Rwanda - Family Health Project : Credit 1678 - Credit Agreement - Conformed

OFFICIAL CREDIT NUMBER 1678 RW Development Credit Agreement (Family Health Project) between 0 RWANDESE REPUBLIC and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated 3 , 1986 CREDIT NUMBER 1678 RW DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated c t"' A 1986, between the RWANDESE REPUBLIC (the Bcrrower) aAd the INTERNATIONAL DEVELOP- MENT ASSOCIATION (the Association). WHEREAS 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 followsi ARTICLE I o General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Develop- ment Credit Agreements" of the Association, dated January 1, 1985, with the last sentence of Section 3.02 deleted (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 Section 2.02 (b) of this Agreement; (b) "Project Preparation Advance" means the project prepa- ration advance granted by the Association to the Borrower pur- suant to an exchange of letters dated September 18, 1984 and November 15, 1984 between the Borrower and the Association; (c) "MINISAPASO" means the Borrower's Ministry of Public Health and Social Affairs; and (d) "MINEPRISEC" means the Borrower's Ministry of Primary and Secondary Education. -2- 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 nine million eight hundred thousand Special Drawing Rights (SDR 9,800,000). Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of this Section and of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower aad 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 its Central 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 Schedufe 3 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 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, 1992 or such later date as the Association shall establish. The Asso- ciation 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 percent (1/2 of 1%) per annum on the principal amount f the Credit not with- drawn from time to time. The commitment charge shall accrue from -3- a date sixty days after the date of the Development Credit Agree- ment to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or shall be cancelled. (b) The commitment charge shall be paid: (i) at such places as the Association shall reasonably request; (ii) without re- strictions of any kind imposed by, or in the territory of, the Borrower; and (iii) in the currency specified in this Agreement for the purposes of Section 4.02 of the General Conditions or in such other eligible currency or currencies as may from time to time be designated or selected pursuant to the provisions of that Section. Section 2.05. The Borrower shall pay to the Association a service .harge at the rate of three-fourths of one percent (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 May 1 and November 1 in each year. Sectionj2.07. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each May 1 and November 1 commencing May 1, 1996, and ending November 1, 2035. Each installment to and including the installment payable on November 1, 2005, shall be one-half of one percent (1/2 of 1%) of such principal amount, and each installment thereafter shall be one and one-half percent (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. ARTICLE III Execution of the Project Section 3.01. 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 Parts A through C.1 and D of the Project through the MINISAPASO and Parts C.2 and C.3 of the Project through the MINEPRISEC with due diligence and efficiency and in conformity with appropriate administrative, financial, economic, technical and public health pract9ces, -4- and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. 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 shall be governed by the provisions of Schedule 4 to this Agreement. Section 3.03. By September 30 of each year of execution of the Project, the Borrower shall furnish to the Association for information its health sector investment program for the follow- ing year, such program to include the proposed budget for the carrying out of the Project for such year. Section 3.04. The Borrower shall, by April 30, 1987, furnish to the Association for comment the findings and recommendations of the study on the financing of public health currently being carried out Aith the assistance of the World Health Organization, together with the Borrower's proposal for the implementation of such recommendations. Section 3.05. (a) By September 30, 1986, the Pprrower shall appoint a full time chief for the MINISAPASO's Maternal and Child Health Division. (b) By December 31, 1986 the Borrower shall employ an additional training specialist for the MINISAPASO's Training Division. Section 3.06. By December 31, 1986, the Borrower shall provide to the Association for approval the locations of the five health centers to be constructed in addition to the 25 already identified for improvement under Part A.3 of the Project. Section 3.07. By December 31, 1987, the Borrower shall furnish to the Association for comment: (a) a proposal to improve the statistical health informa- tion system of the MINISAPASO; and (b) the proposal of the MINISAPASO for a career path for nurses aides (level A4). -5- ARTICLE IV Financial Covenants Section 4.01. (a) The Borrower shall maintain or cause to be maintained 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 audited for each fiscal year in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association; (ii) furnish to the Association, as soon as available, but in any case not later than six months after the end of each such year, a certified 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 re- cords and accounts reflecting such expenditures; (ii) retain, until at least one year after the comple- tion of the audit for the fiscal year in which the last withdrawal from the Credit Account or payment out of the Special Account was made, all records -6- (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 seprate 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 pro- ceeds of the Credit withdrawn or paid out of the Special Account in respect of 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 additional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 12.01 (b) of the General Conditions, namely, that the Borrower has employed or assigned to, for the Project a Project Coordinatoro an architect and an accountant,whose qualifications and experience are satis- factory to the Association. Section 5.02. The date one hundred twenty (120) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.03. The obligations of the Borrower under Arti- cle IV of this Agreement shall cease on the date on which the Development Credit Agreement shall terminate or on the date 15 years after the date of this Agreement, whichever shall be the earlier. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of the Borrower responsible for finance is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. I -7- Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministare des Finances et de l'Economie B.P. 158 Kigali Rwanda Cable address: Telex: MINIFINECO 502 MINAFFET 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) -8- 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. RWANDESE REPUBLIC By Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By Regional Vice President Eastern and Southern Africa -9- SCHEDUJLE Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to 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: 5,400,000 100% construction and rehabil- itation (2) Furniture, 1,170,000 100% of foreign equipment, expenditures medical and 80% of local supplie,s and expenditures vehicles (3) Consultants' 1,710,000 100% services, fellowships and training (4) Operating costs, 360,000 70% including per diem allowances for supervisors but excluding salaries (5) Refunding of 360,000 Amount due pur- Project Prepara- suant to Sec- tion Advance tion 2.02 (c) of this Agree- ment (6) Unallocated 800,000 TOTAL 9,800,000 - 10 - 2. If the amount all3cated to Category (5) above is in excess of the amount due, the excess will be reallocated to Cate- gory (6). 3. 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; 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. 4. Notwithstanding the provisions of paragraph 1 above, no withdrawals from the Credit Account or payments out of the Special Account shall be made in respect of payments for expenditures made prior to the date of this Agreement. - 11 - SCHEDULE 2 Description of the Project The objectives of the Project are to improve maternal and child health with particular emphasis on family planning within the national strategy for primary health care. 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: Strengthening of Family Health Services 1. Carrying out of an on-the-job training program for health center staff focused on primary health care, especially in family health. 2. Provision of essential medical supplies for the family health program. 3. Improvement of facilities and provision of materials and equipment for 30 health centers. Part B: Institutional Strengthening of MINISAPASO 1. Strengthening of the Maternal and Child Health Division of the MINISAPASO, including family planning and nu- trition services, through provision of training and fellowships, equipment, supplies and two vehicles (one 4-wheel-drive and one passenger car). 2. Strengthening of the Personnel Training Division through the employment of technical assistants, and the acquisition of additional equipment, teaching material and a minibus. 3. Strengthening of the Division of Studies and Evaluation through the employment of technical assistants, the provision of two fellowships for statisticians and the acquisition of office equipment, including a microcomputer, and a 4-wheel-drive vehicle. 4. Construction of eight regional offices and of thirteen housing units for the MINISAPASO and provision of -12- supplies and equipment and one 4-wheel-drive vehicle for each such office. Part C: Human Resources Development 1. Pre-service training of about 200 nurses' aides for health centers, including training of the trainers therefor. 2. Construction of two nursing schools and related housing for teaching staff, in Byumba and Kaduha. 3. Training of teachers for these nursing schools. Part D: Population Policy 1. Carrying out of a study on fa..tors influencing the acceptance and continued use of modern methods of contraception. 2. Carrying out of a study of under five and maternal mortality. The Project is expected to be completed by December 31, 1991. - 13 - SCHEDULE 3 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 I 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 accor- dance with the provisions of Schedule 1 to this Agreement; and (c) the term "Authorized Allocation" means an amount of $600,000 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 Speeial 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 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 expenditures. All such deposits shall be withdrawn by the Association from the Credit Account under the respective eligible - 14 - 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 Associatien 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 accor- dance with the provisions of paragraph (a) of Section 2.02 of this Agreement; or (ii) the total unwithdrawn amount of the Credit allo- cated to the eligible Categories, minus 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 the equivalent of twice the amount of the Authorized Allocation. (b) Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit allocate l to the eligible Categories shall follow such procedures as the Associa- tion 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 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 expenditure or in any amount not eligible pursuant to para- graph 2 of this Schedule; or (ii) was not justified by the - 15 - evidence furnished pursuant to paragraph 4 of this Schedule, the Borrower shall, promptly upon notice from the Association deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment or the portion thereof not so eligible 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. - 16 - SCHEDULE 4 Procurement and Consultants' Services Section I. Procurement of Goods and Works Part A. International Competitive Bidding 1. Except as provided in Part D hereof, goods and works 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. For the purpose of inviting bids and offers, similar or related items will be grouped in the largest practical lots to attract advantageous prices. 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 Rwanda may be granted a margin of preference in accordance with, and subject to, the provisions of paragraphs 2.55 anS 2.56 of the Guidelines and paragraphs 1 through 4 of Appendix 2 thereto. Part C. Preference for Domestic Contractors In the procurement of works in accordance with the proce- dures described in Part A.1 hereof, the Borrower may grant a margin of preference to domestic contractors in accordance with, and subject to, the provisions of paragraphs 2.55 and 2.56 of the Guidelines and paragraph 5 of Appendix 2 thereto. Part D. Other Procurement Procedures 1. Contracts for equipment and vehicles estimated after group- ing to cost the equivalent of $100,000 or less (in the aggregate not to exceed, without the prior approval of the Association, the equivalent of $1,000,000), as well as contracts for the construc- tion of health centers and regional offices, may be awarded on t',( basis of competitive bidding, (adjudications publiques) Luvertised locally in accordance with the Borrower's procedures. - 17 - 2. Contracts for equipment and furniture which cannot be grouped into lots of more than $25,000 equivalent may be nego- tiated with the lowest of at least three suppliers. Part E. 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 for furniture, equipment and materials estimated to cost the equivalent of $50,000 or more and with respect to any other contract estimated to cost the ,quivalent of $250,000 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 said paragraph 2 (d) 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 3 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 or pay- ments out of the Special Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with Section 4.01 (c) (ii) of this Agreement. 2. The figure of 15% is hereby specified for purposes of para- graph 4 of Appendix 1 to the Guidelines. - 18 - Section II. Employment of Consultants In order to assist the Borrower in carrying out the Project, the Borrower shall employ management, technical, architectural and training consultants and experts, whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Association. Such consultants shall be selected in accordance with principles and procedures satisfac- tory 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. 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 2 1 day of 198 . FORSECRETARY 0