Conformed Copy - C2613 - Education Development Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2613 BEN Development Credit Agreement (Education Development Project) between REPUBLIC OF BENIN and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 10, 1994 CREDIT NUMBER 2613 BEN DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 10, 1994, between the REPUBLIC OF BENIN (the Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) 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; WHEREAS (B) the Association has received from the Borrower a letter dated March 11, 1994 describing a series of actions designed to achieve certain policy objectives in the Borrower's education sector (the Program) and declaring the Borrower's commitment to the execution of the Program; and WHEREAS (C) 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 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 Page 2 in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "MEN" means Ministere de l'Education Nationale, the Borrower's Ministry of Education; (b) "DAPS" means the Direction de l'Analyse, de la Prevision et de la Synthese within MEN; (c) "APEs" means Associations des Parents d'Eleves, the associations of parents of students; (d) "Implementation Manual" means the manual to be adopted by the Borrower pursuant to Section 6.01 (d) of this Agreement; (e) "Selected Agency" means any of the agencies, organizations or firms employed by the Borrower pursuant to paragraph 5 of Schedule 4 to this Agreement to manage the works to be carried out under Parts A.1 (a) and A.2 (b) of the Project and to manage the boarding facilities to be rehabilitated or constructed under Part A.2 (b) of the Project; (f) "Project Preparation Advance" means the project preparation advance granted by the Association to the Borrower pursuant to an exchange of letters dated May 17, 1991 and July 22, 1991 between the Borrower and the Association; (g) "Special Account" means the account referred to in Section 2.02 (b) of this Agreement; and (h) "CFA Franc" and "CFAF" mean the common currency of the Borrower and other members of the West African Monetary Union. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in this Agreement, an amount in various currencies equivalent to thirteen million two hundred thousand Special Drawing Rights (SDR 13,200,000). 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 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 deposit account in a commercial bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure or attachment. 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 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 February 29, 2000 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 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 the 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 Page 3 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 from the next payment date in that year specified in Section 2.06 of this Agreement. (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 2.05. 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 1 and August 1 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 1 and August 1 commencing August 1, 2004 and ending February 1, 2034. Each installment to and including the installment payable on February 1, 2014 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 2.08. The currency of the French Republic is hereby specified for the purposes of Section 4.02 of the General Conditions. 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 through MEN with due diligence and efficiency and in conformity with appropriate financial, administrative and educational practices, with due regard to ecological and environmental factors, 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 and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Manual and with the Imple- mentation Program set forth in Schedule 4 to this Agreement. 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 3 to this Agreement. Section 3.03. Without limitation on its obligations under Section 3.01 of this Agreement, the Borrower shall: (a) beginning October 31, 1994 and, thereafter, not Page 4 later than October 31 of each year, review with the Association the execution of the education sector's recurrent budget and annual work program for the ongoing fiscal year as well as an assessment of resource requirements for the following year; (b) on the basis of such review, each year include in its annual recurrent budget for the following fiscal year appropriate amounts, acceptable to the Association, to cover salary and non-salary recurrent costs for the education sector for that year consistent with the financial plan for 1994-1999 and the monitoring indicators set out in the letter referred to in Preamble (B) of this Agreement; and (c) implement its annual recurrent budget in each year as set out in the preceding paragraph. Section 3.04. (a) The Borrower shall carry out, jointly with the Association, not earlier than 30 months after the Effective Date and not later than 33 months after the Effective Date a mid-term review of the progress made in carrying out the Project and the Program. (b) The terms of reference of the mid-term review shall be acceptable to the Association and shall include an assessment of: (i) progress made in achieving overall Project objectives; (ii) MEN's role in the execution of the Project; (iii) textbook procurement and distribution, and textbook replenishment by the APEs; (iv) progress in the execution and management of civil works; (v) management of the boarding facilities to be constructed or rehabilitated under the Project; (vi) progress in the redeployment of teachers; (vii) the recruitment system for contractual primary school teachers to be developed under Part C.2 (c) of the Project; (viii) implementation of training activities and the performance of staff trained; (ix) implementation of the pilot programs to be carried out under Part A.2 (a)(ii) of the Project; and (x) Project management. In addition, as part of the mid-term review, the Borrower shall prepare a program of action, satisfactory to the Association, to deal with deficiencies in Project implementation identified during the review. (c) MEN shall transmit to the Association, at least 30 days prior to the mid-term review described in paragraphs (a) and (b) above, a report, in scope and detail satisfactory to the Association, describing the status of the items listed in such paragraphs and of Project and Program implementation generally. (d) Based on such review, the Borrower shall promptly: (i) prepare an action plan, acceptable to the Association, for the further implementation of the Project and the Program, and shall thereafter implement such action plan; and (ii) adopt and, thereafter, implement a budget, satisfactory to the Association, containing minimum annual allocations to cover recurrent costs for the education sector for the remainder of the Project period. (e) The Borrower shall carry out, jointly with the Association, during the fourth quarter of each year (other than 1997), a review of the progress made in carrying out the Project and the Program. Section 3.05. Without limitation on its obligations under Section 3.01 of this Agreement, the Borrower shall, beginning October 31, 1994 and, thereafter, not later than October 31 of each year, review with the Association the Borrower's three-year rolling investment program for the education sector in the context of overall resource availability for the sector. Annual investments in the education sector, not included in the aforementioned investment program and exceeding a cumulative amount equivalent to $1,000,000, shall be subject to the Association's prior approval. 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 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 Page 5 not later than three 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; (ii) retain, until at least one year after the Association has received the audit report for the fiscal year in which the last withdrawal from the Credit Account or payment out of the Special 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 6.02 (h) of the General Conditions, the following additional event is specified, namely, that a situation has arisen which shall make it improbable that the Program, or a significant part thereof, will be carried out. ARTICLE VI Effective Date; Termination Section 6.01. The following events are specified as additional conditions to the effectiveness of this Agreement within the meaning of Section 12.01 (b) of the General Conditions: (a) the Borrower has prepared and submitted to the Association bid packages, acceptable to the Association, for all the major packages to be procured under International Competitive Bidding procedures during the first year after the Effective Date; (b) the Borrower has prepared contracts acceptable to the Association, for the consultant's services required under the Project for the year following the Effective Date; (c) the Borrower has employed an independent auditor, acceptable to the Association, under terms and conditions satisfactory to the Association to audit the Project accounts; (d) the Borrower has adopted an Implementation Manual satisfactory to the Association, detailing procedures for carrying out activities under the Project; (e) the Borrower has developed draft operational guidelines, satisfactory to the Association, for textbook replenishment by APEs; and (f) the Borrower has completed the establishment of: (i) a system for computerized monitoring of the budgetary and accounting practices of MEN; and (ii) a system for the training of appropriate MEN staff at the central and regional level, as Page 6 well as the training of the accountant and the contracts manager of the Project. Section 6.02. The date ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VII Representatives of the Borrower; Addresses Section 7.01. 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 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministere des Finances B. P. 302 Cotonou, Benin Cable address: Telex: MINFIN 5009 Cotonou 5289 For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 248423 (RCA) Washington, D.C. 82987 (FTCC) 64145 (WUI) or 197688 (TRT) 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 BENIN By Candide Ahouansou Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Olivier Lafourcade Acting 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 7 Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works: 80% (a) under 2,030,000 Part A.1 (a) of the Project (b) under 510,000 Part A.2 (b) of the Project (c) under 870,000 Part C.2 (d) of the Project (2) Equipment 730,000 100% of foreign and vehicles expenditures and 80% of local expenditures (3) Furniture 360,000 100% of foreign expenditures and 80% of local expenditures (4) Textbooks: 100% of foreign expenditures and 80% of local expenditures (a) Purchase 3,630,000 (b) Distribution 440,000 (5) Consultants 1,600,000 100% Services (6) Training 870,000 100% (7) Operating costs 580,000 60% (8) Pilot Programmes (for 360,000 100% Part A.2 (a) (ii) of the Project (9) Refunding of 290,000 Amounts due Project pursuant to Preparation Section 2.02 (c) Advance of this Agreement (10) Unallocated 930,000 TOTAL 13,200,000 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; provided, however, that if the currency of the Borrower is also that of another country from the territory of which goods or services are supplied, expenditures in Page 8 such currency for such goods or services shall be deemed to be "foreign expenditures"; and (c) the term "incremental operating costs" means the costs incremental to the Project incurred by MEN for supplies, vehicle and machinery operation and maintenance, and field allowances. 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) payments made for expenditures under Category (1) until and unless the Borrower has adopted operational guidelines for the management of the boarding facilities to be rehabilitated under the Project and has entered into the management contracts referred to in paragraph 5 of Schedule 4 to this Agreement; and (c) payments made for expenditures under Category (4) until and unless the Borrower has adopted operational guidelines, satis- factory to the Association, for textbook replenishment by APEs. 4. The Association may require withdrawals from the Credit Account to be made on the basis of statements of expenditure for expenditures under contracts for goods, works and services not exceeding $20,000 equivalent, under such terms and conditions as the Association shall specify by notice to the Borrower. SCHEDULE 2 Description of the Project The objectives of the Project are to contribute to the exe- cution of the Program by: (i) increasing access to the Borrower's schools while improving the attendance rate of girls; (ii) improving the quality and efficiency of the Borrower's primary and secondary schools; and (iii) strengthening the planning and management capacity of the Borrower in its education sector. 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: Increase of Access to Education 1. Primary School Rehabilitation and Reconstruction: (a) Rehabilitation and/or reconstruction of about 600 classrooms in about 200 primary schools in order to increase the number of student places and to improve the conditions under which students receive their education; and (b) carrying out seminars at the regional level for MEN staff and for members of the APEs involved in the implementation of Part A.1 of the Project in order to increase their capacity to coordinate school construction and rehabilitation programs. 2. Increase of Participation of Girls in Primary and Secondary Education: (a) Increasing the enrollment rates and decreasing the drop-out rates of girls in primary education through, among other things: (i) carrying out field surveys to identify factors that positively influence girls' enrollment and/or continued participation in primary schools; and (ii) implementing pilot programs in selected regions to increase girls' enrollment and continued participation in primary schools using the results of the field surveys referred to in the preceding sub-paragraph. (b) Increasing girls' participation in secondary education through construction and/or rehabilitation of six boarding facilities for female secondary school students. Part B: Improvement of Quality and Efficiency of Primary and Secondary General Education Page 9 1. In-service Training and Improvement of Examinations System (a) Strengthening the capacity of primary school education specialists to design and develop education inputs through training of inspectors, pedagogic inspectors and school heads in the design and development of modules for the in-service training and evaluation of primary school teachers. (b) Carrying out a study of the existing examination system in order to identify reform to support examination restructuring, including reforms of the examination fees system. (c) Provision of training to strengthen the management skills of heads of secondary schools. 2. Provision of Textbooks (a) Acquisition and distribution of about 750,000 textbooks and teachers' guides in French and mathematics to primary and lower-secondary general education schools. (b) Strengthening the capacity of MEN staff to evaluate and procure textbooks. (c) Carrying out a national sensitization exercise for APEs and local communities on the implementation of the operational guidelines for textbook replenishment referred to in paragraph 3 (c) of Schedule 1 to this Agreement. Part C: Strengthening of Sector Planning and Management Capacity 1. Planning and Programming Strengthening the capacity of the central and regional offices of MEN to plan and coordinate education sector activities through: (a) carrying out a labor market demand study in order to develop vocational education and training interventions for the future; (b) carrying out an audit of the National University of Benin to evaluate its management and its academic relevance, including seminars for faculty members and students of the National University of Benin to discuss the results of such audit; and (c) carrying out a training program to strengthen the management skills of MEN staff. 2. Financial and Human Resource Management Strengthening the capacity of MEN in budget monitoring, accounting and financial management and in staff management through: (a) development and implementation of a three year training program for administrators in the central and regional offices of MEN; (b) carrying out a study to determine the feasibility of double shift and multigrade classrooms at primary school level; (c) development of a recruitment system for contractual (non public servant) primary school teachers, including carrying out of a preliminary study; and (d) improvement of working conditions of MEN staff, rehabilitation of the central and regional offices of MEN and acquisition of office equipment, furniture and vehicles. * * * The Project is expected to be completed by September 30, 1999. SCHEDULE 3 Procurement and Consultants' Services Page 10 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 1992 (the Guidelines). (a) For fixed-price contracts, the invitation to bid referred to in paragraph 2.13 of the Guidelines shall provide that, when contract award is delayed beyond the original bid validity period, the successful bidder's bid price will be increased for each week of delay by two predisclosed correction factors acceptable to the Association, one to be applied to all foreign currency components and the other to the local currency component of the bid price. Such an increase shall not be taken into account in the bid evaluation. (b) In the procurement of goods and works in accordance with said Part A, the Borrower shall use the relevant standard bidding documents issued by the Bank, with such modifications thereto as the Association shall have agreed to be necessary for the purposes of the Project. Where no relevant standard bidding documents have been issued by the Bank, the Borrower shall use bidding documents based on other internationally recognized standard forms agreed with the Association. 2. To the extent practicable, contracts for goods and works shall be grouped into bid packages estimated to cost the equivalent of $50,000 or more. 3. Goods shall be exempted from pre-shipment price inspection by a third-party inspection firm. 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 Benin 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: Preference for Domestic Contractors In the procurement of works in accordance with the procedures described in Part A 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 Works under Part A.I of the Project estimated to cost the equivalent of $70,000 or less per contract, up to an aggregate amount equivalent to $3,400,000, works under Part A.2 of the Project estimated to cost the equivalent of $200,000 or less per contract, up to an aggregate amount equivalent to $900,000, furniture, materials and supplies estimated to cost the equivalent of $50,000 or less per contract, up to an aggregate amount equivalent to $600,000, and services contracts for textbooks and teachers' guides distribution under Part B.2 of the Project estimated to cost the equivalent of $200,000 or less per contract, up to an aggregate amount equivalent to $600,000 may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association. 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 estimated to cost the equivalent of $150,000 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 preceding 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, Page 11 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 subparagraph (b) shall not apply to contracts on account of which withdrawals from the Credit Account are to be made on the basis of statements of expenditure. 2. The figure of 15% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines. Section II. Employment of Consultants 1. In order to assist the Borrower in carrying out 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 (the Consultant Guidelines). For complex, time-based assignments, the Borrower shall employ such consultants under contracts using the standard form of contract for consultants' services issued by the Bank, with such modifications as shall have been agreed by the Association. Where no relevant standard contract documents have been issued by the Bank, the Borrower shall use other standard forms agreed with the Association. 2. Notwithstanding the provisions of paragraph 1 of this Section, the provisions of the Consultant Guidelines requiring prior Association review or approval of budgets, short lists, selection procedures, letters of invitation, proposals, evaluation reports and contracts shall not apply to contracts estimated to cost less than $100,000 equivalent each. However, this exception to prior Association review shall not apply to the terms of reference for such contracts or to the employment of individuals, to single source selection of firms, to assignments of a critical nature as reasonably determined by the Association or to amendments of contracts raising the contract value to $100,000 equivalent or above. SCHEDULE 4 Implementation Program Project Coordination 1. Without limitation upon the provisions of Section 3.01 of this Agreement, the Borrower shall carry out the Project in accordance with the Implementation Manual and, except as the Association shall otherwise agree, shall not amend or waive any provision of the Implementation Manual in such a manner as to materially and adversely affect the carrying out of the Project or the achievement of its objectives. 2. Project monitoring and coordination shall be the responsibility of DAPS. 3. Review meetings, chaired by the Director of DAPs with the participation of the various services involved in the execution of the Project, shall be held at the end of each calendar quarter. 4. DAPS shall prepare and furnish to the Association, by March 31 and September 30 in each year after the Effective Date, a progress report acceptable to the Association. Part A of the Project 5. The Borrower shall enter into management contracts satis- factory to the Association with non-governmental organizations acceptable to the Association to provide for: (a) the management of the works to be carried out under Parts A.1 (a) and A.2 (b) of the Project; and (b) the management of the boarding facilities to be constructed or rehabilitated under Part A.2 (b) of the Project. 6. The Borrower shall comply with, and shall cause the Selected Agencies to comply Page 12 with, the terms of the management contracts entered into in accordance with the preceding paragraph and shall not assign, amend, abrogate or waive such management contracts or any provision thereof without the consent of the Association. 7. MEN shall complete the field surveys described under Part A.2 (a) (i) of the Project not later than 12 months after the Effective Date. 8. MEN shall start the implementation of the Pilot Programs referred to in Part A.2 (a) (ii) of the Project by no later than 18 months after the Effective Date. The Pilot Programs shall be in 6 sub-regions (sous-prefectures) selected from among the three Regions in the territory of the Borrower having the lowest rate of girls' enrollment. 9. The boarding facilities to be constructed and/or rehabilitated under Part A.2 (b) of the Project shall be in the three Regions in the territory of the Borrower having the lowest rate of girls' enrollment at the secondary level. Part C of the Project 10. The Borrower shall carry out Part C.2 (a) of the Project and shall implement a recruitment system satisfactory to the Association for contractual (non public servant) teachers for primary schools by March 31, 1997. SCHEDULE 5 Special Account 1. For the purposes of this Schedule: (a) the term "eligible Categories" means Categories (1) to (8) 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 $500,000 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 amount 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 paid 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 Page 13 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 anypayment out of the Special Account: (i) was made for an expenditure or in an amount not eligible pursuant to paragraph 2 of this Schedule; or (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 for cancellation in accordance with the relevant provisions of this Agreement, including the General Conditions.