Cameroon - Second Technical Cooperation Project : Credit 1168 - Credit Agreement - Conformed

0Opp?TCJI'K CREDIT NUMBER 1168 CM Development Credit Agreement (Second Technical Cooperation Project) between UNITED REPUBLIC OF CAMEROON and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated 1981 CREDIT NUMBER 1168 CM DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated IVOV4-,4.L. , 1981, between UNITED REPUBLIC OF CAMEROON (hereinafter called the Borrower) 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 additional terms have the following meanings: (a) "MINEP" means the Borrower's ministry responsible for development planning and programming; (b) "MINFI" means the Borrower's ministry responsible for finance; (c) "MINAGRI" means the Borrower's ministry responsible for agriculture;. (d) "MINAS" means the Borrower's ministry responsible for social affairs; (e) "SNI" means Societ& Nationale d'Investissement, a state corporation of the Borrower established pursuant to the Borrower's Law No. 63/25 of June 19, 1963 and -Decree No. 64/DF/486 of December 16, 1964, as amended; (f) "DEP" means the Direction des Etudes et Projets established within MINAGRI pursuant to the Borrower's Decree No. 76/256 of July 1, 1976, or any successor to DEP; (g) "DI" means the Directorate of Industry within MINEP, or any successor thereto; -2- (h) "External Debt Division" means the Division de la Dette Publique established within MINFI pursuant to the Borrower's Decree No. 81/064 of February 10, 1981, or any successor thereto, and (i) "Letter Agreement" means the agreement of even date herewith between SNI and the Association. 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 equivalent to eight million two hundred thousand Special Drawing Rights (SDR 8,200,000). 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 terrower and the Association, for expenditures made (or, if the A 'ociation shall so agree, to be made) in respect of the reasor .Ale 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, goods to be financed out of the proceeds of the Credit shall be procured on the basis of competitive bidding advertised locally, in accordance with local procedures acceptable to the Association. Section 2.04. The Closing Date shall be December 31, 1985, or such later date as the Association shall establish. The Association 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 May 15 and November 15 in each year. -3- 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. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project as described in Schedule 2 to this Agreement, with due diligence and efficiency and in conformity with appropriate administrative, financial, economic planning and training practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without any limitation or restriction upon its obliga- tions under paragraph (a) of this Section, the Borrower shall: (i) provide adequate budgetary appropriations, in the annual budgets of each of its ministries and agencies responsible for the execu- tion of any part of the Project, to make available the funds to be contributed from its own resources for meeting Project expenditures; (ii) provide adequate local support personnel and materials and services (including, in the case of resident specialists, office facilities) to the specialists and consul- tants employed under the Project; (iii) appoint and ensure the availability of qualified Cameroonian professional staff as required for training activities under the Project; and (iv) second to SNI the resident specialists and consultants referred to in paragraphs 1 (c), 1 (d) and 2 (d) of Schedule 3 to this Agreement, provide it with the vehiclest equipment, and supplies procured under the Project for the execution of Part D (ii) of the Project, and cause it to carry out said Part of the Project in accordance with the Development Credit Agreement and the Letter Agreement. Section 3.02. In order to ensure effective monitoring of the progress of the Project and coordination among the ministries and -4- agencies of the Borrower responsible for the execution of the Project, the Borrower shall: (a) designate in MINEP, under terms of reference satis- factory to the Association, a Project Coordinator, qualified and experienced in administrative matters, development planning and development projects and reporting directly to the Secretary General of MINEP who shall have overall responsibility for the coordination of Project execution; (b) cause the relevant entities within the ministries and agencies concerned to cooperate effectively with the Project Coordinator in carrying out their respective responsibilities regarding the execution of the Project and to furnish quarterly progress reports to the Project Coordinator on their Project activities; and (c) at least semiannually, convene a meeting of the Project Coordinator, representatives of said ministries and agencies and other services of the Borrower concerned with the Project to review the status of Project activities, the results and recommen- dations originating therefrom, and further action to be taken for carrying out the Project and accomplishing the purposes of the Credit. Section 3.03. In order to assist the Borrower in carrying out the Project, the Borrower shall employ specialists and consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association, in accordance with the provisions of Schedule 3 to this Agreement. Section 3.04. Before entering into any contract with spe- cialists or consultants to be employed under the Project or under- taking any training program to be financed out of the proceeds of the Credit, the Borrower shall furnish the proposed contract, including terms of reference, or a description of the proposed training program, as the case may be, to the Association for its review and concurrence. Except as the Association may otherwise agree, such proposals shall be furnished to the Association together with the following supporting documentation: (a) a detailed description of the services, studies or training programs proposed to be carried out, including the purposes and objectives of the proposed activities and the benefits expected therefrom, and of any vehicles, equipment or materials required in connection with such activities; -5- (b) detailed information regarding the qualifications, terms of reference and duration of service for any specialists or consultants to be employed under the Project for the purpose of such activities; (c) a description of the functions of the ministry, agency or personnel of the Borrower to be responsible for the execution of such activities; (d) a description of the support services and facilities to be provided by the Borrower for the purpose of the proposed activities, evidence of the measures taken by the Borrower to ensure the availability of such services and facilities, and a list of the Cameroonian personnel, if any, to be employed for such activities in accordance with the provisions of paragraph (b) (iii) of Section 3.01 of this Agreement; and (e) estimates of foreign and local costs of the proposed activities broken down by major items and showing amounts and items to be financed by the Borrower and out of the proceeds of the Credit, respectively, and an estimated disbursement schedule. Section 3.05. (a) The Borrower shall take all reasonable measures to facilitate the work of the specialists and consultants employed under the Project in the performance of their services therefor and make available to them all information required for such work. (b) The Borrower shall not amend or waive any of the terms and conditions of employment of the specialists or consultants employed under the Project, or grant any material extension of time or any approval of sub-contracts or modifications thereof, or agree to any substitution of personnel of such consultants, or suspend payments under, or terminate, any contract with such specialists or consultants without the prior concurrence of the Association. Section 3.06. The Borrower shall from time to time exchange views with the Association with respect to the evaluation and implementation of the recommendations and other conclusions of reports and studies prepared under the Project. Section 3.07. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, any 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 -6- any indemnity shall be payable 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 3.08. 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 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 Pand the goods and services financed out of such proceeds, including, uithout limita- tion to the foregoing, biannual progress reports on the execution of the Project. (b) 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 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. (c) Upon the award by the Borrower of any contract for services to be financed out of the proceeds of the Credit, the Association may publish a description thereof, the name and nationality of the party to whom the contract was awarded and the contract price. 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 operations, -7- resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof, including consolidated accounts to record all Project expenditures and to be maintained by MINEP (hereinafter called the Project Accounts). Section 4.02. The Borrower shall: (i) have the Project Accounts for each fiscal year audited, in accordance with appro- priate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) 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) a certified statement of the Project Accounts 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; and (iii) furnish to the Association such other information concerning the Project Accounts and the audit thereof as the Association shall from time tc time reasonably request. ARTICLE V Termination Section 5.01. The date4 Ttvlk is hereby specified for the purposes of Section 12.0 of the General Conditions. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for planning 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: Ministry of Economic Affairs and Planning Yaounde United Republic of Cameroon -8- Cable address: Telex. MINEP 8268 KN or Yaound6 8303 KN 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. UNITED REPUBLIC OF CAMEROON ByIS*4"/& -C - Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION Regional Vice President Western Africa -9- 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) Resident specialists' 2,350,000 100% services (2) Consultants' 2,660,000 70% services (3) Vehicles, equipment 490,000 100% and supplies (4) Unallocated 2,700,000 TOTAL 8,200,000 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 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: (a) in respect of payments made for expenditures prior to June 23, 1981; and - 10 - (b) in respect of expenditures for Part F of the Project, until evidence satisfactory to the Association shall have been furnished to the Association, showing that the Borrower has established a planning and studies unit within MINAS with such functions, responsibilities and organization as shall be satis- factory to the Association. 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: (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 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. 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 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 Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for inancing out of the proceeds of the Credit. - 11 - SCHEDULE 2 Description of the Project The Project is designed to assist the Borrower in the carry- ing out of its Fifth Development Plan through: (i) the improvement of the organization and operation of its national planning and external debt management systems; (ii) the definition of appro- priate investment policies and programs in key sectors such as in particular agriculture, industry, energy and social development; (iii) the support of project preparation activities and the strengthening of project management in these sectors; and (iv) the training of Cameroonian staff required for the foregoing. The Project consists of the following Parts: Part A: National Development Planning (i) Preparatory studies and subsequent setting up by MINEP's Planning Department of (a) an improved monitoring system for the Borrower's Fifth Development Plan, (b) a plan- ning data bank, (c) a simulation model for the national economy, and (d) improved forecasts of recurrent costs of development projects and their incorporation in the relevant budgets. (ii) Industrial and household consumption surveys by MINE'.s Statistical Department. Part B: External Debt Management Establishment and putting into operation by MINFI's External Debt Division of a system to record and monitor each external public debt obligation and to assess, on a continuing basis, the development of the overall external debt structure and future debt service obligations, including training of staff required for this purpose. Part C: Agriculture Strengthening of MINAGRI's DEP which shall, in particular: (i) prepare, supervise and evaluate agricultural and rural development projects; - 12 - (ii) undertake agricultural sector analyses and studies on such matters as agricultural prices and marketing arrangements, to permit the elaboration of appropriate investment policies and programs for the sector; and (iii) train agricultural sector staff, especially in the preparation, management and supervision of agricultural and rural development projects. Part D: Industry (i) Strengthening of DI and analyses and studies of the industrial sector by DI, with particular emphasis on (a) revision of the Investment Code, (b) long-term market prospects for products in areas where Cameroon enjoys comparative advantages, (c) definition of ways to promote sub-contracting to local entities and their integration in the industrialization process, and (d) investment incentives to permit the elaboration of appropriate investment policies and programs for the sector; training of DI staff. (ii) Strengthening of SNI and preparation of industrial development projects by SNI, including training of SNI staff. Part E: Energy Strengthening of the Borrower's institutions responsible for the energy sector, including studies to identify present and future energy consumption patterns in Cameroon, the setting up of an information system to coordinate energy research in Cameroon and the organization of the documentation on national energy resources, and training of Cameroonian staff required for these purposes. Part F: Social Development Strengthening of MINAS and analyses and studies by MINAS regarding the social impact of policies, investment programs and development projects in the principal sectors of the Borrower's economy, including the establishment of a statistical data base, and training of MINAS staff. - 13 - Part G: Additional Activities Further studies, training or related activities to be identi- fied during Project execution and agreed upon between the Borrower and the Association. The Project is expected to be completed by June 30, 1985. - 14- SCHEDULE 3 Specialists and Consultants' Services (Section 3.03 of the Development Credit Agreement) Except as the Association may otherwise agree, the Borrower shall in particular employ the following specialists and consul- tants: Approximate Part of the Project duration for which services of services are to be used (in months) 1. Resident Specialists (a) Agricultural Planner C 24 (b) Industrial Policy Adviser D (i) 36 (c) Industrial Engineer D (ii) 24 (d) Agro-engineer D (ii) 24 (e) Energy Advisor E 36 (f) Socio-Economist F 36 (g) Statistician/Demographer F 36 2. Short-term Consultants (a) Development Planning A 80 (b) External Debt Management B 36 (c) Agriculture C 84 (d) Industry - MINEP/DI D (i) 24 - SNI D (ii) 24 (e) Energy E 36 (f) Social Development F 36 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 198L. FOR SECRETARY