India - Education Project : Credit 0342 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 342 IN Development Credit Agreement (Education Project) BETWEEN INDIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED NOVEMBER 10, 1972 CONFORMED COPY CREDIT NUMBER 342 IN Development Credit Agreement (Education Project) BETWEEN INDIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED NOVEMBER 10, 1972 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated November 10, 1972, between INDIA, acting by its President (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) The 'orrower has requested the Association to assist in the financing of the Project described in Schedule 2 to this Agreement by extending the Credit as hereinafter provided; (B) By an agreement of even date herewith between the Association, the State of Assam, acting by its Governor, and the State of Bihar, acting by its Governor, the State of Assam and the State of Bihar have each agreed to undertake certain obligations in respect of the carrying out of the Project; (C) By an agreement of even date herewith between the Association, Assam Agricultural University and Rajendra Agricultural University of Bihar, certain obligations in respect of the carrying out of the Project, have been undertaken by Assam Agricultural University and Rajendra Agricultural University of Bihar; and (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 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 following modifications thereof (said General Conditions Applicable to Development Credit Agreements of the Association, as so modified, being hereinafter called the General Conditions): (a) Section 5.01 is deleted; 4 (b) Section 6.02(h) is deleted and Section 6.02(i) becomes 6.02(h); (c) I Section 2.01, the following paragraph is substituted for paragraph 5: "5. The term 'Borrower' means India, acting by its President." (d) In Section 2.01, the following paragraph is added after paragraph 12: "13. The terms 'Project Agreement' and 'Assam and Bihar Agreement' have the meanings set forth in the Development Credit Agreement." (e) In Section 6.06 the words "the Project Agreement and the the Assam and Bihar Agreement" are added after the words "the Development Credit Agreement". 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) "Assam" means the State of Assam, a state of India, acting by its Governor, or any successor thereof; (b) "Bihar" means the State of Bihar, a state of India, acting by its Governor, or any successor thereof; (c) "Assam Agricultural University" means the Assam Agricultural University established and incorporated under the Assam Agricultural University Act, 1968; (d) "Bihar Agricultural University" means the Rajendra Agricultural University of Bihar established and incorporated under the Rajendra Agricultural University Act, 1971; (e) "the Universities", "the University" and other verbal connotations thereof mean Assam Agricultural University and/or Bihar Agricultural University, as the case may require; (f) "ICAR" means the Indian Council of Agricultural Research of the Borrower's Ministry of Agriculture or any successor thereof; 5 (g) "Central Project Unit" means the Education Division of ICAR as organized for the purposes of the Project in accordance with Schedule 3 hereto; (h) "Project Units" means thL respective project units established at the Universities as organized for the purposes of the Project in accordance with Section 2.10 of, and Part I of Schedule 2 to, the Project Agreement; (i) "Project Agreement" means the agreement of even date herewith between the Association and the Universities, and any schedule thereto, as the same may be amended from time to time; and (j) "Assam and Bihar Agreement" means the agreement of even date herewith between Assam, Bihar and the Association, as the same may be amended from time to time. 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 dollars ($12,000,000). 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 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 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. Section 2.03. (a) Except as the Association shall otherwise agree, the goods and services required for Part A of the Project and to be financed out of the proceeds of the Credit shall be procured by the Universities pursuant to the provisions set forth or referred to in Section 2.04 of the Project Agreement. (b) Except as the Association shall otherwise agree, the goods and services (other than services of consultants and specialists) rcquired for Part C of the Project and to be financed out of the proceeds of the credit, shall be procured on the 6 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. Section 2.04. The Closing Date shall be December 31, 1979 or .-ch 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 February I and August 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each February 1 and August I commencing February 1, 1983 and ending August 1, 2022, each installment to and including the installment payable on August 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 Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall carry out Part C of the Project with due diligence and efficiency and in conformity with sound administrative, financial, engineering and educational practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. (b) Without any limitation or restriction upon any of its other obligations under this Agreement, the Borrower shall cause the Universities to perform in accordance with the provisions of the Project Agreement all the obligations therein set forth, shall take and cause to be taken all action necessary or appropriate (including the provision of adequate funds under its Fifth Plan) to enable the Universities to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. 7 (c) The Borrower shall make available to the Universities the equivalent of the proceeds of the Credit relating to Parts A and B of the Project. Section 3.02. The Borrower shall furnish to the Association for its approval, promptly upon preparation, the lists of equipment including specifications, the contract documents and procurement schedules for Part C of the Project and any material modifications thereof or additions thereto in such detail as the Association shall reasonably request. Section 3.03. The Borrower agrees to organize the Central Project Unit in accordance with Schedule 3 hereto. ARTICLE IV Consultation, Information and Inspection Section 4.01. 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 Agreement, the performance by Assam and Bihar of their respective obligations under the Assam and Bihar Agreement, the performance by the Universities of their obligations under the Project Agreement, the administration, operations and financial condition of the Universities and, 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 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 4.02. (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 and financial condition of the Universities and, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out any part of the Project. 8 (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, the performance by either of them of its obligations under this Agreement or the performance by the Universities of their obligations under the Project Agreement. Section 4.03. 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 V Taxes and Restrictions Section 5.01. 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 5.02. This Agreement, the Assam and Bihar Agreement and the Project 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 5.03. 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 VI Remedies of the Association Section 6.01. If any event specified in Section 7.01 of the General Conditions or in Section 6.03 of this Agreement shall occur and shall 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 immediately, anything to the contrary in this Agreement notwithstanding. Section 6.02. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified: (a) Assam, Bihar or the Universities shall have failed to perform any of their respective obligations under the Assam and Bihar Agreement or the Project Agreement; (b) an extraordinary situation shall have arisen which shall make it improbable that Assam, Bihar or the Universities will be able to perform their respective obligations under the Assam and Bihar Agreement or the Project Agreement; and (c) The Assam Agricultural University Act, 1968 and the Rajendra Agricultural University Act, 1971 shall have been amended, suspended, abrogated, repealed or waived in such a way as to materially and adversely affect the ability of the Universities to carry out their obligations under the Project Agreement. Section 6.03. For the purposes of Section 7.01 of the General Ccoiditions, the following additional events are specified: (a) The events specified in paragraphs (a) and (b) of Section 6.02 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Association to the Borrower and the Universities. (b) Any event specified in paragraph (c) of Section 6.02 of this Agreement shall occur. ARTICLE VII Effective Date; Termination Section 7.01. The following events are specified as additional conditions to the effectiveness of the Development Credit Agreement within the meaning of Section 10.01(b) of the General Conditions: (a) The execution and delivery of: (i) the Assam and Bihar Agreement on behalf of Assam and Bihar, and (ii) the Project Agreement on behalf of the Universities, have been duly authorized or ratified by all necessary corporate and governmental action; 10 (b) The appointment of a qualified adviser in university administration to the Vice-Chancellor of each of the Universities; (c) The designation of the Deputy Director General for Education of ICAR as Director of the Central Project Unit; and (d) The appointment of a full-time Project Coordinator for the Central Project Unit. Section 7.02. The following is specified as an additional matter, within the meaning of Section 10.02(b) of the General Conditions, to be included in the opinion or opinions to be furnished to the Association, namely, that the Assam and Bihar Agreement and the Project Agreement have been duly authorized or ratified by, and executed and delivered on behalf of, Assam and Bihar and the Universities, and each constitutes a valid and binding obligation of Assam and Bihar and the Universities in accordance with its terms. Section 7.03. The date March 9, 1973 is hereby specified for the purpo.,es of Section 10.04 of the General Conditions. Section 7.04. The obligations of the Borrower under Sections 3.01(b) and 3.02 of this Agreement shall cease and determine on the date on which the Development Credit Agreement shall terminate or on a date twenty years aftei the date of this Agreement, whichever shall be the earlier. ARTICLE VIII Representative of the Borrower; Addresses Section 8.01. Any Secretary, Additional Secretary or Joint Secretary to the Government of India in the Ministry of Finance of the Borrower or the Director/Deputy Secretary of the Department of Economic Affairs in the Ministry of Finance of the Borrower, acting singly, is designated as representative of the Borrower for the purposes of Section 9.03 of the General Conditions. Section 8.02. The following addresses are specified for the purposes of Section 9.01 of the General Conditions: For the Borrower: The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, India Cable address: ECOFAIRS New Delhi 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. INDIA By /s / L. K. Jha Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ I.P.M. Cargill Vice President 12 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. Construction 5,000,000 60% of total expenditures II. Equipment and 3,800,000 furniture (a) directly 100% of foreign imported expenditures (b) manufactured 100% of local locally (ex- expenditures factory price) (c) imported and 65% of total procured locally expenditures III. Technical Assistance 1,250,000 100% of total expenditures IV. Unallocated 1,950,000 TOTAL 12,0000 13 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; (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 October 24, 1972; and (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. 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, subject to the provisions of subparagraph (c) hereof, 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; 14 (c) any amountz in Categories II, III and IV which are no longer required therefor shall be reallocated by the Association by increasing correspondingly the amount allocated to Category 1, II or III and the Association will increase correspondingly (up to a maximum of 100% net of taxes) the percentage of expenditures of Category I or II; and (d) if the Association shall have reasonably determined that the procurement of any item in any Category is inconsistent with the provisions of Section 2.03 of this Agreement or the procedures set forth or referred to in Section 2.04 of the Project 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 this Agreement, by notice to the 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 I or 11(c) 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. 15 SCHEDULE 2 Description of the Project The Project consists of the following Parts: A. construction of, and furniture and equipment for, facilities at the main and veterinary campuses of the Universities, as set out in Annex A hereto; B. technical assistance as set out in Annex B hereto, consisting of (i) specialists' services for university development and project implementation, and (ii) fellowships for faculty staff development; and C. the acquisition and installation of new and ancillary equipment for the Institute of Agriculture Statistics computer center at Pusa, Delhi. The Project is expected to be completed by December 31, 1978. 16 ANNEX A Facilities Included in Part A of the Project Assam Agricultural Bihar Agricultural University University Main Veterinary Main Veterinary Campus Campus Campus Campus (Jorhat) (Gauhati) (Pusa) (Ranchi)* Approximate gross areas in m2 A. Academic and Communal Facilities (1) General Teaching Rooms: Lecture Rooms Seminar Rooms 1,410 320 2,010 (2) Teaching and Research Laboratories for the Faculties of: Basic Science 2,500 - 2,500 Agriculture 9,730 - 9,730 Home Science 300 - 300 Veterinary (including veterinary clinic) - 12,300 - 2,400* Total 12,530 12,300 12,530 2,400* (3) Communal Facilities Library Administration Offices Health Center 9,360 2,920 9,360 Guest House Cafeteria Toilets * Under the academic and communal facilities only the veterinary clinic is included. There is no need for remodelling the existing facilities. 17 Assam Agricultural Bihar Agricultural University University Main Veterinary Main Veterinary Campus Campus Campus Campus (Jorhat) (Gauhati) (Pusa) (Ranchi)* Approximate gross areas in m2 Total Academic and Communal Facilities required 23,300 15,540 23,900 2,400* Total Academic and Communal Facilities existing and to be remodelled 6,100 4,000 - - * Total new area required 17,200 11,540 23,900 2,400 B. Farm Buildings 1,400 1,400 1,400 1,400 C. Boarding Facilities 4,680 1,755 6,240 - D. Staff Houses 5,850 1,755 13,455 2,340 * Under the academic and communal facilities only the veterinary clinic is included. There is no need for remodelling the existing facilities. 18 ANNEX B Technical Assistance Under Part B of the Project I. Specialist Services Man Years Assam Bihar 1. University Administration Adviser to the Vice-Chancellor 3 3 2. Faculty of Home Science Adviser to Dean/Specialist 3 3 3. Faculty of Veterinary Sciences and Animal Husbandry Adviser to Dean/Specialist 2 2 4. Project Administration Project Unit architects 5 5 II. Fellowships 5. Fellowships for the Faculties of Agricul- 78 40 ture, Home Science, Basic Sciences and Veterinary Science 19 SCHEDULE 3 Central Project Unit 1. The Director of the Central Project Unit shall be ICAR's Deputy Director General for Education. The Director will be assisted by a Project Coordinator appointed on a full time basis and with such technical and supporting staff as are necessary to carry out the Project. 2. The Central Project Unit shall provide overall guidance and supervision in project implementation and shall also have overall responsibility for the execution of the Project. 3. The Central Project Unit shall serve as a channel for requests from the Project Units to the Borrower and the Association and vice versa.