Sierra Leone - Second Education Project : Credit 0573 - Credit Agreement - 2 - Conformed

SPECIAL ACTION CREDIT NUMBER 52 SL OFFICIAL DOCUMENTS Special Action Credit Agreement (Second Education Project) between SIERRA LEONE and INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL ACTION ACCOUNT established with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMMUNITY Dated la 30 , 1980 SPECIAL ACTION CREDIT NUMBER 52 SL SPECIAL ACTION CREDIT AGREEMENT AGREEMENT, dated Ntj 30 , 1980, between SIERRA LEONE (the Borrower) and INTERNATIONAL DEVELOPMENT ASSO- CIATION as ADMINISTRATOR of the Special Action Account established with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMMUNITY. WHEREAS (A) by the Agreement, dated May 2, 1978, between the International Development Association (hereinafter called IDA) and the European Economic Community and its Member States there has been established by IDA a Special Action Account constituted by the funds which shall be contributed by the Member States of the European Economic Community and administered by IDA, acting as Administrator of such Special Action Account, for the purpose of, and in accordance with, the provisions of said Agreement; (B) the Borrower has requested of the Administrator assis- tance from the resources of the Special Action Account in the financing of a project described in Schedule 2 to this Agreement and the Administrator has determined that such assistance would be in accordance with the provisions of the Agreement of May 2, 1978 referred to above; and (C) by an agreement dated July 29, 1975 (hereinafter called the IDA Credit Agreement) IDA agreed to make a development credit (hereinafter called the IDA Credit) to the Borrower in an aggre- gate principal amount equivalent to 7,250,000 to assist in financ- ing a Second Education Project on the terms and conditions therein set forth; WHEREAS the Administrator has agreed, on the basis inter alia of the foregoing, to extend the Special Action 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 International Development Association, dated March 15, 1974, with the same force and effect as if they -2- were fully set forth herein, subject, however, to the following modifications thereof (said General Conditions Applicable zo Development Credit Agreements of the International Development Association, as so modified, being hereinafter called the General Conditions): (a) the term "Association", wherever used in the General Conditions, means the International Development Association acting as the Administrator of the Special Action Account referred to in the Preamble to this Special Action Credit Agreement; (b) the terms "Development Credit Agreement" and "Credit", wherever used in the General Conditions are amended to read "Special Action Credit Agreement" and "Special Action Credit", respectively; (c) Sections 4.01, 4.02, 4.03, 4.04 and the second sentence of Section 5.01 are deleted; and (d) in Sections 6.02 and 7.01, the term "Association" shall also include the International Development Association acting in its own capacity. Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Member States" means the Member States of the European Economic Community, i.e. Belgium, Denmark, The Federal Republic of Germany, France, Ireland, Italy, Luxembourg, The Netherlands and The United Kingdom; (b) "Administrator" means the International Development Association acting as Administrator of the Special Action Account referred to in the Preamble to this Special Action Credit Agree- ment; (c) "Prior Credit Agreement" means the Development Credit Agreement (Eduation Project) No. 170 SL, dated January 5, 1970, between the Borrower and the Association, as such agreement may have been or may be amended from time to time, and such term includes all agreements supplemental to such agreement and all schedules to such agreement; - 3 - .d) "Project Unit" means the project unit referred to ii Section 3.02 (a) of this Agreement; and (e) "IPAM" means the Institute of Public Administration and Management referred to in Part A (vii) of the Project. ARTICLE II The Special Action Credit Section 2.01. The Administrator agrees to lend to the Bor- rower on the terms and conditions in the Special Action Credit Agreement set forth or referred to, the following currency amounts: One million one hundred fifty-five thousand Belgian francs (BF1,155,000); One hundred forty-four thousand Danish kroner (DK144,000); Five hundred fifty-five thousand Deutsche marks (DM555,000); Five hundred eighty-seven thousand French francs (FF587,000); One thousand three hundred Irish pounds (Irgl,300); Sixty-eight million one hundred twenty thousand Italian lire (ItL68,120,000); Thirty-six thousand Luxembourg francs (LF36,000); One hundred fifty-three Netherlands thousand guilders (Dfl 153,000); and One hundred forty-one thousand six hundred Pounds sterling (E141,600). Section 2.02. (a) The proceeds of the Special Action Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Administrator, for expenditures made (or, if the Administrator shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Special Action Credit. (b) Withdrawals shall be made only on account of expendi- tures: (i) in the currency of the Borrower; or (ii) for goods produced in, or services supplied from; (A) any of the Member States; and (B) any developing country which is a member of the International Development Association and could be the recipient of a special action credit, as determined by the Administrator. (c) Withdrawals from the Credit Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Special Action Credit have been paid or are payable or, at the option of the Administrator, in such currency or currencies as the Administrator shall from time to time select. Section 2.03. Except as the Administrator shall otherwise agree, procurement of the goods and civil works to be financed out of the proceeds of the Special Action Credit shall be governed by the provisions of Schedule 3 to this Agreement. Section 2.04. The Closing Date shall be December 31, 1981, or such later date as the Administrator shall establish. The Adminis- trator shall promptly notify the Borrower of such later date. Section 2.05. (a) The Borrower shall pay to the Administrator a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum, on each of the various currency amounts with- drawn from the Credit Account and outstanding from time to time. The amounts of service charge in various currencies so found, and additional service charges (if any) payable pursuant to Section 3.02 of the General Conditions, shall be payable in the currency of the United Kingdom of Great Britain and Northern Ireland, or in another currency selected by the Administrator in accordance with the provisions of paragraph (b) of this Section, after their conversion into such currency on the basis of exchange rates determined in accordance with the provisions of Section 4.05 of the General Conditions. -5- (b) If the Administrator shall at any time determine that the currency Po specified or selected is not freely convertible or freely exchangeable by the International Development Association for currencies of other members of the International Development Association for the purposes of its operations, service charges shall be payable in such other currency as the Administrator may select for such purposes and shall notify in writing to the Borrower, whereupon, commencing thirty days after the date of such notice, service charges shall be payable in such other currency. Section 2.06. Service charges shall be payable semiannually on May 1 and November 1 in each year. Section 2.07. (a) The Borrower shall repay the principal amount of the Special Action Credit in semiannual installments payable on each May 1 and November 1 commencing May 1, 1990 and ending November 1, 2029, each installment to and including the installment payable on November 1, 1999, 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. (b) Each of the installments payable pursuant to paragraph (a) of this Section shall be the aggregate of such amounts in the various currencies withdrawn from the Credit Account as shall be found by multiplying the total amount in each currency so with- drawn by the applicable installment percentage as specified in paragraph (a) of this Section, unless the Administrator shall otherwise specify by notice to the Borrower prior to each payment date for the purpose of avoiding the payment of fractional cur- rency amounts. (c) If withdrawal shall have been made in a currency which the Administrator shall have purchased with one or more other currencies for the purpose of such withdrawal, the portion of the Special Action Credit so withdrawn shall, for the purpose of paragraph (b) of this Section, be deemed to have been withdrawn in the currency or currencies used by the Administrator for such purchase in the amounts of such currency or currencies so used. (d) The Administrator will, at the request of the Borrower and on such terms and conditions as the Administrator shall determine, use its best efforts to purchase any currency needed by the Borrower for payment of principal required under this Agree- ment upon payment by the Borrower of sufficient funds therefor in -6- a currency or currencies to be specified by the Administrator from time to time. In purchasing the currencies required the Adminis- trator shall be acting as agent of the Borrower and the Borrower shall be deemed to have made any payment required under this Agreement only when and to the extent that the Administrator has received such payment in the currency or currencies required. 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 appro- priate administrative, financial, educational and architectural practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the purpose. Section 3.02. (a) The Borrower shall, during the implementa- tion of the Project, continue to maintain the Project Unit refer- red to in Section 4.02 (a) of the Prior Credit Agreement and Schedule 4 to this Agreement. (b) The Borrower shall continue to employ for the Project Unit the Project Architect and accountant whose qualifications, experience and terms and conditions of employment shall be satis- factory to the Administrator. (c) The Borrower shall assign responsibility to a qualified and experienced official in each of the appropriate ministries, departments or agencies of the Borrower to assist the Project Director in the effective implementation of the Project. Section 3.03. In order to assist the Borrower in carrying out Part D of the Project, the Borrower shall employ specialists whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Administrator, and the Borrower shall promptly assign to such specialists counterparts acceptable to the Administrator. Section 3.04. In order to assist the Borrower in the prepara- tion of plans and specifications for, and in the supervision of the construction of, the Project, the Borrower shall employ architectural consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Administrator* -7- Section 3.05. The Borrower shall, promptly upon their finali- zation, furnish to the Administrator for its approval: (i) the contracts with specialists under Part D (ii) of the Project; and (ii) the work programs of such specialists under such contracts. Section 3.06. The Borrower shall require persons trained under the fellowships included in Part D (i) of the Project to serve for at least two years in the positions for which such persons shall have been trained. Section 3.07. The Borrower shall, prior to the commencement of work by the specialists included in Part D (i) of the Project for Part A (iv) of the Project, finalize and furnish to the Administrator for its review the guidelines, to be drawn up by the Borrower's inter-ministerial self-help committee established on April 22, 1975, for the allocation and administration of funds to be expended on self-help programs. Section 3.08. The Borrower shall review with the Adminis- trator the findings and recommendations of the planning section of the Borrower's Ministry of Education, the university development plan referred to in Part D (iii) of the Project, and the pilot studies referred to in Part D (ii) of the Project, in order to reach agreement on the Investment Projects to be prepared for consideration under a possible future Project. Section 3.09. The Borrower shall exchange with the Adminis- trator views on the housing policy of its Ministry of Education. Section 3.10. (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 Special Action 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 Administrator shall otherwise agree, the Borrower shall cause all goods and services financed out of the proceeds of the Special Action Credit to be used exclusively for the Project. Section 3.11. (a) The Borrower shall furnish to the Adminis- trator for its approval the plans and specifications for the educational institutions included in Part A of the Project, and promptly upon their preparatioa, the reports, contract documents and construction, work and procurement schedules for the Project, and any material modifications thereof or additions thereto, in such detail as the Administrator shall reasonably request. (b) The Borrower: (i) shall maintain records and procedures adequate to record and monitor the progress of the Project (including its cost and, where appropriate, the benefits to be derived from it), to identify the goods and services financed out of the proceeds of the Special Action Credit, and to disclose their use in the Project; (ii) shall enable the Administrator's accredited representatives to visit the facilities and construc- tion sites included in the Project and to examine the goods financed out of the proceeds of the Special Action Credit and any relevant records and documents; and (iii) shall furnish to the Administrator at regular intervals all such information as the Administrator shall reasonably request concerning the Project, its cost and, where a'ppropriate, the benefits to be derived from it, the expenditure of the proceeds of the Special Action Credit and the goods and services financed out of such proceeds. (c) Promptly after completion of the Project, but in any event not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Administrator, the Borrower shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator shall reasonably request, on the execution and initial operation of the Project, its cost and the benefits derived and to be deri-ed from it, the performance by the Borrower and the Administrator of their respective obligations under the Special Action Credit Agreement and the accomplishment of the purposes of the Special Action Credit. Section 3.12. The Borrower shall take or cause to be taken all such action as shall be necessary to acquire, prior to the commencement of construction, all such land and rights in respect of land as shall be required for the construction of the faci- lities included in the Project and shall furnish to the Adminis- trator, promaptly after such acquisition, evidence satisfactory to the Administrator that such land and rights in respect of land are available for purposes related to the Project. -9- ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the departments or agencies of the Borrower responsible for carrying out the Project or any part thereof. Section 4.02. (a) The Borrower shall operate, or cause to be operated, the educational institutions and facilities included in the Project in accordance with s.und administrative and educa- tional policies and practices and with due regard to economy. (b) The Borrower shall at all times employ, or cause to be employed, qualified administrators and teachers in adequate numbers to staff the educational institutions and facilities included in the Project. Section 4.03. The Borrower shall adequately maintain, or cause to be maintained, the buildings, furniture and equipment of the educational institutions and facilities included in the Project and make, or cause to be made, all necessary repairs and renewals thereof in accordance with sound technical and adminis- trative practices. Section 4.04. The Borrower shall regularly update its projec- tions for expected enrollment of students in its secondary schools and corresponding requirements of secondary school teachers by discipline and accordingly adjust the planned enrollment in training programs for such teachers at its University of Sierra Leone. Section 4.05. The Borrower shall ensure that the planning section of the Borrower's Ministry of Education establishes a tracer system acceptable to the Administrator, to enable such section to follow up students who leave or graduate from secondary and trade schools included in the Project and in the Project described in the Prior Credit Agreement in such a way as to enable evaluation of the programs of such students. Section 4.06. The Borrower shall, for the trade schools included in the Project: (i) ensure that the operation of the - 10 - production units of such schools, including management, accounting and provision of materials, shall be independent of the adminis- tration of such schools; and (ii) promptly furnish to the Adminis- trator for its review (A) the curricula and work programs of such units, (B) the semiannual accounts of the operations of such units in sufficient detail to enable the evaluation of the commer- cial viability of such units, and (C) regular reports produced by the team currently assisting vocational training and sponsored by the United Nations Development Program and the International Labor Organization. ARTICLE V Remedies of the Administrator Section 5.01. (a) For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (h) thereof, namely, that subject to para- graph (b) of this Section: (i) the right of the Borrower to withdraw the proceeds of the IDA Credit shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the agreement providing therefor; or (ii) the IDA Credit shall have become due and payable prior to the agreed maturity thereof. (b) Paragraph (a) of this Section shall not apply if: (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under the IDA Credit Agreement; and (ii) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. Section 5.02. For the purposes of Section 7.01 of the General Conditions, the following additional event is specified pursuant to paragraph (d) thereof namely, that the event specified in paragraph (a) (ii) of Section 5.01 of this Agreement shall occur. - 11 - ARTICLE VI Effective Date; Termination Section 6.01. The date AtJ '28, I@0 is hereby specified for the purposes of SectioA 12.04 of the General Condi- tions, Section 6.02. The obligations of the Borrower under Article IV of this Agreement shall cease and determine on the date on which the Special Action Credit Agreement shall terminate or on a date fifteen years after the date of this Agreement, whichever shall be the earlier. ARTICLE VII Representative of the Borrower; Addresses Section 7.01. The Minister of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: The Financial Secretary The Ministry of Finance Freetown Sierra Leone Cable address: MINFIN Freetown For the Administrator: Administrator of the Special Action Account (International Development Association) 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) - 12 - IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. SIERRA LEONE By ISf JW1a;r,(4'L O-la- TuAal~ Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION as ADMINISTRATOR of the SPECIAL ACTION ACCOUNT established with funds contributed by the MEMBER STATES of the EUROPEAN ECONOMIC COMMUNITY By /5/ULfDI ~7wLv ,00' Regional Vice President Western Africa - 13 - SCHEDULE 1 Withdrawals of the Proceeds of the Special Action Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Special Action Credit, the allocation of the amounts of the Special Action Credit to each Category and the percentage for items so to be financed in each Category: Amount of the Special Action Credit % of Allocated (Expressed Expenditures Category in Dollar Equivalents) to be Financed (1) Civil Works 700,000 90% (2) Professional 50,000 90% Services for Category 1 (3) Technical 50,000 100% of foreign assistance and expenditures or fellowships 90% of local expenditures (4) Project adminis- 50,000 90% tration (staff salaries, inter- national travel, office rental and purchase of 5 vehicles) (5) Unallocated 150,000 TOTAL 1,000,0000 2. The total dollar amount shown in the foregoing table shall be adjusted from time to time as required to reflect the aggregate dollar equivalent of the unwithdrawn currency amounts in the - 14- Credit Account; the unallocated dollar amount shall be adjusted accordingly. 3. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of, and for goods produced in or services supplied from: (i) any of the Member States; and (ii) any developing country, other than the Borrower, which is a member of the Inter- national Development Association and could be the recipient of a Special Action Credit, as determined by the Administrator; and (b) the term "local expenditures" mea.s expenditures in the currency of the Borrower and for goods or services supplied from the territory of the Borrower. 4. The disbursement percentages have been calculated in com- pliance with the policy of the Administrator that no proceeds of the Special Action Credit shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procure- ment or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Special Action Credit decreases or increases, the Administrator may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Administrator. 5. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for expen- ditures prior to the date of this Agreement. 6. Notwithstanding the allocation of an amount of the Special Action Credit or the disbursement percentages set forth in the table in paragraph 1 above, if the Administrator has reasonably estimated that the amount of the Special Action Credit then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Administrator may, by notice to the Borrower: (i) reallocate to such Category, to the extent required to meet the estimated shortfall, proceeds of the Special Action Credit which are then allocated to another Category and which in the opinion of the Administrator are not needed to meet other expenditures; and (ii) if such reallocation cannot fully meet the estimated short- fall, reduce the disbursement percentage then applicable to such - 15 - expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. 7. If the Administrator shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Special Action Credit Agreement, no expenditures for such item shall be financed out of the proceeds of the Special Action Credit and the Admin- istrator may, without in any way restricting or limiting any other right, power or remedy of the Administrator under the Special Action Credit Agreement, by notice to the Borrower, cancel such currency amounts of the Special Action Credit as, in the Adminis- trator's reasonable opinion, represent the currency amounts which would otherwise have been eligible for withdrawal out of the proceeds of the Special Action Credit in respect of such expendi- tures. - 16 - SCHEDULE 2 Description of the Project The Project consists of: Part A. Construction of facilities and provision of furniture, equipment and materials for: (i) 9 existing secondary schools; (ii) a technical teacher training program at the secondary teacher college; (iii) improvement of three schools included in the Project described in the Prior Credit Agreement; (iv) the National Training Center of the Borrower's Ministry of Social Welfare; (v) the planning section of the Borrower's Ministry of Education; (vi) the headquarters of the Borrower's Institute of Educa- tion at Freetown and the instructional resource centers of such institute at the Borrower's five primary teacher colleges; and (vii) an Institute of Public Administration and Management. Part B. Complementary works at 6 schools included in the Project described in the Prior Credit Agreement. Part C. Provision of furniture, equipment and materials for 7 exist- ing secondary schools. Part D. 1. Provision of 31 man-years of specialist services and 18-1/2 man-years of fellowships for the institutions referred to in Part A (ii) and (iv) through (vii) above. - 17 - 2. Establishment of a pilot studies fund to improve elementary education. 3. Provision of 3 man-years of specialist services to assist in establishing a unversity development plan. Part E. Staffing and equipment for, and operating of, the Project Unit. The specific educational institutions to be included in the Project, their locations, their planned enrollment levels and the approximate area to be constructed for each, shall be as specified in Annex A of this Schedule, and the details of the specialist services and fellowships to be provided shall be as specified in Annex B of this Schedule, as such Annexes may be amended by agreement between the Borrower and the Association. The Project is expected to be completed by June 30, 1981. - 18 - ANNEX A TO SCHEDULE 2 Educational Institutions Enrollments, Boarding Places, Staff Houses and Total Gross Areas of New Construction Total Gross Areas of New Enroll-* Boarding Staff Construction ments** Places** Houses** (sq. ft.)** Part A of the Project Rokel Secondary Schools *** +55 20,051 Schlenker Secondary School +40 4,380 Madina Secondary School 335 3 10,235 Sewafe Secondary School +180 2 8,820 Yonnibana Secondary School +140 5,070 Howard Memorial Secondary School +200 3 10,120 Bumpe Secondary School 2 2,600 Jimmi Secondary School 3 3,900 Taiama Secondary School 3 3,900 Technical Teacher Training +120 +120 4 28,050 Kissy Trade School 3,350 Magburaka Trade School +100 +100 2 14,175 Kenema Technical Institute 1,270 Ministry of Social Welfare National Training Center*** +10 +10 3 10,390 * The symbol (+) means additional. ** Figures are approximate. * Replacement of existing buildings. - 19 - Total Gross Areas of New Enroll-* Boarding Staff Construction ments** Places** Houses** (sq. ft.)** Part A of the Project Ministry of Eduation Plan- ning Unit 2,870 Institute of Education 12,900 Instructional Resources "enterl Freetown 4,296 Instructional Resource Center, Makeni 4,296 Instructional Resource Center, Port Loko 4,296 Instructional Resource Center, Bo 4,296 Instructional Resource Center, Bunumbu +130 8,086 Institute of Public Adminis- tration and Management 9,360 Part B of the Project Bumpe Secondary School Taiama Secondary School Methodist Girls Secondary School Prince of Wales Secondary School * The symbol (+) means additional. ** Figures are approximate. * Replacement of existing buildings. - 20 - Total Gross Areas of New Enroll-* Boarding Staff Construction ments** Places** Houses** (sq. ft.)** Part B of the Project Jimmi Secondary School Annie Walsh Secondary School Par' C of the Project Kolenten Secondary School Wesley Secondary School Government Muni- cipal Secondary School Albert Academy Kamabai Secondary School Moyamba Secondary School Kailahuan Secon- dary School TOTAL 1,310 230 25 176,711 * The symbol (+) means additional. ** Figures are approximate. * Replacement of existing buildings. - 21 - ANNEX B TO SCHEDULE 2 Specialist Services and Fellowships Approximate Man-years A. Specialist Services 1. Ministry of Social Welfare National Training Center 7-1/2 2. Institute of Education 11-1/2 3. Institute of Public Adminis- tration and Management 12 4. University Development Planning 3 TOTAL 34 B. Fellowships 1. Technical Teacher Training 10 2. Ministry of Social Welfare National Training Center 2 3. Ministry of Education Planning Unit 4 4. Institute of Education 5. Institute of Public Adminis- tration and Management -1/2 TOTAL 18-1/2 - 22 - SCHEDULE 3 Procurement A. International Competitive Bidding 1. Subject to the eligibility restrictions set forth in Section 2.02 (b) of this Agreement and except as provided in Part D hereof, goods and civil works shall be procured under contracts awarded in accordance with procedures consistent with those set forth in the "Guidelines for Procurement under World Bank Loans and IDA Credits" published by the Bank in March 1977 (hereinafter called the Guidelines), on the basis of international competitive bidding as described in Part A of the Guidelines. 2. For goods and works to be procured on the basis of inter- national competitive bidding, in addition to the requirements of paragraph 1.2 of the Guidelines, the Borrower shall prepare and forward to the Administrator as soon as possible, and in any event not later than 60 days prior to the date of availability to the public of the first tender or prequalification documents relating thereto, as the case may be, a general procurement notice, in such form and detail and containing such information as the Adminis- trator shall reasonably request; the Administrator will arrange for the publication of such notice in order to provide timely notification to prospective bidders of the opportunity to bid for the goods and works in question. The Borrower shall provide the necessary information to update such notice annually so long as any goods or works remain to be procured on the basis of interna- tional competitive bidding. 3. (i) Bidders for civil works contracts estimated to cost the equivalent of $100,000 or more shall be prequalified as described in Part 2.2 of the Guidelines; and (ii) to the extent practicable, contracts for materials, equipment and furniture shall be grouped in lots of at least $40,000 each. 4. For the purpose of evaluation and comparison of bids for the supply of goods to be procured on the basis of international competitive bidding: (i) bidders shall be required to state in their bid the c.i.f. (port of entry) price for the imported goods, or the ex-factory price or off-the-shelf price of other goods, offered in such bid; and (ii) customs duties and other import taxes levied in connection with the importation, or the sales and similar taxes levied in connection with the sale or - 23 - delivery, pursuant to the bid, of the goods shall not be taken into account in the evaluation of the bids. B. Preference for Domestic Manufacturers In the procurement of goods in accordance with the procedures described in Part A of this Schedule, goods manufactured in Sierra Leone may be granted a margin of preference in accordance with, and subject to, the following provisions: 1. All bidding documents for the procurement of goods shall clearly indicate any preference which will be granted, the information required to establish the eligibility of a bid for such preference and the following methods and stages'that will be followed in the evaluation and comparison of bids. 2. After evaluation, responsive bids will be classified in one of the following three groups: (1) Group A: bids offering goods manufactured in Sierra Leone if the bidder shall have established to the satisfaction of the Borrower and the Administrator that the manufacturing cost of such goods includes a value added in Sierra Leone equal to at least 20% of the ex-factory bid price of such goods. (2) Group B: all other domestic bids. (3) Group C: bids offering any other goods. 3. In order to determine the lowest evaluated bid of each group, all evaluated bids in each group shall first be compared among themselves, without taking into account customs duties and other import taxes levied in connection with the importation, and sales and similar taxes levied in connection with the sale or delivery, pursuant to the bids, of the goods. Such lowest eval- uated bids shall then be compared with each other, and if, as a result of this comparison, a bid from group A or group B is the lowest, it shall be selected for the award. 4. If, as a result of the comparison under paragraph 3 above, the lowest bid is a bid trom group C, all group C bids shall be further compared with the lowest evaluated bid from group A after adding to the evaluated bid price of the imported - 24 - goods offered in each group C bid, for the purpose of this further comparison only, an amount equal to: (i) the am-;-nt of customs duties and other import taxes which a non-exempt importer would have to pay for the importation of the goods offered in such group C bid; or (ii) 15% of the c.i.f. bid price of such goods if said customs duties and taxes exceed 15% of such price. If the group A bid in such further comparison is the lowest, it shall be selected for the award; if not, the bid from group C which as a result of the comparison under paragraph 3 is the lowest evaluated bid shall be selected. C. Preference for Domestic Contractors With respect to the evaluation of bids for any contract for civil works included under Category 1 of the table set forth in Schedule 1 to this Agreement and to be procured in accordance with the procedures Lescribed in Part A of this Schedule, the Borrower may grant a margin of preference of 7-1/2% to domestic con- tractors, in accordance with, and subject to, the following provisions: 1. Contractors shall be required to prequalify as provided in Part A of this Schedule and applicants for qualification applying for such preference shall be asked to provide, as part of the data for qualification, such information, including details of ownership, as shall be required to determine whether, according to the classification established by the Borrower and accepted by the Administrator, a particular firm or group of firms qualifies for a domestic preference. The bidding documents shall clearly indicate the preference and the method that will be followed in the evaluation and comparison of bids to give effect to such preference. 2. After bids have been received and reviewed by the Borrower, responsive bids will be classified into the following groups: (i) bids offered by domestic contractors eligible for preference; and (ii) bids offered by other contractors. For the purpose of evaluation and comparison of bids an amount equal to 7-1/2% of the bid amount shall be added to bids received under group (ii) above. - 25 - D. Other Procurement Procedures 1. The complementary civil works for the schools included in the Project described in the Prior Credit Agreement shall be carried out as extensions to contracts awarded on the basis of internatio- nal competitive bidding pursuant to the Prior Credit Agreement. 2. Small items of furniture, equipment and materials, including self-help building materials, not exceeding in the aggregate the equivalent of $230,000, which cannot satisfactorily be grouped into lots of at least $15,000 each shall be procured according to the regular procedures of the Borrower, provided at least three quotations shall have been solicited from suppliers. E. Review of Procurement Decisions by the Administrator 1. Review of prequalification. The Borrower shall, before qualification is invited, inform the Administrator in detail of the procedure to be followed, and shall introduce such modi- fications in said procedure as the Administrator shall reasonably request. The list of prequalified bidders, together with a state- ment of their qualifications and, where applicable, of their eligibility for domestic preference under Part C above and of the reasons for the exclusion of any applicant for prequalifi- cation and for such eligibility shall be furnished by the Borrower to the Administrator for its comments before the applicants are notified of the Borrower's decision, and the Borrower shall make such additions to, deletions from, or modifications in, the said list as the Administrator shall reasonably request. 2. Review of lists of civil works contracts and items of mate- rials, furniture and equipment. Before bids are invited, the Borrower shall furnish to the Administrator, for its approval: (i) a list of contracts for civil works indicating the estimated value of each contract and the forecast timetable for bids and awards of such contracts; (ii) a list of all items of materials, furni- ture and equipment, indicating their specifications and estimated unit and total prices, indexed, coded and numbered Lo identify the institutions and spaces for which they are required. 3. Review of invitation to bid and of proposed awards and final contracts. With respect to all contracts for: (i) civil works estimated to cost the equivalent of $100,000 or more; and (ii) materials, -26- furniture and equipment estimated to cost the equivalent of $15,000 or more: (a) Before bids are invited, the Borrower shall furnish to the Administrator for its comments, the text of the invitations to bid and the specifications and other bidding documents, together with a description of the advertising procedures to be followed for the bidding, and shall make such modifications in the said documents or procedures as the Administrator shall reasonably request. Any further modification to the bidding documents shall require the Administrator's concurrence before it is issued to the prospective bidders. (b) Procurement of materials, furniture and equipment shall be limited to the items specified in the lists mentioned in paragraph E.2 above and identified in contract documents by such indexes, codes and numbers as appear in such list. (c) Promptly after the bids have been received, the Borrower shall inform tbe Administrator of the names of the bidders and the respective amounts of the bids. (d) After bids have been received and evaluated, the Bor- rower shall, before a final decision on the award is made, inform the Administrator of the name of the bidder to which it intends to award the contract and shall furnish to the Administrator, in sufficient time for its review, a detailed report on the evalua- tion and comparison of the bids received, and such other informa- tion as the Administrator shall reasonably request. The Administrator shall, if it determines that the intended award would be inconsistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. (e) The terms and conditions of the contract shall not, without the Administrator's concurrence, materially differ from those on which bids were asked or prequalification invited. (f) Two conformed copies of the contract shall be furnished to the Administrator promptly after its execution and prior to the submission to the Administrator of the first application for withdrawal of funds from the Credit Account in respect of such contract. 4. With respect to each contract not governed by the preceding paragraph, the Borrower shall furnish to the Administrator, - 27 - promptly after its execution and prior to the submission to the Administrator of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids, recommendations for award and such other informa- tion as the Administrator shall reasonably request. The Adminis- trator shall, if it determines that the award of the contract was not consistent with the Guidelines or this Schedule, promptly inform the Borrower and state the reasons for such determination. -28- SCHEDULE 4 Project Administration and Responsibilities; the Project Unit In addition to its responsibilities included in Schedule 4 to the Prior Credit Agreement, the Project Unit shall be responsible, inter alia, for the following: (a) coordination of all Project activities with the offi- cials referred to in Section 3.02 (c) of this Agreement, including meeting regularly to ensure effective coordination of all tech- nical aspects of the Project; (b) initiating procedures for the recruitment of all specia- lists according to the terms of reference established by appro- priate ministries, departments or agencies and forwarding to the Administrator such terms of reference and curricula vitae relative to their employment; and (c) preparing, signing and administering up to a total of two man-years of specialists' short-term contracts and, in coor- dination with the respective ministries, departments or agencies, preparing and administering any other specialists' contracts. INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Development Association. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Association thereunto the < 9 L day of 198 ) FOR SECRETARY