Niger - First Water Supply Project : Credit 1309 - Credit Agreement - Conformed

CUf. = 7, LoFFfICIAL CREDIT NUMBER 1309 NIR GOUENTs Development Credit Agreement (Water Supply Project) between REPUBLIC OF NIGER and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated /3 ,1983 CREDIT NUMBER 1309 NIR DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated V" / 3 , 1983 between REPUBLIC OF NIGER (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) by agreement dated November 3, 1982 (hereinafter the UNDP called Grant Agreement), UNDP has agreed to make a grant (hereinafter called the UNDP Grant) to the Borrower in an aggre- gate principal amount of $1.05 million to assist in fir:%ncing part of the Project on the terms and conditions therein set forth; 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 Agree- ments of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following addition- al terms have the following meanings: (a) "Ministry" means the Ministry of Hydraulics and Envi- ronment of the Borrower; - 2 - (b) "NIGELEC" means Socifte Nigerienne d'Electricitf; (c) "OFEDES" means Office des Eaux du Sous-Sol; and (d) "Project Preparation Advance" means the project preparation advance granted by the Association to the Borrower pursuant to an exchange of letters dated April 29, 1982 and June 18, 1982 between the Borrower and the Association. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Bor- rower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various curren- cies equivalent to six million one hundred thousand Special Drawing Rights (SDR 6,100,000). 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 Asso- ciation, 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) Promptly after the Effective Date, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and pay to itself the amount required to repay the prin- cipal amount of the Project Preparation Advance withdrawn and outstanding as of such date and to pay all unpaid charges there- on. The unwithdrawn balance of the authorized amount of the Pro- ject Preparation Advance shall thereon be cancelled. Section 2.03. Except as the Association shall otherwise agree, procurement of the goods and civil works required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to this Agree- ment. Section 2.04. The Closing Date shall be June 30, 1986, or such later date as the Association shall establish. The Associa- tion shall promptly notify the Borrower of such later date. - 3 - Section 2.05. (a) The Borrower shall pay to the Association a commitment charge at the rate of one-half of one per cent (1/2 of 1%) per annum on the principal amount of the Credit not with- drawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Development Credit Agree- ment to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without re- strictions of any kind imposed by, or in the territory of, the Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. Section 2.06. 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 2.07. Commitment charges and service charges shall be payable semiannually on April 1 and October 1 in each year. Section 2.08. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each April 1 and October 1 commencing April 1, 1993 and ending October 1, 2032, each installment to and including the installment payable on October 1, 2002, 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 2.09. The currency of the French Republic is hereby specified for the purposes of Section 4.02 of the General Condi- tions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out the Project, or cause NIGELEC and OFEDES to carry out the Project, with due -4- diligence and efficiency and in conformity with appropriate administrative, financial and public utility practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) The Borrower shall provide part of the proceeds of the Credit as well as its counterpart funds to NIGELEC and OFEDES as a capital contribution under a subsidiary agreement to be entered into between the Borrower and NIGELEC and OFEDES respectively, under terms and conditions which shall have been approved by the Association. Section 3.02. In order to assist the Borrower in the carry- ing out of the Project (including design and supervision of the construction of the facilities included in Part D of the Proj- ect), the Borrower shall employ or cause NIGELEC and OFEDES to employ, consultants and experts whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association, such consultants and experts to be selected in accordance with principles and procedures satisfactory to the Association on the basis of the "Guidelines for the Use of Con- sultants by World Bank Borrowers and by the World Bank as Execut- ing Agency" published by the Bank in August 1981. 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 inci- dent 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 or replace or repair such goods. (b) The Borrower shall cause all goods and services financ- ed out of the proceeds of the Credit to be used exclusively for the purposes of the Project. Sectio, 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: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project -5- (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 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) 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 Lt, the expen.- diture of the proceeds of the Credit and the goods and services financed out of such proceeds. (c) Upon the award by the Borrower of any contract for goods, .orks 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 ini- tial 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 Devel- opment 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 the construction (and operation) of the facilities included in the Project and shall furnish to the Association, promptly after such acquisition, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. 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 opera- tions, resources and expenditures, in respect of the Project, of -6- the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. The Borrower shall cause the Ministry to: (a) establish and maintain separate accounts on its records to be used exclusively for the Project and to register in such accounts all its receipts and payments for and in connection with the carrying out of the Project, in accordance with appropriate accounting principles and procedures consistently applied; and (b) (i) have the accounts referred to in paragraph (a) above for each fiscal year audited, in accordance with appro- priate auditing principles consistenly applied, by independent auditors acceptable to the Association; (ii) furnish to the Borrower and the Association, as soon as available, but in any case not later than six months after the end of the Ministry's fiscal year, (A) certified copies of such 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 such accounts of the Ministry and the audit thereof as the Association shall from time to time rea- sonably request. Section 4.03. (a) The Borrower shall cause NIGELEC and OFEDES to establish and maintain separate accounts on their records to be used exclusively for the Project and to register in such accounts all their receipts and payments for and in connection with the carrying out of the Project, in accordance with appropriate accounting principles and procedures consistently applied. (b) In addition, the Borrower shall cause NIGELEC and, starting March 31, 1985, OFEDES, to: (i) have their accounts and financial statements (balance sheets, statements of income and expenses and related statements) for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association as soon as available, but in any case not later than six months after the end of each such year, (A) certified copies of their financial statements 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 -7- other information concerning their accounts and financial state- ments and the audit thereof as the Association shall from time to time reasonably request. Section 4.04. The Borrower shall cause NIGELEC and OFEDES: (a) to take out and maintain with responsible insurers, or to make other provision satisfactory to the Association for, insurance against such risks and in such amounts as shall be consistent with appropriate practice; (b) to carry on their operations and conduct their affairs in accordance with sound administrative, financial and public utility practices under the supervision of qualified and ex- perienced management assisted by competent staff in adequate numbers; and (c) at all times to operate and to maintain their plants, wells, boreholes, machinery, equipment and other property, and from time to time, promptly as needed, to make all necessary repairs and renewals thereof, all in accordance with sound engineering, financial and public utility practices. Section 4.05. The Borrower shall cause NIGELEC to establish within its organization, not later than June 30, 1983, a separate Water Supply Department and assign to such Department the respon- sibility of NIGELEC's water supply operations. Section 4.06. The Borrower shall: (a) not later than December 31, 1983, carry out the study included in Part B.2 of the Project and furnish to the Associa- tion the recommendations of such study; (b) afford the Association a reasonable opportunity to com- ment thereon; (c) by June 30, 1984, prepare a plan of action (including, if recommended, the establishment of a national water supply entity) satisfactory to the Association, on the basis of the recommendations of such study and the comments of the Association thereon; and (d) carry out, promptly thereafter, such plan of action. - 8 - Section 4.07. The Borrower shall, after the establishment of a national water supply entity, cause such entity to carry on its operations, conduct its affairs and operate and maintain its property as provided in paragraphs (b) and (c) of Section 4.03 of this Agreement. Section 4.08. (a) The Borrower shall take or cause to be taken all necessary action regarding the level of NIGELEC's and OFEDES' water charges as required to increase by March 1, 1983, their revenues related to water supply services by not less than 20%. (b) The Borrower shall provide funds to NIGELEC and OFEDES to cover their aggregate operating deficits related to water supply services. Section 4.09. (a) The Borrower shall take, or cause to be taken, all necessary action regarding the level of NIGELEC's, OFEDES' and, after its establishment, the national water supply entity's charges for their water supply services as required to provide NIGELEC, OFEDES and the national water supply entity in each year, starting in 1985, with revenues sufficient to cover the operating expenses of NIGELEC, OFEDES and the national water supply entity related to such services. For purposes of this Section, "operating expenses" means all of NIGELEC's, OFEDES' and the national water supply entity's operation and maintenance costs for piped water supply systems, depreciation costs, taxes, interest and allocations of the cost of central administrative and technical services. (b) The Borrower shall provide funds to OFEDES to cover the maintenance costs of rural wells and boreholes not reimbursed by district councils or by the users. Section 4.10. (a) The Borrower shall ensure that, on the first day of every calendar month, the amount due to NIGELEC or the national water supply entity, as the case may be, on account of their water supply services to its customers, particularly any agencies or departments of the Borrower, is less than the aggre- gate amount charged or to be charged by NIGELEC or the national water supply entity, as the case may be, to such customers on account of water supply services provided during the four calen- dar months immediately preceding that day. -9- (b) For purposes of paragraph (a) of this Section the Bor- rower shall, not later than December 1, 1983, furnish to the Association a plan of action, satisfactory to the Association, to eliminate any amounts due NIGELEC for more than four months by agencies or departments of the Borrower, and carry out such plan promptly thereafter. ARTICLE V r Remedies of the Association Section 5.01. (a) For the purposes of Section 6.02 of the General Conditions, the following additional event is specified pursuant to paragraph (h) thereof, namely, that subject to para- graph (b) of this Section, the right of the Borrower to withdraw the proceeds of any grant made to the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the agreement pro- viding therefor. (b) Paragraph (a) of this Section shall not apply if the Borrower establishes to the satisfaction of the Association that: (i) such suspension, cancellation, or termination is not caused by the failure of the Borrower to perform any of its obligations under such agreement, and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and condi- tions consistent with the obligations of the Borrower under this Agreement. ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as addi- tional conditions to the effectiveness of this Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) that UNDP has notified the Association that all condi- tions of effectiveness of the UNDP Grant Agreement have been ful- filled, subject only to the effectiveness of this Agreement if such be the case; and (b) that the subsidiary agreements referred to in Section 3.01 (b) of this Agreement have been entered into. - 10 - Section 6.02. The following is specified as an adlitional matter, within the meaning of Sect".on 12.02 (b) of the General Conditions, to be included in the opinion or opinions to be fur- nished to the Association, namely, that the subsidiary agreements referred to in Section 3.01 (b) of this Agreement have been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and NIGELEC and OFEDES, respectively, and con- stitute a valid and binding obligation of the Borrower and NIGELEC and OFEDES, respectively, in accordance with its terms. Section 6.03. The date / /3,19/3 , is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Ministre du Plan of the Borrower 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: Ministere du Plan Boite Postale 862 Niamey Niger Cable address: Telex: MP 5230 NI Niamey For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America - 11 - 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. REPUBLIC OF NIGER By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Western Africa - 12 - 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) Consultants' 1,650,000 100% of foreign and experts' expenditures services and 90% of local expen- ditures (2) Training and 470,000 100% education assign- ments abroad; training equip- ment (3) Goods 1,500,000 100% of foreign expenditures and 90% of local expen- diture. (4) Civil works 1,310,000 90% (5) Refunding of 310,000 Amount due Project Prepara- tion Advance (6) Unallocated 860,000 TOTAL 6,100,000 - 13 - 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; 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; 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". 3. The disbursement percentages have been calculated in compli- ance 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 res- pect 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. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expen- ditures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Credit or the disbursement percentages set forth in the table in paragraph 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 expen- ditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. - 14 - 6. 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 expend- itures 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 Bor- rower, cancel such amount of the Credit as, in the Association's reasonable opirion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. - 15 - SCHEDULE 2 Description of the Project The Project consists of: Part A: Technical Assistance 1. Establishment of regional services of the Ministry to plan and supervise rural water supply projects requiring about 8 man- years of a planner and 2 hydrogeologists. 2. Strengthening of OFEDES' logistics sections, requiring about 4.5 man-years of 3 technicians. 3. Strengthening of NIGELEC's commercial and water supply department, requiring about 4.5 man-years of a commercial officer, a water distribution technician and a meter technician. 4. Audit of NIGELEC's 1981 and 1982 accounts. Part B: Studies 1. Inventory of water supply and electric power connections of NIGELEC in Niamey. 2. Feasibility studies to restructure NIGELEC and OFEDES, to establish a national water supply entity, and to determine man- power requirements for the foregoing. 3. Feasibility studies and engineering design of rural and urban water supply projects. 4. Development and establishment of financial and cost account- ing systems for OFEDES. Part C: Training 1. Strengthening the water supply curriculum and-training acti- vities of NIGELEC's water and electricity training center at Niamey and the health schools of the Borrower, requiring about 3 man-years of water specialist training officers, and training abroad of junior staff. 2. Training abroad of students nationals of the Borrower, and technical staff of the Ministry in matters related to water supply, requiring about 25 man-years of scholarships. Part D: Investment 1. Construction and equipping of regional offices and workshops of the Ministry in Maradi and Zinder. 2. (a) In Niamey, upgrading the water treatment plants by modification of the hydraulic and electromechanic system. (b) In Dosso, drilling of three production boreholes and acquisition of equipment therefor, construction of a 500 m3 groundlevel reservoir, and acquisition and utilization of about 5 km of 300 mm and lower diameter pipes for the extension of the distribution network. 3. Installation of about 3,000 domestic water meters and related equipment and construction of meter maintenance workshops for NIGELEC?s water supply operations. 4. Acquisition and utilization of about 15 derricks, about 5 tow trucks and about 8 grab-buckets for OFEDES' maintenance oper- ations. The Project is expected to be completed by December 31, 1985. - 17 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Except as provided in Part C hereof, goods shall be procured under contracts awarded in accordance with procedures consistent with those set forth in the current edition of 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 to be procured on the basis of international 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 notifi- cation 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 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; (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; and (iii) the cost of inland freight and other expenditures incidental to the delivery of the goods to the place of their use or installation shall be included. - 18 - B. Preference for Domestic Manufacturers In the procurement of goods in accordance with the proce- dures described in Part A of this Schedule, goods manufactured in Niger 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 Niger if the bidder shall have established to the satis- faction of the Borrower and the Association that the manufacturing cost of such goods includes a value added in Niger 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 fur- ther comparison only, an amount equal to: (i) the amount of cus- toms duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in - 19 - 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 wnich as a result of the comparison under paragraph 3 is the lowest evaluated bid shall be selected. C. Other Procurement Procedures Civil works contracts and contracts for goods estimated to cost less than $50,000 equivalent may be procured on the basis of local competitive bidding procedures satisfactory to the Associa- tion provided that the aggregate cost of the contracts so pro- cured does not exceed $500,000 equivalent. 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 for goods estimated to cost more than $150,000 equivalent and civil works estimated to cost more than $250,000 equivalent: (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. (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 suf- ficient time for its review, a detailed report on the evaluation and comparison of the bids received, and such other information as the Association, shall reasonably request. The Association shall, if it determines that the intended award would be incon- sistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. - 20 - (c) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ .Com those on which bids were asked or prequalification was 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 with- drawal of funds from the Credit Account in respect of such con- tract. 2. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Association, prompt- ly after its execution and prior to the submission to the Asso- ciation 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 Bor- rower 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 issu- ing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by more than 10% 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 pro- visions of this Agreement, shall promptly inform the Borrower and state the reasons for its determination. 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 1983 FOR SECRETARY