Philippines - Second Education Project : Credit 0349 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 349 PH Development Credit Agreement (Second Education Project) BETWEEN REPUBLIC OF THE PHILIPPINES AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 5, 1973 CONFORMED COPY CREDIT NUMBER 349 PH Development Credit Agreement (Second Education Project) BETWEEN REPUBLIC OF THE PHILIPPINES AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 5, 1973 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated January 5, 1973, between REPUBLIC OF THE PHILIPPINES (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). ARTICLE I General Conditions; Definitions Section 1.01. The parties to this 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 Sections 5.01 and 6.02(h) thereof and to the renumbering of Section 6.02(i) into 6.02(h) thereof (said General Conditions Applicable to Development Credit Agreements of the Association, as so modified, 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. ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to twelve million seven hundred thousand dollars (S 12,700,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule I to this Agreement, as such Schedule shall be amended from time to time, for expenditures made (or, if the Borrower and 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 under the 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. 4 Section 2.03. Except as the Association shall otherwise agree, the goods and services (other than services of consultants) required for 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 April 1972 and in accordance with, and subject to, the provisions set forth in Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1978 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. Section 2.06. Service charges shall be payable semi-annually on March I and September 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each March 1 and September 1 commencing March 1, 1983 and ending September 1, 2022, each installment to and including the installment payable on September 1, 1992 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 administrative, financial, technical and educational policies and practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. (a) In order to assist the Borrower in the preparation of design of buildings and other facilities included in the Project and in the supervision of the construction work included in the Project, the Borrower shall employ architects acceptable to the Borrower and the Association upon terms and conditions mutually satisfactory to the Borrower and the Association. 5 (b) The Borrower shall prepare and submit to the Association for comment, promptly upon their preparation, the preliminary architectural drawings and the outline of the specifications for the buildings and facilities included in the Project and shall incorporate such amendments as the Association shall reasonably request. Section 3.03. In carrying out the Project, the Borrower shall employ or cause to be employed contractors mutually acceptable to the Borrower and the Association upon terms and conditions satisfactory to the Borrower and the Association. Section 3.04. (a) In carrying out the Project, the Borrower shall establish and operatL a Project unit in the Department of Education with such functions, powers and responsibilities as are described in Schedule 4 to this Agreement. (b) The Borrower agrees that the staff of the Project unit shall include, inter alios, a Proiect executive director, a Project architect, a Project educator, a Project financiai officer and a Project procurement officer, all to hav: qualifications, duties and responsibilities mutually satisfactory to the Borrower and the Association, and to be appointed in consultation with the Association, provided, that the Project procurement officer shall be employed within six months after the date of this Agreement or such later date as shall be agreed to between the Borrower and the Association. (c) In carrying out Part E of the Project, the Borrower shall appoint qualified and experienced experts acceptable to the Borrower and the Association upon terms and conditions (including without limitation as to terms of reference, timing and duration), mutually satisfactory to the Borrower and the Association. Section 3.05. In carrying out the Project, the Borrower shall establish and maintain a special fund, and shall adjust and replenish the amount of the special fund at monthly intervals to a level at least equivalent to the estimated amount of payments to be made for goods and services required for the Project less the estimated amounts of payments to be made directly by the Association to the suppliers, consultants or contractors for such goods and services, during the next three months' period. Section 3.06. (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. 6 (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 3.07. (a) The Borrower shall furnish to the Association, promptly upon their preparation, the plans, specifications, reports, contract documents and construction 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: (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 Credit, and to disclose the use thereof in the Project; (ii) shall enable the Association's accredited representatives to inspect the Project, the goods financed out of the proceeds of the Credit and any relevant records and documents; and (iii) shall 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 3.08. 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 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. ARTICLE IV Other Covenants Section 4.01. (a) The Borrower shall cause each entity and institution included in the Project to carry on its operations and manage its affairs in accordance with sound administrative, financial, technical and educational policies and practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) The Borrower shall cause each entity and institution included in the Project to operate and maintain its plant, equipment, properties and facilities and make all necessary renewals and repairs thereof, all in accordance with sound engineering and financial practices. 7 (c) Except as the Association shall otherwise agree, title to all goods financed in whole or in part with the proceeds of the Credit shall be obtained free and clear of all liens. Section 4.02. 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 4.03. Within twelve months after the date of this Agreement, the Borrower shall make arrangements, mutually satisfactory to the Borrower and the Association, to obtain such technical assistance as described in Schedule 5 to this Agreement. Section 4.04. Except as the Association shall otherwise agree, the Borrower shall: (a) complete, within two years after the date of this Agreement, a study on national and regional manpower requirements in the agricultural sector, on the capacity of existing agricultural training institutions, including the appropriate . location for a regional agricultural college for the Visayas, and on the most efficient means of meeting such manpower requirements; (b) ensure that, within three years after the date of this Agreement, all the agricultural high schools included in the Project other than those at Munoz and Musuan offer only courses at the secondary level, for the purpose of directing the efforts of such high schools to programs related to agricultural development; (c) formulate, within one year after the date of this Agreement, a detailed plan mutually acceptable to the Borrower and the Association, for supervised farming projects at each agricultural high school included in the Project, and subsequently implement suci plans; and (d) formulate, within one year after the date of this Agreement, a detailed plan mutually satisfactory to tiir Borrower and the Association, for supervised farming projects at each pilot village (barrio) development school included in the Project, including the provision of credit facilities to pupils of said schools, and subsequently implement such plans. Section 4.05. Except as the Association shall otherwise agree: 8 (a) the Borrower shall, within three years after the date of this Agreement, enter into arrangements with Central Mindanao University for such University to: (i) adjust its student enrollment to correspond only to areas of study for which manpower needs exist; (ii) in the field of engineering, offer only courses directly related to agricultural development; (iii) integrate business management training with the operation of its commercial farms; and (iv) include in the agricultural degree programs one extra semester of practical work. (b) the Borrower shall, within one year after the date of this Agreement, make arrangements mutually satisfactory to the Borrower and the Association with the University of the Philippines' College of Agriculture at Los Baros, to provide training for the personnel of the radio station at Central Mindanao University included in the Project, and shall ensure the implementation of such arrangements; and (c) the Borrower shall make arrangements mutually satisfactory to the Borrower and the Association with the University of the Philippines' College of Agriculture at Los Banos for the provision of technical assistance for the pilot village (barrio) development schools included in the Project, and shall ensure their implementation. Section 4.06. Except as the Borrower and the Association shall otherwise agree, the Borrower undertakes that: (a) upon completion, the Regional Manpower Training Centers included in the Project will be administered and operated by the National Manpower and Youth Council of the Borrower; and the Borrower shall ensure that until such completion its Department of Education and the said National Manpower and Youth Council coordinate their activities with regard to such Regional Manpower Training Centers; (b) it will train, within three years after the date of this Agree. .ent, about 150 instructors and 10 supervisors in the National Manpower Skills Training Center in Taguig Rizal, to serve as instructors in the Regional Manpower Training Centers; and 9 (c) not later than one year after the commencement of the operation of each Regional Manpower Training Center, it will submit to the Association an annual evaluation report on each of the said Centers. Section 4.07. Except as the Borrower and the Association shall otherwise agree, the Borrower shall: (a) establish a technical education governing council with appropriate representation of industry, to supervise the operation of the three technical institutes included in the Project and ensure the application of uniform curricula and examination standards to all three technical institutes; and (b) train or cause to be trained annually about 60 teachers for the technical institutes referred to in sub-section (a) hereof from 1973 through 1976. Section 4.08. The Borrower shall, within one year after the date of this Agreement, make arrangements mutually satisfactory to the Borrower and the Association, under which Central Mindanao University, Central Luzon State University, the Agricultural Productivity Commission and other relevant agencies of the Borrower will coordinate the provision of extension services in the areas to be served by the two social laboratories included in the Project. 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 the 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 any part of the Project, 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 10 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 any part of the Project. (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 the 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. 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. The 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 territories. 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 shall occur and shall continue for the period, if any, therein set forth, then at 11 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 immediately, anything to the contrary in the Development Credit Agreement notwithstanding. ARTICLE VIII Effective Date; Termination Section 8.01. The following event is specified as an additional condition to the effectiveness of the Development Credit Agreement within the meaning of Section 10.01(b) of the General Conditions, namely, that the special fund referred to in Section 3.05 of this Agreement has been established. Section 8.02. The date April 10, 1973 is hereby specified for the purposes of Section 10.04 of the General Conditions. Section 8.03. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty-five years after the date of this Agreement, whichever shall be the earlier. ARTICLE IX Representative of the Borrower; Addresses Section 9.01. The Secretary of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 9.03 of the General Conditions. Section 9.02. The following addresses are specified for the purposes of Section 9.01 of the General Conditions: For the Borrower: Secretary of Finance Department of Finance Manila, Philippines 12 Cable address: SECFINANCE Manila, Philippines For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this 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 THE PHILIPPINES By /s / Carlos P. Romulo Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s / Robert S. McNamara 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. Equipment, furniture 6,800,000 100% of foreign and educational ma- expenditures and terials 100% of ex-fac- tory cost of such goods produced locally II. Civil Works and 1,870,000 38% of total ex - professional services penditures therefor III. Technical Assistance 2,100,000 100% of total ex- for Part E of the penditures Project - interna- tional travel, re- muneration and al- lowances IV. Unallocated 1,930,000 TOTAL 12,700,000 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; 14 (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 Agreement; and (b) payments for taxes imposed directly 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. 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 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; and (c) if the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in Section 2.03 of this Agreement, no expenditures for such item shall be financed out of the proceeds of the Credit and the Association may, without in any way restricting or limiting any other right, power or remedy of the Association under the Development Credit Agreement, by notice to the 15 Borrower, cancel such amount of the Credit as in the Association's reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Credit. 5. Notwithstanding the percentages set forth in the third column of the table in paragraph I above, if the estimate of total expenditures under Category II 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 is part of an education development program of the Borrower to reform its education system and to meet manpower requirements of its economic development. The Project consists of: Part A. improvement and strengthening of curricula research, educational material development, and teacher training, including: (1) equipping and furnishing of a Curriculum Coordinating Unit, to be established within one year after the date of this Agreement, in the Office of Planning and Research, in the Department of Education, having the functions, powers and responsibilities as described in Annex 1 to this Schedule; (2) establishment of an Education Development Council within one year after the date of this Agreement; construction, equipping and furnishing of an Education Development Center comprising the Science Education Center of the University of the Philippines and the Social Studies Education Center of the Department of Education, with the functions, powers and responsibilities described in Annex 1 to this Schedule; and (3) construction, equipping and furnishing of two new Regional Science Teaching Centers at the Northern Luzon Teachers' College and at the Central Luzon Teachers' College, and the provision of additional equipment for the two existing Centers at Zamboanga State College and West Visayas State College. Part B. innovation in and improvement of agricultural education and training to provide personnel to meet manpower requirements in the agricultural sector, including: (1) provision of equipment for thirteen existing agricultural high schools and the provision of construction material and agricultural supplies for the implementation of supervised farming programs and practically oriented curricula; (2) expansion of the Central Mindanao University and the Central Luzon State University; and 17 (3) construction, equipping and furnishing of six new pilot village (barrio) development schools in villages (barrios) in the vicinity of the Central Mindanao University and the Central Luzon State University. Part C. improvement and strengthening industrial training to provide skilled personnel to meet manpower requirements in the industrial sector, including: (1) construction, equipping and furnishing of two new technical institutes at Taguig, Rizal and Bacolod and expansion of an existing technical institute at Iligan; and (2) construction, equipping and furnishing ten new Regional Manpower Training Centers. Part D. pre-service and in-service training of extension personnel and improvement and strengthening of agricultural extension work, including: (1) construction, equipping and furnishing two new social (extension) laboratories in villages (barrios) in the vicinity of the Central Mindanao University and the Central Luzon State University to provide pre-service and in-service training for agricultural extension workers and improvement of extension work in the area; and (2) construction, equipping and furnishing of a new radio station at the Central Mindanao University and provision of additional equipment for the existing radio station at the College of Agriculture, University of the Philippines, to disseminate agricultural information to agricultural extension workers and to farmers. Part E. technical assistance: The provision of specialist services for strengthening educational planning and management, for curricula development and evaluation, for staff for the agricultural colleges and technical institutes and for project implementation, and of fellowships for training abroad. 18 The specific institutions included in the Project, their location and planned capacity, and the approximate areas to be constructed for each institution are set forth in Annex 2 to this Schedule and the details of technical assistance under Part E hereof are described in Annex 3 to this Schedule, as such Annexes may be amended from time to time by agreement between the Borrower and the Association. Parts A to D of the Project are expected to be completed by December 31, 1977 and Part E of the Project is expected to be completed by December 3 1, 1978. 19 ANNEX 1 TO SCHEDULE 2 A. Functions, Powers and Responsibilities of the Curriculum Coordinating Unit in the Office of Planning and Research 1. Identify existing activities in curricula research; 2. Effect coordination between all the agencies engaged in curricula research; 3. Organize inter-agency conferences; 4. Identify areas of deficiency; 5. Conduct curricula research in educational areas where no other agency is engaged; 6. Carry out a pre-investment study to draw up a textbook development program to include recommendations on production, distribution and financing; 7. Analyze existing textbooks and instructional materials; determine, in consultation with subject matter specialists in the proposed Education Development Center, the Department of Education, the universities and schools, the need for new textbooks and their required content; B. Functions, Powers and Responsibilities of the Education Development Center I. Conduct research in the fields of science, mathematics and social studies curricula development; 2. Prepare materials, including books and teaching manuals and develop prototype equipment for science, mathematics and social studies teaching; 3. Organize testing of the effectiveness of the materials in schools; 4. Effect dissemination of the results of its research and development work; 5. Train instructors for Regional Science Teaching Centers and teacher training colleges; 20 6. Conduct in-service programs initially in science and mathematics and similar programs in social studies for elementary and secondary teachers; other areas to be covered at a later date; these teachers would subsequently conduct conferences and seminars for other teachers in the areas from which they come; 7. Assist in university pre-service teacher courses and other courses in science, mathematics and social studies; 8. Maintain liaison through the Curriculum Coordinating Unit with other agencies engaged in curricula research. 9. Assist the Department of Education and other relevant agencies in the dissemination of books, teaching manuals and equipment for science, mathematics and social studies teaching. 21 ANNEX 2 TO SCHEDULE 2 List of the Educational Institutions Reference Approximate under Part Gross Area of Additional A of the Construction Student Project Location (square meters) Places (1) Manila - - (2) Diliman, Quezon City 2,860 - (3) Regional Science Teaching Centers Loag City (Ilocos Norte) 1,248 - Bayambang (Pangasinan) 1,248 - Iloilo City (Iloilo) - - Zamboanga City (Zamboanga) - - Reference under Part B of the Project (1) Agricultural High Schools Pasuquin (Ilocos Norte) Lagangilang (Abra) Bayombong (Nueva Viscaya) San Marcelino (Zambales) Alcate (Oriental Mindoro) Siniloan (Laguna) Pontevedra (Capiz) Cebu City (Cebu) Kabankalan (Negros Occidental) Butuan (Agusan del Norte) Liloy (Zamboanga del Norte) Munoz (Nueva Ecija) (C.L.S.U.) Musuan (Bukidnon) (C.M.U.) (2) Agricultural Colleges Central Mindanao University, Musuan (Bukidnon) 6,805 450 Central Luzon State University, Munoz 8,776 200 (Nueva Ecija) (3) Pilot Village (Barrio) Development Schools Porais (Nueva Ecija) (C.L.S.U.) 528 100 Bibiclat (Nueva Ecija) (C.L.S.U.) 528 100 Palasupis (Nueva Ecija) (C.L.S.U.) 528 100 Dangcagan (Bukidnon) (C.M.U.) 528 100 Kiokong (Bukidnon) (C.M.U.) 528 100 Lantapan (Bukidnon) (C.M.U.) 528 100 Reference under Part C of the Project (1) Technical Institutes Taguig (Rizal) 5,928 1,200 Bacolod City (Negros Occidental) 3,595 800 Iligan City (Lanao del Norte) - 800 22 Approximate Gross Area of Additional Construction Student Location (square neters) Places (2) Regional Manpower Training Centers San Fernando (La Union) 1,840 Mariveles (Zambales) 3,231 - Marikina (Rizal) 1,658 - Taguig (Rizal) 1,580 - Binan (Laguna) 1,788 - Naga City (Camarines Sur) 1,528 - Cebu City (Cebu) 1,762 - Bacolod City (Negros Occidental) 1,840 - Iligan City (Lanao del Norte) 1,840 - Davao City 1,593 - Reference under Part D of the Project (1) Social (Extension) Laboratories Munoz (Nueva Ecija) (C.L.S.U.) 348 Maramag (Bukidnon) (C.M.U.) 348 (2) Agricultural Radio Stations Los Banos (Laguna) (U.P.) Musuan (Bukidnon) (C.M.U.) 163 23 ANNEX 3 TO SCHEDULE 2 Technical Assistance A. Specialist Services (a) Educational Management, Curricula Reform and Textbook Development About 5 man-years for 4 specialists to work in the Office of Planning and Research of the Department of Education in data processing, vocational education, school and facility design, and textbook writing; and 2 man-years for a specialist in the development of social studies to work in the Educational Development Center included in the Project. (b) Agricultural Education About 40 man-years for 10 specialists at the Central Luzon State University and 7 specialists at the Central Mindanao University to assist in institutional planning, curricula development and teaching. (c) Technical Education About 13 man-years for 4 specialists for the technical institutes included in the Project to plan curricula and assist in teaching. (d) Project Implementation About 2 man-years for a Project procurement specialist to be responsible for procurement of equipment, furniture, materials and supplies required for the Project. B. Fellowships for Overseas Studies (a) Educational Management and Research About 8 man-years for 3 fellowships for staff of the Office of Planning and Research of the Department of Education. 24 (b) Agricultural Education About 40 man-years for 11 fellowships for staff of the Central Luzon State University and 8 fellowships for staff of the Central Mindanao University. (c) Technical Education About 8 man-years for 16 six-month fellowships for staff of the technical institutes included in the Project. 25 SCHEDULE 3 Procurement A. Contracts for Civil Works 1. With respect to any contract for civil works estimated to cost the equivalent of $40,000 or more: (a) If bidders are required to prequalify, the Borrower shall, before qualification is invited, inform the Association in detail of the procedure to be followed and shall introduce such modifications in said procedure as the Association shall reasonably request. The list of prequalified bidders, together with a statement of their qualifications and of the reasons for the exclusion of any applicant for prequalification, shall be furnished by the Borrower to the Association for its comments before the applicants are notified and the Borrower shall make such additions to or deletions from the said list as the Association shall reasonably request. (b) Before bids are invited, the Borrower shall furnish to the Association, for its comments, a list of all contracts for civil works to be let in carrying out the Project indicating the estimated value of each contract and the forecast timetable for award, 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 Lidding, and shall make such modifications in the said documents or procedure as the Association shall reasonably request. Any further modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. The bidding documents shall, inter alia, specify that the bidder may submit bids in respect of individual educational institutions included in the Project or a group of them included in the bid invitation, together with related facilities or any combination thereof, the bids therefor to be opened simultaneously and the Borrower to have the option of awarding to one contractor one contract in respect of all such institutions and facilities, or separate contracts in respect of several such institutions and facilities to different contractors. (c) 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 Project Unit 26 referred to in Section 3.04 of this Agreement on the evaluation and comparison of the bids received, together with the recommendations for award of the said Project Unit, and the reasons for the intended award. The Association shall, if it determines that the intended award would be inconsistent with the procedures set forth or referred to in Section 2.03 of this Agreement, promptly inform the Borrower and state the reasons for such determination. (d) The terms and conditions of the contract shall not, without the Association's concurrence, materially differ from those on which bids were asked. (e) Two conformed copies of the contract shall be furnished to to the Association promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of any such contract. 2. With respect to any other contract for civil works the Borrower shall furnish to the Association, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of any such contract, two conformed copies of such contract, together with the analysis of bids, recommendations for award and such other information as the Association shall reasonably request. The Association shall, if it determines that the award of the contract is not consistent with the procedures set forth or referred to in Section 2.03 of this Agreement, promptly inform the Borrower and state the reasons for such determination. B. Contracts for Materials, Furniture, Equipment and Books 1. Within two years after the date of this Agreement and before inviting bids, the Borrower shall send to the Association for its approval, the lists of materials, furniture, equipment and books required for the Project showing the specifications and the estimated unit and total price. Items shall be indexed, coded and numbered for identification regarding the respective educational institution and the spaces for which they are required. Insofar as practicable, contracts for such items shall be for not less than $40,000 equivalent. Amendments to such lists which may be made from time to time shall also be submitted to the Association for approval. 2. Before bids are invited, the Borrower shall furnish to the Association, 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 procedure as the Association shall reasonably request. Any further 27 modification to the bidding documents shall require the Association's concurrence before it is issued to the prospective bidders. 3. Procurement shall be limited to those items of materials, furnituie, equipment and books which are specified in the approved lists mentioned in paragraph B.1 above and which shall be identified in contract documents by the same indexes, codes and numbers as in such lists. 4. The Borrower shall send to the Association, after bids have been evaluated, a summary and analysis thereof, and obtain the Association's approval before awarding a contract. In case of a contract to be awarded to other than the lowest bidder, or of a contract involving a price of 10% or more above the original estimate as submitted under paragraph B. 1 above, the Borrower shall send to the Association a brief justification by the project unit of the proposed award. 5. Promptly after bids have been evaluated and the contract has been awarded, the Borrower shall furnish the Association with the following: (i) a certificate signed by the Project Director that the goods contracted for are in accordance with the quantities and specifications in the list approved by the Association under paragraph B.1 above; and (in two conformed copies of the contract awarded, promptly after its execution and prior to the submission to the Association of the first application for withdrawal of funds from its Credit Account in respect of such contract. 6. With respect to any contract for materials, furniture, equipment or books estimated to cost less than $40,000 equivalent, the Borrower may procure such goods under such contract on a competitive basis in accordance with the normal procurement procedures of the Borrower, provided that the aggregate cost of the goods to be procured in accordance with this procedure shall not exceed $250,000 equivalent. C. Evaluation of Bids for Materials, Furniture, Equipment and Books For the purpose of evaluating bids for materials, equipment, furniture, book and associated services included in Category I of the table set out in paragraph 1 of Schedule 1 to this Agreement, the following rules shall apply: 28 (a) Definitions: (i) "Type A Bid" means a bid submitted by a bidder entitled to preference under Republic Act No. 6142 of the Borrower. (ii) "Type B Bid" means a bid for goods produced, manufactured or processed in the territories of the Borrower submitted by a bidder who is not entitled to preference under Republic Act No. 6142 of the Borrower. (iii) "Type C Bid" means any bid other than a Type A Bid or a Type B Bid. (iv) "Ex-factory price" means the price at factory exclusive of national and local sales tax due on the sale by the bidder to the Borrower. (v) "C.I.F. (Manila) price" means the invoice value of the goods, including freight, postage, insurance, commission and excluding customs duties and any other taxes due on the importation of such goods to the territories of the Borrower. (b) Base of Comparison: (i) Type A Bid. the ex-factory price of such goods plus inland freight, insurance and other costs of delivery of the goods to the place of their use or installation. (ii) Type B Bid or Type C Bid: the ex-factory or c.i.f. (Manila) price of such goods, respectively, plus 15% thereof, plus inland freight, insurance and other costs of delivery of the goods to the place of their use or installation. 29 SCHEDULE 4 The Project Unit The Project Unit shall have the following functions, powers and responsibilities for the execution of the Project: (a) the coordination of the work of the various agencies concerned in the Project; (b) the selection, briefing, coordination and supervision of architectural consultants and contractors referred to in Sections 3.02 and 3.03 of this Agreement; (c) the approval of the civil works design of the educational institutions included in the Project; (d) the preparation of detailed lists of the furniture, equipment and books required for Parts A, B, C and D of the Project; (e) the procurement of civil works, furniture, equipment and books -4- including the preparation of bidding documents, the analysis of bids and the making of recommendations regarding the award of contracts; (f) the regular inspection of all construction work and acceptance of the consultants' certification of completion of works; (g) the keeping of records, including financial records, of the execution of the Project, and the preparation of regular reports to the Association; (h) the selection, briefing, coordination and supervision of the specialists provided under Part E of the Project; and (i) the selection, arrangement and supervision of the fellowships provided under Part E of the Project. 30 SCHEDULE 5 Technical Assistance Referred to in Section 4.03 A. Specialist Services (a) Educational Planning and Research About 5 man-years to assist in the operation of an Office of Planning and Research in the Department of Education. (b) Curricula Reform and Material Preparation About 3 man-years to assist in science teaching and curricula development in the Science Education Center which is part of the Education Development Center included in the Project. (c) Manpower Training About 23 man-years of specialist services for curricula development and teaching in the 10 Regional Manpower Training Centers included in the Project. B. Fellowships for Overseas Studies Manpower Training About 6 man-years of fellowships for curricula development and teaching in the 10 Regional Manpower Training Centers included in the Project.