India - Second Population Project : Credit 0981 - Project Agreement - Conformed

OFFICLA-f CREDIT NUMBER / IN Project Agreement (Second Population Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF ANDHRA PRADESH and STATE OF UTTAR PRADESH Dated , 1980 PROJECT AGREEMENT AGREEMENT, dated On"I , 1980, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and the STATE OF ANDHRA PRADESH, acting by its Governor (hereinafter called Andhra) and the STATE OF UTTAR PRADESH, acting by its Governor (hereinafter called U.P.). WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to forty-six million dollars ($46,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that Andhra and U.P. agree to undertake such obligations toward the Association as are herein- after set forth; and WHEREAS Andhra and U.P., in consideration of the Associa- tion's entering into the Development Credit Agreement with the Borrower, have each agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions as so defined have the respective meanings therein set forth. ARTICLE II Execution of the Project Section 2.01. Andhra and U.P. shall carry out their respec- tive Parts of the Project described in Schedule 2 to the Develop- ment Credit Agreement, each with due diligence and efficiency and in conformity with appropriate administrative, financial, family planning, public health, technical and engineering prac- tices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the purpose. -2- Section 2.02. 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 the Schedule to this Agreement. Section 2.03. (a) Each of the States undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit made available to it by the Borrower against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any i,ndemnity shall be payable in a currency freely usable by the State con- cerned to replace or repair such goods. (b) Except as the Association may otherwise agree, the States shall cause all goods and services financed out of the proceeds of the Credit made available to them by the Borrower to be used exclusively for their respective Parts of the Project. Section 2.04. (a) Each of the States shall furnish to the Association, promptly upon their preparation, the plans, specifi- cations, reports, contract documents and procurement schedules for its Part of the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reason- ably request. (b) The States: (i) shall maintain records and procedures adequate to record and monitor the progress of their respective Parts of the Project (including the cost and the benefits to be derived therefrom), to identify the goods and services financed out of the proceeds of the Credit made available to them, and to disclose the use thereof in those Parts of the Project; (ii) shall enable the Association's accredited representatives to visit the facilities and construction sites included in those Parts of the Project and to examine the goods financed out of such proceeds and any relevant records and documents; and (iii) shall furnish to the Association at regular intervals all such information as the Association shall reasonably request concerning the said Parts of the Project, their cost and, where appropriate, the benefits to be derived from such Parts of the Project, the expenditures of the proceeds of the Credits so made available to them and the goods and services financed out of such proceedsc (c) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such -3- later date as may be agreed for this purpose between the Borrower and the Association, the States 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 their respective Parts of the Project, the cost thereof and the benefits derived and to be derived therefrom, the performance by the Association and the States of their respec- tive obligations under the Project Agreement and the accomplish- ment of the purposes of the Credit. Section 2.05. (a) The States shall each at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Credit. (b) The States shall promptly inform the Association of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by any of them of its obligations under this Agreement. Section 2.06. The States shall each ensure that Primary Health Sub-centers under the Project will be sited within the inhabited area of the village where they are located. Section 2.07. The States shall each furnish to the Associa- tion for its information and comments, not later than June 30, 1980, or such other date as may be agreed between the Association and the State concerned, the preliminary-type designs for all facilities to be constructed under the Project. Section 2.08. The States shall each make appropriate alloca- tions of funds and facilities for: (a) the maintenance of all the buildings used for Primary Health Centers and Sub-centers in the Project Area; (b) the operation and maintenance, on a uniform basis, of all the vehicles used for health and family welfare purposes in the Project Area. Section 2.09. The States shall each undertake a mid-term review of the progress of the Project activities in the respective areas including the health and family welfare data collection -4- systems under the Project and shall make available not later than March 31, 1983 the results of such review to the Association. ARTICLE III Financial Covenants Section 3.01. Each of the States shall cause each of its various departments or agencies responsible for carrying out any part of the Project to maintain separate records adequate to reflect in accordance with consistently maintained appropriate accounting practices its operations, resources and expenditures, in respect of the Project, or any part thereof. Section 3.02. The States shall each: (i) have its separate accounts in respect of its Part of the Project for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association, as soon as avail- able, but in any case not later than nine months after the end of each such year, a certified copy of the report of such audit by said auditors, of such scope and in such detail as the Association shall have reasonably requested and (iii) furnish to the Associa- tion such other information concerning said separate account and the audit thereof as the Association shall from time to time reasonably request. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of the Association and of the States thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or -5- (ii) a date twenty years after the date of this Agree- ment. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify the States of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the General Conditions. ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address here- inafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) For Andhra: The Chief Secretary to the Government of Andhra Pradesh Hyderabad Andhra Pradesh -6- Cable address: CHIEF SECRETARY ANDHRA Hyderabad, India For Uttar Pradesh: The Chief Secretary to the Government of Uttar Pradesh Lucknow Uttar Pradesh Cable address: CHIEF SECRETARY U.P. Lucknow, India Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of each of the States may be taken or executed by its Chief Secretary or such other person or persons as the said Chief Secretary shall designate in writing, and each of the States shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collec- tively but one .nstrument. 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 - 7 - of Columbia, United States of America, as of the day and year first above written. INTERNATIONAL DEVELOPMENT ASSOCIATION By (U I a4cAv Regional Vice President South Asia STATE OF ANDHRA PRADESH By Authorized Representative STATE OF UTTAR PRADESH Byieen v Authorized Representative -8- SCHEDULE Procurement 1. Subject to the provisions of paragraphs 2 and 3, civil works, furniture, equipment, vehicles and materials shall be procured through the competitive bidding procedures of the State concerned, satisfactory to the Association. 2. Civil works not exceeding 30% of the civil works included under the Project may be carried out departmentally under the supervision of Project construction units. 3. Items of furniture, equipment, vehicles and materials esti- mated to cost $10,000 equivalent or less, may be procured through normal trade channels. 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 M day of 190 . FOR SECRETARY