Mali - Rural Water Supply Project : Credit 1431 - Credit Agreement - 2 - Conformed

i ' _ 1PECIAL FUND CREDIT NUMBER SF-7 MLI DOCUMENTS Special Fund Credit Agreement (Rural Water Supply Project) between REPUBLIC OF MALI and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FUND established with funds contributed by certain members of the International Development Association Dated 3 , 1984 SPECIAL FUND CREDIT NU9BER SF-7 MLI SPECIAL FUND CREDIT AGREEMENT AGREEMENT, dated , 23 , 1984, between REPUBLIC OF MALI (the Borrower Mali) and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the Special Fund established with funds contributed by certain members of the International Development Association. WHEREAS (A) by Resolution No. IDA 82-6, adopted on Octo- ber 26, 1982, of the Executive Directors of the International Development Association (hereinafter called IDA) there has been established by IDA a Special Fund constituted by the funds which shall be contributed by certain members of IDA and administered by IDA, acting as Administrator of such Special Fund, for the purpose of, and in accordance with, the provisions of said Resolution; (B) the Borrower has requested the Administrator for assis- tance from the resources of the Special Fund in the financing of the Project described in Schedule 2 to this Agreement and the Administrator has determined that such assistance would be in accordance with the provisions of the Resolution referred to above; (C) the Borrower has also requested IDA to provide addi- tional assistance towards the financing of the Project and by an agreement of even date herewith between the Borrower and IDA (hereinafter called the Development Credit Agreement) IDA is agreeing to provide such assistance in an aggregate principal amount equivalent to four million four hundred thousand Special Drawing Rights (SDR 4,400,000) (hereinafter called the IDA Credit); and WHEREAS the Administrator has agreed, on the basis inter alia of the foregoing, to extend the Special Fund 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 -2- Credit Agreements of the International Development Association, dated June 30, 1980, with the same force and effect as if they were fully set forth herein, subject, however, to the following modifications thereof (said General Conditions Applicable to Development Credit Agreements of the International Development Association, as so modified, being hereinafter called the General Conditions): (a) The term "Association", wherever used in the General Conditions, means the International Development Association acting as the Administrator of the Special Fund referred to in the Preamble to this Special Fund Credit Agreement. (b) The terms "Development Credit Agreement", "Credit" and "Credit Account", wherever used in the General Conditions, are amended to read "Special Fund Credit Agreement", "Special Fund Credit" and "Special Fund Credit Account", respectively. (c) The second sentence of Section 5.01 is deleted. (d) In Sections 6.02 and 7.01, the term "Association" shall also include the International Development Association acting in its own capacity. 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 addi- tional terms have the following meanings: (a) "Special Fund Resolution" means Resolution No. IDA 82-6 of the Executive Directors of IDA which, inter alia, establishes the Special Fund. (b) "Administrator" means the International Development Association acting as Administrator of the Special Fund referred to in the Preamble to this Special Fund Credit Agreement. (c) "Part I member of IDA" means a member of IDA with respect to which the terms and conditions of membership are those prescribed in the Articles of Agreement of IDA for countries whose names are listed in Part I of Schedule A to those Articles. (d) "Part II member of IDA" means a member of IDA which is not a Part I member of IDA. -3- (e) "Development Credit Agreement" means the agreement between the Borrower and IDA for the purpose of the Project, as such agreement may be amended from time to time; and such term includes the General Conditions Applicable to Development Credit Agreements of IDA, dated June 30, 1980, as made applicable to such agreement, all agreements supplemental to the Development Credit Agreement and all schedules to the Development Credit Agreement. (f) "DNHE" means Direction Nationale de l'Hydraulique et de 1'Energie, of the Borrower's Ministare de 1'Etat Charg6 de 1'Equipement. (g) "ODIPAC" means the Borrower's Office de D6veloppement Int4grd des Production Arachidieres et CAr6aliares, organized and operating pursuant to Law No. 81-09 AN-RM of the Borrower dated February 9, 1983 and the Borrower's Decree No. 88 PG-RM dated February 9, 1983, both published in the Official Gazette of Mali No. 703, dated October 12, 1983. (h) "DNAFLA" means the Direction Nationale de l'Alphabgtisation Fonctionnelle et de la Linguistique Appliqu6e, of the Borrower's Ministry of Education. (i) "Project Account" means the account referred to in Section 3.01 (b) of this Agreement. (j) "Mali Franc" and "MF" mean the currency of the Borrower. (k) "Drilling Campaign" means a campaign of waterpoint drilling activities under the Project during a period of nine months between October and June of each year. (1) "Participating Village" means a village fulfilling the conditions of financial and administrative participation in the construction, operation and maintenance of the waterpoints included in the Project, as defined in arrangements entered into between DNHE and a given village located in the District of either Kita or Bafoulabg or Knigba. (m) "District" means Cercle, the Borrower's territorial subdivision. (n) "BDN" means Banque de D6veloppement du Mali. ARTICLE II The Special Fund Credit Section 2.01. The Administrator agrees to lend to the Borrower on the terms and conditions in the Special Fund Credit Agreement set forth or referred to, an amount in various currencies equivalent to six million Special Drawing Rights (SDR 6,000,000). Section 2.02. (a) The amount of the Special Fund Credit may be withdrawn from the Special Fund 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 Administrator, for expenditures made (or, if the Administrator 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 Special Fund Credit. (b) Withdrawals shall be made only on account of expendi- tures for goods produced in, or services supplied from, the territories of (A) any Part II member of IDA; (B) any Part I member of IDA which fulfills the conditions set forth in paragraph 13 (d) (ii) of the Special Fund Resolution on the date of this Agreement, as determined by the Administrator. Section 2.03. Except as the Administrator shall otherwise agree, procurement of the goods and civil works to be financed out of the proceeds of the Special Fund Credit shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be June 30, 1992, or such later date as the Administrator shall establish. The Administrator shall promptly notify the Borrower of such later date. Section 2.05. (a) The Borrower shall pay to IDA 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 Special Fund Credit not withdrawn from time to time. The commitment charge shall accrue from a date sixty days after the date of the Special Fund Credit Agreement to the respective dates on which amounts shall be withdrawn by the Borrower from the Special Fund Credit Account or shall be cancelled. -5- (b) The commitment charge shall be paid: (i) at such places as IDA shall reasonably request; (ii) without restrictions of any kind imposed by, or in the territory of, the Borrower; and (iii) in the currency specified in this Agreement for 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 IDA a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the amount withdrawn from the Special Fund Credit Account and outstanding from time to time. Section 2.07. Commitment charges and service charges shall be payable semiannually on February 15 and August 15 in each year. Section 2.08. The Borrower shall repay to IDA the principal amount of the Special Fund Credit in semiannual installments payable on each February 15 and August 15 commencing February 15, 1994 and ending August 15, 2033, each installment to and including the installment payable on August 15, 2003, 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 through DNHE with due diligence and efficiency and in conformity with appropriate administrative, financial, public utility engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without any limitation to the provisions of paragraph (a) of this Section the Borrower shall: (i) open and, thereafter, maintain a Project Account in MF at BDM on terms and conditions satisfactory to the Administrator; and (ii) allocate for its fiscal year 1984 an amount of MF 110,000,000. - 6 - (c) The Borrower shall deposit into the Project Account: (i) an amount of MF 650,000,000 to be paid in six installments. The first installment of MF 20,000,000 shall be deposited into the Project Account at the time of its establishment. The remaining five installments of MF 90,000,000, MF 110,000,000, MF 150,000,000, MF 190,000,000, and MF 90,000,000 shall be deposited into the Project Account not later than August 31, 1984, August 31, 1985, August 31, 1986, August 31, 1987 and August 31, 1988, respectively; and (ii) the proceeds of the financial contribution by the Participating Village referred to in Section 3.08 of this Agreement. Section 3.02. In order to assist the Borrower in carrying out the Project, the Borrower shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Administrator, such consultants to be selected in accordance with principles and procedures satis- factory to the Administrator on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing 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 Special Fund Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such in- surance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (b) The Borrower shall cause all goods and services financed out of the proceeds of the Special Fund Credit to be used exclusively for the purposes of the Project. Section 3.04. (a) The BGrrower shall furnish to the Admini- strator, promptly upon their preparation, the plans, specifica- tions, repor-s, contract documents and construction and procure- ment schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Administrator shall reasonably request. (b) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Special Fund Credit, and to disclose their use in the - 7 - Project; (ii) shall enable the Administrator'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 Special Fund Credit and any relevant records and documents; and (iii) shall furnish to the Administrator at regular intervals all such information as the Administrator shall reasonably request concerning the Project, its cost and, where appropriate, the benefits to be derived from it, the expenditure of the pro- ceeds of the Special Fund Credit and the goods and services financed out of such proceeds. (c) Upon the award by the Borrower of any contract for goods, works or services to be financed out of the proceeds of the Special Fund Credit, the Administrator may publish a descrip- tion 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 Administrator, the Borrower shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator 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 Bor- rower and the Administrator of their respective obligations under the Special Fund Credit Agreement and the accomplishment of the purposes of the Special Fund 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 Administrator, promptly after such acquisition, evidence satisfactory to the Administrator that such land and rights in respect of land are available for purposes related to the Project. Section 3.06. The Borrower shall prepare or cause to be prepared and shall furnish to the Administrator, not later than three months before the beginning of each Drilling Campaign, a budget satisfactory to the Administrator for the upcoming Drilling Campaign. Section 3.07. The Borrower shall cause DNHE to enter, no later than April 1, 1984, into arrangements satisfactory to the - 8 - Administrator with ODIPAC and DNAFLA to set up operational support for the Project execution. Section 3.08. The Borrower shall cause DNHE to enter, prior to the drilling of each waterpoint included in Part A of the Project, into arrangements satisfactory to the Administrator with each Participating Village, in order to define, inter alia, the financial contribution of each of the Participating Villages to the construction of the waterpoints included in Part A of the Project and to the operation and maintenance of the pumps included in Part B of the Project. Section 3.09. (a) The Borrower shall cause DNHE, during the third Drilling Campaign, to employ an independent consultant to carry out an evaluation of the activities to be included in the fourth Drilling Campaign, it being understood that such consul- tant shall be employed as provided in Section 3.02 hereof. (b) The Borrower shall, three (3) months before the end of the third Drilling Campaign, submit to the Administrator for its review and approval the program of activities to be included in the fourth Drilling Campaign, as proposed by the independent consultant. (c) Promptly upon receipt of the Administrator's approval, t.he Borrower shall cause DNHE to take all appropriate and necessary action to initiate the forth Drilling Campaign, taking into account the conditions (if any) placed by the Administrator on its approval. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained records and separate accounts adequate to reflect, in accordance with consistently maintained appropriate accounting practices, the operations, 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) have the Project Account and the accounts referred to in paragraph (a) of this Section for each Drilling Campaign audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Adminis- trator, as soon as available, but in any case not later than six months after the end of each such Drilling Campaign, a certified copy of the report of such audit by such auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said accounts, records and expenditures and the audit thereof as the Administrator shall from time to time reasonably request. Section 4.02. The Borrower shall adequately maintain, or cause to be maintained, installations and facilities constructed, improved, equipped or otherwise assisted under the Project in accordance with appropriate administrative and technical prac- tices, and provide, promptly as needed, the funds, facilities, services and other resources required for the pirpose. ARTICLE V Remedies of the Administrator Section 5.01. (a) For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof, namely, that subject to para- graph (b) of this Section: (i) the right of the Borrower to withdraw the proceeds of any grant, loan or credit (including the IDA Credit) 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 providing therefor, or (ii) any such loan or credit (including the IDA Credit) shall have become due and payable prior to the agreed maturity thereof. (b) Paragraph (a) of this Section shall not apply if: (i) 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 (ii) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. - 10 - 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 speci- fied in paragraph (a) (ii) of Section 5.01 of this Agreement shall occur. ARTICLE VI Effective Date; Termination; Designation of Administrator Section 6.01. The following events are specified as addi- tional conditions to the effectiveness of the Special Fund Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that: (a) The Borrower has, for the Project, allocated for its fiscal year 1984 an amount of MF 110,000,000; (b) all conditions precedent to the effectiveness of the Development Credit Agreement, except for the effectiveness of this Agreement, have been fulfilled; (c) the Project Account has been opened in accordance with the provisions of Section 3.01 (b) of this Agreement and the Borrower has deposited MF 20,000,000 therein; and (d) the consultants referred to in Section 3.02 of this Agreement have been employed in accordance with the provisions of such Section. Section 6.02. The date is hereby specified for the purposes of Section 12.04 of the General Conditions. Sectiua 6.03. The obligations of the Borrower under Section 4.02 of this Agreement and the provisions of Section 5.02 of this Agreement shall cease and determine on the date on which the Special Fund Credit Agreement shall terminate or on a date 20 years after the date of this Agreement, whichever shall be the earlier. Section 6.04. In the event that the Executive Directors of IDA decide to terminate the functions of IDA as Administrator of the Special Fund pursuant to paragraph 17 of the Special Fund - 11 - Resolution, the Administrator may, by notice to the Borrower, designate another party which, on the date specified in such notice, shall assume part or all of the rights and obligations of the Administrator under this Agreement in accordance with the Special Fund Resolution and such decision of the Executive Directors, as specified in such notice. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister in charge of finances 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: Minist8re des Finances Bamako R6publique du Mali Cable address: Telex: MINIFINANCES 972559 Bamako For the Administrator: Administrator of the Special Fund (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) - 12 - 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 MALI C By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FUND established with funds contributed by certain members of the International Development Association By Authorized Representative - 13 - SCHEDULE 1 Withdrawal of the Proceeds of the Special Fund Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Special Fund Credit, the allocation of the amounts of the Special Fund Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Special Fund Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works 5,100,000 92% (2) Equipment - 100% (3) Consultants' - 100% services and studies (4) Unallocated 900,000 TOTAL 6,000,000 2. The disbursement percentages have been calculated in com- pliance with the policy of the Administrator that the proceeds of the Special Fund Credit shall not 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; on this basis, if the amount of any such taxes levied on or in respect of items in any Category decreases or increases, the Administrator may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such Category as required to be consistent with the aforementioned policy of the Administrator. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of expenditures made prior to the date of this Agreement. - 14 - 4. Notwithstanding the allocation of an amount of the Special Fund Credit or the disbursement percentages set forth in the table in paragraph I above, if the Administrator has reasonably estimated that the amount of the Special Fund Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Administrator my, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Special Fund Credit which are then allocated to another Category and which in the opinion of the Administrator are not needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the disbursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 5. If the Administrator 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 expenditure for such item shall be financed out of the proceeds of the Special Fund Credit, and the Administrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under the Special Fund Credit Agreement, by notice to the Borrower, cancel such amount of the Special Fund Credit as, in the Administrator's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Special Fund Credit. - 15 - SCHEDULE 2 Description of the Project The main purpose of the Project is to assist the Borrower in improving living and sanitary conditions of the rural population in the Districts of Kita, Bafoulab6 and Knifba. The Project consists of the following Parts: ?art A: Construction of at least 325 waterpoints in the District of (ita during Drilling Campaigns and construction of about 15 waterpoints during the first Drilling Campaign in the villages in the Districts of Bafoulab6 and Knifba, all contingent upon achieving a success rate of at least 50%. Part B: Acquisition and installation of about 355 handpumps, and possibly acquisition and installation of other types of pumps. Part C: Provision of technical assistance to DNHE for 'the management of the Project and for the carrying out of a geophysical survey for well siting and promotional activities at the village level, including the acquisition by the consultants of vehicles and office equipment for the operation of DNHE's field unit in Kita. Part D: Carrying out of studies to prepare a follow-up project in the Districts of Bafoulabg and Knifba. The Project is expected to be completed by December 31, 1991. - 16 - SCEDULE 3 Procurement A. International Competitive Bidding 1. Subject to the eligibility restrictions set forth in S3ection 2.02 (b) of this Agreement, goods and civil works shall be procured under contracts awarded in accordance with procedures consistent with those set forth in the "Guidelines for Procure- ment under World Bank Loans and IDA Credits" published by the Bank in March 1977 (July 1980 edition) (hereinafter called the Guidelines), on the basis of international competitive bidding as described in Part A of the Guidelines. The above-mentioned eligi- bility restrictions shall be stated in the tender or prequali- fication documents for the procurement of such goods and civil works. 2. For goods and works to be procured on the basis of interna- tional competitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Administrator 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 Administrator shall reasonably request; the Administrator will arrange for the publication of such notice in order to pro- vide timely notification to prospective bidders of the oppor- tunity 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 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 - 17 - of the goods to the place of their use or installation shall be inciuded. B. Review of Procurement Decisions by the Administrator l. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts: (a) Before bids are invited, the Borrower shall furnish to the Administrator, 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 Administrator shall reasonably request. Any further modification to the bidding documents shall require the Administrator'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 Administrator of the name of the bidder to which it intends to award the contract and shall furnish to the Administrator, in sufficient time for its review, a detailed report, by the consul- tants referred to in Section 3.02 of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants and such other information as the Administrator shall reasonably request. The Administrator 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 Administrator'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 Administrator promptly after its execution and prior to the submission to the Administrator of the first application for withdrawal of funds from the Special Fund Credit Account in respect of such contract. - 18 - 2. 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 10% of the original price, the Borrower shall inform the Administrator of the proposed modification, waiver, extension or change order and the reasons therefor. The Administrator, 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. 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 al of the Association thereunto the <T- day of 198 . FOR SECRETARY