Senegal - Agricultural Research Project : Credit 1176 - Credit Agreement - Conformed

OFFICIAL CREDIT NUMBER 1176 SE DOCUMENTS Development Credit Agreement (Agricultural Research Project) between REPUBLIC OF SENEGAL and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated /2 , 1982 CREDIT NUMBER 1176 SE DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated /t$/ "2.. , 1982, between REPUBLIC OF SENEGAL (hereinafter called the Borrower) and INTER- NATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Associa- tion). WHEREAS (A) the Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) the Project will be carried out by the Institut S6n6galais de Recherches Agricoles, an ftablissement public a caractere industriel et commercial of the Borrower (hereinafter called ISRA), with the Borrower's assistance and, as part of such assistance, the Borrower will make available to ISRA the proceeds of the Credit as hereinafter provided; (C) for the purpose of assisting the Borrower in the prepar- ation of the Project, the Association, pursuant to an exchange of letters between the Borrower and the Association dated April 11, 1979, May 14, 1979, March 6, 1981 and August 5, 1981 has granted to the Borrower an advance (hereinafter called the Advance) in various currencies in an aggregate amount equivalent to one million dollars ($1,000,000); (D) the Association is prepared to refund the Advance out of the proceeds of the Credit provided for herein; (E) by agreement dated May 20, 1981, (hereinafter called the French Grant Agreement) the Republic of France has agreed, in the context of its Convention G6ngrale, to provide a grant (herein- after called the French Grant) to the Borrower in an aggregate principal amount of 2,957,000 French Francs to assist in financ- ing the Project on the terms and conditions therein set forth; (F) by agreement dated August 29, 1970, (hereinafter called the First USAID Grant Agreement) the United States Agency for International Development (hereinafter called USAID) has agreed, in the context of the Borrower's Casamance Integrated Development Project, to provide a grant (hereinafter called the First USAID Grant) to the Borrower in an aggregate principal amount of $23,710,000, approximately $2,700,000 of which is to assist in financing the Project on the terms and conditions therein set forth; -2- (G) by agreement dated May 16, 1981 (hereinafter called the Second USAID Grant Agreement), USAID has agreed, in the context of its PL 480 Title III Project, to provide a grant (hereinafter called the Second USAID Grant) to the Borrower, approximately $3,200,000 of which is to assist in financing Part C of the Project on the terms and conditions therein set forth; (H) in the context of its Agricultural Research Project for the Organization pour la Mise en Valeur du Fleuve Senegal, the Borrower intends to contract from USAID a grant (hereinafter called the Third USAID Grant) in an aggregate principal amount of $13,000,.000, approximately $4,200,000 of which is to assist in financ.ing the Project on the terms and conditions set forth in an agreement (hereinafter called the Third USAID Grant Agreement) to be entered into between the Borrower and USAID; (I) in the context of its Senegal Agricultural Research and Planning Project, the Borrower intends to contract from USAID a grant (hereinafter called the Fourth USAID Grant) in an aggre- gate principal amount of $4,950,000 to assist in financing Parts A and B of the Project on the terms and conditions set forth in an agreement (hereinafter called the Fourth USAID Grant Agreement) to be entered into between the Borrower and USAID; (J) by agreement dated April 8, 1980 (hereinafter called the CILSS Grant Agreement), the Comitg Inter-Etats de Lutte contre la Secheresse au Sahel (hereinafter called CILSS) has agreed, in the context of its Projet de Recherche et Dfvel- oppement de la Lutte Int6gree contre les Ennemis des Principales Cultures Vivrieres dans les Pays du Sahel, to provide a grant (hereinafter called the CILSS Grant) to the Borrower in an aggre- gate principal amount of $3,076,157 to assist in financing the Project on the terms and conditions therein set forth; (K) the Borrower intends to contract from the United Nations Interim Fund on Science and Technology for Development (herein- after called UNIFSTD) a grant (hereinafter called the UNIFSTD Grant) in an aggregate principal amount of $1,000,000 to assist in financing the Project on the terms and conditions set forth in an agreement (hereinafter called the UNIFSTD Grant Agreement) to be entered into between the Borrower and UNIFSTD; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing to extend the Credit to the Borrower upon -3- the terms and conditions hereinafter set forth and in the Project Agreement of even date herewith between the Association and ISRA; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the 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 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 and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Project Agreement" means the agreement between the Association and ISRA of even date herewith, as the same may be amended from time to time, and such term includes all schedules to the Project Agreement and all agreements supplemental to the Project Agreement; (b) "Caisse d'Avance" means the account to be opened by the Borrower pursuant to the provisions of paragraph (c) (ii) of Section 3.01 of the Development Credit Agreement; (c) "CFAF" means the currency of the Borrower; (d) "ISRA's Statutes" means the Borrower's Law No. 74-53 dated November 4, 1974, Decree No. 74-1122 dated November 19, 1974 and Decree No. 79-305 dated March 31, 1979, as such may be amended from time to time; and (e) "Consultative Group" means the Consultative Group on Agricultural Research in Senegal, consisting of the Borrower, -4- ISRA, the Republic of France, USAID, CILSS, UNIFSTD, the Associa- tion and any other donor of assistance for purposes of agricul- tural research in Senegal. 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 seventeen million special drawing rights (SDR 17,000,000). Section 2.02. (a) 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 Associa- tion, 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. (b) After the Effective Date, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and pay to itself the amount required to repay the principal amount of the Advance withdrawn and outstanding and to pay any unpaid charges thereon. Any unwithdrawn balance of the authorized amount of such Advance shall automatically be cancelled on the same date. Section 2.03. Except as the Association may 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 set forth or referred to in Section 2.06 of the Project Agreement. Section 2.04. The Closing Date shall be June 30, 1988 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 Associatiin a service charge at the rate of three-fourths of one per cent -5- (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 May 15 and November 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each May 15 and November 15 commencing November 15, 1991 and ending May 15, 2031, each installment to and including the installment payable on May 15, 2001, 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 Republic of France is hereby specified for the purposes of Section 4.02 of the General Conditions. Section 2.09. ISRA is designated as representative of the Borrower for the purposes of taking any action required or per- mitted to be taken under the provisions of Section 2.02 of this Agreement and Article V of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) Without any limitation or restriction upon any of its other obligations under the Development Credit Agreement, the Borrower shall cause ISRA to perform in accordance with the provisions of the Project Agreement all the obligations therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable ISRA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make the proceeds of the Credit available to ISRA on a non-refundable grant basis. (c) Pursuant to the provisions of paragraph (a) of this Section, but without any limitation thereon, the Borrower shall, for the purposes of the Project: -6- (i) make necessary annual budgetary allocations, on the basis of annual Project budget forecasts, which shall have priority over any other research activi- ties in the agriculture and livestock sectors; and (ii) open a Caisse d'Avance in the amount of CFAF 30,000,000 on terms and conditions satisfactory to the Association. Such Caisse d'Avance shall be replenished by the Borrower to the extent that documentary evidence is furnished by ISRA indicat- ing that payments made from such Caisse were properly incurred by ISRA in the carrying out of the Project. Section 3.02. Not later than three months prior to the completion of each fiscal year of ISRA, the Borrower shall, in accordance with terms and conditions satisfactory to the Associa- tion, convene a meeting of the Consultative Group to exchange views on the progress of the Project, the performance of the Borrower's obligations under the Development Credit Agreement, the performance of ISRA's obligations under the Project Agreement, the effectiveness of ISRA's reorganized structure and management, if appropriate, the impact of the Project on agricultural development in Senegal and other matters relating to the purposes of the Credit, including ISRA's annual work programs and budgets fur- nished to the Consultative Group pursuant to Section 3.03 (a) of the Project Agreement. Section 3.03. Not less than once per year, the Borrower shall, in accordance with terms and conditions satisfactory to the Association, convene a meeting of the Consultative Group to review the staff training requirements of ISRA. Section 3.04. The Borrower shall, through its Ministere responsible for water and its Ministare responsible for energy, ensure that water and electricity services are extended to the sites under Part C of the Project in Kolda, Nioro du Rip, Kaolack and Richard Toll not later than March 31, 1982 or such later date as may be acceptable to the Association. -7- ARTICLE IV Remedies of the Association Section 4.01. For the purposes ,of Section 6.02 of the General Conditions the following additional events are specified pursuant to paragraph'(h) thereof: (a) ISRA shall have failed o 'perform any of its covenants, agreements or obligations under the Project Agreement; (b) - an extraordinary situation shall, havq aripen which shall make it improbable that ISRA will be able to perform its obligations under the Project Agreement; (c) the Borrower or any other authority having jurisdiction shall have taken any action for the dissolution of ISRA or for the suspension of its operations; (d) ISRA's Statutes shall have been amended, suspended, abrogated, repealed, waived,,.or shall cease to be enforced, so as to affect materially and adversely the carrying out by ISRA of its covenants, agreements and obligations set forth in the Project Agreement; (e) subject to subparagraph (ii) of this paragraph: (i) the right of the Borrower to withdraw the proceeds of the French Grant, the First USAID Grant, the Second USAID Grant, the Third USAID Grant, the Fourth USAID. Grant, the CILSS Grant, the UNIFSTD Grant or of any other grant or loan made to. the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the French Grant Agreement, the First USAID 'Graqt Agreement, the Second USAID Grait "'Agreement, the Third USAID Grant Agreement, the.Fourth UASID Grant Agreement,' the CILSS Grant Agreement, the UNIFSTD Grant Agreement or any other agreement proViding therefor, respectively; (ii) subparagraph (i) of. this paragr4ph shall ot apply if: (A) such suspension, cancellation, termination or prematuring is not caused by the failure ,of te -8- Borrower to perform any of its obligations under any such agreement; and (B) adequate funds for the Project are available to the Borrower and ISRA from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement and of ISRA under the Project Agreement. Section 4.02. For the purposes of Section 7.01 of the General Conditions, the following additional events are specified pursuant to para3raph (d) thereof: (a) any event specified in paragraphs (a) or (c) of Section 4.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Association to the Borrower and ISRA; and (b) any event specified in paragraph (d) of Section 4.01 of this Agreement shall occur. ARTICLE V Effective Date; Termination Section 5.01. 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) ISRA's administrative structure has been modified pursuant to an amendment to ISRA's Statutes (published in the Borrower's Journal Officiel) satisfactory to the Association; (b) the following staff referred to in paragraph (a) of Section 2.02 of the Project Agreement have been hired and are in post: (i) the chief of the internal auditing and budgetary control unit *and the senior research planning and evaluation adviser at ISRA's headquarters; (ii) the head of ISRA's Production Systems and Rural Technological Transfer Department; (iii) the head of ISRA's Commodity Research Department; and (iv) the head of ISRA's Support Services Department, the architect/planner and the project coordinator. -9- (c) the auditors referred to in paragraph (c) of Section 2.03 of the Project Agreement have been hired with qualifica- tions and experience and terms of reference satisfactory to the Association; (d) the Caisse d'Avance has been opened as provided in paragraph (c) (ii) of Section 3.01 of the Development Credit Agreement and the Borrower has furnished evidence satisfactory to the Association that an initial deposit of CFAF 30,000,000 into the Caisse d'Avance has been made; (e) the Association has been notified by USAID, CILSS and UNIFSTD that all conditions precedent to the initial disbursements of the Second USAID Grant, the Fourth USAID Grant, the CILSS Grant and the UNIFSTD Grant, respectively, other than the effectiveness of this Agreement, have been fulfilled; and (f) the Borrower has furnished to the Association a financ- ing plan satisfactory to it for ISRA's operations and their costs to December 31, 1984. Section 5.02. The following is specified as an additional matter, 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, namely, that Project Agreement has been duly authorized or ratified by ISRA, and is legally binding upon ISRA in accordance with its terms. Section 5.03. The date /L /94 is hereby specified for the purposes of Secti n 12(04 of the 6eneral Conditions. Section 5.04. The provisions of paragraph (b) of Section 4.02 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 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. - 10 - Section 6.02. The following addresses are specified for the purpose of Section 11.01 of the General Conditions: For the Borrower: Ministere de l'Economie et des Finances Rue Charles Latne B.P. 4017 Dakar Republic of Senigal Cable address: Telex: MINIFINANCES 512 Dakar, S6n&gal TRESOR SG 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 t.ereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF SENEGAL By// 014-e-1 Authorize9lepresentative INTERNATIONAL DEVELOPMENT ASSOCIATION B y / , 'C - / /4 Regional Vice President Western Africa - 11 - 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 and 8,090,000 86% Site Development (2) Vehicles and 440,000 ) 100% of for- Equipment ) eign expendi- ) tures and 90% ) of local ) expenditures (3) Small farm equip- 1,140,000 ) ment and Research ) Supplies ) (4) Scientists and 3,660,000 100% Consultants (5) Training Costs 270,000 100% (6) Refunding of Advance 870,000 (7) Unallocated 2,530,000 TOTAL 17,000,000 2. 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 - 12 - 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. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for: (a) expenditures prior to September 8, 1981; and (b) expenditures under Category (1) for civil works in respect of Part C of the Project at Fanaye and Richard Toll until the Association has been notified by USAID that all condi- tions precedent to the initial disbursement of the Third USAID Grant, other than the effectiveness of this Agreement, have been fulfilled. 4. 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: (M) 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. 5. 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 - 13 - expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way 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 In accordance with the Borrower's decision to reorient the nature of its agricultural research activities and to make them more responsive and applicable to the constraints of the producer, the Project constitutes the first phase of a long-term support program to strengthen regional research capability in Senegal. The Project consists of: Part A: Research Programs The establishment and implementation over a six-year period, of: (1) five research programs regarding crop/livestock production systems: (a) at Fanaye (Senegal River Valley) with emphasis on irrigated agriculture; (b) at Nioro du Rip (South Groundnut Basin) with emphasis on rainfed agriculture; (c) at Dahra (Sylvo-pastoral zone) with emphasis on livestock production; (d) at Djibelor (Lower Casamance) with emphasis on various techniques for rice production; and (e) at Kolda (Upper Casamance) with emphasis on livestock production; and (2) six mltidisciplinary research programs, nationally coordinated, regailing the following priority commodi- ties.1 groundnuts, cowpeas, millet, sorghum, maize and .rice. Part B: Institutional Development of ISRA (1) Strengthening of ISRA's headquarters through: (a) the establishment, staffing and operation of: (i) a monitoring and evaluation unit; (ii) an internal auditing and budgetary control Unit; and - 15 - (iii) a macro-economics unit; and (b) the establishment, staffing and operation of a liaison office at Dakar. (2) Reorganization of ISRA through: (a) the establishment, staffing and operation of a Technological Transfer Production System and Rural Research Department, including: (i) a central systems analysis group; (ii) a support research liaison section; and (iii) five research teams responsible for the imple- mentation of the research programs on produc- tion systems referred to in Part A (1) of the Project; (b) the staffing and operation of a Commodity Research Department for the implementation of the research programs on priority commodities referred to in Part A (2) of the Project; (c) the staffing and operation of a Livestock Research Department; and (d) the establishment, staffing and operation of a Support Services Department in charge of research station management and central laboratories, including: (i) a manpower development and training unit at ISRA's headquarters; (ii) a technical support unit at Dakar; (iii) a documentation and publication unit at ISRA's headquarters; and (iv) a data processing and statistics unit at the Centre de Recherches Oc6anographigues at Dakar-Thiaroye. - 16 - (3) Training of research workers and senior administrative staff through the provision of fellowships overseas, workshops, seminars and conferences in Senegal. Part C: Infrastructure (1) Developing, rehabilitating and equipping ISRA's research stations at Fanaye, Dahra, Bambey, Nioro du Rip, Kolda and Djibelor including the construction of about 106 housing units (of which about 6 at Richard Toll and about 18 at Kaolack) and about 11,400 m2 of offices, laboratories, farm buildings and cattle and sheep pens. (2) Developing and equipping an experimental irrigation perimeter at the research station at Fanaye (about 100 ha). (3) Constructing and equipping a documentation and publica- tion center at ISRA's headquarters. T * * The Project is expected to be completed by December 31, 1987. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foreging is a true copy of the originalfin 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 198 FOR SECRETARY