Conformed Copy - C1979 - Agricultural Services Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 1979 BUR (Agricultural Services Project) between BURKINA FASO and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated January 28, 1989 CREDIT NUMBER 1979 BUR DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated January 28, 1989, between BURKINA FASO (the Borrower) and INTERNATIONAL DEVELOPMENT 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 follows: ARTICLE I Page 2 General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Development 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 and in the Preamble to this Agreement have the respective 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 including any sub-accounts of said account opened by the Borrower in respect of the Project; (b) "MACP" means Ministere de l'Action Cooperative Paysanne, the Ministry of Rural Affairs of the Borrower; (c) "MAE" means Ministere de l'Agriculture et l'Elevage, the Ministry of Agriculture and Livestock of the Borrower; (d) "CAPU" means the Central Accounting and Procurement Unit to be established within DAAF/MAE and referred to in Section II of Schedule 5 to this Agreement; (e) "CFFA" means Centre de Formation des Formateurs des Agriculteurs, any of the Training Center for Farmers' Trainers of the Borrower; (f) "CFJA" means Centre de Formation des Jeunes Agriculteurs, any of the Training Centers for Young Farmers of the Borrower; (g) "CRPA" means Centre Regional de Promotion Agro-Pastorale, any of the external service Directorates of MAE established as a public enterprise pursuant to its statutes approved by Kiti No. An V 0292/FP/AGRI/EL of the Borrower, dated June 30, 1988; (h) "DAAF" means Direction des Affaires Administratives et Financieres, the Directorate for Administrative and Financial Affairs of MAE and MACP, respectively; (i) "DEFOC" means Direction de l'Education et de la Formation Cooperative, the Directorate for Cooperative Education and Training of MACP; (j) "DEP" means Direction des Etudes et de la Planification, the Directorate for Studies and Planning of MAE and MACP, respectively; (k) "DPIA" means Direction de la Production et des Industries Animales, the Directorate for Animal Production and Industry of MAE; (l) "DVA" means Direction de la Vulgarisation Agricole, the Directorate for Agricultural Extension of MAE; (m) "GJA" means Groupement des Jeunes Agriculteurs, any of the voluntary organizations of young farmers in the territory of the Borrower; (n) "GV" means Groupement Villageois, any of the voluntary farmers' organizations operating in the territory of the Borrower; (o) "INA" means Institut National d'Alphabetisation, the National Literacy Institute established within the Ministry of Basic Education and Mass Literacy of the Borrower (MEBAM); (p) "INERA" means Institut d'Etudes et de Recherches Agricoles, the Agricultural Research Institute established within the Ministry of Secondary and Higher Education and Scientific Research of the Borrower (MESSRS); (q) "IRBET" means Institut de Recherches en Biologie et Ecologie Tropicale, Page 3 the Research Institute for Tropical Biology and Ecology established within MESSRS; (r) "LNV" means Laboratoire National Veterinaire, the National Veterinary Laboratory, established within MAE; (s) "ONAVET" means Office National d'Approvisionnement et de Distribution des Intrants Zootechniques et Veterinaires, the National Office for Veterinary Inputs, an Etablissement Public a Caractere Industriel et Commercial of the Borrower established pursuant to Kiti No. An VI 0017/FP/AGRI/EL, dated September 16, 1988; (t) "PAPEM" means Point d'Appui de Prevulgarisation et d'Experimentation Multi-locale, a part of any of the units for adaptive research of the Borrower, operating under the CRPAs' management; (u) "PRSAP" means the Borrower's project to strengthen extension services to producers; (v) "SAF" means Service Administratif et Financier, any of the administrative and financial services of MAE's Directorates; (w) "SMS" means any of the subject matter specialists in every province of the Borrower responsible, among other things, for the provision of training to extension workers and supervisors; (x) "Project Preparation Advance" means the project preparation advance granted by the Association to the Borrower pursuant to an exchange of letters, dated May 7, 1987, and June 15, 1987, between the Borrower and the Association; (y) "CFAF" means the currency of the Borrower; and (z) "fiscal year" means the Borrower's fiscal year which runs from January 1 to December 31. ARTICLE II The Credit Section 2.O1. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to thirty-one million two hundred thousand Special Drawing Rights (SDR 31,200,000). Section 2.O2. (a) The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement 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 CFAF a special account in a commercial bank in the name of PRSAP 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 4 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.O3. The Closing Date shall be December 31, 1994 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.04. (a) The Borrower shall pay to the Association a commitment charge on the principal amount of the Credit not withdrawn from time to time at a rate to be Page 4 set by the Association as of June 30 of each year, but not to exceed the rate of one-half of one percent (1/2 of 1%) per annum. (b) The commitment charge shall accrue: (i) from a date sixty days after the date of this Agreement (the accrual date) to the respective dates on which amounts shall be withdrawn by the Borrower from the Credit Account or cancelled; and (ii) at the rate set as of the June 30 immediately preceding the accrual date or at such other rates as may be set from time to time thereafter pursuant to paragraph (a) above. The rate set as of June 30 in each year shall be applied as of the next payment date in that year specified in Section 2.06 of this Agreement, except that the rate set as of June 30, 1988 shall be applied as of July 1, 1988. (c) 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.O5. The Borrower shall pay to the Association a service charge 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 February 15 and August 15 in each year. Section 2.07. (a) Subject to paragraphs (b) and (c) below, the Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each February 15 and August 15, commencing February 15, 1999 and ending August 15, 2028. Each installment to and including the installment payable on August 15, 2008 shall be one percent (1%) of such principal amount, and each installment thereafter shall be two percent (2%) of such principal amount. (b) Whenever: (i) the Borrower's gross national product per capita, as determined by the Association, shall have exceeded $790 in constant 1985 dollars for five consecutive years; and (ii) the Bank shall consider the Borrower creditworthy for Bank lending, the Association may, subsequent to the review and approval thereof by the Executive Directors of the Association and after due consideration by them of the development of the Borrower's economy, modify the terms of repayment of installments under paragraph (a) above by requiring the Borrower to repay twice the amount of each such installment not yet due until the principal amount of the Credit shall have been repaid. If so requested by the Borrower, the Association may revise such modification to include, in lieu of some or all of the increase in the amounts of such installments, the payment of interest at an annual rate agreed with the Association on the principal amount of the Credit withdrawn and outstanding from time to time, provided that, in the judgment of the Association, such revision shall not change the grant element obtained under the above-mentioned repayment modification. (c) If, at any time after a modification of terms pursuant to paragraph (b) above, the Association determines that the Borrower's economic condition has deteriorated significantly, the Association may, if so requested by the Borrower, further modify the terms of repayment to conform to the schedule of installments as provided in paragraph (a) above. Section 2.O8. The currency of the French Republic is hereby specified for the purposes of Section 4.O2 of the General Conditions. ARTICLE III Execution of the Project Section 3.O1. (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: (a) Parts A, B, D, E and F of the Project through MAE; and (b) Part C of the Project through MACP with due diligence and efficiency and in conformity with appropriate administrative, financial and agricultural practices, and shall provide, Page 5 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 and, except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement and to that effect shall take all necessary measures to enforce: (i) the Protocoles d'Accord entered into between: (A) DVA/MAE and INERA, for the purposes of carrying out Parts A.2 and A.3 of the Project; and (B) ONAVET and DPIA/MAE for the purposes of carrying out Part B.2 of the Project; and (ii) the accords fonctionnels entered into between: (A) INA and DEFOC, for the purposes of carrying out Part C of the Project; and (B) DVA/MAE and other ministries/agencies responsible for training of extension staff. Section 3.O2. 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 3 to this Agreement. Section 3.03. The Borrower shall: (a) not later than September 30, 1989, exchange views with the Association on the cost structure applicable to the distribution of veterinary products to livestock owners by the CRPAs; (b) not later than December 31, 1989, prepare and furnish to the Association, for its review and comments, a draft agreement, to be entered into between ONAVET and the CRPAs, setting forth their respective obligations to carry out the distribution of veterinary products and animal feed, including, inter alia, the payment, by ONAVET to the CRPAs, of at least 50% of the difference between the price of acquisition and resale of the veterinary products distributed by the CRPAs; and (c) not later than March 31, 1990, take all measures necessary to finalize the agreement, referred to in paragraph (b) of this Section, taking into account the recommendations made by the Association. Section 3.04. The Borrower shall: (a) not later than September 30, 1989, prepare and furnish to the Association, for its review and comments, a draft detailed first year's training program for MAE and MACP staff; and (b) promptly thereafter, implement said training program, taking into consideration the recommendations made by the Association. Section 3.05. The Borrower shall: (a) not later than May 31 of each year, conduct with the Association Project implementation reviews to: (i) discuss annual Project evaluations carried out upon request of the Project Coordinator in accordance with the provisions of Section I, paragraphs 2 (h) of Schedule 5 to this Agreement; (ii) monitor progress made in achieving Project objectives, in particular: design of training programs for MAE and MACP staff; Page 6 preparation of work programs and budgets (for DVA, DPIA and DEFOC) consolidated by CAPU; and design and approval of pilot operations to be implemented for the purposes of carrying out Parts D.2 and D.3 of the Project; (iii) exchange information among staff responsible for Project implementation and propose solutions to any current problems; and (iv) update Project timetables and cost estimates; and (b) promptly thereafter, carry out those recommendations arising out of said reviews, as agreed between the Borrower and the Association. Section 3.06. The Borrower shall: (a) not later than December 31, 1991, conduct, with the Association and other donor agencies participating in the financing of the PRSAP, a mid-term review of progress achieved in the implementation of the Project; and (b) promptly thereafter, implement the findings and recommendations of said mid-term review. Section 3.07. The Borrower shall take all measures necessary to ensure that all staff having received training abroad, financed under the Project, remain in their assignments until a suitable replacement is appointed. Section 3.08. The Borrower shall cause the CRPAs to enter into Cahiers de Charge with the respective GVs and producers' associations to carry out the construction program referred to in Parts A.1 (b) (ii) and B.1 (b) (ii) of the Project. Section 3.09. The Borrower shall maintain CAPU during the execution of the Project, with such functions and staff as are specified in Schedule 5, Section II to this Agreement. ARTICLE IV Financial Covenants Section 4.O1. (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 records and accounts referred to in paragraph (a) of this Section, including those for the Special Account 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, 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 said records, accounts and the audit thereof 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, records and accounts reflecting such expenditures; Page 7 (ii) retain, until at least one year after the Association has received 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 records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. ARTICLE V Remedies of the Association Section 5.01. Pursuant to Section 6.O2 (h) of the General Conditions, the following additional events are specified: (a) Kiti No. An V-0173/FP/AGRI-EL of the Borrower, dated April 6, 1988; Kiti No. An VI-0101/FP/MACP of the Borrower, dated November 24, 1988; and Kiti No. An V-292/FP/AGRI-EL of the Borrower, dated June 30, 1988 shall have been amended, suspended, abrogated, repealed or waived so as to affect materially and adversely the ability of the Borrower to carry out the Project; and (b) The Borrower or any other authority having jurisdiction shall have taken any action concerning the Borrower's agricultural support services policies, the dissolution of MAE, MACP, the CRPAs or for the supervision of their operations that would materially and adversely affect the objectives of the Project. Section 5.02. Pursuant to Section 7.01 (d) of the General Conditions, the following additional events are specified, namely, that any of the events specified in paragraphs (a) or (b) of Section 5.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Association to the Borrower. ARTICLE VI Effective Date; Termination Section 6.01. 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: (a) the Central Accounting and Procurement Unit (CAPU) has been legally established within DAAF/MAE and its staff have been appointed in accordance with the provisions of Section II of Schedule 5 to this Agreement; (b) DVA/MAE has entered into written working agreements (Protocoles d'Accord) with INERA and IRBET, respectively, to ensure the participation of said Institutes in the training of SMSs; and (c) tenancy of the land assigned to the PAPEMs for the execution of Part A.3 (a)(ii) of the Project has been legally attributed to MAE (Titre de jouissance). Section 6.02. 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 6.03. The obligations of the Borrower under Section 3.07 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on the date 10 years after the date of this Agreement, Page 8 whichever shall be the earlier. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of Planning and Cooperation of the Borrower is designated as representative of the Borrower for the purposes of Section 11.O3 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere du Plan et de la Cooperation B. P. 7050 Ouagadougou Burkina Faso Cable address: Telex: SEGEGOUV 5555 BF Ouagadougou For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 2O433 United States of America Cable address: Telex: INDEVAS 44OO98 (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 Ouagadougou, Burkina Faso, as of the day and year first above written. BURKINA FASO By /s/ Youssouf Ouedraogo Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Edward V.K. Jaycox Regional Vice President Africa 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: Page 9 Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil Works 3,500,000 100% (2) (a) Motor vehi- 4,700,000 100% cles, motor- cycles and mobylettes (b) Goods, equip- 2,300,000 100% ment, furniture, and micro- computers (3) Building materials: (a) under Part A.1 1,200,000 100% (b)(ii) of the Project (b) under Part B.1 700,000 100% (b)(ii) of the Project (4) Training and 2,800,000 100% consultants' and specialists' services, including auditors (5) (a) Studies under 200,000 100% Parts D.1 and D.3 of the Project (b) Pilot opera- 200,000 100% tions under Part D.2 of the Project (6) Operating 10,600,000 100% costs (7) Incremental 2,100,000 50% salaries for staff of the Project (8) Refunding of 560,000 Amount due pur- Project Prepara- suant to Section tion Advance 2.02 (c) of this Agreement (9) Unallocated 2,340,000 _________ TOTAL 31,200,000 2. For the purposes of this Schedule, the term "operating costs" means: Page 10 (a) cost of operation and maintenance of equipment, motor vehicles, motorcycles, mobylettes and buildings used in the execution of the Project; and (b) other operating expenditures related to the implementation of the Project as determined in agreement by the Borrower with the Association. 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: (a) payments made for expenditures prior to the date of this Agreement; (b) expenditures under Category (3) (a) unless the Association shall be satisfied with model construction plans for staff houses under Part A of the Project; (c) expenditures under Category 3 (b) unless the Association shall be satisfied with model construction plans for staff houses and vaccination yards under Part B of the Project; and (d) expenditures under Category 5 (b) unless the Association shall have approved the pilot operation to be financed. SCHEDULE 2 Description of the Project The objectives of the Project are to: (a) improve the effectiveness and impact of agricultural and livestock extension services in transferring technology to farmers; (b) strengthen animal health services and adaptive research programs; and (c) provide functional literacy training to farmers, thereby enhancing their ability to participate more directly in technology generation and dissemination. 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: Agricultural Extension 1. Reorganization and strengthening of national, regional and provincial extension institutions: (a) at the national and regional level: (i) implementation nationwide of the results of the Pilot Program for the Strengthening of Extension Services (OTRVA); and (ii) acquisition of about 68 four-wheel-drive vehicles for the CRPAs and DVA, office supplies and equipment; and (b) at the provincial level: (i) acquisition of about 300 motorcycles and 1400 mobylettes; (ii) construction of about 400 houses for extension workers; (iii) provision of office supplies and equipment for extension staff; and (iv) hiring of 30 new extension agents. 2. Development and implementation of a training program for extension staff at all levels: (a) equipping of the Matourkou training center; and Page 11 (b) provision of: (i) complementary training for about 300 extension agents to be admitted into the civil service; (ii) annual retraining and regular bimonthly training for extension agents and their supervisors; (iii) local training at the research stations for about 150 SMSs, provincial extension service heads and their assistants; (iv) instructional visits by GV representatives to research stations, PAPEMs and other GVs; and (v) participation in seminars, study sessions and training abroad by senior extension staff. 3. Adaptive Research: Improvement of the links between agricultural research and extension by strengthening the adaptive research units, including: (a) rehabilitation of the PAPEM network: (i) carrying out topographic and reconnaissance soil surveys for new sites; (ii) carrying out civil works and preparation of 20 ha of land at nine PAPEMs; (iii) provision of draft animals and agricultural equipment; (iv) acquisition of about two motor vehicles, 34 motorcycles, 68 mobylettes, materials, office furniture and supplies; and (v) exchange visits to other PAPEMs and training for PAPEM staff. (b) Strengthening of the Adaptive Research program: (i) establishment of 12 regional adaptive research units within the CRPAs; (ii) acquisition of vehicles, materials, office furniture and supplies for the national and regional adaptive research units; and (iii) overseas training for senior adaptive research staff. 4. Mass Communication and Audio-Visual Program: Improvement of the mass communication and audio-visual capabilities of the extension services: (a) At the national level, strengthening of DVA's Mass Communication Services' capabilities to produce didactic and technical extension materials. (b) At the regional level: (i) strengthening and/or establishment of about 12 regional mass communication and audio-visual units; (ii) acquisition of basic equipment and materials to be used by SMSs in training extension workers and farmers; (iii) acquisition of about 20 four-wheel-drive vehicles, materials, equipment and materials for the 12 regional audio-visual units; and Page 12 (iv) training for senior staff of these units in audio-visual techniques. Part B: Livestock Services 1. Strengthening of livestock services at the national and regional levels: (a) At the national level: (i) revision of the animal health regulatory framework to produce guidelines encouraging private veterinary practices; and (ii) establishment of an interservice documentation center, located in DPIA. (b) At the regional level: (i) refurbishing, furnishing and equipping of about 42 livestock posts, 50 offices and 20 stores for drugs, inputs and animal feeds; (ii) construction of about 42 staff houses and 100 cattle vaccination yards; (iii) rehabilitation of about 100 existing livestock posts and other infrastructure; and (iv) acquisition of about 20 vehicles, 400 motorcyclces, equipment and furniture. 2. Improvement of the distribution system of veterinary supplies, drugs and animal feeds: (a) construction and equipping of a virology unit at LNV in Ouagadougou and acquisition of about two vehicles; (b) construction and equipping of LNV field diagnostic units at Bobo-Dioulasso and Fada Ngourma; (c) equipping of the existing LNV field diagnostic units at Ouahigouya and Tenkodogo and acquisition of about six vehicles for the four LNV field diagnostic units; (d) strengthening the production and distribution of animal feeds carried out by ONAVET; and (e) rehabilitation of facilities in Bobo-Dioulasso for a local branch of ONAVET. 3. Development and implementation of training programs for livestock services' staff at all levels. Part C: Functional literacy 1. Rehabilitation of about 70 CFJAs and equipping of about 177 CFJAs. 2. Rehabilitation of the three CFFAs at Kamboinse and Farako-Ba and acquisition of books and materials for their libraries. 3. Acquisition of about four motor vehicles for headquarters staff, and of about 30 motorcycles and 20 mobylettes for regional staff of MACP. 4. Provision of functional literacy training for newly literate individuals and members of GJAs. 5. Training of regional MACP heads, extension workers, trainers and support staff. 6. Strengthening of DEFOC's capacity in determining specific training needs and Page 13 training programs, and carrying out literacy programs. Part D: Studies and Pilot Operations 1. Carrying out studies on other services that would support or complement the agricultural and livestock services, including, inter alia: input supply, credit, appropriate mechanical technology or marketing. 2. Implementation of pilot operations for the design and preparation of future projects within the agricultural services sector. 3. Preparation of a further phase of PRSAP. Part E: Monitoring and Evaluation 1. Establishment or strengthening and operation of: (a) the Monitoring and Evaluation Service within DVA; (b) the regional monitoring team within each CRPA; and (c) the Statistics Service within DEP/MAE. 2. Acquisition of about 28 motor vehicles, 160 mobylettes, 48 motorcycles, basic equipment and microcomputers for DVA and the CRPAs. Part F: Strengthening MAE's Administrative and Managerial Capabilities 1. Installation and operation of a central computerized management and accounting system. 2. Establishment and strengthening of CAPU. 3. Provision of management training for CRPA directors. * * * The Project is expected to be completed by June 30, 1994. 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: (a) goods estimated to cost the equivalent of $100,000 or more; and (b) works estimated to cost the equivalent of $300,000 or more 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 the procurement of vehicles shall be grouped in bid packages estimated to cost the equivalent of $500,000 or more each. Part B: Preference for Domestic Manufacturers In the procurement of goods in accordance with the procedures described in Part A.1 hereof, goods manufactured in Burkina Faso 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. Local competitive bidding: Page 14 (a) Goods estimated to cost between the equivalent of $50,000 and $100,000 per contract, up to an aggregate amount not to exceed the equivalent of $500,000; and (b) civil works not exceeding the equivalent of $300,000 per contract may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. 2. International or Local Shopping: Items or groups of items estimated to cost less than the equivalent of $50,000 per contract, up to an aggregate amount not to exceed the equivalent of $300,000, may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers eligible under the Guidelines in accordance with procedures acceptable to the Association. 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 estimated to cost the equivalent of $100,000 or more, the procedures set forth in paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contracts 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 preceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contracts 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 4 to this Agreement. (c) The provisions of the preceding subparagraphs (a) and (b) shall not apply to contracts on account of which the Association 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 Agreement. 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 the execution of the Project, the Borrower shall employ consultants 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 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. SCHEDULE 4 Special Account 1. For the purposes of this Schedule: (a) the term "Eligible Categories" means Categories (1) through (7) 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 Page 15 (c) the term "Authorized Allocation" means an amount equivalent to SDR 3,000,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 3 (a) of this Schedule. 2. 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 shall be made as follows: (a) For withdrawals of the Authorized Allocation, the Borrower shall furnish to the Association a request or requests for a deposit or deposits which do not exceed the aggregate of the Authorized Allocation. On the basis of such request or requests, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount or amounts as the Borrower shall have requested. (b) (i) For replenishment of the Special Account, the Borrower shall furnish to the Association requests for deposits into the Special Account at such intervals as the Association shall specify. (ii) Prior to or at the time of each such request, the Borrower shall furnish to the Association the documents and other evidence required pursuant to paragraph 4 of this Schedule for the payment or payments in respect of which replenishment is requested. On the basis of each such request, the Association shall, on behalf of the Borrower, withdraw from the Credit Account and deposit into the Special Account such amount as the Borrower shall have requested and as shall have been shown by said documents and other evidence to have been 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 Categories, and in the respective equivalent amounts, as shall have been justified by said documents and other evidence. 4. For each payment made by the Borrower out of the Special Account, the Borrower shall, at such time as the Association shall reasonably request, furnish to the Association such documents and other evidence showing that such payment was made exclusively for Eligible Expenditures. 5. Notwithstanding the provisions of paragraph 3 of this Schedule, the Association shall not be required to make further deposits into the Special Account: (a) if, at any time, the Association shall have determined that all further withdrawals should be made by the Borrower directly from the Credit Account in accordance with the provisions of Article V of the General Conditions and paragraph (a) of Section 2.02 of this Agreement; or (b) once the total unwithdrawn amount of the Credit allocated 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 equal the equivalent of twice the amount of the Authorized Allocation. 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 Association 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 an expenditure or in an amount not eligible pursuant to paragraph 2 of this Schedule; Page 16 (ii) was not justified by the evidence furnished to the Association, the Borrower shall, promptly upon notice from the Association: (A) provide such additional evidence as the Association may request; or (B) 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. Unless the Association shall otherwise agree, no further deposit by the Association into the Special Account shall be made until the Borrower has provided such evidence or made such deposit or refund, as the case may be. (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. (c) The Borrower may, upon notice to the Association, refund to the Association all or any portion of the funds on deposit in the Special Account. (d) Refunds to the Association made pursuant to paragraphs 6 (a), (b) and (c) of this Schedule shall be credited to the Credit Account for subsequent withdrawal or cancellation in accordance with the relevant provisions of this Agreement, including the General Conditions. SCHEDULE 5 Implementation Program I. Project Coordinator 1. To ensure the coordination of the Project, a coordinator shall be nominated at the central level within MAE. The coordinator shall have the authority and experience compatible with the management requirements of this national, multi-disciplinal Project. He may delegate part of his daily management functions. 2. The Project Coordinator shall be responsible, inter alia, for the following: (a) liaising with the managers in charge of Project implementation; (b) liaising, as necessary, with ministries and other institutions to ensure smooth Project implementation; (c) liaising with the Burkinabe authorities, the Association and other donor agencies; (d) supervising and monitoring the use of Project funds; (e) presiding over an interministerial committee in charge of reviewing and approving budgets, work programs, and annual reports prepared by CAPU and by the implementing agencies; (f) monitoring whether tenders for the procurement of goods and services, prepared by CAPU, are in accordance with regulations; (g) supervising and monitoring the execution of the agreements entered into between agencies involved in Project implementation and mediating in case of disagreement among them; (h) having annual Project evaluations carried out to assess the performance of implementing agencies and identify any current problems in Project implementation; (i) organizing regular meetings among CRPA directors, and monitoring the preparation by CAPU and DEP/MAE of management training programs for those directors; Page 17 and (j) organizing a Project start-up seminar for all managers and accountants involved in Project implementation in order to inform them of Project objectives, accounting, procurement and monitoring procedures. II. Central Accounting and Procurement Unit (CAPU) 1. CAPU, to be established within DAAF/MAE, shall have the following functions: (a) centralize and consolidate Project-related accounts and financial documents, and more precisely: (i) coordinate the preparation of budgets, and other accounting and financial statements by implementing agencies, and consolidate them before submitting them to the Association for comments; (ii) prepare end-of-year Project balance sheets; (iii) monitor the Special Account; (iv) monitor implementing agencies' Project-related accounts and replenish them as needed; (v) audit implementing agencies' Project-related accounts; and (vi) centralize withdrawal applications for the Association and other cofinanciers, and maintain their respective accounts; (b) centralize tenders, program procurement of goods and services, and liaise with Direction Nationale des Marches de l'Etat (DINAME), Commission Nationale des Marches (CNM) and other institutions responsible for procurement procedures; (c) give support and advice, in its area of competence, to administrative, accounting and financial units responsible for Project implementation; (d) design and implement, with the support of DEP/MAE and technical assistance, a computerized accounting and financial management system for the Project; and (e) design and implement, jointly with Service d'Appui a la Gestion des Organismes et Projets of DEP/MAE, a specific training program for the accounting staff concerned with the Project at national and regional levels. 2. CAPU shall be staffed in a manner satisfactory to the Borrower and the Association, including at least the following staff: (a) Head of Unit; (b) Chief Accountant; and (c) Procurement Officer. III. Ministry of Agriculture and Livestock (MAE) MAE shall be responsible for the overall implementation of Parts A, B, D, E and F of the Project: 1. Part A of the Project: (a) The CRPAs shall be responsible for the overall implementation of Part A of the Project. (b) DVA shall be responsible for coordinating and monitoring the day-to-day operation of extension services under Part A of the Project, including extension-related training programs, coordination of the adaptive research program and the visual aid services. Page 18 (c) The Training and Extension Service of DVA shall be responsible for carrying out the staff training program. (d) The regional Training and Extension Services shall be responsible for implementation of the field extension program, adaptive research and reorganization of the PAPEM network. (e) The regional Monitoring and Evaluation Services shall be responsible for the monitoring of the field extension programs. 2. Part B of the Project: (a) Implementation of Part B of the Project shall be coordinated: (i) at the national level, by a livestock economist at the DPIA; and (ii) at the regional level, by the CRPA Directorates who shall be responsible for the planning and coordination of livestock programs. (b) Rehabilitation and operation of the LNV and field diagnostic units shall be the joint responsibility of the directors of the LNV and DPIA. (c) The distribution of animal feeds, veterinary products and vaccines shall be the responsibility of ONAVET. (d) CRPA staff shall be responsible, in accordance with the terms of the Protocole d'Accord entered into between ONAVET and the respective CRPAs, for the distribution of veterinary products to livestock owners. (e) The individual CRPAs shall be responsible, under the guidance of the DPIA, for planning and execution of the construction of livestock services infrastructure: vaccination yards, livestock posts, staff housing and stores. IV. Ministry of Farmers' Cooperative Action (MACP) MACP shall be responsible for the overall implementation of Part C of the Project: 1. DEFOC shall be responsible for the implementation at the national level, and its regional heads of service shall be responsible for implementation at the field level and for routine evaluation of the functional literacy programs. 2. DEP/MACP shall be responsible for the coordination of monitoring and evaluation of all Project-related functional literacy activities and programs. 3. Monitoring teams of the CRPAs shall be responsible for carrying out any additional ad-hoc surveys.