Senegal - Structural Adjustment Loan And Credit : Loan 1931 - Loan Agreement - 1 - Conformed

IOFFIIAL LOAN NUMBER 1931 SE Loan Agreement (Structural Adjustment Loan) between REPUBLIC OF SENEGAL and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated , 1981 LOAN NUMBER 1931 SE LOAN AGREEMENT AGREEMENT, dated 4 , 1981, between REPUBLIC OF SENEGAL (hereinafter called the B rrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS (A) the Borrower has requested the Bank to assist in the financing of Part B of the Project described in Schedule 2 to this Agreement by making the Loan as hereinafter provided; (B) the Borrower has also requested the International Development Association (hereinafter called the Association) to provide additional financial assistance towards the financing of Part B of the Project in an aggregate principal amount equivalent to twenty-two million nine hundred thousand Special Drawing Rights (SDR22,900,000); and WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to make the Loan to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE 1 General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated October 27, 1980, with the same force and effect as if they were fully sat forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank 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) "Development Credit Agreement" means the agreement intended to be entered into between the Borrower and the Associa- tion for the purpose of the Project; and such term includes the General Conditions Applicable to Development Credit Agreements of the Association, dated June 30, 1980, as made applicable to -2- such agreement, all agreements supplemental to the Development Credit Agreement and all schedules to the Development Credit Agreement; (b) "Credit" means the credit provided for in the Develop- ment Credit Agreement; (c) "Credit Account" means the account defined in paragraph 8 of Section 2.01 of the General Conditions referred to in Section 1.01 of the Development Credit Agreement; (d) "CFAF" means the currency of the Borrower; (e) "Structural. 4djustment Program" means the program covering tAe period from July 1, 1980 to June 30, 1985, for the structural adjustment of the Borrower's economy described in th D6claration de politique dconomique of the Senegalese Govern- ment annexed to the letter No. 0439/PM/SP addressed to the Bank and the Association by the Borrower's Prime Minister, dated October 31, 1980; (f) "Nomenclature of Brussels" means the Nomenclature for the Classification of Goods in Customs Tariffs published by the Customs Co-operation Council, Brussels, Belgium, Fifth Edition (1976); (g) "Banque Centrale" means the national branch of Senegal of Banque Centrale des Etats de l'Afrique de l'Ouest; (h) "Special Account" means the account to be opened pursuant to Section 2.02 (b) of this Agreement and Section 2.02 (b) of the Development Credit Agreement; and (i) "Project Account" means the account established pursuant to Section 3.02 of this Agreement. ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to thirty million dollars ($30,000,000). Section 2.02 (a) The amount of the Loan may be withdrawn from the Loan 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 Bank for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of the imported goods and services included in such Schedule and to be financed out of the proceeds of the Loan. (b) The Borrower shall, for the purposes of Part B (a) of the Project, open a Special Account with Banque Centrale on terms and conditions satisfactory to the Bank. Payments out of the Special Account shall be made exclusively to pay the reasonable cost of the imported goods eligible for financing out of the pro- ceeds of the Loan in accordance with the provisions of Schedule 1 to this Agreement. (c) The Bank shall, promptly after the Effective Date, withdraw on behalf of the Borrower from the Loan Account and deposit in the Special Account an initial amount in the currency of the Borrower not exceeding $10,000,000 equivalent, unless said initial amount is deposited by the Association out of the proceeds of the Credit. Thereafter, at the request of the Bor- rower, the Bank shall further withdraw from the Loan Account and deposit in the Special Account such amounts as shall be required to reimburse the Borrower for payments made out of the Special Account in respect of the reasonable cost of the imported goods 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 $10,000,000. (d) The Borrower shall furnish to the Bank in respect of each payment made by the Borrower out of the Special Account such documents and other evidence as the Bank shall reasonably request, showing that the payment was made on account of the reasonable cost of the imported goods eligible for financing under this Agreeme it. (e) If the Bank shall have determined that any payment out of the Special Account: (i) was made for any expenditure not eligible for financing by withdrawal from the Loan Account; or (ii) was not justified by the evidence required pursuant to -4- paragraph (d) of this Section, the Borrower shall, promptly upon notice from the Bank and prior to any further deposit in the Special Account by the Bank, deposit in the Special Account an amount equal to the amount of such payment. (f) Notwithstanding the provisions of paragraph (c) of this Section, no .further deposit in the Special Account shall be made by the Bank when the Bank shall have determined that such deposit will not be needed to finance the reasonable cost of the imported goods eligible for financing under this Agreement. Section 2.03. Except as the Bank shall otherwise agree, pro- curement of the goods to be financed out of the proceeds of the Loan, shall be governed by the provisions of Schedule 4 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1981 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of nine and one-fourth per cent (9-1/4%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semiannually on February 15 and August 15 in each year. Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. Section 2.09. (a) With respect to Part B (a) of the Project, Banque Centrale is designated as representative of the Borrower for the purposes of taking any action required or permitted to be taken under the provisions of Section 2.02 of this Agreement and Article V of the General Conditions. (b) The Borrower shall entrust Banque Centrale with respon- sibility for the coordination and collection of relevant documen- tation and the preparation of withdrawal applications for the -5- Loan under Part B (a) of the Project. Unless the Bank shall otherwise agree, each of such applications shall include evidence satisfactory to the Bank of the importation into Senegal of the goods for which financing is requested under such application and of the date of such importation. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project, or cause the Project to be carried out, with due diligence and efficiency and in conformity with appropriate financial and administrative practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the n.rpose. (b) Without limitation or restriction to the foregoing, the Borrower shall take all such action, including the expeditious granting of import licenses, as shall be necessary or convenient to facilitate the timely importation of the goods to be financed out of the Loan. Section 3.02. The Borrower shall open an account (the Project Account) with Banque Centrale and shall, upon each withdrawal from the Loan Account under Category (1) of the table set forth in paragraph 1 of Schedule 1 to this Agreement, deposit or cause to be deposited in such Project Account in accordance with appro- priate financial procedures the equivalent in CFAF of the currency or currencies withdrawn from the Loan Account (such equivalent to be determined as of the respective dates of such withdrawals). The amounts so deposited in the Project Account shall be used to finance expenditures for economic development of the parapublic enterprises, primarily in the agricultural sector, that shall have entered into contrats-plans with the Borrower on terms and condi- tions satisfactory to the Bank or that shall have taken steps (such as ordres de mission) satisfactory to the Bank for the establishment of suCh contrats-plans with the Borrower. Section 3.03. (a) In order to assist the Borrower in carrying out the studies included in Part B (b) of the Project, the Bor- rower shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Borrower and the Bank. -6- (b) With respect to the studies included in Part B (b) of the Project, the Borrower shall: (i) cooperate fully with such consultants in the performance of their services for the Project and make available to them all information relevant to said studies; (ii) cause such consultants promptly to furnish to the Bank copies of the documents prepared by them for the Project, including reports and drafts thereof, in such number as the Bank shall reason- ably request; and (iii) from time to time, exchange views with the Bank with respect to the evaluation and implementa- tion of the recommendations and other conclusions contained in the documents referred to in sub- paragraph (b) (ii) of this Section. Section 3.04. The Borrower undertakes to insure, or cause to be insured, the imported goods to be financed out of the proceeds of the Loan and procured in accordance with Part A of Schedule 4 to this Agreement against hazards incident to the acquisition, transportation and delivery thereof to the point of entry into Senesal, and for such insurance any indemnity shall be payable in a currency freely usable by the purchaser or importer to replace or repair such goods. Section 3.05. (a) The Borrower shall: (i) maintain or cause to be maintained records adequate to identify the goods and services financed out of the proceeds of the Loan, and to disclose their use in the Project; (ii) enable the Bank's accredited representatives to examine any relevant records and documents in connection with the goods financed out of the proceeds of the Loan; and (iii) furnish to the Bank at regular intervals all such information as the Bank shall reasonably request concerning the Project, the expenditure of the proceeds of the Loan and the goods gind services financed out of such proceeds. (b) The Borrower shall furnish to the Bank, at least on a quarterly basis, all such information as the Bank shall request Concerning the utilization of the amounts deposited in the Project &Qunt pursuant to Section 3.02 of this Agreement. -7- Section 3.06. (a) Until the end of 1985, the Borrower and the Bank shall, from time to time, at the request of either party, and at least on an annual basis, exchange views on progress made and obstacles met in carrying out the Structural Adjustment Program. (b) The first such exchange of views shall take place not later than March 31, 1981. (c) The Borrower shall, prior to and for the purposes of each such exchange of views, furnish to the Bank a report con- taining such information related to the carrying out of the Structural Adjustment Program as the Bank shall reasonably request. (d) By December 31, 1985, or such later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower shall prepare and furnish to the Bank a report, of such scope and in such detail as the Bank shall reasonably request, on the execution of the Project, the performance by the Borrower and the Bank of their respective obligations under the Loan Agreement and the accomplishment of the purposes of the Loan. ARTICLE IV Other Covenants Section 4.01. (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member con- cerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distri- bution of foreign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the alloca- tion, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or permitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or administrative subdivisions, the Borrower shall -8- promptly and at no cost to the Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfactory to the Bank. (b) The foregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower, of any political or administrative sub- division thereof and of any entity owned or controlled by, or operating for the account or benefit of, the Borrower or any such subdivision, including gold and foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. Section 4.02. (a) The Borrower shall maintain or cause Banque Centrale to maintain records adequate to reflect in accordance with consistently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project Account. (b) The Borrower shall cause Banque Centrale: (i) to have the Project Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) to furnish to the Bank as soon as available, but in any case not later than four months after the end of each such year, (A) a certified statement of the Project Account 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 Bank shall have reasonably requested; and (iii) to furnish to the Bank such other information concerning the Project Account and the audit thereof as the Bank shall from time to time reasonably request. ARTICLE V Effective Date; Termination Section 5.01. The following event is specifled as an addi- tional condition to the effectiveness of the Loan Agreement within -9- the meaning of Section 12.01 (c) of the General Conditions, namely that the Special Account shall have been opened as provided in Section 2.02 (b) of this Agreement. Section 5.02. The date -4 ? Z /is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.03. The obligations of the Borrower under Sections 3.02 and 4.02 of this Agreement shall cease and determine on the date on which the Loan Agreement shall terminate or a date five 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. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Minist&re de l'Economie et des Finances Rue Charles LaIng B. P. 4017 Dakar, Sfnggal Cable address: Telex: MINIFINANCES 512 Dakar, Sgnegal TRESOR SG For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America - 10 - Cable address: Telex: INTBAFRAD 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. REPUBLIC OF SENEGAL By Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Regional Vice President Western Africa - 11 - SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of amounts of such proceeds to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) All goods 29,000,000 100% of for- imported into eign expendi- Senegal except tures for the goods set forth in the Annex to this Schedule (2) Consul- 1,000,000 100% tants' services under Section 3.03 of this Agreement TOTAL 30,000,000 2. For the purposes of this Schedule, the term "foreign expen- ditures" 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 currency for such goods or services shall be deemed to be "foreign expenditures". - 12 - 3. The disbursement percentages have been calculated in com- pliance with the policy of the Bank that no proceeds of the Loan 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 Loan decreases or increases, the Bank 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 Bank. 4. Notwithstanding the provisions of paragraph 1 above, no with- drawals shall be made in respect of: (a) payments made for expenditures prior to the date of this Agreement, except that withdrawals may be made in respect of Category (2) in an aggregate amount not exceeding the equiva- lent of $800,000 on account of payments made for such expenditures before that date but after January 1, 1980; (b) expenditures for goods to be supplied under a contract which any national or international financing institution or any other agency shall have financed or agreed to finance; (c) expenditures for goods procured under invoices for less than $1,000 equivalent; and (d) any expenditures under Category (1) after the aggregate of the proceeds of the Loan withdrawn from the Loan Account and of the proceeds of the Credit withdrawn from the Credit Account shall have reached the amount of $40,000,000 equivalent, unless the Bank shall be satisfied, after the exchange of views which shall take place pursuant to Section 3.06 (b) of this Agreement, with respect to the progress achieved by the Borrower in the carrying out of the Structural Adjustment Program, and in particular: (i) the application of the measures relating to import duties and export subsidies; and (ii) the overall size and financing of the medium-term investment program and the composition of the program for public investment. 5. Notwithstanding the allocation of an amount of the Loan set forth in the table in paragraph 1 above, if the Bank has reason- ably estimated that the amount of the Loan then allocated to any Category will be insufficient to finance the agreed percentage - 13 - of all expenditures in that Category, the Bank may, by notice to the Borrower, reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Loan, as the case may be, which are then allocated to another Category and which in the opinion of the Bank are not needed to meet other expenditures. 6. If the Bank shall have reasonably determined that the procedure of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expendi- tures for such item shall be financed out of the proceeds of the Loan. - 14 - ANNEX TO SCHEDULE 1 The following goods imported into Senegal may not be financed out of the proceeds of the Loan: Nomenclature of Brussels ChapteriNo. Sub-chapter No. Description 1 01.02B Live animals 01.03 01.04A 01.05 01.06A 2 All Meat and edible meat offals 3 All Fish, crustaceans and molluscs 4 All Dairy products; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included 7 All Edible vegetables and certain roots and tubers 8 All Edible fruits and nuts; peal of melons or citrus fruits 9 All Coffee, tea, matS and spices 10 All Cereals 11 All Products of the mill- ing industry; malt and starches; gluten; inulin - 15 - Nomenclature of Brussels Chapter No. Sub-chapter No. Description 12 12.01A-B-C-D-H-I-J Oil seeds and oleagi- 12.02 nous fruit; miscella- 12.04 neous grains, seeds 12.06 and fruit; industrial 12.08 and medical plants; straw and fodder 13 13.03 Raw vegetable mate- rials of a kind suitable for use in dyeing or in tanning; lacs; gums, resins and other vegetable saps and extracts 15 15.01 Animal and vegetable 15.07 fats and oils and*. 15.13 their cleavage pro- duts; prepared edible fats; animal and vegetable waxes 16 All Preparations of meat, fish, crustaceans or molluscs 17 All Sugars and sugar confectionery 18 All Cocoa and cocoa preparations 19 All Preparations of cereals, flour or starch; pastrycooks' products 20 All Preparations of vegetables, fruit or other parts of plants 16 - Nomenclature of Brussels Chapter No. Sub-chapter No. Description 21 All Miscellaneous edible preparations 22 All Beverages, spirits and vinegar 24 All Tobacco 27 27.09 Mineral fuels, mineral 27.10 oils and products of their distillation; bituminous substances; mineral waxes 31 31.01 Fertilizers 31.03 31.05 33 33.06 Essential oils and resinoids; perfumery, cosmetic or toilet preparations 36 All Explosives, pyrotech- nic products; matches; pyrophoric alloys; certain combustible preparations 37 All Photographic and cinematographic goods 39 39.07 Artificial resins and plastic materials, cellulose esters and ethers; articles thereof 40 40.13 Rubber, synthetic rubber, factice, and articles thereof - 17 - Nomenclature of Brussels Chapter No. Sub-chapter No. Description 42 All Articles of leather; saddlery and harness; travel goods, hand- bags and similar con- tainers; articles of animal gut (other than silk-worm gut) 43 All Furskins and artifi- cial fur; manufactures thereof 46 All Manufactures of straw, esparto and other plaiting materials; basketware and wicker- work 48 48.10 Paper and paperboard, 48.14 articles of paper 48.19 pulp, of paper or 48.21 B-C of paperboard 49 All Printed books, news- papers, pictures and other products of the printing industry; manuscripts, type- scripts and plans 58 58.01 Carpets, mats, matting 58.02 and tapestries; pile 58.03 and chenille fabrics; narrow fabrics; trim- mings; tulle and other net fabrics; lace; embroidery 59 59.02 A Wadding and felt; twine, cordage, ropes and cables; special fabrics; impregnated - 18 - Nomenclature of Brussels Chapter No. Sub-chapter No. Description and coated fabrics; textile articles of a kind suitable for industrial use 60 60.02 Knitted and crocheted 60.03 goods 60.04 60.05 61 All Articles of apparel and clothing accesso- ries of textile fabric, other than knitted or crocheted goods 62 All Other made up tex- tile articles 64 All Footwear, gaiters and the like; parts of such articles 65 All Headgear and parts thereof 66 All Umbrellas, sunshades, walking-sticks, whips, riding-crops and parts thereof 67 All Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair 70 70.13 Glass and glassware 70.19 - 19 - Nomenclature of Brussels Chapter No. Sub-chapter No. Description 71 All Pearls, precious and semi-precious stones, precious metals, rolled precious metals, and articles thereof; imitation jewelry 72 All Coin 73 73.36 Iron and steel and 73.38 articles thereof 74 74.17 Copper and articles 74.18 thereof 76 76.15 Aluminum and articles thereof 82 82.08 Tools, implements, cutlery, spoons and forks, of base metals; parts thereof 83 83.06 Miscellaneous articles 83.11 of base metals 83.14 84 84.12 Boilers, machinery 84.15 A-B and mechanical 84.17 A appliances; parts 84.25 A thereof 84.40 A-E 85 85.06 Electrical machinery 85.07 and equipment; parts 85.10 thereof 85.12 85.14 85.15 85.21 A - 20 - Nomenclature of Brussels Chapter No. Sub-chapter No. Description 87 87.02 A Vehicles, other than 87.08 railway or tramway 87.09 rolling-stock, and 87.13 parts thereof 87.14 A 88 All Aircraft -and parts thereof; parachutes; catapults and similar aircraft launching gear; ground flying trainers 89 89.01 A-B Ships, boats and floating structures 90 90.07 Optical, photo- 90.08 graphic, cinemato- 90.09 graphic, measuring, checking, precision, medical and surgical instruments and apparatus; parts thereof 91 All Clocks and watches and parts thereof 92 All Musical instruments; sound recorders or reproducers; tele- vision image and sound recorders or reproducers; parts and accessories of such articles 93 All Arms and ammunition; parts thereof 94 94.01 Furniture and parts 94.03 thereof; bedding, 94.04 mattresses, mattress - 21 - Nomenclature of Brussels Chapter No. Sub-chapter No. Description supports, cushions and similar stuffed furnishings 95 All Articles and manu- factures of carving or moulding material 97 All Toys, games and sports requisites; parts thereof 98 All Miscellaneous manu- factured articles 99 All Works of art, col- lectors' pieces, and antiques - 22 - SCHEDULE 2 Description of the Project The Project consists of: Part A: The execution of the Structural Adjustment Program the main objectives of which are to achieve economic and financial stabili- zation within the first two years and sustainable economic growth during the last three years. The main features of the Structural Adjustment Program are: (a) the increase of public savings through sustained austere fiscal policies; (b) the limited and selective growth of investments; (c) the improvement of monetary policies including credit restrictions; (d) the improvement of the Bor- rower's balance of payments as a consequence of the above and through tariff adjustments aimed at limiting imports and export subsidies aimed at encouraging exports; (e) the improvement of foreign debt management so as to reduce the ratio of foreign debt to export earnings; (f) better resource allocation through im- proved pricing policies, limited wage growth, reduction of sub- sidies (other than for exports) and decontrol of most domestic prices; (g) the improvement of parapublic sector management through better financial control of parapublic enterprises and the establishment of contrats-plans and ordres de mission between Government and each enterprise setting out objectives and responsibilities of both parties; and (h) the expansion of rural production and agricultural exports through reforms in the agri- cultural policies and institutions. Part B: (a) A program for the importation into Senegal of goods eligible under the terms of Schedule 1 to the Loan Agreement. (b) The execution of studies relating to: (i) the redistribution of activities of the Borrower's Office national de Coopgration et d'Assistance pour le Developpement and the financial and operational structure of the Borrower's Soci6t6 nationale d'Approvisionnement du Monde rural; and (ii) an assessment of the measures enacted in August 1980 with respect to import duties and export incentives, followed by a study of the future system for protecting domestic production and encouraging exports, including the Investment Code. - 23 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* On each February 15 and August 15 beginning August 15, 1986 through February 15, 2001 1,000,000 * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.04), the figures in this column represent dollar equiva- lents determined as for purposes of withdrawal. - 24 - Premiums on Prepayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.04 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1.40% More than three years but not more than six years before maturity 2.75% More than six years but not more than eleven years before maturity 5.00% More than eleven years but not more than sixteen years before maturity 7.40% More than sixteen years but not more than eighteen years before maturity 8.30% More than eighteen years before maturity 9.25% - 25 - SCHEDULE 4 Procurement A. International Competitive Bidding 1. Except as provided in Part B hereof, goods shall be procured under contracts awarded in accordance with procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in March 1977 (hereinafter called the Guidelines), on the basis of inter- national competitive bidding as described in Part A of the Guidelines. 2. For goods to be procured on the basis of international com- petitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Bank 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 documents relating thereto, a general procurement notice, in such form and detail and containing such information as the Bank shall reasonably request; the Bank 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 in question. The Borrower shall provide the necessary information to update such notice annually so long as any goods remain to be procured on the basis of international competitive bidding. 3. For the purpose of evaluation and comparison of bids for the supply of goods to be procured on the basis of international com- petitive bidding: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for the imported goods; 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. Other Procurement Procedures Contracts for goods imported for the public sector under a single contract estimated to cost less than the equivalent of $5,000,000 and for all goods imported for the private sector may be awarded through normal trade channels on the basis of normal procurement procedures of the purchaser or importer of such goods in effect at the time of such purchase or import. - 26 - C. Review of Procurement Decisions by the Bank 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts procured in accordance with Part A hereof: (a) Before bids are invited, the Borrower shall furnish to the Bank, 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 Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Bank of the name of the bidder to which it intends to award the contract and shall furnish to the Bank, in sufficient time for its review, a detailed report on the evaluation and comparison of the bids received, together with the recommendations for award and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (c) The terms and conditions of the contract shall not, without the Bank's concurrence, materially differ from those on which bids were asked. (d) Two conformed copies of the contract shall be furnished to the Bank promptly after its execution and prior to the sub- mission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 2. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Bank, promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan 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 Bank shall reasonably request. The Bank shall, if it determines that the award of the - 27 - 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 Bank of the proposed modification, waiver, extension or change order and the reasons therefor. The Bank, if it determines that the proposal would be inconsistent with the provisions of this Agree- ment, shall promptly inform the Borrower and state the reasons for its determination. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Bank for Reconstruction and Develop- ment. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Bank thereunto this p day of lA, 198 . FOR SECRETARY