to the bid, of the goods shall not be taken into account in the evaluation of the bids. B. Preference for Domestic Manufacturers In the procurement of goods in accordance with the procedures described in Part A of this Schedule, goods manufactured in - 17 - the Democratic Socialist Republic of Sri Lanka may be granted a margin of preference in accordance with, and subject to, the following provisions: 1. 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. 2. After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in the Democratic Socialist Republic of Sri Lanka if the bidder shall have established to the satis- faction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in the Democratic Socialist Republic of Sri Lanka equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other domestic bids. (3) Group C: bids offering any other goods. 3. In order to determine the lowest evaluated bid of each group, all evaluated bids in each group shall first be compared among themselves, without taking into account customs duties and other import taxes levied in connection with the importation, and sales and similar taxes levied in connection with the sale or delivery,'pursuant to the bids, of the goods. 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. 4. If, as a result of the comparison under paragraph 3 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 evaluated 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 - 18 - 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 3 is the lowest evaluated bid shall be selected. C. Other Procurement Procedures 1. All civil works, and field works under Parts A.1, A.2, A.4 and A.5 of the Project, may be carried out by contracts awarded through local competitive bidding procedures satisfactory to the Association or by force account. 2. Farm inputs, equipment and vehicles under Part 6 of the Project may be procured through normal commercial channels in accordance with procedures satisfactory to the Association. 3. Subject to the limit of sub-paragraph (iii) below, (i) medical and educational equipment under Part E of the Project may be procured in accordance with the Borrower's competitive bidding procedures satis'factory to the Association, (ii) vehicles, equipment and spares which are urgently needed, or which cannot be suitably bulked for procurement under Part A of this Schedule and which cost less than $10,000 each contract, or which are to be purchased by the staff of the Borrower's implementing departments and agencies under the Project, may be procured after soliciation of three quotations from independent suppliers in accordance with procedures satisfactory to the Association, and (iii) provided all such purchases under subparagraphs (i) and (ii) above, shall not in the aggregate exceed $1,400,000. D. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts for equipment, vehicles and spares estimated to cost the equivalent of $100,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Association, for its comments, the text of the invitations to bid and the specifications and other bidding documents, to- gether with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Association shall reasonably - 19 - request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Association of the name of the bidder to which it intends to award the contract and shall furnish to the Asso- ciation, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Associatioa shall reasonably request. The Association shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Association promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract. 2. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to th2 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 Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the day of 198F S E FOR SECRETARY