Chad - Second Education Project : Credit 0251 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 251 CD Development Credit Agreement (Second Education Project) BETWEEN REPUBLIC OF CHAD AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JUNE 16, 1971 CONFORMED COPY CREDIT NUMBER 251 CD Development Credit Agreement (Second Education Project) BETWEEN REPUBLIC OF CHAD AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JUNE 16, 1971 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated June 16, 1971, between the REPUBLIC OF CHAD (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) The Borrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Development Credit Agreement by extending the Credit as hereinafter provided; WHEREAS (B) By a development credit agreement, dated August 29, 1968, between the Borrower and the Association (which agreement, as amended in this Development Credit Agreement, is hereinafter called the 1968 Development Credit Agreement), the Association agreed to assist in financ ... the costs, inter alia, of the agricultural training center at Fort Lamy therein reiwrred to, construction of which has not commenced at the date hereof; WHEREAS (C) The Borrower and the Association have now agreed to revise the specifications for such agricultural training center and to provide for its relocation at Fort Archambault, and the Association has accordingly agreed to include in the Credit provision for the financing of additional costs of such relocation; WHEREAS (D) The Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Development Credit Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated January 31, 1969, with the same force and effect as if they were fully set forth herein, subject, however, to the deletion of Section 5.01 and of paragraph (h) of Section 6.02 thereof and to the renumbering of paragraph (i) of Section 6.02 into paragraph (h) thereof (said General Conditions 4 Applicable to Development Credit Agreements of the Association, as so modified, being hereinafter called the General Conditions). Section 1.02. Wherever used in this Development Credit Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings thereii. set forth. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in this Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to two million two hundred thousand dollars ($2,200,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Development Credit Agreement, as such Schedule shall be amended from time to time, 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 and to be financed under this Development Credit Agreement; provided, however, that, except as the Association shall otherwise agree, no withdrawal shall be made on account of expenditures in the territories of any country which is not a member of the Bank (other than Switzerland) or for goods produced in, or services supplied from, such territories. Section 2.03. Except as the Association shall otherwise agree, the goods and services (other than services of consultants) required for Parts A and B of the Project and to be financed out of the proceeds of the Credit shall be procured on the basis of international competition under procedures consistent with the Guidelines for Procurement under World Bank Loans and IDA Credits, published by the Bank in August 1969, (hereinafter called "the Guidelines") and in accordance with, and subject to, the provisions set forth in Schedule 3 to this Development Credit Agreement. Section 2.04. The Closing Date shall be June 30, 1976, or such other date as shall be agreed between the Borrower and the Association. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. 5 Section 2.06. Service charges shall be payable semi-annually on June I and December I in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each June I and December 1 commencing June 1, 1981 and ending December 1, 2020, each installment to and including the installment payable on December 1, 1990, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United States of America is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. The Borrower shall carry out the Project with due diligence and efficiency and in conformity with sound technical, administrative and financial practices, and shall provide, promptly as neec,d, the funds, facilities, services and other resources required for the purpose. Section 3.02. In order to assist the Borrower in the preparation of plans and specifications for the Project and in the design and supervision of construction of buildings included in the Project, the Borrower shall employ architectural consultants acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.03. In carrying out Parts A and B of the Project, the Borrower shall employ contractors acceptable to the Association upon terms and conditions satisfactory to the Association. Section 3.04. The Project Director, together with the two Assistants (who shall comprise a full-time education advisor and a full-time accountant), appointed in accordance with the 1968 Development Credit Agreement, shall be given responsibility for the proper execution and supervision of Parts A and B of the Project in addition to their responsibilities under the 1968 Development Credit Agreement. The Borrower shall ensure that at all times the offices of the Project Director and the Assistant appointed as education advisor as aforesaid shall be held by persons acceptable to the Association. For the purpose of enabling the Project Director to carry out his said responsibilities the Borrower shall provide the Project Director with supporting staff, together with all facilities necessary for such purpose. 6 Section 3.05. (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 Credit 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 Association shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Credit to be used exclusively for the Project. Section 3.06. (a) The Borrower shall furnish to the Association, 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 Association shall reasonably request. (b) The Borrower shall: (i) 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 Credit, and to disclose the use thereof in the Project; (ii) enable the Association's representatives to inspect the Project, the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) furnish to the Association all such information as the Association shall reasonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods and services financed out of such proceeds. Section 3.07. The Borrower shall take all such action as shall be necessary to: (i) obtain the approval of the Association concerning the sites proposed by the Borrower for the construction of the educational institutions included in Parts A (i) and A (iii) of the Project, prior to the completion of designs therefor; (ii) acquire, before the award of any construction contract, all such land and rights in respect of land as shall be required for the construction of the educational institutions included in Part A of the Project; and (iii) furnish to the Association, promptly after such acquisition, evidence satisfactory to the Association that such land and rights in respect of land are available for purposes related to the Project. Section 3.08. (a) The Borrower shall cause the educational institutions included in the Project to be operated so as to promote the educational objectives of the Borrower and to be provided with qualified teachers and administrators in adequate numbers. (b) In particular, the Borrower shall: 7 (i) at least twelve months prior to the respective completion dates for Parts A (i) and A (ii) of the Project, establish two advisory councils, on terms acceptable to the Association, respectively for the technical secondary school at Fort Lamy and for the vocational training center at Fort Archambault, which shall in each case include representatives of local employ-rs and communities, for the purpose of advising on the formulation and implementation of the teaching programs of the said school and center and the acquisition of educational equipment therefor, in the light of local and national employment and other economic requirements, and of providing liaison between the said school and center and local industry and communities; (ii) the Borrower shall, prior to September 30, 1972, have taken all necessary action to obtain adequate technical assistance to recruit and complete the adequate training of, prior to September 30, 1974, such teaching staff as shall be required for the efficient operation of the educational institutions included in Part A of the Project, through the training of local staff abroad or through other means as may be agreed from time to time between the Borrower and the Association. ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consistently maintained 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. Section 4.02. The Borrower shall take out and maintain with responsible insurers, or shall make other provision satisfactory to the Association for, insurance against such risks and in such amounts as shall be consistent with sound practice. Section 4.03. The Borrower shall: (i) cause the buildings and equipment of the educational institutions included in the Project to be adequately maintained; (ii) cause all necessary renewals and repairs to be made thereto; and (iii) provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. 8 ARTICLE V Consultation, Information and Inspection Section 5.01. The Borrower and the Association shall cooperate fully to assure that the purposes of the Credit will be accomplished. To that end, the Borrower and the Association shall from time to time, at the request of either party: (a) exchange views through their representatives with regard to the performance of their respective obligations under this Development Credit Agreement, the administration, 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, and other matters relating to the purposes of the Credit; and (b) furnish to the other all such information as it shall reasonably request with regard to the general status of the Credit. On the part of the Borrower, such information shall include information with respect to financial and economic conditions in the territories of the Borrower, including its balance of payments, and the external debt of the Borrower, of any of its political subdivisions and of any agency of the Borrower or of any such political subdivision. Section 5.02. (a) The Borrower shall furnish or cause to be furnished to the Association all such information as the Association shall reasonably request concerning the administration, 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 or concerning the educational system of the Borrower and programs for educational development in its territories. (b) The Borrower and the Association shall promptly inform each other of any condition which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Credit, the maintenance of the service thereof, or the performance by either of them of its obligations under this Development Credit Agreement. Section 5.03. The Borrower shall afford all reasonable opportunity for accredited representatives of the Association to visit any part of the territories of the Borrower for purposes related to the Credit. 9 ARTICLE VI Taxes and Restrictions Section 6.01. The principal of, and service charges on, the Credit shall be paid without deduction for, and free from, any taxes imposed under the laws of the Borrower or laws in effect in its territories. Section 6.02. This Development Credit Agreement shall be free from any taxes on or in connection with the execution, delivery or registration thereof, imposed under the laws of the Borrower or laws in effect in its teiritories. Section 6.03. The payment of the principal of, and service charges on, the Credit shall be free from all restrictions, regulations, controls and moratoria of any nature imposed under the laws of the Borrower or laws in effect in its territories. ARTICLE VII Remedies of the Association Section 7.01. If any event specified in Section 7.01 of the General Conditions or in Section 7.02 of this Development Credit Agreement shall occur and shall O continue for the period, if any, therein set forth, then at any subsequent time during the continuance thereof, the Association, at its option, may by notice to the Borrower declare the principal of the Credit then outstanding to be due and payable immediately together with the service charges thereon and upon any such declaration such principal and service charges shall become due and payable irn iediately, anything to the contrary in this Development Credit Agreemnt n, .hstanding. Section 7.02. For the purposes of Section 7.01 of the General Conditions the following additional event is specified: If in accordance with Section 5.01 of the 1968 Development Credit Agreement the Association shall have declared the principal of the credit extended thereunder then outstanding to be due and payable immediately. ARTICLE VIII Termination Section 8.01. The date of September 14, 1971 is hereby specified for the purposes of Section 10.04 of the General Conditions. 10 Section 8.02. The obligations of the Borrower under Sections 3.08, 4.01, 4.02 and 4.03 of this Development Credit Agreement shall cease and determine on the date on which this Development Credit Agreement shall terminate or on a date twenty years after the date of this Development Credit Agreement, whichever shall be the earlier. ARTICLE IX Amendments to the 1968 Development Credit Agreement Section 9.01. The 1968 Development Credit Agreement is hereby amended as follows: (a) Section 3.02 is deleted and the following is substituted therefor: "Section 3.02. Except as the Association shall otherwise agree, the goods to be financed out of the proceeds of the Credit shall be procured on the basis of international competitive bidding: (i) as regards the construction, equipping and furnishing of the teacher training center at Moundou, in accordance with the 'Guidelines for Procurement under World Bank Loans and IDA Credits' published by the Bank in February 1968, and in accordance with such other procedures supplementary thereto as are set forth in Schedule 3 to this Development Credit Agreement, or as shall be further agreed betwee-i the Borrower and the Association; and (ii) as regards the construction, equipping and furnishing of the Agricultural Technician Training Center at Fort Archambault, in accordance with the 'Guidelines for Procurement under World Bank Loans and IDA Credits' published by the Bank in August 1969, and in accordance with, and subject to, the provisions set forth in Schedule 3 to the Development Credit Agreement between the Borrower and the Association dated June 16, 1971." (b) The words "or (iii) if the Association, in accordance with Section 7.01 of the Development Credit Agreement between the Borrower and the Association dated June 16, 1971, shall have declared the principal of the credit extended 11 thereunder then outstanding to be due and payable immediately," are inserted between the words "Borrower" and "then" in Section 5.01. (c) A new Section 6.03 is inserted reading as follows: "The obligations of the Borrower under Sections 4.01 (b), 4.01 (c), and 4.05 (a) of this Development Credit Agreement shall cease and determine on the date on which this Development Credit Agreement shall terminate or on a date twenty-three years after the date of this Development Credit Agreement, whichever shall be the earlier." (d) Part I (ii) of Schedule 1 is deleted and the following words are substituted therefor: "(ii) an Agricultural Technician Training Center for the training of agricultural technicians at Fort Archambault, with academic and general facilities for 120 students, boarding accommodation for 100 students and housing for 7 staff members." ARTICLE X Representative of the Borrower; Addresses Section 10.01. The Ministre du Plan et de la Cooperation of the Borrower is designated as representative of the Borrower for the purposes of Section 9.03 the General Conditions. Section 10.02. The following addresses are specified for the purposes of Section 9.01 of the General Conditions: For the Borrower: Minist6re du Plan et de la Coop6ration Fort Lamy Republic of Chad For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America 12 Cable address: Indevas Washington, D.C. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Development Credit Agreement to be signed in their respective names and to be delivered in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF CHAD By /s/ Lazare Massibe Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Simon Aldewereld Vice President 13 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 amounts of the Credit to each category and the percentage of eligible expenditures so to be financed in each category: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed I. Civil works relating 1,047,000 67% of total ex- to the Technical penditures Secondary School and Vocational Training Center II. Civil works relating 101,000 84% of total ex- to the Agricultural penditures Technician Training Center III. Furniture and equip- 325,000 74% of total ex- ment penditures IV. Professional fees 138,000 100% of total ex- penditures V. Project administra- 150,000 100% of total ex- tion penditures VI. Study of young farmer 15,000 100% of total ex- training schemes penditures VII. Unallocated 424,000 TOTAL 2,200,000 14 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures for goods produced in, or services supplied from, the territories, and in the currency, of any country other than the Borrower; provided, however, that if the currency of the Borrower is also that of another country in the territories of which goods are produced or from the territories of which services are supplied, expenditures in such currency for such goods or services shall be deemed to be "foreign expenditures"; (b) the term "local expenditures" means expenditures in the currency of the Borrower, or for goods produced in, or services supplied from, the territories of the Borrower; and (c) the term "total expenditures" means the aggregate of foreign and local expenditures. 3. Notwithstanding the provisions of paragraph I above, no withdrawals shall be made in respect of: (a) expenditures prior to the date of this Development Credit Agreement; (b) payments for taxes imposed under the laws of the Borrower or laws in effect in its territories on goods or services, or on the importation, manufacture, procurement or supply thereof. To the extent that the amount represented by the percentage set forth in the third column of the table in paragraph I above in respect of any Category would exceed the amount payable net of all such taxes, such percentage shall be reduced to ensure that no proceeds of the Credit will be withdrawn on account of payments for such taxes; and (c) expenditures incurred in connection with the construction, furnishing and equipping of the Agricultural Technician Training Center under Categories II, III, IV and V of paragraph I above, until the proceeds of the credit allocated under the 1968 Development Credit Agreement to such Agricultural Technician Training Center shall have been fully disbursed. 4. Notwithstanding the allocation of an amount of the Credit set forth in the second column of the table in paragraph I above: (a) if the estimate of the expenditures under any Category shall decrease, the amount of the Credit then allocated to such Category and no longer required 15 therefor will be reallocated by the Association by increasing correspondingly the unallocated amount of the Credit; (b) if the estimate of the expenditures under any Category shall increase, the percentage set forth in the third column of the table in paragraph I above in respect of such expenditures shall be applied to the amount of such increase, and a corresponding amount will be allocated by the Association, at the request of the Borrower, to such Category from the unallocated amount of the Credit, subject, however, to the requirements for contingencies, as determined by the Association, in respect of any other expenditures. 5. Notwithstanding the percentages set forth in the third column of the table in paragraph I above, if the estimate of total expenditures under any Category shall increase and no proceeds of the Credit are available for reallocation to such Category, the Association may, by notice to the Borrower, adjust the percentage then applicable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 16 SCHEDULE 2 Description of the Project The Project consists of the following Parts: A. (i) The construction of a technical secondary school at Fort Lamy for the training of technicians and skilled craftsmen, with academic and general facilities for 360 students, boarding accommodation for 200 students and housing for 10 staff members. (ii) The conversion and expansion of the existing technical school at Fort Archambault into a vocational training center for the training of semi-skilled office and industrial workers, with academic and general facilities for 120 students, boarding accommodation for 60 students and housing for 3 staff members. (iii) The construction of an Agricultural Technician Training Center for the training of agricultural technicians at Fort Archambault, with academic and general facilities for 120 students, boarding accommodation for 100 students and housing for 7 staff members. B. The equipping and furnishing of the school and training centers referred to in Part A. C. The carrying out of a study to evaluate young farmer training schemes. The Project is expected to be completed by June 30, 1975. 17 SCHEDULE 3 Procurement A. Contracts for Civil Works With respect to all contracts for civil works: 1. Contractors shall be prequalified in accordance with paragraph 1.3 of the Guidelines. 2. (a) Before inviting bids, the Borrower shall send to the Association for its comments: (i) a description of the proposed international advertising coverage to ensure international competitive bidding, draft bid notices, prequalification questionnaires and description of prequalification procedures; (ii) the proposed selected list of prequalified contractors which the Borrower intends to invite to bid, together with a statement of their qualifications and of the reasons for the exclusion of any applicant for prequalification; (iii) the report and recommendations of the consultants referred to in Section 3.02 of this Development Credit Agreement on the prequalification data submitted and the proposed selected list of prequalified contractors; (iv) the draft bidding documents and draft contracts; and (v) a list of all contracts for civil works required for carrying out the Project, indicating the estimated value of each contract and the forecast timetable for bids and awards of such contract. The contracts will be grouped in such a way as to encourage international competitive bidding. The invitations to bid for the educational institutions included in the Project will, inter alia, specify that the bidder may submit offers in respect of any institution or of all of them, together with related facilities, or any combination thereof, the bids therefor to be opened simultaneously and the Borrower to have the option of awarding 18 to one contractor one contract in respect of all the institutions and facilities, or separate contracts in respect of the various institutions and facilities to different contractors. (b) The Borrower shall make such additions or deletions in such proposed selected list of prequalified contractors and such modifications in such draft bidding documents and draft contracts as the Association shall reasonably request. Any further modification to the bidding do,uments shall require the Association's concurrence before it is issued to the prospective bidders. 3. After bids have been received and evaluated, the Borrower shall, before a final decision on the award is made, inform the Association of the name of the bidder to whom it intends to award the contract and shall furnish to the Association, in sufficient time for its review, a detailed report by the said consultants on the evaluation and comparison of the bids received, together with the recommendations for award of the said consultants, and the reasons for the intended award. The Association shall promptly inform the Borrower whether it has any objection to the intended award on the ground that it would be inconsistent with the provisions of the Guidelines or with this Development Credit Agreement or, in respect of the Agricultural Training Center, with the 1968 Development Credit Agreement and shall state the reasons for any objections it may have. 4. If the contract shall be awarded over the Association's reasonable objection or if its terms and conditions shall, without the Association's concurrence, materially differ from those on which bids were asked, no expenditure thereunder shall be financed out of the proceeds of the Credit. 5. Promptly after a contract has been awarded, and before submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, a conformed copy of the contract shall be sent to the Association. 6. The Borrower shall not agree to any proposed change in a contract for civil works involving a price increase of more than 10% of the original contract price or $25,000 equivalent, whichever is less, without the prior written approval of the Association. B. Contracts for Furniture and Equipment 1. With respect to all contracts for furniture and equipment: (a) The Borrower shall, before inviting bids, send to the Association for its comments the following: 19 (i) lists of all items of furniture and equipment required for the Project showing the specifications and the estimated unit and total price of each item. Items will be indexed, coded and numbered for identification with the educational institution in question and the spaces for which they are required. The items to be purchased will be grouped so as to permit bulk procurement as shall be consistent with sound technical and procurement practices. Insofar as practicable, contracts for such items will be for not less than $10,000 equivalent; and (ii) draft standard documents for inviting tenders, forms of contracts and description of the method to be used for obtaining bids on an international basis. (b) Amendments of such lists or documents which may be made from time to time shall also be submitted to the Association for comments. 2. Procurement will be limited to those items of furniture and equipment specified in the approved lists mentioned in subparagraph B. 1. (a) (i) above and identified in contract documents by the same indices, codes and numbers as in the lists referred to in such subparagraph. 3. For the purpose of evaluating goods and associated services included in Category III of the table set out in paragraph I of Schedule 1 to this Development Credit Agreement, bid prices shall be determined and compared in accordance with the following rules: (a) The term "Local Bid" means a bid submitted by a manufacturer established in the territories of the Borrower for goods manufactured or processed to a substantial extent (as reasonably determined by the Association) in such territories; any other bid shall be deemed to be a "Foreign Bid". (b) The bid price under a Local Bid shall be the sum of the following amounts: (i) the ex-factory price of such goods; and (ii) inland freight, insurance and other costs of delivery of such goods to the place of their use or installation. (c) For the purpose of comparing any Foreign Bid with any Local Bid, the bid price under a Foreign Bid shall be the sum of the following amounts: 20 (i) the c.i.f. port of entry in Chad price of such goods; (ii) the amount of any taxes on the importation of such goods into the territories of the Borrower which generally apply to non-exempt importers, or 15% of the amount specified in (i) above, whichever shall be the lower; and (iii) inland freight, insurance and other costs of delivery of such goods to the place of their use or installation. (d) If the price of the goods offered under the lowest evaluated Local Bid is equal to or lower than the price of the lowest evaluated Foreign Bid, then the lowest evaluated Local Bid may be considered the lowest evaluated bid for the purposes of paragraph 3.9 of the Guidelines. 4. If a contract is intended to be awarded to a bidder other than the bidder whose bid is the lowest evaluated bid within the meaning of the foregoing paragraph, or if the contract involves a price difference of 10% or more from the original estimate as shown pursuant to subparagraph B. 1. (a) (i) above, the Borrower shall, after the bids have been evaluated and before making the awards, send to the Association in sufficient time for its review, a summary and analysis thereof and a brief justification of the Borrower's decision on the award. The Association shall promptly inform the Borrower whether it has any objection to the intended award on the ground that it would be inconsistent with the provisions of the Guidelines or with this Development Credit Agreement or, in respect of the Agricultural Training Center, with the 1968 Development Credit Agreement and shall state the reasons for any objections it may have. 5. If the contract shall be awarded over the Association's reasonable objection or if its terms and conditions shall, without the Association's concurrence, materially differ from those on which bids were asked, no expenditure thereunder shall be financed out of the proceeds of the Credit. 6. Promptly after a contract has been awarded and before submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, the Borrower shall send to the Association: (a) a certificate signed by the Project Director that the goods tendered for are in accordance with the quantities and specifications in the lists approved by the Association; and (b) a conformed copy of the contract.