Guinea - Second Roads Project : Credit 1473 - Credit Agreement - 2 - Conformed

SPECIAL FUND CREDIT NUMBER SF18 GUB Special Fund Credit Agreement (Second Roads Project) between REPUBLIC OF GUINEA-BISSAU and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FUND established with funds contributed by certain members of the International Development Association Dated , 1984 SPECIAL FUND CREDIT AGREEMENT AGREEMENT, dated (A.A- e 2- , 1984, between REPUBLIC OF GUINEA-BISSAU (he ' inafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FUND established with funds contributed by certain members of the International Development Association (hereinafter called the Administrator). 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 of the Administrator 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 three million nine hundred thousand Special Drawing Rights (SDR 3,900,000) (hereinafter called the IDA Credit); and (D) the Borrower intends to contract from the Kuwait Fund a loan (hereinafter called the Kuwait Fund Loan) in an amount equivalent to five million one hundred thousand dollars ($5,100,000) to assist in the financing of the Project on the terms and conditions set forth in an agreement (hereinafter called the Kuwait Fund Loan Agreement) to be entered into between the Borrower and the Kuwait Fund; and WHEREAS the Administrator has agreed on the basis inter alia of the foregoing, to extend the Special Fund Credit to the Bor- rower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: - 2 - 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 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; and (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, in the Preamble to this Agreement and in Section 1.02 of the Development Credit Agreement have the res- pective meanings therein set forth and the following additional 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 Ldministrator 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; and (e) "Development Credit Agreement" means the agreement of even date herewith 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. ARTICLE II The Special Fund Credit Section 2.01. The Administrator agrees to lend to the Bor- rower on the terms and conditions in the Special Fund Credit Agreement set forth or referred to, an amount in various curren- cies equivalent to three million nine hundred thousand Special Drawing Rights (SDR 3,900,000). 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 producMi in, r 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 para- graph 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, 1990, or such later date as the Administrator shall establish. The Admin- istrator 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. (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 June 1 and December 1 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 June 1 and December 1, commencing June 1, 1994 andending December 1, 2033, each installment to and including the installment payable on December 1, 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. 2he currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. - 5 - ARTICLE III Execution of the Project Section 3.01. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and, to this end, the Borrower shall carry out Parts A, B, C, D and F of the Project through MOPCU and Part E of the Project through MTT, all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineer- ing, training and planning practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) In order to carry out its obligations under para- graph (a) of this Section and without limitation or restriction thereon, the Borrower shall: (i) maintain in Pesos an account at BNGB in the name of MOPCU; (ii) not later than January 31, in each FY during the execution of the Project, deposit in this account the necessary funds to finance the execution of Parts A, B, C, D and F of the Project during that FY; and (iii) by December 31, in each FY during the execution of the Project provide in the budget for a separate allocation to finance the execution of Part E of the Project during the following FY and, thereafter, make available to 4TT the funds so allocated. Section 3.02. For the purposes of carrying out Part E of the Project, the Borrower shall, not later than November 30, in each FY, furnish to the Administrator a work program satisfactory to the Administrator to be carried out by DTT during the following FY and supported by evidence satisfactory to the Administrator of an adequate budget allocation therefor. Section 3.03. For the purposes of carrying out Part A of the Project, the Borrower shall furnish to the Administrator for its approval a road rehabilitation program, including a calculation, in accordance with methods satisfactory to the Administrator, of the economic rate of return of the proposed rehabilitation. The Borrower undertakes not to present to the Administrator any road rehabilitation proposals with an economic rate of return of less than 12%. Section 3.04. (a) The Borrower shall, not later than three months before commencement of any overseas study courses included in Part C of the Project, furnish to the Administrator a proposal -6- satisfactory to the Administrator detailing the courses to be followed and the qualifications and experience of the persons who will follow them. (b) The Borrower shall ensure that the persons trained pur- suant to paragraph (a) above will remain at the service of the Borrower during at least three years after completing their training. Section 3.05. The Borrower shall carry out an Action Plan satisfactory to the Administrator; such plan, inter alia, to include: (a) not later than January 1, 1985, the establishment and thereafter the operation of a Road Fund (RF); (b) the adjustment from time to time and collection of road-user charges, including taxes on the importation and sale of petroleum products, so as to cover the cost of a road maintenance program satisfactory to the Administrator to be carried out in accordance with adequate road maintenance standards and prac- tices; (c) the deposit in the RF of all revenue from said charges necessary to finance said road maintenance program; (d) not later than January 1, 1985, the reorganization of the Borrower's agencies or departments responsible for road maintenance in order to streamline the administration of its road maintenance operations; and (e) not later than October 31 in each FY during the execu- tion of the Project, the review with the Administrator of the adequacy of MOPCU's staffing levels. Section 3.06. In order to assist MOPCU and MTT in carrying out the Project and preparing bidding documents for the acquisi- tion of goods and services required by the Project, the Borrower shall employ, not later than September 30, 1984, management, financial and engineering consultants whose qualifications, experience and terms and conditions of employment shall be satis- factory to the Association, such consultants to be selected in accordance with principles and procedures satisfactory to the Administrator on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as - 7 - Executing Agency" published by the Bank in August 1981; provided, however, that the eligibility restrictions set forth in Section 2.02 (b) of this Agreement shall apply to the employment of such consultants and that the said Guidelines shall be read as con- taining the said restrictions. Section 3.07. (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 insurance 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 3.08. (a) The Borrower shall furnish to the Admin- istrator, promptly upon their preparation, the plans, specifica- tions, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Administrator shall reasonably request. (b) The Borrower shall: (i) maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Special Fund Credit, and to disclose their use in the Project; (ii) enable the Administrator's accredited representa- tives 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 docu- ments; and (iii) furnish to the Administrator quarterly reports with 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 proceeds of the Special Fund Credit and the goods and services financed out of such proceeds. (c) 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 - 8 - the Administrator a report of such scope and in such detail as the Association shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be derived from it, the performance by the Borrower and the Administrator of their respective obligations under the Special Fund Credit Agreement and the accomplishment of the purposes of the Special Fund Credit. Section 3.09. The Borrower shall take or cause to be taken all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for carrying out the Project and shall furnish to the 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 3.10. The Borrower shall, not later than May 31, 1985 for the first time and not later than July 31 in each FY thereafter during the execution of the Project, furnish to the Administrator for comment: (a) MOPCU's road investment and maintenance program for the following FY; and (b) MOPCU's annual budget proposal therefor. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained 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 respon- sible for carrying out the Project or any part thereof. (b) Without limitation to the foregoing, the Borrower shall: (i) maintain or cause to be maintained separate accounts reflecting all expenditures on account of which withdrawals are requested from the Special Fund Credit Account on the basis of statements of expenditure; (ii) retain, until one year after the Closing Date, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing the expenditures on account of which withdrawals are requested from the Special Fund Credit Account on the basis of statements of expenditure; and (iii) enable the Administrator's representatives to examine such records. - 9 - (c) The Borrower shall: (i) have the accounts referred to in Section 2.02 (c) and in paragraphs (a) and (b) of this Section for each FY audited, in accordance with appropriate auditing principles consistently applied, by independent auditors accept- able to the Administrator; (ii) furnish to the Administrator, as soon as available, but in any case not later than six months after the end of each such year, a certified copy of the report of such audit by such auditors, of such scope and in such detail as the Administrator shall have reasonably requested, including without limitation to the foregoing, a separate opinion by said auditors in respect of the expenditures and records referred to in paragraph (b) of this Section as to whether the proceeds of the Special Fund Credit withdrawn from the Special Fund Credit Account on the basis of statements of expenditure have been used for the purpose for which they were provided; 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 cause all its national road network and its road maintenance equipment to be maintained adequately and shall cause all necessary repairs and renewals thereafter to be made promptly, all in accordance with appro- priate engineering standards and economic practices, and shall provide, promptly as needed, the funds, facilities, equipment, services and other resources required for the foregoing. Section 4.03. The Borrower shall, not later than January 1, 1985 and thereafter, take all necessary measures to ensure that the dimensions and axle-loads of vehicles using its national road network do not exceed limits consistent with the design standards of such roads. ARTICLE V Remedies of the Administrator Section 5.01. For the purposes of Section 6.02 of the Gen- eral Conditions, the following additional events are specified pursuant to paragraph (h) thereof: (a) (i) Subject to sub-paragraph (ii) of this paragraph (a): - 10 - (A) the right of the Borrower to withdraw the proceeds of any grant, loan or credit made to the Borrower (including the Development Credit) 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 there- for; or (B) any such loan or credit shall have become due and payable prior to the agreed maturity thereof; (ii) sub-paragraph (i) of this paragraph (a) shall not apply if the Borrower establishes to the satisfac- tion of the Administrator that: (A) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obliga- tions under such agreement; and (B) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obliga- tions of the Borrower under this Agreement. (b) The Kuwait Fund Loan Agreement shall have not become effective by October 1, 1985 or such later date as the Adminis- trator may agree, provided, however, that the foregoing shall not apply if the Borrower establishes to the satisfaction of the Administrator that adequate funds for the Project are available to the Borrower from other sources on terms and conditions con- sistent with the obligations of the Borrower under this Agree- ment. Section 5.02. For the purposes of Section 7.01 of the Gen- eral Conditions, the following additional event is specified pur- suant to paragraph (d) thereof, namely, that the event specified in sub-paragraph (a) (i) (B) of Section 5.01 of this Agreement shall occur subject to the proviso of sub-paragraph (a) (ii) of that Section. - 11 - ARTICLE VI Effective Date; Termination; Designation of Administrator Section 6.01. The following events are specified as additional conditions to the effectiveness of the Special Fund Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) that the Special Accounts referred to in Section 2.02 (c) of this Agreement have been opened; (b) that the Borrower has opened the account of BNGB referred to in Section 3.01 (b) of this Agreement and has deposited therein twenty million Pesos to finance the execution of Parts A, B, C and D of the Project during FY 1984; and (c) that all conditions precedent to the effectiveness of the Development Credit Agreement, except for the effectiveness of this Agreement, have been fulfilled. Section 6.02. The date -e 1 ' 2 is hereby specified for the purposes o Section 12.04 of the General Conditions. Section 6.03. 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 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 Ministerio da Economia e Finanoas of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. - 12 - Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministerio de Economia e Finanqas CP 67 Bissau Guinea-Bissau Cable address: Telex: BANGUINE 969-11 Bissau 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) - 13 - 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 GUINEA-BISSAU By / ) <ett < (AOe 0 7 Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL FUND established with funds contributed by certain members of the International Development Association BC y/(Regional Vice President Western Africa - 14 - 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 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) Road maintenance 1,460,000 100% of foreign equipment and expenditures and works, equipment 50% of local ex- for DTT, rehabili- penditures tation of equip- ment by contract (2) Wages of temporary 880,000 74% MOPCU employees (3) Ferry boat, engine 240,000 100% of foreign and spare parts expenditures and for ferry fleet 50% of local ex- penditures (4) Technical assistance 550,000 100% of foreign for road maintenance, expenditures and consulting and 50% of local ex- auditing services, penditures and study of ferry needs (5) Unallocated 770,000 TOTAL 3,900,000 - 15 - 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of, and for goods produced in or services supplied from, any country other than the Borrower which is (A) a Part II member of IDA or (B) a 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 the Special Fund Credit Agreement, as determined by the Administrator; and (b) the term "local expenditures" means expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower. 3. The disbursement percentages have been calculated in com- pliance with the policy of the 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 Bor- rower 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. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expenditures prior to the date of this Agreement. 5. Notwithstanding the allocation of an amount of the Special Fund Credit or the disbursement percentages set forth in the table in paragraph 1 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 may, 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 ex- penditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. - 16 - 6. 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. - 17 - SCHEDULE 2 Description of the Froject The Project is a continuation of the Botrower's Roads Pro- ject financed under Credit No. 878 GUB and its -ibjective is to assist the Borrower further in the rehabilitation and maintenance of its road network and to improve ferry operations. The Project consists of the following parts: Part A: Rehabilitation of Roads (i) Rehabilitation of about 200 km of paved roads in accordance with the design standards set forth in Part A of the Exhibit to this Schedule; (ii) rehabilitation of about 300 km of unpaved roads in accordance with the design standards set forth in Parts B and C of the Exhibit to this Schedule; and (iii) acquisition of road construction equipment and vehicles. Part B: Maintenance of Roads (i) Establishment of a routine road maintenance capacity based in Bissau and in the Buba, Oio and Gabu regions; and (ii) construction of or improvement to buildings, acquisition of field, office and workshop equip- ment, and vehicles. Part C: Training (i) Training of DPE technical and administrative staff; (ii) acquisition of training materials and equipment; (iii) provision of scholarships for overseas study by employees of MOPCU; and (iv) improvement of the MOPCU training center. - 18 - Part D: Ferry Operations i Improvement of the administrative and financial aspects of ferry operations; (iil acquisition of a 20-30 ton ferry boat and spare parts therefor; \iiil acquisition of a mobile workshop and spare parts for four existing ferries; (iv) repair of ferry landing ramps; and (v) study of long-term ferry needs. Part E: Assistance to DTT (i) Improvement of the operations, data collection and enforcement activities of DTT; (ii) acquisition of vehicles, vehicle testing equipment and traffic counters; and (iii) acquisition of road signing equipment and mate- rials. Part F: Assistance to MOPCU (i) Strengthening of MOPCU's planning, administrative, and accounting capacity; (ii) improvement of DGU's urban planning and adminis- tration capacity; and (iii) improvement of the laboratory operations of MOPCU. The Project is expected to be completed by December 31, 1989. - 19 - EXHIBIT to SCHEDULE 2 Design Standards A. Bitumen Roads Surfacing: Single Surface Dressing or Double Surface Dressing or Sand Seal depending on existing surface condition, using screened laterite aggregate or river sand and MC 3,000 cut back bitumen, 6 m wide. Associated Pre-sealing patching, bridge and culvert Works: repairs, ditch cleaning, making-up and re- grading shoulders where necessary. B. Engineered Gravel Roads Earthworks: Earthworks are to be limited to sections where the existing vertical and/or horizontal alignment limit safe travelling speed below 60 km/h. Formation: Width: 9 m Paved width: 6 m Pavement thickness: 15 cm minimum Minimum height of road crown above invert of side drain: 45 cm C. Earth Roads Earthworks: Consistent with 40 km/h safe travelling speed. Formation: Width: 8 m Pavement: only as and where soil conditions require. Normal height of road crown above invert of side drain: 30 cm - 20 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Subject to the eligibility restrictions set forth in Section 2.02 (b) of this Agreement and except as provided in Part B here- of, goods and civil works shall be procured under contracts awarded in accordance with procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in March 1977 (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 eligibility restrictions shall be stated in the tender or prequalification documents for the pro- curement 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; 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; and (iii) the cost of inland freight and other expenditures incidental to the delivery - 21 - of the goods to the place of their use or installation shall be included. B. Other Procurement Procedures (i) Contracts for the construction of buildings under Part B (ii) of the Project shall be procured on the basis of local competitive bidding procedures acceptable to the Administrator. (ii) Contracts for the purchase of spare parts up to $280,000 equivalent under Parts A (iii), B (ii), D (ii) and E (ii) of the Project, shall be procured after obtaining quotations from at least three potential suppliers. The same procedure will apply for building materials for force account construc- tion. (iii) Road signing and vehicle testing equipment, under Part E (ii) and (iii) of the Project and equipment under Part C (ii) of the Project shall be procured through international shopping after obtaining quotations from at least three potential sup- pliers. C. Review of Procurement Decisions by the Administrator 1. Review of invitations to bid and of proposed awards and final contracts: With respect to all contracts estimated to cost the equivalent of $50,000 or more: (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 - 22 - 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 eval- uation 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 Credit Account in respect of such contract. 2. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Administrator, promptly after its execution and prior to the submission to the Administrator of the first application for withdrawal of funds from the Credit Account in respect of such contract, two con- formed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other information as the Administrator shall reasonably request. The Administrator shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. 3. Before agreeing to any material modification or waiver of the terms and conditions of a contract, or granting an extension of the stipulated time for performance of such contract, or issuing any change order under such contract (except in cases of extreme urgency) which would increase the cost of the contract by - 23 - 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 Seal of the Association eunto the - day of FOR SECRETARY