Conformed Copy - C1884 - Municipal and Housing Development Project - Contribution Agreement

Page 1 CANADIAN CONTRIBUTION RELATED TO CREDIT NUMBER 1884 SE Contribution Agreement BETWEEN THE GOVERNMENT OF CANADA FOR THE MUNICIPAL AND HOUSING DEVELOPMENT PROJECT (SENEGAL) AND INTERNATIONAL DEVELOPMENT ASSOCIATION Dated September 14, 1988 CONTRIBUTION AGREEMENT The Contribution Agreement made in duplicate on this day of September 14, 1988. BETWEEN: The Government of Canada herein represented by the Secretary of State for External Affairs, acting through the Canadian International Development Agency (hereinafter referred to as "CIDA"), AND: The International Development Association (hereinafter referred to as the "Association"). WHEREAS the Association is financing a project entitled the "Municipal and Housing Development Project" in the Republic of Senegal which includes a municipal management component and a housing component. WHEREAS CIDA has informed the Association that it desires to participate in the Municipal and Housing Development Project (hereinafter called "Agreement") between the Association and CIDA is to set out the terms and conditions concerning the administration of such contribution and the implementation of the Project; ARTICLE I Section 1.01 CIDA hereby appoints the Association as Administrator of a contribution of funds in the amount of two million seven hundred thirty-two thousand three hundred and forty United States dollars (US$2,732,340) (hereinafter referred to as "the Contribution") in the following manner: Page 2 a) upon the entry into force of this Agreement, and based on a cash flow forecast for the first month of the Project, CIDA shall deposit an amount of one hundred thousand United States dollars (US$100,000.) in an account maintained with the Bank of Canada in the name of the Association (hereinafter referred to as the Account). b) subsequent advances of up to five hundred thousand United States dollars (US$500,000 .) will be made by CIDA on a monthly basis conditional upon receipt of a cash forecast statement estimating funds required for the following month. C) no more than two advances will remain outstanding at any one time, and at no time shall the total amount of the advances available in the Account exceed seven hundred eighty thousand United States dollars (US$780,000.). d) the Association may invest the funds pending their disbursement. The income therefore shall be added to the Account and thereafter be available for the same purpose as said funds. The Association will disburse or arrange for the disbursement of such funds to pay for goods or services eligible for financing and, for this purpose, the Association may exchange the funds in the Account for other currencies. Section 1.02 It is understood between CIDA and the Association that a portion of the Contribution in an amount of twenty-seven thousand three hundred and twenty-four United States Dollars (US$27,324.) will be utilized for the reimbursement of the Project supervision and support services rendered by the Association. CIDA authorizes the Association to transfer to itself, as and when needed, appropriate amounts to reimburse for such activities. Section 1.03 If unforeseen increases in expenditures or commitments are expected or realized (whether due to inflationary factors, fluctuation in exchange rates or unforeseen contingencies) the Association shall notify CIDA, in writing, of this fact, and of the estimated amount of the increases in expenditures or commitments, as soon as possible. CIDA will consider whether it will agree to increase its contribution to the Project to cover such increases in expenditures or commitments. Section 1.04 Whenever the events described in Section 1.03 of this Agreement occur, and an additional contribution is not forthcoming, CIDA and the Association may agree to reduce the scope of, suspend or terminate this Agreement. Section 1.05 The personnel to be engaged to perform services required by the Project shall be Canadian or Senegalese. In the event that a Senegalese firm is selected, CIDA will need to provide its agreement before contract signature with this society. ARTICLE II Section 2.01 Page 3 The Contribution shall be administered by the Association for the purpose of meeting the costs of the Project as set out in Annex A. Section 2.02 The Association shall disburse from the Account such amounts as from time to time shall be needed to meet the reasonable costs of goods and services financed or to be financed for the purposes of the Project. Such disbursements shall be effected in accordance with the Association's normal procedures. Section 2.03 The Association, as Administrator on behalf of Canada, shall have the sole responsibility for the supervision of the Project and shall keep CIDA regularly informed of the progress of the Project. Section 2.04 The Association shall exercise the same care in the discharge of its functions under this Agreement as it exercises with respect to the administration and management of its own affairs and shall have no further responsibility to CIDA in respect thereof. Section 2.05 The Association shall enter into such arrangements with the Republic of Senegal as are necessary to ensure the successful implementation of the Project. Section 2.06 The Association may open a special account in Dakar. ARTICLE III Section 3.01 The Association shall: (a) maintain separate records and accounts in respect of the funds in the Account and those disbursed by the Association pursuant to the provisions of this Agreement, and the Association shall furnish quarterly to CIDA a statement of account on such records and accounts; and (b) cause such accounts and records to be audited and certified by the Association's external auditors for each fiscal year that funds shall remain in the Account and shall furnish the report of such audit by said auditors to CIDA. ARTICLE IV Section 4.01 This Agreement shall become effective as of the date first above written and, subject to the provisions of this Article, shall continue in effect until all disbursements to Senegal have been made from the Account. Section 4.02 If at any time it appears to either party that the purposes of this Agreement can no longer effectively or appropriately be carried out, this Agreement may be terminated at the initiative of such party ninety (90) Page 4 days after giving notice in writing to that effect. Section 4.03 If at any time it appears that funds of the Contribution were not used appropriately for the purposes of the Project, CIDA may withhold further payments and cancel an equivalent amount from the Contribution. Section 4.04 Notwithstanding the termination or completion of this Agreement, the Association shall continue to hold unutilized funds of the Contribution until the earlier of: the satisfaction of all commitments incurred for the -Project prior to the date of termination or completion of this Agreement; or the filing of the report required under Section 4.05 of this Agreement. Section 4.05 Promptly after termination of this Agreement, the Association shall furnish to CIDA a final report and a financial statement on the Account, together with an opinion of the Association's external auditors on such statement. Section 4.06 All unutilized funds of the Contribution shall be returned by the Association, through CIDA, to the Receiver General of Canada. ARTICLE V Section 5.01 This Agreement may be amended only by written agreement of the parties hereto. Section 5.02 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 or telex 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 addresses as such party shall have designated by notice to the party giving such notice or making such request. The addresses so specified are: For CIDA: Canadian International Development Agency 200 Promenade du Portage Hull, Quebec Canada KIA OG4 Telex: 053-4140 For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Page 5 INDEVAS Washington, D.C. Telex: 440098 (ITT) 248423 (RCA) or 64145 (WUI) ARTICLE VI Section 6.01 This Agreement together with Annex A, which forms an integral part hereof, constitute the entire Agreement between CIDA and the Association w3ith respect to the Project. ARTICLE VII Section 7.01 No member of the Canadian House of Commons shall be admitted to any share or part of this Agreement or to any benefit to arise therefrom. Section 7.02 This Agreement shall not be assigned by the Association without the prior consent of CIDA. Section 7.03 Any payment to be made by CIDA under this Agreement is subject to there being an appropriation by Parliament for the fiscal year in which the payment is to be made. IN WITNESS WHEREOF, the undersigned, have signed the present Agreement in duplicate. For the GOVERNMENT OF CANADA /s/ Pierre Racicot Canadian International Development Agency Name Pierre Racicot Title Vice-president Date 30/06/88 For the INTERNATIONAL DEVELOPMENT ASSOCIATION /s/ Michael J. Gillette Name: Michael J. Gillette Title: Acting Regional Vice President, Africa Date: September 14, 1988 ANNEX A DESCRIPTION OF THE PROJECT The Project The objectives of the Municipal and Housing Development Project are to improve the resources and the efficiency of metropolitan Dakar's local overpayments in policy Page 6 making related to service delivery and urban investment, and to expand the economic impact and efficiency of the housing sector through an expansion of BHS's activities and through the increased supply of serviced and titled plots. 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: Municipal Credit Fund Provision of Sub-Loans to local governments for the financing of income generating projects. Part B: Strengthening CUD's Technical Department 1. Acquisition of civil work equipment and vehicles needed for infrastructure maintenance; 2. Rehabilitation, including extension and remodelling, of buildings of the technical- services; 3. Technical assistance; 4. Short term and long term training programs for selected key staff members; and 5. Rehabilitation of about 25 schools, 165 public latrines, eight health facilities and three administrative field offices of CUD. Part C: Traffic and Public Transport Management in Dakar 1. Technical assistance to the Traffic Bureau (Bureau de la Circulation) 2. Rehabilitation of CUD's main collector roads (68 km) including: (a) reconstruction of about 33 km of roads; (b) resurfacing of about 28 km of roads; and (c) minor repairs on about 7 km of roads. 3. Implementation of a traffic management plan in the central Dakar area (Plateau), including: (a) repairs and remodeling work on selected street sections and junctions: (b) installation of street lighting; (c) installation of traffic signals; and (d) establishment of parking lots. 4. Improvement of key junctions and selected sections of the national urban road network in metropolitan Dakar, including: (a) road remodeling and repairs; (b) construction of sidewalks; (c) installation of street lightings; and Page 7 (d) installation of traffic signals. Part D: Municipal Resource Mobilization 1. Establishment of a fiscal cadastre for the territories of the three communes of the Dakar region. 2. Computerization of the data base of the fiscal cadastre and improvement of the computerized processing of the tax billing for the territories of the three communes of the Dakar region, and acquisition of computer equipment and software therefor. Part E: Housing Component 1. A program of land development for servicing and titling approximately 1,800 plots annually. 2. A program of housing loans for very low cost, low cost and medium standard housing as defined in Section 2.01(c) (i) of the BHS Project Agreement. * * * * * The Project is expected to be completed by June 30, 1994. II. The purpose of CIDA's contribution CIDA's contribution will be utilized to finance the technical assistance components of the above Project. Technical assistance will be provided to the Communaute Urbaine de Dakar (CUD) for strengthening temporarily a few key positions in CUD's technical department in order to allow immediate effectiveness of functions which relate "inter alia" to execution of parts B(l), B(2) and B(5) of the Project and for on-the-job training of permanent staff in charge of these function. Technical assistance will also be provided to the Traffic Bureau (Bureau de la Circulation). Experts will provide technical supervision and assistance for implementation of parts C(2), C(3) and C(4) of the Project. Technical assistance and consultant services will also be provided to the Ministry in charge of finance (Direction du Cadastre) as needed for implementation of part D of the Project. III. The Budget The following allocation of funds is tentative. a) Technical Assistance and Consultant Services US$ - to CUD's Technical Department Engineer $ 319,800 Mechanic $ 280,000 Technician $ 240,200 Sub-Total $ 840,000 - to the Traffic Bureau Engineers $1,120,000 - to the Direction du Cadastre Technical assistance $ 167,000 Consultants $ 99,800 Training $ 99,800 Page 8 Sub-Total $ 366,600 b) Contingencies Physical contingencies $ 190,416 Price contingencies $ 188,000 Sub-Total $ 378,416 c) IDA supervision $ 27,324 TOTAL $2,732,340