Thailand - Second Chao Phya Irrigation Project : Loan 1468 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1468 TH Loan Agreement (Second Chao Phya Irrigation Improvement Project) between KINGDOM OF THAILAND and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated September 23, 1977 LOAN NUMBER 1468 TH LOAN AGREEMENT AGREEMENT, dated September 23, 1977, between KINGDOM OF THAILAND (hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan and Guarantee Agreements of the Bank being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Northern Chao Phya Plain Project Area" means an area of about 600,000 hectares commanded by the Ch&o Phya irrigation system; (b) "Mae Klong Irrigation Project Area" means an area of about 400,000 hectares commanded or proposed to be commanded by the Mae Klong irrigation system; (c) "Project Areas" mean the Northern Chao Phya Plain and Mae Klong Irrigation Project Areas; (d) "Previous Project" means the Project, and ."Previous Project Area" means the Project Area, described in the Development Credit Agreement (Chao Phya Irrigation Improvement Project) between the Borrower and the Association, dated May 9, 1973; (e) "Project Coordination Committee" means the committee referred to in Section 3.06 of this Agreement; (f) "RID" means the Royal Irrigation Department within the Borrower's Ministry of Agriculture and Cooperatives; (g) "DAE" means the Department of Agricultural Extension within the Borrower's Ministry of Agriculture and Cooperatives; and -2- (h) "BAAC" means the Bank for Agriculture and Agricultural Cooperatives established pursuant to the Borrower's Bark for Agriculture and Agricultural Cooperatives Act, B.E. 2509 (1966). ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to fifty-five million dollars ($55,000,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank, for expendi- tures made (or, if the Bank 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 Loan. Section 2.03. Except as the Bank shall otherwise agree, contracts for the purchase of goods or for civil works to be financed out of the proceeds of the Loan, shall be procured in accordance with the provisions of Schedule 4 to this Agreement and the Annex thereto. Section 2.04. The Closing Date shall be June 30, 1983 or such later date as the Bank shall otherwise establish. The Bank shall promptly notify the Borrower of such later date. Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.06. The Borrower shall pay interest at the rate of eight and two-tenths per cent (8.20_%) per annum on the princi- pal amount of the Loan withdrawn and outstanding from time to time. Section 2.07. Interest and other charges shall be payable semi-annually on February 15 and August 15 in each year. -3- Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project with due diligence and efficiency and in conformi!ty with appropriate agricultural, engineering, economic and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. 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 Bank: (i) for Parts A, B and D. 1 of the Project, on or before October 31, 1977, and (ii) for Parts C and D. 2 of the Project. Section 3.03. (a) The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to replace or repair such goods. (b) Except as the Bank shall otherwise agree, all goods and services financed out of the proceeds of the Loan shall be used exclusively for the Project until its completion. Section 3.04. (a) The Borrower shall furnish to the Bank, promptly upon their preparation, the plans, specifications, reports, contract documents and work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Bank shall reasonably request. (b) The Borrower: (i) shall maintain records adequate to record the progress of the Project (including the cost thereof) and to identify the goods and services financed out of the proceeds of the Loan, and to disclose the use thereof in the Project; (ii) shall enable the Bank's accredited representatives to visit the facilities and construction sites included in the -4- Project and to examine the goods financed out of the proceeds of the Loan and any relevant records and documents; and (iii) shall furnish to the Bank all such information as the Bank shall reasonably request concerning the Project, the expenditure of the proceeds of the Loan and the goods and services financed out of such proceeds. Section 3.05. The Borrower shall take or cause to be taken all such action as shall be necessary to acquire as and when needed all such land and rights in respect of land as shall be required for the construction and operation of the facilities included in the Project and shall furnish to the Bank, promptly after such acquisition, evidence satisfactory to the Bank that such land and rights in respect of land are available for purposes related to the Project. Section 3.06. The Borrower shall establish and maintain a Project Coordination Committee with membership, powers, func- tions and procedures acceptable to the Bank. Section 3.07. The Borrower shall cause RID to appoint and maintain, after consultation with the Bank: (a) a Project Director and a Project Manager responsible for all construction activity under Parts A and B of the Project; and (b) a Project Director and a Project Manager responsible for all construction activity in the Mae Klong Irrigation Project Area. Section 3.08. The Borrower shall cause RID to complete, on or before October 1, 1979, the construction of the main drainage neziork, namely the improvement of natural drainage channels in and adjacent to the irrigated area, as described in Schedule 2 to the Loan Agreement (Mae Klong Irrigation Project) between the Borrower and the Bank, dated November 25, 1964. Section 3.09. The Borrower shall take, or cause to be taken, all necessary measures including those required under the Bor- rower's Agricultural Land Consolidation Act of 1974, to ensure the timely implementation of the works to be carried out under Parts A. 2 and C. 2 of the Project. Section 3.10. The Borrower shall cause DAE to expand its seed production and distribution program, to achieve high-quality seed production sufficient to allow farmers in the Northern Chao -5- Phya Plain Project Area to replace their paddy seed once in every four years. ARTICLE IV Other Covenants Section 4.01. (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member con- cerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distri- bution of foreign exchange held under the control or for the benefit of such member. To that end, if any lien shall be*created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the alloca- tion, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or permitting the creation of such lien, shall make express provision to that effect; provided, however, that- if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or administrative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfactory to the Bank. (b) The foregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower, of any political or administrative subdivision thereof and of any entity owned or controlled by, or operating for the account or benefit of, the Borrower or any such subdivision, including gold and other foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. -6- Section 4.02. (a) The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained appropriate 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) cause RID to maintain one account covering expenditures related to Parts A, B, D.1 and D.3 of the Project, and another separate account covering expenditures related to Parts C and D. 2 of the Project; (ii) have such ac- counts and financial statements related thereto for each fiscal year audited, in accordance with sound auditing principles consis- tently applied, by independent auditors acceptable to the Bank; (iii) furnish to the Bank for its review as soon as available, but in any case not later than four months after the end of each such year, (A) certified copies of such financial statements for such year as so audited and (B) the report of such audit by such auditors, of such scope and in such detail, as the Bank shall have reasonably requested; and (iv) furnish to the Bank such other information concerning such accounts and financial statements and the audit thereof as the Bank shall from time to time reasonably request. Section 4.03. The Borrower shall cause RID to operate and maintain all irrigation, service roads and drainage systems required for the functioning of the facilities constructed under the Project and the Previous Project, in accordance with sound engineering standards including, except as the Bank shall other- wise agree, the adoption of a three-year cycle for routine maintenance. Section 4.04. The Borrower shall: (a) take all measures necessary to promptly implement a program for the recovery from beneficiaries of Part A of the Project, amounts equivalent, on the average, to 50% of the actual cost of Part A. 2 of the Project, such amounts to be recovered over a period of not more than 15 years from the completion date of relevant works, with interest at not less than 12% per annum, and with appropriati\ grace periods; and (b) make arrangements acceptable to the Bank, on or before December 31, 1977, for the collection by BAAC or other institu- tions acceptable to the Bank, of the amounts referred to in sub-Section (a) hereinabove. -7- Section 4.05. The Borrower shall: (a) introduce on or before December 31, 1978, annual charges of not less than the equivalent of the average cost of operating and maintaining the irrigation and drainage systems, including on-farm development works, in the Project Areas; and (b) promptly following the introduction of such charges, collect or cause to be collected sAaid charges related to the Northern Chao Phya Plain Project Area frou, beneficiaries of Parts A and B of the Project, and the Previous Project. Section 4.06. The Borrower shall cause BAAC and the coopera- tives providing for agricultural credit in the Project Areas to increase the number of their trained staff, and provide sufficient funds to meet the reasonable short-term and long-term credit needs of the farmers in the Project Areas. ARTICLE V Termination Section 5.01. The following event is specified as an addi- tional condition to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely that the Project Coordination Committee referred to in Section 3.06 of this Agreement, shall have been established. Section 5.02. The date December 22, 1977, is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: -8- For the Borrower: Minister of Finance Ministry of Finance Bangkok 2 Thailand Cable address: Telex: MINANCE TH-2823 Bangkok For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, 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. KINGDOM OF THAILAND By /s/ Arun Panupong Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ S. Shahid Husain Regional Vice President East Asia and Pacific -9- SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed A. Parts A, B, D.1 and D.3 of the Project (1) Civil works and 8,600,000 50% mapping by con- tract (2) Civil works and 17,400,000 40% mapping by force account (3) Equipment and 13,300,000 vehicles (a) directly im- 100% of foreign ported expenditures (b) procured 65% locally (c) manufac- 100% (ex-factory) tured lo- cally (4) Consultants' Ser- 2,200,0O 100% vices and Overseas Training - 10 - Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed B. Parts C and D.2 of the Project (1) Civil works and 4,800,000 50% mapping by con- tract (2) Civil works and 1,700,000 40% mapping by force account (3) Equipment and 2,700,000 Vehicles (a) directly 100% of foreign imported expenditures (b) procured 65% locally (c) manufac- 100% (ex-factory) tured lo- cally (4) Consultants' ser- 600,000 100% vices and Over- seas Training C. Unallocated 3,700,000 TOTAL 55,000,000 2. For the purposes of this Schedule the term "foreign expendi- tures" means expenditures in the currency of any country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower. - 11 - 3. The disbursement percentages have been calculated in compliance with the policy of the Bank that no proceeds of the Loan shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Loan decreases or increases, the Bank may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Bank. 4. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made: (a) in respect of payments made for expenditures prior to the date of this Agreement; and (b) in respect of Category B on account of expenditures incurred for the financing of Parts C and D. 2 of the Project, unless and until the consultants referred to in Section 3.02 (ii) of this Agreement, and the Project Director and Project Manager referred to in Section 3.07 (b) of this Agreement, shall have been appointed. 5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in para- graph 1 above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insuffi- cient to finance the agreed percentage of all expenditures in that Category, the Bank may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Loan which are then allocated to another Category and which in the opinion of the Bank are not needed to meet other expenditures, and (ii) if such realloca- tion cannot fully meet the estimated shortfall, reduce the dis- bursement percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 6. If the Bank shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expenditures for such item shall be financed out of the proceeds of the Loan and the Bank may, without in any way restricting - 12 - or limiting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amourt of the Loan as, in the Bank's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Loan. - 13 - SCHEDULE 2 Description of the Project The Project is part of the Borrower's continuing program for improving irrigation facilities and supporting services to farmers in the Project Areas. The Project consists of the following Parts: A: Northern Chao Phya Plain Project Area. Improvement of water control and farm access to serve an area of about 63,000 hectares through works of: 1. Rehabilitation. 2. On-farm development (including a fisheries component). B. Northern Chao Phya Plain Project Area. 1. Improvement of water control and efficiency of farm operations in an area of about 138,000 hectares through rehabilitation works. 2. Topographic mapping of about 300,000 hectares. C. Mae Klong Irrigation Project Area. 1. Topographic and cadastral mapping of about 50,000 hectares. 2. Construction of about three on-farm development pilot projects. 3. Construction of about 360 kilometers of service roads and associated works. D. Studies. 1. A feasibility study for a third stage project in the Northern Chao Phya Plain Project Area. 2. A feasibility study for a second stage project in the Mae Klong Irrigation Project Area. - 14 - 3. Studies of agricultural supporting services. The Project is expected to be completed in accordance with a timetable acceptable to the Bank. - 15 - SCHEDULE 3 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* On each February 15 and August 15 beginning August 15, 1982 through February 15, 1997 1,775,000 On August 15, 1997 1,750,000 * To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Sectioi 4.02), the figures in this column represent dollar equivalents determined as for purposes of withdrawal. - 16 - Premiums on Prepayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1.25% More than three years but not more than six years before maturity 2.45% More than six years but not more than eleven years before maturity 4.50% More than eleven years but not more than sixteen years before maturity 6.55% More than sixteen years but not more than eighteen years before maturity 7.40% More than eighteen years before maturity 8.20% - 17 - SCHEDULE 4 Procurement A. International Competitive Bidding Except as provided in Part B and D hereof, contracts for the purchase of goods or for civil works shall be procured in accor- dance with procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in March 1977 (hereinafter called the Guidelines), on the basis of international competitive bidding as described in Part A of the Guidelines. B. Other Procurement Procedures 1. Contracts for civil works for the construction of bridges and other small structures and for the supply of materials under Parts A and B of the Project, estimated to cost not more than the equivalent of $25,000 each, and, mapping under Parts A, B and C of the Project, may be awarded on the basis of the Borrower's competitive bidding procedures, following local advertising. 2. Contracts for civil works under Part A. 2 of the Project, may be awarded on the basis of the Borrower's competitive bidding procedures, following local advertising. 3. Equipment and vehicles with unit prices not exceeding the equivalent of $10,000 each, may be purchased in accordance with the Borrower's competitive bidding procedures, provided that the aggregate of items so procured shall not exceed the equivalent of $300,000. 4. For the purposes of this Schedule, the term "Borrower's competitive bidding procedures" shall include the provisions set forth in the Annex to this Schedule. C. Evaluation and Comparison of Bids for Goods; Preference for Domestic Manufacturers 1. For the purpose of evaluation and comparison of bids for the supply of goods except those to be procured in accordance with local procedures: (i) bidders shall be required to state in their bid the c.i.f. (Thailand port of entry) price for imported goods, or the ex-factory price for domestically-manufactured goods; (ii) - 18 - customs duties and other import taxes on imported goods, and sales and similar taxes on domestically-supplied goods, shall be excluded; and (iii) the cost to the Borrower of inland freight and other expenditures incidental to the delivery of goods to the place of their use or installation shall be included. 2. Goods manufactured in Thailand may be granted a margin of preference in accordance with, and subject to, the following provisions: (a) All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the information required to establish the eligibility of a bid for such preference and the following methods and stages that will be followed in the evaluation and comparison of bids. (b) After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Thailand if the bidder shall have established to the satisfaction of the Borrower and the Bank that the manufacturing cost of such goods includes a value added in Thailand equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other bids offering goods manufactured in Thailand. (3) Group C: bids offering any other goods. (c) All evaluated bids in each group shall be first compared among themselves, excluding any customs duties and other import taxes on goods to be imported and any salez or similar taxes on goods to be supplied domestically, to determine the lowest evaluated bid of each group. Such lowest evaluated bids shall then be compared with each other, and if, as a result of this compar- ison, a bid from group A or group B is the lowest, it shall be selected for the award. (d) If, as a result of the comparison under paragraph (c) above, the lowest bid is a bid from group C, all group C bids shall be further compared with the lowest evaluated bid from group A after adding to the c.i.f. bid price of the imported goods offered in each group C bid, for the purpose of this further - 19 - comparison only, an amount equal to (i) the amount of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in such group C bid; or (ii) 15% of the c.i.f. bid price of such goods if said customs duties and taxes exceed 15% of such price. If the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the bid from group C which as a result of the comparison under paragraph (c) is the lowest evaluated bid shall be selected. D. Procurement Without Contracting The Borrower may carry out under force account: (i) the works under Parts A. 1, B, C. 1 and C. 2 of the Project, and (ii) up to 65% of the works under Part A. 2 of the Project. E. Review of Procurement Decisions by the Bank Review of invitations to bid and of proposed awards and final contracts: 1. With respect to all contracts procured in accordance with procedures referred to in Part A hereinabove: (a) Before bids are invited, the Borrower shall furnish to the Bank, for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Bank shall reasonably request. Any further modification to the bidding documents shall require the Bank's concurrence before it is issued to the prospective bidders. (b) After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Bank of the name of the bidder to which it intends to award the contract and shall furnish to the Bank, in sufficient time for its review, a detailed report, by the consultants referred to in Section 3.02 of this Agreement, on the evaluation and comparison of the bids received, together with the recom- mendations for award of the said consultants and such other information as the Bank shall reasonably request. The Bank shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. - 20 - (c) The terms and conditions 'of the contract shall not, without the Bank's concurrence, materially differ from those on which bids were asked or prequalification invited. (d) Two conformed copies of the contract shall be furnished to the Bank promptly after its execution and prior to the submis- sion to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract. 2. With respect to contracts procured in accordance with procedures referred to in Part B. 2 hereinabove, the Borrower shall: (i) submit a specimen form of contract for the Bank's review and approval; (ii) use the agreed form of contract for all contracts for civil works under Part A. 2 of the Project, unless the Bank shall otherwise agree; and (iii) furnish two conformed copies of each contract to the Bank promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, together with a detailed report, by the consultants referred to in Section 3.02 of this Agreement, on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants and such other information as the Bank shall reasonably request. The Bank shall, if it deter- mines that the intended award would be inconsistent with the Borrower's competitive bidding procedures, promptly inform the Borrower and state the reasons for such determination. 3. With respect to each contract to be financed out of the proceeds of the Loan and not governed by the preceding paragraphs other than those referred to in Part B.1 of this Schedule, the Borrower shall furnish to the Bank, promptly after its execution and prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other information as the Bank shall reasonably - 21 - request. The Bank shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. - 22 - ANNEX TO SCHEDULE 4 Provisions included in Borrower's Competitive Bidding Procedures A. Notification and Advertising 1. Advertising in a reasonable number of Thai and English language local newspapers. 2. Bidding period: 30 - 45 days. B. Prequalification May be used, at the option of the Borrower. C. Bidding Documents* 1. Specimen form of contract, referred to in Part E.2 (i) of Schedule 4 to this Agreement, to be in the English language. 2. Conformed copies of signed contracts to be in English or Thai language. In the latter case, a certified translation of the form of contract and general and special conditions of contract should be provided. 3. Bidding documents should contain a clear statement whether prices are subject to adjustment on the occurrence of specified events, and the criteria for adjustment should be included in the invitation to tender. D. Bid Evaluation Bid evaluation and decision on awards shall be carried out in accordance with Chapter III of the Guidelines, unless otherwise specified in this Annex. E. General The Borrower shall* take all reasonable steps to expedite the preparation of bid documents, the evaluation of bids and the award of contracts. * Applicable to contracts referred to in Part B.2 of Schedule 4 to this Agreement.