India - Second National Agricultural Extension Project : Credit 1569 - Project Agreement - Conformed

CREDIT NUMBER 1569 IN OFFICIAL DOCU M ENTS Project Agreement (Second National Agricultural Extension Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF GUJARAT and STATE OF HARYANA and STATE OF JAMMU AND KASHMIR and STATE OF KARNATAKA Dated J /O , 1985 CREDIT NUMBER 1569 IN PROJECT AGREEMENT AGREEMENT, dated <?2ay /o , 1985, between INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association) and STATE OF GUJARAT and STATE OF HARYANA and STATE OF JAMMU and KASHMIR and STATE OF KARNATAKA, acting by their respective Governors (hereinafter collectively called the Project States). WHEREAS by the Development Credit Agreement of even date herewith between India, acting by its President (hereinafter called the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to fifty million two hundred sixty thousand Special Drawing Rights (SDR 50,260,000), on the terms and condi- tions set forth in the Development Credit Agreement, but only on condition that the Project States agree to undertake such obliga- tions toward the Association as are hereinafter set forth; WHEREAS in accordance with the Borrower's standard arrange- ments for development assistance to the States of India, the proceeds of the credit provided for under the Development Credit Agreement will be made available to the Project States; and WHEREAS the Project States, in consideration of the Associa- tion s entering into the Development Credit Agreement with the Borrower, have agreed to undertake the obligations hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Definitions Section 1.01. Wherever used in this Agreement, unless the context shall otherwise require, the several terms defined in the Development Credit Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. - 2 - ARTICLE II Execution of the Project Section 2.01. (a) The Project States declare their commit- ment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreeement, and, to this end, shall carry out the Project described in said Schedule with due dili- gence and efficiency and in conformity with appropriate admini- strative, financial, engineering and agricultural practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section, the Project States shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement, as such Schedule may be amended from time to time by agreement between the Association and the Project States. Section 2.02. Except as the As3ociation 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 1 to this Agree- ment. Section 2.03. The Project States shall carry out the obliga- tions set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, mainte- nance and land acquisition, respectively) in respect of the Project Agreement. Section 2.04. (a) The Project States shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of their obligations under this Agreement and other matters relating to the purposes of the Credit. (b) The Project States shall promptly inform the Associa- tion of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Credit, or the performance by the Project States of their respective obligations under this Agreement. -3- ARTICLE III Financial Covenants Section 3.01. Each of the States shall cause its departments aud other agencies and authorities responsible for the carrying out of its part of the Project or any part thereof to: (i) main- tain separate records and accounts adequate to reflect, in accordance with sound accounting practices and procedures consis- te-.:-.y applied, their resources, expenditures and operations related to the Project; and (ii) furnish to the Association copies of their accounts and financial statements related to the Project for each fiscal year, certified as to their accuracy and authenticity by an independent auditor acceptable to the Associa- tion, as soon as available but in any case not later than nine months after the end of each such year. Section 3.02. Each of the States shall cause its departments and other agencies and authorities responsible for the carrying out of its part of the Project or any part thereof to: (i) have their accounts and financial statements related to the Project 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 immediately following its finalization, the report of such audit by said auditors, of such scope and in such detail as the Asso- ciation shall have reasonably requested; and (iii) furnish to the Association such other information concerning said accounts and records, financial statements and the audit thereof as the Association shall from time to time reasonably request. ARTICLE IV Effective Date; Termination; Cancellation and Suspension Section 4.01. This Agreement shall come into force and effect on the date upon which the Development Credit Agreement becomes effective. Section 4.02. (a) This Agreement and all obligations of the Association and of the Project States thereunder shall terminate on the earlier of the following two dates: (i) the date on which the Development Credit Agreement shall terminate in accordance with its terms; or -4- (ii) a date 20 years after the date of this Agreement. (b) If the Development Credit Agreement terminates in accordance with its terms before the date specified in paragraph (a) (ii) of this Section, the Association shall promptly notify the Project States of this event. Section 4.03. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancella- tion or suspension under the General Conditions. ARTICLE V Miscellaneous Provisions Section 5.01. Any notice or request required or permitted to be given or made under this Agreement and any agreement between the parties contemplated by this Agreement shall be in writing. Such notice or request shall be deemed to have been duly given or made when it shall be delivered by hand or by mail, telegram, cable, telex or radiogram to the party to which it is required or permitted to be given or made at such party's address hereinafter specified or at such other address as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. For State of Gujarat: Secretary to the Government of Gujarat Agriculture and Rural Development Department Sachivalaya Gandhinagar, Gujarat, India -5- Cable address: AGRICOPSEC Gandhinagar, India For State of Haryana: Financial Commissioner and Secretary to Government-Haryana Department of Agriculture, Civil Secretariat Chandigarh, India For State of Jammu and Kashmir: Secretary to Government Agricultural 'roduction Department Civil Secretariat Sarinagar/Jammu, India Cable address: AGRISEC Sarinagar/Jammu, India Cable address: AGRISEC HARYANA Chandigarh, India For State of Karnataka: Secretary to Government Department of Agriculture and Horticulture Bangalore, India Cable address: AGRISEC Bangalore, India Section 5.02. Any action required or permitted to be taken, and any document required or permitted to be executed, under this Agreement on behalf of each of the Project States may be taken or executed by a Secretary to the Government in each Project State or such other person or persons as each Project -6- State shall designate in writing, and each Project State shall furnish to the Association sufficient evidence of the authority and the authenticated specimen signature of each such person. Section 5.03. This Agreement may be executed in several counterparts, each of which shall be an original, and all collectively but one instrument. 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. INTERNATIONAL DEVELOPMENT ASSOCIATION By SIb(~u A,c Acting Regional Vice President South Asia STATE OF GUJARAT By 8 Authorized Representative STATE OF HARYANA By Authorized Representative STATE OF JAMMU AND KASHMIR By ea' Authorized Representative STATE OF KARNATAKA By Authorized Representative -7- SCHEDULE 1 Procurement A. General Procedures Except as provided in Parts B and D hereof, contracts for civil works, vehicles, equipment and furniture shall be let on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. B. Other Procurement Procedures Contracts for equipment and furniture estimated to cost the equivalent of $50,000 or less may be procured by prudent shopping through normal trade channels. C. Review of Procurement Decisions by the Association 1. Review of invitations to bid and of proposed awards and final contracts: (a) With respect to all contracts estimated to cost the equivalent of $100,000 or more, the procedures set forth in para- graphs 2 and 4 of Appendix 1 to the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the Bank in August 1984 (the Guidelines) shall apply. (b) With respect to each contract not governed by the preceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. (c) The provisions of the preceding subparagraphs (a) and (b) shall not apply to contracts on account of which the Associa- tion has authorized withdrawals from the Credit Account on the basis of statements of expenditures. Such contracts shall be retained until one year after the Closing Date. 2. The figure of 15% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. D. Procurement Without Contracting Civil works estimated to cost the equivalent of $25,000 each or less, may be carried out through force account. - 8 - SCHEDULE 2 Japlementation Program 1. The Project States shall: (a) establish procedures, satis- .factory to the Association, for carry4ng out effective monitoring and evaluation of their respective parts of the Project and carry out such monitoring and evaluation in accordance with said procedures; and (b) prepare and furnish to the Association, through DOE, annual summaries of the results of such monitoring and evaluation. 2. The Project States shall ensure that: (a) all extension positions assigned to the administrative control of DOA for the purposes of the Project shall be used exclusively for agricul- tural extension and retained under such administrative control and; (b) staff assigned to carry out extension work under the Project shall not be adversely affected, in respect of their entitlements to emoluments, benefits and promotional prospects, by reason alone of such assignment. 3. In order to ensure the mobility of staff engaged in exten- sion work under the Project, the Project States undertake to make available: (a) to all eligible staff in need of credit for the purchase of motorcycles, mopeds or bicycles, such credit on terms and conditions designed to provide incentives for the purchase of such motorcycles, mopeds or bicycles; and (b) such financial incentive, including appropriate travel allowances, in order to encourage optimum use of the motorcycles, mopeds and bicycles to be purchased under paragraph (a) above. 4. The Project States undertake to fill incremental staff posi- tions wi-L staff having qualifications and experience satisfac- tory to the Association and in accordance with a schedule agreed with the Association. 5. Each of the Project States: (a) shall, no later than Septem- ber 30, 1987, prepare and furnish to the Association for its com- ments, a mid-term review of the Project execution, such review to determine inter alia the adequacy of the existing field staff arrangement; and (b) if the findings of such review reveal that the number of staff or other facilities deployed under the Project are not sufficient for the efficient implementation thereof, shall increase the number of staff and other facilities so deployed taking into account the Association's recommenda- tions. -9- 6. Beginning July 15, 1986 and each year thereafter, the Project States shall furnish their annual's Project budget to the Association for its review. 7. Gujarat shall ensure that a single line of administrative command within DOA from the district agricultural officer level down to the level of village extension workers is established. 8. In order to coordinate the implementation of Part A of the Project, Jammu and Kashmir shall by August 31, 1985, establish a coordination committee with functions and me!mbership satisfactory to the Association. 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 0day of , 198F SC T FOR SECRETARY