Sierra Leone - Health And Population Project : Credit 1695 - Credit Agreement - Conformed

OFFICIAL CREDIT NUMBER 1595 SLM Development Credit Agreement (Health and Population Project) between REPUBLIC OF SIERRA LEONE and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated Z , 1986 CREDIT NUMBER 1695 SL DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated e 2,4 , 1986, between REPUBLIC OF SIERRA LEONE (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAC the Borrower, having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; 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 set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Develop- ment Credit Agreements" of the Association, dated January 1, 1985, (the General Conditions) constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions have the respec- tive meanings therein set forth and the following additional terms have the following meanings: (a) "Special Account" means the account referred to in Sec- tion 2.02 (b) of this Agreement; (b) "Local Advance Account" means the account referred to in Section 3.01 (f) of this Agreement; (c) "Project Preparation Advance" means the project pre- paration advance granted by the Association to the Borrower pursuant to an exchange of letters dated September 26, 1984, November 16, 1984, July 2, 1985 and August 27, 1985 between the Borrower and the Association; (d) "MOH" means the Borrower's Ministry of Health; -2- (e) "PHC Coordinating Unit" means the Primary Health Care Coordinating Unit of MOH; (f) "NPC" means the Borrower's National Population Commis- sion; (g) "NGO" means a non-governmental organization in the health care or population field selected by the Borrower with the agreement of the Association for participation in project activities; and (h) "leone" or "Le" means the currency of the Borrower. ARTICLE II The Credit Section 2.01-. The Association agrees to lend to the Bor- rower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to four million six hundred thousand Special Drawing Rights (SDR 4,600,000). 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 Association, 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 described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit. *(b) The Borrower shall, for the purposes of the Project, open and maintain in dollars a special account in a commercial bank on terms and conditions satisfactory to the Association. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 5 to this Agreement. (c) 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 principal amount of the Project Preparation Advance withdrawn and outstanding as of such date and to pay all unpaid charges -3- thereon. The unwithdrawn balance of the authorized amount of the! Project Preparation Advance shall thereupon be cancelled. Section 2.03. The Closing Date shall be June 30, 1990 or such later date as the Association shall establish. The Associa- tion shall promptly notify the Borrower of such later date. Section 2.04. (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 restrictions 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 2.05. 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 2.06. Commitment charges and service charges shall be payable semiannually on March 1 and September 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each March 1 and September 1 commencing September 1, 1996, and ending March 1, 2036. Each installment to and including the installment payable on March 1, 2006 shall be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter shall be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. -4- 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, shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative and public health and management practices, and shall provide, 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 Borrower shall carry out the Project in accordance with the Implementation Program set forth in Sched- ule 4 to this Agreement, as such Schedule may be amended from time to time by agreemeat between the Borrower and the Associa- tion. (c) The Borrower shall maintain the Project Steering Com- mittee and the Project Implementation Committee in a form and with functions and staffing satisfactory to the Association. Further provisions relating to the Project Steering Committee, the Project Implementation Committee as well as the District Implementation Teams are set out in Part B of Schedule 4 to this Agreement. (d) The Borrower shall: (i) pursuant to Part A (3) of the Project establish and thereafter maintain in MOH a Planning, Management, Information and Statistics Unit (PMISU) in a form and with functions and staffing satisfactory to the Association; and (ii) assign to PMISU no later than September 30, 1986, a Senior Management Information Officer, a Computer Operation/System Analyst and a Secretary. (e) The Borrower shall: (i) continue to maintain the PHC Coordinating Unit in a form and with functions and staffing satisfactory to the Association; and (ii) to that end assign (A) to the PHC Coordinating Unit an operations officer, a train- ing and evaluation officer and a liaison officer, and (B) to the provincial health office and district health office respectively an administrative officer and a medical officer. (f) The Borrower shall: (i) open at a commercial bank and thereafter maintain a local advance account to be used exclu- sively for local expenditures to be made under the Project; (ii) pay into the local advance account an initial amount of two -5- hundred thousand leones (Le 200,000) (the initial amount); and (iii) thereafter replenish the Local Advance Account as and when required to ensure that on the first day of each calendar quarter of eachlyear the Project is executed, an amount equal to at least the ini' tial amount shall be available in that account. Section 3.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants' services required for the Project and to be financed out of the proceeds of the Credit and procurement of all essential drugs, vaccines and medical supplies for the public sector to be financed from the Borrower's own budgetary resources shall be governed by the provisions of Schedule 3 to this Agreement. Section 3.03. Not later than eighteen months after the Effective Date the Borrower and the Association shall in a joint review evaluate progress achieved in carrying out the Project including the health policy reforms, progress in the implementa- tion of cost containment and cost recovery measures (including increased hospital user fees), development of population and nutrition policies and the need for any changes in estimates of Project costs and Project scope or structuring. Section 3.04. (a) The Borrower shall with effect from fiscal year 1986/1987 reduce the number of MOH's daily wage employees by at least 10% yearly so that the Borrower shall effect a total reduction of at least 30% by June 30, 1989 in the number of such employees, as determined on December 31, 1985. (b) The Borrower shall by June 30 in 1987 and in each following year up to and including June 30, 1989 furnish the Association with evidence satisfactory to the Association showing that the Borrower has achieved the reduction in daily wage employees required under paragraph (a) of this Section. ZICLE IV Financial Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained separate records and accounts adequate to reflect in accordance with sound 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 accounts referred to in paragraph (a) of this Section including the Special Account and the Local Advance Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by indpendent 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 copy of 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 the said accounts and the audit thereof and said records as the Association shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Credit Account were made on the basis of statements of expenditure, the Borrower shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, separate records and accounts reflecting such expenditures; (ii) retain, until at least one year after the completion of the audit for the fiscal year in which the last withdrawal from the Credit Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Association's representatives to examine such records; and (iv) ensure that such separate accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report thereof contains, in respect of such separate accounts, a separate opinion by said auditors as to whether the proceeds of the Credit withdrawn in respect of -7- such expenditures were used for the purposes for which they were provided. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the establishment of PMISU and the assignment to PMISU of a Principal Health Planning Officer; (b) the assignment of the staff specified in Section 3.01 (e) of this Agreement to the PHC Coordinating Unit and to the provincial health office and the district health office; (c) the opening of the Local Advance Account and the pay- ment of the initial amount pursuant to Section 3.01 (f) of this Agreement; and (d) the establishment, in each of the Borrower s districts where the Project is carried out, of a District Implementation Team,'satisfactory to the Association. Section 5.02. The date ninety (90) days after the date of this Agreement is hereby specified for the purposes of Sec- tion 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: -8- For the Borrower: The Financial Secretary The Ministry of Finance Freetown Sierra Leone Cable address: Telex: MINFIN 3363 Freetown For the Association: 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) IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, 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 SIERRA LEONE 'yh D o u S. w&~l"a- Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION Regional Vice President Western Africa -9- 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) Civil works 525,000 90% (2) (a) Furniture, 610,000 ) equipment, ) vehicles and ) materials ) 100% of foreign ) expenditures and (b) Essential -1,045,000 ) 85% of local drugs, ) expenditures vaccines and ) medical ) supplies ) (31 Consu tants' 1,220,000 100% servides and fellowphips (4) Local; training 695,000 100% and recurrent costs (5) Refunding of 225,000 Amor due pur- Project Prepara- sue to Section tion Advance 2.02 (c) of this Agreement (6) Unallocated 280,000 TOTAL 4,600,000 - 10 - 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of the Borrower; (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; and (c) the term "Recurrent costs of the Project" shall mean the costs defined in the Annex to this Schedule, as modified from tIme to time by agreement between the Borrower and the Associa- tion. 3. Notwithstanding the provisiona of paragraph 1 above: (i) no withdrawals shall be made after June 30, 1987 in respect of expenditures under Categories (1) and (4) unless (except as the Association may otherwise agree) the Borrower has furnished the Association with evidence of reduction in daily wage employees required under Section 3.04 (b) of this Agreement; and (ii) no withdrawals shall be made in respect of expenditures under Category (2) (b) unless the Borrower has furnished to the Association with every withdrawal application relating to such expenditures evidence satisfactory to the Associa- tion showing that the procurement of all essential drugs, vaccines and medical supplies mentioned in Section 3.02 of this Agreement is governed by the provisions of Schedule 3 to this Agreement. . - 11 - SCHEDULE 1 (Annex) Project Recurrent Costs Recurrent costs of the Project shall mean the following costs: (1) Incremental salaries of MOH and NPC relating to the following positions: A. Planning, Management Information System Unit, MOH 1. Principal Health Planning Officer 2. Senior Management Information Officer 3. Computer Operation/System Analyst 4. Secretary B. Primary Health Care Coordinator's Office 1. Operations Officer 2. Training and Evaluation Officer 3. Accountant 4. NGOs Liaison Officer 5. Administrative Officer 6. Sub-Accountant C. Provincial Health Office Administrative Officer D. District Health Office Medical Officer E. National Population Commission Secretariat 1. Demographer/Economist 2. Communication Specialist 3. System Analyst 4. Statistical Assistants F. Health Education Unit, MOH Health Education Officer. - 12 - (2) Vehicle operation and maintenance costs of MOH, NPC and NGOs. (3) Perishable medical supplies and office supplies. - 13 - SCHEDULE 2 Description of the Project The objectives of the Project are: (i) improvement of the health sector through policy reforms and strengthening of MOH in program planning, management, coordination and monitoring; (ii) strengthening of basic health and family planning services, particularly primary health care; and (iii) development of population policy and programs to meet family planning needs. The Project consists of the following Parts, subject to such modifications thereof as the Borrower and the Association may agree upon from time to time to achieve such objectives: Part A: Sectoral Support 1. (a) Reorganization and administration of the Borrower's health care delivery system. (b) Revision of existing manpower policies, job descrip- tions, deployment and training programs for the Borrower's health care staff. (c) Improvement of health expenditure and resource alloca- tion (including cost containment and cost recovery measures), existing budgeting, accounting and auditing practices, pharmaceu- tical management and logistics practices (including supply and distribution of drugs, vaccines and contraceptives) and utiliza- tion of health services and facilities. 2. Strengthening of MOH's planning, statistics and management information system, including the establishment of a Planning, Management Information and Statistics Unit (PMISU) and provision to MOH of micro-computing and office equipment, materials and vehicles, local and overseas fellowships for MOH staff and operational research studies. 3. Establishment of an effective system for accounts main- tenance, audit and financial reporting, institution of appro- priate cost-containment measures, and strengthening of cost recovery measures. -14- 4. Improvement of coordination and management of the Borrower's primary health care program, including the strengthening of the PHC Coordinating Unit, establishment within the PHC Coordinating Unit of annual residences for physicians scheduled for overseas public health fellowships, provision to the PHC Coordinating Unit of vehicles, furniture, equipment and materials and production for the use of MOH staff of a primary health care operational manual satisfactory to the Association. Part B: Basic Health and Family Planning Services 1. Extension of primary health care to the Kenema, Moyamba and Tonkolili districts, including the rehabilitation and/or con- struction and equipping of central medical stores warehouses, district hospitals, peripheral health units and rehabilitation and equipping of the referral hospital for Tonkolili and assign- ment of paramedical staff to the peripheral health units. 2. Improvements in drug supply and distribution including: (A) development of a standard list of drugs, contraceptives and medical supplies for use at health facilities; (B) introduction of an improved system of record-keeping, storage, distribution and supplies monitoring at the central medical stores and in the Bo, Pujehun, Kenema, Moyamba, Tonkolili and Bombali districts; (C) staff training in record-keeping and inventory management; (D) production of a prescription manual for in-service train- ing and use by health workers and a plan for the procurement, storage, distribution and safekeeping of drugs, vaccines and other health related items; and (E) establishment of a revolving fund to ensure regular replenishment of drugs in six districts. 3. Staff training including: (A) the strengthening of the Borrower's community health officer training program and imple- mentation of its one-year assistant community health officer program; (B) expansion, furnishing and equipping of classroom and dormitory space at Bo; (C) introduction of appropriate community health (drug usage and family planning) content into the formal curricula for training of paramedicals; and (D) development by the PHC Coordinating Unit of a field-based in-service training for district and lower level health workers and development of a consolidated in-service training plan. 4. Development of health, nutrition and family planning educa- tion including: (A) training of staff of MOH's Health Education and Nutrition Units, (B) provision to MOH of office equipment - 15 - and materials to strengthen health, nutrition, maternal child health and family planning education, and (C) a study of agencies involved in population, health, nutrition and maternal child health education and development of a comprehensive plan of action to serve as the framework for the development of a com- munity education campaign aimed at health care, nutrition educa- tion, birth spacing and fertility control. Part C: Population Activities 1. Strengthening the capacity of the Borrower's National Population Commission (NPC) to develop population policy and coordinate, monitor, evaluate and support population related actiVities. 2. Provision of additional professional and support staff, basic furniture, equipment, materials and vehicles to the NPC Secretariat. 3. Training seminars and workshops for policy makers, planners and staff of relevant ministries; development and production of materials on population related issues; and the carrying out of operations research projects and population program-oriented studies by appropriate NGOs. 4. Strenghthening the effectiveness of NGOs and provision of necessary assistance to the NGOs. 5. Development by the University of Sierra Leone's Institute of Education of appropriate syllabuses and teaching kits; training of teaching personnel in population education; and the evaluation of training methodology, training programs and instructional materials. The Project is expected to be completed by June 30, 1989. - 16 - SCHEDULE 3 Procurement and Consultants' Services Section I. Procurement of Goods and Works Part A: International Competitive Bidding 1. Except as provided in Part C hereof, goods (including all essential drugs, vaccines and medical supplies for MOH and other public sector institutions) shall be procured under contracts awarded in accordance with procedures consistent with those set forth in Sections I and II of the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the Bank in May 1985 (the Guidelines). 2. To the extent practicable, contracts for drugs, medical supplies, vehicles, equipment and material shall be grouped in bid packages estimated to cost an amount equivalent to $50,000 or more. Part B: Preference for Domestic Manufacturers In the procurement of goods in accordance with the proce- dures described in Part A.1 hereof, goods manufactured in Sierra Leone may be granted a margin of preference in accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the Guidelines and paragraphs 1 through 4 of Appendix 2 thereto. Part C: Other Procurement Procedures 1. Civil works and furniture and standard office equipment may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. To the extent practicable such furniture and equipment shall be grouped in bid packages in amounts sufficient to encourage competitive bidding and permit bulk procurement. 2. Miscellaneous equipment and materials estimated to cost an amount equivalent to $5,000 per contract (up to an aggregate amount not to exceed an amount equivalent to $100,000), fuel and perishable supplies and office supplies may all be procured under contracts awarded on the basis of price quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures acceptable to the Association. -17- Part D: Review by the Association of Procurement Decisions 1. Review of invitations to bid and of proposed awards and final contracts: (a) With respect to each contract to be awarded under international competitive bidding procedures referred to in Part A of this Section and each contract for goods or works esti- mated to cost the equivalent of $50,000 or more, the procedures set forth in paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Association pursuant to paragraph 2 (d) of said Appendix shall be furnished to the Association prior to the making of the first payment out of the Special Account in respect of such contract. (b) With respect to each contract not governed by the pre- ceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract together with the other information required to be furnished to the Association pursuant to said paragraph 3 shall be furnished to the Association as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 5 to this Agreement. (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 expenditure. Such contracts shall be retained in accordance with Section 4.01 (c) (ii) of this Agree- ment. 2. The figure of 10% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines. Section II. Employment of Consultants In order to assist the Borrower in carrying out the Project, the Borrower shall employ consultants whose qualifications, expe- rience and terms and conditions of employment shall be satisfac- tory to the Association. Such consultants shall be selected in - 18 - accordance with principles and procedures satisfactory to the Association 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. - 19 - SCHEDULE 4 Implementation Program Part A: General 1. Standard List of Drugs, Prescription Manual and Training of Health Workers The Borrower shall: (i) not later than December 31, 1986 complete and furnish to the Association the standard list of drugs, contraceptives and medical supplies and the plan for the procurement, storage, distribution and safekeeping of drugs, vaccines and other health related items required under Part B (2) of the Project; and (ii) not later than March 31, 1987 (A) com- mence the training of health workers on drug storage, distri- bution and prescription, and (B) complete and furnish to the Association the prescription manual required under said Part of the Project. 2. Policy Studies, Health Investment Plan and Annual Development Plan (a) The Borrower shall: (i) not later than March 31, 1987 furnish to the Association for its review and comments the results and recommendations of the policy studies to be carried out under Part A.1 and 2 of the Project; (ii) incorporate into a long-term health investment plan recommendations of the studies as shall be satisfactory to the Association; and (iii) not later than September 30, 1987 furnish to the Association for its review and comments the final draft of such investment plan. (b) The Borrower shall until the completion of the Project furnish to the Association not later than April 30 each year for the Association's review and comments a draft of the Borrower's annual development plan with details of related . cost implica- tions. 3. Drug Procurement and Pricing Study (a) The Borrower shall not later than June 30, 1987: (i) carry out and furnish to the Association for its review and comments a study of the drug procurement and pricing practices ,0- of the private sector in Sierra Leone; and (ii) furnish to the Association proposals for improving such procurement and pricing practices. (b) The Borrower shall maintain an escrow account in the Bank of Sierra Leone, to be used exclusively to purchase essen- tial drugs, vaccines and medical supplies for distribution in the six districts mentioned in Part B.2 of the Project. 4. National Population Statement (a) The Borrower shall not later than December 31, 1986: (i) prepare and furnish to the Association for its review and comments a draft national population policy statement; and (ii) carry out a review of the legal status, composition, structure and functions of the National Population Commission and its Secretariat, including recommendations as to measures which the Borrower proposes to take to strengthen the National Population Commission and upgrade the position of the Secretariat in the government organizational structure. (b) The Borrower shall not later than July 31, 1987 prepare and furnish to the Association an action plan satisfactory to the Association for implementing the Borrower's national population policy. 5. Plan for Community Education The Borrower shall not later than December 31, 1987 pre- pare and furnish to the Association for its review and comments the comprehensive plan for community education required under Part B (4) of the Project. Part B: Project Agencies 1. Project Steering Committee (PSC) PSC shall be concerned with broad policy matters, overall supervision of project execution, review of project performance, ensuring timely financial flow of funds for the Project, mid- term evaluation of the Project and informing the Association of progress of the Project. PSC shall be constituted as follows:- Financial Secretary - Chairman Development Secretary - Member - 21 - Permanent Secretary for Health - Member Chief Medical Officer - Member A representative of NGOs - Member Principal Planning Officer of Social Sector in the Ministry of Development and Economic Planning - Secretary 2. Project Implementation Committee (PIC) (a) PIC shall be responsible for the coordination of Froject activities and ensuring continued collaboration among units and agencies participating in the Project and for the timely implementation of annual operation plans. PIC shall be constituted by heads of project implementing units, chairpersons of the District Implementation Teams and the head of the National Population Commission. PIC's Chairman shall be the Chief Medical Officer who shall also serve as the Project Director responsible for the execution of the Project. (b) The Project Director shall be assisted by the PHC Coordinator and his staff who shall also serve as the Project Manager. The Project Manager shall be responsible for project procurement, disbursements and other project administrative functions. 3. District Implementation Teams (DITs) DITs shall be responsible for coordinating and implementing project activities in the project districts. A DIT shall be headed by the Principal Medical Officer and shall have as members the respective District Medical Officer, existing health advisers and other technical staff. - 22 - SCHEDULE 5 Special Account 1. For the purposes of this Schedule: (a) the term "eligible Categories" means Categories (1) through (4) set forth in the table in paragraph 1 of Schedule 1 to this Agreement; (b) the term "eligible expenditures" means expenditures 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 allocated from time to time to the eligible Categories in accordance with the provisions of Schedule 1 to this Agreement; and (c) the term "Authorized Allocation" means an amount equivalent to $300,000 to be withdrawn from the Credit Account and deposited in the Special Account pursuant to paragraph 3 (a) of this Schedule. 2. Except as the Association shall otherwise agree, payments out of the Special Account shall be made exclusively for eligible expenditures in accordance with the provisions of this Schedule. 3. After the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals of the Authorized Allocation and subsequent withdrawals to replenish the Special Account may be made as follows: (a) On the basis of a request or requests by the Borrower for a deposit or deposits which add up to the aggregate amount of the Authorized Allocation, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit in the Special Account such amount or amounts as the Borrower shall have requested. (b) The Borrower shall furnish to the Association requests for replenishment of the Special Account at such intervals as the Association shall specify. On the basis of such requests, the Association shall withdraw from the Credit Account and deposit into the Special Account such amounts as shall be required to replenish the Special Account with amounts not exceeding the amount of payments made out of the Special Account for eligible - 23 - expenditures. All such deposits shall be withdrawn by the Asso- ciation from the Credit Account under the respective eligible Categories, and in the respective equivalent amounts, as shall have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph 4 of this Schedule. 4. For each payment made by the Borrower out of the Special Account for which the Borrower requests replenishment pursuant to paragraph 3 (b) of this Schedule, the Borrower shall furnish to the Association, prior to or at the time of such request, such documents and other evidence as the Association shall reasonably request, showing that such payment was made for eligible expen- ditures. 5. (a) Notwithstanding the provisions of paragraph 3 of this Schedule, no further deposit into the Special Account shall be made by the Association when either of the following situations first arises: (i) the Association shall have determined that all further withdrawals should be made directly by the Borrower from the Credit Account in accordance with the provisions of paragraph (a) of Section 2.02 of this Agre:ement; or (ii) the total unwithdrawn amount of the Credit allo- cated to the eligible Categories, less the amount of any outstanding special commitment entered into by the Association pursuant to Section 5.02 of the General Conditions with respect to the Project, shall be equal to an amount equivalent to twice the amount of the Authorized Allocation. (b) Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocated to the eligible Categories shall follow such procedures as the Asso- ciation shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Association shall have been satisfied that all such amounts remaining on deposit in the Special Account as of the date of such notice have been or will be utilized in making payments for eligible expenditures. 6. (a) If the Association shall have determined at any time that any payment out of the Special Account: (i) was made for any -24- expenditure or in any amount not eligible pursuant to paragraph 2 of this Schedule, or ((i) was not justified by the evidence furnished pursuant to paragraph 4 of this Schedule, the Borrower shall, promptly upon notic6 from the Association deposit into the Special Account (or, if tl e Association shall so request, refund to the Association) an amount qual to the amount of such payment or the portion thereof not /4 0eligible or justified. No further deposit by the Association into the Special Account shall be made until the Borrower has made such deposit or refund. (b) If the Association shall have determined at any time that any amount outstanding in the Special Account will not be required to cover further payments for eligible expenditures, the Borrower shall, promptly upon notice from the Association, refund to the Association such outstanding amount for crediting to the Credit Account. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Development Association. FOR SECRETARY