Benin - Fourth Highway Project : Credit 1142 - Credit Agreement - Conformed

OFFICIAL CREDIT NUMBER 1142 BEN DOCUMENTSI Development Credit Agreement (Fourth Highway Project) between PEOPLE'S REPUBLIC OF BENIN and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated ,1981 CREDIT NUMBER 1142 BEN DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated , 1981, between PEOPLE'S REPUBLIC OF BENIN hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). 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) pursuant to a development credit agreement dated November 18, 1977, the Association has extended credit (No. 745 BEN) to the Borrower for the purpose of assisting in financing a prior highway project (hereinafter called the Third Highway Project); (C) the Borrower further intends to contract from the Organization of the Petroleum Exporting Countries Fund for Inter- national Development (hereinafter called the OPEC Fund) a loan (hereinafter called the OPEC Fund Loan) in an amount equivalent to about six million dollars ($6,000,000) to assist in the financing of the Project on the terms and conditions set forth in an agree- ment (hereinafter called the OPEC Fund Loan Agreement) to be entered into between OPEC and the Borrower; and WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; 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 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 -2- 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) "MTPCH" means the Ministere des Travaux Publics, de la Construction et de l'Habitat, the Borrower's Ministry of Public Works, Construction and Housing, or any successor thereto; (b) "DRP" means the Direction des Routes et Ponts, the Borrower's Directorate of Roads and Bridges within MTPCH, or any successor thereto; (c) "DTT" means the Direction des Transports Terrestres, the Land Transport Directorate within the Borrower's Ministry of Transport and Communications, or any successor thereto; (d) "Road Fund" means the fund established within MTPCH to finance road maintenance and road related studies; (e) "CERFER" means the Centre R6gional de Formation pour L'Entretien Routier, a center within the Conseil d'Entente, which is a regional organization based in Lome, Togo; said center is used for the training of road maintenance personnel from member states of the region; (f) "CNERTP" means the Centre National d'Essais et de Recherches des Travaux Publics, the Borrower's national research center for public works which operates under the supervision of MTPCH; (g) "CFA Francs" and the letters "CFAF" mean the Franc de la Communaute Financiere Africaine, the common currency of the Borrower and the other members of the West African Monetary Union; and (h) "Special Account" means the account referred to in Section 2.02 (b) of this Agreement. 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 -3- equivalent to nine million three hundred thousand Special Drawing Rights (SDR 9,300,000). 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) The Borrower shall, for the purposes of the Project, open a Special Account in a commercial bank on terms and condi- tions satisfactory to the Association. Parments out of the Special Account shall be made exclusively to pay the reasonable costs of goods and services required to carry out the Project and to be financed under this Agreement in respect of Categories (2), (3), (5), (6) and (7) of the table set forth in paragraph 1 of Schedule 1 hereto. (c) The Association shall, promptly after the Effective Date, withdraw on behalf of the Borrower from the Credit Account and deposit in the Special Account referred to in paragraph (b) of this Section an initial amount in the currency of the Borrower equivalent to SDR 328,000. Thereafter, at the request of the Borrower, the Association shall further so withdraw from the Credit Account and deposit in the Special Account such amounts as shall be required to replenish the Special Account with amounts equal to payments made out of the Special Account for expenditures for the Project eligible for financing under this Agreement, but only to the extent that the amount of any such deposit, together with any amount remaining on deposit in the Special Account as of the date of such request, shall not exceed in the aggregate the equivalent of SDR 328,000. Except as the Association shall otherwise determine, each such deposit after the initial deposit shall be withdrawn by the Association from the Credit Account under the same Categories set forth in the table in paragraph 1 to Schedule 1 to this Agreement, and in the same respective amounts, as have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph (d) of this Section. (d) Prior to or at the time of each request for a deposit by the Association into the Special Account, the Borrower shall -4- furnish to the Association in respect of each payment made by the Borrower out of the Special Account such documents and other evidence as the Association shall reasonably request, showing that the payment was made on account of the reasonable cost of goods or services required for the Project and to be financed out of the proceeds of the Credit in accordance with Schedule 1 to this Agreement. (e) If the Association shall have determined that any payment out of the Special Account (i) was made for any expendi- ture or in any amount not eligible for financing by withdrawal from the Credit Account, or (ii) was not justified by the evidence furnished pursuant to paragraph (d) of this Section, the Borrower shall, promptly upon notice from the Association and, unless otherwise determined by the Association, prior to any further deposit in the Special Account by the Association, deposit in the Special Account an amount equal to the amount of such payment or the portion thereof not so eligible or justified. (f) Notwithstanding the provisions of paragraph (c) of this Section, no further deposit in the Special Account shall be made by the Association when the Association shall have determined that all further withdrawals from the Credit Account can be made directly by the Borrower from the Credit Account under paragraph (a) of this Section, or when the total amount withdrawn from the Credit Account plus the amount of any qualified agreement to reimburse made by the Association and of any special com- mitment entered into by the Association pursuant to Section 5.02 of the General Conditions, shall have reached the equivalent of SDR 8,972,000 whichever shall be sooner. Withdrawal from the Credit Account of the remaining amount of the Credit for the Project shall follow such procedures as shall be agreed between the Borrower and the Association and shall be made only to the extent that the Association shall be satisfied by the evidence submitted in support of the applications for such withdrawal that all payments by the Borrower out of the Special Account were made on account of the reasonable cost of goods or services required for the Project and to be financed out of the proceeds of the Credit in accordance with Schedule 1 to this Agreement. 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. -5- Section 2.04. The Closing Date shall be June 30, 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 June 1 and December 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each June 1 and December 1 commencing June 1, 1991, and ending December 1, 2030, each installment to and including the installment payable on December 1, 2000, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the 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. The Borrower shall carry out or cause to be carried out Parts A, B, C and D of the Project through DRP, Part E of the Project through DRP with the assistance of CNERTP and Part F of the Project through DTT in coordination with DRP, with due diligence and efficiency and in conformity with appro- priate financial, administrative and engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. (a) In order to assist the Borrower in carry- ing out the Project, the Borrower shall employ the following consultants and specialists whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association: (i) one or two specialists in management and administration; (ii) three road engineers or road technicians; (iii) one road safety specialist; (iv) one mechanic; (v) one mechanic instructor; and (vi) one electrician. -6- (b) The Borrower shall assign sufficiently qualified Beninese personnel to work in close cooperation with the consul- tants and specialists referred to in paragraph (a) of this Section. (c) The Borrower shall create a permanent position within DRP for a mechanic instructor and shall ensure that, until completion of the Project, the person holding such position shall have qualifications and experience acceptable to the Association; this position will initially be filled by the person assigned, pursuant to paragraph (b) of this Section, to work with the mechanic instructor referred to in paragraph (a) (v) of this Section. 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 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 usable by the Borrower to replace or repair such goods. (b) Except as the Association shall otherwise agree, all goods and services financed out of the proceeds of the Credit shall be used exclusively for the Project until its completion. Section 3.04. (a) The Borrower shall furnish to the Associa- tion, promptly upon their preparation, the plans, specifications, reports, contract documents and construction and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Association shall reasonably request. (b) The Borrower shall: (i) 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) 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) 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, -7- the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds including, without limitation to the foregoing, quarterly progress reports on the execution of each Part of the Project. (c) Upon the award by the Borrower of any contract for goods, works or 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. (d) 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 be taken all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for carrying out the Project and shall furnish to the Association, at its request, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. Section 3.06. (a) Except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out or cause to be carried out under Part D (1) of the Project (i) the rehabilita- tion of the laterite roads specified in the Annex to Schedule 2 to this Agreement during the first two years of Project execution, and (ii) thereafter, the rehabilitation of additional laterite roads of an aggregate length of about 130 km which shall be selected during the second year of the Project execution and which shall be acceptable to the Association; such rehabilitation shall be carried out pursuant to a work plan to be agreed annually between the Borrower and the Association. (b) Except as the Borrower and the Association shall otherwise agree, the road rehabilitatioa works under Part D (1) of - 8 - the Project shall be carried out in accordance with the design standards specified in Schedule 4 to this Agreement. Section 3.07. Until completion of the Project, the Borrower shall operate the training center to be established under Part C (1) of the Project in accordance with annual training programs acceptable to the Association. Section 3.08. (a) The Borrower shall, prior to the construc- tion of the vehicle inspection center provided for under Part F (1) of the Project, prepare or cause to be prepared with the assistance of the road safety specialist referred to in Section 3.02 (a) (iii) of this Agreement: (i) rules and regulations establishing vehicle inspection standards satisfactory to the Association; and (ii) a plan of operation satisfactory to the Association for said vehicle inspection center. (b) The Borrower shall promptly take all measures necessary to ensure the application of the rules and regulations and the plan of operation referred to in paragraph (a) of this Section. (c) The Borrower shall make available, promptly as needed, the funds required for the efficient operation of the vehicle inspection center referred to in paragraph (a) of this Section. Section 3.09. The Borrower shall, prior to the procurement of the two weighbridges provided for under Part F (2) of the Project and in order to ensure compliance with the axle load regulations referred to in Section 4.04 of this Agreement: (i) satisfy the Association that the two existing weighbridges at Parakou and Malanville are operating; (ii) select sites acceptable to the Association for the installation of the weighbridges to be provided under said Part of the Project; and (iii) operate its weighbridges pursuant to regulations satisfactory to the Association. Section 3.10. (a) The Borrower shall pay DRP trainees participating in the training programs provided for under Part C (1) an allowance of at least CFAF 1,000, in addition to their normal salary, for each day they attend any such training program. (b) The Borrower shall award fellowships under Part C (2) of the Project to DRP personnel with qualifications satisfactory to the Association for training programs agreed to by the Associa- tion. -9- ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operationw, 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. (b) The Borrower shall: (i) maintain, or cause to be maintained, as part of the records referred to in paragraph (a) of this Section, separate accounts reflecting all expendi- tures on account of which withdrawals are requested from the Credit Account on the basis of certified statements of expenditure; and (ii) 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 certified statements of expenditure, and enable the Asso- ciation's accredited representatives to examine such records. (c) The Borrower shall: (') have the separate accounts and records referred to in paragralh (b) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by auditors acceptable to the Borrower and 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 certified copy of the report of such audit by such auditors, of such scope and in such detail as the Association shall have reasonably requested, including without limitation to the foregoing, an opinion by said auditors in respect of the expenditures and records referred to in said paragraph as to whether the proceeds of the Credit withdrawn from the Credit Account on the basis of certified statements of expenditure have been used for the purpose for which they were provided; and (iii) furnish to the Association such other infor- mation concerning said separate accounts, records and expenditures - 10 - and the audit thereof as the Association shall from time to time reasonably request. Section 4.02. (a) The Borrower shall cause the main and secondary roads rehabilitated under Part D of the Project and the road equipment provided under the Project to be maintained ade- quately and shall cause all necessary repairs and renewals thereof to be made promptly all in accordance with appropriate engineering standards and economic practices, and shall provide, promptly as needed, the funds, facilities, equipment, services and other resources required for the foregoing. (b) Without any limitation on the provisions of paragraph (a) of this Section, the Borrower shall ensure that: (i) for its fiscal year 1982, the total amount of contributions to the Road Fund from all sources for purposes of road maintenance shall be at least CFAF 1,300,000; and (ii) for each subsequent fiscal year until completion of the Project and after an exchange of views with the Association, such total amount shall be increased as required to take into account cost increases due to inflation and the scope of required maintenance operations. (c) For the contributions to the Road Fund referred to in paragraph (b) of this Section: (i) the contribution from the Borrower's annual budget shall be transferred to the Road Fund in equal amounts at the beginning of each quarter; and (ii) the contribution from taxes levied on the sale of gasoline and diesel fuel shall be increased periodically as needed for road maintenance purposes following an exchange of views with the Association. Section 4.03. Pursuant to its obligations under Section 4.02 (a) of this Agreement and without any restriction thereto, the Borrower shall, in its Road Fund budget for each fiscal year, include an adequate allocation for the amortization of DRP's maintenance equipment and use the funds so allocated exclusively for the renewal of such equipment during such year or subsequent years. Section 4.04. The Borrower shall take all such measures as shall be reasonably required to enforce the limits presently established or to .e established for the axle loads of vehicles using its main and secondary roads. - 11 - 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: (i) Subject to subparagraph (ii) of this paragraph: (A) the right of the Borrower to withdraw the proceeds of the OPEC Fund 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 providing therefor; or (B) the OPEC Fund Loan shall have become due and payable prior to the agreed maturity thereof. (ii) Subparagraph (i) of this paragraph shall not apply if: (A) in case of an event referred to in sub- paragraphs (i) (A) and (B) of this paragraph, such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (B) adequate funds for the Project are available from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. 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 the event specified in paragraph (i) (B) of Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit - 12 - Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that: (a) the OPEC Fund Loan Agreement has been executed and the conditions precedent, if any, to the effectiveness of, or initial disbursement under such Agreement have been fulfilled, subject only to the effectiveness of this Agreement; and (b) the Special Account has been opened as provided in Section 2.02 (b) of this Agreement. Section 6.02. The date / C3bis hereby speci- fied for the purposes of Section 12.04 of the General Conditions. Section 6.03. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date fifteen years after the date of this Agreement, whichever shall be the earlier. ARTICLE VII Representatives of the Borrower; Addresses Section 7.01. The Minister of the Borrower responsible for finance 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 P.O. Box 302 Cotonou People's Republic of Benin Cable address: Telex: MINIFINANCES 5009 or Cotonou 5289 - 13 - 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. PEOPLE'S REPUBLIC OF BENIN By ~ ITiL,~~LW~~i Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By IsI ow'j & o Regional Vice President Western Africa - 14 - 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) Equipment and 1,310,000 40% tools (2) Civil works for 1,230,000 75% Part D (1) of the Project; research (3) Fuel, materials, 1,400,000 100% of for- and spare parts eign expendi- for Part D (1) of tures and, the Project if purchased locally, 90% of local expenditures (4) Civil works for 1,900,000 32% Part D (2) of the Project (5) Construction and 250,000 75% rehabilitation of buildings (6) Consultants' 1,500,000 100% of for- services and eign expendi- scholarships tures and 90% of local expenditures - 15 - Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (7) Initial deposit 328,000 under Section 2.02 (c) to pre- finance items under categories 2, 3, 5 and 6 above (8) Unallocated 1,382,000 TOTAL 9,300,000 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, provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods or services are supplied, expenditures in such cur- rency for such goods or services shall be deemed to be "foreign expenditures"; and (b) the term "local expenditures" means expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in com- pliance with the policy of the Association that no proceeds of the Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Credit decreases or increases, the Association may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Association. - 16 - 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expendi- tures prior to the date of this Agreement, except that: (a) with- drawals, in an aggregate amount not exceeding the equivalent of $1,500,000 may be made in respect of Category 4 on account of payments made for works executed under Part D (2) of the Project between February 28, 1981 and the date of this Agreement; and (b) withdrawals in an aggregate amount not exceeding the equiva- lent of $130,000 may be made in respect of Category 5 on account of payments made for expenditures for the construction and equip- ping of office facilities under Part A of the Project between January 1, 1981 and the date of this Agreement. 5. Notwithstanding the percentage of expenditures specified in respect of Category 4 in the table set forth in paragraph 1 of this Schedule, but without prejudice to paragraph 4 (a) of this Schedule, 87% of expenditures under said Category for payments made by the Borrower up to June 30, 1981 shall be eligible for financing out of the proceeds of the Credit. 6. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 1 above, or the disbursement percentage set forth in paragraph 5 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. 7. 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 - 17 - Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 18 - SCHEDULE 2 Description of the Project The Project is designed (i) to strengthen the Borrower's Directorate of Roads and Bridges (DRP), (ii) to continue the rehabilitation of the Borrower's road network, and (iii) to improve road safety in Benin. The Project consists of the following Parts: Part A: Strengthening of DRP's Administration Construction and equipping of office facilities for an administrative division. Part B: Improvement and Expansion of DRP's Workshops (1) Rehabilitation and equipping of two workshops, one at Parakou and one at Natitingou. (2) Provision of equipment for the workshop at Cotonou. Part C: Training of DRP Staff (1) Establishment and initial operation of a training center at DRP's workshop at Cotonou: the rehabilitation and equipping of facilities for such center and the training of DRP's field, workshop and office staff. (2) CERFER scholarships for DRP technicians to be trained at CERFER. Part D: Road Rehabilitation (1) Provision of new equipment for two road rehabilitation brigades and the carrying out of a three-year rehabili- tation program for about 500 km of laterite roads, including the roads specified in the Annex to this Schedule. (2) Reconstruction and resealing of sections totalling about 84 km of the Cotonou-Hilacondji and Come-Lokossa - Dogbo paved roads. - 19 - Part E: Materials Research Research on road-building materials in southern Benin and the provision to CNERTP of soil testing equipment. Part F: Road Safety and Axle Load Control (1) Construction and equipping of a vehicle inspection center at Cotonou. (2) Installation of two vehicle weighbridges in southern Benin. (3) Provision of a road marking machine and installation of road traffic signs. The Project is expected to be completed by December 31, 1984. - 20 - ANNEX TO SCHEDULE 2 Laterite Roads to be Rehabilitated under Part D (1) of the Project Section Class Length (km) South: Lokossa-Aplahoue M 37 Bohicon-Ahlan M 51 Akplo-Adjohoun S 23 Ouidah-Allada M 39 North: Djougou-Parakou M 134 Nikki-Kalale S 50 Natitingou-Kouande S 37 Total 371 M - Main Roads S - Secondary Roads - 21 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Parts C and E hereof, goods and works 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 international competitive bidding as described in Part A of the Guidelines. 2. For goods and works to be procured on the basis of inter- national 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 publication of such notice in order to provide timely notification to prospective bidders of the opportunity to bid for the goods and works in question. The Borrower shall provide the necessary information to update such notice annually so long as any goods or works remain to be procured on the basis of international compe- titive 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 - 22 - Benin 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 Benin if the bidder shall have established to the satisfaction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in Benin 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 evalu- ated 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 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 - 23 - which as a result of the comparison under paragraph 3 is the lowest evaluated bid shall be selected. C. Other Procurement Procedures 1. Contracts for works under Part D (1) of the Project, and the construction or rehabilitation of buildings and instal- lation of weighbridges under Parts A, B, C and F of the Project may be awarded on the basis of competitive bidding advertised locally, in accordance with procedures acceptable to the Association. 2. Civil works for Part D (2) of the Project may continue to be executed under the existing contract awarded for paved road construction under the Third Highway Project. 3. Contracts for the purchase of goods, estimated to cost not ,- than the equivalent of $100,000 per contract and $500,000 in tL, aggregate may be procured through international or local shopping on the basis of a solicitation of price quotations from at least two suppliers. 4. Fuel may be procured by negotiated purchases from SONACOP, the national oil company. 5. Spare parts may be procured (i) pursuant to original equip- ment supply contracts, or (ii) from local suppliers in accordance with local procedures acceptable to the Association. 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 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, together 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 request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. -24 - (b) After bids have been received and evaluated, the Bor- rower 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 Association, in sufficient time for its review, a detailed report on the evaluat- ion and comparison of the bids received, and such other informa- tion as the Association shall reasonably request. The Association shall, if it determines that the intended award would be inconsis- tent 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 the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the 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. 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 15% of the original price, the Borrower shall inform the Association of the proposed modification, waiver, extension or change order and the reasons therefor. The Association, if it determines that the proposal would be inconsistent with the provisions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination. 25 - E. Procurement Wit,,out Contracting Road rehabilitation under Part D (1) of the Project and installation of weighbridges may be carried out by force account by MTPCH. - 26 - SCHEDULE 4 Design Standards Main Secondary Roads Roads Cleared width (m) 15 10 Formation width (m) 9 8 Gravelled width (m) 6 5 Minimum horizontal 450 250 curve radius (m) Maximum gradient (%) 6 8 Minimum vertical curve radius: Hog (m) 3000 1500 Sag (m) 2200 1500 Minimum pavement thickness for main ros.uj 15 cm 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